This page has been archived and commenting is disabled.

Here's Hilsenrath: The Door Is Still Open For The Fed To "Help The Economy"

Tyler Durden's picture





 

One didn't think that an economic event could come and go without some commentary from the WSJ's resident "Fed mouthpiece-cum-economist" who has rapidly become a caricature of himself, and is solely known for his heretofore programmed leaks of Fed policy, which tended to work until it didn't. In a normal day when newsflow or fundamentals actually mattered, we would focus on far more important things. However, since we are caught in the manic phase of the market's daily bipolar gyrations, and nothing can make a dent in sentiment at least until Monday when the market suddenly decides it was 100% wrong in its re-interpretation of Draghi's comments (last we checked there is still no press release from the Bundesbank saying it has agreed to any bond buying, let along short-dated) and decides to plunge all over again, here is Jon with more propaganda that today's NFP beat, which is still well below the 200+ needed to maintain the declining unemployment rate trendline, means nothing for the Fed.

From the WSJ:

Today’s employment data aren’t enough to dramatically alter the Federal Reserve‘s view that the economy is growing too slowly to register meaningful improvement in the unemployment rate.

 

Though payrolls improved, the jobless rate hasn’t come down since the beginning of the year, keeping it well above almost any definition of maximum sustainable employment, which is half of the mandate Congress has given the Fed. (The other half, or course, being stable prices.) That leaves the door still open to new moves by the Fed to help the economy.

 

On Wednesday, the central bank made what amounted to a conditional promise of action. In a statement carefully worded to send a strong signal, it said it will “closely monitor” the economy and “will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions.”

 

Fed officials get another snapshot of the job market — on Sept. 7 — before their next meeting, which is set for Sept. 12-13.

Our advice: ignore the pleading of hits hollow scribe, and focus solely on whether the Fed will continue engaging in repos in the next month. A few more of those will give the answer everyone is looking for.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/03/2012 - 13:03 | Link to Comment Tippoo Sultan
Tippoo Sultan's picture

The Official Scribe is early this Friday. He must have plans for the weekend.

Fri, 08/03/2012 - 13:07 | Link to Comment malikai
Fri, 08/03/2012 - 13:33 | Link to Comment ZerOhead
ZerOhead's picture

If you excluded the new lobbyist and SuperPAC hires the print would have been more like -20K...

And I need some more adrenechrome

Fri, 08/03/2012 - 14:16 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Hilsenrath is a dirty, dirty little whore.

It will be interesting to see where the future takes him.

Fri, 08/03/2012 - 14:31 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Hilsenwrath: "The back door is still open for the Fed to rape the economy good a few more times"

fixed it for you

Fri, 08/03/2012 - 14:55 | Link to Comment LeisureSmith
LeisureSmith's picture

Strong fluffing, he may have won an award and he doesen't even know about it. He made a music demo back in the day.http://www.youtube.com/watch?v=eYAAbbuEpnw

Fri, 08/03/2012 - 18:22 | Link to Comment Acorn10012
Acorn10012's picture

Well, Tyler did say he was a cum mouthpiece...fluffing cums with the job.

Fri, 08/03/2012 - 13:11 | Link to Comment SeverinSlade
SeverinSlade's picture

Markets are becoming increasingly volatile with wider swings to the upside and downside...Carbon copy of 2011.

Like ZH suggested, the fact that the Fed has conducted its first repo in four years gives us an idea of what is coming next.

Fri, 08/03/2012 - 13:26 | Link to Comment DavidC
DavidC's picture

Tell me about it - I had a nearly 100-point stop on the Dow yesterday before Draghi spoke and still got stopped out. How can one trade with ridiculous moves like that (and yes, I realise that maybe I shouldn't be mug enough to try and trade these broken markets now)?

DavidC

Fri, 08/03/2012 - 13:15 | Link to Comment Hype Alert
Hype Alert's picture

I was thinking they would wait until people started thinking about how this week looked in hindsight.  Hindsight is a wonderful thing.  On Monday, after everyone has had the weekend to dig through the report and figure out it's not that good in the meat of it and had time to review why there has been a delay in QE and other forms of manipulation other than Open Mouth Operations, there may be some buyers remorse.  I was giving them until 2:00 or 3:00 to start thinking about that.

Fri, 08/03/2012 - 14:16 | Link to Comment Daily Bail
Daily Bail's picture

HILSENRATH SPEAKS - Bernanke's Mouthpiece Hints At New 'MBS Buying Program': "QE3 Is Likely In September"

If you've never seen Hilsy in person here's your chance.  Short interview with PBS News Hour from Wednesday.

