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When One Hilsenrath Is Just Not Enough, Here's Another: "Bernanke Signals Readiness To Do More"

Tyler Durden's picture




 

In the immortal words of the Jackson 5: "I'll Be There" seems to be the meme du jour - which appears to us to be the same message that Bernanke (and his proxy Hilsenrath) have been on for a few years now. However, in case you hadn't had enough sycophantic central-bank-fellating 'hope', the WSJ's front-man just reiterated for one and all that Ben's our man. In our subtle opinion, it seems however that perhaps Bernanke was a little disingenuous with his talk of 'policy tool effectiveness' - as clearly his efforts have not had the desired economic effect so far (or he would not need to reiterate the ability to do more of the same).

Jon Hilsenrath, WSJ: Bernanke Signals Readiness to Do More

Federal Reserve Chairman Ben Bernanke offered a robust defense of the effectiveness of the central bank's easy-money policies in his Friday speech at the Fed conference in Jackson Hole, Wyo., and left little doubt that he is looking toward doing more to give the economy a lift at the Fed's next policy meeting in September.

On The Economy [ZH - clearly helping the "it's still dismal out there" meme - let's hope it doesn't get better anytime soon, or he will really have to show how bad we are]:

Some market participants have been wondering if a run of moderately better economic data of late has changed the Fed's thinking about the economy. Mr. Bernanke left little doubt that he is still deeply dissatisfied with the outlook, describing the economic situation as "far from satisfactory."

...

[It's Cyclical Stupid]
Importantly, the Fed chairman also says that the job market's weakness, to date at least, is the result of cyclical problems in the economy (that is, a lack of demand) and not structural problems (such as a mismatch between the skills people have and the skills employers are looking for.)

...

[which means we are justified in our 'extreme' actions]
The Fed feels it can help address cyclical problems, but not structural problems. In other words, this is a problem where the Fed feels it can help. Of course, he also includes his "no panacea" caveat; Mr. Bernanke would love fiscal policy makers to take actions to support the economy and address long-run deficits. But he doesn't seem to see that as justification for inaction on his front.
...

[and the disingenuous comments begin... jobs, here's your jobs - what are you all complaining about?]
COSTS AND BENEFITS: Mr. Bernanke has said repeatedly that the Fed's decisions about how to use monetary policy depends on an analysis of the costs and benefits of different actions. His analysis, particularly of the Fed's controversial bond-buying programs, heavily emphasizes the benefits and plays down the costs. Two rounds of bond buying have raised overall economic output by 3%, he said, and increased payroll employment by 2 million jobs, he said his staff has estimated.

"A balanced reading of the evidence supports the conclusion that central bank securities purchases have provided meaningful support to the economic recovery while mitigating deflationary risks,"

...

[and finally - they have it all under control, so don't worry]

"The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out further use of such policies if economic conditions warrant,"

 

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Fri, 08/31/2012 - 11:03 | 2752713 Xibalba
Xibalba's picture

Like an old man who can't get it up..."I promise I'll be ready next time"

Fri, 08/31/2012 - 11:08 | 2752736 Brazillionaire
Brazillionaire's picture

Old men don't need Viagra because they can't get it up. They need Viagra because old women are ugly.

Fri, 08/31/2012 - 11:12 | 2752757 MillionDollarBonus_
MillionDollarBonus_'s picture

The 10 year yield is down on the day at 1.59%. The treasury market is showing incredible resilience. My year-end target for the 10 year is 1.00%. Bernanke doesn't need to introduce more Quantitative Easing with such a robust treasury market. I would howeversuggest monetization of other assets such as mortgage backed securities or equities. 

Fri, 08/31/2012 - 11:21 | 2752785 NotApplicable
NotApplicable's picture

Sure the problem is cyclical, in a kind of Fourth Turning or Kondratieff Wave sort of way.

Fri, 08/31/2012 - 11:44 | 2752869 Manthong
Manthong's picture

Good for cyclical, not structural problems?

