After all we’ve been through since 2008, all of the ups, downs and in betweens, one thing has been perfectly consistent: Ben Bernanke doesn’t give a shit about your opinion. Partly it’s because he belongs to a secret organization who profits from wars, depressions and booms. But the mainspring of Bernanke’s Bearded Clam existence is to continuously and absolutely decapitate all raids on US asset classes.
He’s not interested in lower stock prices. When they go lower, his fucking clam face snaps the dicks off bears though mind boggling quantitative easing. Some of you just don’t get it, do you? The fucking gold market is telling you it’s coming, yet you err on the side of zero precedence.
Pray tell me, when was the last time stocks went down a lot, the economy slowed, and Ben didn’t start his dastardly POMO machine?
If you choose to believe QE3 will do nothing and stocks will trade lower regardless, I have no qualms with you. HOWEVER, if you continue to leave inane messages of such poor decorum and mien, I will have but no choice but to dispatch you to less accommodative quarters. Look, “The Fly” is all about free speech; but some speech is more free than others. You cannot come into this House of Perspicacity and expect to purport lies and half truths without being checked harshly at the door. I will also defend those who are honest and with top hat. There is a dress code at iBankCoin: all we observe it else feel the end of my lash.
Having said all of that, the Federal Reserve is top hat central. Rest assured, QE3 is coming, soon and forever.
http://www.youtube.com/watch?v=47MazYDnmaU
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The other you disagrees with the real you. Journey to Oversold continues.
Then QE3 for real, POMO and breaks 14k on the DOW.
In the Bearded Clam and his long lines of cocaine we trust! Amen fuckers!
The longest line of cocaine the world has ever seen. 2-3 trillions!
Is that what you really want? You want it to save your positions or you really believe it will save our economy? Do you really believe printing trillions more will save us? Really?
This has nothing to do with me, but with reality.
I could be 100% cash and I’d still tell you this is going to happen, not because I want it or need it, but because it is fact.
Whether is helps the economy or not is hard to say, since there is no control. You really need to ask yourself where would the economy would be without Fed easing, and be honest while be introspective.
And what happens after QE3 (say 6 months from now)? Another and another?
Pomo stands for Permanent Open Market Operations.
The idea is to keep asset classes high to artificially reflate the economy. By creating a “wealth effect” in stocks, the hope is that it spills over into general economy.
To answer your question: this will continue to be Fed policy until GDP is growing at 4% per annum and unemployment is under 6%.
By QE-100 you mean.
Maybe.
But even though we’ve tossed trillions into the economy, it’s all gone! Poof.
But it’s not “real money.” It’s Fed money or “balance sheet.”
Right now there is a scarcity of dollars, as evidenced by the 13% spike in the dollar over the past year, despite QE.
Thus far, QE has done nothing to debase the dollar.
It has done nothing to save the economy. Its just delaying the inevitable. Until there is either a major technological breakthrough that spurs on a new industrial revolution, you won’t be seeing 4% GDP for years (and if you do its a lie like in China). You may get your QE wish. We will all suffer for it.
This time:
I am not disagreeing with your point. The only way to truly solve the crisis is to reset. HOWEVER, you know they are not going to do that. In a thousand years, they’d never elect that course.
Liquidity injections (fancy talk for fiat creation) spurs ‘growth’ through investment, but also mal-investment. I mean, the housing bubble did sure fix the dot-com bubble. And god willing this bubble may actually fix the housing bubble but at the end of the day you can only cover shit with something you tell people has value but holds no intrinsic value for so long before they tell you to go fuck yourself.
Aka: its called the wealth effect because only those with wealth benefit from it.
True wealth lies in true assets, not paper dollars.
i think you need to be honest w yourself ‘thistime’. when unemployment reaches 25% and rabid gangs of the unwashed pillage your backyard for mushrooms to roast, then will you be screaming for POMO? is that what it will take?
You ready for 75% tax rate? How’s about handing your 401K over to Obama? Where do you think the money will come from? You better make 10 million off this QE trade. You”ll need it to retire at 90.
I agree, at some point you have to take your lumps. You can’t just keep disguising the underlying problem of shit by throwing money at it. Not to mention the f**cking enormous amounts of debt we are leaving our great great grand childern. Most the bailouts should’ve never happened IMHO. The autos would not have disapperaed just because they had to go through a bk. A structured bk doesn’t mean everyone loses their jobs and you shut the doors. Obama was really just buying UAW votes, anyone who denies that is just being ignorant.
In the words of Peter Schiff “Bankruptcy is a good thing. It’s the way the market cleanses the economy of companies that shouldn’t be there.”
+1
What economy?
The way things are going one is going to have to take on risk just to break even when the QE tax bill comes due. (wheneverthehellthatis)
Risk assets are the new treasuries.
I hear that QE is “no longer” necessary to maintain acceptable trade balance figures since US notes can now compound out.
Uncertain that I buy that, I think Fed Brd Fisher all but alluded to eventual QE (which he strongly abhors – or at least apparently).
Plus, my percipient intuition suggests that Ben might just fire back at the lukewarm decorum of the HOBOma leading up to his recent nomination reconfirmation by restraining from QE.
In either case, I hope he prints too.
someone bust out the baking soda. ghetto freebase clam style.
Last year we nosed down on 20% and never got our so desired QE. I can only assume it would take something similar.
