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Fed's Fisher Reluctant To 'Bail Out White House' With More QE

Tyler Durden's picture




 

It was not enough that the Fed's Richard Fisher was 'allowed' on CNBC this afternoon to expropriate himself and his merry-Fed-men from his 'fanatical' colleague nemesis Rosengren; but Maria B., for one glorious moment, asked a question so sensible it was stunning: "Is The Fed Bailing Out The White House?" The notably business-man-background Fisher was wonderfully heretical in explaining that additional stimulus would have little impact, that the Fed's action would indeed 'look political', and that "US lawmakers need to get their fiscal act together." While he doesn't see a high likelihood of a recession in 2013, he comprehends clearly the wait-and-see 'defensive crouch' that businesses are in given the huge uncertainty. On a slow day, with so much print-and-it's-all-fixed hope, the clarifying vision of at least one man on the FOMC is perhaps worth holding onto.

 

It seems CNBC's Department of embedded honesty did not like it - so here is the direct link...

 

 

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Wed, 08/15/2012 - 15:51 | 2707959 Meesohaawnee
Meesohaawnee's picture

if the fed werent we would be at SPY 1000.. nuff said.

Wed, 08/15/2012 - 15:56 | 2707991 Comay Mierda
Comay Mierda's picture

remove a zero

Wed, 08/15/2012 - 16:12 | 2708049 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Rates would rise.  Where would the investments go?  To dollars?  lol....

King Dollar!

The fake fiat, King of the Shit Financial Universe.

Wed, 08/15/2012 - 16:21 | 2708078 TruthInSunshine
TruthInSunshine's picture

Even if Fisher was sincere, he's not relevant, and has no seat at Bernanke's, Geithner's, or Chuck "Fuck Flyover Country" Schumer's* table.

 

*Charles Schumer, alleged elected "Representative" of certain U.S. citizens, but in reality, just a bagman for Wall Street & International Financiers.

Wed, 08/15/2012 - 17:41 | 2708362 AldousHuxley
AldousHuxley's picture

WTF do you call S&P500 rising over 10% since June '12?

 

they are bailing out Obama just in time for the elections....Fed will contract and markets will tank December.

 

also ECB helping out obama as well.

 

big hedgies loading up cheap euro equities or covering their shorts

 

but this is no secret.

 

 

 

Wed, 08/15/2012 - 20:18 | 2708778 GetZeeGold
GetZeeGold's picture

 

 

5 trillion spent on hope and change......I don't think it's gonna work. You did have a plan B right.......right?

 

Thu, 08/16/2012 - 01:37 | 2709154 Al Gorerhythm
Al Gorerhythm's picture

This has to be the most damning video of the Fed yet. That this CONMAN can sit straight faced in front of an audience, inform them that the Fed counterfeited money, STEALING THEIR WEALTH to stimulate the economy, is galling.

First he admits they bailed out the banks with cheap and freely printed money but that having not worked claims that the problem is now in congress' hands and they have to do SOMETHING, again, because the Fed has run out of tools. "We gave them plenty of cheap money to get this economy unglued", is in essence what he said. They PRINTED it. Counterfeited it. Undermined the value of saved and existing currency, illegally, corruptly, unconstitutionally, immorally, unjustifiably, criminally. They are thieves and rogues. They are the bane of our existence. 

He states that the Fed is non-political (sic). Remember why they are apolitical? 

  1. Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild. Central Banker.
  2. Damn. When will the peoples of the world GET IT?
Wed, 08/15/2012 - 16:57 | 2708215 max2205
max2205's picture

rates are rising...Ben has just pricked the TLT bubble...10 yr next

Wed, 08/15/2012 - 16:14 | 2708055 rocker
rocker's picture

That will never happen. Fisher did not mind bailing out Goldman, JPMorgan, BAC, DB, UBS, Country Wide, MS, FITB, and on and on and........

It's all Bushit. He does not tell how the FED is now monetizing the bad loan packages under the previous administation's banksters.

