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Bernanke Fails To Deliver As Chairman Checks To Congress
The market is not amused...
- *BERNANKE SAYS STAGNATION IN LABOR MARKET IS `GRAVE CONCERN'
- *BERNANKE SAYS FED WILL BOOST ACCOMMODATION AS NEEDED FOR GROWTH
- *BERNANKE SAYS HE WOULDN'T RULE OUT FURTHER ASSET PURCHASES
- *BERNANKE: QE `SIGNIFICANTLY LOWERED LONG-TERM TREASURY YIELDS'
- *BERNANKE SAYS IMPACT OF QE IS `ECONOMICALLY MEANINGFUL'
- *BERNANKE: BIG BOOST IN QE MAY REDUCE CONFIDENCE IN SMOOTH EXIT
Those are the headlines. Here is the disappointing conclusion , which promises nothing new at all:
As I have discussed today, it is also true that nontraditional policies are relatively more difficult to apply, at least given the present state of our knowledge. Estimates of the effects of nontraditional policies on economic activity and inflation are uncertain, and the use of nontraditional policies involves costs beyond those generally associated with more-standard policies. Consequently, the bar for the use of nontraditional policies is higher than for traditional policies. In addition, in the present context, nontraditional policies share the limitations of monetary policy more generally: Monetary policy cannot achieve by itself what a broader and more balanced set of economic policies might achieve; in particular, it cannot neutralize the fiscal and financial risks that the country faces. It certainly cannot fine-tune economic outcomes.
As we assess the benefits and costs of alternative policy approaches, though, we must not lose sight of the daunting economic challenges that confront our nation. The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.
But here is where Bernanke literally kicks the market in the teeth:
A second potential cost of additional securities purchases is that substantial further expansions of the balance sheet could reduce public confidence in the Fed's ability to exit smoothly from its accommodative policies at the appropriate time. Even if unjustified, such a reduction in confidence might increase the risk of a costly unanchoring of inflation expectations, leading in turn to financial and economic instability.
Bernanke just admitted the risk of deferred inflation and thus checked to Congress once again. And with the Fiscal cliff coming up, not to mention elections and the debt ceiling fight up ahead, good luck Chairman.
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I actually have a higher opinion of Bernanke today than I did yesterday.
AAAAAAAAAAAAAAAAnd...Brother Gold and Sister Silver are GREEN. FUK U! Edit: Sticky Pants!
Spikey goodness everywhere.
WTF? Look at that silver bounceback!
And Gold. And equities. And...
Broken markets, anyone?
So no QE and the market rises and gold rises.
Looks like he announced QE.
ZIRP is QE
$1650 BITCHEZ! Edit:Bring on $1764
Gold went down and then went sky high...
Markets no longer care if QE happens or not as long as it CAN happen maybe, possibly at the next meeting. Simply uttering the words QE, whether negatively or not is reason enough to ramp the markets...
Hey, what the fuck is the dude gonna do? He checked to congress, again, because he at least gets that monetary policy without any fiscal policy has limits, and the Fed is at those (conventional) limits. More QE, no matter how you slice it, will not end well, especially with the dysfunctional congress using Fed's cheap credit to not do anything except play hot potato with the crazy aunt in the basement, i.e. the deficit and it's growth.
Chuck Shum-whomever's assinine comment that 'It's time to get to work Mr. Bernake' has got to be one of the dumbest political statements from either side of the aisle, and from the Senate Finance Committee no less, that has come down this year. Congress'es inability to put together ANY fucking kind of fiscal policy except our current fiscal cliff is now THE problem, not what the Fed is gonna do or not do.
ZH has given the Fed in general and Uncle Ben in particular a well deserved pounding, but the Fed is symptom of a hugely dysfunctional political system getting more dysfunctional by the day. We collectively need to raise revenue (taxes) back to Clinton-era levels and decrease spending and entitlements - and it is just not happening in our current sound-bite, I've got mine screw you Congress (which reflects the 1% pretty well).
The Fed can't save us because WE can't save us - our so-called lawmakers and regulators are bought and sold by TPTB.
Maybe we could ease off on Uncle Ben a little bit and start taking on a bit harder target: the Senate Banking and Finance Committee. Where those assholes (both parties) get their re-election money from should be a national scandal, and ZHers should be all over it. But Ben (and little Timmy) are easier targets.
Time to go after bigger game, BitCheez
Same 'ol, same 'ol QE to infinity
Gottesdaemmerung after elections
Look again, the market is soaring
The plunge protection team sure turned the "market" around quick
The idea that a hand full of people can manipulate the market and cause such a large volatility event like today is why I am out as an investor in these markets.
seems as if our betters are selling off the dollar causing the algos to trade 'er up as anecdote to sholly failing to deliver: clever.
THIS MEANS WAR!!!
And i'm affraid i'm being dead serious :/
It's simply astounding how much bullshit propaganda goes into his statements:
Translation: If we print any more money people will wise up and we'll get hyperinflation which will destroy our precious dollar.
"It's bad."
"But wait, it's good because it's bad, this means QE3 in the Fall."
"But that's bad."
"No, it's good."
"But for now it's bad?"
"No, it's good."
.....................
The market still thinks Bernanke will QE to inifnity if it ever drops. The algos just see that as a forever buy signal.
It's terminal, get out while you can.
Its funny...the people who want QE heard it in his speech......the other side did not....I guess that is a good double speak speech
http://www.oftwominds.com/blogaug12/Reverse-Robin-Ben8-12.html
CHS says it all.... We're hosed
A blockbuster. Sure to be a Friday-must on Zero Hedge.
Classic BTFD for the gold/silver complex - extremely bullish action.
Bernanke is the bag holder. The culprit (on central bankers side) is Alan Greenspan, an accomplished demon of financial destruction. We should all be grateful to Ben Shalom B. for borrowing the time that allows us to prepare for the world after. No sarc.
“The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.” – Ben Bernanke
What he has done is load up his helicopters with trillions of dollars and circled above Wall Street… continuously dropping his load. – Jim Quinn, The Year of Catch 22 posted on ZH 01/02/2011
http://www.zerohedge.com/article/guest-post-2011-year-catch-22
FedCorp budget now 60 days past due and the media is silent. Hot air is the only ammo they have left.
60 days? Try 1K + past due. Barry has not signed a budget since he's been POTUS.
Thanks for the correction. Guess FEDCORP considers budgets irrelevant? And the media considers news irrelevant? And I consider FEDCORP irrelevant. It is up to We the People now.
As if we needed any more evidence that the markets are so very broken.
Am I the only one who thinks Palladium might hit it's 580$ floor because of this? http://www.monex.com/prods/palladium_chart.html
Stock markets blood bath for sure on monday!
They're closed on Monday in the US for Labor Day. For anyone who still has a job
"BERNANKE SAYS IMPACT OF QE IS `ECONOMICALLY MEANINGFUL'"
that's a good one. I would like to see his face in super slo-mo when he said that.
I think I need a lobotomy so I can better predict this market.
http://online.wsj.com/article/SB10000872396390443864204577623220212805132.html?mod=WSJ_hpp_LEFTTopStories
WSJ is at it again
+$20 = Gold is speaking for everyone: "Central Banks are not able to fix this mess".
Either inflationary read = gold goes up
or
systemic risk read = gold goes up
I believe he DID deliver.
He could not do more nor less before important decisions by Eurozone and China over the next few trading days.
It's good that Eurozone and China take center stage now, with Fed as a supporting player.