Get ready for QE3?

posted at 8:50 am on January 13, 2012 by Ed Morrissey

Say, remember the great success of the first and second rounds of quantitative easing, the technical term for printing money?  If all you recall is increased inflation and a continuation of the economic stagnation of Obamanomics, well, you’re ahead of the Federal Reserve.  According to CNBC, the Fed will probably approve QE3, thanks in part to the high unemployment that the White House insists isn’t all that high:

Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing. …

Two of the new voting members this year on the Federal Open Market Committee, which sets interest-rate policy, have recently suggested they would support more assets purchases.

San Francisco Fed President John Williams said that sustained high levels of unemployment, as forecast by many Fed members, “does make an argument that we should have more stimulus.”

Another new voter, Cleveland Fed President Sandra Pianalto, said in a recent speech that economic models indicate the Fed “should be even more accommodative than it is today.”

If nothing else, this proves the Fed can calculate better than the Obama administration and most of the media.  The jobless problem goes far beyond the 8.5% unemployment rate announced a week ago.  Millions have fled the workforce, keeping the jobless rate artificially low.  The U-6 figure that calculates for discouraged workers sits at 15.2%, almost the lowest of Obama’s presidency but still nearly twice as high as December 2006′s 7.9%.

The Fed, as it did with QE2 especially, probably sees little choice but to take some kind of action.  Just as with QE2, though, another round of easing won’t help the underlying problems relating to either housing or employment.  The issue isn’t tight money policy any more — we haven’t made money this easy in, well, forever.  The problem in housing is employment; there just aren’t enough qualified buyers any longer.  And the problem in employment is an administration that keeps pushing short-term, gimmicky tax breaks that make for great headlines but do nothing to allow for long-term planning for investors, while increasing the ambiguity of future investment costs with bad regulation like Dodd-Frank and ObamaCare, which turns over rulemaking to the whim of bureaucrats.

Expect QE3 to be an embarrassing flop, but it won’t be the only embarrassment for the Fed:

The leaders of the Federal Reserve went around the room saluting Alan Greenspan during his last day as chairman of the central bank. Then Timothy F. Geithner, the future Treasury secretary, made a prediction.

“I’d like the record to show that I think you’re pretty terrific, too,” Geithner, who was president of the Federal Reserve Bank of New York, told Greenspan amid laughter on Jan. 31, 2006. “And thinking in terms of probabilities, I think the risk that we decide in the future that you’re even better than we think is higher than the alternative.”

On Thursday, the Fed released transcripts of its meetings in 2006, offering a new window into what was on the minds of some of the nation’s top economic and financial thinkers just ahead of the financial crisis and subsequent great recession. The transcripts, which are customarily released after five years, show that Fed leaders, armed with the best economic data available, had little idea of what was looming less than two years off.

Trusted to look toward the future and make decisions to keep the economy strong, they spent some of their time patting their leader on the back and even found time to joke about what turned out to be early-warning signs in the markets. While Fed officials — including several who are in key positions today — were aware that the nation’s rapid increase in housing prices was coming to an end, they significantly underestimated how much damage the popping of the real estate bubble would cause in the rest of the economy.

Well, I’m sure they learned their lesson.  Why, eventually, one of these rounds of quantitative easing has to work … right?


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Final
Nail
In
Coffin

Goodbye freedom…nice knowing you!

trs on January 13, 2012 at 8:53 AM

I heard the QE1 and QE2 hit icebergs and sunk…

ParisParamus on January 13, 2012 at 8:54 AM

AHHHHHHHHHHHHHHHHHHHHHHHHHHH!

Okay I feel better – okay really I don’t but I did for those 2 seconds.

gophergirl on January 13, 2012 at 8:55 AM

All that money we started saving when the economy tanked? All those gains our investments made since then?
 
Gone thanks to QE devaluing our dollar. We just don’t know it yet.
 
Spread the wealth around.

rogerb on January 13, 2012 at 8:55 AM

What else are they going to do?

They’re not going to cut spending.

Of course they’re going to print and spend more money – then brag to the proles about how they’re “working hard” and “doing everything they can” etc.

catmman on January 13, 2012 at 8:56 AM

Some time, sooner or later, we will have to pay for this. It will be a wave of inflation.

