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Fed Minutes: "Few Fed Members Said More Stimulus Would Be Needed"
Just because Bernanke did not explain everything in the post-FOMC conference, here is more:
- A FEW FOMC MEMBERS SAID MORE STIMULUS WOULD PROBABLY BE NEEDED
- SEVERAL ON FOMC SAID FED SHOULD STUDY `NEW TOOLS' FOR EASING - C5 Galaxy??
- FOMC PARTICIPANTS SAW MODERATE GROWTH LIKELY IN COMING QUARTERS
- FOMC AGREED `IT WAS PREPARED' FOR FURTHER ACTION AS APPROPRIATE
- FOMC SAW `UNUSUALLY HIGH' UNCERTAINTY FOR JOBLESS, GROWTH
- SEVERAL OTHER FOMC MEMBERS SAW ACTION NEED IF ECONOMY WORSENS
Well, more stimulus was needed, and we got it in the form of Operation Twist 2. Nothing new, but algos need their flashing read headlines.
Here is what is spooking risk:
a few saw inflation risks as tilted to the upside; they generally were skeptical of models that rely on economic slack to forecast inflation and were concerned that maintaining the current highly accommodative stance of monetary policy over the medium run risked eroding the stability of inflation expectations, with a couple noting that large long-run fiscal imbalances also posed a risk.
and this on Treasury market dysfunction:
Some members noted the risk that continued purchases of longer-term Treasury securities could, at some point, lead to deterioration in the functioning of the Treasury securities market that could undermine the intended effects of the policy.
and On China:
The main factors cited as underlying the elevated uncertainty about economic outcomes were the ongoing fiscal and financial situation in Europe, the outlook for fiscal policy in the United States, and a general slowdown in global economic growth, including the possibility of a significant slowdown in China.
Which caused this reaction in markets:
Full minutes wordcloud:
And here is the full thing:
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Oh Snap! "A FEW?"
Ben, that clicking sound that's replaced the bang means you're out of bullets.
GOLD uncertain, S&P going down, EUR/USD down, USD/JPY up until next US elections.
Never really understood the reason to have FOMC meetings and the subsequent suspense. Bullshit upon Bullshit and more Bullshit and yet more Bullshit.
C5 Galaxy?
It is my duty to inform that if they're wanting to do some serious lifting, they're going to need some bigger planes.
http://blog.kievukraine.info/uploaded_images/5571-743924.jpg
Bernankov An-225 MriyaDon't you think Zimbabwe Ben and the Magical Money Printing gang owe it to the public to use American planes? Buy American dammit!
When you understate consumer goods price inflation by 4% and 2% GDP growth is actually 2% GDP contraction in real terms, then you can surprisingly get a zero job growth "recovery".
http://www.shadowstats.com/alternate_data
New tools for easing? Someone should introduce the Fed Board to glycerin suppositories. They can test it out on each other.
Who could downvote that? Hilarious.
Ben surfs this site, and the other person was MDB
I'm suprised these meeting minutes aren't accompanied by carnival music....du du dududududududududu
Or at least Canadian products like the Potus
With a payload of 500000 pounds, Ben would need 44 of those to transport just 1 trillion in $100 bills.
Who takes one hundred dollar bills except a bank?
Who takes one hundred dollar bills except a bank?
Lots of places..............filled your tank lately?.15gals will eat most of a C note.
I bought two soft drinks at a QuikTrip, and gave them a $100.00, no prob.
what planet are you on? $100 are the new $10.
Looks like the 'currency molesters' will be seeking some more stimulation...
Ben now just hiding behind a rock pointing his finger yelling *BANG BANG*!
how many fed members just gave up?
That's what I wonder. It's not that they can't do QE3, it's that we're past the point of diminishing returns and the next bite will cause us to puke it all up.
The comments Tyler posted and "A few" says there isn't much support for another round.
garballygook....even the bonds don't like the damp towel treatment after their happy ending....
This is how it goes
Joe: Hello?
Tom: Hello Joe. Feds called...Hit Gold.
Joe: I'm trying
they done nailed the miners though... NUGT ouch....
3pm float up levitation brought to you courtesy of TeH FeD behind-the-scenes flow with HFTs. Nice.
bondz bitchez
What can they do? they've exhausted their toolbox and everything has failed.
They are not out of bullets, tools, or ink.
The "additional stimulus measures" that were mentioned are outlined here: http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
If they aren't about out of tools, why would they have this statement in the minutes, immediately before the discussion on policy action?