Fri, 08/03/2012 - 13:04 | Link to Comment SilverTree
SilverTree's picture

What, a reach-around?

Fri, 08/03/2012 - 13:04 | Link to Comment notbot
notbot's picture

From the mouth of the Bernank straight to us.

Fri, 08/03/2012 - 13:07 | Link to Comment sabra1
sabra1's picture

do you know where his mouth has been?

Fri, 08/03/2012 - 13:07 | Link to Comment SheepRevolution
SheepRevolution's picture

From his asshole, if anything..

Fri, 08/03/2012 - 13:10 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

....... is that ass to mouth? .........

Fri, 08/03/2012 - 13:05 | Link to Comment Blopper
Blopper's picture

2nd chance for Hilsenrath to shame himself again.

Fri, 08/03/2012 - 13:46 | Link to Comment jeff314
jeff314's picture

jew dont have shame...

Fri, 08/03/2012 - 13:06 | Link to Comment The Wizard of Oz
The Wizard of Oz's picture

BULLISH!

Fri, 08/03/2012 - 13:07 | Link to Comment slaughterer
slaughterer's picture

"Our advice: ignore the pleading of hits hollow scribe, and focus solely on whether the Fed will continue engaging in repos in the next month."

Q: do you mean to imply that repos will take the place of any need for genuine, unsterilized LSAP/balance sheet expansion?   Clever. 

Fri, 08/03/2012 - 13:07 | Link to Comment Bay of Pigs
Bay of Pigs's picture

All Hail the Hilsenrath!

Fri, 08/03/2012 - 13:34 | Link to Comment Manthong
Manthong's picture

Poster child for the term “useful idiot”.

Fri, 08/03/2012 - 13:11 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Hilsenrath should simply write that the "door" is open ad infinitum.  He can then issue the same statement on a daily basis as a gentle reminder to the algos.  Problem solved.

Fri, 08/03/2012 - 13:09 | Link to Comment Jlmadyson
Jlmadyson's picture

Oh yes, Fed Chairman Hilsenrath, it will help the economy alright.

Bankers needing capital seething out your face son!

Fri, 08/03/2012 - 13:10 | Link to Comment Hype Alert
Hype Alert's picture

They will dangle the carrot in front of the donkey until he gives up.

Fri, 08/03/2012 - 13:11 | Link to Comment slaughterer
slaughterer's picture

Hilsenrath IS our age's entirely visible and unpunished "Blue Horseshoe"

Fri, 08/03/2012 - 13:15 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

The self-proclaimed new FOMC Chairman Hilsenrath has been obscenely desperate lately -- writing like a maniac 2-5 articles a day about incoming Fed "easing".

Fri, 08/03/2012 - 13:19 | Link to Comment khakuda
khakuda's picture

Can't have QE be data dependent when he is long out of the money S&P calls.  Journalism doesn't pay.

Fri, 08/03/2012 - 13:16 | Link to Comment fonzannoon
fonzannoon's picture

Can anyone tell me how the fed manages to "repo" or convert shitbag shadow assets and turn them into fungible cash? What are they selling and who is buying?

Fri, 08/03/2012 - 13:16 | Link to Comment Everybodys All ...
Everybodys All American's picture

It has become obvious the only way that these banks do not close their doors due to insolvency is by having the market continue to rally qtr after qtr. Fundamentals be damned. Flow must continue.

Fri, 08/03/2012 - 13:21 | Link to Comment Jlmadyson
Jlmadyson's picture

Oh the flow will continue at all cost.

Fri, 08/03/2012 - 15:05 | Link to Comment khakuda
khakuda's picture

$91 oil, 1400 S&P, 1.5% 10 year, 3.5% mortgage rates, ag commodities skyrocketing, 1600 gold.  Once again, so much liquidity already pumped in the system a blind man could see it yet these idiots keep creating more and more and more.

Fri, 08/03/2012 - 13:17 | Link to Comment Martial
Martial's picture

Help the economy....by closing their doors.

