Why Bloomberg Is Not The WSJ

Tyler Durden's picture

While there are many answers to this rhetorical question, a key one is the schism that exists between the two media behemoths when it comes to the topic of the NEW QE, elsewhere incorrectly called QE3. While the now virtually daily missives from Fed mouthpiece Jon Hilsenrath, whom once has to wonder whether he is more of a part time worker at the WSJ or the New York Fed, are there to force markets ever higher each day, with promises that Bernanke will not sit idly by if the S&P were to ever close red (the S&P being a multi-year highs notwithstanding), and that as he stick saved the European close on Friday, the Fed has lots of additional capacity for more QE, Bloomberg actually has the temerity to ask: why do we need any more QE: after all so far all previous iterations have been a disaster. Sure enough, a few hours after Hilsenrath did his latest Fed planted piece in which he amusingly pretended to be objective about more QE and "sized up" costs of more QE, here comes Bloomberg in its daily Brief newsletter, with a far simpler question: why the hell do we keep doing the same idiocy over and over, hoping and praying to generate inflation, knowing full well if we do get inflation, with global central banks soon to hold half of the world's GDP on their books, it will promptly deteriorate to the "hyper" kind.

From today's Bloomberg Brief:

[S]ome of the impact of QE3 is already priced into equity markets. What’s more, investors are unlikely to react as positively as in the past given that previous rounds of QE failed to have a lasting impact. The impact of QE3 on equity markets is also likely to be overshadowed by the crisis in the euro zone, which will probably worsen again before the end of this year and cause a renewed deterioration in risk appetite. As a result, we expect most benchmark stock indices in Asia to finish 2012 lower than where they are now.

 

QE3 is not a panacea for the U.S. or the global economy, because its effects on the U.S. economy are likely to be  relatively small. In particular, previous rounds of quantitative easing worked by lowering long-term borrowing costs and boosting the supply of credit in the U.S. However, borrowing costs are already very low, while the U.S. financial sector is in much better shape than in 2009-10. As such, the U.S. still looks set to experience lackluster growth over the next few years.

 

Also, QE3 in the U.S. will do nothing directly to address the problems in the euro zone, which have been the main  source of concern across the world in recent years. In short, global growth is likely to remain depressed, whether or not QE3 goes ahead. Against this backdrop, Asia’s exports look set to remain in the doldrums.

Hopefully instead of setting up his own irrelevant strawmen, and then knocking them down with a Fed-dictated script, Hilsenrath, and his profound financial journalist experience, can at least pretend to tackle the questions noted above...

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buzzsaw99's picture

so bloomberg advocates a nyc banker bonus recession? interesting

ratso's picture

If you like gold , you should love QE!

Short Memories's picture

Why? because gold stays exactly where it is a lots of peoples cash savings are wiped out from inflation?

I have gold, I don't want QE

Muppet of the Universe's picture

not in the futures.  I love my paper gold.  honestly, while the system is going, paper gold is the single most valuable commodity there is!

smlbizman's picture

i hope the absence of biderman here is by design and reflects  the integrity, zero hedge possess...since he became a non-trustworty goldman tentacle he broke the first 2 rules of fight club....if so " no soup for you"...biderman

trust is fragile and priceless...

LMAOLORI's picture

 

 

Off topic but with the Seinfeld ref. this is pretty funny

Not So E Z

http://www.tomwoods.com/blog/not-so-e-z/

James_Cole's picture

Bit unfair to knock the WSJ because of their opinion pages. 

dexter bland's picture

AAPL is the new gold. Fed is falling behind in its race with the iPhone.

Very high rate of inflation in AAPL product numbers, more than one every 6 months,that's the beauty of it. Fed needs to get QE3 over with and get started on 4,5,6 if it wants to keep up.

Innovation is the key word Benny Boy. And make it so frigging easy to use that my 3 year old will be borrowing to buy new toys tomorrow for fear of the old ones becoming obsolete while inflation puts the new models out of his reach.

GetZeeGold's picture

 

 

The Pope only listens to CNBC....why are we talking about Bloomberg?

d edwards's picture

What else can the Fed do? Must...get to...the...election...without...monetary...collapse!

LMAOLORI's picture

buzzsaw99 "so bloomberg advocates a nyc banker bonus recession? interesting"

 

 

Bloomberg is for gun control, food control, CONTROL period 

Investors and economists agree QE3 wouldn't be good for economy

ziggy59's picture

Why indeed.. Definition of "insanity" should include picture of the FED.

