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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hedgeless_horseman's picture



"There are scoops for further action by the Fed..."


francis_sawyer's picture

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

Badabing's picture

"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

GraveyardSpiral's picture

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

HarryM's picture

Is this article a Reprint ?


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

malikai's picture

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

JPM Hater001's picture

There's always room for icecream.

flacon's picture

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

Cognitive Dissonance's picture

It hammered Gold and Silver.

Too funny the games TPTB play.

AlphaDawg's picture

Keep talking wankers

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

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. 

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.


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.

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.

Precious's picture

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

Nobody For President's picture

No, it's kinda like mouthwash...

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.

El Hosel's picture

Its a "Speak Easing" rally, nicely done.

Cognitive Dissonance's picture

Loose lips float all fiat ships.

reader2010's picture

"Get to work, Mr. Chairman."

SmoothCoolSmoke's picture

Crooks operating in broad daylight.

The Axe's picture

Its CLEAR  BEN will PRINT     long silver

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.


bnbdnb's picture

...a market full of crack addicts.

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?

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. 

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.

BeerBrewer09's picture

makes me rotfl but...

most people buy into that lie.

mammoth mo's picture

Well its official,

Yesterday was the bear trap.



Slope of Hope's picture

Cue Full Retard Algo

bigbucksr's picture

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

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...

Dr. Engali's picture

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

El Hosel's picture

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

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....................

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.

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..............