September 30, 2007

The brazen liars at the Federal Reserve put out more laughable bullsh*t today about not cutting rates. But of course, they'll be cutting rates again.


Remember when Helicopter Ben said this on the eve of slashing rates by a shocking 1/2 point:

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions."


And a month ago when wimpy Fed Governor Poole said this:

``If the Federal Reserve were to act when it turns out there is no impact, then clearly the market would say these guys really don't have the intelligence they need to have a policy actually based on solid evidence.''

Well, now Poole says this last week. BUT NOBODY BELIEVES HIS BULLSH*T ANYMORE. The Fed has decided to destroy the US dollar and let inflation rage, in order to prop up the banks which are failing or on the brink of failure. It is what it is.

Fed's Poole: mistake to bet on more rate cuts


St. Louis Federal Reserve Bank President William Poole, a voting member of the central bank's rate-setting committee this year, said on Friday it would be a mistake to bet on more interest rate cuts, and that he remained open about future monetary policy decisions.

"It would be a mistake to bake in the cake more rate cuts,"
Poole said in response to a question from the audience on financial markets' rate expectations. "We will go meeting by meeting."

30 comments:

Anonymous said...

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/28/cnushouse128.xml


"The equity markets are pricing in a 'Bernanke Put'. They are betting that the Fed will cut again and again, but they not factoring in the effect that this credit squeeze is having on the financial system," he said. "Cheap money is now history. There are not going to be any more of the big leveraged buy-out deals for a long time because the CLO [collateralised loan obligations] market that financed them is effectively closed," he said.

coffee is for closers still solvent said...

Yeah right, Cramer said on the Today Show that more rate cuts were in the bank...

Paul E. Math said...

You could drive a truck through the gap between what Bernanke says and what Bernanke does.

He's the guy that wanted a set of guidelines to govern fed decision-making so that outsiders could more accurately predict fed actions and business and consumers could act accordingly. But that's what he said before he became fed chairman.

What does Bernanke do now? He does a lot of jaw-boning about fighting inflation and then drops the overnight rate and the discount rate. What a guy.

sk said...

In his main speech( http://stlouisfed.org/news/speeches/2007/09_28_07.html), he shows awareness of the risk of being called a liar:

"a risk that is often incompletely understood by those outside management is reputational risk. The issue is much more than simple embarrassment. Trust is an essential capital asset for a financial firm and for a central bank. A damaged reputation can send customers fleeing to competitors. For a central bank, a damaged reputation can lead market participants to question the bank’s policy consistency, its motivations and even its veracity."

He doesn't get it that this has ALREADY happened. I just watch what they do not what they say - with a clear belief that they are more interested in bailing out banks ( short term rate cuts have NOT reduced mortgage rates, will not save the hapless home-owners, will not reduce commerical paper borrowing costs..) than they are in controlling real inflation ( not their silly PCE deflator or core inflation metrics).

With all that that implies for the US$..

-K

SPECTRE of Deflation said...

Bill Poole is nothing but a f**king liar, and the same goes for all the other well heeled thieves at the FED. They have made it more than plain that they are more full of shit than a Christmas Turkey on rates and the economy.

The bastards and bitches of the FED have no credibility with the world. They could lie like shit to the sheeple, but our trade partners are having no more of it. The 10 and 30 year bonds as well as the traditional 30 year mortgage are also calling the FED bullshit artists.

With a stated FFR of 4.75% why is the overnight rate sitting at 5.23% effective? Could it be that nobody wants our long term shitpile because they have no confidence in the FED's ability or desire to defend it's own currency.

The jackasses killed the goose that laid the golden eggs. Now the coveted goose just shits like a goose. Brilliant. NOT!

Anonymous said...

This man who believes that the reason for the tenacity of the Great Depression was the Fed not lowering interest rates fast enough may very well go down as the Fed chairman who caused the next depression by lowering them quickly and dramatically. Easy money, easy credit, Wall Street Casino (Old Maid, Musical Chairs), is what got us into the last great depression.

Anonymous said...

Great article from Forbes senior editor:

http://tinyurl.com/2299bw

Investors to Fed: Thanks for nothing

The reckless are getting relief from Bernanke while the prudent are paying the price, argues Fortune's Allan Sloan.

One of the core principles of the U.S. medical profession is the Hippocratic oath, the most famous part of which is "Do no harm." It's too bad that the governors of the Federal Reserve Board don't have to take such a pledge when they assume office, because their recent interest rate cut has done a lot of harm to those of us who've managed our finances prudently.

Even though the Fed's stated reason for cutting short-term interest rates by half a point was to help keep the economy from falling into recession, anyone who's been paying attention knows that a major motivation - if not the major motivation - was to try to calm the turbulence that has been roiling the markets since August.

The stock market has never seen a rate cut it didn't like. But Fed Chairman Ben Bernanke is penalizing the prudent.