Well Ben, maybe freshened blood works for the first half dozen races, but folks are likely to catch on eventually. 

Fri, 08/31/2012 - 11:29 | 2752814 Xibalba
Xibalba's picture

Why not just let the market work?  Is that a revolutionary idea or something?  

Fri, 08/31/2012 - 11:31 | 2752820 john39
john39's picture

that would expose the prasites...  verboten.

Fri, 08/31/2012 - 11:33 | 2752829 BeetleBailey
BeetleBailey's picture

Gee...what's your year end target on FuckBukakke....and don't go dumb and ask "what is that?"...you know what it is putz...

"Robust" treasury market......man you are a hoot...

Fri, 08/31/2012 - 11:34 | 2752831 earnyermoney
earnyermoney's picture

I'll bet you're hoping they monetize your Facebook shares. LOL

Fri, 08/31/2012 - 11:08 | 2752738 vast-dom
vast-dom's picture

OUTFUCKINGRAGEUOUS! WHEN WILL THIS PONZI MOTHERFUCKER AND HIS COUNTERFEITING SCAM DIE?

Fri, 08/31/2012 - 11:18 | 2752775 trebuchet
trebuchet's picture

you can say what you like. 

 

" it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."

In Bens words, which bit of this says "we are done?" This says to me " we waited for recovery to pick up and now its time to act". 

 

I said it here in previous threads last week this speech will be about the unemployment rate, the need to reduce it  and positioned accordingly.

The speech, outlining effectiveness of unconventional monetary tools was saying "it works" so we have to power to do more, dont doubt us

 

This is a "dont short  the euro" speech.... 

 

Time for ZH to bring out the comparison of the Euroland/US CB balance sheet growth charts to see where we could be going...

 

 

Fri, 08/31/2012 - 11:19 | 2752778 LawsofPhysics
LawsofPhysics's picture

That and total debt outstanding for the EZ.

Fri, 08/31/2012 - 11:25 | 2752800 vast-dom
vast-dom's picture

the fed has 6% target unemployment that they could theoretically influence -- we are realistically at over 15% and officially at over 8%. more importantly, QE can't won't and could never improve unemployment just like ZIRP can't do more than punish savers, old people etc. most importantly, a free market can't return to cyclical normalcy with this illegal anti-market QE/NIRP bullshit. Let's have a crash precisely because of QE.

Fri, 08/31/2012 - 11:31 | 2752819 trebuchet
trebuchet's picture

with five years work , the ben and fomc are not goign to let the juggernaut slip over the cliff without a fight. 

I wouldn't hold my breath waiting. 

in their opinion they added 2 m jobs. scale up to work out how much action it will take to get from 8% to 6%. They won't go all the way, they intend to go some of the way

 

im still trying to work out what lever the want to pull to do that... as they said they do the Cost benefit thing... 

 

work that one out and you front run the fed ahead of the pack ... until goldman/thebots jumps in and front runs the front runners.. weekend homework

 

 

Fri, 08/31/2012 - 11:36 | 2752837 vast-dom
vast-dom's picture

your homework will be no more scientific than taking a coin and flipping it over and over until you get tired enough to delude yourself into thinking you can second guess which fucked up innefectual tool will be paraded around for the bankers to extract more free money and the indexes to bloat up on nothing.

Fri, 08/31/2012 - 12:29 | 2753045 Freddie
Freddie's picture

Jackson 5 - because if Obama had a son - he probably would like like Tito, Jermaine (with more Jeri-Curl), honor student Trayvon and pretty much any muslim dude.

Fri, 08/31/2012 - 11:03 | 2752714 SHEEPFUKKER
SHEEPFUKKER's picture

Shocker, more than one A-hole in J-Hole.

Fri, 08/31/2012 - 11:05 | 2752723 kito
kito's picture

the stupidity of the professional investing community never ceases to amaze me............

