Will Uncle Benny Fix the Markets Today? Or Are We Trading Up On A Hope & A Prayer?

Helicopter Ben is supposed to do a press conference at 2:15 Eastern.

Thus far, all I have heard reported on the meeting is the same old, same old. Everything is just seized up.

Fed lowers economic growth forecast, and raises unemployment projections....but the dow still up 115, I've never seen such blatant ignorance.

Indicative of manipulation.

With all the euro problems and their currency in such jeopardy, it amazes me that our dollar sturggles to stay as strong as it does. we are truely in trouble me thinks (me fears)

Bernanke just admitted that monetary policy is "less effective" in the current context.

I think this tells us a great deal -- that basically there is little more they can do at this point. I do not think that will come as a surprise to most of us.

The Fed is pretty much out of bullets, Europe is in the drink. I guess we just wait for the next shoe to drop.

The FED is "never" out of bullets as "you know damn well" the printing presses are running full bore continuously !

24-7-364 and a 1/4

I heard him say they would take action if necessary. Buying MBS or outright bond buying, if you dont think this will spur inflation youre dreaming. You can throw the delusional deflation theory out the window. There may be major market sell offs that whack stocks and commodities but those will never show up on the retail level.

Last Edited by Chucklebutt on 11/02/2011 03:09 PM

Actually I am in the stag-inflation camp. I believe we will see a crawling economy on life support but with inflation, especially in food & energy. Like the Carter era, but worse & for a longer time frame.

Oh, and do not call me names. I am hardly delusional & have defended you in the past when you have been called names. I can do without any further personal attacks.

Last Edited by LJS on 11/02/2011 03:22 PM

I did not hear Ben use the words "never" or "you know damn well". So why are they in quotes?

So, how long before they are printing what amont to toilet paper?

Last Edited by LJS on 11/02/2011 03:24 PM

I have no doubt about stagflation. I've been reading several articles lately fear mongering the mega deflation scenario. No way. Any massive market correction will be met with massive QE. Once the sell off is done and dollars are secure there will be a mad dash to buy anything tangible that will be a part of the reflation trade. We arent on a gold standard and there is nothing keeping the FED from doing it. If the market gets back down to March 2009 levels you'll see a bipartisan effort to jack the system up with a fresh dose of crack. Remember back to how quickly the last massive crack dose was pushed onto the public.

Last Edited by Chucklebutt on 11/02/2011 03:27 PM

I remember well. We must aslo remember that hyperinflation frequently leads to collapse, or vice versa. Agentina & Zimbabwe. No nice way out of this.

It already is.................the only reason that the dollar is worth "anything" is because it is the worlds "reserve Currency - Petrodollar" Once it loses this status it will be cheaper than toilet paper.

I dont see any hyper inflation. No signs of it until the peeps snap out of the consumer mindset. Here I am a goldbug and I just dont see it getting that bad. Im not at all saying we wont see horrid inflation. Been there, done that. I was directly affected by double digit inflation in the 80s. Ive tried to get my head around the hyper inflation theory but I see the rich feeding the poor wether they like it or not. Any potential currency crisis has a welfare check attached to it - paid for by socialism.

I was in the Kohls store today on my biyearly 1/2 hour shopping spree. There was no shortage of shoppers there. None of these folks looked as if they gave a rats ass about any potential currency crisis. I'll bet not one of them would have a clue as to what QE is.

Hell, I know five accountants, and not a single one knew what it was until I told them.

I've spoken to financial planners that have no idea what QE, World Reserve Currency or Petro Dollar even means.

Can you imagine entrusting your life savings into these people.

All anyone knows or has been taught, is "PAPER" that's it !
As long as it inflates everything is ok.

Dear God, that is SCARY!

My accountant has told me multiple times to stay the hell out of the market. He says I'm too young to be risking that much. I recently took his advice and got about 90% out

My point being the difference between inflation and hyper inflation. There basically has to be a no confidence vote consensus for the latter. The Chilis was full of face stuffing fatty's and the Kohls was full of spend crazy fatty's. Content and hyper inflation shouldn't be words that appear in the same sentence. But there ya go.

They sound like the clueless sheep crowd with their credit card addictions.

I always knew there was a more sinister reason for my high school "economics" class being nothing more than filing tax returns and balancing a check book.

So, the currency can never crash as long as people are too stupid to know it ought to, huh?

Last Edited by Revbo™ on 11/02/2011 06:52 PM

LMAO, not saying that. Just pointing out that so long as the system is taking fairly good care of the poor and the rich are allowing it to happen, it might go on and on for a lot longer than GLPers estimate. 47 million Americans on food stamps now. Thats not saying that if Greece contagion takes out all the PIGS and spreads to the USA that I wont change my mind about HI. I just think if it comes, its still years away. But what I have read on HI shows it happens very quickly.

Another thing I meant to mention is how important the so called "haircut" on Greek debt is. If it can be pulled off where a haircut of half the debt or more doesnt trigger CDSs then the derivatives arent likely going to explode. They cant or we're all in the stone age. That poster earlier in this thread explained CDSs best. The other thing to consider is the validity of CDSs if they arent triggered. What good are they in other words?

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