Fri, 08/03/2012 - 13:18 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Some day, in the distant future, it will all be revealed how much market manipulation is currently going on.  I'm sure will be justified in hindsight that it was the "patriotic" thing to do, or some BS to thaat effect,  to save the US economy

Fri, 08/03/2012 - 13:18 | Link to Comment Duke of Con Dao
Duke of Con Dao's picture

funny, back in the 80s I worked for a small M&A boutique in the Olympic Tower in Manhattan. 

it was a 4 person operation. I bs'd my way into it knowing I needed a job to impress my gf's old man. 

a worked alongside the founder of the firm, a guy named Fred. yes, I knew he was once a big honcho 

at Morgan Stanley but when they told me he was also former FED vice-chairman it was ho-hum to me...

dumbass me had little clue what the FED did besides set interest rates....

here's another Creation Myth for you: a real MONSTER story 

https://www.youtube.com/watch?v=9nAhnhJgPPo

Fri, 08/03/2012 - 13:36 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

brilliant .... I love the scene cut-aways.  The best was ... " ... a lot of smart people" ... and you cut to angry mob with Pitchforks & torches scene.

 

Olympic Tower .... former vice-chair .... in the formative Plunge Protection Team days  ..... impressive ... did you 'get the girl'? 

Fri, 08/03/2012 - 14:07 | Link to Comment Duke of Con Dao
Duke of Con Dao's picture

I appreciate that you enjoyed it, really. 

a better cut away is with James Dean in this version - Giant: You Didn't Build that Oil Rig, James Dean sez Prez Obamahttps://www.youtube.com/watch?v=2mFRJLxJ5KQ

...

as for the girl, yep for a few more years but then I pissed that away as is my wont and with it her millions in inheritance. (heir to plastics fortune) 

oh well... live and....

 

 

Fri, 08/03/2012 - 13:20 | Link to Comment WeekendAtBernankes
WeekendAtBernankes's picture

The cum.  It is so close to the mouthpiece. This - close.

Fri, 08/03/2012 - 13:20 | Link to Comment slaughterer
slaughterer's picture

Can't wait for tonight's video from Sausalito with our beat-up went-100%-short-70-ES-points-below bear oracle.

Fri, 08/03/2012 - 13:25 | Link to Comment Itch
Itch's picture

You have to admit, these markets are powerful at the minute. That reversal in the euro is a monster, just a monster, and a nasty lesson to people who look for a black and white reason to place a currency trade. We are getting to a level of subtlety where, unless you’re marvellously sophisticated, only price should matter to most... because the bullshit is flying from EVERYWHERE. I have to have a chuckle at people who trade currency on fundamentals. In fact i find that fucking hilarious.

Fri, 08/03/2012 - 15:08 | Link to Comment Bastiat
Bastiat's picture

"We are getting to a level of subtlety where, unless you’re marvellously sophisticated . . . " or marvelously wired.

Fri, 08/03/2012 - 13:25 | Link to Comment bugs_
bugs_'s picture

We all know the Fed can't help the economy.  All it can do is part savers with their purchasing power and dilute the value of income.  I cringe when I hear someone talk about the Fed helping.

Fri, 08/03/2012 - 13:27 | Link to Comment Madcow
Madcow's picture

We've got a magic wand in the back - we swear! - we really do!!    It was tough telling my kids that there's no tooth fairy, santa claus or easter bunny - but they're better off now.

All the Fed can do now is continue to bluff - and to swear that there's some way for them to stop the deflationary collapse - to prevent people from dumping there assets and fleeing the country or loading up on bullets and canned beans and heading fot the hills. 

 

Fri, 08/03/2012 - 13:31 | Link to Comment slaughterer
slaughterer's picture

Tempting as it is, I just cannot bring myself to short WTI below $92 right now.   

Fri, 08/03/2012 - 13:35 | Link to Comment Dr. Engali
Dr. Engali's picture

Either shit or get off the pot,stop with these daily teases. I either want to enjoy a turkey sandwich courtesy of Kito or buy him a ham sandwich but for crying out loud stop with the jaw boning , this is getting ridiculous.

Fri, 08/03/2012 - 13:44 | Link to Comment fonzannoon
fonzannoon's picture

The jawboning has stopped and the actions have begun. This is the fed yelling "Look at this hand (QE3) Look at this hand!" while the other hand is infusing the banks with capital.

My question is still, what shadow crap assets are they selling and who is buying? How are these assets becoming fungible?

Fri, 08/03/2012 - 13:45 | Link to Comment Bullionaire
Bullionaire's picture

I love it when TD uses the words "mouthpiece" and "cum" adjacent to each other in the first line!

Fri, 08/03/2012 - 13:51 | Link to Comment Peter K
Peter K's picture

"However, since we are caught in the manic phase of the market's daily bipolar gyrations, and nothing can make a dent in sentiment at least until Monday when the market suddenly decides it was 100% wrong in its re-interpretation of Draghi's comments (last we checked there is still no press release from the Bundesbank saying it has agreed to any bond buying, let along short-dated) and decides to plunge all over again,...."