"Several participants commented that it would be desirable to explore the possibility of developing new tools to promote more-accommodative financial conditions and thereby support a stronger economic recovery"
It would appear that their bullets have deteriorated from lead to rubber, in a manner of speaking. All they can do is excrete debt. They keep saying over and over again the government needs to accept more debt from them ASAP.
other highlights:
A number of factors continued to be seen as likely to limit the economic expansion to a moderate pace in the near term; these included slow growth or even contraction in some major foreign economies, ongoing and prospective fiscal tightening in the United States, modest growth in household income, and--despite some recent signs of improvement--continued weakness in the housing sector
Moreover, recent adverse developments in Europe and tighter domestic financial conditions led the staff to revise down somewhat the medium-term forecast for real GDP
strains in global financial markets, which stemmed primarily from fiscal and banking concerns in Europe, had become more pronounced over the intermeeting period and continued to pose significant downside risks to the economic outlook; the possibility of a sharper-than-anticipated fiscal tightening in the United States also posed a downside risk
Participants expected that fiscal policy would continue to be a drag on economic growth over coming quarters. They generally also saw the federal budget situation as a downside risk to the economic outlook: If an agreement was not reached to address the expiring tax cuts and scheduled spending reductions in current law, a sharp tightening of fiscal policy would occur at the start of 2013.
The possibility that U.S. fiscal policy would be more contractionary than anticipated was also cited as a downside risk
Some members noted the risk that continued purchases of longer-term Treasury securities could, at some point, lead to deterioration in the functioning of the Treasury securities market that could undermine the intended effects of the policy.
A few members observed that it would be helpful to have a better understanding of how large the Federal Reserve's asset purchases would have to be to cause a meaningful deterioration in securities market functioning, and of the potential costs of such deterioration for the economy as a whole
A few participants indicated that they were seeing signs that very low interest rates might be inducing some investors to take on imprudent risks in the search for higher nominal returns
seriously... what does a 'fed toolbox' look like? how much does it weigh? and do you need a 'special trade' ?
I don't think there's enough room in a C5 for all the $100 bills that will be needed this time around.
http://www.npr.org/blogs/thetwo-way/2012/05/09/152328255/indian-court-bl...
As luck would have it the "Exxon Valdez" is still available...
Well...there a few C17 Globemaster III that might be available.
And the Russkies might help out with an AN-225 Myira six engine beast or two (saw one takoff once). After all, the Russians are our conduit to the international space station.
But I suspect your point would still hold true....
MOPEMOPEMOPEMOPEMOPEMOPEMOPEMOPEMOPE
NOPE.
Edit: What do you want to bet the "new policy tools" include dumping the money the banks are holding at the Fed onto the market?
But wait. That money is mostly comprised of money the Fed gave the banks in the first place.
Can they do that?
/sarc
ZImbabwe here we come
But our QE is sterilized, or haven't you heard?
Looks like we might breach EURUSD 1.22 this afternoon.
WHAT are they being served for lunch?........CRACK?.
mr. market is not happy
http://www.youtube.com/watch?v=-al3di1yQLY
This almost sounds rational:
The bulls will find something to hopelessly grasp onto by 3:30.
their own balls? /hoist on yer own pertard/
Hilsenrath will weigh in with his take that QE3 is imminent.
Translation: We've hit the wall!
Oh shit! I forgot to BTFD!
LOL
Please tell me the patient is ok! Please! All he needs is some vegetables. And he'll be tap dancing his way home.
I little sip of Gatorade, and this comatose patient is set to win the NYC Marathon!
It has electrolytes!
Fuck these fuckers.
"Stimulus" has done nothing for the common man.
Public hangings on Pay-Per-View.....Madoff, Peregrine, MFG, JPM, Goldman Sucks (balls), etc.
people will throw down for that!
SET AN EXAMPLE!
lol, totally solve the budget issue. for like five minutes.
I thought the Reagan years already proved that to everyone. Just shoot the hostage and get it over with, my God...
Dude, I bought, like, 20 oz of silver with mine.
Just have the helicopter do direct drops at Jamie's House
Desperation
Thick as pea soup......
We need financial innovation again.
"unusually high" uncertainty. Try living in the fucking world you created Bernanke you cocksucker. How you die real soon
Azzhatter,
you forgot lazy, stupid, crooked, sadistic mother fucker..... right after 'you'....
Pardon my Greek....
Don't buy any Eeffing dip, get the F out. It's a global problem, not just a USA problem. Keep whisteling past the graveyard. Lest you forget the M2 report already?
blah, blah, fucking blah,
"More stimulus to promote leech fuckery.
"we need more people working"
"We have a big tool box, don't make us whip out our schmeckle"
Samson killed heaps upon heaps with the jawbone of an ass, Benzoid killed an entire planet with one.
Schmeckle LOL
Never understand why these minutes can move the market. Bernanke had a press conference and said the exact same thing after the meeting. Why would the idiots think the minutes would contain anything we didn't know already?
Captain Obvious, and the 11 undecideds.
What a bunch of rubes.
Fucking retarded gang of criminals
This shit reminds me of my parents and myself....
"IF I HAVE TO STOP THIS CAR!"
"DONT MAKE ME COME BACK THERE" (despite the fact that the kids know full well you are so morbidly obese you couldn't begin to fit in the backseat)
You can just see Brian Sack trying to keep the market still....bidding everything that walks....
