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.
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.
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: