iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,983 Blog Posts

Bernanke Delivers A Midsummer’s Night Dream

Federal Reserve Chairman Ben Bernanke said Wednesday the central bank will likely keep at least some of its easy-money policies going “for the foreseeable future.”

Noting that unemployment is still too high and inflation too low, Bernanke said, “both sides of our mandate are saying we need to be more accommodative.”

He spoke about Fed policies in a Q&A session after a speech in Cambridge, Mass., to the National Bureau of Economic Research.this

Bernanke rattled stock and bond markets last month when he said the Fed likely will reduce its stimulus later this year and end it by mid-2014, assuming the 7.6% jobless rate falls to 7% by then. The Fed is buying $85 billion a month in government bonds to hold down long-term interest rates.

Financial markets assumed that Bernanke’s roadmap also meant that the Fed likely will raise its benchmark short-term interest rate in late 2014, instead of mid-2015 as anticipated.

But Bernanke reiterated that the Fed won’t consider raising short-term rates until the unemployment rate reaches 6.5%.

The Fed chairman also suggested that policymakers could keep the bond-buying program at full throttle longer if the economy wobbles. While the housing market is improving and buoying consumer wealth, federal spending cuts still could dampen growth, he said. “it’s still too early to say we have weathered the fiscal restraint,” he said.

And if interest rates continue to rise in anticipation of Fed actions, hobbling the economy, “we’ll have to push back against that,” Bernanke said.

In his prepared speech earlier, Bernanke says the 2008 financial crisis showed the Federal Reserve that it must strengthen its approach to both regulation and interest-rate policies.

Bernanke says the U.S. economy has yet to fully recover from the downturn.

source: USA Today

ben

S&P futures are +15. Prepare for winship, of extreme perversion.

http://www.youtube.com/watch?v=RtTyCiE4KTQ

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42 comments

  1. fake amish

    Even the shylock gets his 85 billion pounds of flesh. It is good to be a banker.

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    • Losers all

      Die you piece of human sewerage! Where’s your trades. Troll pedophile

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      • The Fly

        A little harsh, no?

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      • fake amish

        Remember to take your meds kid. Ritalin, right? Also all those anti psychotics. Not all of us need that fucked up shit but some do.

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    • TheHarper

      First of all, Shylock is quite the offensive term for such an upstanding gentleman as Sir Bernanke. Please refrain from its usage, or this militant Jew will have to dispose of you in a timely fashion.

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  2. Mr. Partridge

    I would say to get to 6.5% will take 2-3 years… pure guess of course

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    • Nid

      And about 6000 DOW points….oh and another 50 Million EBT Cards.

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      • Woj

        I’m amazed when the wall street world gets shocked by announcements like this. Fly is obviously not in that camp as he is 120% long and wouldn’t be unless he believed in the powers of the Clam. Everyone gets roped into what other “Fed presidents” are saying and what CNBC is saying. Ben has been clear all along. He will not stop until unemployment is below 6.5%. Period. End of story. “Monitoring” is different than “tapering.” Inflation is not anywhere near out of control. Deflation is a bigger worry at this point than inflation. TLT has at least 25 points of upside over the next few months. Gold probably has 750 points of upside over the next 18 months. The story has not changed. Anyone Obama elects as Ben’s replacement will be speaking the same story. The only thing Obama has to speak for his two terms is the market and he will be damn sure to keep that going. Obamacare is a huge failure and he knows it, hence the delay untli 2015. He needs the market to keep screaming and that will be his claim to fame, the return of the stock market from 08-16. He has nothing else. Trade accordingly…

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        • Mr. Partridge

          One thing bears (shorts) have to be really concerned about here: hypothetically speaking what if it takes 10 years to get 6.5% LMAO 🙂

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          • Vertigo

            it’s the Cross Roads of Hell !!!!

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          • Mr. Partridge

            no doubt

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          • Dr. Clock

            I don’t know about 10 years; but it might take at least a few more years for that number to get down to 6.5%

            Yes, over time, a lot more of the unemployed will give up looking for work and go on welfare, food stamps, Section 8 housing etc., like their unemployed friends.

            If the unemployed give up looking for work, they are dropped from the unemployed rolls (not counted as unemployed) and then the rate will just naturally go down to 6.5% or lower.

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          • Dr. Clock

            Bernanke might look like a moron, but he knows that his free money policies and 0% interest for his banks to get loans from him….are mainly helping his banks…and some deadbeats get home loans.(people that would normally not qualify to get loans)

            But what the hell, most of us on the Flys domain are getting rich. 😀

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          • Ohthe BOMB

            If a low unemployment rate is your goal, mandate a 4-day 36 hour work week for ALL USA WORKERS, with triple time for hours over 36.

            And set the minimum wage at $12 an hour, with 36 hours of GRATIS public service weekly, for anyone on food stamps or unemployment or welfare or disability.

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  3. John McAfee

    Unemployment rate isn’t going under 7% ever again. Advancements in tech mean more productivity with less human jobs. The wife and I took a trip to a cherry orchard recently – they use a machine to shake a tree clean in under a minute. They used to employ almost a thousand workers to pick cherries, now that work is done by machine and a handful of people. It wasn’t the housing bubble that caused all of this, it’s the technology. We should all go back to living in tepees.

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  4. Mr. Cain Thaler
    Mr. Cain Thaler

    (laughter) I don’t remember encouraging inflation being a part of the Fed’s mandate

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  5. The Fly

    My blog attracts the very finest of people (Irish guy from Braveheart accent)

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    • xxxHuggieBearxxx
      xxxHuggieBearxxx

      I’ve noticed an unsavory element ever since you relocated to Jersey. Coincidence?

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  6. Mr. Partridge

    Dr,
    what do I do with SAM here – it became big part of my portfolio, really big actually as I started years ago – how high a beer stock can grow?

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    • David

      Didn’t you say you sold all the stocks including investment acco. a few weeks ago and being very dramatic? How come you still have SAM so much. Sounds fishy.

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      • Mr. Partridge

        Stop eating fish than… haha.. I cannot sell all of the stocks.. I am partridge… I hope you know what it means, if not go read a book.

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  7. Hawaiifive0

    I predict equties and metals may ride this train together for awhile, but eventually equities will tank and metals will keep going higher. Can anyone say mean reversion?

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    • lol

      So TLT sheds 20% in last 2 months. Awesome! Global bond markets too? Global equities too? Precious metals too?
      Yee haw!

      You know the tens of trillions of dollars moving around has to end up somewhere!

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  8. jjjsix6

    Am I really suppose to believe FED policy has dramatically changed in the last 6 hours let alone the last 6 months?

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  9. StocksRider

    Mofo Ben! I just closed my QQQ calls before close. Made a good coin but ouch! I still have GOOG and SCTY calls open. I will drink to that!

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  10. Dr. Clock

    A few months old, but an Interesting exchange between this congressman (he’s not my congressman) and the moron Bernanke. :-O

    Rep. Campbell to Chairman Bernanke: Quantitative Easing is Not Creating Jobs See more at:
    http://tinyurl.com/kl3on8d

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  11. razorsedge

    gold and miners lookin up.

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  12. prospectus

    We don’t have cyclical unemployment. We have structural unemployment. 6.5% is a pipe dream. Not for a generation at least. We will have free money until/unless the bond market forces rates up by itself.

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  13. AKwitdemBeamz

    There will be so much cocaine on the street tonight….

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  14. charles c

    lots of pissed off perma bear retards venting here.. be flexible

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