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According To JPM There Is Now A "Better-Than-Even Chance" Of Fed Action On September 21

Tyler Durden's picture


For now it was just Jan Hatzius calling for QE3 now if not sooner. With the addition of JPM to the list of banks now implicitly expecting (read demanding) QE3, it is now quite clear how Wall Street feels - after all someone has to pay those Wall Street bonuses - it sure won't come from M&A activity, underwriting of Chinese IPO frauds, or trading volume. Here is the key sentence from a just released note by JPM's Michael Feroli: "We believe the minutes lend themselves to our view that there is a somewhat better-than-even chance the Fed takes action at the next meeting to increase the average maturity of assets on their balance sheet." Keep an eye on the market tomorrow for confirmation: a third day of the same low volume meltup we have seen this week should make the open QE3 question into case closed.

From JPM:

Sometimes the squeaky wheel doesn't get the oil

The hawks on the FOMC may generate a fair amount of media attention, but today's minutes to the August 9th meeting remind us that there is a less vocal dovish faction that favors even more aggressive policy easing, and their view has been winning out over time. This contingent of "a few" favored a "more substantial move" at the recent FOMC meeting, "but they were willing to accept" the mid-2013 rate guidance "as a step in the direction of additional accommodation." While the change to forward guidance was one such step, other steps discussed included the usual three: further enhancements to forward guidance, further asset purchases, and lowering the interest on excess reserve rate. Inflation targeting, price level targeting, and other more extreme measures were not discussed. We believe the minutes lend themselves to our view that there is a somewhat better-than-even chance the Fed takes action at the next meeting to increase the average maturity of assets on their balance sheet.
Regarding enhanced communications, there was a relatively lengthy discussion of conditioning the fed funds rate guidance on explicit numerical values for the unemployment rate or the inflation rate. A similar policy was undertaken by the BoJ several years back, when they conditioned the continuance of zero interest rate policy (ZIRP) on inflation remaining negative. While some on the FOMC argued in favor of this strategy, the only downside that was mentioned in the minutes was "questions about how an appropriate numerical value might be chosen." Given the Committee added a day to the next meeting to discuss easing options, some further communications enhancement at the next meeting cannot be ruled out.
On balance sheet policy, "some participants noted that additional asset purchases could be used to provide more accommodation." The minutes then went on to note that "others" favored an Operation Twist, perhaps of the active version, to extend the maturity of the Fed's assets holdings by actively selling short maturity assets from the Fed's balance sheet and buying more longer maturity assets. It was noted that this "would have a similar effect" on long term rates as more outright purchases, but would "not boost the size of the Federal Reserve's balance sheet and the quantity of reserve balances." It was not explicitly spelled out why either of these latter two variables should matter, but reading between the lines it could be the case that concern about the adverse political and public reaction to an increase in the monetary base may be leaving Fed policymakers hesitant to undertake another large expansion of the balance sheet. The discussion on lowering IOER was very terse, as "a few participants noted" that it could be "helpful in easing financial conditions."
Stepping away from the discussion of policy options, the Committee's discussion of current conditions and the economic outlook was an exercise in dreariness. The economy's performance so far "was considerably slower than they had expected," uncertainty has "risen appreciably," and "most participants saw increased downside risks to the outlook for economic growth."


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Tue, 08/30/2011 - 16:43 | 1616477 TruthInSunshine
TruthInSunshine's picture

<--  QE to infinity & beyond ('American Spring[Fall]' Cometh)

<--  QE3= Off With 'Let Them Eat iPad2' Heads (GS&JPM positioned accordingly)


Letter from Wall Street to The Bernank & William Dudley (hand delivered, sealed with a perfumed kiss):

Dear Ben, Please Print us More Money

Tue, 08/30/2011 - 17:01 | 1616587 whstlblwr
whstlblwr's picture

This kind of crap lets Ron Paul win. This is good example of wall street calling for money printing at expense of citizens. Higher food costs, gas costs up, they don't care as long as they see bonus for new car.

Today just mere mention of monetary easing, QE3, by Fed Evans pushed up gas and food costs. I use these examples on social media for people too busy to pay attention.

Tue, 08/30/2011 - 17:07 | 1616599 TruthInSunshine
TruthInSunshine's picture

When the markets depend, nearly exclusively, on more BernankBux, one needs NO MORE confirmation that the economic structure is one gigantic Ponzi & CONfidence game (just as Madoff, Kotlikoff & James Grant have said) and is about to fall hard.

The opaque Federal Reserve wants to project The Bernank as some sort of wizard behind the curtain, when he's a bearded, trembling, nervous, quivering lip nerd, who has no idea how real economic activity is promulgated, and he would have been better suited as a research assistant somewhere.

