Quote Of The Week

Tyler Durden's picture

Our quote of the week award recipient is none other than Atlanta Fed's Dennis Lockhart for the following pearl of wisdom:

  • LOCKHART SAYS FED WILL BUY BONDS UNTIL U.S. EMPLOYMENT IMPROVES.

Considering that employment is bad because of Fed "bond buys", which are preventing price clearing and discovery, and perpetuating the worst capital misallocation environment in the history of the world (if not for Apple's professional line waiters), one should just replace "buy bonds" with "continue beatings" and "U.S. employment" with "morale."

And as a bonus:

  • FED'S LOCKHART SAYS HAS CONFIDENCE FED WILL KNOW WHEN IT'S APPROPRIATE TO START NORMALIZATION OF MONETARY POLICY

Translation: 'New Normal' monetary policy is like porn

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Mongo's picture

Well, eventually unemployment will go negative and then it wont matter... BITCHEZ

Comay Mierda's picture

What he meant to say was MBS buys will continue until the govt owns all your mortgages.  then they got you by the ballzzzz

Pladizow's picture

If the Fed keeps buying MBS, and people once again start to default, wont the Fed become the worlds biggest landlord?

Print up all the magic paper you want and end up with all of Americas real estate!

eaglefalcon's picture

"If the Fed keeps buying MBS, and people once again start to default, wont the Fed become the worlds biggest landlord?"

 

you havent consider the fed's liability

ParkAveFlasher's picture

One should just replace "buy bonds" with "Paul Krugman" and "U.S. employment" with "Paul Krugman."

redpill's picture

 

Replace Fed with "Ike Turner", replace "buy bonds" with "beating Tina" and replace "US employment improves" with "until she loves me again"

 

Manthong's picture

I tried drinking until I sobered up ..

That didn't work out too well.

12ToothAssassin's picture

Why does this remind me of "The beatings will continue until morale improves"

 

(edit: poster below 'beat' me to it but I still like saying this)

James's picture

Poster below beat me to it.

Edit

Comay Mierda's picture

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

-Thomas Jefferson 

slaughterer's picture

If QE3 fails, the Fed will:

1.) start buying McMansions, McShacks and McMalls in depressed RE markets

2.) start buying REITS and MREITS

3.) start buying SPY/QQQ outright in daily large blocks

If Congress does not deal with the fiscal cliff, the Fed will:

1.) buy Treasuries in unsterilized operations

2.) increase purchases of MBS

3.)  extend ZIRP to 2020

Does not matter if all this does not correspond to their mandate.  It WILL somehow.  

 

GeorgeHayduke's picture

So let me get this straight, the paper that the Fed prints to supposedly buy all the MBS can become worthless, yet the paper indicating land ownership that they bought with their worthless paper will remain valid and valuable? And, the sheople of this country will honor this land ownership paper and become serfs? Seems likely considering how much the sheople have tolerated so far. Sure, the 'Merican sheople will bluster and rumble, but then the owners will wave some flags, start some wars, and threaten to turn off the TeeVee or inconvenience them in small ways like raising gas prices and that will cause the sheople to get in line like it always does.

Of course, those who can see the owner's schemes are running so hard to keep up that they can just watch and talk about it anyway. The owners know most folks who still have something to hold onto will be too busy running to keep or too unwilling to sacrifice it to do anything that might slow down the owner's plans. For all this talk about freedom around here and other message boards, perhaps the only true freedom is in giving up anything that makes you part of the great owner's Ponzi scheme.

Things get much worse before the sheep awaken or before it gets better. Now, it could get worse really fast or continue the slow burn as it has done since Reagan ramped up the corporate-fascist state. Either way, there will be lots of talk and message board posts from pissed off people, but that's about it. In the meantime the owners will be taking everything they can so that by the time the dupes awaken they will find themselves fleeced and only able to take out their anger on each other and low ranking minions of the owners. It's the usual playbook. No need for the owner's side to change anything when their opponents are so distracted and willfully ignorant.

Panafrican Funktron Robot's picture

"perhaps the only true freedom is in giving up anything that makes you part of the great owner's Ponzi scheme."

This is the alpha and omega of the solution to the problem.  Another way of putting it is "the only way to win is not to play".  The deck is stacked so heavily against us, but the deck is meaningless if you don't play the game in the first place.

Bunga Bunga's picture

Then USA becomes the USSA.

whaletail's picture

Then the USA became the USSA.*

*Fixed

Mongo's picture

And since nobody got balls that still wont matter... and in case anybody got balls well... Enter the fema-camps...

hedgeless_horseman's picture

 

 

  • LOCKHART SAYS WHAT THIS COUNTRY NEEDS IS A GOOD $10,000 CIGAR.
mayhem_korner's picture

 

 

Sounds like a Clinton administration redux...

