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When One Hilsenrath Is Just Not Enough, Here's Another: "Bernanke Signals Readiness To Do More"
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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Like an old man who can't get it up..."I promise I'll be ready next time"
Old men don't need Viagra because they can't get it up. They need Viagra because old women are ugly.
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.
Sure the problem is cyclical, in a kind of Fourth Turning or Kondratieff Wave sort of way.
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.
Why not just let the market work? Is that a revolutionary idea or something?
that would expose the prasites... verboten.
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...
I'll bet you're hoping they monetize your Facebook shares. LOL
OUTFUCKINGRAGEUOUS! WHEN WILL THIS PONZI MOTHERFUCKER AND HIS COUNTERFEITING SCAM DIE?
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...
That and total debt outstanding for the EZ.
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.
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
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.
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.
Shocker, more than one A-hole in J-Hole.
the stupidity of the professional investing community never ceases to amaze me............
Which bot are you referring to?
Low vols of last few weeks??
The Knight bot makers recalled their other models for maintenance :))
inflation expectations are becoming unanchored as we speak
Wealth effect bitchez.
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...
Wealth affect.
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.
+5 for the "Dealth" word....
Ben wants to rumor crude up to $125 before he pulls the trigger....makes a lot of sense...
So now we get another month of fed speak and Hilsenbarf puke. It's getting a bit exhausting.
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....
Kito if rumors had limited effect we would be 200pts lower on the S&P.
@kito, his speech surprisingly emphasized "wealth effect" = confidence..... seems like he DOES want those numbers
Sweet little Michael:
http://www.youtube.com/watch?v=74RUJLOxS9U
fat pig michael moore says romney will win..
Who care what the communist sympathizer says
"Communist" that's so 1989.
The updated term is Obammunist
Dam that's good !
In reality they're all just beneficiaries of the Almighty Fed.
That makes them all FEDOMMUNISTS
Wavering Obomberbots?
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.
no ben & jerry's in Cuba?
They can move with him too.
Roger and me peak Bitchezzzz
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.....
I think MM has the itch to make some new films. Must of exhausted his stash after 4 years of Barry.
He ate his stash.
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/
"OK fine go ahead, but just the tip...for now anyway."
I can't believe how bad this propaganda is.....it is irrational, and desparate in nature. It assumes the majority of people are morons.
You mean they're not?
98% are morons. The whole truth hurts
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.
"Forget what happened then, let me live again! I want you back"
Obama on QE, via Michael Jackson
"Ben, the two of us need look no more, We've both found what we were looking for."
Bernank is covering your J-Hole.
Let that one sink in for a moment.
Yeah, exactly.
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
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.
That 'quote' doesn't make any sense.
http://www.bloomberg.com/news/2012-08-31/bernanke-says-he-wouldn-t-rule-out-further-bond-buying.html
spin machine is at it
Peak frustration
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
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
Unanchors aweigh!
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
Just change your definition of "job" a little bit, then you'll see.
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.
Hilsenrath and Bernanke would probably be better off avoiding my wrath today.
"on the verge of action"!
From the NY Times:
Fed Chairman Makes Case for New Steps to Spur Growth
By BINYAMIN APPELBAUMBen 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.
Fucking Zionist shills everywhere! There's never just one cockroach....
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.
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.
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.
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!
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.
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!
If China is smart they will trade their Fiat US dollars they hold for real assets...... While they can.
who owns all of those cash 4 gold shops? (or who is buying that gold from those shops?)
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.
Sounds good to me, especially if they buy more of our soybeans. Now about the new price...
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!
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.
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.
What other nonsense would you expect to come out of the jack hole?
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.
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
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.
I'm not ready to move ...yet ! http://savejersey.com/wp-content/uploads/2012/08/Screen-shot-2012-08-31-...
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.
Talking (shit-) heads on CNBC are babbling on like Ber-shankie just ANNOUNCED QE-infinity. Jesus H. Christ!
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.
Thank god for Ben Bernake; I was worried treasury yields might cover inflation.
Protect Yourself From Debased Currencies, Jim Rogers Style
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.
Ben teasing the market again.
Breaking; Japan facing bankruptcy
Japan has been "facing bankruptcy" for 30+ years, where have you been?
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.
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!
Spain capital outflows rise nearly 40 percent in June
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.
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.
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!