Muppet of the Universe's picture

When Ben and the Markets are done with their foreplay, they will create a love baby, it will be a fucking monster... 

Insanity is right.  I'm sitting at my desk 6 am this morning, long vix up the asshole, short the market since sunday night highs.  & now all I can do is hope my long since 6 am will negate some of the catastrophic losses I'm gonna feel when the VXX opens.

ebworthen's picture

"For the children, we must do it for the children!"

GetZeeGold's picture

 

 

Actually.....we're kinda doing it to our children.

 

Say thank you Johnny!

 

Thanks fer nuttin mister.......now go screw yourself.

 

 

Stuck on Zero's picture

QE is for the children, Mothers, orphans, and widows.

 

slewie the pi-rat's picture

hey, eb!  didn't see you on this FED string yesterday, so lemme go over this with tyler here, ok?

tyler:

by the time they read what you and chasHSmith are up to here on zH about the FED i'm sure you'll get their undivided attention so they'll be SURE to address the relavant questions responsibly

this is one of the funniest days of my life

i have never seen people this fuking styooopid  pretending to have the moral high ground.  what the hell can the NYTimes be thinking?

why if hilsenrath doesn't address these questions properly, just send him chasHSmith's latest and straighten him out! 

mayor bloomberg i'm sure is flabbergasted at the advanced thinking here on zH about the FED too:  it is evil!  it must be abolished!  at once!

i'm not certain the mayor of NYC and the FED guy at the NYT can rise to the level of zH and charles"jihad"BinLadenH.Smith.  ontologically, it may be "beyond" their shitheaded comprehension

:>  the FED is EVIL.  case closed, BiCheZ!  and he is gonna put up more essays about it too.  you did know that, right?  you are the publisher here, right?

maybe they will pay you to re-publish charlesBinLaden in their on-line "blogs"

you do know what zH published there don't ya?  tyler?  you didn't put anything"personal" into the main page intro so maybe you actually do not have a fuking clue what is going on here:

Guest Post: The Rot Runs Deep 1: The Federal Reserve Is A Parasitic Wealth Transfer Machine

you should put a couple of "publisher's imprimaturZ" on the string with all the other brainiacs so mayorB and jonH and the NYT ownership knows EXACTLY where zH stands on the FED

The Federal Reserve is a force of evil that should be abolished at once.

charles is gonna take down theGreatSatan with the zH BiCheZ tyler! 

they are rarin to gooo and there are only about three zeroHeads why have ever heard of a psychological 'game people play' called "ain't it awful"

so ya only hafta worry about pulling the string on 2-3 people like myself and:  no problemos here!  i forgot to take my meds and need to see a shrink!  b/c i'm not anti-orwellian enuf i guess <sob>

i don't think ya gotsta worry about other publishers' strawMen or a lowlife like jonH "pretending" anything with intellectuals such as yourself and charles"jihad"BinLadenH.Smith making certain there is NO ROOM for pretense ever again

CHS and tyler are the "last word" on all questions regading the FED

IT iS  EVIL.  "we" must abolish it!  AT ONCE!!!

well!  that's that.  not only that but the cure for cancer is revealed there also:  in one of the comments

if you can't get these NY asswipes like mayorB and jonH to deal RESPONSIBLY with questions of the FED, QE and inflation, just send them the zH archives and threaten them:  if they don't answer to you correctly here:  THEY are evil TOO!

and when you and charles rid the world of the evil GREAT satan

why not rid the world of alcohol, drugs and porn too?  why stop with the centralBanks when you can do sex, drugs AND money... b/c they are ALL evil

we may hafta put all the fuking blacks, wetbacks and women (also can be EVIL)  in prison too but incrementally, on the margins, it's really only a short distance from where we are NOW

and fat people?  hey, why not?  e.v.i.l.  they're worse than people with birth defects!

instead of wars on poverty, drugs, terrorism, libya, iran and syria

just have the WAR ON EVIL!

and if anything IS evil, why just abolish it!  at once!

and just BiCh-slap those ignorant NY anti-intellectual propaganda-meisters till the kingdom cums!

imagine! those scum-bag low-life pretenders!  just pound them into the fuking ground, tyler! 

and KEEP DRINKING!

you must be making a FORTUNE with this campaign for truth and no more pretense about the FED;  the future looks great! 

i'm so happy for you and charles"jihad"BinLadenH.Smith i'm tearing up!  not only is he totally gonna jihad  the FED b/c it is evil, he is also anti-orwellian!  you guys are gonna save the USA from its orwellian problems b/c he is CHS and he can rid us of the EVIL FED

bless you both!  this is wonderful what you guys are doing for free speech here!