Fri, 08/31/2012 - 11:22 | 2752789 NotApplicable
NotApplicable's picture

Which bot are you referring to?

Fri, 08/31/2012 - 11:27 | 2752803 trebuchet
trebuchet's picture

Low vols of last few weeks??

 

The Knight bot makers recalled their other models for maintenance :))

Fri, 08/31/2012 - 11:05 | 2752725 john_connor
john_connor's picture

inflation expectations are becoming unanchored as we speak

Fri, 08/31/2012 - 11:08 | 2752733 SHEEPFUKKER
SHEEPFUKKER's picture

Wealth effect bitchez.

Fri, 08/31/2012 - 11:17 | 2752763 LawsofPhysics
LawsofPhysics's picture

Indeed, inflation is very much in the house.  Very easy to get in things one needs, even without "velocity", especially when commoditiy providers decide not to sell, or not to accept your particular flavor of fiat.  The Fed knows this.  The Fed will defend the dollar at some level, looks like the political puppets are being sent a strong message to put their house in order least the treasuries go bidless.  When you are buying 70% of the auctions, you can say "who runs bartertown".

Paging the bond vigilantes, clean up on aisle one...

Fri, 08/31/2012 - 11:26 | 2752809 Spastica Rex
Spastica Rex's picture

Wealth affect.

Fri, 08/31/2012 - 12:00 | 2752946 Liquid Courage
Liquid Courage's picture

or ... to revive and redefine an obsolete word that obviously no-one needed anymore ... The Dealth Effect.

 

Dealth is illusory "Wealth" based on debt. Works for me.

Fri, 08/31/2012 - 12:24 | 2753023 trebuchet
trebuchet's picture

+5 for the "Dealth" word....

Fri, 08/31/2012 - 11:05 | 2752726 fonzannoon
fonzannoon's picture

Ben wants to rumor crude up to $125 before he pulls the trigger....makes a lot of sense...

Fri, 08/31/2012 - 11:24 | 2752797 Dr. Engali
Dr. Engali's picture

So now we get another month of fed speak and Hilsenbarf puke. It's getting a bit exhausting.

Fri, 08/31/2012 - 11:26 | 2752801 kito
kito's picture

no fonz....rumors have limited effect, perhaps oil to 100 or so.....certainly if he actually pulled the trigger now...which he wont....you would see oil to 125 and gold to 2000....but ben doesnt want either of those numbers to materialize....

Fri, 08/31/2012 - 11:27 | 2752811 fonzannoon
fonzannoon's picture

Kito if rumors had limited effect we would be 200pts lower on the S&P.

Fri, 08/31/2012 - 11:34 | 2752830 trebuchet
trebuchet's picture

@kito, his speech surprisingly emphasized "wealth effect" = confidence.....  seems like he DOES want those numbers

Fri, 08/31/2012 - 11:07 | 2752727 Temporalist
Fri, 08/31/2012 - 11:06 | 2752728 mrktwtch2
mrktwtch2's picture

fat pig michael moore says romney will win..

Fri, 08/31/2012 - 11:08 | 2752737 surf0766
surf0766's picture

Who care what the communist sympathizer says

Fri, 08/31/2012 - 11:29 | 2752817 Spastica Rex
Spastica Rex's picture

"Communist" that's so 1989.

Fri, 08/31/2012 - 11:38 | 2752846 ArrestBobRubin
ArrestBobRubin's picture

The updated term is Obammunist

Fri, 08/31/2012 - 11:39 | 2752848 surf0766
surf0766's picture

Dam that's good !

Fri, 08/31/2012 - 12:06 | 2752959 walküre
walküre's picture

In reality they're all just beneficiaries of the Almighty Fed.

That makes them all FEDOMMUNISTS

Fri, 08/31/2012 - 11:32 | 2752823 i-dog
i-dog's picture

Wavering Obomberbots?

Fri, 08/31/2012 - 11:34 | 2752834 surf0766
surf0766's picture

He and the rest of the communist sympathizers can move to cuba. They seem to want their healthcare so bad. Why wait until it is implemented here.