Yea, but it was a costly re-interpretation. :(

Fri, 08/03/2012 - 14:07 | Link to Comment My Days Are Get...
My Days Are Getting Fewer's picture

Hülsenrath =

Hülsen = a capsule ( the covering for your pill); a husk (the covering for grain)

+

Rat(h) = advice

= "a wisdom pill"

Our new Pluge Protection Team Leader

Sat, 08/04/2012 - 08:46 | Link to Comment Haager
Haager's picture

Nice. I've named that guy Helserat recently (dutch: hellish rat)

Fri, 08/03/2012 - 14:08 | Link to Comment JR
JR's picture

Ben? Helping the economy?

As Bill Sardi says regarding The greatest bank robber of all time: inflation : “Ben Bernanke, chairman of the Federal Reserve Board, is intentionally destroying the savings class via inflation while allowing banks to offer dividends to their stock holders. This is unconscionable. Any real President would have taken bold action to put an immediate stop to this. ...

"American banks hold about $10 trillion in savings accounts that lose about 9% of their purchasing power annually, or aggregately about -$900 billion a year, and Americans stand and take this loss without a whimper of protest.”

The pension system model is largely going away:

“This is a rather dramatic shift in events over the last 30 years.  In 1983 62 percent of working Americans had some sort of defined benefit plan.  In 2004 it was down to 20 percent and today it is lower.  Americans have been forced to play the stock market game through their 401ks.  This has actually turned out worse for average Americans as they try to compete with high frequency swindlers and investment banking crooks.  Clearly someone is making profits as investment bankers pull down million dollar bonuses all the while the stock market has gone into reverse over a decade.” – My Budget 360 July 28, 2012

The vanishing 401k plan:

“Maybe you intend to tap into your tax-free 401k account when you retire. But did you read where the agents for these 401k plans have swiped about 30% of your money in management fees. Add that to the 35% decline in their value over the past five years. Yes, some of those losses were regained, but you are back where you started five years ago and that 10% inflation calculator is running (the real rate of inflation according to ShadowStats.com).. …

“Whatever retirement plan you have, it must make 7-10% earnings annually to keep up with inflation. The nation’s largest pension plan, CALPERS, just announced it could only achieve a 1% return on its investment. It needs a 7% return to make good on its promise to provide pension checks to its contributors. You should plan on pension checks that are ~25% less than promised.” – Bill Sardi on Lew Rockwell July 19, 2012

http://lewrockwell.com/sardi/sardi226.html

Fri, 08/03/2012 - 14:12 | Link to Comment john_connor
john_connor's picture

The increased frequency of Hilsenrath propaganda wreaks of desperation, ak.a. "the Monti."

Fri, 08/03/2012 - 14:36 | Link to Comment lizzy36
lizzy36's picture

Funny that Hilsenrath presupposes  that what the Fed does actually helps the economy, instead of merely helping wealth transfer.

Fri, 08/03/2012 - 14:55 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

omg!  hilsie&theNYT reach the finals of the bullshit-powered wheelbarrow wealth transfer 4X$4TrilQE relay?

did you see friedman close on that derSpeigel anchor?

Fri, 08/03/2012 - 14:40 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

stolper yesterday, hilsenwrath today

stolper was "right" with the euro flying up 1.6% on his very call;  wtf is happening here?

and hilsie?  did the FED finally throw the poor doggy a repo bone?

unicorns are flying outa my bong here...

Fri, 08/03/2012 - 14:51 | Link to Comment Atlantis Consigliore
Atlantis Consigliore's picture

http://www.forbes.com/sites/kenkam/2012/07/19/bernanke-throws-money-mark...

 

First you destroy the store of value, stocks, homes, then you destroy the savings,  then you destroy the business climate 25, m small businesses.,

put 47 M on foodstamps   7.8 M on ss disability;   then ramp up the stocks before the elelction for the Sheeple...

 

LOL  idiots.  France anyone? 

 

Buy gold take delivery and run from fraudstreet and the banksters. 

Fri, 08/03/2012 - 15:46 | Link to Comment XtraBullish
XtraBullish's picture

Gold and Silver LONG - paper fiat currency SHORT.

The ultimate paired trade.

I love the smell of those torched SHORTS today - Suh-WEET!

BBQ's shorties are fun to watch self-immolate!

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