Clueless Bernanke Blows It Again

lwlee · Dec 12, 2007

The actions by the Fed seems amateurish and ham-handed. They should be trying to ensure orderly market movements.

Surprising the markets with these announcements is just increasing market volatility. Why couldn't they have announced this news yesterday with the rate cut?

What's likely is that they got caught with their pants down yesterday and scrambled to rectify it.

basis · Dec 12, 2007

Algorithm: I hope you're right. So far, I think the guy's a clown.

sprstpd · Dec 12, 2007

Quote from basis:

What you "no way should he cut more" guys don't get is that the lending market isn't functioning correctly right now. Things are *very* tight at the moment.

And maybe what you aren't seeing is that in capitalism, parts need to fail in order to make the whole stronger in the future. The fed just won't let the inevitable failures happen.

Cutten · Dec 12, 2007

Quote from trefoil:

But, it's also true that the supply of money has to increase in order to finance the growth in the economy.

And your evidence for this claim is what, exactly?

Landis82 · Dec 12, 2007

Quote from kashirin:

You say the same bullshit for a year.
How Fed is not responsible for energy costs?
They must restrict money supply and allow $ to appreciate through rate hikes to curb foreign demand

Greenspan did what you suggest five years ago and now we're here

It would be a disaster to have such incompetent people like you and Cramer to be Fed members

Agreed.
AAA is a very confused individual.

Landis82 · Dec 12, 2007

Quote from lwlee:

Surprising the markets with these announcements is just increasing market volatility. Why couldn't they have announced this news yesterday with the rate cut?

What's likely is that they got caught with their pants down yesterday and scrambled to rectify it.

I would agree with your question of the FEDS timing. That having been said, I believe that this "coordination" move was being worked on weeks ago.

It just didn't happen overnight because the markets responded poorly to yesterday's 1/4 point rate decrease.

Landis82 · Dec 12, 2007

Quote from buylo:

Oh and by the way........Overnight the Fed didn't like what the markets did, so they are "set to revamp liquidity support." As seen in FT i.e. screwing with the discount window in other ways since the markets did not take kindly to the 25 bips cut there either.

I think Bernanke and the Fed are daytrading the indicies.

You couldn't be more WRONG.

Coordination events as the one that was instituted this morning by the FED take a couple of weeks to put into motion and plan for.

They do not just "happen" overnight!

lwlee · Dec 12, 2007

What it illustrates is how out of touch the Fed is with the market. They actually thought their 25pt cut and blase press release would not roil the markets.

basis · Dec 12, 2007

Quote from sprstpd:

And maybe what you aren't seeing is that in capitalism, parts need to fail in order to make the whole stronger in the future. The fed just won't let the inevitable failures happen.

Look, I'm all for letting things fail. If you don't see that it's completely irrelevant to what I'm saying, I'm just wasting my time.

In fact, I'm almost certainly wasting my time. Every time I come back to this site I'm absolutely baffled at the ignorance (not directed at you personally).

The number of posters on this site worth reading is about 4 in, what, 40000?

Bleh. I think I'll leave for a few months again.

Pa(b)st Prime · Dec 12, 2007

Quote from Landis82:

You couldn't be more WRONG.

Coordination events as the one that was instituted this morning by the FED take a couple of weeks to put into motion and plan for.

They do not just "happen" overnight!

I agree bro that Bernanke wasn't desperately phoning Euro bankers from his bed last night.

That being said I believe the timing of the announcement itself was in response to yesterday's market action. They could've come out with this along with the policy statement but it would've been futile with the mkts fixated only on the funds target. The Fed was well aware of the hiccup sure to follow only .25 and they kept the tonic in the fridge overnight.

EVERYTHING this board does is postured toward the stock markets approval. Whether it's a discount rate cut on the morning of opex or dovish statements made in thin AH trading these guys are all about squeezing shorts. I think Kohn, Poole and Bernanke wish we'd all blow out and never short again.

This is a failed policy. But then again we'll let the market speak on that issue......