Fri, 08/31/2012 - 11:52 | 2752912 viahj
viahj's picture

no ben & jerry's in Cuba?

Fri, 08/31/2012 - 12:56 | 2753136 surf0766
surf0766's picture

They can move with him too. 

Fri, 08/31/2012 - 11:13 | 2752759 LouisDega
LouisDega's picture

Roger and me peak Bitchezzzz

Fri, 08/31/2012 - 11:27 | 2752812 Dr. Engali
Dr. Engali's picture

I really wish you wouldn't put down fat pigs in that way. Fat pigs are important..they provide things like ham, sausage , and bacon. Michael Moore on the other hand.....

Fri, 08/31/2012 - 12:31 | 2753050 earnyermoney
earnyermoney's picture

I think MM has the itch to make some new films. Must of exhausted his stash after 4 years of Barry.

Fri, 08/31/2012 - 12:56 | 2753139 surf0766
surf0766's picture

He ate his stash.

Fri, 08/31/2012 - 11:08 | 2752731 Snakeeyes
Snakeeyes's picture

It won't do any good. Only pump up the stock market. If he does it and Romney wins, kiss Bernanke goodbye.

http://confoundedinterest.wordpress.com/2012/08/31/bernanke-hints-a-more-monetary-easing-chicago-and-milwaukee-prints-disappoint/

Fri, 08/31/2012 - 11:08 | 2752734 IndicaTive
IndicaTive's picture

"OK fine go ahead, but just the tip...for now anyway."

Fri, 08/31/2012 - 11:10 | 2752747 Hondo
Hondo's picture

I can't believe how bad this propaganda is.....it is irrational, and desparate in nature.  It assumes the majority of people are morons.

Fri, 08/31/2012 - 11:12 | 2752752 ArrestBobRubin
ArrestBobRubin's picture

You mean they're not?

Fri, 08/31/2012 - 11:11 | 2752754 surf0766
surf0766's picture

98% are morons. The whole truth hurts

Fri, 08/31/2012 - 14:42 | 2753469 Hohum
Hohum's picture

Surf0766,

That is the ZH attitude in a nutshell.  98% are morons; we are the only enlightened ones.  If ZHers think about the consequences of their policies on the 98%, it's probably with a f*** them attitude. 

If this were a rural world where the enlightened could separate themselves from these morons, libertarian philosophy would be great.  In fact, it may happen someday after a few billion perish.  Then the ZHers will fight over who avoids milking the cow and weeding the fields.

Fri, 08/31/2012 - 11:10 | 2752750 ArrestBobRubin
ArrestBobRubin's picture

"Forget what happened then, let me live again! I want you back"

Obama on QE, via Michael Jackson

Fri, 08/31/2012 - 14:13 | 2753394 ZeroAvatar
ZeroAvatar's picture

"Ben, the two of us need look no more, We've both found what we were looking for."

Fri, 08/31/2012 - 11:14 | 2752765 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Bernank is covering your J-Hole.

Let that one sink in for a moment.

Yeah, exactly.

Fri, 08/31/2012 - 11:14 | 2752766 Inthemix96
Inthemix96's picture

Do any of you lot know if such a learned man as the bernank can do something so straight forward as to be embarasing if you cannot, like change a light bulb?  Put oil in his car?  Do a little grass cutting?  Trim some hedges in the front garden?  Paint a wall?  Or something really challenging like tile the kitchen?

I bet you 100 billion dollars this fucking imbecile couldnt wipe has arse without a delegation of help.  If anyone gets the chance to ask if he can do any of the above, he should say no.  Do humanity a favour, and kick his fucking head in until he can.

Fucking four foot fucking prick

Fri, 08/31/2012 - 11:16 | 2752771 lolmao500
lolmao500's picture

Israel will bomb Iran next week apparently. So good luck doing QE after that.

http://www.haaretz.com/opinion/the-secret-reason-for-netanyahu-s-timing-...

