Bernanke To The Rescue "There Is Scope For Further Action By The Federal Reserve"

Tyler Durden's picture


It is Friday, and the market is in danger of posting its first weekly loss in months. Which means it is time for everyone's favorite Fed mouthpiece, Jon Hilsenrath to hand over the podium to his true superior, Ben Bernanke, by posting the Chairsatan's response letter to Republican Darrel Issa in which he defends QE and leave in the following: "There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery." And just to make sure that as Hilsenrath is to the Fed, so Reuters is to the ECB, we get the following tried and now simply pathetic regurgitation of the Spiegel rumor from this Sunday (which was since denied at least two times for the simple reason that Germany will never agree to open-ended debt monetization until global stock markets are literally collapsing) via Reuters: "ECB considering setting yield band targets under new bond buying programme according to sources." Of course, neither Ben has said anything new, nor the ECB has said something that is on the margin either credible or actionable (recall that earlier today the ECB explicitly said its hands are tied until the Kardinals of Karlsruhe make their decision in 3 weeks), but the market doesn't care, and surges. Sadly for the programmed market ramp, the non-news was leaked too early, and should have been released at 3:30 pm at the earlier. Look for a full German denial shortly.


Full Bernanke letter response to Issa's prior letter:


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Fri, 08/24/2012 - 11:24 | 2733963 Boilermaker
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Fri, 08/24/2012 - 11:32 | 2733998 malikai
malikai's picture

Typical Friday shenannigans. Beware, gold.

EDIT: Also, LOL @S&P

Fri, 08/24/2012 - 11:39 | 2734024 hedgeless_horseman
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"There are scoops for further action by the Fed..."


Fri, 08/24/2012 - 11:39 | 2734033 flacon
flacon's picture

soylent greenbacks.

Fri, 08/24/2012 - 11:44 | 2734047 francis_sawyer
francis_sawyer's picture

So does this mean that they're giving Hilsenrath the day off?

Fri, 08/24/2012 - 11:58 | 2734102 Badabing
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"ECB considering setting yield band targets under new bond buying programme according to sources."

Who the hell is sources?

They must mean Joe Sources, that’s the guy that said Iraq had WMD

Fri, 08/24/2012 - 12:06 | 2734131 GraveyardSpiral
GraveyardSpiral's picture

...and the same guy that called Sen. Reid, a couple weeks back, with some really important news about Romney's taxes....

Fri, 08/24/2012 - 12:19 | 2734166 economics9698
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Bend over.

Fri, 08/24/2012 - 14:45 | 2734756 bernorange
bernorange's picture

Good Fed, bad Fed = bipolar headline reactions.

Fri, 08/24/2012 - 15:00 | 2734827 HarryM
HarryM's picture

Is this article a Reprint ?


I think I've read it about a dozen times now

Fri, 08/24/2012 - 11:39 | 2734034 malikai
malikai's picture

I can never forget the sound those things made. So creepy..

Fri, 08/24/2012 - 11:54 | 2734083 JPM Hater001
JPM Hater001's picture

There's always room for icecream.

Fri, 08/24/2012 - 11:50 | 2734065 surf0766
surf0766's picture

green shoots

Fri, 08/24/2012 - 11:32 | 2734004 flacon
flacon's picture

Let's hope this pushes silver over the 200dma.

Fri, 08/24/2012 - 11:37 | 2734020 Cognitive Dissonance
Cognitive Dissonance's picture

It hammered Gold and Silver.

Too funny the games TPTB play.

Fri, 08/24/2012 - 11:38 | 2734028 AlphaDawg
AlphaDawg's picture

Keep talking wankers

Its all you got, print now or later, the system is fucked

Fri, 08/24/2012 - 11:53 | 2734075 flacon
flacon's picture

Yeah, that was retarded - announce more printing and silver takes a punch in the gut. Let's hope the buying absorbs these punches. 

Fri, 08/24/2012 - 12:02 | 2734117 malikai
malikai's picture

Stop hunt.

Fri, 08/24/2012 - 11:42 | 2734044 fireangelmaverick
fireangelmaverick's picture

Qt 23

Should we buy this fucking dip?

Answer: it is the stance of the Fed that every dip should be bought. With regard to that Market participants can buy the dip or the Plunge Proetction Team can. In either case it will be  bought.

So to answer your question, it does not matter whether u buy it or not, this dip shall be bought, So Say we all.


Fri, 08/24/2012 - 12:03 | 2734120 Robot Traders Mom
Robot Traders Mom's picture

There are broker rumors that a new mortgage QE will be announced this weekend:

1. Refinancing avail for under $700k mortgage

2. Must be current last 12 months

3. Refi at 2% for 5 yrs, Float to 1mo OIS+100 bps for remaining 25 yrs

4. $500 origination charge

-I'm sure Tyler has heard this and if it was feasible, he would have commented...just a RUMOR.

Fri, 08/24/2012 - 16:54 | 2735365 harrod
harrod's picture

Bernake said nothing new here. The banksters decided in May to elect Romney .  Follow the money and hold on to your hats these coming two months.

Fri, 08/24/2012 - 11:26 | 2733969 Precious
Precious's picture

Aha.  Scope.  Is that kinda like "surge".

Fri, 08/24/2012 - 11:54 | 2734078 Nobody For President
Nobody For President's picture

No, it's kinda like mouthwash...

Fri, 08/24/2012 - 12:48 | 2734232 DosZap
DosZap's picture

Someone,anyone explain to me HOW more QE to buy Bonds, is going to help the Econ outlook in any way?.

Prop up the Mkts, Ok. But not Bonds.

As usual,makes ZERO sense.

Fri, 08/24/2012 - 11:26 | 2733970 El Hosel
El Hosel's picture

Its a "Speak Easing" rally, nicely done.

Fri, 08/24/2012 - 11:38 | 2734026 Cognitive Dissonance
Cognitive Dissonance's picture

Loose lips float all fiat ships.

Fri, 08/24/2012 - 11:27 | 2733972 reader2010
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"Get to work, Mr. Chairman."

Fri, 08/24/2012 - 11:55 | 2734087 francis_sawyer
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The good news is that this bolsters the ASSet value of Kim Kardashian's new $100,000 toilet...



The rest of you get swirlies...

Fri, 08/24/2012 - 11:58 | 2734103 tocointhephrase
tocointhephrase's picture

That girl is full of crap

Fri, 08/24/2012 - 11:26 | 2733973 SmoothCoolSmoke
SmoothCoolSmoke's picture

Crooks operating in broad daylight.

Fri, 08/24/2012 - 11:27 | 2733974 The Axe
The Axe's picture

Its CLEAR  BEN will PRINT     long silver

Fri, 08/24/2012 - 11:33 | 2734007 A Man without Q...
A Man without Qualities's picture

If he was going to print, he'd be cooling expectations, to stop oil prices from exploding.  As he isn't, I suspect it's just bluster.  I also think the rise in gold and silver is a bit iffy.


Fri, 08/24/2012 - 11:28 | 2733977 bnbdnb
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...a market full of crack addicts.

Fri, 08/24/2012 - 11:29 | 2733984 ThunderingTurd
ThunderingTurd's picture

I think it is obvious at this point the German court ruling will go in favor of the ECBs plan to buy bonds on the open market. Does anyone disagree?

Fri, 08/24/2012 - 12:24 | 2734176 FRBNYrCROOKS
FRBNYrCROOKS's picture

Brand new D-marks have already been printed and sitting in the basement of the Bundesbank. Germany will never forget anything. Euro to the trash bin. I wouldn't get caught holding Euros. The decision of the German Senate is the key and they will never, NEVER, vote for EURO-Bonds. WILL NEVER EVER HAPPEN. 

Fri, 08/24/2012 - 11:29 | 2733985 Mongo
Fri, 08/24/2012 - 11:33 | 2733987 Jlmadyson
Jlmadyson's picture

Since everything seems to be crossing on QE hopium this morn I'll repeat what I said in the other thread.

You know the best part of all this Bernake defending QE stuff and whenever they talk about it;

They always throw in recovery.

AHAHAHA! We're recovering so much so that we need 3 doses of QE, ZIRP and unending twist( lets not even talk about the Euro swaps building weekly).

It kills me every single time they plug it into the text/discussion.

Fri, 08/24/2012 - 12:17 | 2734156 BeerBrewer09
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makes me rotfl but...

most people buy into that lie.

Fri, 08/24/2012 - 11:30 | 2733991 mammoth mo
mammoth mo's picture

Well its official,

Yesterday was the bear trap.



Fri, 08/24/2012 - 11:30 | 2733993 Slope of Hope
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Cue Full Retard Algo

Fri, 08/24/2012 - 11:32 | 2734008 CloseToTheEdge
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an Algo in every Pot

Fri, 08/24/2012 - 11:30 | 2733994 bigbucksr
bigbucksr's picture

is that a bazooka in your pocket or are you just happy to see me?

Fri, 08/24/2012 - 11:31 | 2733996 Seer
Seer's picture

Strengthen WHAT [fucking] recovery?

Another example of propaganda in full display.  Just keep repeating the lie and pretty soon people quit questioning the premise...

Fri, 08/24/2012 - 11:32 | 2734005 Dr. Engali
Dr. Engali's picture

Where's kito? He owes me a turkey sandwich. I'm hungry.

Fri, 08/24/2012 - 11:35 | 2734012 El Hosel
El Hosel's picture

Nothing like a little scope for a "market" with horrible breath/Breadth.

Fri, 08/24/2012 - 11:42 | 2734040 kito
kito's picture

right here doc....ha!!!!! no chance of it poor ben is in the crosshairs of you think he is going to embolden the anti fed (disingenuous) stance now?? do you think ben will propel oil to 150?!?!?!? come on doc....the dow is lush and verdant these days, interest rates are rock bottom, FOR THE QUADRILLIONTH TIME, not happening before elections.....and where is that smack talking bay of pigs???? he is a tough guy because gold crossed over 1600 for the 100th time this year....................

Fri, 08/24/2012 - 11:51 | 2734070 Dr. Engali
Dr. Engali's picture

The fact that Ben is in Romney's crosshairs is all the more reason to print. If for nothing else he will do it to preserve the status quo and for job security.

Fri, 08/24/2012 - 11:57 | 2734099 kito
kito's picture

i cant see how bernanke would want to have his position politicized and placed in the limelight....the less people that even know who he is or what the federal reserve is (most dont), the better off he is.......... having his name thrown around so close to elections, when the masses are tuned in,  does NOT enable his job security or the security of the fed..............

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