Good luck, bitchez. Prepare accordingly.

Tue, 08/30/2011 - 17:08 | 1616609 whstlblwr
whstlblwr's picture

Well, yell it far and wide. People need to make connection that QE3 is printing money, lead to hyperinflation. Higher stock market means more expensive living. Wall Street and Federal Reserve are printing money at expense of all people in the world.

Tue, 08/30/2011 - 17:45 | 1616707 WonderDawg
WonderDawg's picture

Is it just me or is anyone else so fucking tired of hearing about QE3 is on or QE3 is off; it's in the bag; there's no fucking way; it's a done deal; it's politically impossible.

First we had to wait weeks with everyone speculating this or that would happen at Jackson Hole, then a big nothing, and the market rallied because Bernanke farted.

Fuck me to tears, what a world we live in. 

Tue, 08/30/2011 - 18:40 | 1616854 slaughterer
slaughterer's picture

WonderDawg, I had a girlfriend in the NYC of the 1980s, the heiress to a multi-billion dollar designer clothing fortune, whose favorite slang expression was "fuck me dead."  So maybe in her world, your last sentence should read, more hyperbolically: "Fuck me dead, what a world we live in."  

Tue, 08/30/2011 - 19:17 | 1616985 WonderDawg
WonderDawg's picture

You should have married her.

Tue, 08/30/2011 - 19:26 | 1617007 slaughterer
slaughterer's picture

Got someone better.

Tue, 08/30/2011 - 18:42 | 1616863 snakeboat
snakeboat's picture

Cmon Dawg

It's in the bag


There's no fscking way


in the end

It's in the bag

Tue, 08/30/2011 - 19:20 | 1616994 WonderDawg
WonderDawg's picture

And in the meantime, we speculate, debate, and wait. I've got dry powder burning a hole in my pocket, and I can't make a move for fuck's sake, because sure as shit I'll guess wrong.

Tue, 08/30/2011 - 21:23 | 1617362 DavidC
DavidC's picture

If you had a gun with one bullet left in it would you fire it just to hear the noise it makes?

Bernanke will NOT do an overt QR3 unless he has NO other choice. That will never happen unless the Dow is below 10,000 or the S&P below 1,000.


Tue, 08/30/2011 - 21:47 | 1617455 WonderDawg
WonderDawg's picture

So, you don't think the Dow is going back to 10,000 or the S&P below 1,000? I think we'll see those levels before the end of September. In fact, I think Dow below 10,000 is a given. But my frustration is in the short term. Medium term (1-2 years) I'm set for the bear market and I don't think they can print their way out of it. I'm just sick and tired of every movement in the market being analyzed as a reaction to QE speculation.

Tue, 08/30/2011 - 18:44 | 1616870 slaughterer
slaughterer's picture

TruthinSunshine:  the letter you link to "Dear Ben, Please Print us More Money" is written in the style of a child"s letter to Santa Claus.   If that is what Wall Street has come to, then the whole industry should be ended at this point.  

Tue, 08/30/2011 - 22:47 | 1617665 TruthInSunshine
TruthInSunshine's picture

That letter was penned by Richter, and is meant to spell out the real reasons and the real knock on effects for and from additional Quantitative Laxative Easing by the incompetent (Evans) and/or corrupt (Dudley & Sack) members of the criminal organization (also, arguably violative of the Constitution) that is the Federal Reserve Racketeering Outfit.

And yes, Wall Street should be dissassembled, so that this country can be free of its parasitism, which is bleeding the real productive capacity of this nation absolutely dry, and destroying what's now left of our foundation and capacity to rebuild our economy.

...Chucky Schumer, Manhattan and the Deeply Captured regulators and bagmen on K Street be damned.

Tue, 08/30/2011 - 16:39 | 1616485 lolmao500
lolmao500's picture

Do they really care if 2 people say no? They can just do it... what the hell are the 2 others gonna do? Cry about it?

Tue, 08/30/2011 - 16:39 | 1616487 Cdad
Cdad's picture

$5 trillion in fiscal and monetary stimulus...and these criminals are begging for more.

I have a better idea.  How about everyone of their banks simply go under, as should have happened in 2008?  I think it would be cheaper, and also has the side benefit of delivering justice to our profoundly criminal class of bankers.

Just a thought.

Tue, 08/30/2011 - 16:58 | 1616575 eatthebanksters
eatthebanksters's picture

It would be nice if the tail stopped wagging the dog wouldn't it?  We need to change the laws which, according to Eric Holder's Justice Dept\artment, don't allow us to prosecute and convict these criminals. (Maybe congress could pass a law akin to NY's Martin Act?)  We need to pass rules regarding records keeping and access to info so tha trained watchdogs could keep something like this from happening again (get it Barney?)  We need to vote out the current royalty on congress and replace them with folks who wish to do good by the people and for the people.  Society is on its way down a black hole...

