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 : FOMC announces $600B targeted toward the ‘long end’ 5-6 yrs, if they do it all yr + the reinvestment of previous purchases per NYFRB they should hit 1 Trillion.
ElErian says it will backfire and lead to QE3, PIMCO seems pixxed.
Update 11:15am ET: Gold is getting absolutely hammered. Down $25 to $1331.70. Appears the street thinks the Fed will pull its punch and disappoint. You know what I say? Good time to buy!
Were I the Fed I would move big now before Rand Paul takes my money printing machine away. Of course I think we should end the Fed at this point, they are propping up TBTF balance sheets and killing the middle class.
QE2 is expected to depart the Federal Reserve steaming toward the TBTF balance sheets at a clip of $500B and further purchase announcements ‘as needed’ at 2:15 pm ET!
All Aboard for falling US Dollar and rising commodities!
I for one cannot WAIT for Ben Bernanke to face the righteous wrath of Senator Rand Paul on this monetizing and taking on worthless paper to bail out TBTF.Senator Paul will no doubt ask where Bernanke thinks he gets this authority and how it helps fulfill his dual mandate of price stability and full employment, which it does not.
Since the Dems were letting the middle class go down I say we all go down or not on our merits. Let the chips fall where they may, Damn the torpedoes! Full speed ahead! Let the TBTF frakkers fail~
As the guys on the street say, we need Potted Palms on the Trading Floor now that we are monetizing the debt a la Argentina pre collapse~
And the TERRIBLE AWFUL economic data continues to roll in. What will Team Obama do now?
And IMO you know what that means, buy my pretties! buy like the wind!
Alan Cummings’ sings ‘Money’ from Cabaret / Scrooge McDuck mashup by Kidwicked7th
Market Movers Friday: Retail sales up 0.4%, futures still down sharply on Sovereign debt concerns, Euro drops to $1.24 vs USD, Gold pops $16 to $1245…
Markets not convinced by the 1T ponzi scheme wherein the FED and the EMU trade printed money back and forth across the pond and claim they have fixed the problem.
Great, short, spot on analysis yesterday from David Hefty of Cornerstone Wealth Management. He forecasts a DOW pop and then a collapse later this year to DOW 5,000. He cites all the concerns the street (and MiM!) are feeling. And of course there is a denial consumed Bull in the segment too:
Retail sales popped 0.4% in April after being up over 1% in March and they have a deluded retailer on saying the American consumer has recovered and she wants a new pair of Jimmy Choos. BWAAAAHAAAAAA!!!!!
AS -IF!!! Frakkin maroons! He is claiming people earning 75k up is CORE OF MALL BUSINESS and is fine with UE. He is INSANE! Bill Taubman COO. BWAAAHAAAA!!!!! Ahh man that was a good one!
He says HOUSING PRICES ARE STABLE!!!! BWAAAHAFRAKKINHAAAA!!! Ahh man they really slay me these people.
In other NO SHXT! news the WSJ reports the massive US bailout ‘missed Main St’:
Government funding to U.S. banks has done little to ease the credit crunch for small businesses—and the situation doesn’t seem to be improving, according to a new report.
The value of large banks’ loans to small businesses shrank 9% between 2008 and 2009, more than double the 4.1% drop for overall lending, said a report released Thursday by the Congressional Oversight Panel, a group set up to oversee funds allocated by the federal government’s Troubled Asset Relief Program.
“Big banks pulled back on everyone, but they pulled back harder on small businesses,” said Elizabeth Warren, chairwoman of the oversight panel, in a discussion with reporters.
…said that small-business lending values at the smallest banks fell by about 2.7%, compared with a 0.2% decline in their overall lending….
Show me the money: EU announces *955b* fund to fight ‘wolves’ and ‘speculators’ and ‘defend the Euro’
Update: 9:51am the Euro Tarp is bigger than first announced…waaay bigger:
…They pulled 440 billion euros out of a hat, as a bailout fund for sovereign states. The IMF kicked in another 250 billion, and there’s another 60 billion coming from the EU itself. It’s just under a trillion dollars….
Word is the FED uncapped the swap lines also…rally zombie bull rally like the zombie you are..it’s a zombie world now…
Update: 9:30am EST: DOW opening…soaring on EU bailout and FED opening of swap lines to EMU…DOW up 212, wow NAS up over 100, GOLD down 10 to 1200.20 and holding there…all 30 DOW components open higher…Germany is on the hook for the big dollars…
9:32am: DOW now up 300, FOXBiz notes no curbs to the upside exist, lol…looks like a nice opportunity to SELL into the rally to me, but then I am a bear heh….
Will US markets open up, commodities fall with USDollar and Euro rise? If so, will it last more than a few hours? Only if the EU actually loads their bazooka with serious money. And the Fed better have the sense to stay out of it, the Congress critters will go wild if they try to get involved in the funding mechanism…
Expectations of decisive action buoyed the euro as trading began in Asia. It jumped 1.5 percent to $1.2939 as of 7:59 a.m. in Sydney. EU officials aimed to wrap up the meeting by 2 a.m. Brussels time….
