Bernanke - Irony of a Lifetime

[DisciplinedHedg]

"...Higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion..."

"...We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time..."

It would be irony, or some would argue justice, in its purest form if the market were to top out on this exact day.

 

[Scataphagos]

Quote from DisciplinedHedg:

"...It would be irony, or some would argue justice, in its purest form if the market were to top out on this exact day.

Fed has shown unusual candor. Hard to imagine market topping our near here when everybody knows there is "at least 6-months of money-pump" in front of us.

 

[tradingjournals]

Quote from DisciplinedHedg:

"...Higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion..."



Stock prices are falling if one measures in some non dollar units.

The guy needs to be fired.

 

[intradaybill]

Quote from tradingjournals:

Quote from DisciplinedHedg:

The guy needs to be fired.

Why fired? He is a moderate. Actually, IMO he has not printed enough. He is doing now what should have been done long ago. Others in his position may print more. Dollar has to drop to support exports, debt must be inflated and trade deficit should narrow. All, these goodies are accomplished with one move, QE. It is also a message to hardcore politicians in China and Europe that blackmail from their part will not go a long way.

 

[outsource]

Да пусть сосут китайцы эти..Давай, Бенни заряжай свои картриджи во все станки на....пусть фугуют круглые сутки

 

[Larson]

Quote from intradaybill:

Why fired? He is a moderate. Actually, IMO he has not printed enough. He is doing now what should have been done long ago. Others in his position may print more. Dollar has to drop to support exports, debt must be inflated and trade deficit should narrow. All, these goodies are accomplished with one move, QE. It is also a message to hardcore politicians in China and Europe that blackmail from their part will not go a long way.

Absolutely! Instead of 600 billion, 1.2 trillion. I cannot understand why they don't just go ahead and print US into hyperinflation and get it over with. A collapsing currency can be a good thing, right?

 

[olias]

Quote from Larson:

Absolutely! Instead of 600 billion, 1.2 trillion. I cannot understand why they don't just go ahead and print US into hyperinflation and get it over with. A collapsing currency can be a good thing, right?

Of course it's not as simple as that. There are risks to QE, whether it's too much or too little.

But it seems that everyone who is questioning Bernake's move fails to come up with a better solution....or any solution at all other than 'hey, just do nothing'.

 

[tradingjournals]

Quote from olias:

Of course it's not as simple as that. There are risks to QE, whether it's too much or too little.

But it seems that everyone who is questioning Bernake's move fails to come up with a better solution....or any solution at all other than 'hey, just do nothing'.

There are plenty of solutions. Here is one. Take the QE money, put as a capital to start a couple national banks that cater to financing new businesses. The banks will be capitalized banks. They will help the economy, and the government can sell them later for a multiple of say 20. So they will make 20*800 billion back. These moneys can come later from foreign capital buying the stock of these banks.

It is good for the dollar, good for jobs, adds wealth, and sends money directly to the economy.

 

[intradaybill]

Quote from olias:

Of course it's not as simple as that. There are risks to QE, whether it's too much or too little.

But it seems that everyone who is questioning Bernake's move fails to come up with a better solution....or any solution at all other than 'hey, just do nothing'.

Only criticism here. It's the rule

 

[Larson]

Quote from tradingjournals:

There are plenty of solutions. Here is one. Take the QE money, put as a capital to start a couple national banks that cater to financing new businesses. The banks will be capitalized banks. They will help the economy, and the government can sell them later for a multiple of say 20. So they will make 20*800 billion back. These moneys can come later from foreign capital buying the stock of these banks.

It is good for the dollar, good for jobs, adds wealth, and sends money directly to the economy.

This is the heart of the matter. The money printing is not going to capital formation and this is where the criticism comes in.