Tue, 08/30/2011 - 23:14 | 1617770 Pegasus Muse
Pegasus Muse's picture

Can we just dispense with all the technical weasely legal mumbo jumbo?  Line the fuckers up and impale their asses .... in a nice neat row .... right down Wall Street.  Then go to DC and do the same.

Tue, 08/30/2011 - 20:20 | 1617163 boiltherich
boiltherich's picture

Well, it explains why hamburger just went to $5.59 per pound at Safeway today.  I quit buying it when it went from $3.29 to $3.49 last Christmas, but I wonder what people who have kids are going to do, of course they have SNAP but still. 

Tue, 08/30/2011 - 21:25 | 1617368 Bring the Gold
Bring the Gold's picture

I wonder, do people on this site have any idea how pathetically small the SNAP allotment is each month? It's tiny. It wouldn't constitute a single line of coke off a bankster hooker's ass and I'm talking a family of 4 with no income. If you want an exact figure a Family of 4 with no income gets $668 a month to live on.

If said family has been out of work since 2006 they are coming off the welfare rolls (5 year limit now). Lots of folks UC is running out. Once they are down to SNAP and SNAP alone they are looking at homelessness unless they have Section 8 housing (incredibly hard to get, and usually a legacy from the 1990's if not long before).

People on this forum wondering when the shit will hit the fan have no idea that for 60 million+ Americans it hit the fan years ago.

Tue, 08/30/2011 - 23:02 | 1617733 boiltherich
boiltherich's picture

Your telling me?  I get 932 per month SSD.  That was what my Mom had to live on in her old age just before she died, I am convinced she died of malnutrition. 

Tue, 08/30/2011 - 16:40 | 1616492 gjp
gjp's picture

disgusting, everyone involved with this politburo, money-destroying, self-aggrandizing hackery.  how can justice be done remotely in proportion to these crimes?

Tue, 08/30/2011 - 17:38 | 1616684 Strider52
Strider52's picture

TCTP - Too Corrupt To Prosecute

Tue, 08/30/2011 - 16:40 | 1616493 alien-IQ
alien-IQ's picture

this cannot happen. it just...can't.

Tue, 08/30/2011 - 16:52 | 1616550 Long-John-Silver
Long-John-Silver's picture

Everything is possible in the FED Zone.

Tue, 08/30/2011 - 16:41 | 1616497 IMA5U
IMA5U's picture

The Fed will not employ an all out QE3.  They will leave themselves some outs so the spectre still looms to scare the shorts and make people think it is a hazard not to be long.

After all, if the market rolls over their boy Obama won't get reelected.  Which means they will all be out of jobs.  It's all about jobs!

Tue, 08/30/2011 - 16:44 | 1616510 alien-IQ
alien-IQ's picture

it doesn't matter who is in office. the banks own them all. Look back at our history and tell me, how many presidents have we had that were not bagmen for the banksters?

Ron Paul is the only candidate that may not be...and we've seen what the media is trying to do to his campaign.

it's time for heads to start rolling...and I don't mean metaphorically.

Tue, 08/30/2011 - 17:02 | 1616595 Cdad
Cdad's picture

And the Ron Paul story, his candidacy, has reached Average Joe.  Despite the MSM's attempts to marginalize him, his popularity is rising.  This is creating more political risk for the Fed than ever before.  Add to this dissension in the ranks at the FED itself.

That the Street considers it all a slam all you really need to know.

Tue, 08/30/2011 - 20:12 | 1617140 sun tzu
sun tzu's picture

It won't reach enough people. Too many have their hands in the cookie jar. 

45 million on welfare

2 million federal employees and families

1 million military and families

millions of government contractors and families

millions of state and local government emplyees and families

60 million receiving social security


The gravy train won't stop until it derails.


Tue, 08/30/2011 - 18:10 | 1616753 JohnG
JohnG's picture

Andrew Jackson.  That's about all of them.

Tue, 08/30/2011 - 16:44 | 1616504 vmromk
vmromk's picture

There will be no QE3 on September 21.

The Fed has interest rates where they want them, they announce QE3, and rates will rise, just as they did when QE2 was announced.

The entire ponzi scheme will crumble if rates start to rise.

The stock market will be the sacrifical lamb.


Tue, 08/30/2011 - 16:48 | 1616532 Spitzer
Spitzer's picture

Thats wrong. If you held German bonds through Wiemar, WW1 and WW2 you got wiped out 3 times. If you held Siemens stock, you would still have money today.

Stocks are not gold but they do represent real assets. Bonds represent fuck all nothing.