Unfortunately, if Republicans retake the government in late 2012, the inflation will hit after they take office, and it will be blamed on them.

Dextrous on January 13, 2012 at 8:57 AM

Sweet! My nest egg will be worth just a little bit less now.

Mord on January 13, 2012 at 8:58 AM

It’s called keeping up with the Euro. What else are they going to do when the ECB starts pumping out those Euros to bail out Greece, Italy, Spain ad infinitum.

JimK on January 13, 2012 at 9:00 AM

At this very moment, there are individuals working collectively toward the implementation of a world crisis scenario that will provide the platform for the unification of the Federal Reserve, the IMF, with a strong assist from other such entities as the UN…the climate change movement is involved…those are merely laundering organizations you know…window dressing.  Deceptions…climate change, AIDS relief, world hunger relief, disaster relief…on and on and on.  The Clintion Initiative…-name deleted- almost let that slip with you recently… each a small portion of the larger puzzle…all the pieces…I have watched over decades as these pieces have been moved into place.  And before you wish to insult me – yes, I have put forth time and effort…often at great personal expense, to slow what appears to be an unstoppable force.  This is the topic of which I have protected you from.  This is the threat underway at this very moment. It has always been…and now it appears ready to reach its intended conclusion.  Your Ron Paul – George Soros stories? Rubbish.  All of it. Pure rubbish.  And I will add this…Congressman Paul, for all of his many other political faults of which I am well aware…the naive – even dangerous, foreign relations views, his rather questionable outlook regarding Israel…all of that is secondary to me when compared against the truth he speaks regarding the Federal Reserve, the collapse of the dollar, and the absolute and horrific chaos that will be unleashed upon the country and the world if the United States does in fact fall into the abyss.  It is that message that cannot be diminished! It is that message that MUST be an essential component to the 2012 campaign – whoever the Republican candidate is – they MUST challenge President Obama on that issue.  Time and time again.  That issue must be raised in this election, and if this country be so fortunate – the next election, and every election after until the doomsday scenario being played out by the likes of Ben Bernanke and others is resolved

From http://theulstermanreport.com/2012/01/08/wall-street-insider-19th-and-g/

FLconservative on January 13, 2012 at 9:01 AM

How unexpected!
Is it Bain & Company’s fault?

KOOLAID2 on January 13, 2012 at 9:01 AM

Wasn’t it Einstein that said, ‘doing the same thing over and over again and expecting different results is the definition of insanity’?

celtic warrior on January 13, 2012 at 9:01 AM

QE3 will probably be held in reserve a bit longer until it can have time to work for Obama’s re-election campaign. My guess would be sometime around March. Most of the fiscal hawks in the Fed recently left, leaving the field almost entirely controlled by the “doves” – those who agree with Bernanke and Obama’s views.

We need to be asking the candidates whether they would support the continued printing of money and the inflation of the currency instead of running ads about whether one speaks French or whether the other “hates capitalism.”

But of course, we don’t do that since most people have no idea what QE even is or why it’s so bad. Instead, let’s talk about gay marriage!!!

Doomberg on January 13, 2012 at 9:03 AM

What the Federal Reserve is doing is killing off that relationship – that critical symbiotic component of a free-market economy.  We are on this day a more centralized economy than at any other point in our history.  Fiscal contagion can spread from nation to nation with a single click.  Trillions upon trillions in value has been wiped out of the market by the printing of money with lessening value.  When you wonder why Wall Street has succeeded under President Obama while Main Street continues to struggle is simply because Main Street still exists in some semblance of a free market economy.  That relationship between the value of money and the cost of borrowing that value still exists.  Wall Street has been allowed to exist outside of that reality.  The Fed has made it so, and the result…we are nearing just the beginnings of that result – will be outright economic disaster.  2008?  Nothing.  1929?  Yes – that is where we are going here.  And with that kind of economic chaos – what is soon to follow?  Read you history.  War. Famine.  A total shock to the system, except this time, we have a proliferation of nuclear weapons, countries such as Iran, North Korea, Pakistan, they will be directly involved in this chaos.  And of course there is China…the time I could spend on China…

http://theulstermanreport.com/2012/01/07/wall-street-insider-we-are-at-the-abyss-it-is-happening-now/

FLconservative on January 13, 2012 at 9:04 AM

The Slot Machine administration….yanking the lever hoping something hits all while fully knowing the odds are totally against them…

hillsoftx on January 13, 2012 at 9:05 AM

Everyone calm down, think about all the possibilities that QE3 will bring us! Here is a small list I just thought up in the time it took me to type this post!

