Saturday, October 6, 2012

Bernanke’s QE Makes Matters Worse

Bernanke’s QE Makes Matters Worse (via
The euphoria initially expressed by markets to unending Quantitative Easing (money printing) may be playing out. The last couple of days were mediocre in terms of stock market performance. For investors, it is a difficult time. Do you play for the inflation-induced bounce in stocks? That is the likely…

For the country, nothing good can come of Bernanke’s latest attempt to kick the can down the road. The problem is caused by overlarge government that is unable to fund itself. This problem is beyond the Fed’s responsibility and one that the Fed cannot solve. All Bernanke has done is enable the political miscreants to continue behaving badly. He has provided them with another hit of heroin when “cold turkey” is the only treatment to which they and the economy will respond.
Tyler Durden discusses the issue and provides some video:

On Santelli’s Queasiness About Bernanke’s Quantitative-Easiness

Submitted by Tyler Durden on 09/21/2012 12:58 -0400
Between CNBC’s Rick Santelli and PIMCO’s Mohammed El-Erian, this brief clip succinctly sums up the ‘less than ideal’ reality of Bernanke’s all-in bet and how the world is trying to ‘trade’ it. Santelli analogizes: “Visualize the biggest fire hose in the world, 20 miles away from a little Geranium plant? Now this hose is going and going and going, and ultimately, that Geranium plant gets a little bit of water but everything around it and leading up to it for miles around is just underwater. That’s QE, in my opinion.” To which El-Erian retorts: “at what point do you tell investors stop focusing on the benefits and make the collateral damage the investment theme?” It seems, given gold’s outperformance, that this is exactly what is occurring as the hose-pipe’s flood spills out everywhere.
 The discussion ensues, with Santelli noting that the Fed-heads (especially Charles Evans) have admitted QE is not ‘ideal’ but ‘We’ve got to do something!!”

From currency manipulators, to China’s problems, to our iGadget obsession, and the destruction of future generation’s wealth – epic rant! (

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