He did not mind the War being put on a charge card.  And NO, they should not bail out BAMBI either. Nobody should be bailed out.

It's just Bullshit that he takes sides. He is not suppose to. The FED is part of a Banking Cartel and is the Shadow Banking system

that has been in play for years to the benefit of Goldman and JPMorgan mostly. 

End the FED and then we may have a honest banking system.

The way it is now, both sides do it.  The difference is who benefits from it. Seems to me that the rich usually get richer either way.

Wed, 08/15/2012 - 16:19 | 2708073 Buckaroo Banzai
Buckaroo Banzai's picture

He's not supposed to take POLITICAL sides. The Fed got a bad rap in 1980 when they basically helped Reagan get elected.

Anyhow it doesn't matter because the banksters own BOTH SIDES. So why should the Fed bother to pick sides anyway? They can step back and relax, secure that everything is going to work out fine for them no matter who gets "elected".

Wed, 08/15/2012 - 17:19 | 2708288 LMAOLORI
LMAOLORI's picture

 

 

"Comay Mierda remove a zero

 

"By Zero do you mean obama or the SPY#

 

Wed, 08/15/2012 - 15:53 | 2707966 Neethgie
Neethgie's picture

The video you are trying to access is no longer available.

 

eh never mind just read it again

Wed, 08/15/2012 - 16:02 | 2708014 CClarity
CClarity's picture

Anyone else sick of CNBC's fiscal cliff symbolic crashing image and noise?  I thought it was very rude of them to keep playing it, loudly, while Richard Fisher was speaking.  Didn't like what he was saying?  Strange programming.  They really are amateurs there.

Wed, 08/15/2012 - 16:27 | 2708099 Buckaroo Banzai
Buckaroo Banzai's picture

Amateurs??? Hardly. They know EXACTLY what they are doing.

Disinformation: How it Works

Wed, 08/15/2012 - 15:53 | 2707967 catacl1sm
catacl1sm's picture

MOAR QE!

Wed, 08/15/2012 - 16:06 | 2708033 Cognitive Dissonance
Cognitive Dissonance's picture

"Please sir, I want some more."

http://www.youtube.com/watch?v=sZrgxHvNNUc

Wed, 08/15/2012 - 16:46 | 2708181 RockyRacoon
RockyRacoon's picture

I think Bernanke made it quite clear at his last Congressional hearing that the ball was in their court.  I can't understand why so many didn't see it.  Plain as day and articulated by Ben very clearly.   I guess the extreme degree of denial does not permit the money moguls to accede to the truth.

Wed, 08/15/2012 - 17:26 | 2708316 infinity8
infinity8's picture

I agree. It's like he needs to say "read my lips - no more fucking QE". And did he not look pissed off and biting his tongue when Chuck told him to get to work. In a country where things are run properly, he would have given him a piece of his mind.

Wed, 08/15/2012 - 17:42 | 2708367 LMAOLORI
LMAOLORI's picture

 

 

 

Seriously??  IMO bernanke's scolding was theatrics by speaking as he did he can reflect the blame for his destruction of the dollar and continued free money (IOR) for the banks-wall st. & obama.  He'll print it's a twofer.

Wed, 08/15/2012 - 15:54 | 2707970 catacl1sm
catacl1sm's picture

"department of embedded honesty". LOL!

Wed, 08/15/2012 - 15:55 | 2707980 SeverinSlade
SeverinSlade's picture

If the markets don't crash before November, they will surely crash the moment after Obama or Romney is declared the winner.

Martial law still seems increasingly likely prior to November, judging by the 1.5ish billion rounds of hollow point ammo that government agencies are purchasing.

Wed, 08/15/2012 - 16:00 | 2707995 Jlmadyson
Jlmadyson's picture

I mean really. What the freaking crap is that all about?

These people are crazy.

Wed, 08/15/2012 - 16:01 | 2708006 ptoemmes
ptoemmes's picture

From Wiki: The Hague Convention of 1899, Declaration III, prohibited the use in international warfare of bullets that easily expand or flatten in the body

Uhh never mind...damn technicalities.