1. Cheap source of heat, money burns up good.

2. Paper is a good source of fiber, eat up!

3. Stuff your jackets with it for warmth.

4. Origami.

5. We can all build money forts now, AND have money fights.

IT’S WIN/WIN! The Bernak wouldn’t lie to us.

Gatsu on January 13, 2012 at 9:05 AM

Yup, just keep crapping on us, one step closer to oblivion…

insidiator on January 13, 2012 at 9:05 AM

The fed, with the acquiescence of congress, is using inflation to steal from the people who have saved and invested responsibly in order to bail out those who did not and to finance other continued out of control federal spending.

Nomas on January 13, 2012 at 9:07 AM

FLconservative on January 13, 2012 at 9:01 AM

FLconservative, I know it may be a bit much to ask, but in the future it will be nice if you can condense that kind of long, rambling paragraph down to the specific point you want to make.

Dextrous on January 13, 2012 at 9:08 AM

Why not? I mean, it’s not like we’re $16trillion in debt. Oh wait that’s right we are!

HerneTheHunter on January 13, 2012 at 9:09 AM

FLconservative, I know it may be a bit much to ask, but in the future it will be nice if you can condense that kind of long, rambling paragraph down to the specific point you want to make.

Dextrous on January 13, 2012 at 9:08 AM

Um they are posting comments from someone else – those are not the posters words.

I for one am grateful for them posting these. They are interesting.

gophergirl on January 13, 2012 at 9:10 AM

QE3 has NOTHING to do with joblessness; it has EVERYTHING to do with the deficit. It will be done because NO ONE is willing and/or able to buy the treasury bonds in sufficient quantity to keep this country afloat. Essentially, instead of borrowing to cover our spending beyond our means, we’re printing the money because our national credit card is maxed out globally. The dollar is in every bit as much trouble as the euro, but we have no previous currency to fall back on.

michaelo on January 13, 2012 at 9:11 AM

sweeeeeeeeeeeet! My shiny metals will be worth that much more! Go Ben!

thedevilinside on January 13, 2012 at 9:12 AM

Don’t blame me
-dear leader

cmsinaz on January 13, 2012 at 9:12 AM

All that money we started saving when the economy tanked? All those gains our investments made since then?

Gone thanks to QE devaluing our dollar. We just don’t know it yet.

Spread the wealth around.

rogerb on January 13, 2012 at 8:55 AM

What better way to redistribute wealth than by printing money and passing it out in transfer payments? Much easier than raising taxes.

petefrt on January 13, 2012 at 9:14 AM

For the love of all that is holy, will someone get these clowns to not do anything??

Spannerhead on January 13, 2012 at 9:14 AM

QE4 – Fed buys unwanted houses and cars (incl. Chevy Volt)
QE5 – Fed creates new game show “Who wants to be a trillionaire?”
QE6 – Fed allows toilet paper to be used as currency
QE7 – Fed opens world’s largest flea market/pawn shop
QE8 – Fed pays Obama to leave the country permanently (this one works!)

Marxism is for dummies on January 13, 2012 at 9:17 AM

Dextrous on January 13, 2012 at 9:08 AM

Just trying to give you the gist of the link so you don’t need to go and read the entire thing

gophergirl on January 13, 2012 at 9:10 AM

Thanks you and you are exactly right. The articles on that blog are interesting and gives a lot of insight as to what is really going on.

FLconservative on January 13, 2012 at 9:17 AM

Always room for The Ben Bernank video:

http://www.youtube.com/watch?v=PTUY16CkS-k

Abby Adams on January 13, 2012 at 9:17 AM

And a fundraiser ad for Ron Paul on the page – how appropriate!

