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Fed's Fisher Comes Clean On Moral Hazard and 'Twist' Ineffectiveness
While Fed's Lockhart earlier opined on his 'hope' that rates will drop under 'Twist' (and we remind him that all but the 30Y are now higher in yield than before Twist was announced) but expects its impact to be modest, Fed's Fisher just lost-the-plot with his truthful explanation on why he dissented. Speaking in Dallas, Bloomberg reports some rather refreshingly honest headlines from the outspoken Fed President:
*FISHER SAYS FED POLICY `HAS YET TO SHOW EVIDENCE OF WORKING'
*FISHER SAYS BENEFITS OF OPERATION TWIST DON’T OUTWEIGH COSTS
*FISHER SAYS RECENT FOMC POLICIES LIKELY TO BE INEFFECTIVE
*FISHER SAYS FOMC POLICIES MAY WORK AGAINST JOB CREATION
*FISHER SAYS OPERATION TWIST WILL INCREASE INCENTIVES TO SAVE
And as we noted vociferously in the lead up to the decision (and hence a focus on 2s10s30s):
*FISHER SAYS BANKS' EARNING POWER WILL COME UNDER ADDED PRESSURE
*FISHER SAYS TWIST TO EXPOSE FED TO LOSSES WHEN RATES RISE
And the piece de resistance (summarizing everything):
*FISHER SEES `MORAL HAZARD' IN BEING OVERLY ACCOMMODATIVE
*FISHER SAYS FURTHER MONETARY ACCOMMODATION `PUSHING ON STRING'
Source: Bloomberg
We are sure he will be off Bernanke's Sunday afternoon tea-and-cookies invite list but perhaps we are seeing some sense of for-the-people as opposed to for-the-banks guilt (though worrying over bank earnings sends a slightly different message).
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They're finally gettin' hip to how Biflation works
Benflation?
haha...love it!
Acronyms explained:
FOMC = Fuck Over My Country
which dovetails nicely with
FASB = Fuck America, Serve Bankers
Inflation in all the wrong places. check.
Deflation in all the wrong places. Check.
Why yes, yes it is biflation, 100% without a doubt.
Keep it up ben, im counting on U.
Fed launches Black Hawks and B-52's
Scorched Earth Policy... Risk ON
Get back in there and Buy Buy Buy
Pump gas under $3 would be a big boost to the economy, but this bullshot they're playing around with the prices won't fall or help anyone, just one example.
Now they say their own policies will not help job growth? Well fuck be them because thats one of their mandates and really all that matter this election cycle.
Fucking jack Offs. But the Dow is definitely up over 300 pts, that's all that matters right?
1. Twist shit tube.
2. Spread on sandwich.
3. eat it.
Fuck you FED..
OK smart guy. Take a really deep breath and try looking at the big picture, not just US but the whole global financial Kabuki we are in at the moment. The current European banking situation. China's housing bust, plus all the hidden debt on municipalities books. Japan's state of economy and banking. All the shadow system and now since you have the BIG picture of the situation and future projections, give three effective solutions (examples) what Bernanke should do next:
1.
2.
3.
And now FED kindly replys: thank you.
1) resign and admit that his mistaken following of greenspan's polices have in fact caused the crisis
2) stop looking at the stock markets
3) INSTEAD OF THE FOCUS ON MONETARY POLICY, USE THE FEDS REGULATORY ROLE TO ALTER THE SYSTEM SO THAT monetary policy is more effective. come out against hft, come out for position limits on commodity speculation, come out for a strong consumer financial protection agency, come out in favor of a strong volker rul or even glass stegall. stop being a slave to the big investment banks, and realize It's the commercial banks stupid!!
