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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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Mon, 08/27/2012 - 08:06 | 2740484 buzzsaw99
buzzsaw99's picture

so bloomberg advocates a nyc banker bonus recession? interesting

Mon, 08/27/2012 - 08:11 | 2740495 ratso
ratso's picture

If you like gold , you should love QE!

Mon, 08/27/2012 - 08:17 | 2740505 Short Memories
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

Mon, 08/27/2012 - 08:27 | 2740520 Muppet of the U...
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!

Mon, 08/27/2012 - 09:03 | 2740599 smlbizman
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...

Mon, 08/27/2012 - 12:19 | 2741063 LMAOLORI
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/

Mon, 08/27/2012 - 13:17 | 2741233 James_Cole
James_Cole's picture

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

Mon, 08/27/2012 - 08:47 | 2740561 dexter bland
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.

Mon, 08/27/2012 - 08:15 | 2740499 GetZeeGold
GetZeeGold's picture

 

 

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

Mon, 08/27/2012 - 08:59 | 2740590 d edwards
d edwards's picture

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

Mon, 08/27/2012 - 12:29 | 2741047 LMAOLORI
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

Mon, 08/27/2012 - 08:07 | 2740487 ziggy59
ziggy59's picture

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

Mon, 08/27/2012 - 08:14 | 2740494 Muppet of the U...
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.

Mon, 08/27/2012 - 08:08 | 2740488 ebworthen
ebworthen's picture

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

Mon, 08/27/2012 - 08:38 | 2740523 GetZeeGold
GetZeeGold's picture

 

 

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

 

Say thank you Johnny!

 

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

 

 

Mon, 08/27/2012 - 10:11 | 2740752 Stuck on Zero
Stuck on Zero's picture

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

 

Mon, 08/27/2012 - 11:57 | 2741017 slewie the pi-rat
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!

 

Mon, 08/27/2012 - 08:09 | 2740489 LawsofPhysics
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.

Mon, 08/27/2012 - 08:29 | 2740521 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Can't wait for NIRP?

Mon, 08/27/2012 - 08:35 | 2740531 LawsofPhysics
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

Mon, 08/27/2012 - 10:08 | 2740747 I am more equal...
I am more equal than others's picture

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

Mon, 08/27/2012 - 08:09 | 2740490 Jlmadyson
Jlmadyson's picture

Chief Hilsenrath reporting to duty.

Must obfuscate this tragedy.

Mon, 08/27/2012 - 08:09 | 2740491 spankfish
spankfish's picture

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

Mon, 08/27/2012 - 08:11 | 2740493 ptoemmes
ptoemmes's picture

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

Mon, 08/27/2012 - 08:12 | 2740497 LoneStarHog
LoneStarHog's picture

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

Mon, 08/27/2012 - 13:17 | 2741231 and so on...
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.

Mon, 08/27/2012 - 08:13 | 2740498 Quinvarius
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.

Mon, 08/27/2012 - 08:26 | 2740518 Davalicious
Davalicious's picture

The beatings will continue until Morale improves

Mon, 08/27/2012 - 10:08 | 2740746 DUNTHAT
DUNTHAT's picture

Good thought Quinvarius.

 

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

Mon, 08/27/2012 - 08:14 | 2740500 chubbar
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…

Mon, 08/27/2012 - 08:41 | 2740546 eigenvalue
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.

Mon, 08/27/2012 - 08:15 | 2740502 Meesohaawnee
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?

Mon, 08/27/2012 - 08:33 | 2740517 DavidC
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

Mon, 08/27/2012 - 08:48 | 2740507 intric8
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.

Mon, 08/27/2012 - 08:51 | 2740566 IrritableBowels
IrritableBowels's picture

Jim 'Bear Stearns is fine' Kramer

Mon, 08/27/2012 - 08:23 | 2740509 DavidC
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

Mon, 08/27/2012 - 08:23 | 2740512 Meesohaawnee
Meesohaawnee's picture

something dreadfully wrong with CNBC? ya think?