Tue, 08/30/2011 - 20:18 | 1617154 sun tzu
sun tzu's picture

Stocks in solid companies with good balance sheets. That pretty much wipes out all major banks

Tue, 08/30/2011 - 16:53 | 1616559 NotApplicable
NotApplicable's picture

But there won't not be QE3 then either.

It's all about manufactured consent. Something isn't going to happen, until it does, and by then, it's a given, so it's "priced in."

JPM is just setting it all up (as well as GS, Pimpco, etc.), as the announcement was already pre-announced months (if not years) ago.

In other words, all they are doing is managing expectations. The scope of action is already determined as the Coup of 1913 comes full circle.

Tue, 08/30/2011 - 17:00 | 1616585 eatthebanksters
eatthebanksters's picture

Jamie is directing all the traffic...

Tue, 08/30/2011 - 18:49 | 1616886 RockyRacoon
RockyRacoon's picture

Wonder how many Congressfolk will have to be taken into a back room and shown the REAL economic data to get them to pass another humongous stimulus plan?   They won't need threats of a financial meltdown this time -- just give 'em the unadorned truth.   Wonder if the TP members would fall for it anyhow?

Tue, 08/30/2011 - 20:19 | 1617158 sun tzu
sun tzu's picture

There won't be another stimulus. 

Tue, 08/30/2011 - 16:45 | 1616511 Long-John-Silver
Long-John-Silver's picture

Gold to $56,000 and Silver to $936 QE to infinity and beyond guarantees it.

Tue, 08/30/2011 - 16:51 | 1616547 tekhneek
tekhneek's picture

They left out the "$300 milk" estimates

Tue, 08/30/2011 - 16:53 | 1616556 Long-John-Silver
Long-John-Silver's picture

You missed a zero. $3,000 milk.

Tue, 08/30/2011 - 18:52 | 1616892 RockyRacoon
RockyRacoon's picture

The site had a smiliing Glenn Beck in a Goldline adlet.   Piss on it -- I shut 'er down.

Tue, 08/30/2011 - 20:21 | 1617165 sun tzu
sun tzu's picture

Who gives a fuck about Glenn Beck. Some people try to discredit gold by pointing to Glenn Beck. Glenn Beck drinks water, so maybe those people should stop drinking water

Wed, 08/31/2011 - 20:15 | 1621118 RockyRacoon
RockyRacoon's picture

Beck sucks.  I don't know how to put it any more eloquently.

Tue, 08/30/2011 - 16:46 | 1616520 buzzsaw99
buzzsaw99's picture

Funny reading the puppeteers analyze the words and actions of the puppets.

Tue, 08/30/2011 - 16:51 | 1616544 TruthInSunshine
TruthInSunshine's picture

+2.75 (formerly 1, but inflation's a bitch)

Tue, 08/30/2011 - 16:46 | 1616521 The Cash Flow i...
The Cash Flow is King's picture

Keep looking to the CPI to show that we are not priming the Dollar for its ultimate doom...

Keep looking to housing to show that inflation isn't a fear. 

Ignore the fact that the Fed balance sheet skyrocketed. 

Tue, 08/30/2011 - 16:59 | 1616579 buzzsaw99
buzzsaw99's picture


August 2011 CPI data are scheduled to be released on September 15, 2011.

2011 FOMC Meeting September, 20-21.

All "they" had to do was get the cpi down for one month to give the fed cover to run the presses.

Tue, 08/30/2011 - 16:47 | 1616524 Sequitur
Sequitur's picture

Can't they just say no?

At this point, frankly I wish China, Japan and the other countries would stop buying our debt. Plainly, discipline is not forthcoming from within. So why do these foreign countries persist in buying our worthless paper?

Tue, 08/30/2011 - 16:56 | 1616566 NotApplicable
NotApplicable's picture

Because the payoff is ownership of the sheeple.

Tue, 08/30/2011 - 18:58 | 1616921 Esso
Esso's picture

And then what? The only thing you can do with sheep is shear them or slaughter them.

Ack! Nevermind.

Tue, 08/30/2011 - 16:48 | 1616528 fiddler_on_the_roof
fiddler_on_the_roof's picture

are these instances of the big banks saying "QE will come" going to be another instance of "crying Wolf is coming".

If there is no QE, someone(FED or Obama?) will pay for this

Tue, 08/30/2011 - 16:49 | 1616535 Ruffcut
Ruffcut's picture

Another organization of quackery and puppet shows.

Yes, the fed says qe3+ needs to stabilize the chaos of the markets.

There. Shit story told.

Fed democracy, HUh, my aching asshole. 2 no votes, like these buttbrains actually control anything. Mere puppet spokesmorons.

Gold bitchez? New global shit disturbin and new currency desire.

Just like relationships, domination is the ace of spades.