Archivarix on January 13, 2012 at 9:17 AM

The Fed hadn’t a clue of what was to come… even as late as the summer of 2006. As Greenspan later testified to Congress, he believed at the time that subprime loans on comprised 7 percent of all mortgages, and therefore represented a minimal financial risk. Keep in mind that in 2005 and in early 2006, McCain and others were raising alarm bells about the potential financial disaster that loomed given that fannie and freddie held nearly seven times the dollar volume of subprime loans as compared to the private sector (a consequence of the 1996 amended CRA). Social engineering was pushing those in the government to minimize or discount the warning signs.

WordsMatter on January 13, 2012 at 9:18 AM

I can’t believe they are even considering QE3.

mankai on January 13, 2012 at 9:18 AM

sweeeeeeeeeeeet! My shiny metals will be worth that much more! Go Ben!

thedevilinside on January 13, 2012 at 9:12 AM

Your shiny metals may not be all that valuable when the only things people desire are things that they can use.

Tremor on January 13, 2012 at 9:19 AM

This is Obama’s plan to make everyone millionaires! Soon even the people in the projects will have millions of dollars. The problem is that a million dollars will buy you a loaf of bread.

jeffn21 on January 13, 2012 at 9:20 AM

I can’t believe they are even considering QE3.

mankai on January 13, 2012 at 9:18 AM

Why shouldn’t they? the first two worked as designed – i.e., made Goldman Sachs richer – and there’s more money to steal.

Archivarix on January 13, 2012 at 9:20 AM

When the only tool you have is a hammer, every problem looks like a nail.

WordsMatter on January 13, 2012 at 9:22 AM

Makes me want to support Ron Paul.

mankai on January 13, 2012 at 9:23 AM

For the love of all that is holy, will someone get these clowns to not do anything??

Spannerhead on January 13, 2012 at 9:14 AM

I would expand the clown roster to include Congress. :-)

Fallon on January 13, 2012 at 9:23 AM

Um they are posting comments from someone else – those are not the posters words.

I for one am grateful for them posting these. They are interesting.

gophergirl on January 13, 2012 at 9:10 AM

Yes, obviously he is posting comments from someone else. He could post someone’s entire blog if he wanted. But usually we quote someone because it expresses a point we agree with, or because we admire the writing. (The second paragraph is better.)

Dextrous on January 13, 2012 at 9:23 AM

QE3 KY3. Grease up, serfs.

TheClearRiver on January 13, 2012 at 9:27 AM

QE3…
Just like the Friday the 13th movie(s)…..
It never ends.

Electrongod on January 13, 2012 at 9:29 AM

If Perry had stood strong on his threat to hang this POS he’d be at about 90% in all the polls.

abobo on January 13, 2012 at 9:31 AM

I’m sure Obama will sail to re-election with $5 gas.

John Deaux on January 13, 2012 at 9:33 AM

The $h!t is going to really hit once the GOp president takes office and will get the blame on Jan 2013

Spot on dex

cmsinaz on January 13, 2012 at 9:35 AM

Technically, QE3 is already well underway – the Fed began increasing their portfolio of Mortgage Backed Securities (MBS) once again in the fourth quarter of 2011:

Zero Hedge also noted an unusual $31 billion surge in Fed MBS purchases last week. This only brings the level of these back up to values in October, but it doesn’t seem to fit the recent pattern of MBS buying. That same article also infers that there was an unusual $2.5 billion one-day loan through the Fed’s discount window on December 1.

The Fed began hinting that QE3 was on the radar back in their November 2011 meeting. That additional MBS purchases would be part of it was signaled by New York Fed President William Dudley.

Could be decent for stock prices though should they relaunch their buying of U.S. treasuries.

ironman on January 13, 2012 at 9:36 AM

The fed, with the acquiescence of congress, is using inflation to steal from the people who have saved and invested responsibly in order to bail out those who did not and to finance other continued out of control federal spending.

Nomas on January 13, 2012 at 9:07 AM

It’s not even that. Zero Hedge showed some months ago that most of the QE2 money went to bail out European banks. They’re are just pissing away money because they don’t know what else to do with it and are desperate to create headline-driven rallies in the stock market.

