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Goldman's Take On Bernanke: "Noncomittal"
We said to expect nothing from the Chairman today. We were right (and those "strategists" who said to look for a negative IOER announcement were dead wrong). And now, here is Goldman with its Humphrey Hawkins post-mortem.
Bernanke's Congressional Testimony: Noncommittal
BOTTOM LINE: Chairman Bernanke does not break new ground relative to previous FOMC communication in his prepared remarks to Congress.
MAIN POINTS:
1. Chairman Bernanke sticks closely to the information conveyed in the June FOMC statement and minutes in his prepared remarks to Congress. His description of the economy is mainly factual and he reiterates that the committee is "prepared to take further action" but does not provide any discussion of the available easing options.
2. The Chairman spent more time than usual on downside risks. First, he discusses in some detail the risks associated with the European crisis. Second, he stresses the downside risks associated with the US fiscal outlook and argues that the uncertainty might already be weighing on the economy at present.
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He operates in secret. No way he gives Congress anything.
If we can trust Bernanke, who can't we trust?
First time Ben used the the "R" word.
i will think about it..ben bernanke..
FUGS!
Bernanke has become irrelevant. I know many here like to follow this aspect but the avalanche has already started.
"...might be weighing on the economy"..??? it's more like spread eagle, don't you think?
There will be no QE before the election.
ALL, repeat, ALL Fed chairmen care about Fed independence more than anything else and moving on QE this close to the election risks that. A GOP win despite it would more or less make certain new oversight and constraints be imposed. Bernanke will avoid that at all costs.
There is also the reality that he is a very smart man and he has seen that QE has not yielded the results desired. He likely would be looking in other areas of his toolbox.
So I know the gold nazis on ZH are desperate for more printing, but the odds aren't good on this.
The huge rally that QE will deliver, even though it is already priced in several times over, would cement any incumbent's re-election. It couldn't be seen as anything but political.
Gentlemen,
I do believe my arse is twitching like a rabbits nose, I am up fucking shits creek and seem to have lost the paddle. Try as I may, I cannot get the staff to put down their porn magazines and face this crisis head on. Alas it seems all these fuckers want to do on the public coin is wank and have relations outside relations with each other. So tell me gentlemen, what shall I do about the fuckers, fucking the fuckers on your dim oh mye?
I am at a loss my good men, I have tried I really have, but after so many extra curricular wankings, I do believe I am now blind, so I see nothing hear nothing and now thanks to the fucking choom wagon blazing around here night and fucking day, hear nothing.......................
Next question please......... (oh my, fuck.....)
I was listening a while ago when a Senator asked him what tools were still available to the Fed. The Bernank listed 3 tools the Fed has discussed using: buying Treasuries/MBS, adjusting rates / discount window, and adjusting IOER.
www.pmbug.com
who cares what goldman thinks. irrelevant
No kidding GS.
http://confoundedinterest.wordpress.com/2012/07/17/market-reactions-to-bernankes-report-to-u-s-senate-bernanke-does-e-f-hutton-impression-gold-euro-10-yr-treasury-yields-tank/