10,000+++ people opened that page! 

you da man!  if yer gonna jump the shark, jump it b/c it is EVIL!

thus spake zerothustra!

 

LawsofPhysics's picture

Do banks and financial houses (paper-pushers) really need QE with ZIRP?  ZIRP is fucking QE!!!!  No interest literally assumes that there is no real cost for capital creation/deployment.

Can't wait for ZIRP.

Just think of how successful my business will be once they pay me to take out a large business loan.

LawsofPhysics's picture

Negative Interest Rate Policy.

 

Look at some of the TIPS bonds, they have negative yields already. Retirees must now become bond traders in order to survive.  Savers will continue to be punished as banks charge them to store their money.  Pretty sad when putting your cash under the mattress is a safer investment. - FAIL

I am more equal than others's picture

A purple NIRPuple.  Pinch that money titty and twist....

Jlmadyson's picture

Chief Hilsenrath reporting to duty.

Must obfuscate this tragedy.

spankfish's picture

"Why Bloomberg Is Not The WSJ"  Don't you mean "Why Bloomberg Is Not The Wall Street Urinal"?

ptoemmes's picture

The enemy of my enemy....sometimes speaks the truth?

LoneStarHog's picture

Bloomturd & Whore Street Journal ... Same Toilet, Different TURDS!

and so on...'s picture

I agree. Before anyone seriously thinks they have found a new paragon of virtue on Wall Street, consider Bloomberg's pathetic track record of forever showing NFP and New Claims improvement, despite no overall improvement. And the condescending questions the Bloomberg hosts ask gems such as David Rosenberg or Meredith Whitney who have the temerity of questioning the Wall St Sell Side community.

Quinvarius's picture

We do QE for the banks because they are leveraged frauds run by looters that need trillions more in bailouts.  Their business model has been to enrich executives at the expense of the bank itself.  They did high volumes of idiot trades that looked good short term but are disasters long term.  The JPM, the current king of Enron accounting, whale trade is just the smallest example of what is going on.  It is quite humorous that anyone thinks we are going to escape QE with our massive issues in 3 years when Japan has been doing it for 20 on a smaller problem.

Accept it.  QE is a banking operation conducted at your expense.  It will continue whether announced or not.  It is for banks, not the economy--Unless you actually believe the banking cancer is part of the economy.

Davalicious's picture

The beatings will continue until Morale improves

DUNTHAT's picture

Good thought Quinvarius.

 

Looks like the only solution is to kill the  banks before they kill us.

chubbar's picture

Jim Sinclair is reporting a new stimulus announced by China this morning.

"Just as I wrote in the headline, there is a story in the UK TELEGRAPH that the Chinese plan to put forward a 800 billion POUND stimulus program of major projects in the provinces. At this time, the Telegraph is the only outlet with the story and has otherwise not been confirmed. If the story is true and the amount is correct then the effect should put upward pressure on all risk assets as this stimulus will be celebrated worldwide. The industrial metals, which have lagged the recent risk on profile, should get a huge boost so I would advise watching copper as an indicator of the veracity of the Chinese stimulus story. Again, if the story has any veracity all asset classes except debt should receive a bid sunday night."

China announces £800bn stimulus to boost confidence
China has announced a total of 8 trillion yuan (£800bn) of "stimulus projects" to try to boost confidence in an economy that appears to be cooling faster than expected.
By Malcolm Moore, in Beijing
7:00PM BST 26 Aug 2012

One Chinese province after another has stepped forward over the last fortnight to announce their plans, in what appears to be a propaganda effort to reassure the public that the economy is still on track.

Meanwhile, Wen Jiabao, the Chinese premier, promised over the weekend that the Chinese government would intensify its efforts to boost the economy in the second half of the year.

On a visit to Guangdong, the heartland of China’s export industry, Mr Wen warned that "there will still be a lot of problems and uncertainties in exports going forward. The third quarter is a crucial period".

Analysts said the government could now steer the value of the yuan lower, after a gain of 4.7pc last year against the dollar. Further export tax rebates could also be used to bail out manufacturers.

