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.

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Tippoo Sultan's picture

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

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

TruthInSunshine's picture

Hilsenrath is a dirty, dirty little whore.

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

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

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

Acorn10012's picture

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

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.

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

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.

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.

SilverTree's picture

What, a reach-around?

notbot's picture

From the mouth of the Bernank straight to us.

sabra1's picture

do you know where his mouth has been?

SheepRevolution's picture

From his asshole, if anything..

WhyDoesItHurtWhen iPee's picture

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

Blopper's picture

2nd chance for Hilsenrath to shame himself again.

jeff314's picture

jew dont have shame...

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. 

Bay of Pigs's picture

All Hail the Hilsenrath!

Manthong's picture

Poster child for the term “useful idiot”.

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.

Jlmadyson's picture

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

Bankers needing capital seething out your face son!

Hype Alert's picture

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

slaughterer's picture

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

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".

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.

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?

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.

Jlmadyson's picture

Oh the flow will continue at all cost.

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.

Martial's picture

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

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

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

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'? 

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....

 

 

WeekendAtBernankes's picture

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

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.

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.

Bastiat's picture

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

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.

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. 

 

slaughterer's picture

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

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.

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?

Bullionaire's picture

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

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. :(

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

Haager's picture

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