Zola's picture

where do they find these lunatics ?

DavidC's picture

Economics PhD classes.

DavidC

ZackLo's picture

Bernanke got a 1590 on his SAT's though! he must be smart!

This shit is just loonie toons now, Can the world PLEASE drop the dollar like they dropped gold FOR the dollar in the 1930's and switch to something else so we can just get the hyperinflation over already and start over.

Because the fed isn't going to stop until that happens, These people are clinically insane.

So when are they going to tell all these people getting mortgages that they are paid for? Might as well give the people the god damn house if you are buying the loan.

"Considering that employment is bad because of Fed "bond buys", which are preventing price clearing and discovery, and perpetuating the worst capital misallocation environment in the history of the world"

/\ that's it...and they are ALL IN.

"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."

- Ludwig von Mises

LawsofPhysics's picture

Harvard, Yale, Princeton...

mayhem_korner's picture

 

 

Isn't it funny how the media always points out that so-and-so is "Harvard educated" or "a Yale graduate"...they never seem to care about folks who went places where they learned stuff (like on a rugby field or in their dad's woodworking shop).

ParkAveFlasher's picture

There are only so many ways to repackage, "thank you sir may I have another".

rustymason's picture

Crazy like a fox he is. Bernak and his bankster buddies are worth billion$, control trillion$, get big awards, and lotsa chicks. The FED, like our school system, is enormously successful: the worse it does, the more money and power we give it.

earleflorida's picture

fabulous... 

just fabulous!

 

Metalredneck's picture

Translation:  "We're gonna poison you untill you feel better."

LawsofPhysics's picture

And when the yields all go negative the bond holders will start paying off the debt in earnest.  I wonder if the dollar will even last that long?  Millions of people, mostly retirees, paying uncle SAM and banks to lose their money.  "winning"

mkhs's picture

If interest rates went up, savers would become wealthier.  Instead, the Fed prefers the illusion of wealth, the wealth effect.

akak's picture

 

And when the yields all go negative the bond holders will start paying off the debt in earnest.

WHEN?

 

Yields have been negative for years now.

blunderdog's picture

I'm going to keep drinking until my alcoholism is under control.

monmick's picture

"Beer. Both the cause AND solution to all my problems." Homer Simpson

 

"Money Printing. Both the cause AND solution to all our problems." Larry Summers

mayhem_korner's picture

 

 

I note that Homer Simpson and Larry Summers both have the same number of letters in their first and last names. 

hedgeless_horseman's picture

 

 

Same BMI. 

Same wardrobe.

Same expressions.

Coincidence? 

You decide...

A Nanny Moose's picture

The beatings will continue until morale improves.

pods's picture

That is our motto at work!

Unprepared's picture

 

 

   LOCKMIND SAYS FED WILL BUY BONDS AS LONG AS U.S. ISSUES THEM.

SmittyinLA's picture

With mass immigration and "immigration non-enforcement" as policy America will never have no unemployment, so I guess the fed is buying bonds forever.

PeeramidIdeologies's picture

Did it ever matter? Someone once asked me if you need well employed robust middle class to operate the economy of a country? I replied, Take a look around, and I don't mean your town....

Richard Head's picture

These Fed people are either psychopaths or simply retarded.

mayhem_korner's picture

 

 

That is offensive - why can't someone be both? Huh?

Kitler's picture

Why choose?

Retarded psychopaths sounds about right.

machineh's picture

... and they're gonna bang butts until U.S. unemployment improves ... or the vice squad kicks down the door.

mayhem_korner's picture

 

 

The game is almost over, folks.

Cult_of_Reason's picture

Employment is just an excuse for monetizing the debt.

They cannot say Geithner asked us to monetize the debt, so they use the unemployment excuse.

 They know the unemployment is structural and it will not improve anytime soon.

Dr. No's picture

Exactly right.  Its propaganda 101.  Bait and switch.  Create the illusion they actually care about employment when the primary reason is to line their shareholders pockets.  BTW, they must be overflowing by now?

Sofa King Confused's picture

The Fed will buy toxic MBS shit off the bankers books until U.S. Employment improves or until banks are made whole again.

miker's picture

These people are playing "hardball" but it only shows you how serious the situation has become.  Bernanke wants and needs inflation; more than what he has gotten to date.  Alot more.  He sees it as the only way out of this huge mountain of debt and inflated morass of assets.  If things turn south (and they are turning as we speak), and momentum builds, it's game over.  The whole, stinking pile will collapse on itself.  Still, I don't think he can get the inflation without further driving the economy into the ground.  The harder he monetizes, the lower the economy goes.  I personally think it is game over already.  But Bernanke probably feels like he has to try something, anything.

 

lotsoffun's picture

oh.  the day i wish i could meet him on the street.  he just keeps emptying my pockets from a very long distance.  its' brilliant.