Doomberg on January 13, 2012 at 9:40 AM

This won’t work, it will only further the damage, we will all suffer because of it.

Bmore on January 13, 2012 at 9:41 AM

The problem in housing is employment; there just aren’t enough qualified buyers any longer.

There never was enough qualified buyers. The “can you fog a mirror” credit test created an enormous artificial demand for housing. Unless we return to that, we have a long era of unemployment in housing construction.

Please note the Barney and Company did not choose to include Fannie & Freddie in the Dodd Frank bill. Wonder why?

dhugh on January 13, 2012 at 9:47 AM

Getting promoted gains me a 5% raise. Yearly reviews gain us between 1.5% – 2.5% raises depending on personal performance. If I start getting promoted every year for the next 8 years, I would be at the highest level in the company. My quality of life would be exactly the same because I would just be keeping up with the inflation they’re purposely creating.

Kelligan on January 13, 2012 at 9:53 AM

No wonder Frank is leaving. Want to bet he skips the country next? Do these azzclowns in congress realize that their money is be devalued along with ours? Of course not, they think the stealing will just continue when the reins of power change hands. Almost makes me want to pitch a tent on the court house lawn. Almost.

Kissmygrits on January 13, 2012 at 9:59 AM

Question for you Zero Hedge guys. Does the site ever come out and tell you what to do with the information they post? The focus of the site seems to be to explain what is happening in the world of finance that doesn’t get reported in the MSM. But I don’t recall seeing clear predictions about how the markets will move.

Dextrous on January 13, 2012 at 10:08 AM

Oh, because quantitative easing, I mean printing money, doesn’t have anything to do with inflation or anything else. There’s no effect whatsoever!

I used to think that it was just straight up greedy incompetance in this administration, but more and more I’m leaning toward thinking it’s legitimately evil.

RadioAngel on January 13, 2012 at 10:21 AM

This is all part of the master plan to crash the system. QE3 will prolong things long enough to see an increase in markets, gold and silver, etc. Then once the Republican candidate is elected, any austerity will produce catastrophic events here and worldwide. Socialism will come roaring back under the promise of saving the world. And America will fall for it. As did Germany, etc, etc, etc.

BierManVA on January 13, 2012 at 10:22 AM

Why, eventually, one of these rounds of quantitative easing has to work … right?

Theft by any other name is still theft. The Feds original mission was to protect the value of the dollar. That has worked out as well as the Obama administration has.

chemman on January 13, 2012 at 10:33 AM

but more and more I’m leaning toward thinking it’s legitimately evil.

RadioAngel on January 13, 2012 at 10:21 AM

Late to the party but we appreciate you joining.

chemman on January 13, 2012 at 10:35 AM

Question for you Zero Hedge guys. Does the site ever come out and tell you what to do with the information they post? The focus of the site seems to be to explain what is happening in the world of finance that doesn’t get reported in the MSM. But I don’t recall seeing clear predictions about how the markets will move.

To a certain extent, but it’s not really a personal finance site. Pretty much he advises against holding much in the way of stocks right now, if anything at all. He also seems to favor precious metals.

eyedoc on January 13, 2012 at 10:41 AM

Hyperinflation is generally considered to be an increase of over 50% in price levels. http://en.wikipedia.org/wiki/Hyperinflation

[Gasoline] Pump prices have more than doubled since Obama took office in January 2009. http://www.mrc.org/bmi/articles/2011/Rising_Gas_Prices_Linked_to_Obama_Drilling_Ban_in_Just__of_Evening_News_Stories.html

Granted, there are other factors invovled other than the printing of money. But the fact remains, gasoline pric3es, by definition have hyperinflated.

davidk on January 13, 2012 at 10:47 AM

Trusted to look toward the future and make decisions to keep the economy strong, they spent some of their time patting their leader on the back and even found time to joke about what turned out to be early-warning signs in the markets. While Fed officials — including several who are in key positions today — were aware that the nation’s rapid increase in housing prices was coming to an end, they significantly underestimated how much damage the popping of the real estate bubble would cause in the rest of the economy.

This is the Ivy league,elitist crowd that is always talking about how stupid everybody else is.

