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Guest Post: Bernanke In A Box

Tyler Durden's picture

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Fri, 08/26/2011 - 23:42 | 1606654 caerus
caerus's picture

nobody puts bernanke in a corner

Sat, 08/27/2011 - 00:20 | 1606739 egdeh orez
egdeh orez's picture

Bernanke in a Box = Dick in a Box

Sat, 08/27/2011 - 01:15 | 1606796 spiral_eyes
spiral_eyes's picture

Ben, the two of us need look no more 
We both found what we were looking for 
With a friend to call my own 
I'll never be alone 
And you, my friend, will see 
You've got a friend in me 
(you've got a friend in me) 

Ben, you're always running here and there 
You feel you're not wanted anywhere 
If you ever look behind 
And don't like what you find 
There's one thing you should know 
You've got a place to go 
(you've got a place to go) 

Sat, 08/27/2011 - 02:15 | 1606829 markmotive
Sat, 08/27/2011 - 02:26 | 1606838 spiral_eyes
spiral_eyes's picture

ha. when we were at 1890 i called a 1700 trough, and the next stop after that $2100. we've had 1704, now let's see what the upside is. 

Sat, 08/27/2011 - 06:35 | 1606960 Richard Weed
Richard Weed's picture


Monetary expansion (ie debasement of the dollar) does not have to occur only at the short end of the curve... The Bernank can very easily monetise the debt by buying long dated treasureies, agencies, or mortgage bonds... thus also achieving the objective of lowered long term rates for US corporations and household mortgages.

Sat, 08/27/2011 - 07:13 | 1606980 mayhem_korner
mayhem_korner's picture

thus also achieving the objective of lowered long term rates for US corporations and household mortgages.

Lowering long-term rates for mortgages is irrelevant at this juncture.  Those who would be candidates for refinance are either underwater or already at 4-and-change percent.  Squeezing mortgage rates to 3.25% isn't enough for a refi wave.

As for corporations - who can refinance - all that would do is further inflate off-shore accounts steeped with cash that businesses don't want to repatriate for tax reasons.

Bottom line: massive, massive heaps of dollars being kept out of circulation.  All spring-loaded for a REAL dose of inflation when the currently-leaking, dollar-confidence dam finally gives way.

Sat, 08/27/2011 - 10:19 | 1607188 imapopulistnow
imapopulistnow's picture

Tax holiday is right around the corner.

Sat, 08/27/2011 - 11:23 | 1607278 mayhem_korner
mayhem_korner's picture

Won't put dollars into circulation - just a tax-free dividend to those holding the keys.

Sat, 08/27/2011 - 14:48 | 1607741 AldousHuxley
AldousHuxley's picture

Bernanke will wait for US Treasury and ECB to take action first


Sun, 08/28/2011 - 05:04 | 1609078 zhandax
zhandax's picture

Monetary expansion (ie debasement of the dollar) does not have to occur only at the short end of the curve..

And indeed, it did not.  I have a problem with the author's contention that the problematic issue here is an artificially induced shortage of t-bills for collateral; QE2 sucked out the belly of the curve (notes) rather than bills.  I would like to hear his viewpoint absent this assumption.

Sat, 08/27/2011 - 08:01 | 1607013 trampstamp
trampstamp's picture

Ben is that you?

Sat, 08/27/2011 - 11:37 | 1607311 Mountainview
Mountainview's picture

He doesn't dare to mention that all Q1,Q2 and more ends up in China, OPEC and rest of Asia. As long the US doesn't address this problem, Mister B. will continue to push on a string...

Sat, 08/27/2011 - 03:44 | 1606896 tunckar
tunckar's picture

Bernanke in a box= Bernanke in a CELL

Sat, 08/27/2011 - 04:31 | 1606917 Drag Racer
Drag Racer's picture

he just didn't fully explain the box. there is more to it.

History of Oil


Sat, 08/27/2011 - 15:35 | 1607880 boiltherich
boiltherich's picture

Thanks for the link DR, I only got about to the first world war but I bookmarked it for later when I have time for the whole show. 

Sat, 08/27/2011 - 05:20 | 1606939 adeptus
adeptus's picture

nobody puts bernanke in a corner

That's right, because like he said at Jackson Hole...

