Update: 3:56pm EST: Oh did I say Gold was at
141522? It is now at $1529.40 SLV $48.10 Oil $113. USD down, down, down 73.30. Equities continuing to mainline from the punchbowl Bernanke is clearly not taking away. DOW up 101.15. The TBTF Bankstas are gonna ride the USD right into the ground if TPTB let them.
Update: 3:08pm EST: Foreign Presse France asking about the concerns many nations have about the results of the Fed actions on the sovereign currency..cough, cough, Now Ben spinning the Geithner STRONG DOLLAR TOTAL BS LINE.
Reagan and Clinton had strong dollar in my lifetime. No one else. Hey they had that super growth thing too didn’t they? Don’t try telling the Ivy League Economics Club that though.
Update: 3:06pm EST: An hour in and another nominal record for Goldilocks~ $1526.20. Yowsa. Ben has used the buzz words ‘transitory, moderate’ to describe inflation so many times I would have alcohol posinoning were I playing the drinking game.
Update: 11:08am AZ Time- GOLD at $1522.80, USD at 3 yr low as Ben takes stage.
ZeroHedge will be liveblogging in case ANYONE asks a REAL question.
I would ask:
Ben do you like the American Middle Class?
What purpose does the Middle Class serve in the American economy?
How has QE and ZIRP ‘helped’ or ‘harmed’ the Middle Class?
If the Middle Class is the largest % population in America, doesn’t your dual mandate for full employment/stable prices apply to this population cohort above all others?
Is it your intention to drive down wages for the Middle Class while allowing prices of food and energy to continue to spike year after year, all while claiming there is no inflation?
WHY ARE YOU KILLING THE MIDDLE CLASS?
PS- Why did the Federal Reserve bailout QADAFFI and leave the American Middle Class to twist in the wind?
Update: 4/17/11~ Question Asked, Question Answered~ (emphasis from original)
…Stunningly, today we learn that to keep long rates low, the Fed may have resorted to nothing short of the same suicidal trade that destroyed AIG FP and brought the entire system to its knees. Namely, Ben Bernanke is now quite possibly the second coming of Joe Cassano, since in order to keep rates low, Bernanke is forced to a last resort action of selling billions upon billions of Treasury puts to “pin” rates low contrary to natural supply-demand mechanics…
CSPAN linky here. Hearing has begun.
Finally. Yeah the ‘core’ number is total BS and Jim Grant, a witness, will testify to just that!
ZeroHedge has it:
..The much anticipated hearing on “The Relationship of Monetary Policy and Rising Prices” chaired by Ron Paul..
witness list consists of:
Courtesy of CNBC
More~ Mark Fisher talks commodities~
Update 3: Here is the Op Ed. Insanity. Gold soaring.
…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….
Update 2: ZeroHedge covers Ben’s OpEd. I cannot WAIT for Sen Rand Paul to ask Ben where he get off targeting stock prices and driving up costs for the middle class while he devalues our savings to prop up big equity. This adds jobs how exactly? Stock markets had their ephemeral fake recovery and there are still NO JOBS.
Update: RON PAUL is to Chair Monetary Policy SubCmte and remember Rand is coming to The Hill. Ben is SOL. Audit the Fed Baby~
Update: The ‘sages’ at the Fed speak:
Federal Reserve officials moved to prevent the Fed’s huge balance sheet from shrinking, an attempt to spur the U.S. economy’s recovery and avoid deflation.
At the end of a policy-meeting Tuesday, Fed officials said they would reinvest the proceeds from expiring mortgage-backed securities into longer-term U.S. Treasurys. The move should help a weakening economy by keeping mortgage rates low….
…The latest move by the U.S. central bank represents just a tweak in its strategy for managing its huge portfolio. But it’s a significant one since it could be a step towards new large purchases of both government bonds and mortgage-backed securities.
The Fed said it will release more details about the reinvestment operation later Tuesday….
Will Gentle Ben and Team FOMC give the markets what they want and talk QE2 in their Statement this afternoon?..the SF Fed came out and said we may have a SECOND recession in the next 1-2 years. Uhm that’s a double dip peeps face it, we never got out of the ‘ditch’ Obama keeps rambling on about.
The Zombie Market has started going up on BAD data again, expecting QE2. If Daddy takes the Punch Bowl away what will they do? Bonds and Stocks are moving TOGETHER, really WRONG that is.