You only have to follow through on that threat ONCE and then it's all good.
The FED's problem is that short rates are holding steady.. while long rates are falling. The treasury curve is flattening.
Can't go NIRP unless short rates start collapsing.
SHORT SQUEEZE......time for it....like clockwork.....someone will ignite the futile rally again and again....
here it comes...
C5-Galaxy is their only hope.
We flew 500 pigs on a 747 to China the other day. Pigs can fly!
We flew 500 pigs on a 747 to China the other day. Pigs can fly!
First class, or Coach?
please please. can we STOP USING THE WORD "STIMULUS"!! its not stimulative. Nothing about it is except asset prices. The only thing it stimulates is big bonuses for corporate insiders and hedge fund managers.
It stimulates anger and rage. That counts, right?
Well, they´re leveraged 60-1 against their capital so what are they to do? Drop cash out of black helicopters? Heh. They can´t do jackshift. It´s up to others now to save the world.
little to no fear in this market ... that means we have alot farther to go down imo.
So basically 'Get on those oars peasants and ROW FASTER dammit! ROW!!'
fomc always "prepared"....too funny...wall street kids can continue to run amok at the Moral Hazard Inn...dont worry papa ben will pay the tab for the empty mini bar fridge and broken windows.............
I have no money left to BTFD. Should have bought some food............
RE: Inflation risk
They had better take inflation risk seriously. THe heat wave is sending grain and other food commodities skyward. If they initiate more money mayhem, the high cost of food could go ballistic.
The only way to make money trading this market is to think like the stupid fucking morons managing billions of dollars who are basing their investment philosophy on the idea that the fed is going to do more QE when the market is 5% off its highs and up 6% YTD.
What a scam.
The Fed is using a so-so economy to justify their real aim; more printing to keep their Red Queen inflationary machine on the treadmill.
They could care less about employment.. I think they're real concern is figuring out how to prop up the fiat game to preven serious reconsideration of going back on a metal standard that would undercut their ability to play god.
Time for The Bernank to don a sombrero and go back to slinging burritos at South of the Border. His economic theory -- that inflating asset prices would lead to sustainable economic activity -- is a failure.
These clowns know that they can do this a couple more times at most before even the most deluded permabull notices that nothing changes in the real economy as a result. Nonetheless, the permabulls couldn't care less about the facts so long as they make a quick 10%
Is it time yet? Come on PPT we are down !%!
And JPM stays in the green, again. Wow
Humans on Earth are fucked.
But the humans in the Sirius Star System are waay better off.
Bernank must have came thru and threw a down vote tantrum!
A summary of the Fed's predictive abilities
"sub-prime is well contained"
They will now fractionally reserve their assets to lower the value of the dollar. Pento thinks they might have no deposit requirements. These two things will bring the last leg of the destruction of the Fiat Ponzi.
Take back your right to hold sound money. On Friday the 13th....
BUY SILVER!!
Well, the FED is leveraged 60-1 against its own capital which is why it has been shuffling its portfolio from short to long lately. Everything is about keeping up price of debt and thus interest rates down. They can´t really say much so they have this empty rhetoric of "new tools". It´s way past its prime and probably heading for the dustbins of history. By now it´s basically a dumpster which has received worthless crap from financial institutions. Meanwhile, the govt has been doing great in TARP recovery. I think it´s in some profit actually. Obviously the market considers the FED a transitionary entity but not so the government.
The SAME two: Williams and Evans. NONE of it will work. Even FNMA MBS were shock for a moment, then wise up.
http://confoundedinterest.wordpress.com/2012/07/11/fomc-minutes-and-lonesome-doves-market-feels-a-letdown/
Ron Paul gets to be right, and live, because he won't be installed as the executive in this lifetime.
The Fed will drive the Tbill yield rate to zero and keep buying bonds...
What other option is out there...???
Negative rates! Then we make money by spending!
Olny thing missing from the Minutes is "at what strike price is the Bernanke Put?"
Portfolio managers have been talking "earnings and cash on balance sheet" as reasons to buy equities. The shills have now changed to "The Fed will apply QE3 anytime the markets dip below ES 1300. So look to buy into slippage".
BEHIND CLOSED DOORS:- STUDIES SHOW THAT A NEW PROGRAM OF ASSET PURCHASES IN THE FORM OF MORE TWIST WILL NOT WORK AS THEY ARE NOT BUYERS FROM THE 0-5YR TENOR EVEN LONGER MATURITIES THAN THAT AND CHINA HAS SAID ALREADY GOODBYE TO THE TREASURY...THE ONLY WAY FOR THE US TO GET OUT OF THE CURRENT MISERABLE SITUATION IS FOR THE FED TO PRINT MONEY FOR REAL...AND BELIEVE IT OR NOT THEY WILL DO THAT AND THEY KNOW IT