09-10-2012 02:45 PM
Best guess, make of it what you will.
Blackhawk Ben and SuperMario have already jawboned the market to a level which would be consistent with a gnerally stable and improving global economy- e.g., they won (ran the buffalo herd into a box canyon for future slaughter).
To me, the timing indicates tha he may turn suddenly coy and not say a lot on Thurs other than that if needed he's got the bazooka ready. The big deal being that otherwise he'll be risking the future of the Fed (and the Masters of the Universe who are the primary dealer banks of the Fed) by being too political in this timeframe.
Remember when Governor Goodhair was going to give him a "good 'ol Texas whoopin'" for supporting Obama's policies?
09-10-2012 09:29 PM
Helicopter Ben won't unleash QE3 until after the election. If he does it now, we'll see $4+ gasoline before election day plus major food inflation. Helicopter Ben likes his job. He'll make all the necessary steps to make sure Obama is reelected. QE3 is inevitable, but it won't happen until late November-December. It's unpopular and the Bernank knows it. No matter what, it's still a race to the bottom with Europe. Japanese stagflation is here to stay.
09-10-2012 11:47 PM
Almost there...gasoline was 3.92 here in southwest Wi today... I can't imagine the Obama admin likes what is happening so close to d day. I would imagine we'll see some release from the SPR or something else to crash the price of oil in the next few weeks. Never good if no one can afford to drive to the voting booth.
QE? Probably, but it doesn't do anything anymore. Are they sending us all checks? Inflation inflation inflation...
09-11-2012 06:03 AM
Inflation only in things that bankers can buy with QE funny money..... stocks, bonds, commodites.
Not in wages, homes etc. Thus you get a one off effect fromfood and energy in CPI/PPI then nada as the rest of the economy slowly gets bled.
09-11-2012 06:11 AM
I agree that QE never did a lot and will diminish with each further round.
It squashed the long end of rates down, thus theoretically helping housing, other long term assets some and it ramps up stock prices and thus improves consumer confidence and the wealth effect.
Can you make housing prices rise on stangant incomes and stocks run to all time highs on a struggling global economy?
Actually wouldn't say never as it no longer has to do with the economy as much as the central bankers machinations but I'm skeptical.
09-11-2012 08:02 AM
They wont need the qe3. I believe most of the the problems we see are man made and a few tweeks to policy will do more the any money monupulation. First is attacting all commodities since too much money from the economy is being spent there. Drill more oil build more refineries, and burn more coal and natural gas is the first start. Obummer wants high gas prices to usher in more expensive green energy. Without this we wont need the food vs fuel debate since we wont need to burn corn in our tank, whick brings the price of food down in the stores. In that way more discretional money enters the economy increasing jobs. I cant remember who said bernencky was a traitor to the US (Romney or the texas Governor), doesnt matter because his days at the fed are numbered.
If Obamma regains another term we will look at more of the same from the last 4 years.
09-11-2012 10:12 AM
Heaven help us if we have another 4 years of $8 corn and $17 beans.
I beleive that coal production is way up, That oil production is way up and they are exporting. They could always build refineries if they wanted to. Controlled refining capacity controls prices at the pump.
If your like Bush/cheney on steriods vote for Romney/ryan.
09-11-2012 10:44 AM
Sounds like your platform is the same as Willard "Dry Hole" Romney's.
People losing their asses even when they hit on NG.
Coal folks are hurting bad as ultra cheap NG displaces power generation demand.