Market speculation that the Federal Reserve will act to boost the economy at its meeting today has grown recently, but most analysts caution the U.S. central bank is unlikely to take any major steps.
U.S. stocks were higher Monday amid investors’ hopes that Friday’s weak jobs report could prompt the Fed to either resume buying assets, reduce an interest rate it pays banks on reserves to zero, or signal it will keep its benchmark short-term interest rate near zero for longer….
And what COULD they do for QE2, I am hoping the MS 1 pg refi for all is coming personally, I think it would boost consumer spending and cost nada.
These SOOPERGENIUSES have tried everything EXCEPT helping homeowners DIRECTLY, and it has ALL FAILED. Know why? Cause the ROOT of the collapse is HOUSING and CONSUMERS drive the US GDP that’s why. And I don’t even need a string of letters after my name to tell you that. Heh.
…The Fed could resume purchases of Treasury debt or mortgage-backed bonds, likely by using proceeds from existing holdings of such debt as they mature — at least to start with. It could stop paying interest on the excess reserves that banks hold at the Fed to encourage banks to lend more. The central bank currently pays 0.25% on excess reserves. Or it could try making a more explicit pledge to keep its benchmark short-term rate near zero for longer than the “extended period” phrase it has been using since March 2009.
But most analysts believe the Fed will only talk about these options at Tuesday’s meeting — leaving any action for if and when the economic outlook gets really bad. Dan Greenhaus, analyst with Miller Tabak & Co., believes the Fed will adopt a “wait and see” attitude, assessing incoming economic data and any further developments in the fiscal outlook before the Sept. 21 meeting….
Oh, they are going to wait until the economy ‘gets really bad’. Gee what the hell is ‘really bad’, we are already at 16% UE folks and here in AZ walkaways are spreading. It is nationwide, and once it is in the bloodstream of regular folks that they too can default as Hyatt did, well, it is a SEA CHANGE in attitudes these SOOPERGENIUSES are IMO unprepared for. If we, the people, really STARVE THE BEAST, GO GALT, whatever you want to call it, well if/when that happens the ‘system’ will REALLY be tested.
Why not just address HOUSING in a REAL way instead? Hmmmm?
The geniuses said we have NEVER had a consumer led housing led recession before..well guess what WE DID, the MOTHER of recessions. Time to think OUT OF THE BOX. If the consumers and their BIGGEST ASSET, their homes led us INTO recession then GEE, maybe addressing that the way they SAID they were with TARP but didnt, will help lead us OUT.
Consider this the Twofer Tuesday thread too, school has begun and I am on duty!
PS More bad economic data-inventory correction is SO OVER
and here is Calculated Risk on the ever-rising REO Inventory
Ben Bernanke: ‘Joblessness, foreclosures pose hurdles to economic recovery’ in other Earth shattering news, water is wet!
But he still denies that overly loose Fed policy has anything to do with the housing bubble V1…
…meanwhile Greenspan told the ‘Crisis Cmte’, lol, that it was Congress’ that pushed the Fed to allow all those loose lending standards and predatory products, and no regulator could have caught it, yeah whatevs Alan, you abandoned your Randian views and tanked the economy with not one but 2 bubbles, the dot com bust thanks to your loose rates and later the housing bubble…
James Grant, editor of Grant’s Interest Rate Observer, absolutely annihilated Greenspan on Bloomberg today during the hearing coverage-go to bloomberg for entire interview it is must see TV…
The lights actually went out in the Crisis Panel hearing with Greenspan, they continued in the dark for a bit, a metaphor from God surely, heh…
…Federal Reserve Chairman Ben S. Bernanke said joblessness, home foreclosures and weak lending to small businesses pose challenges to the economy as it recovers from the worst recession since the 1930s.
“We are far from being out of the woods,” Bernanke said today in a speech in Dallas. While the financial crisis has abated and economic growth will probably reduce unemployment (MiM here, italics mine) over the next year, the U.S. faces hurdles including the lack of a sustained rebound in housing, a “troubled” commercial real estate market and “very weak” hiring, he said.
The remarks reflect concerns by Fed officials at their meeting last month that the job market and tight credit would restrain consumer spending. At the session, Bernanke and his colleagues reiterated interest rates will stay very low for an “extended period.” He didn’t repeat that in today’s speech, while saying the Fed’s “stimulative” rates will aid growth.
“The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress,” Bernanke said in prepared remarks to the Dallas Regional Chamber…