Goldman Sachs: "QE3 Is Now Our Base Case"

Tyler Durden's picture

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Snidley Whipsnae's picture

"We view Chairman Bernanke's willingness to live with the dissents as a strong signal that he and the rest of the Fed leadership view the need for renewed easing as more important than the institutional norm of consensus decisionmaking."

Translation: The hard-headed azzhat won't listen to anyone.

Bob Paulson's picture

...other than the World Bank and the Bank of International Settlements.

spiral_eyes's picture

Benocide is letting the banksters pillage us like disaffected youths in London.

But here's 10 reasons to be optimistic: 

Manthong's picture

"inflation expectations show few signs of breaking lower"

The money line.

Add ZIRP and what do you get? 

Spitzer's picture

Canadian futures are way ahead... Mining stocks getting a bid ?

Michael's picture

I told you months ago, there Is going to be fucking QE3 100% guaranteed! What the fuck is it about what I just said don't people get? Am I not speaking fucking English?

Just give it a few more weeks to kick in.

There will be no more "job"(what kind of jobs?) creation in the United States.

I made sure of it! I gave you NAFTA, CAFTA, and GATT. What is it about this don't you understand?

This statement could be said by Bill Clinton and other US Presidents strait to your face, and they would laugh at you while saying it.

It's like a Tacoma Narrows Bridge moment.

Tacoma Narrows Bridge Collapse "Gallopin' Gertie"

I may have been wrong in my optimistic prediction of Black Monday October 10th, 2011, this up coming Columbus day, as the day of total worldwide collapse resembling something like this;

Rollover-1981- Depiction of Global Worldwide Economic Collapse in 2011

BigDuke6's picture

Hey , why doesn't my laptop allow me to junk self righteous bullshitters who state the fracking obvious and expect us to all to bow down to the legend.... mickeal.

NuYawkFrankie's picture

Spot on with youre nafta comments Big Guy.

Hey - it seems to me that a that The Squid's sphincter could do with some Quantitative Easing... please form an orderly line.

optimator's picture

But we gotta finish QE 2 first.  Bankster Bonus at stake.

TruthInSunshine's picture

Have LSAP consist of paying off the underwater component of peoples' mortgage debt (no, I'm actually not really endorsing this, and would never, but it's for context - read further) with a 75% markdown, to paid to the note holder (who will be forced to take the haircut if they've accessed the Fed's discount window in the past or have received funds through TARP or TALF in the past)...

...and tell Goldman that financial institutions and commercial banks won't be eligible to participate in LSAP, and let's read Jan Hatzius's and Goldman's (and JP Morgan's) take on that.


Eireann go Brach's picture

What is occuring in London is coming to the states very soon, we are only one or two random incidents away from inciting a rage that exists in this country and right now is simmering just below boiling point with a burning rage against bankers and the system itself! That fucking useless Kenyan in the White House is a disgrace and quite frankly his spewing rhetoric is dividing the classes before the eyes of the country and the fucking monkey does not see or get it! Hope and change, there is no hope and let me tell you change is coming soon on the streets.

infiniti's picture

"What is occuring in London is coming to the states very soon"

No. It is not. We are not as urbanized, and our access to illicit drugs remains solid. Not to mention that unemployment benefits and food stamps continue to be issued without restraint.

Why riot?

chump666's picture

as far as riots, doesn't take much to set them off. The UK is a mess, I am thinking France and Germany next

Spitzer's picture

I heard that Philidalphia already has a small rioting problem. I am Canadian and i heard about it.  are you guys awake ?

gwar5's picture

Yes, Philly.  Also, flash riotous mobs in Wisconsin, Chicago, couple of other places. None have gone full monty yet like the LA riots, though. Skirmishes.

Had an racial mob incident in Charlotte, NC at the bus depot during July 4th, now moving the depot away from city center before next years Dem convention comes to town.

Heavy racial components to them all. Surprised London has racial component, black guy killed by cops in shootout was black, set it off. Grapes of wrath cometh.

