Fed Fight over QE2 at Jekyll Island (VIDEO)
Zimbabwe Ben and his nano crapmagic money-printing is under siege. Former NY Fed President and current Goldman Sachs senior executive Gerald Corrigan disagrees with Bernanke over monetary stimulus. Awesome.
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link to watch on youtube if the copyright warlords take down this clip...
Nov. 8 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke and other current and former officials met this past weekend in Jekyll Island, Georgia, to discuss the Fed's origins and decisions and, at times, their relevance to the more-recent financial crisis and last week's expansion of record monetary stimulus.
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DB here. It's pretty simple. QE1 was $1.75 trillion and yet failed like the miserable, slobbering, hyperventilating, sleestack of Satan's 2nd spawn, spit out of Volcker's colon during a difficult moment on the DC belltway.
The same will happen with QE2, only worse.
The numbers Bullard and Lockhart discuss come to about $800 billion per year of Treasury purchases. There is no way in Bernanke's Tokyo nightmare scenario that $800 billion of printing will slow a $50 trillion deleveraging push. Rates are already astronomically low, and there is no refinancing boom. Too many homeowners are underwater and can't pass the appraisal-equity game in order to get one of those new lower rates. And the ones who could qualify, have already refinanced. Make no mistake, this is a Brian Sack gift to the equity markets and the banks, pensions funds, and others who already own treasuries. It will hurt the Dollar, and won't even make a dent in the deleveraging. Better to give up on extend, pretend, and just take it in the aft end, at least for awhile. It's gonna be a long slog. In the end, and we're nowhere near the end, quantitative easing is little more than dollar-destroying, nano-crapmagic money printing for dubious, devious, desperate, dumb-ass Fed Chairmen.
Must see from earlier today:
Nov 9, 2010 at 2:36 PM
Reader Comments (8)
(CNN) -- The charismatic but unpredictable lead singer of American rock band The Doors could be about to receive a posthumous pardon almost 40 years after being convicted of exposing himself on stage.
http://www.cnn.com/2010/SHOWBIZ/Music/11/09/jim.morrison.pardon/index.html?hpt=T2
http://danielamerman.com/articles/Monetize1.htm
http://jessescrossroadscafe.blogspot.com/2010/11/net-asset-value-of-certain-precious_09.html
Perhaps you're relatively new to this medium, but some of us have been plugging away at informing people for decades and the only time it is really necessary to puff up headlines is when a 'master of the universe' goes down and it ain't happened for a while, has it? Look, Bush, Cheney, Rumsfeld, Wolfowitz, Zoeliick, Addington, Blair etc etc are still free, aren't they?
Come back with the 'MUST WATCH!!!!' hyperbole when Groanspin & Bernanke are jailed, okay?
From the Emergency Economic Stabilization act of 2008:
The purposes of this Act are—
(1) to immediately provide authority and facilities that the Secretary of the Treasury can use to restore liquidity and stability to the financial system of the United States; and
(2) to ensure that such authority and such facilities are used in a manner that—
(A) protects home values, college funds, retirement accounts, and life savings;
(B) preserves homeownership and promotes jobs and economic growth;
(C) maximizes overall returns to the taxpayers of the United States; and
(D) provides public accountability for the exercise of such authority.
So shut up. Ben and Turbo are "protecting the value" of your house and 401(k), by destroying the dollar, just like 2A says.
Of course, the jobs part is trickier and public accountabilty would ruin the magic show, but you can't really expect them to follow all the rules, can you?
http://www.gpo.gov/fdsys/pkg/PLAW-110publ343/pdf/PLAW-110publ343.pdf