Tue, 08/30/2011 - 16:50 | 1616537 Bastiat
Bastiat's picture

What happened to equities??  Big dump into the close.

Tue, 08/30/2011 - 17:30 | 1616665 HyperLazy
HyperLazy's picture

Last minute ramp up to sell off.

Tue, 08/30/2011 - 16:49 | 1616538 Subprime JD
Subprime JD's picture

There is also a better than even chance that JP Morgue is a insolvent zombie bank that lives off the carcass of the American middle class. Please killself JP Morgue post haste

Tue, 08/30/2011 - 16:51 | 1616548 Waffen
Waffen's picture

Please oh Please I need QE3 for Christmas. I really want my Gold and Silver to go up, Silver is making me nervous, bring on QE.

Tue, 08/30/2011 - 16:57 | 1616571 NotApplicable
NotApplicable's picture

Nervous? BTFD!

Tue, 08/30/2011 - 17:08 | 1616610 Waffen
Waffen's picture

Oh I got some more last night.

1/2 oz Dragons.

Tue, 08/30/2011 - 17:17 | 1616637 Conax
Conax's picture

oooo dragons!

Poor and raggedy assed as I am, I popped for a 10 oz from Gainesville, get em before they're gone boys!

Can't lose much money on these dragons, they're so hot they're smokin!

A billion screamin Chinese can't be wrong..

Tue, 08/30/2011 - 16:51 | 1616549 High Plains Drifter
High Plains Drifter's picture

gold and silver bullion buy buy ......bitchez...

Tue, 08/30/2011 - 16:53 | 1616553 flow5
flow5's picture

Contrary to economic theory, & Nobel laureate, Dr. Milton Friedman, monetary lags are not "long & variable". The lags for monetary flows (our means-of-payment money X's its TRANSACTIONS rate-of-turnover), i.e., the proxies for (1) real-growth, & for (2) inflation indices, are historically (for the last 98 years), always, fixed in length. However, the FED's target (?), seems to vary widely.

Short term money flows peaked in Aug (a month after the market top) - although velocity peaked 7/21/11 (the day the market peaked).

Long term money flows are still rising (signaling that prices will continue to rise until OCT). If the FED loosens, it won't be until the 4th qtr.

Tue, 08/30/2011 - 16:53 | 1616554 sabra1
sabra1's picture

i know as a fact that china demanded more inflation, and QE is the only way to do it!

Tue, 08/30/2011 - 17:00 | 1616584 tekhneek
tekhneek's picture


Tue, 08/30/2011 - 16:55 | 1616561 High Plains Drifter
High Plains Drifter's picture

911 tenth anniversary......

william rodriguez, the so-called last man a complete liar and a fraud...

Tue, 08/30/2011 - 16:55 | 1616562 Gubbmint Cheese
Gubbmint Cheese's picture

so spend a few trillion in QE to get GDP to go up by what, $140b? (not taking into account the next revision).. Yup.. sounds like a typical JPM investment strategy.

Tue, 08/30/2011 - 16:58 | 1616576 Robslob
Robslob's picture

Seems like everyone (banks & msm) are really going out of their way to announce QE3 to anyone who will listen?

Maybe I am getting old but I don't remember the other qees being panhandled so hard...


Tue, 08/30/2011 - 17:21 | 1616653 lizzy36
lizzy36's picture

Times are tough baby.

Y/Y banker bonuses may actually decline.

Can't have that.


Tue, 08/30/2011 - 17:00 | 1616580 flow5
flow5's picture

The discussion on lowering IOER was very terse, as "a few participants noted" that it could be "helpful in easing financial conditions."

It's called an inverted yield curve at the short-end (as evidenced by the .20% rate 2 years out on the Daily Treasury Yield Curve) - 8/29/11.

        Lending by the CBs is inflationary (it expands both the volume & velocity of new money). Lending by the non-banks is not inflationary (it results in the turnover of existing money).

The “tipping point” is determined by the relative growth rates of Reserve & Commercial bank financing, as compared to the growth rates of the financial intermediaries (non-bank lending sector).

Only as monetary savings are routed thru the non-banks, rather than be impounded within the CB system, will payrolls rise sufficiently to erase the current “debt overhang”. IOeRs are the problem.

I.e.,the 5 increases in REG Q ceilings(for the CBs only), beginning in 1957 & culminating in 1965, induced dis-intermediation in the MSBs & S&Ls (non-banks). It caused a housing crisis. The non-banks didn’t have any ceilings at that time. They were unregulated.

The point is today, the remuneration rate (like Reg Q ceilings then), is high enough to cause dis-intermediation in the Shadow Banks (& other non-banks). I.e., IOeRs impound savings within the CB system.