Mon, 08/27/2012 - 08:34 | 2740529 Quinvarius
Quinvarius's picture

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

Mon, 08/27/2012 - 08:57 | 2740582 intric8
intric8's picture

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

Mon, 08/27/2012 - 08:25 | 2740516 Hayek FA
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-

Mon, 08/27/2012 - 08:30 | 2740522 DavidC
DavidC's picture

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

DavidC

Mon, 08/27/2012 - 08:50 | 2740562 Hayek FA
Hayek FA's picture

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

Mon, 08/27/2012 - 12:24 | 2741087 LMAOLORI
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

 

Mon, 08/27/2012 - 08:32 | 2740526 caimen garou
caimen garou's picture

you forgot curious george

Mon, 08/27/2012 - 08:42 | 2740548 Haager
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...

Mon, 08/27/2012 - 08:37 | 2740525 Meesohaawnee
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.

Mon, 08/27/2012 - 08:40 | 2740545 machineh
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.

Mon, 08/27/2012 - 08:43 | 2740552 Meesohaawnee
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?

Mon, 08/27/2012 - 08:46 | 2740558 madcows
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

Mon, 08/27/2012 - 08:47 | 2740560 orangegeek
orangegeek's picture

QE-X is already priced into the markets.  We'll keep seeing incremental pushes up in the markets thanks to the algos.

 

Except for the AppleDAQ of course.

Mon, 08/27/2012 - 08:50 | 2740563 Cult_of_Reason
Cult_of_Reason's picture

Re: "whom once has to wonder whether he is more of a part time worker at the WSJ or the New York Fed"

These were exactly my thoughts last night -- Hilsenrath is on NY Fed payroll to help with jawboning.

Mon, 08/27/2012 - 08:51 | 2740567 Anasteus
Anasteus's picture

By no means 'borrowing costs are already very low'. They still can be negative up to -100%, which means the banks will not have to pay anything back. Bailouts will be a pure present from the FED to privileged banks; to those they'll decide to get swallowed by the FED thus becoming its satelites.

Mon, 08/27/2012 - 08:57 | 2740583 metastar
metastar's picture

WSJ/Bloomberg. It is the same false choice as D/R. They are both in bed together.

Mon, 08/27/2012 - 08:57 | 2740586 Meesohaawnee
Meesohaawnee's picture

dont worry. WSJ will blow its wad just like all the other propaganda machines like them and bubble vision. They have been totally exposed (thanks tyler) .They think everyone just fell off the turnip truck. I cant even pic up the WSJ anymore. Evenutually their readership just like the blowhorn will be at all time lows. Its all no longer news but just an outsource ad firm of the fed.

Mon, 08/27/2012 - 08:58 | 2740589 Cranios
Cranios's picture

A better point would be "why do we keep doing the same thing over and over again, hoping to create inflation, when if we do create inflation it will require the central banks to tighten up on the money supply and send the economy into further shock?"

Mon, 08/27/2012 - 09:23 | 2740595 cranky-old-geezer
cranky-old-geezer's picture

 

 

After 4 years of watching QE shower Wall Street with  money while debasing the dollar 50%, who still hasn't figured out QE is a well-crafted plan to loot the economy and the American people?

Why hasn't ZH figured it out yet? 

If ZH has figured it out, why aren't they saying it?

Why does ZH still parrot the "it's insanity, it's not helping the economy" line of thinking? 

It doesn't take much brains to see QE isn't helping the economy.

It doesn't take much brains to call QE crazy, insane, unworkable, ineffective, etc.

It does take some brains to figure out what QE is really doing, transferring wealth from the economy and people to Wall Street and the government.

Yea, it's just a big looting spree. And it's working pretty well.  In 4 years half your wealth has been stolen and given to Wall Street (and the government) via currency debasement.

The dollars in your paycheck have lost half their purchasing power in the last 4 years.  You're working for half the "pay" you received 4 years ago.  Any dolllar-denominated investment you have has lost half its value.

Wana know what's really smart about QE?  Nobody has figured out what they're really doing.  Not economists, not MSM, not financial bloggers, not even ZeroHedge.

Nobody talks about currency debasement, the real effect of QE.  Not economists, not MSM, not financial bloggers, not even ZeroHedge.

Everybody avoids the "H word" like the plague. 