1. QE 1
2. QE 2
3. QE 3
in other words
1. Buy
2. Buy
3. Buy
In other words
1. Counterfeit
2. Counterfeit
3. Confetti!
1. Resign
2. Walk to the roof of the Eccles building
3. Jump You Fucker
1. Global Debt Jubilee
2. Seize all assets of the crooks responsible (anyone who ever received a bonus from a TBTF institution, Angelo Mozillo and friends, every fucker that voted to repeal Glass-Steagall, all Federal Reserve shareholders, Obama, Chimpy Bush, Clinton, Daddy Bush, Reagan's estate, all Federal Reserve employees at middle-management levels and above, MERS, crooked mortgage servicers, Immelt, Jeethner, Summers, Rubin, Emmanuel, CNBC, any others I may have forgotten), along with all assets of the congressional retirement system, and use these assets to partially rebuild the pension funds wiped out by the debt jubilee.
3. Jump you fuckers!
Inducing a flat yield curve and a causing a recession might be bad for jobs?? Who would have suspected that? The real question is what else are they doing we can't see which made them think they had to lower monetary velocity with this idiotic plan?
not one single fed program has in fact lowered long term yields. it's what they say to get the sheep to buy in. You think the bernank doesn't know this. Maybe it does in some academic paper that doesn't work in the real world. But al you need to do is look at the programs and the yield curve.
all well and done...however has he said what "HE" would do????
So Fisher has eyes and ears? Any human with any world knowldege knows that! I do give him credit for taking the road only travelled by dead men.
Fisher = one person.
the fed exists to guarantee the holdings of the wealthy at the expense of everyone else.
Indeed. It is obvious the banks "got theirs" with unlimted 0% credit. Screw everyone else. No need to address any of the problems the banking system created in the rest of the economy.
Be more specific than just the 'wealthy'. The Fed is the front for the banking families, the military industrial complex, and the shadow masters. Just having money doesn't put you in the club. It's much smaller than that...
edit: uber-wealthy (although they benefit the merely wealthy as well)
I don't get it. Why would a Fed president be saying things like this? Even if it's all 100% true, I don't see the point of this talk outside the shadowed crypts of the FOMC.
Wouldn't The Beard just call the guy on the phone and say "STFU you cretinous pencil neck" or words to the effect?
And aren't these all bankers? Don't they lust after all the same things, day and night, without end nor joy? Aren't these the most duplicitous, greedy, self-absorbed, bottom-sucking creatures in the world? Why all the oh-i-am-so-worried hand wringing from a banker?
I just can't shake the feeling that we are being played here.
@fyre---thats because the fed is washing their hands of this mess. as i have posted before, they know qes and twists are not doing a thing to boost the economy--so why exacerbate the mess with hyperinflation? things are stable--crappy but stable--and the market is staying afloat. what benefit comes to the fed from printing? nothing good whatsoever. as far as the fed is concerned, its in the politicians' corner now.
Part of the plan to deliberately crash the markets, create an obvious crisis and have Obama ride in like the knight on the white horse and save the day. All the criticism dies away and Bernanke prints to infinity. Happy days for the big boys, not so much for the rest of us.
If it's not working it has to be doubled (at least)! Positive for equities!
If it works against job creation, O'bummer can create another "jobs package" and throw some extra tax cuts. Positive for equities!
Banks' earning power coming under pressure? Let's bail out the banks again! Positive for equities!
Where are all these POSITIVE things coming from? Man, i need a longer ruler to make my year end S&P forecast.
OPERATION TWIST WILL INCREASE INCENTIVES TO SAVE
Is "Last Comic Standing" still on the air here in the states?
I think we just found our hands-down winner if it is.
That one-liner is just too fucking funny.
Exactly. How does lowering long term interest rates incentivise saving?
Only the brilliant PhD's know the answer to that. But if they say it's so it must be ABSOLUTE truth.
Uncalculable conditions with no sensible hope for interest gain leads to players leaving the poker game - taking their money with them. ie "I don't know what the heck is going on - so I am going to duck and cover because taking the risk of spending/consuming during an unprecedented in my lifetime econoquake is nuts...I'm just gonna keep my money to myself." The invisible hand meets Galt.