Tue, 08/30/2011 - 16:59 | 1616582 Lord Welligton
Lord Welligton's picture

Why has Gibson Guitar been targeted by the Black Fascist?

Tue, 08/30/2011 - 17:04 | 1616600 Long-John-Silver
Long-John-Silver's picture

They employ American citizens.

Tue, 08/30/2011 - 17:17 | 1616635 Lord Welligton
Lord Welligton's picture


Obama is a Global Fascist.

Who needs Nations.

Well obviously not him.

Tue, 08/30/2011 - 17:04 | 1616601 rambler6421
rambler6421's picture

Cuz Gibson Guitar's competitor gave money to Soetero.....Gibson Guitar didn't. 

Tue, 08/30/2011 - 17:21 | 1616652 Lord Welligton
Lord Welligton's picture


That's the way Fascism works.

Threaten the "people".

Labour, Enterprise, Land or Capital.

It doesn't matter to Fascists.

Colour doesn't matter either.

It just happens that the current Fascist is Black.



Tue, 08/30/2011 - 20:09 | 1617123 delacroix
delacroix's picture

something to do with rare rosewood they use, being an endangered tree

Tue, 08/30/2011 - 17:17 | 1616630 TruthInSunshine
TruthInSunshine's picture

Because Obama has been instructed by his handlers to get Gibson successfully relocated to Mexico or China. Maybe The Carlye Group (search their members; lots of elites and former high ranking regulators and politicians there) will buy them out, like they have done with so many other formerly iconic American Brands.

Tue, 08/30/2011 - 17:31 | 1616666 Lord Welligton
Lord Welligton's picture


But I bet you never thought that the first Fascist leader of "America" would be Black.

And it's because he's Black that it happens.

After all.

It he were White and Southern it would be obvious.

He be Black.

So you're not allowed call a Spade a Spade.

Tue, 08/30/2011 - 18:41 | 1616858 Stoploss
Stoploss's picture

Because their fretboards are harvested overseas, partially processed, then shipped here for final processing and assembly. It is only legal to ship complete finished products, therefore, the green police have gone after Gibson. There was an interview with Gibson's CEO, who have filed a suit for return of the seized property valued in the millions. Quite a hit for such a little company. AND they employ american citizens. ( I purposefully left the capitol off of america ), it doesn't deserve it any longer.

If you don't have a Gibson guitar, i would suggest buying one even if you don't play. They will be worth a lot of gold in the near future, if they lose that suit.

Tue, 08/30/2011 - 18:49 | 1616890 slaughterer
slaughterer's picture

I bought a Gibson Les Paul 1958 "gold top" in 1979 for $1200.  Today it is worth $30,000.  Nice investment, eh?

Tue, 08/30/2011 - 17:00 | 1616583 max2205
max2205's picture

A sitcom in the making. The laughs keep coming.

Banks sound desperate too. Lazi Faire Bitches; one day they'll figure it out

Tue, 08/30/2011 - 17:01 | 1616589 Justaman
Justaman's picture

Wake up everybody!  QE3 is happening now under a new context and design, i.e., expanding military action, rolling bond maturies, investing bank capital, to name a few.  They made the mistake of bringing it public last time.  They won't make the same mistake again. 


Tue, 08/30/2011 - 17:01 | 1616592 High Plains Drifter
High Plains Drifter's picture

911 tenth anniversary....

35 possible reasons why small nuclear devices of some sort were used at the wtc on thing is for certain. something unknown caused the area underneath that building rubble to burn at temps above 3000 degrees for several weeks after 911. what caused that? also what is causing the deaths of the 911 first responders?

