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Bernanke To The Rescue "There Is Scope For Further Action By The Federal Reserve"
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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What a powerful shot, c-o-g. Thanks!
I must point this out in retort to your post. This is from the dissenting opinion from the FCIC report which staes:
*port of the other Republican members.
One glaring example will illustrate the Commission’s lack of objectivity.
In March 2010, Edward Pinto, a resident fellow at the American Enterprise
Institute (AEI) who had served as chief credit oi cer at Fannie Mae, provided to
the Commission staf a 70-page, fully sourced memorandum on the number of
subprime and other high risk mortgages in the i nancial system immediately before
the i nancial crisis. In that memorandum, Pinto recorded that he had found over
25 million such mortgages (his later work showed that there were approximately 27
million).
Since there are about 55 million mortgages in the U.S., Pinto’s research
indicated that, as the financial crisis began, half of all U.S. mortgages were of inferior
quality and liable to default when housing prices were no longer rising.*
So, since 1/2 of all existing mortgages were sub-prime means housing prices were artificially driven up and anyone who bought a home during that period of sub-prime underwriting lost ,untold, trillions in equity. There is no easy solution to all of your lifes savings evaporating in a matter of months. This capital lost by households has cut demand and while you are correct in most of your assertions, what does it matter? If you/most of the world lost, forever, the capital/equity by whatever device whether it be the market or house equity or currency devaluation what does it really matter what the FRBNY do now? Those that were broke will remain so. Those that were filty rich and diversified are still consumers.
Life is not fair and never will be. Get over it, take the blue pill and chill out. Nothing is going to happen to those, Jews, who stole our equity. This fact is more than obvious. All Jews aren't evil but, I do think the crisis was the result of a Jewish agenda. So was 911, Iraq war, Afghan war, Syria etc.
This is a result of them sticking together and the rest of us not.
Please live by the adage "Fool me once, shame on you. Fool me twice, shame on me." We won't be fooled again.
Please live by the adage "Fool me once, shame on you. Fool me twice, shame on me." We won't be fooled again.
I do live by that adage. I didn't buy a house during the housing bubble. I knew it was a bubble and it would burst eventually.
Actually I knew it was another Wall Street pump & dump scam, just like all the other Wall Street pump & dump scams over the past 8 decades, like the dot com pump & dump scam of the 90s, the stock market pump & dump scam of the 80s, etc.
Yea, they do one about every 10 years. Pretty consistent.
And yes it wipes out lots of dumbasses who forget history, forget what happened before, and get screwed all over again.
I didn't lose a dime in the housing bubble. I came thru it unharmed.
I have no sympathy for you dumbasses. Get wiped out. You deserve it.
By the way, sovereign debt is the current pump & dump scam.
But this one is the last pump & dump scam. It all comes crashing down when this bubble bursts.
I hear you and you are, definitely, singing to the Chior.
I actually benefited from the sub-prime debacle in a way. I bought a house in 1989, in the ghetto, for $32,000 lived their for 14 years and rented every room so my roomates could pay my mortgage. I couldn't believe I found a buyer for the house, in 2003, for $90,000. The fucking house was right next to a fire station and, let me tell you, the sirens got a hell of a lot louder over those 15 years.
Without the bubble and the ocean of flippers I would still be living between a fire station and a heroin dealer.
After I sold that POS I bought a house, 20% down, in 2005 for $135,000 three blocks from the local University in a tight, little, very desirable enclave by the river. Here is the assessment data from my city's website.
2013 $135,000
2012 $146,000
2011 $152,000
2010 $152,000
2009 $152,400
2008 $152,400
2007 $152,400
2006 $131,600
2005 $128,200
It looks like I am back to square one but, at least the house is assessed for what I paid for it. I have it rented and clear $300/month after PITI payment.
I kinda wish I would have just banked the money but, I probably would have pissed it away in the market by panicking when Lehman fell.
The only really bad thing is liquidity. It is hard to sell assets so I am stuck renting the house until the inventory drys up, which won't happen as long as Shalom Bernanke is buying MBS. He's a Fucktard
"If it was tied to GDP it would be shrinking since GDP is shrinking. That would be deflation. Shrinking money supply."
And who measures GDP?
They'd just "substitute" something to make the number always positive. TPTB don't stay up unless they float on Ponzis and Bubbles.
Yet another day of the "Federal Reserve Follies". This tragicomedy is beyond FUBAR.
Nothing new from Bernanke.
The FED is way overleveraged, which is why they only can shuffle their portfolio around via TWIST.
The US military arresting all the bankers and politicians would be so awesome.
Now the market loses couple of points then they want to ease! This is so fucking pathetic
This is massive stupidity.
The only way the Fed can create money is by buying something that already exists.
So, they create money by buying bonds, stocks etc, via Primary Dealers hence by removing from the market those bonds and stocks, hence by having primary dealers owning these bonds and stocks.
So, the only way to create money is for the Fed to have primary dealers keep buying and buying and buying. Theoretically, they can do that until they buy all the stock market.
Since, Primary Dealers controls 75% wealth in the country, I'd say it is not theoretically impossible that we wouldn't be far from the point when Primary Dealers buying the whole S&P and the whole bond market. At that point, the Fed CANNOT create any more money and the world can officially be called:
United Socialist States of the World.
No more Cocainated Easing until S&P at about 800-1000. Get used to it!
Hypocrisy..paragraph 16...banks aren't making loans because, SURVEY SAYS, "borrowers aren't qualified"...Never mind that the cumulative economic policies make parking in treasuries irresistible to banksters vis-a-vis taking a flier on tax and bureaucratic muck a few years out
Bernanke has said absolutely nothing new in this letter w.r.t. QE3 timing.
There is 0% chance the Fed will QE3 before a stock market crash, because inflation expectations are too high (see chart at following link which shows past QE timing relative to inflation expectations):
http://www.zerohedge.com/news/definitive-qe3-odds-calculator#comment-2735114
Instead Bernanke (and also dovish member Evans yesterday) again reiterated and telegraphed what is coming Sept 13:
http://www.zerohedge.com/news/fomc-minutes-indicate-no-shift-feds-views#comment-2728458
Evans' quote:
http://www.reuters.com/article/2012/08/24/us-usa-fed-evans-idUSBRE87N01320120824
Bernanke buys Eleventy Trillion in bonds MBS and we (the Treasury) get to pay interest on the debt? For the next 30 years? Now how is that supposed to help the ecomony?
Soon the Master Khazarians will demand to purchase 1,000 year Treasury notes to inslave tens of generations.
Now we know how you felt under the Egyptian thumb 4000 yaers ago!
LET MY PEOPLE GO!