For fun, go on Youtube and look at the stacks and stacks of safes that emerged from the wreckage of the recent Fukushima tsunami. There's your savings increase phenom.
Twist was supposed to direct cash flow into Real Estate
Instead cash is flowing into "recession proof" dividend stocks
"Bubble Bubble Toil and Trouble"
yes, yes, dear god yes....I want to save and save and save at zerO point shit percent rates!!!
(dup)
Agree with Fisher 100%!
http://confoundedinterest.wordpress.com
No more Weekend at Bennie's for the Fed's Fisher!!
Another rat jumping off the HMS Bernanke.
Where was the "blunt honesty" when it was important?
Disingenous fuchole!
I just see good cop - bad cop thing going on.
Played perfectly.
Dont forget that this is all about moving blame onto Washington.
The politicians are set up for the fall. The fed tipped it's hat to this shift long ago by mentioning that it wont do much unless it is forced to.
Op Twist was designed to have minimal economic impact.
Remember... Financial crisis = sovereign crisis = political crisis = currency crisis. This process hasn't changed from day 1 and is still holding true.
Memeplanting, plain and simple.
It's coming, or rather, IT"S COMING!!!!
ORI
Mauled and Gandhian Tales
Increase Savings...yeah PM saving....buying all I can..when I can...
Can this guy be turned in to the FED.criminal.bankster website?
Yeayyyyyy! Someone else to join us on the hit list! And he seems important too!
And here's what he also sees:
Rays of sunshine and HOPE! Fellas, we're baaaack!
Not too long ago I saw rays of sunshine and felt hopeful...but as it turns out, I later learned that it was just a bad batch of LSD.
Now I'm well again. I quit hope and I've never felt better.
Looks like I picked the wrong week to quit dropping acid...
http://www.youtube.com/watch?v=VmW-ScmGRMA
Rays of sunshine on green shoots, all that's missing is fertiziler. Oh wait...
Bloomberg will now conduct an investigation to confirm that this is NOT a hoax and that Fisher is in fact a member of the Fed.
Press release should be made available tomorrow.
BBC World Service
Possible euro debt solution: Partial Greek default, $3 trillion bailout
Marketplace Morning Report, Monday, September 26, 2011
Listen to this Story
Reports are leaking out of Europe today that a possible large-scale plan to solve the debt crisis in Europe is taking shape. The plan could include a multi-trillion dollar bailout.
http://marketplace.publicradio.org/display/web/2011/09/26/am-possible-euro-debt-solution-partial-greek-default-3-trillion-bailout/
Gold and *Silver are going back up.. sooner than later.. buy low sell high! dont be a sheep!
$3 trillion in paper printing equals?
Dilute the Euro.. to then Dilute the U.S. Dollar because the stock market dropped 25%.. equals? how much?
I think they need to keep beating on Gold and *Silver.. so that they dont blow the roof off the building when these idiots start Printing / Passing out trillions to wall street, again!
Thank God for the Job creators doing ALL THAT GOD's WORK!!
http://www.youtube.com/watch?v=f8X_Ne9ohC0&feature=share
Bemular - Stuff That Sucks v.1 (The Great Depression II Anthem)
Fisher has been wrong about everything since the beginning of this crisis.
Serious question:
What are the consequences, if any, of the Fed losing money on its holdings? If they can just create money out of thin air, why would they even care if they lose money on some of their "investments"?
I can't for the life of me see any scenario in which the Fed could liquidate its holdings without losing money. But would it matter? Would the taxpayers have to foot the bill for those losses? Once they start selling and interest rates start rising, all those MBS' and TSYs are bound to lose value as the market begins to sell into the new trend.
I'm asking this because I want to try to anticipate and prepare for what appears to be an inevitable bursting of the debt bubble.
What Fisher said is infinitely more significant and newsworthy that what Mr. Trading System Rastani said.
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