Thursday, July 02, 2009
35 Reasons for Many Small Fission Nukes at the WTC
1) heat generation at ground zero for six months (china syndrome)
2) inability to quench ground zero heat with water
3) red hot/molten steel at ground zero
4) missing core columns from ground zero (vaporized during destruction)
5) spreading of sand at ground zero consistent with attempts to limit radiation
6) washing of steel recovered from pile consistent with radiation decontamination
7) extreme security for ground zero steel shipments consistent with limiting access to radioactive steel
8) extreme security at ground zero, limiting exposure, view of devastation
9) extreme pulverization of WTC concrete into very fine particles
10) disappearance of over one thousand human bodies from WTC debris
11) disappearance of furniture, phones, filing cabinets and computers from WTC debris
12) disappearance of elevator doors, office doors, office cubicle walls, toilets and sinks from WTC debris
13) several floor fragments fused together in “meteorite” object
14) bone fragments sprayed into Bankers Trust upper floor during destruction
15) multiple blast waves during destruction of tower
16) large fireballs during initiation of WTC1 destruction
17) small backpack-sized fission nukes exist
18) fission-nuke technology well-established
19) low efficiency of fission nukes ensures leftover radioactive fragments and China syndrome
20) EMP formation during tower destruction (exploding cars, partial burning)
21) Description of heat in WTC blast cloud
22) Extensive cover-up of ground zero air by EPA
23) High rate of cancers, including thyroid cancer typically associated with radiation exposure, in ground zero responders
24) Melted, hanging skin in WTC survivor Felipe David in absence of fire
25) Vaporized press and crumpled steel door in WTC basement reported by Pecoraro
26) Steel beam bent in U, without cracking, evidence of extreme high temps
27) Steel beam bent in U has layer of molten metal on surface
28) Extreme overall devastation of two massive towers and blasted out Ground Zero aftermath
29) Appearance of fantastical, nonsensical DEW theory by likely govt agents-- uses evidence of nukes (EMP, extreme pulverization of tower into dust) but denies nukes at all costs
30) Appearance of fantastical, nonsensical thermite (super nano-thermite) theory by likely govt agents-- uses evidence of nukes (molten steel, china syndrome) but denies nukes at all costs
31) Small iron microspheres found by Jones et al in WTC dust— evidence of steel vaporization by high temps of nukes
32) Pyroclastic debris cloud during WTC destruction
33) Upwards jutting debris trails reminiscent of debris trails formed during underground nuke test
34) Small bright flashes during destruction of both towers
35) Extremely compacted ground zero debris
posted by spooked @ 4:54 AM

Tue, 08/30/2011 - 17:02 | 1616593 sabra1
sabra1's picture

as mike krieger mentioned about QE3. it'll be the que for the elite to get out of their positions!

Tue, 08/30/2011 - 17:09 | 1616613 Sudden Debt
Sudden Debt's picture

Shit man...

The Lunar 2012 dragon was just released.... 65 euro for 1 ounce silver coin... 94 dollar... talk about a premium...



Tue, 08/30/2011 - 17:18 | 1616642 Cdad
Cdad's picture

Wouldn't that exchange rate simply say more about the absurd value of the Euro itself?  That the Euro is still sitting here at 1.44 is simply laughable.

Personally, I'd ask for 100+ Euros if I had silver coin to sell you, SD.

Tue, 08/30/2011 - 17:29 | 1616663 Sudden Debt
Sudden Debt's picture

Eagles are cheap. 33 euro. Must be because the dollar is worthless to.


Tue, 08/30/2011 - 18:41 | 1616856 Bastiat
Bastiat's picture

I see no reason to pay the absurd premium.

Tue, 08/30/2011 - 18:59 | 1616920 RockyRacoon
RockyRacoon's picture

What would you pay for an American Silver Eagle proof?   I was paying $12 to $17 for them in the mid 1990s.   (Outrageous premiums, I yelled)  Sold 50 mixed dates, still in original presentation boxes, for $65 about 6 months ago.   Used the money to roll into some bullion ASEs.   That's what I call arb.

Tue, 08/30/2011 - 19:55 | 1617083 Bastiat
Bastiat's picture

A trade is a trade . . .and that's a nice one:  congrats!

I buy for the bullion and try to minimize the premiums.  I do own some proofs, not to trade, just to look at.

Wed, 08/31/2011 - 20:16 | 1621122 RockyRacoon
RockyRacoon's picture

Do you do windows?

Tue, 08/30/2011 - 17:10 | 1616614 MacroStory
MacroStory's picture

This would be a duration adjustment not a balance sheet expansion so no money printing as I view it. Proceeds from the sale of one security would be used to purchase the other. No?

Tue, 08/30/2011 - 17:13 | 1616622 Caviar Emptor
Caviar Emptor's picture

This is like the worst case of Wall Street Blue Balls ever!!!! Oh Ben! Ben! Give me QE!!!! GIVE ME QE!!!!!!

Ah but Ben knows how to tease...he was generous before but now if he wants to control he just has to say one lil ole word : NO! And with that 1 word he can have the entire Financial Services Industry at his feet groveling, begging and willing. He can write his ticket! He can just about make them do anything he wants. 

And best of all is that the politicians are about to unveil at least 4 different types of fiscal stim. Mortgage refi is just one, but a big jobs program is coming too, so is a business tax break or two (extend payroll holiday and reduce ss contrib) and infrastructure. All "revenue neutral"! The sheer magic of those guys is amazing!!

Tue, 08/30/2011 - 17:16 | 1616631 ArkansasAngie
ArkansasAngie's picture

We should be on hand as a crowd with plastic pitchforks.


Tue, 08/30/2011 - 17:29 | 1616661 Subprime JD
Subprime JD's picture

Call me crazy but I cant get S&P 1500 out of my head. I see these satanic central planners creating a monster triple top. If they can keep Eurozone together for a good 24 months then its possible we may see 1500?