Wed, 08/15/2012 - 16:29 | 2708106 ejmoosa
ejmoosa's picture

They will be for domestic use only.

Wed, 08/15/2012 - 15:56 | 2707985 Cognitive Dissonance
Cognitive Dissonance's picture

What's a Bro to do when Big Ben ain't got his back?

"Get China on the horn."

Wed, 08/15/2012 - 15:59 | 2707989 Jlmadyson
Jlmadyson's picture

But but but our prop desks need it so badly sir!

Wed, 08/15/2012 - 16:00 | 2708003 yogibear
yogibear's picture

CNBC had to remove the video, it might cause the market to react negatively. We can't have that type of talk.

 

Wed, 08/15/2012 - 16:01 | 2708010 Headbanger
Headbanger's picture

So when does the market crash start?

Wed, 08/15/2012 - 16:04 | 2708016 ParkAveFlasher
ParkAveFlasher's picture

If you need another reason to stack physical, imagine interest rates twitching upwards just a lil smidge.

Wed, 08/15/2012 - 16:05 | 2708019 centerline
centerline's picture

This is getting comical actually... knowing mathematically there is no way out.

"Getting thier fiscal act together" - hahahahaha.  In the current scheme of things this is about as impossible as it gets - and basically is the same things as saying "fuck you."  Now that's some funny shit folks.

Fed is going to make sure the politicians dirty little hands are all over the lever on the printing presses.

Wed, 08/15/2012 - 16:05 | 2708022 kaa1016
kaa1016's picture

Once market participants realize that the Fed is out of bullets and the ECB will not do an unlimited QE, the market repricing will be swift to the downside. But, until it happens, the market will drift around these levels with no volume.

Wed, 08/15/2012 - 16:05 | 2708023 Never One Roach
Never One Roach's picture

Stop giving banks IOR. Then banks would loan out and M3 (velocity) would take off. A wide open Fed window and fat IOR furnishes bansk little incentive to lend to private sector and create real jobs...real growth.

Wed, 08/15/2012 - 16:55 | 2708209 LMAOLORI
LMAOLORI's picture

 

 

+1

How Bernanke Can Get Banks Lending Again

By ALAN S. BLINDER

"The Fed's hostility toward lowering the interest on excess reserves is almost self-contradictory. When Mr. Bernanke lists the weapons the Fed plans to use when the time comes to tighten monetary policy, he always gives raising the IOER a prominent role. His reasoning is straightforward and sound: If the Fed makes holding reserves more attractive, banks will hold more of them. Why doesn't the same reasoning apply in the other direction?


But suppose it doesn't work. Suppose the Fed cuts the IOER from 25 basis points to minus 25 basis points, and banks don't lend one penny more. In that case, the Fed stops paying banks almost $4 billion a year in interest and, instead, starts collecting roughly equal fees from banks. That would be almost an $8 billion swing from banks to taxpayers. There are worse things."

in full

http://online.wsj.com/article/SB10000872396390444873204577537212738938798.html

Wed, 08/15/2012 - 22:03 | 2708445 TruthInSunshine
TruthInSunshine's picture

Blinder is the worst kind of imbecile; one that thinks he's intelligent.

 

Why the f**k would banks lend in this economy to anyone/any entity not having rock solid creditworthiness and rock solid collateral (both in absolute terms and as a % of the loan amount)?

Blinder claiming that reducing the interest the Fed agrees to pay banks on their massive, hoarded, stockpiled excess reserves will spur them to lend fails to address the minor point (/sarc) that there aren't many creditworthy borrowers banks want to risk lending to, and moreover, that banks are hoarding stockpiles of digital fiat provided by the Fed because they still have toxic balance sheets and asset spoilation, no matter how free a reign they get in marking their assets to crack-esque valuations.