These narcissist along with many politicians have helped destroy the economic foundations of millions of Americans and are still at the helm.

Not one person…on either side of the aisle or sitting in executive suites has been held accountable.
….he!! Geithner was right smack in the middle of the creation of this mess and he’s a top man on Obama’s staff.

Pathetic and maddening.

Baxter Greene on January 13, 2012 at 11:08 AM

The Fed is essentially taxing us without benefit of legislation. They’re keeping interest rates low so the money you put in the bank is loosing more in inflation than it’s gaining in interest, the difference in value going into the coffers of the federal government.

Didn’t we fight a war about “no taxation without representation”?

Socratease on January 13, 2012 at 11:43 AM

sweeeeeeeeeeeet! My shiny metals will be worth that much more! Go Ben!

thedevilinside on January 13, 2012 at 9:12 AM

While precious metals should be a part of your investment portfolio, you should be certain to TAKE PHYSICAL POSSESSION OF THEM. The paper PM market is, in my opinion, a farce, and is heading for a crash.

Also, realize, that, the government can at a whim take your gold, silver, or anything else from you, at a confiscatory price, and you can do jack about it. The U.S. government can also levy taxes on the exchange of precious metals, also effectively confiscating it. They can, and have in the not so distant past, made it illegal to own in significant quantities of gold, and if that were to happen, you’d for all intents and purposes, have “heroin” in your home safe.

Can you pay bills and buy groceries with heroin? Your investment would make you a criminal.

I am not trying to piss on owning PM’s – I have physical possession of gold and silver as part of my investments. But be careful of listening to hucksters who sell precious metals as the end all be all wealth preservation outlet if shit-hits-the-fan. Over saturating your investments with anything is a bad plan, and beyond leaving you overexposed to market flux, you stand to loose everything, as our dying government is going to grasp at every possible outcropping on the way down to hell.

A quick google search on “F.D.R. Gold Confiscation” should immediately illustrate why any investment portfolio should diversify beyond the pretty metals. Think global.

Gold is a piece, not the end all beat all.

________________________________

As to Zero Hedge
– they are an interesting group. There are between 10 and 25 guys that post under the name “Tyler Durden.” They are all money insiders working for large and power financial institutions, who post under the Pseudonym to avoid retribution for their scathing analysis of the global financial system.

The “Tylers” run the gamut of political philosophies, from deeply conservative, to heavily socialist, to very anarchist. (The classic definition, not the commie-lite that call themselves “anarchists” and then spout for a nanny state). I find that libertarianism – again, classic definition, not the Rue Paul flavor – tends to run hard and heavy amongst the Zero Hedge ranks.

What they focus on, is review and analysis of the global markets that the MSM won’t touch – or outright HIDE. They are NO friends of the Obama Administration, and their scathing of him – and particularly of his awful reserve and treasury cronies, as well as his political and fiscal policies, is a direct and known thorn in his side.

They also skewer the Republicans, and they do alot to deserve it. Boehner and his squishes are also a part of the problem, and they are not afraid to point it out.

Another good financial site that will pick apart the “crap” our pathetic news media pukes out is Karl Denninger’s “The Market Ticker.”

Of course, if you want REAL unemployment numbers, check out John William’s “Shadow Stats.”

If you are a CNBC and Fox Money regular, you will be shocked how far down the rabbit hole we really are on a global scale.

SilverDeth on January 13, 2012 at 12:11 PM

Another good financial site that will pick apart the “crap” our pathetic news media pukes out is Karl Denninger’s “The Market Ticker.”

Need to be careful these days with Denninger. He is totally in the tank for OWS and deliberately smears the Tea Party by conflating the actions of Tea Partiers with the actions of Republicans. I have liked him a lot less recently. However, his pure financial analyses are spot on.

Doomberg on January 13, 2012 at 12:42 PM

Thank God more “Easing” is on the way. I was beginning to miss paying $4.00 a gallon for gas.

Mike Honcho on January 13, 2012 at 1:09 PM

Well, I’m sure they learned their lesson. Why, eventually, one of these rounds of quantitative easing has to work … right?