Given this markets penchant for gunning higher on rumors and hopium and front running every possibility of QE, I’m thinking it’s going to be more than a few short weeks to get us down to a similar level as last year.
The summer will be long and there is certainly more pain to come. But it will happen, eventually.
I still think Bernanke could hold us off for another 6 months to a year just by starting to explicitly talk about QE.
tell that to entire industries that are collapsing and have unpaid pension fund liabilities. where do you positive thinkers come from? trust fund land? no QE it is over.
What does QE have to do with pensions?
WTF are you talking about?lol
got me there. no clue. trying to spur a bear parade for the market gods.. pathetic thing. but seemed intelligent at the time.
Ha! My type of argument, crude but with honour.
You’ve had your fun. Let me seek vengeance without injuring your tasty face.
Good sir,
If one posits that the Bearded Clam launching the QE3 and Federal Reserve Ship POMO in an effort to float the market, it stands to reason that the unfunded pension liabilities would be reduced as the stock holdings of those pensions appreciate in value, thus giving relief to both the industries and governments (and eventually, taxpayers) that would otherwise be left holding the bag when those pension funds came due and/or collapsed.
Regarding where we’d be without the Fed’s easing, well, the markets would be much lower and the financial sector, as a whole, would look like a septic tank in a blender (The Ultimate Shitstorm). However, “the market” would also not be buoyed by cash with nowhere else to go for yield. Right now, imho, the gyrations of the stock market are forcing a lot of “investors” to hold onto what cash they don’t have in the market because if the market goes titsup, that’s all they got left.
IANAE
notopt
Perfectly stated. Bravo.
Pensions are screwed either way. Take away their long bond and they’ve poured back into private equity and all the things that screwed them over last time.
No other choice I suppose.
Actually, pensions can only be saved through dramatic increases in equity prices. I know, since I manage one.
They have goals and they are aggressive based upon historical returns.
We got LTRO.
And TWIST
True.
Did TWIST actually do anything?
I know LTRO certainly did.
TWIST twisted off the heads of bears.
The market should have been -20% last yr.
are drinking this late?
you sound more excited than usual lol
I am drinking some scotch with my dog here so my writing is not up to par tonight…
I figured since Fly never sleeps (almost) he must be watching the futures
You’re in rare form these days Sir. Rare form.
Master Fly, can I interest you in replacing your AG shares for AEM. Looks mighty fine.
You may not.
Heat ruined my night.
Heat made my night … Hahaha!
What did LeBron say … “Not 1, Not 2, Not 3, etc, etc, etc?” Looks like he should’ve stopped at “Not One!”
Anyone think gold might just be working to retest that trendline from below?
POMO does stand for PERMANENT Open Market Operations.
which means that Ben busies himself by dropping cash from helicopters non-stop– forever.
Sold some of my EXK today for a small profit hoping that I could buy back in again tomorrow on any dip. It looks like I’m going to be sorry that I made that decision!
Oh well, a profit is a profit!
This macro stuff makes my head hurt. Out of my element here.
do not worry HBP if the clam does not QE then computers will be lost like reading and writing in the dark ages. but the girls will be easy and hunting beyond being disgusting will be all one will need to know.
Gold and silver train is leaving the station tonight….
of course it can change after London opens… last night it happened
QE 3….
Just Like the QUEENS…..
Diamond Jubliee…
SO Will Elton sing…
QE Three Plus-BER NAK EE
Is “Still Standin’
Oui Oui Oui.
BOGO is a good deal. They have that on Groupon quite often. Soon Facebook shares will be in BOGO territory. At $19 FB will be like buy one get one free at the IPO price.
When is the fed gonna buy some ETFs?
QE3 = Strike 3
Stocks will go up in euphoria for a little while, then collapse again, with the exception of PM, miners, etc..and those equities that can protect themselves from a falling dollar.
When exactly is QE3 coming? June 20th?
That Wall Street Journal Article has a Hawk Title, but the body of the article is so vague about when the FOMC could act. China Secur Journal ran a rumor about China Rate cuts in the future also..imho, China Secur Journal rumors are normally wrong I am finding. Cocaine Bulls will buy this shit today, Futures are at almost 1300 SPX, but if they read the actual article they should sell the rally…Clam won’t act after June because of Political pressures Not to effect Prez Election..imho.
Actually A Dove Title..its late.
I know a sum total of zero about this subject. I only know what I know. QE3 is a dream. Wisps of shadows taunting the dead. There is a bridge to nowhere that is travelled by the heartbroken and empty corpses of damned. The chasm is wide and growing, swallowing the innocent and the evil with no regard for their wisdom, intellect, or charm. Assume the position and kiss your ass goodbye.
Another one.
When has The Fed ever let us down?
Fools
When they do it, they will take down gold at the same time.
Just to show that everythig is ok
Interesting to see you dancing like a wooden marionette today. Flouncing about as another nail is hammered into the coffin of your goddess, QE3.
I concur wrt POMO
On another note: land of the free & home of the brave – 1 outa 2 ain’t bad.
http://news.yahoo.com/video/denvercbs4-15750663/aurora-police-chief-describes-wild-search-for-bank-robber-29561750.html#crsl=%252Fvideo%252Fdenvercbs4-15750663%252Faurora-police-chief-describes-wild-search-for-bank-robber-29561750.html