As far as businesses, if they're credit worthy and have net positive assets, and preferably, are large and have a profitable income stream, they can piggyback off of The Bernank destroying the normal market pricing of borrowing money and simply sell debt in the form of bonds or other securities (privately or publicly) and their borrowing costs will be about 1/3 of what "banks" would charge them on the same 'loan.'

Wed, 08/15/2012 - 18:40 | 2708536 Papasmurf
Papasmurf's picture

You have to restore Gramm-Leach-Bliley first so the banksters can't continue gambling with deposits.

Wed, 08/15/2012 - 19:53 | 2708733 TruthInSunshine
TruthInSunshine's picture

You mean repeal rather than restore, I assume, and I could not AGREE MORE.

+1

Wed, 08/15/2012 - 16:05 | 2708025 Renewable Life
Renewable Life's picture

He "doersn't see much chance of a recession in 2013"!!!!!!!!!! And this idiot is the QE Dove in the group????? Crack smoker more like it, God damn it, I would like to see some of these fools, pull their heads out of their butts and look around for a minute!!!

There will be a war with Iran in the next month to three months, the tax policy in this Country is so far off the rails its stunning, we have a 100 year drought taking place, we are 16 trillion in debt with no end in sight, regardless of the stooge who occupys the WH...........

But he see's no big dangers for the economy in 2013!!!!!!!!!

Wed, 08/15/2012 - 16:31 | 2708115 Buckaroo Banzai
Buckaroo Banzai's picture

What the hell else is he gonna say? They are all LIARS.

Wed, 08/15/2012 - 16:06 | 2708027 azzhatter
azzhatter's picture

Must have had a scheduling problem, Fisher usually gets a blowjob from Kudlow in the evening

Wed, 08/15/2012 - 16:06 | 2708029 Mrmojorisin515
Mrmojorisin515's picture

Is the economist about to go under? 12 bucks for 12 issues? i remember when i first started reading WSJ and the economist before the crisis, and why i stopped reading both.

Wed, 08/15/2012 - 16:16 | 2708068 Dr. Engali
Dr. Engali's picture

Yeah there was a time in my life when I read those two rags as well as Barron's. Now when I see them mentioned I scoff at the old guard. 

Wed, 08/15/2012 - 16:23 | 2708089 Meesohaawnee
Meesohaawnee's picture

Gosh Barrons is the ultimate self flatulating piece of shit. they write like they actually matter. WSJ is only good for non investing stories. Basically all have been exposed as just outsourced PR firms. oh my would hitler have a smile.

Wed, 08/15/2012 - 17:44 | 2708268 Mrmojorisin515
Mrmojorisin515's picture

If you've never read harpers, they are worth checking out.  Not all finance related, but good articles and writing

 

http://www.thebaffler.com/past/dead_end_on_shakin_street/print

Thomas Frank is great

 

(edit) whoops now i understand why i got a thumbs down GOLD BITCHEZ!

Wed, 08/15/2012 - 16:10 | 2708043 MFLTucson
MFLTucson's picture

Bullshit, that means it coming.

Wed, 08/15/2012 - 16:11 | 2708045 john_connor
john_connor's picture

Related to this, if the Fed was going to implement QE in September, wouldn't the 10 year and 30 year be rallying in a frontrunning attempt? 

 

Instead they have tanked over the past few weeks.  hmmm.

 

Wed, 08/15/2012 - 16:30 | 2708110 Never One Roach
Never One Roach's picture

good point. 10-years are now over 1.8%

Wed, 08/15/2012 - 16:16 | 2708067 Brother Sebastian
Brother Sebastian's picture

A Dallas business writer recently told me Fisher "was a voice of reason" on the Fed board.  I think he's just another shill.  A guy his superiors have set up as a "dissenting voice."  Can't have every Fed member look like a hawk.  Fisher's Dallas operation is a big public relations front for the Fed.  They spend bundles doing fancy surveys and presentations to convince business leaders and the public that the economy is recovering.  It's all such a sham.  And Fisher is, too.     

