CNBC : Who Needs Jobs When Wall Street Has the Fed?

Discussion in 'Wall St. News' started by ASusilovic, Dec 3, 2010.

  1. Pay no attention to those 15.1 million unemployed people—Wall Street instead is more focused on the man behind the Fed curtain and what he'll be doing to fire up the equity markets.

    Friday's significantly disappointing jobs report, which under normal circumstances would have sparked a significant selloff in the stock market, instead was greeted only with more expectations that Federal Reserve Chairman Ben Bernanke will continue aggressive monetary easing policies.

    I think the pundits at CNBC are beginning to smell the fraud and deception that Wall Street and uncle Ben and his gang are trying to sell the US public. Economic growth through stock price manipulation. This works so long as China is soaking up all consumer demand related liquidity. Take a look at monthly US import data ! Every single month more than $25 billion in trade deficits with China. Happy printing BEN, you will receive your payback and the US nation, too.
  2. S2007S


    Tells you the fed is playing the market, they control where they want it to go. As I keep saying it has become literally a risk free money making machine. Bubble ben bernanke thinks he has it under control but in years to come he will realize the significant problems he brought upon the economy.
  3. Some remarkable charts here. Pretty much every asset other than the dollar closed on a weekly, monthly, or multi-year high.

    When I started getting into this stuff, I remember thumbing through commodity price charts from the 70s, just amazed at the stupendous bull markets. I thought that was a once-in-a-lifetime thing. I was wrong. We're living through the 70s again. The only difference is that the gov't has figured out how to massage the numbers to keep the headline CPI low. Someone ought to ask Ben what $90 oil is doing to help the unemployed who have to drive their cars to job interviews and heat their homes this winter.
  4. give it some time

    oil almost 90
    wheat +4%

    it will be funny as core inflation will be negative as people spend all their money on food and gas

    so they will print more

    Next year will be interesting
  5. It's funny, two of the first economic principles I learned were (1) there is no "free lunch" (Friedman quote, but seemed to be universally accepted) and (2) there are trade-offs to any economic decision.

    Somehow Bernanke & Co. think we live in the free lunch world. Print money, pretend there's no inflation by using worthless, ever massaged/hedonically-adjusted inflation indicators and the world will be fine.

    According to Bennie & the Feds, our only possible threat is "deflation." However, responsible adults know it's about as much of a threat as a fire-breathing dragon in the closet. Just as Bernanke is about as much of an actual hero as Santa and the Easter Bunny.
  6. Larson

    Larson Guest

    Ben is the MAN. It is simply amazing to see how he keeps things propped up. I am beginning to think he has some mystical powers that thwart all naysayers and Fed haters. Hell, look at the bond market, it should have imploded months ago. All HAIL BEN!. Throw away your College Econ. textbooks, as Benny makes history.
  7. Actually, he's repeating it. Reference John Law.
  8. S2007S


    Oil at 2 year highs, prices near me are climbing and with the cold weather moving in oil is going to move higher as usual. Paid $3.25 for gas last week, Im sure by next week it will bump up another dime a gallon.

    And food prices are soaring, dont fucking believe any of the idiots who think inflation is tame, its far from it.

    Worthless dollar and skyrocketing costs will lead to another crisis in this country but of course everyone will ignore it until well after the fact.
  9. S2007S


    As I have said before Bubble ben bernanke has magic tricks and knows how to create illusions like 2-3% GDP growth and job creation.

    The bond market is a joke that will save for another time.

    As for those college economic books why anyone would want to be taught what comes from those books is beyond me, everything Bubble ben bernanke is doing goes against every single thing written in those books from the last hundred years. Bubble ben bernanke and friends only know how to create asset bubbles which they believe to be the growth story for our economy going forward. They have no clue the problems they are creating moving forward.
  10. There is no relationship between the overall (M3) quantity of money and inflation that is statistically significant.
    There is a lagged relationship as you move down, that's strongest, in normal times, with MZM. (I didn't read this in a textbook, I did the work myself).
    But these ain't normal times. Velocity of money is way down, as you'd expect when folks are shedding debt or being forced to shed debt.
    MZM and M2 both shot up during the crisis, then stopped growing afterwards. Inflation didn't shoot up and then come down, as those useless textbooks would have you believe, no doubt. That was because velocity fell off a cliff.
    It's now stabilized, and MZM and M2 have begun growing again. In a while, we will have normal levels of CPI again. No biggie.
    Or, to put it another way: you could add up the net worth of the country, available in one of those releases the Treasury puts out, I don't remember which right now. Net worth last time I checked - this is assets minus liabilities - was around 53 trillion bucks. The Fed is buying 600 billion of debt. This amounts to slightly to the north of 1% of the economy's net worth.
    Once again, no biggie.
    #10     Dec 3, 2010