China’s export sector is suffering from anaemic demand from Europe and the United States. In the first seven months, exports rose 7.8pc, while imports rose 6.4pc, leaving China in danger of missing its 10pc target for trade growth this year. July’s exports grew at the lowest pace since 2009 and there are reports of factory workers leaving and returning to their home provinces for the first time since the financial crisis.

More…

eigenvalue's picture

Forget about this story. The provincial governments in China can hardly carry out those plans. In China, any investment projects by the local(provincial) governments must get the consent of the National Development and Reform Commission, which is part of the central government. Currently, not many projects are authorised by the NDRC. Besides that, where can those local governments get the funding? Unlike in the US, all the provinces in China must hand in most of the taxes to the central government. Then the central government decides how much money can be given back to the local governments. The central government is on hold right now. Not much money is given back.  Banks are also tightening credit.

Meesohaawnee's picture

and as the ES ramps so does crude. Good thing the margin hiker in chief got a handle on those evil speculators cause god knows we wouldnt want a 20 point ramp for no reason in the es now would we?

DavidC's picture

Look at the Dax and the NASDAQ - German confidence figures in slightly worse than expected, the Dax is now UP 1%, the NASDAQ in pre-market up well over 1%. Absolutely insane.

DavidC

intric8's picture

Bloomberg has the most emotional discipline of all the networks, they know it, and want to stay that way for the benefit of the large amount of traders and professionals who also value emotional discipline. They choose to leave the nonsense to cnbc, who relies/relied on dumbfuck cranks like dennis kneale and kudlow, along with the dreadful maria B (and other females) who actually attempt to seduce you into tuning in the next day, even though your gut tells you somethings dreadfully wrong with that whole cnbc gig.

IrritableBowels's picture

Jim 'Bear Stearns is fine' Kramer

DavidC's picture

EVERYTHING that's going on at the moment is predicated on more QE or bailing out - look at the Dax today after the confidence figures came out worse than expected.

More and more jawboning - that's all the Fed and the ECB have done for months now, and WHY on Earth would they provide more stimulus with the markets back at or near post-2008 highs. What are they aiming at?

I think they've got so target focused that they are GUARANTEEING a sharp drop, whether or not they do anything. This just feels more and more unstable by the day.

DavidC

Meesohaawnee's picture

something dreadfully wrong with CNBC? ya think?

Quinvarius's picture

I can't even stand that channel on mute anymore.

intric8's picture

I used to mute. I would inevitably get annoyed, regardless. Then i wound up shutting the damn tv off.

Hayek FA's picture

I can't wait to see who's face they will put on the Trill note

Likely candidates

B Brenanke

JM Keynes

Friedman

Krugman

It will come with this warning- do not wipe your ass with this note likely to cause a nasty rash-

DavidC's picture

With any of those faces on I wouldn't even take the time to wipe my ass with them.

DavidC

Hayek FA's picture

Buffet "you cannot wipe your ass with gold or silver, much too cold"

LMAOLORI's picture

Hayek FA Buffet "you cannot wipe your ass with gold or silver, much too cold"

 


Buffet can wipe his ass with $$$ our money that's what being a Crony buys you

Buffett's Betrayal

http://www.reuters.com/article/2009/08/04/columns-us-column-buffett-idUSTRE5735JC20090804

 

caimen garou's picture

you forgot curious george

Haager's picture

Marty Friedman on a worthless note? Wouldn't it increase the worth of that paper immediately making it unbuyable? Oh - I got a splendid idea to increase confidence in fiat-money...

Meesohaawnee's picture

Tif cuts full year. Better than expected..Bullish! ... i do find a bit of humor in bubble vision today. if they keep showing that  beluga  whale being dragged in the ocean by her dog im gonna piss in my pants.

machineh's picture

'Jon Hilsenrath ... has to wonder whether he is more of a part time worker at the WSJ or the New York Fed.'

Tyler ... please ... have you never heard of double dipping?

We're talking about a place whose institutional values were established by Timmay Geithner.

Meesohaawnee's picture

which bears the question..If any posters out there had a 19 year old in an institution of higher learning trying to grab a degree in Econ of Finance what would you do?

madcows's picture

I'm not worried. The FED can read the economy like a Dick and Jane book.  And, they have the bullets to mop up excess liquidity, thus controlling inflation. /s