Bernanke's Looking Sharp

[Pa(b)st Prime]

The "Bernanke Put" is allowing longs to liquidate unfettered by too nervous to press speculators. The tape was YELLING that this afternoon. Long's are getting a nice short covering market to unleash inventory into. For those awaiting: a slash in the Fund's rate at prices above Friday's "temporary" discount rate cut will prove to be like waiting for Godot.

Bernanke truly doesn't want to publicly reset the Fund's target. Bernake understands what Greenspan didn't. In Central Banker World tenacious in your face "D" get's you more knowledgeable props than showboat scoring.

A cut is like a bullet. Once it's fired it's gone forever. Bernanke knows he needs ammo lower.

While inflation/dollar concerns are less worrisome now than a month ago, I'm sure the Board would like a look at current post crisis data. I look at baseball attendance. American's are spending like they ain't worried.......

 

[MattSF]

You assume the Fed has any true impact long-term. Bernanke is reactive, not proactive. He witnessed the decimation of the Nikkei after NY closed up, so he cut. Baseball attendance? That's a useful statistic. Ever seen a White Sox home game? The homies can let loose with a nine and not hit a single fan. How are the condos selling in South Florida?

 

[Pa(b)st Prime]

Quote from MattSF:

You assume the Fed has any true impact long-term. Bernanke is reactive, not proactive. He witnessed the decimation of the Nikkei after NY closed up, so he cut.

He cut nothing!

 

[MattSF]

Quote from Pa(b)st Prime:

He cut nothing!

You're honestly going to argue that the discount cut wasn't material? Bernanke and Dodd are death to the economy and the dollar. Paulson is the man.

 

[myminitrading]

Quote from Pa(b)st Prime:

The "Bernanke Put" is allowing longs to liquidate unfettered by too nervous to press speculators. The tape was YELLING that this afternoon. Long's are getting a nice short covering market to unleash inventory into. For those awaiting: a slash in the Fund's rate at prices above Friday's "temporary" discount rate cut will prove to be like waiting for Godot.

Bernanke truly doesn't want to publicly reset the Fund's target. Bernake understands what Greenspan didn't. In Central Banker World tenacious in your face "D" get's you more knowledgeable props than showboat scoring.

A cut is like a bullet. Once it's fired it's gone forever. Bernanke knows he needs ammo lower.

While inflation/dollar concerns are less worrisome now than a month ago, I'm sure the Board would like a look at current post crisis data. I look at baseball attendance. American's are spending like they ain't worried.......

Agreed much nicer to liquidate at the levels. The press is doing their job by keeping the shorts nervous. And these meetings well they are doing thier job as well.

Well lets see what tommorow brings, more chills and spills on the next Speed Racer Show!!!!!!!

 

[Pa(b)st Prime]

Quote from MattSF:

You're honestly going to argue that the discount cut wasn't material? Bernanke and Dodd are death to the economy and the dollar. Paulson is the man.

There's no action at the window. Hence merely cutting the dr was just "window dressing".

 

[MattSF]

Quote from Pa(b)st Prime:

There's no action at the window. Hence merely cutting the dr was just "window dressing".

There never is any action, regardless of handle. The ABX is still imploding. The only favorable impact was seen in the equity markets. Stating he didn't cut is orthogonal to the issue at hand.

 

[sobemark]

Quote from Pa(b)st Prime:

There's no action at the window. Hence merely cutting the dr was just "window dressing".

i think DB came by to show "support for the fed"

--mm

 

[Pa(b)st Prime]

Quote from MattSF:

There never is any action, regardless of handle. The is still imploding. The only favorable impact was seen in the equity markets. Stating he didn't cut is orthogonal to the issue at hand.

The issue is if he's going to take meaningful action, i.e. cut the Fund's rate, with the market at these levels. He isn't. By Friday the market will be retesting 1418. He'll never cut on a 1400 handle.

 

[Sparohok]

Quote from MattSF:

You're honestly going to argue that the discount cut wasn't material?

Can you argue that it was material?

Last week there was an average of $10m/day lent out at the discount rate, obviously immaterial. We'll find out this week's numbers on Thursday and I'll bet it's less than $100m.

Martin