In private conversations, Netanyahu has said there is nothing after Election Day, which falls on November 6. If Obama wins, Netanyahu says, he will take revenge for the overt efforts to defeat him and will prevent Netanyahu from attacking Iran. For this reason, and only this reason, Netanyahu must go on the offensive over Iran now - some reliable sources say he will probably do it during the Democratic National Convention in North Carolina next week - when the timing is the worst for Israel. That's the price of getting portrayed as being a member of the Romney-Netanyahu-Sheldon Adelson trinity.

 

Fri, 08/31/2012 - 12:19 | 2753005 gojam
gojam's picture

That 'quote' doesn't make any sense.

Fri, 08/31/2012 - 11:18 | 2752779 ThunderingTurd
ThunderingTurd's picture

Peak frustration

Fri, 08/31/2012 - 11:19 | 2752782 jefe95
jefe95's picture

Hasn't he been "signaling readiness" since this whole charade started?  Every redlined FOMC speech says the same recycled garbage.

 

Transitory

Mild

blah, blah, blah

Fri, 08/31/2012 - 11:39 | 2752787 Zero Govt
Zero Govt's picture

In the immortal words of the Jackson 5: "I'll Be There" 

In the immortal words of serial narcissist, Micheal Jackson, "look in the mirror" if you wanna change the world

Benny could take a long hard look at the Feds role in the economy, its rotten private cartel monopoly on money, and see what a destructive force corruption in the hands of 0.01% has on the 99.99 

instead of going to the plastic surgeon, Ben could simply top himself and give everyone and the economy a big relief, the economy to re-set (without Fed meddling), money to be free market (at last!) and green shoots to appear faster than you can say, "5 years and $5 Trillion of miserable Fed failure"

Fuck off and die Fed ...the best economic policy by far

Fri, 08/31/2012 - 11:23 | 2752790 Nobody For President
Nobody For President's picture

Unanchors aweigh!

Fri, 08/31/2012 - 11:31 | 2752793 khakuda
khakuda's picture

Just read it and Bernanke says some things that really stood out as just plaing wrong and should scare the crap out of people that he has NO CLUE:

1.  Every recovery has seen unemployment go back to pre-recession levels and he sees little evidence of a structural change in the economy which would preclude this from being the case this time.  Are you kidding buddy?  All the crap you own is made in China, there are fewer jobs here now.  That's as structural as it gets.  The housing bubble just masked it.

2.  The Fed's policies created 2 million jobs.  Really?  From your ass to God's ears.

3.  The Fed's asset purchases will make money for taxpayers and reduce the Federal debt and deficit.  Um, that sounds magical.  Conjur up printed money and invest it in something with a return.  Can't lose, can we?  And what about the taxpayers that don't earn any interest anymore...did they win?  What taxes are they able to pay to reduce the deficit?  What about the fact that free money allows Congress to keep running deficits and, in fact, make them larger.

WRONG, WRONG, WRONG.  Asshole

 

Fri, 08/31/2012 - 11:36 | 2752839 Spastica Rex
Spastica Rex's picture

Just change your definition of "job" a little bit, then you'll see.

Fri, 08/31/2012 - 11:38 | 2752844 i-dog
i-dog's picture

It's a[nother] "calm the sheep" speech. Can't have them getting skittish just as they near the top of the ramp to the killing floor.

Fri, 08/31/2012 - 11:24 | 2752794 OneTinSoldier66
OneTinSoldier66's picture

Hilsenrath and Bernanke would probably be better off avoiding my wrath today.

Fri, 08/31/2012 - 11:24 | 2752795 Tinky
Tinky's picture

"on the verge of action"!

From the NY Times:

Fed Chairman Makes Case for New Steps to Spur Growth

 

By BINYAMIN APPELBAUM

Ben S. Bernanke delivered a detailed and forceful argument for the benefits of new steps to stimulate the economy, reinforcing earlier indications that the Fed is on the verge of action.

 

Fri, 08/31/2012 - 11:40 | 2752851 i-dog
i-dog's picture

Fucking Zionist shills everywhere! There's never just one cockroach....

Fri, 08/31/2012 - 11:24 | 2752798 XtraBullish
XtraBullish's picture

Why such anger? Just sell fiat (USD's) at every turn and own the pm's and you will sail away to safety and wealth. The Fed and the ECB are gold and silver's greatest friends.

Fri, 08/31/2012 - 11:44 | 2752883 SmoothCoolSmoke
SmoothCoolSmoke's picture

You may be right...but I find it hard to believe TPTB don't have some plan to confiscate all PMs  should it suit their needs.

Fri, 08/31/2012 - 12:57 | 2753144 i-dog
i-dog's picture

They have been confiscating ... via the tens of thousands of 'Cash 4 Gold' stalls. The majority of muppets have been cleaned out and the few remaining holders are neither worth further effort nor gullible/easy targets.

Fri, 08/31/2012 - 11:26 | 2752804 Jim B
Jim B's picture

Ben.....  We are in a deleveraging period.

You can let it happen quickly or drag it out for a decade destroying the dollar with inflation.

That is all there is and there is NOTHING you can do about it!  Getting it over quickly seems to be a better option!

PS.  Quit transferring bank liabilities to the taxpayer!

 

Fri, 08/31/2012 - 11:40 | 2752856 Spastica Rex
Spastica Rex's picture

It's not just temporary deleveraging; they're managing down the "standard of living" of middle class Americans. Don't worry, they're not changing the defintion, it's just that fewer and fewer people will fit it. I think it will take decades.

If it's any consolation, China et al appreciate America taking one for the team.

Fri, 08/31/2012 - 11:44 | 2752882 Jim B
Jim B's picture

The deleveraging will end eventually, but you are 100% correct, the standard of living must drop.  As a country, we have lived beyond our means for a long time.  It is time to pay the piper, the next generation is probably screwed!

 

Fri, 08/31/2012 - 11:48 | 2752898 Jim B
Jim B's picture

If China is smart they will trade their Fiat US dollars they hold for real assets......  While they can.

Fri, 08/31/2012 - 11:58 | 2752935 viahj
viahj's picture

who owns all of those cash 4 gold shops? (or who is buying that gold from those shops?)

Fri, 08/31/2012 - 12:07 | 2752966 Spastica Rex
Spastica Rex's picture

They don't have to redeem them all, just enough to get what they need. I think it's already been done. "Know when to hold 'em, know when to fold 'em." yadda, yadda.

Fri, 08/31/2012 - 12:18 | 2752999 LawsofPhysics
LawsofPhysics's picture

Sounds good to me, especially if they buy more of our soybeans.  Now about the new price...

Fri, 08/31/2012 - 12:40 | 2753083 techperson
techperson's picture

Wrong, Spastica, they will change the definition. It's like women's clothing: "You haven't really put on much weight, you can still get into a size 6 (that used to be labled size 10)."

In the future: poverty level < $15,000, middle class $15,000 to $50,000, upper class $50,000 and up, and pay your fair share of taxes to support the war!

Fri, 08/31/2012 - 12:55 | 2753132 Spastica Rex
Spastica Rex's picture

Oh, I think everybody will still think they're "middle class;" classlessness is a defining aspect of American culture. If the accoutrements aren't there, it will be your own damn fault. There will be enough "hard working people" driving around in 1 ton pickups towing 5th wheel toy haulers to make it believable.

 

 

 

Fri, 08/31/2012 - 11:28 | 2752815 apberusdisvet
apberusdisvet's picture

The Rothschild cabal is oh so close to the final touches on their global totalitarian government agenda.  For this reason, the German court ruling must be favorable to massive printing, because the obvious result of any defaults (domino theory in real time) would show that the member banks of the cartel are truly insolvent.  If the ECB prints, then Ben will have to.