... "I've got plenty of tools.... INCLUDING MY NEW SECRET BAZOOKA" 

Check it out:  http://i56.tinypic.com/yphmf.jpg

Sat, 08/27/2011 - 08:03 | 1607014 trampstamp
trampstamp's picture


Sat, 08/27/2011 - 11:35 | 1607303 AllAboutTheBenjamins
AllAboutTheBenjamins's picture

Damn straight

Fri, 08/26/2011 - 23:42 | 1606655 Spastica Rex
Spastica Rex's picture

He said QE 3.0, without really saying it.

No, he didn't. Wishful thinking has no limits.

Fri, 08/26/2011 - 23:46 | 1606663 Caviar Emptor
Caviar Emptor's picture


Sat, 08/27/2011 - 01:00 | 1606783 Spitzer
Spitzer's picture

ZIRP for 2 years and no QE ?

You are an idiot.

Sat, 08/27/2011 - 08:13 | 1607019 kito
kito's picture

you really have to get that whole talking to self thing looked at

Sat, 08/27/2011 - 04:38 | 1606920 Snidley Whipsnae
Snidley Whipsnae's picture

I am reading a lot of speculation about a hypothesis... in other words, hot air...

Bernanko left the door open to anything at the next FOMC meeting and for good reason...

The situation is changing hourly, not daily, not weekly, not monthly, hourly!

No way Ben knows what is going to come out of the next 2 day FOMC meeting. The Fed has been playing for an hour at a time.

Ben, and his Fed cohorts, are hoping that Oblammer takes some meaningful action on the fiscal front before the next FOMC meeting...

That is the reason for the delay, imo... If you don't believe this then explain all the blather emanating from the Fed governors in the last few days about 'the Fed can't do it all, we need fiscal help'... The Fed is near the end of rabbits in hat and is scared... for good reason...

If Oblammer doesn't announce some helpful fiscal policies in his upcoming speech... and how can he without support from congress... well, look for more 'experimental economic policies' from the 2 day meeting...

No matter what is done we are screwed in the long run... the fundamentals are not going to be changed in the next month... the world economy is still screwed... The real choice is still what it has always been... write down the bad debt or suffer the fate of Japan...

Sat, 08/27/2011 - 08:23 | 1607028 Smiddywesson
Smiddywesson's picture

Agreed.  Bernanke is Barney Fife with only one bullet in his shirt pocket.  He blusters and bluffs, but he doesn't want to fire that last bullet because he will then be disarmed.

Sat, 08/27/2011 - 09:47 | 1607145 css1971
css1971's picture

The situation is changing hourly, not daily, not weekly, not monthly, hourly!

Well, they may want you to think that... Truth is the processes involved have been in place for decades.

Truth is that they hold their beliefs dear and would much rather see the US... The World... destroyed than admit they are fundamentally wrong and that they are not as smart as they think they are.

Vanity. It means more of the same.

Sat, 08/27/2011 - 10:10 | 1607176 jekyll island
jekyll island's picture

I don't think it is vanity.  The Bernank works for the superelite bankers, any move he makes will be done to increase their wealth.  His delay in QE or whatever the hell he is going to do is done to allow the bankers to take a position, probably in the opaque, unregulated CDS market before he announces intervention and they rake it in.  Like taking candy from a baby.  I think you are a little stupid for attributing this to vanity, the Bernank is a patsy who is told what to do.  I agree with you that destroying the currency doesn't matter to them, it is just another opportunity to transfer wealth from the sheeple.  Politicians won't stop it, they were bought years ago.  

Sat, 08/27/2011 - 10:22 | 1607189 disabledvet
disabledvet's picture

Actually he works for the government. And insofar as the government is concerned he's done great.

Sat, 08/27/2011 - 10:57 | 1607240 jekyll island
jekyll island's picture

He works for the government just like the Federal Reserve is a government agency.  He works for a bank.   One of his major roles is to keep the goals of the government and his bank in strategic alignment.  

Sat, 08/27/2011 - 12:39 | 1607461 sun tzu
sun tzu's picture

The government works for the bank. 

Sat, 08/27/2011 - 13:07 | 1607503 Kayman
Kayman's picture


Monetary Policy should be long term in view, not running around chasing whatever the current algoes in the stock market are set at.