The players in the biggest trouble, of course, were the ones who'd taken the biggest fliers in junk mortgages, ultra-risky leveraged buyouts, and other financial esoterica that proved to be malignant.

The stock market, which had been begging for a bailout and hasn't ever seen an interest rate cut that it didn't like, responded to the Fed's half-pointer by running prices up. Ben Bernanke, the Street decided, is just what the doctor ordered.

Anonymous said...

It should not be a surprise to anyone when Goldman Sachs...I mean the Fed cuts rates again next month. Bernanke is starting to remind me of Baghdad Bob with his statements about being concerned about inflation. They can't steal enough money from the average guy by cutting rates, so now they are going to raise the loan amounts on Fannie & Freddie and steal even more. They remind me of the Grinch going back to take the crumb from the mouse. These jokers don't even try to hide how interconnected and manipulated everything is at the top. Gee, I wonder why Goldman Sachs keeps blowing away profit expectations? How can they not with horse fixer Paulson giving them the tip. Oops, maybe I have it backwards. Maybe Goldman is telling Bernanke & Paulson what to do. When is a major debt holder of the U.S. gonna take a stand and start dumping bonds? These guys need to be called on the carpet. The fact that Congress sits still and lets this happen is a disgrace. We need more Ron Pauls. Every incumbent should be voted out with the exception of Ron Paul.

Veronica Lodge said...

RE: The Fed has decided to destroy the US dollar and let inflation rage, in order to prop up the banks which are failing or on the brink of failure.

And the plan is working!

The US dollar index has fallen from 80.00 to 77.67 in only 3 weeks and will go still lower. That's almost a 4% drop.

Now, we can pay off old higher-interest debts with inflated dollars and create inflated new debt by borrowing inflated dollars at lower interest rates. The Fed has really outdone itself this time.

With money now on sale, we should borrow as much as we can for as long as we can.

How can we lose?

V.L.

Anonymous said...

After the stock market crashes in a few weeks how far will they cut?

keith said...

Bernanke: The anti-Robin Hood

By slashing the federal funds rate, the Federal Reserve chief robbed from the country's future to give a gift to Wall Street. And a lot of ordinary Americans will end up getting hurt.

http://tinyurl.com/22kqey

By Bill Fleckenstein

The Federal Bank of Guardian Angels roared down Wall Street last Tuesday. Its mission -- to bail out the stock market -- was a success (for now).

But the rate cut was no gift to Main Street, which lies outside the loop of crony capitalism.

Long ago, the Fed abdicated its responsibility under then-Chairman Alan Greenspan. But now chief Ben Bernanke and the boys at the Fed have taken irresponsibility to a new level, where they have clearly demonstrated that they work for Wall Street -- and when Wall Street says jump, the Fed asks, how high?

So while the Fed, in its role of bartender of last resort, can lower short-term interest rates, over time I believe that long rates will rise, as foreigners (and Americans) digest what last week's Fed action means. Folks will recognize that inflation is not measured excluding food and energy, and will realize that inflation in this country is 5%-plus -- which would argue for long-term rates in the neighborhood of 7% or 8%. Thus it has been left up to the currency and Treasury markets to discipline the Fed, which always takes longer and is always far more painful.

Anonymous said...

When foreigners stop buying US bonds, what will we do? We'll have to live within our means. It will be a major shock to the masses.

Anonymous said...

#1 Rule of investing

DON'T FIGHT THE FED

You know they will lower so profit from it.

SPECTRE of Deflation said...

Veronica Lodge said...
RE: The Fed has decided to destroy the US dollar and let inflation rage, in order to prop up the banks which are failing or on the brink of failure.

And the plan is working!

The US dollar index has fallen from 80.00 to 77.67 in only 3 weeks and will go still lower. That's almost a 4% drop.

Now, we can pay off old higher-interest debts with inflated dollars and create inflated new debt by borrowing inflated dollars at lower interest rates. The Fed has really outdone itself this time.

With money now on sale, we should borrow as much as we can for as long as we can.

How can we lose?

V.L.

September 30, 2007 3:47 PM

That was the old plan. The problem now is that the world sees the new plan, and they want nothing to do with it. 77.67 on the Dollar has called the FED's BS moves, and the world says they don't want our falling dollar asswipe paper. But for the EU not having a bond market, the Dollar would of already have been put down like the dying animal it is.

If we get the additioanal rate hike that the EU has promised, you will see the Dollar do another big leg down. BOO-YAHHHHHHHHHHH!

Anonymous said...

This entire administration, from top to bottom; will be known as the home of the whoppers. They left no lie untold.

In reality, just do the opposite of what they say, and you will get it right.

Anonymous said...

I would guess that most punks in prison claim to NOT be punks, but when the big boys say what's what, they jump.

Same deal with the Fed poodles. They think that they can still "talk tough on inflation" and that it will have some impact. Nope. "Calamity" Poole lost all credibility after the last set of cuts. Fool me once.........

SPECTRE of Deflation said...