If at first you don’t succeed, try, try, again, & again, & again,…

right?

Some ma ma beach…

rocker98 on January 13, 2012 at 1:20 PM

The problem in housing is employment; there just aren’t enough qualified buyers any longer.

Have any of you tried to buy a house in the last 6 months? It’s absolutely ridiculous what mortgage lenders are making people with sterling credit ratings go through. It’s almost as if they are purposefully making it too hard to buy a house to slow sales to a trickle.

olesparkie on January 13, 2012 at 1:36 PM

Get ready for QE3?

I’m sure that the political cronies on both sides of the aisle can hardly wait for their new found money while the rest of America gets the bill.

RJL on January 13, 2012 at 2:11 PM

Why Alan Greenspan skates, being the culprit that he is, is magic.

History will record that he was one of the biggest contributors to the current financial and other woes of the world.

Schadenfreude on January 13, 2012 at 2:14 PM

There were many more than just 2 QEs. There was QE1 ‘lite’, QE2 ‘lite’, and Operation twist (sell short term bonds to keep long term rates down.). The ‘lites’ involved reinvesting maturing bonds into new stuff.

all failed. I’m sick of it all.

Chubbs65 on January 13, 2012 at 2:20 PM

FLconservative, I know it may be a bit much to ask, but in the future it will be nice if you can condense that kind of long, rambling paragraph down to the specific point you want to make.

Dextrous on January 13, 2012 at 9:08 AM

Um they are posting comments from someone else – those are not the posters words.

I for one am grateful for them posting these. They are interesting.

gophergirl on January 13, 2012 at 9:10 AM

A simple link to it would be appropriate – not cutting and pasting great swathes of it.

Midas on January 13, 2012 at 2:25 PM

Need to be careful these days with Denninger. He is totally in the tank for OWS and deliberately smears the Tea Party by conflating the actions of Tea Partiers with the actions of Republicans. I have liked him a lot less recently.

It’s nothing new.

In a June 2007 Wall Street Journal editorial meeting regarding conservatives that want to secure our borders and enforce our immigration laws Denninger says:

“Their objection is fundamentally cultural, and they can’t say that.”

Which, in the context of that meeting, was a polite way of calling conservatives a bunch of racist bigots.

Denninger’s comments at that WSJ Editorial meeting were preceded by Paul Gigot calling conservatives “irrational” for wanting our immigration laws enforced and borders secured.

The Wall Street Journal is little better than the NYT.

RJL on January 13, 2012 at 2:28 PM

My first ten years were the thirties. My last ten are likely to be the tens. I see little to choose between them.

The Republicans are marginally better than the Democrats. The last two Republican Presidents, the Bushs are both neoconservatives.

From the “godfather” of neoconservatism via wikepedia,

As a former Trotskyist, Irving was indeed himself mugged by the “reality” of conservative philosophy and enfolded leftist policies such as a lack of objection to welfare programs, international “revolution” through nation-building/militarily imposed “democracy” and application of Fabian Socialism/Keynesianism coupled with a socially conservative viewpoint. These concepts lie at the core of neoconservative philosophy to this day.

burt on January 13, 2012 at 3:41 PM

“Expect QE3 to be an embarrassing flop, but it won’t be the only embarrassment for the Fed”

Regardless, we are the ones to get shafted with the effects of higher prices, as if prices weren’t high enough already for gas and just about everything else for the last several years. It has nothing to do with unemployment and everything to do with covering the rear of the government with more income from our pockets.

rickv404 on January 13, 2012 at 8:17 PM

They can never let deflation occur, even when necessary. Always inflation. Why? Because prices continuously go up. Investment is the path, guided by inflation, to consistancy of profiteering. It’s simple really. Nothing like playing the game when you make the rules and control the pieces. We are spectators. Federal Reserve Act of 1913 was created by bankers, for bankers. When did it pass? Dec 23rd…Christmas break. Do your own research on the Fed, it won’t take you long to see how bad the surface is. Wonder how it would have resulted if it wasn’t Christmas time or they had the transportation system we have now.

zerohedge.com for all your cynical nutjob, but extremely informing needs.

John Kettlewell on January 14, 2012 at 9:46 AM