Wed, 08/15/2012 - 16:28 | 2708084 Gigantor
Gigantor's picture

I agree. The Federal Reserve is as much about destroying our currency and sending our economy into a terminal tailspin as it is managing the media, propaganda and message control. 

 

Setting interest rates and inflation targets is small potato's compared to the skill it takes to rile up and herd millions of people into the killing floor that is Wall Street. Yet the Fed has it down to a science and is able to do it over and over again.

Wed, 08/15/2012 - 16:20 | 2708075 Gigantor
Gigantor's picture

These fools are insane.

 

Can't they realize that it's the crash/crisis/recission/depression or whatever it is we find ourselves in now is a result of the very policies (amongst others) that they use to "SAVE" us?

 

QE to fight a recession? Shoveling money to banks to fight a recession? Destroying capital formation to fight a slowdown? Anihilating the rule of law and investors rights to battle the problem in Europe/China?

 

Have these clowns ever bothered to take a basic economics course? I took a few, most notably the one while I was in high school...it was good and I learned a lot, seemingly more than the pyscho's at the Fed and in Govt.

Wed, 08/15/2012 - 16:28 | 2708102 Meesohaawnee
Meesohaawnee's picture

your making the assumption they care...

Wed, 08/15/2012 - 16:43 | 2708167 Brother Sebastian
Brother Sebastian's picture

Yes, they are insane.  They're psychopaths who care only about their power and personal wealth.  Fisher is a classic example.  On the surface, he appears to be a "nice guy" who has "business sense."  If he really cared about anyone but himself, wouldn't he donate a portion of his time to helping the constantly-expanding number of homeless and starving people on the streets of Dallas?  Instead, he choses to perpetuate a non-government entity that controls the economy of our nation and the world, and does so only to enrichen its elite members.   

Wed, 08/15/2012 - 16:23 | 2708085 Piranhanoia
Piranhanoia's picture

It speaks, it begs, it ......    misleads

Wed, 08/15/2012 - 16:28 | 2708097 khakuda
khakuda's picture

One of the few sane people on the FRB.  Probably means he'll retire soon.  The graphics/sound effects at 7:28 did make me laugh.

Wed, 08/15/2012 - 18:44 | 2708546 Papasmurf
Papasmurf's picture

It sounded like Maria trying to sneak one out.  "Never trust a fart".

 

Wed, 08/15/2012 - 16:48 | 2708187 redd_green
redd_green's picture

"While he doesn't see a high likelihood of a recession in 2013..."

 

Heh, yeah,   I guess if you're a big whig for the Fed, you have no idea that we've been in a recession since 2007, and never came out. 

Wed, 08/15/2012 - 17:09 | 2708261 j8h9
j8h9's picture

How bout it? So many sources saying a collapse is imminent and this guy doesn't think we're heading for a recession? btw, Bernake is a Republican, wouldn't surprise if his actions are guided in part by the goal of not helping Obama with jobs and the economy.

Wed, 08/15/2012 - 17:04 | 2708246 Mongo
Mongo's picture

Reboot bitchez!

Wed, 08/15/2012 - 17:41 | 2708364 sschu
sschu's picture

Fisher is strutting his stuff, showing who owns the place.  This is a warning to Bam or Romney, we can break you, and do so in a hurry.  

Right now with the economy facing a fiscal cliff, the only hope for Bam is more Fed crack, hence Bennie etal has the upper hand.  This will change, as it often does, and sometime in 2013 the new president will flex his muscles and Bennie will do what he is told for a while.

The story is getting very old and redundant  ...  besides offering no real solutions to our circumstance.

sschu

Wed, 08/15/2012 - 19:47 | 2708722 silverserfer
silverserfer's picture

what a tool. I have to give it to him though, he can articulate very well for someone who talks out his ass.

Wed, 08/15/2012 - 19:49 | 2708727 natty light
natty light's picture

+1 to the Money Honey

Thu, 08/16/2012 - 03:35 | 2709442 EZYJET PILOT
EZYJET PILOT's picture

She asked the wrong question, the right question is: Is the Fed bailing out Wall Street?

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