QE is causing hyperinflation.  Yet nobody wants to say it ...except me.

Mon, 08/27/2012 - 09:11 | 2740601 Meesohaawnee
Meesohaawnee's picture

cranky old geezer.. that was addressed yesterday in regards to the article refering the fed being a skimming machine. Go back to sunday afternoon. that was addressed. ZH has figured it out many moons ago  The article is titled "The Rot runs deep"

Mon, 08/27/2012 - 09:08 | 2740610 CapitalistRock
CapitalistRock's picture

This one has all the good emotion we love, but come on. A little inflation does not promptly degrade into "the hyper kind". The federal reserve must make that happen.

In any event, we have far too much inflation as it is, and it is making me poorer by the day. End the federal reserve now and return to sound money.

Mon, 08/27/2012 - 09:13 | 2740624 Meesohaawnee
Meesohaawnee's picture

so TIF guides down full year and it pops 6%..can this get any more comical? I guess its because the lower guidance will make the results next qtr be "better than expected" from bubble vision.

Mon, 08/27/2012 - 09:28 | 2740664 khakuda
khakuda's picture

Hilsenrath's strawman article was so ridiculous, it was just stupid.  Talk about a tool of the Central Planners.

In addition to the negatives Bloomberg cites, we can list TONS more:

What about the effect of ZIRP on retirees who have been burning their seed corn since 2008?  At some point, that becomes a crisis as their capital burns away and they go on welfare.

What about the long term effect on pension plans, nothwithstanding the fictitious accounting maneuver recently approved by Congress which would have sent a business person to jail had he approved such a thing.

What about the effect on the free money allowing Congress to run up a massive deficit because, hey, why not, money is free and unlimited.

What about the negative that QE is a massive ponzi scheme?

What about the problem of QE, once started, is nearly impossible politically to stop?

What about the fact that by diluting the purchasing power of the dollar ("softening" as Hilsenrath calls it...HA!) the Fed is stealing from every working person, ie the people who add value to the economy and giving it to every debtor, ie the people who take value from the economy.

What about the rule of law.  I mow a lawn.  I get $20.  It's value should not be stolen from me.  I did the work.

What about moral hazzard?

What about encouraging financial firms to borrow short and lend long as a policy? When has that worked well over time?  S&L's ring a bell?

What about the fact THAT NO ONE HAS CALLED THE FED ON CHANGING THE INFLATION BENCHMARK TO THE PCE BECAUSE IT SHOWS LOWER INFLATION???

Rents are up way more than 1.2% a year since 2008 Hilsenrath quotes, gasoline by my house was $2.85 pre QE2 and is now $4.16, college and healthcare have risen as know much faster as well.

I could go on, but why bother.  They are going to print and they are going to lie to justify it.  Oil will skyrocket and Obama will release the SPR, because Strategic includes winning the election.  They think money printing is the saviour and will replace hard work, savings, sacrifice and living under one's means.  History says it won't and all we will get is inflation and bubbles.

Mon, 08/27/2012 - 12:22 | 2740740 slewie the pi-rat
slewie the pi-rat's picture

gl to evbdy in the casinos this week!  especially the gulf coast!  one of my kids went to grad school @ tulane

the slewie chile was in batonRouge as fast as possible 7 years ago just helping agencies help others.  the kid delivers!

gonna be tuff this time w/ the mess in africa taking first choice a month ago

but we know you and we care!

this is a real pissoir eh? HPC Tropical Cyclone QPFs  but it is not a severe as the one from  yesterday, but that is just my opinion, of course

HPC Surface Analysis/Radar Loop  here i want to see that little spinner just hug the shore;  stay outa the "loop"

i was looking @ 991 mb on the backside of the center last night and today we're @ 988

so far, so good!

peace

 

Mon, 08/27/2012 - 12:49 | 2741156 dadichris
dadichris's picture

"why the hell do we keep doing the same idiocy over and over"

because hyper-inflation is the GOAL don't you think?

 

Mon, 08/27/2012 - 17:37 | 2742005 malek
malek's picture

 the NEW QE, elsewhere incorrectly called QE3

Nice stab at Apple marketing!

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