Bernanke made a mistake by announcing ZIRP for 2 more years.

Fri, 08/26/2011 - 23:49 | 1606672 Fish Gone Bad
Fish Gone Bad's picture

Give me an 8 letter word for economic criminal.  Bernanke.


Fri, 08/26/2011 - 23:49 | 1606676 oobrien
oobrien's picture

We're all fucked with a capital F.

If Bernanke raises rates, we go into a deflationary depession.

If he keeps rates the same, we end up in endless recession.

So what's a boy to do?


Sat, 08/27/2011 - 00:05 | 1606708 slewie the pi-rat
slewie the pi-rat's picture


Sat, 08/27/2011 - 00:09 | 1606718 oobrien
oobrien's picture

That's NOT true.

I'm actually a misunderstood genius.

And I'm going to tell you cunts something now.

This economic crisis is so dire that it will lead to World War III.

There's no other way out.


Sat, 08/27/2011 - 00:15 | 1606729 caerus
caerus's picture


Sat, 08/27/2011 - 00:55 | 1606776 Pure Evil
Pure Evil's picture

And the award for the biggest doomer and gloomier for the night goes to...  OOBRIEN

Personally, I prefer the extraterrestrials angle, but nothing like a global genocide to get folks to click-bait his link.

Sat, 08/27/2011 - 01:03 | 1606786 Spitzer
Spitzer's picture

He is an idiot. In the Asian financial crisis in 1997 (400 million people) , no money was printed yet they had crashing inflation.

It is no possible for the US to have deflation.

Sat, 08/27/2011 - 02:25 | 1606837 oobrien
oobrien's picture

Brother, I was in South Korea in 1997.  It was the hardest hit of all the Asian countries.

Prices on the peninsula stayed the same.  There was no inflation.

But what do I know?


Sat, 08/27/2011 - 13:05 | 1607500 Spitzer
Spitzer's picture

The South Korean Won, weakened to more than 1,700 per dollar from around 800.

Thai Baht fell by 60%. You are an idiot

Sat, 08/27/2011 - 19:51 | 1608418 oobrien
oobrien's picture

The currency lost value.  But prices remained steady.

I was there.


Sat, 08/27/2011 - 02:30 | 1606842 oobrien
oobrien's picture

Let me see...

We're in Afghanistan, Iraq, Yemen, Pakistan, Libya...

Now we're talking about Iran.

Nothing like controlling the entire Middle East.

No, this won't lead to war.


Sat, 08/27/2011 - 06:50 | 1606967 BigDuke6
BigDuke6's picture

You can put up that link as many times as u like but I aint clicking it.
Why ? I don't recall reading anything sensible by you, including the drivel u've posted above... U were in Korea ? Fuck u , i was in nam then cambodia past the doh lung bridge...
And judge dredd slewie, our newly appointed hard nut sez ur a troll.
So earn my respect and I'll click ur link mofo

Sat, 08/27/2011 - 08:33 | 1607041 oobrien
oobrien's picture

Fuck you, cocksucker.

Do what you will.

By the way...

My link is shit.

I just have a fledging video blog.

I'm sorry I called you a cocksucker.

I'm drunk on soju.

God bless, brother.




Sat, 08/27/2011 - 07:20 | 1606985 Id fight Gandhi
Id fight Gandhi's picture

Another newbie link monkey? How about paying zh for an ad instead?

Sat, 08/27/2011 - 07:15 | 1606981 mayhem_korner
mayhem_korner's picture

I'm actually a misunderstood genius.

Aren't we all...

I say lucidity is worth 50 IQ points.

Fri, 08/26/2011 - 23:52 | 1606679 Newsboy
Newsboy's picture

Thank You for the insights, Jeff!

Fri, 08/26/2011 - 23:53 | 1606685 Aguadulce
Aguadulce's picture

"Put you in a pine box wit nine shots from my glock fellas." - Nas

Man I'm bored on a friday night...

Fri, 08/26/2011 - 23:57 | 1606691 A Lunatic
A Lunatic's picture

Sound like a good opportunity to visit the ZH archives.

Do NOT follow this link or you will be banned from the site!