This page has been archived and commenting is disabled.
Bullard Says FOMC Minutes Are Stale
Following yesterday's FOMC minutes we suggested that the minutes are, all facts considered, extremely stale, especially when one actually observes the surge in all economic indicators (or should we say seasonal adjustments) since the last FOMC meeting. Moments ago, on CNBC, non-voting St Louis Fed president confirmed just that.
- St. Louis Fed President Bullard says FOMC minutes “are a bit stale”.
- Says some data stronger since FOMC minutes
- Doesn’t know where FOMC will come out on easing
- Says “different constellation” of data vs 2011
- Says “not sure” data warrant big FOMC action
- Says U.S. unemployment “very high”
- Says “we’re not going to react” directly to stock market
In other words, the FOMC minutes do not reflect the economy, but the Fed does not care about the market which just happens to be at 2012 highs, as it does not reflect the economy either, but instead reflects merely what the FOMC thinks, which in turn reacts solely to the market.
Get it?
Bullard also says, via BBG:
- Possible QE3 could complicate exit strategy
- "Very worried’’ about European “common market” idea
- Only so much that ECB can do
- Quantitative easing may be warranted in Europe
- Earlier: Bullard Sees 80% Chance Congress Will Reach Financing Deal
Sure it will: if the market collapses and lobbyists and backers demand immediate action. There will be NO deal if the S&P continues to be at 2012 highs.
»
- 4382 reads
- Printer-friendly version
- Send to friend
- advertisements -
Bullshitard says: "Gotta make precious metals stop making us central planners look like the idiots we are!"
Of course the Fed doesn't care about the levels of the market....they're the ones jacking the levels up.
Dude....you totally can't just come out and just say that!
<del>
Ok, I am confused, should I or Should I not buy this fucking dip?
If it's sour cream and chive, I'd go for it!
Just stay away from the brown hummus......it's not poison.....it's just bad hummus.
Why take a bad trip when you don't have to?
Yes.
just stack. slowly. relentlessly. methodically. call it "saving". look it up, the word used to exist.
there is an economy somewhere that can convert savings in productive investment. sometimes this somewhere is in the future.
'Pay no attention to that man behind the curtain!'
Jackson Hole will be interesting. How can they spin it?
With the new QE priced in a few times over plus the comeback rally yesterday, it will be interesting how they gently let the market down, again.
"We've got to do something about this persistent unemployment!"
<shovels money out discount window, buys bad MBS, hoovers up the lost home for little shares that couldn't>
With a "dual mandate", there's always something to do.
Hey Tyler can you please translate the bloomberg article on the SEC and money market funds that just went up?
Before the Great Depression…
8 years of steady stock market growth
Low unemployment…
No bank failures
No mortgage foreclosures
Europe in good shape
Manufacturing jobs were plentiful
Dollar value was high
When we crashed we took Europe down with us and it took 13 years and WWII to get out of it..
Today we have
High unemployment about 20%
Banks are still failing
The stock market looks like a yo-yo
over 2 million house foreclosures
Manufacturing jobs are gone
Dollar isn’t worth shit…
Eurpoe on the verge of collapse..If they go we go…if we go they go
There is nothing in our future that can bring about any change for at least 50 years…
welcome to the new normal..
We are 100 times worse shape than during the Great Depression..
http://investmentwatchblog.com/us-economy-worse-than-europe/#.UDYY3EWe6CN
Give me two years and 100% authority and I would turn the economy around in two years max. Not a problem.
1. Bankruptcy.
2. 100% fractional reserve banking.
3. National bank restricted to weights and measures.
4. Money backed by silver.
5, Free floating bimetallism.
6. Federal government restricted to 10% of the GDP.
7. End all federal entitlement programs.
Hang central bankers, jail politicians.
Done.
You'd still be in the depths of a massive deflationary spiral two years in.
To think you could rejigger an economy this big in that short a period of time shows a profound lack of understanding.
Tell the truth: you live in a condo and drive a German car.
"You'd still be in the depths of a massive deflationary spiral two years in".
Great. Let's get it done and over with. It's called a CYCLE. The Fed has been trying to prevent a natural CYCLE occurring, which is why, when it comes, it will be worse than it would have been.
You've been brainwashed into thinking we have to have inflation - that's what the Fed et al WANT, it keeps the Ponzi going.