Anonymous said...
When foreigners stop buying US bonds, what will we do? We'll have to live within our means. It will be a major shock to the masses.

Bingo, and to think we know more than 300 million sheeple is damn scary! Just wait until the masses figure out that the FED has damned them. Blood in the streets comes to mind.

SPECTRE of Deflation said...

You see all of us have taken the RED PILL, and we know the truth. When the shit hits the fan this time, there will be more shit than the fan can handle. Where is Volcker Rooter when you need him?

Anonymous said...

try heraclitus as the medical oather..equal force met with equal force......

Anonymous said...

He forgot the most important point:

22. And best of all, there's plenty of water to keep all them golf courses green forever and ever! Keep everyone in 20-minute showers forever and ever! So keep packing them northern morons in, we've got enough northern AZ water to last forever!

Matthew said...

But that's what he said before he became fed chairman.

I'm sure he had no idea about the ruthlessness of real powerful people who would be pressuring him. In ways that You Can't Refuse.

There are trillions of bucks on the line depending on what he does.

"Your daughter, she's doing well at Princeton right? Holder Hall B102? Nice lookin place I hear."

GT said...

any HPers in the dc area wanna protest with me before the next meeting?

i am surprised, though i shouldnt be, that nobody does this..

Anonymous said...

Just wait until the masses figure out that the FED has damned them. Blood in the streets comes to mind.

Again, a perfect diversion. There will be all sorts of populist and barely-suppressed antisemitic spew about the Fed, when they weren't the REAL problem.

The actual problem has been the vigorous deindustrialization of the US lead by the private sector hypercapitalist class and their poodle the modern Republican Party, and the concomitant looting of teh Treasury and bureaucratic destruction of the US government.

These transnational persons have more class interests with tycoons in China than with an average American.

Anonymous said...

What does Bernanke do now? He does a lot of jaw-boning about fighting inflation and then drops the overnight rate and the discount rate. What a guy.<<<



what did you expect? he is just a man. he is one man. how can one man control so much? the obvious answer is that he can't. so if he is not the real power behind the throne, then who is? bernanke does what he is told like any good puppet. his actions are not his own. his actions are the wants and desires of the small group of powerful men who control the secret world of finance in this world and have for hundred's of years.....

Anonymous said...

Anonymous said...

This man who believes that the reason for the tenacity of the Great Depression was the Fed not lowering interest rates fast enough may very well go down as the Fed chairman who caused the next depression by lowering them quickly and dramatically. Easy money, easy credit, Wall Street Casino (Old Maid, Musical Chairs), is what got us into the last great depression.

September 30, 2007 3:15 PM<<<

all financial depressions and recessions are caused by the illegal and unconstitutional FED which was created illegally on a cold Christmas eve night in Decemeber 1913 by congress(even though most of them did not even vote on it).......

until we go back to real money systems, we shall always have problems with money. fiat money is not money. a note is not a dollar. real dollars are made of precious metals. if we had a real money system the world would be a much different place. the paper money system allows criminals to do what they do best......steal, rob, lie, murder, cheat and control humanity and enslave humanity with debts that can never be repaid..just remember. Jesus Christ chased the moneychangers out of the temple because He saw what they were doing and He saw them for what they really are. Isn't it about time we do the same?

DOPES said...

SCARE THE MONEY OFF THE SIDELINES TIME.

DOPES

Anonymous said...

I guess we all knew that Bernanke was full of sh*t when he quit raising rates last year and allowed the bum loan business to feast for yet another year. If he'd cranked the rates up more at that time, it would have stopped another full year of madness from piling on.

The Fed also has resposibility for regulating the banks. Guess he was too stupid to see there might be a problem with the banks so chose to NOT regulate. Instead sent little messages *asking* them to "please behave". WHAT. A. JOKE.

The guys' as reckless as the rest of his banking buddies.

They need to get rid of this namby-pamby joker and put somebody in whose got the balls to do what needs to be done. He's done enough damage already.

And yes, I know Greenspan started it all and Bernanke inherited a hideous mess. But really, we need somebody with the guts to clean it up. Not a jerk who's afraid to stop the out of control party so lets all and sundry pass out unconscious instead.

abb said...

More people are finding out, but there are PLENTY of people (billions) who still don't get it.

And as long as there are some left, there are profits to be had!

michael said...

cramer 1

bill poole's bullshit 0

Anonymous said...

Anonymous said: What does Bernanke do now? He does a lot of jaw-boning about fighting inflation and then drops the overnight rate and the discount rate. What a guy.<<<



what did you expect? he is just a man. he is one man. how can one man control so much? the obvious answer is that he can't. so if he is not the real power behind the throne, then who is? bernanke does what he is told like any good puppet. his actions are not his own. his actions are the wants and desires of the small group of powerful men who control the secret world of finance in this world and have for hundred's of years.....

Exactly right. What do the Rothschilds have planned for us next? Another fiat currency: The Amero.