What does the ZH crew think about this theory????

Tue, 08/30/2011 - 18:22 | 1616795 gwar5
gwar5's picture

30% S&P nominal gains - (minus) 15% devaluation dollar = 10.5% real gains, which is before capital gains taxes on that 30% nominal gain. Remember, your principle investment was debased too, hence only about 10.5% real gains, before those taxes on the gains. Doesn't really seem fair for your risk.


Holding physical gold: has been returning 20-25% YOY, no cap gains.  Assuming, gold  @ $1800/oz + 20% gain ($360.)  =  $2160/oz gold. That 20% seems pretty likely to happen within 12 months without even breaking a sweat, especially if QE3 is announced outright, or implemented.


Bottom line: If S&P earns 30% nominal gains by QE 3 and debasing currency, your real gains are actually much smaller.  See, the S&P is now a bathroom mirror where your own dick will always look way bigger than it really is.  




Tue, 08/30/2011 - 18:43 | 1616866 Subprime JD
Subprime JD's picture

Excellent analysis. I'm curious for other purposes, such as shorting, the implosion of public pensions and general public perception. So in effect you dont think its impossible for us to see a triple top in the SPX

Tue, 08/30/2011 - 17:40 | 1616693 virgilcaine
virgilcaine's picture

Better than 50/50 JPM may be a criminal enterprise.?

Tue, 08/30/2011 - 17:43 | 1616696 gwar5
gwar5's picture

Looks like a 'YES' to QE3 to me if one of the serpent heads, like JPM, is giving a one and a half thumbs up. 

Buy. Gold. Now.

Tue, 08/30/2011 - 17:49 | 1616716 silverbullion
silverbullion's picture

To infinity and beyond.

Tue, 08/30/2011 - 18:05 | 1616747 Ned Zeppelin
Ned Zeppelin's picture

Yes, buy equities and gold - that is the move. At least you'll have gold when it's done.

Tue, 08/30/2011 - 18:10 | 1616760 silverbullion
silverbullion's picture

The "paper gimmick" is in essence any deliberate or calculated move or maneuver to institutionalise or establish a monetary system that can be used to defraud public or private entities (governments, citizens, organisations, businesses, etc.) out of hard currency or real money (consisting of or backed by gold, silver or other precious metals). It normally goes hand-in-hand with the printing and issuing of non-redeemable paper notes (or fiat currencies), the charging of interest on loans and the establishment of a national/central bank that is actually under private ownership -

Tue, 08/30/2011 - 18:23 | 1616799 virgilcaine
virgilcaine's picture

Buzz lightyear monetary policy.

Tue, 08/30/2011 - 18:30 | 1616807 66Sexy
66Sexy's picture

So Jackson Hole was red meat for the hawks? Enought for JPM to give a 6/5 on "Accomodation" next meeting?

Why shouldn't Sept see a priced in expectation (as the market suggests now) then another letdown? Is Bernake sending the message that he wants to see more waving dollar bills in the air? More hard on's in the audience?.. 

Reminds me of a lap dance i got once. For some reason I had to keep paying 20 bucks every 5 minutes.

Tue, 08/30/2011 - 19:36 | 1616878 virgilcaine
virgilcaine's picture

If they do qe 3 in Sept its 90% priced in already on diminishing returns on QE.  Ben can,t fight the Bear too much and knows it well.

Crude oil at 90-100 on qe would be the great neutrailizer.  The already flat economy would roll over like Fido, and yes the Market knows this.

Ben is boxed in nicely, enjoy the cubicle.

Tue, 08/30/2011 - 20:12 | 1617138 chump666
chump666's picture

The political backlash against a USD devalue trade via Bernanke's insanity will be immense.


Tue, 08/30/2011 - 20:21 | 1617170 DollarDive
DollarDive's picture

How low do these wipes want interest rates to go..... ?????  Do they actually think that moving the 30year from .00001 to .000005 will make a bit of difference in the economy ? Cut the shit.  These dinks should all be fired and made to go clean toilets.  The money they make toiling over these ridiculous decisions and posturing adds nothing to the real economy.


Bens been predicting that we'll beging to see a modest recovery







A broken clock is right a least twice a day.......

Tue, 08/30/2011 - 21:03 | 1617302 janus
janus's picture

quick note to anyone trying to learn all they can about this stuff.

not long ago, i started collecting acronyms and other 'trade terms'.  because i always had to go and look these things up over and over, i figured why not make a crib sheet with all the little terms in alphabetical order.  it has save me tons of time.

hope it helps other neophytes

Wed, 08/31/2011 - 00:25 | 1617944 Mortimer
Mortimer's picture


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shacai's picture

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