BigDuke6's picture

'Surprised London has racial component...'

Dude , i'm coming to live with you on that farm - you've won me over.

the UK socialist government of 1997 to 2009 imported 2.8 million mainly uneducated africans, black and arab, while turning a blind eye to another 1/2 million illegals.  they all hate the place and want it to burn.  over 1 in 4 babies in the uk is born to an immigrant - its gone....


these are race riots and its hardly started - for the first time in reading ZH for almost 2 years i'm beginning to pay attention to what the guns n ammo boys have been going on about.  even my wife is finally weakening on me getting a firearms license..

Are you kidding's picture

We CAN'T all live happily together...we're just too different.

mrwhoohoo's picture

Get with the facts: it was not a shootout. The bullet lodged in the cops radio was police issue jacketed round; the 'gun found at the scene' had not been fired. You can look for a racial component - the cops are just letting the dozy white folks think they're gonna be alright while they sharpen their techniques on the black population. But when the shit hits the fan, those same police bullets are gonna be turned on you. You don't really think it's going to be business as usual in whitey land do you? Keep drinking the Kool Aid, bud, I'll be using you as body armour. Thank God there's people like you around - it'll make the survival of the fittest easier.

slaughterer's picture

The local disenfranchised in Florida are holding up banks and stealing cars at an alarming rate. 

Eireann go Brach's picture

Why riot? seriously...when you have rampant unemployment which is at 30% to 40% amongst the ethnics under the age of 25, plenty of time on their hands, zero chance of getting a job, no money in their pockets, fuck all else to do but listen to the growing anger that is starting to penetrate all facets of society now that the sheep are taking notice, my friend there you have plenty of reasons to pillage and loot! it will take one or two incidents to initiate the riots, but it is coming. Now go back to bed and read your people magazine and feed your fat wife a ham and twinky sandwich!

topcallingtroll's picture

Uuhhh...I work with those types.

They dont want a job.

They just want the govt. checks to continue.

Can u believe they call it "getting a raise" when they get a COLA increase? As if there is somehow moral equivalency with working for a paycheck.

Cut them off now! We are going to have riots anyway, those entitled assholes thinks the taxpayer owes them a living. Cut them off now. Get the riots over with. Kill a whole bunch of them, and make sure they never fucking feel entitled to free checks again. Going hungry cuz they are too good for the job available and refuse it is a good lesson.

BigDuke6's picture

You work with those types?.... you poor sod and you are entitled to judge more than others who have never met one and think its not their fault cos they are disadvantaged or some other bullshit.

i used to help them breed... less so now.

they riot because its fun for them to destroy, they can steal things and the main one is they know they will get away with it.

uk prisons are like holiday camps and the judiciary limp wristed, hand wringing liberals who take a lot of the responsibility of the uk going from a great country to a total shithole within 20 years - that takes a concerted effort.... like the usa now i guess...


mrwhoohoo's picture

Haha more recycled elitist BS. You really think you're going to escape what's coming because you've got white skin? Sorry for you dude, but I'm glad there's a bunch of dupes like you out there. We're going to be using you as smiling willing human shields when they come for the rest of us. Why do you think we're stocking up on hardware? The white-black thing worked as long as there were enough crumbs to sprinkle in front of white zombies. When it comes to their bonuses vs your life do you really think they're gonna give a shit that you're wearing that white sheet? You're just another expendable mouth to feed. Smoke on dude ... smoke on ...

BigDuke6's picture

You are rambling like a moron... whats your point?

that guy that got shot - fuck him - he was a piece of shit - he's dead - goooood.

you think cops are the enemy? - fuck you - when your rioting buddies come into your house at night, who you gonna run to .

i'm not a fan of cops - i get busted too but the cops are everyones daddy when the scum come for your gold.

you're the kool-aid boy... probably some college kid who's chocking the chicken over the lap top as we speak - i've earned my cone punk... so i will smoke on.

you can shut the fuck up.


Die Weiße Rose's picture

what,still no live feed from those Riots in London ,Manchester,Birmingham ???

