While Congress Stonewalls, Fed Hatches New Scheme To Save Economy
Tell me, when you see this headline, what do you think the article is going to be about?
So then why the fuck is this the second paragraph of the God-damned piece? No! It’s not just the second paragraph – it starts at the eighth fucking word.
“The Federal Reserve, which has tried everything it can think of over the past two years to resuscitate the economy, is now reportedly telling Congress behind closed doors that it has done all it can and that it’s Congress’s turn to do something.”
Funny, that doesn’t sound like hatching a brilliant plan to me.
That sounds like throwing in the towel.
And as for the “important” act of the Fed starting to buy more MBS paper; look guys, the New York Fed dropped less than $6 billion. Do you know what six billion dollars is?
Interest.
That’s absolutely jack shit. QE2 was $600 billion, meaning the New York Fed’s actions are literally less than 1% of what they did last summer. Although smaller than QE1, QE2 was also equivalent to more than half of all outstanding U.S. currency before 2008.
Compared to that, the New York Fed’s purchase of MBS paper this month is no more than a rounding error of last summer’s program. A pimple on QE2’s ass cheek, if you will.
The Fed officials admitted as much themselves, when they said right out in the open “Hey jackoff’s, we’re just rolling over proceeds.” But you don’t want to hear that, so you’re busy building Potemkin speeches and conspiracy theories where there are simple, insignificant announcements.
The dollar is not getting any weaker because of what the Fed is doing. In fact, if they didn’t roll over the proceeds, the dollar would have slowly, incrementally strengthened. That’s why the Fed chooses to buy fixed-income investments to begin with.
So, in summary:
1. If you’re hyping this announcement you’re dumb UNLESS
2. You know damn well the Fed rolling over ROI money was always part of the plan IN WHICH CASE
3. You are a manipulative dick who will get your comeuppance one day
The summary was priceless!
Wait, is this Scott’s blog? 🙂
Preach on preacher!
Cain you been on a righteous indignation roll for days and I absolutely love it! One beautiful screed after another. I agree and thanks for voicing it.
Awesome Cain! Love the wrap up. You don’t hear ‘comeuppance’ nearly enough.
I agree, it should be a more regular addition in our day to day conversations.
The Wall Street is just whipping the main street stupid bears. Why the fuck is everyone so bearish? All these idiots lost money for 3 years straight.
Do I read a single bullish post, even after a 15% rally? Not yet. When all these suckers above think we have a bull market, that is time to sell.
One look at the weekly S&P 500 chart says it all. The long-term bull market is secured. We are buying by the fistful over here.
Buying drugs?