HILSENRATH SPEAKS - Bernanke's Mouthpiece Hints At New 'MBS Buying Program': "QE3 Is Likely In September"

Bernanke's favorite reporter, the Wall Street Journal's Jon Hilsenrath, breaks down yesterday's Fed statement on PBS Newshour, and hints that the next iteration of QE will be a new MBS purchase program to begin in mid-September.

Note to Ben:

Mortgage rates are at absurdly low levels already.  Anyone who can qualify is already in the process of refinancing, or purchasing.  Knocking 2 tenths off a 30-year fixed won't help, but a new trillion-dollar MBS QE program could easily spark more global commodity inflation. Corn and wheat are already spiking.  Shall we add crude oil, precious metals, and the rest of the complex to the mix?

If you really want to help the economy, make it rain.  No, not with newly-printed, pretend money.  With wet stuff.  You know, actual rain.  Indianapolis-Bloomington, not normally associated with the Sahara, has received less than 5 tenths of an inch since May 15.  We haven't mown the lawn, the entire lawn - not counting the flipping weeds still growing - in 9 weeks.  The beige grass cracks like dry kindling with each step.  It is audible.

If you are so powerful, like your Hilsenrath minions say, cook up some thunder and lighting, and send it our way.

Otherwise, lawn and landscaping businesses are probably gonna need a bailout.  Think about it next time you're up in the QE 'Copter dropping cash over college towns, cruising low over swimming pools, spying on co-eds in bikinis.

Don't deny it.  We've seen you at Kilroy's.

Comments

[Pitchfork]

Loved this. Great post.

[DailyBail]

Thanks James.

http://www.huffingtonpost.com/2012/08/02/us-drought-2012-disaster-areas_n_1731393.html

U.S. Drought 2012: Half Of Nation's Counties Now Considered Disaster Areas

[DailyBail]

Drunken Bernanke Tells Everyone At Neighborhood Bar How Monumentally Screwed The U.S. Economy Really Is

http://dailybail.com/home/drunken-bernanke-tells-everyone-at-neighborhood-bar-how-monu.html

From the Onion

[Josie]

Hilsy was my frat bro and we were good friends. Drifted apart after college. When the economy tanked in '08, sent him an e-mail to get his take on what happened and was happening. His response: middle class is hosed and very few, if anybody will go to jail. This was before he moved to cover the Fed.

He must need to shower quite a bit to remove the slime he accumulates covering this sh!t...

[DailyBail]

Interesting. He seems like a good guy. I've been reading his stuff for years, but now that he covers the Fed, he has in a sense become the most important financial reporter in the world. He is the Fed's mouthpiece, apparently, since no one from bloomberg or the NYT is getting the type of info he gets.

[LiberatedCitizen]

Just in time for the election ROFLMAO and they claim the Fed is independent

Why the Fed's stimulus 'didn't work'

SHOCKING snippet

"The Fed has effectively replaced large segments of the market with itself -- it bought 77% of new federal debt in 2011, my calculations show."

http://money.cnn.com/2012/08/02/news/economy/fed-stimulus-john-taylor.moneymag/index.htm?iid=HP_LN

BOO HOO

For Wall Street, Real Pain When the Fed Fails to Act

http://dealbook.nytimes.com/2012/08/02/for-wall-street-real-pain-when-the-fed-fails-to-act/?smid=tw-nytimesdealbook&seid=auto

Too late for the rest of us

On The Ongoing Depression

http://market-ticker.org/akcs-www?post=209605

The depression is here — it’s just invisible

http://www.marketwatch.com/story/the-depression-is-here-its-just-invisible-2012-08-01?link=MW_story_investinginsight

[LiberatedCitizen]

p.s. don't expect any help for the people the markets obviously come first

U.S. ethanol waiver would roil grains market: traders

http://www.reuters.com/article/2012/08/01/us-corn-ethanol-traders-idUSBRE87003K20120801

Farmers Ask US To Stop Adding Ethanol To Gasoline

http://www.forexlive.com/blog/2012/07/30/farmers-ask-us-to-stop-adding-ethanol-to-gasoline/

[john]

DB, you will have some rain soon.

http://www.youtube.com/watch?v=e7x9obbxQV0&feature=related

[Josie]

@DB

Good guy, hard worker (wrestler in college), and although he works for the WSJ, has a bit of the NY liberal Jewish thing going. Is best friends with Steve Liesman; thus, his numerous CNBC appearances. Just part of the machine now, and I think he knows it...

[Pitchfork]

I haven't read it yet, but that's a theme in Chris Hayes' new book, "Twilight of the Elites" -- that even those who go into a particular elite institution with eyes wide open, ultimately find themselves gradually compromised and gradually taking on the values of the institution they work for. In other words, they get "captured." Good interview on Glenn Greenwald's site.

http://www.salon.com/2012/08/01/chris_hayes_on_elite_failure/

[Pitchfork]

I was just listening to the interview tiwh Chris hayes and he makes a point we've made here before -- that absolute levels of poverty and privation matter. IN other words, even though inequality is growing and even though many our out of work while bankers get taxpayer supported bonuses, no one is actually starving. Or very few are starving. And it's the fact that Joe Six Pack is still relatively comfortable and well fed that we haven't had our own Bastille Day moment here in America.

[Josie]

@Pitchfork

But ultimately untenable. Unlikely to see revolution in our lives, but will happen if we stay on our present path. It's a certainty. History is lost on us, for the most part. History teaches that all societies in which a few control the many by whatever means have failed. ALL. That is a sobering thought when viewing our present Republic.

[S. Gompers]

I been figuring the hogs were ready to slop at the trough again for the last couple of months...

Country club memberships are coming due.

[john]

Hilsenrath puts both feet in mouth at WSJ. Read the comments at WSJ and ZH!

http://www.zerohedge.com/news/2015-06-03/member-middle-class-responds-jon-hilsenrath