Zero hedge is pretenting this is Not happening.

If it was Greece or Italy or Germany or France the World would End,

but since it is Mother England and part of the Anglophile Empire,

and not really Europe according to some...

we just will never even mention those Riots in England and maybe it all just goes quietly away

while we hope the Euro-Zone will blow up....except England of course...

hello ZH London is burning !

CosmicBuddha's picture

"No. It is not. We are not as urbanized, and our access to illicit drugs remains solid. Not to mention that unemployment benefits and food stamps continue to be issued without restraint."


I live in the suburbs of London. You may not be as urbanized as us, but I believe our access to illicit drugs at least equals your own, and our benefits culture makes yours pale into insignificance. There are millions of people who just do not work for their entire lives and are supported by the state. I think the main difference between our countries is that our government has embarked on an austerity program focused mainly on cutting the dependency culture, whilst your government, being left leaning, has not. If and when your government starts making meaningful cuts, then you will have riots. Look at Greece.

mfoste1's picture

lol no its not.....only because americans are so fucking stupid and lazy

moregoldplease's picture

I hope not but think you are correct.  Stay armed and out of areas where you might have to shoot.

Alpha Monkey's picture

That fucking useless Kenyan in the White House is a disgrace and quite frankly his spewing rhetoric is dividing the classes before the eyes of the country and the fucking monkey does not see or get it!

I wish I knew how to properly convey how ironic this is.  I just want you to know I'm laughing at you. :D

YHC-FTSE's picture

Here's a touch of surreal pairing. Looking through the listings for the "Rise of the Planet of the Apes" preview in London shows that the only places showing the film are the Peckham Multiplex and Cineworld Enfield tonight. Monkeys in the audience and on the screen - at least they'll be off the streets. You can't make this shit up. 


Edit: Just realized how the above might be interpreted. When I write "monkeys in the audience", I mean feral kids of all colours who have been rampaging around London the last few days, not just black folks. OK? 

barliman's picture


The FOMC shat out a stink bomb of both policy and wording today. This suggests to me that the official vote may have been 7-3 but it started out as 3-7 against Mr. Bernake and it took giving up on QE3 action at this time and drafting a consensus agreement to get to a more face saving 7-3 vote. Any thoughts on this topic?



oogs66's picture

Thats an interesting take on it. Makes sense

slaughterer's picture

The Fed initiated one of the three policy tools BB discussed in his last presser: 1.) the change in language about ZIRP.  They most certainly discussed 2.) inflation targets, and 3) OT2 and QE3.  The resistance was probably strong against telegraphing 2.) or 3.) in this statement.  Give it time, 2.) and 3.) will come as the unemployment and deflation numbers get worse.  The FOMC Borg is basically run by BB and Dudley (the GS mole)--hawkish dissent has little importance.  The time-line for QE3 late 2011/early 2012 corresponds perfectly to a simulated recovery and "wealth effect" right during the run-up to the 2012 elections.   It is pretty clear that the Fed is supporting a re-election of O, despite its alleged political neutrality.  If anyone thinks the Fed/Wall St. wants the radical fiscal policies that showed up in the debt ceiling debate, you are sorely mistaken. 


Snidley Whipsnae's picture

"I may have been wrong in my optimistic prediction of Black Monday October 10th, 2011, this up coming Columbus day, as the day of total worldwide collapse resembling something like this"

Wrong? Could you have been wrong? You could attribute the bad call to your crystal ball being on the fritz... or, a bad hair day?

We saw today the ground work for a new pattern. The Fed makes an announcement and immediately GS says the opposite... When Fed spoke equities began a sell off... When GS spoke equities corrected ~400 pts into the close...

I say we see more of this in future...


Michael's picture

Definitely a bad hair day, but I'm sticking by my October 10th call for complete and total worldwide economic collapse.

gwar5's picture

What's up with Oct 10th?

Why that date?

snowball777's picture

Because Michael is a total Libra:


Your element: Air

Your ruling planets: Venus

Symbol: The Scales

Life Pursuit: To be consistent

Vibration: Unsteady

Libran's Secret Desire: To live an easy, uncomplicated life.

infiniti's picture

a) There will not be a QE3. The only thing QE programs achieve is higher gas prices, even the retards at the fed realize this (now).


b) The fed will never, ever, ever increase the fed funds target. Ever.


c) The fed will never, ever, ever reduce the size of their balance sheet. Ever.


d) We are not in a recession. We are not going into a recession. We are stuck at 1-3% growth (on average) for many years to come. If anything, growth will stabilize and increase due to the decline in treasury yields and gas prices.

chump666's picture

Who cares, Bernanke doesn't indicate a QE3 now, so it comes later, by the time he drops QE3...China would have imploded in 2h. When China crashes won't me crap what Bernanke does + the US economy will fall into a major depressive slump.  The wake up call was the last few days of trading = a sh*tstorm is brewing.

TruthInSunshine's picture

"Although the substantive differences are small--e.g. a $600bn purchase over eight months is basically the same as a $75bn-per-month purchase that is expected to last eight months--the cosmetics of the flow approach might be more appealing."


The excerpt above is where one gets a flavor, or a mere taste, of all that is Goldman Sachs' status as a coked out whore, addicted to taxpayer extracted, Bernanke distributed, largesse.

Goldman Sachs is jonesing for a fix so badly, there is no level they wouldn't stoop to. It's pathetic.

juwes's picture

brother of murdered father of 2 in England:

eye witness to beat down of 16 year old girl by gaggle of police (seems to have set things off):

so far only video of that beat down, but seems to confirm above guy's story:


News and movements travel fast.  Organize now before the chaos, once it starts, it will be dark and... chaotic.

chump666's picture

slight pressure on crosses, Euro stocks on open will suck, some USD bids.

Spirit Of Truth's picture

And what makes you think telling the truth will make a difference?

tahoebumsmith's picture

Nothing but a bunch of junkies waiting for their next fix. They are all gathered around licking the mirror and bitch slapping their hooker named Starfire waiting for their dealer Benzene to bring on more.  At one time Starfire actually looked hot, now she is just the washed up slut she always was. Reality bitchezzzz... Time to look in the mirror, you are nothing more then a compulsive gambler with a substance problem. Stop taking down the rest of America with your addiction. At this point we are all just DREAMERS hoping for a brighter future, stop thinking about yourselves for just a minute. Unfortunately we have put another 2.5 trillion nails in our coffin to secure our demise...Party on fucktards because your days are numbered. Instead of doing your little 8 ball might just as well make it an ounce. Tick.tock.tick,tock, just remember the harder you DREAM and game the system, the less chance your children and grandchildren have to enjoy the America we all once took for granted...nothing more then a bunch of slutbags in my opinion...see you in the Hamptons someday soon beatches....

Taku's picture

How dare any of you call "QE3", QE3!!!


Use another damn acronym or phrase something totally ambiguous, preferably circular in notion.

BorisTheBlade's picture

Recursive Monetary Mayhem, you don't even need to attach numbers to it.

spankfish's picture

How about QE3 the new government Date Rape Drug of Choice?

SeverinSlade's picture

That was the irony of the frantic rally.  The Fed basically confirmed that the shit is about to get ugly and that it, as of right now, has zero plans to do anything about it.  We've known for a while that interest rates will remain near zero. 

The morons on CNBS all day were talking about how stocks are undervalued and that high dividend stocks trump the low yield of treasuries.  I have a simple question for the CNBS idiots.  How helpful is some puny dividend when your primary investment drops 20+ percent?

Europe will continue to fall apart.  The US will continue to spend money and wage war.  QE3 will likely come at Jackson Hole just like Bill Gross and ZH originally predicted.

darkstar7646's picture

The rally was the government trying to save failing businesses across the Dow 30.

We were due for another 700 or so down to get the Dow near where the losses in the rest of the world have been for the last 3-4 sessions.

You know what happened next.