DavidC
No, I'm just not so dumb as to make grandiose statements about how long we would need to suffer in order to get through to the other side of your "cycle".
I would love to see exactly what kind of "growth" could occur under bimetallism, but even when the answer comes back "precious little", most will not be swayed any more than the next cultist.
That would be "real growth".
The permanent growth meme has no relevance to an economy with sound money, one that must actually produce more than debt and inflation year over year to acheive "growth".
I prefer sound money and low growth to blatant theft and infinite "growth".
Why the fuck is there such a lag between the Fed meeting and minutes being released in the first place?
Before the information can be distributed to the unwashed masses such as ourselves, the information must first be disseminated (pardon the pun) to the 2/20 "white shoes" (again, pardon) crowd by an antiquated system of male teen gigolos and old cocaine contacts which involves a certain "latency".
i took it to mean "whoever writes this stuff sucks ass" myself. "there's no zip here. GO GET ME WRITERS! I NEED WRITERS NOW!" now that the Fed must have a public persona i imagine such criticisms are an outgrowth "of the new reality of being Fed Star" as well. you must demand....only the best. AND GET IT! of course "Diva" and "Fed People" sure doesn't sound healthy to me...just sayin' of course. Who was that guy who was a girl who used to hang out here oh so many years ago? She/he was a Jackson Holer/Fed person wasn't she/he? Why am i all of sudden worried...
But of course the FOMC minutes are fresh enough to shoot the DOW straight up or down whenever it's convenient.
Everytime they say "no easing" it only means they just wrote some giant checks to someone they had not planned on writing.
If the ECB prints enough, the Fed must follow or the equity markets will crash. Right now, the Fed is lagging the ECB. I think you can weigh the odds of more QE based on the EUR/USD. If it continues to rise, the odds of pre-election QE are high. That said, I think it will take the form of more MBS purchases from Fannie/Freddie, rather than an accelerated purchase of Treasuries. The Fed is already in a hole of interest rate and asset deflation risk, and it looks to dig deeper.
Let me write the damned thing:
It was the best of times, it was the worst of times, break out the guillotine and let the good times (and heads) roll bitchez! [/a tale of twelve bankers]
Like killing roaches with a BB gun; they breed to fast.
Make em work in a sweatshop making flip-flops with no AC or picking vegetables in 100 deg F heat for life; monetize the TV rights.
It's like being a daily market reporter. You know who I’m talking about. Those people who provide deep fundamental reasons on an hourly basis for the market being up or down, only to find out the direction has reversed by the time their story is published.
Sometimes you’re forced to say something even when you have nothing to say.
hmmm,no QE poil go down economy get better on own/ QE, oil go up, people spend less, econopomy get bad. wonder how many times they need to keep doing this before they figure it out. But since it has nothing to do qith the economy, we know it's a lie.
jamie to ben. Ben my peeps are going to get a realy small bonus this year. Ben, don't worry jamie, a bit of qe will fix that
Bank of England’s report into the distributional effects of its asset purchases.
Extracts from Alphaville:
Yes, the Fed doesn't react to the markets (see jan 2008 and 75bp rate cute in response to Soc Gen unwinding Kerviels positions) - in the same way that TARP was really really going to help under-water homeowners.
Is it really REacting if the Fed caused it in the first place, or at very least knew about it all along?
ES now down almost a FULL POINT!!!
Wait...Never mind.
There's an old Wall Street saying "the market climbs a steaming pile of shxt" ....or something like that...
Bullard: "We are making it easier to take on more and more debt, how is that good?"
Although it makes sense it seems like the other Fed doves are winning.
The Fed's motto should be:
"Uncertainty. If Congress can do it and screw up the economy, so can we."
Throw in the individual Banksters & you got a three-way fight for everybody's fave: "Who da pimp? Who da 'ho?" OH, shit, I forgot the fucking lobbyists......that makes four. Four fo' da ho"
What's so hard to understand. The FRB waits and uses data that has already occurred just like the rest of us. It is only assumed they are so much smarter that they will act upon that data to make the right decisions. Lost upon that fact is that the FRB is reacting, not pre-emptively acting. They are the ones that are stale. And thus, their minutes, a product of a stale group, will by definition be stale.
Really? Is that why they are working so hard to manipulate it?