But maybe, just maybe, TPTB want massive defaults and bankrupcies, with JPM and GS alone emerging from the debris under the auspices of a UN dictatorship.  Here in the US, there are obvious plans for martial law and the signs are clear to see.  Does the UN grant Barry a special fiefdom?

So many conspiracy theories; so little time.

 

Fri, 08/31/2012 - 11:32 | 2752826 intric8
intric8's picture

What other nonsense would you expect to come out of the jack hole?

Fri, 08/31/2012 - 15:06 | 2752827 scatterbrains
scatterbrains's picture

I still need to see gold close above 1675ish.  I suspect the dollar is bottoming out right here while gold is hitting a ceiling after looting the sell stops around 1675ish on the other hand the chart looks like a potential flag before a gap and run next week.

Fri, 08/31/2012 - 11:37 | 2752843 JR
JR's picture

What would be the public reaction if the CEOs of Wal-Mart and Target and Costco and Home Depot and Lowe’s and Macy’s had a meeting and it was held in secret? Wouldn’t there be some objections based on collusion and price fixing?

My point: these are the central bankers, the finance ministers, the insider market participants and their Hilsenrath mouthpieces from around the world confabbing at Jackson Hole, deal-making in hallways and behind closed doors. Why are they there? To listen to me?

No!

Cartels are a special case of explicit collusion, conspiring against the people “to limit open competition by deceiving, misleading, or defrauding others of their legal rights.”  

These J-Hole participants are there to take part in the forming of a world government. They are there to learn how to control the world’s resources; they know if they don’t go there they are not going to be one of the world elites.

They want to be there when the deal is struck

 

Fri, 08/31/2012 - 11:39 | 2752847 NEOSERF
NEOSERF's picture

From MW buried and getting no press considering the huge implications of Italy being formally sucked into the abyss and Weidmann quitting

MADRID (MarketWatch) -- German Chancellor Angela Merkel has asked Italian Prime Minister Mario Monti to hold off on a request for a bailout, according to a report in Spanish daily El Mundo on Friday. Merkel reportedly made the request to Monti at their meeting in Berlin on Wednesday, and the newspaper said she would make the same request of Spanish Prime Minister Mariano Rajoy when they meet next Thursday. The efforts by Merkel are reportedly aimed at calming an internal crisis at the Bundesbank, whose central bank chief, Jens Weidmann, is strongly opposed to any action by the European Central Bank to buy Spanish or Italian government bonds. German newspaper Bild reported in its online edition on Friday that Weidmann has been considering his resignation in recent weeks.

Fri, 08/31/2012 - 11:40 | 2752853 mrdenis
Fri, 08/31/2012 - 11:42 | 2752858 bnbdnb
bnbdnb's picture

Alright small business owners. The fed says things arent going great and they will need to help you out. All you have to do is sit back and watch them give money to some banks. This will improve your business. You don't have to do anything different.

Rinse, repeat.

Fri, 08/31/2012 - 11:41 | 2752861 SmoothCoolSmoke
SmoothCoolSmoke's picture

Talking (shit-) heads on CNBC are babbling on like Ber-shankie just ANNOUNCED QE-infinity.  Jesus H. Christ!

Fri, 08/31/2012 - 11:42 | 2752865 steve from virginia
steve from virginia's picture

 

The endless curve-fitting exercise that is ZeroHedge doesn't know when to quit.

 

Enough with the breathless QE wishcasting already, it isn't going to happen.

 

QE = more loans.

 

Fiscal stimulus = more loans.

 

There is zero real economy productivity to the loans, no economic point to any QE or other non-emergency discount window operations. (It does help out Bernanke's banker buddies ...)

 

More loans = the real likelihood of insolvent central banks. This includes more loans by the private sector.

 

The public sector balance sheet is footed in private sector: 'reserve' increases are liabilities on private sector accounts. Sorry, there are no free lunches anywhere on this planet.

 

Even if the central banks wants to give away money, they have to 'get it' from the private sector. If they give away their 'own money' or offer unsecured loans they are simply another defunct finance entity making bad loans just like all the other defunct banks.

 

If all the banks are insolvent including the central banks there are incentives to remove whatever currency can be had into the Posturepedic- or the Backyard National Banks. Currency will always have worth because it can be exchanged on demand for gasoline.

 

Bernanke/Draghi are smart enough to realize this, so far there are no runs out of bank accounts in the United States as there are in Europe. The bank/currency runs in Europe are an indication of the awareness that the ECB and sovereign central banks have been making unsecured loans.

 

There is also little increase in asset purchases (a run out of currency). There is also little in the way of ongoing deleveraging/deflation. 'Growth' talk is cheap and no shortage of believers.

 

Any increase in the gold price would be reflective of run out of currency rather any increase in amount of loans/'money' supply. The quantity of money isn't important if its quality is altered as is occurring now.

Fri, 08/31/2012 - 11:46 | 2752889 bidaskspread
bidaskspread's picture

Thank god for Ben Bernake; I was worried treasury yields might cover inflation.

Fri, 08/31/2012 - 11:59 | 2752938 Michelle
Michelle's picture

BB won't do QE unless there is an indication of stress in the markets, i.e. lack of liquidity. As for bolstering the economy, BB has communicated over the years that there's only so much the Fed can do and Congress must have the "political will" to support the economy where the Fed cannot. Same old shit, different year.

Fri, 08/31/2012 - 11:59 | 2752940 Hedgetard55
Hedgetard55's picture

Ben teasing the market again.

Fri, 08/31/2012 - 12:16 | 2752992 LawsofPhysics
LawsofPhysics's picture

Japan has been "facing bankruptcy" for 30+ years, where have you been?

Fri, 08/31/2012 - 18:41 | 2754040 Aquaman
Aquaman's picture

BREAKING NEWS!!!!!:    This just in..... Japan is really, really going bankrupt (before it was just one-really).  Bernanke is really really reall really really (carry the 2, plus the hilsenrath ones) realy really really really going to do QE. 

Fri, 08/31/2012 - 12:06 | 2752958 YesWeKahn
YesWeKahn's picture

Two rounds of bond buying have raised overall economic output by 3%, he said, and increased payroll employment by 2 million jobs, he said his staff has estimated.

at the same time gas price is back to record high and food is raising 100%.

His stuff are bunch of ants or pigs? They don't eat real good and never need to travel far from their holes. What a facking idiot!

Fri, 08/31/2012 - 12:36 | 2753070 Brokenarrow
Brokenarrow's picture

Does anyone read Joe Weisenthal at Business Insider? You can google him at punk-ass-shill-bitch. He refers to the wsj/fed shill at "Hilzy":) he thinks that manipulating the markets is "swell." I would love to bitch slap him across the room. Don't ever click his cramer wannabee, jive, ws minion, butt-boy stories. Mkaes me fucking sick. His boss, the biggest dot.com criminal of the 90's taught him everything he knows.

Fri, 08/31/2012 - 12:36 | 2753071 Brokenarrow
Brokenarrow's picture

Does anyone read Joe Weisenthal at Business Insider? You can google him at punk-ass-shill-bitch. He refers to the wsj/fed shill at "Hilzy":) he thinks that manipulating the markets is "swell." I would love to bitch slap him across the room. Don't ever click his cramer wannabee, jive, ws minion, butt-boy stories. Mkaes me fucking sick. His boss, the biggest dot.com criminal of the 90's taught him everything he knows.

Fri, 08/31/2012 - 14:08 | 2753375 XtraBullish
XtraBullish's picture

I love the smell of barbecued shorts on a Barnank-speak day! The hedgies are getting roasted AGAIN and the SQEEZE is sublime!

Never underestimate the replacement power of equities within a hyperinflationary spiral! 

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