Irony...Fed Style.

Sunday, March 4th, 2012

Jon Hilsenrath, Wall Street Journal:

The Federal Reserve is pausing after a six-month campaign to boost growth, while policy makers assess a puzzling economic outlook.
Fed officials meeting next week are unlikely to take any new actions to spur the recovery.

Monday, March 5th, 2012

Dallas Fed President Richard Fisher:

" I am personally perplexed by the continued preoccupation, bordering upon fetish, that Wall Street exhibits regarding the potential for further monetary accommodation—the so-called QE3, or third round of quantitative easing."
  “markets should begin to preparing themselves for the good Dr. Fed to wean them from their dependency rather than administer further dosage.” 

Forbes:

"It is rare to see a member of the rate-setting FOMC be so outspoken about the future of monetary policy. Fed Chairman Ben Bernanke has been very careful with his language as of late, neither denying nor confirming that the Fed is considering further easing. When, in Congressional testimony, Bernanke failed to indicate further easing, though, markets plummeted."

4 pm Tuesday, March 6th, 2012

Dow falls 203 points in the first selloff of more than 1% in 2012.

11 am Wednesday, March 7th, 2012

Jon Hilsenrath, Wall Street Journal:

Federal Reserve officials are considering a new type of bond-buying program designed to subdue worries about future inflation if they decide to take new steps to boost the economy in the months ahead.

Hey look!  Chinese demand, U.S. job growth, worldwide unemployment, Greek bailouts, European debt, U.S debt and a partridge in a pear tree all improved at 11 AM.  Weird!

Remember, kids, printing money does NOT make gas prices rise.  It is NOT the Federal Reserve devaluing our dollar by printing 2.4 Trillion of them the last 3 years that causes gas to go up.  It is Chinese demand.  Or speculators.  Or Iran. Or the One-armed man.   It's pure coincidence that those things all start at 11 am, 4 milliseconds after the latest promise to print more money from Ben Bernake is leaked by the Wall Street Journal.

Food price increases are caused by Chinese demand.  Not the Fed.  Chinese demand just happens to start at 11 am. these days.  They are in this whole other time zone.

 
I just don't know where us speculators get the notion that anytime stocks go down the Fed will print more money Mr. Fisher.  It is indeed perplexing.  As speculators, we also understand that you have NOTHING (wink wink) to do with with rising commodity costs (besides as long as you guarantee us a risk-free one-way market we can afford it).  By the way, if you see your boss Ben Bernake in the hallway could you please tell him to respond a little quicker next time there's a down day in the stock market?  Perhaps you could make it FED policy to have an automatic QE rumor anytime there's even a DOWNTICK in equities, instead of us speculators having to suffer a whole DOWN DAY and toss and turn all night thinking you might not be there for us the next morning.  As you know, what's good for stocks is good for everyone.  But really good for us speculators.  Just a thought....

http://www.forbes.com/sites/afontevecchia/2012/03/05/dallas-fed-says-wall-street-hooked-on-monetary-morphine-dont-expect-qe3/

http://online.wsj.com/article/SB10001424052970204276304577261462731503918.html?mod=googlenews_wsj


http://www.marketwatch.com/story/fed-said-to-weigh-new-form-of-bond-buying-2012-03-07?siteid=rss&rss=1

http://www.bloomberg.com/news/2012-03-07/u-s-stock-index-futures-rise-before-payroll-report-apple-mako-advance.html