David Stockman, former director of the Office of Management and Budget, told Tom Keene on “Bloomberg Surveillance” yesterday that the Federal Reserve is “off the deep end with this money printing, which is dramatically distorting and deforming the financial markets.”
On Glenn Hubbard, Stockman said, “He is a brilliant guy who told Bush to cut taxes in 2001, cut taxes in 2003, oh, why you are at it, go have two [...]
From Zero Hedge:
The following chart from Bank of America shows that with a few short hours ahead of the dangling strawman known as Bernanke’s Jackson Hole address (now that Mario Draghi has more pressing issues to deal with elsewhere), expectations for QE3, in the form of what is actually priced in, just hit an all-time high.
So is, by implication, the potential for disappointment and that the petulant market, no longer [...]
by Phoenix Capital Research
Listen up Mainstream Financial Media, the Fed is not going to announce QE 3. You’ve been running the same tired stupid story after every single FOMC meeting since May 2011, desperately trying to spin everything the Fed says into a call for more QE.
The fact of the matter is that only a handful of Fed members have called for more QE. They are Charles Evans and Bill Dudley, [...]
by Phoenix Capital Research
Once again the US economy is tanking and everyone is talking QE 3. Sorry folks, it ain’t coming. Bernanke said point blank that it was less attractive as a monetary tool as far back as May ‘11.
Q. Since both housing and unemployment have not recovered sufficiently, why are you not instantly embarking on QE3? — Michael A. Kamperman, Waco, Tex.
Mr. Bernanke: “Going forward, we’ll have to continue to make [...]
By Graham Summers
Starting back in August, I began suggesting that we were approaching a Systemic Crisis/ Crash scenario in the markets.
The technical and fundamentals both supported this forecast, but I completely underestimated the degree to which the Central Banks and EU would attempt to prop up the market.
At that time, I thought it likely we’d see a Crash, which would then be met with another round of stimulus, which would [...]
Last night it was uber-dove Janet Yellen, today it is uberer-dove, former Goldmanite (what is it about Goldman central bankers and easing: Dudley unleashing QE2 in 2010, Draghi unleashing QE LTRO in Europe?) Bill Dudley joining the fray and saying QE is pretty much on the table. Of course, the only one that matters is Benny, and he will complete the doves on parade tomorrow, when he shows that all the [...]
by Phoenix Capital Research
The markets will likely try to rally this week based on the following items:
End of quarter performance gaming
Last week’s weak stock performance
Angela Merkel signaling that Germany will increase the pointless “firewall” around Europe’s banking system
Bernanke’s hint that more QE is coming in April in this morning’s speech
#1 is a regular phenomenon in the markets and needs not be explained. #2 is closely tied in with the latest policy [...]
For today’s definitive example of peak cognitive dissonance and self-delusion among those who determine the monetary fate of the world no less, look no further than the Dallas Fed’s Dick Fisher, who just said the following according to Reuters:
No one presently believes that the Fed is going to proceed with QE3
Funny considering earlier, we got this from Goldman’s Bill Dudley:
No decision yet on QE3, New York Fed’s Dudley says
Finally, there is [...]
From Economic Policy Journal:
Earlier this week, I reported that New York Fed president Bill Dudley owned over $1 million worth of Treasury securities – whose interest climbs with increasing price inflation.
Now comes word that Dallas Fed president Richard Fisher owns over $1 million of gold.
One has to ask, do these guys take themselves seriously as inflation fighters if they have these kinds of positions in their personal portfolios…
Read full article…
The fact that Hank Paulson just came out of hiding and got involved in the deficit ceiling debate is a very ominous sign. Hank Paulson is a financial terror mastermind, not using hyperbole, just speaking technically. His hand in this financial crisis has been pivotal since its inception (see below). The fact that Paulson publicly says he wants the debt ceiling raised, which makes [...]
Prolonging negotiations past mid-May when Washington will hit its debt limit could give Republicans more leverage to secure big spending cuts, but it could worry investors as the country runs up against a possible default. The Republicans said they would act before that happened.” The only question is whether bond investors (no matter how deflationary attuned) will stay in bonds before any possible [...]
Full speech link:
Regulatory Reform of the Global Financial System
Remarks hosted by the Institute of Regulation & Risk North Asia, Tokyo, Japan
I am pleased to be here today to speak about the issue of regulatory reform and the global financial system.
But before I begin, I would like to express my deepest sympathies and those of my colleagues at the Federal Reserve to the people of Japan following the [...]
It was a very data heavy week but in the end the important macro releases provided little new information as the majority came in close to expectations. That was certainly true for the US ISM and payrolls. Business surveys in the rest of the world were at the margin a touch weaker as well but coming from very elevated levels. Inflation numbers were generally [...]
And so the sunset of the QE2 inspired Golden Age begins: From JPM’s Michael Ferolli: “We are revising down our projection for the annual growth rate of real GDP in Q1 from 4.0% to 3.5%. Prior to this week, first quarter growth had already been tracking a little soft relative to our forecast. In particular, consumers stumbled a bit to start the year, and [...]
Jan Hatzius is the bellwether of the sellside economist crowd. When he was bearish (2009), most were bearish, when he turned bullish (early half of 2010), everyone else followed suit. Then he turned bearish again (early August 2010) and convinced his friend and former co-worker Bill Dudley to launch QE2. Then, in December, he turned very bullish again. And now we are here. We [...]
Regional Economy and Trends in Household Debt
William C. Dudley, President and Chief Executive Officer
Remarks at the Quarterly Regional Economic Press Briefing, New York City
Good morning and welcome once again to the New York Fed’s Quarterly Regional Economic Press Briefing. I am pleased to have this opportunity to talk with the journalists covering our regionâ€”and through you, to the people in our [...]
“Keynesian Economics (US definition): the science of propaganda to justify the elite theft of public and worker wealth by fraudulent means, reinforced by manufactured lies and nonsensical forecasts to perpetuate a corrupt system, furthered by a stream of pathetic justifications of why past failed policy must be continued, aided by doctored data to cover up the latticework of falsity, all intended to maintain a power structure led by [...]