European Union finance ministers moved toward agreement on an unprecedented loan package worth at least $645 billion to prevent Greece’s fiscal woes from triggering a broader sovereign-debt crisis and shattering confidence in the euro.Jolted into action by last week’s slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, the 16 euro governments sketched out plans to make 440 billion euros ($570 billion) available, with 60 billion euros more from the EU’s budget, according to three officials at the talks in Brussels. An additional, unspecified sum may come from the International Monetary Fund, the officials said.
“We are going to defend the euro,” Spanish Economy Minister Elena Salgado told reporters as she arrived to chair the meeting yesterday. “We think we have a duty for more stability for our currency. We will do whatever is necessary.”…
Ahhhoooo the Werewolves of London….it’s the FOXES in the henhouse they should be worrying about…
…“In the night, when the markets are opening, we cannot afford a disappointment,” said Finance Minister Anders Borg of Sweden, one of 11 EU nations not in the euro. “We now see herd behavior in the markets that are really pack behavior, wolfpack behavior.”..
France is using its intelligence agency to try and stop ‘speculation’ IOW they do not want the Euro to trade ‘freely’?
French financial authorities will work with intelligence services to crack down on speculators seeking to profit from the debt crisis by spreading unfounded rumors, the head of the AMF markets watchdog said on Friday.
“We are in a period when rumors are affecting the security of states, the credibility of the euro zone,” AMF president Jean-Pierre Jouyet told I-Tele television.He said market authorities would use all the means at their disposal and would work with the DCRI, a domestic intelligence service that normally handles cases of counter espionage and cybercrime.
If necessary, investigators would look at “everything which might have been exchanged in the form of emails, text messages, anything which might have been put up on internal bulletin boards at banks or funds,” he said.
“If it turns out that certain baseless rumors…are not backed up by…any rigorous analysis, I do not doubt that there will be sanctions against the operators,” he said.
The comments, which follow similar remarks on Thursday by Economy Minister Christine Lagarde, add to a growing chorus of condemnation in Europe of what many politicians have described as speculative attacks against the euro on financial markets….
Changed post title, CNBC had a bad title there, El Erian did not say it was frightening, he said we have serious concerns over the contagion and solvency…
Yesterday’s interview, which CNBC tried to blame for the market plunge, lol:
Greek Parliament ratifies austerity measures, EURO tanks, USDollar rises, GOLD soars up $24 to $1199, DOW plummets +200
Duncan Niederauer, NYSE Euronext CEO discusses whether error really caused the market plunge today
8:09pm EST: NYSE cancels all trades made between 2:40pm and 3:00pm that were more than 60% off.
Word is after the first really low maybe -off- trade, the computers ran wild with it, Since NYSE has a sort of stopbreaker where they wait maybe 60 seconds to put a trade through if it looks really ‘off’, the trade just moves to the next electronic exchange for a price, the other exchanges do not have the stopbreak so the trades go through, wrong and all. Then the quant models, the buy and sell limits all start kicking in automatically and we get what happened today.
Several respected traders came out this afternoon and said the market is broken, it is too fast. We need the NYSE stopbreak model applied to all electronic exchangs or it will happen again. Duncan Niederhauer cam eon with Maria Bartiromo and explained it well, I will post the video.
SEC and CFTC say they are examing today’s events.
Duncan said tomorrow will probably be ‘ugly’.
3:58pm EST: So a bad trade on PG off by a digit is rumoured to be responsible for the drop from -400 to -998 and back to -400ish. But the Euro plunge, the USDollar rocket, the GOLD surge and the 400ish drop are all fer realsies.
DOW closing down 354 to 10514, those sell programs that ‘kicked in’ saved lots of bacon. But having humans on the floor making the trades would likely have prevented the entire bad order issue in the first place.
3:07pm EST: The 998 drop is an intraday record, now DOW is down 366. I went ahead and pulled the trigger on the LYV buy I have been eyeing. Since I cant beat Ticketmaster I may as well join ;em, the frakkers!!!
2:51PM est: I think the plunge protection team stepped in, suddenly back up to down 650-where are the trading curbs??
2:49 HOLY SHXT, DOW DOWN 956, US DOLLAR SURGING against EURO, FORGET Obamas export plan, PFFT!
2:48om EST: Holy shxt DOW now down 778 and not stopping, this is fear the US will go the way of Greece, we need to STOP SPENDING
2:44pm EST: Above the post update-DOW now down 503 to 10364, GOLD crossed 1200…hang on sloopy!
you know what that means….
2:20pm EST: the crowd is pushing closer and closer to the police line outside Parliament in Athens
…DOW now down 270
2:24pm EST Crowd dispersed into small groups outside Parliament and are now moving into commercial center…