After a crushing month (and a day) for the market and with a weakening U.S. economy, the calls...

After a crushing month (and a day) for the market and with a weakening U.S. economy, the calls come for more Fed ease. Trouble is, how much more can the central bank do? Even dovish members have signaled they are not ready for more QE, but - with inflation fear morphing into deflation fear - it may seem a little more palatable.
Comments (23)
  • Barry Crocker
    , contributor
    Comments (450) | Send Message
    third time lucky
    2 Jun 2012, 11:35 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33743) | Send Message
    Set the printers free! We need to save the Russ .. the Economy !!!
    2 Jun 2012, 12:32 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4291) | Send Message
    More easing is completely unnecessary. Instead, Congress should immediately pass the mother of all stimulus bills to fund more teachers, fireman and police (union, of course). In addition, infrastructure spending will create hundreds of thousands of high paying construction jobs to rebuild America's crumbling roads, bridges and schools. All state and municipal bonds should carry the federal government's guarantee. All homeowners should be allowed to refinance at the historically low rates brought to us by the Fed. These mortgages should also carry a federal guarantee. Anyone looking for a job should be given free job training in new technologies. There is nothing government can't do to alleviate the burdens of its citizens. If you follow Paul Krugman you know this is true. We only need to make the rich pay their fair share. Once these programs are in place, the socialist agenda will be complete. There will be no savings to pay the debt and we will all be slaves to the glorious state. That is hope and change I can do without.
    2 Jun 2012, 12:52 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33743) | Send Message
    Stimulating highly paid federal employees would further destroy the U.S. economic competitiveness. It's in the interest of the rest of society to try and pay as low as possible for those jobs. The salaries just establish the distribution of physical production in a society, and for some to get a higher share of that production, everybody else gets less. In the U.S., the jobs you mentioned are already overpaid versus the rest of society.
    2 Jun 2012, 12:55 PM Reply Like
  • into dark shadows
    , contributor
    Comments (460) | Send Message
    Amen brother!
    This is spot on, we need to start here!
    There is hope...
    2 Jun 2012, 01:05 PM Reply Like
  • slard271
    , contributor
    Comments (64) | Send Message


    I'm pretty sure The Geoffster's comment is dripping with sarcasm.
    2 Jun 2012, 01:13 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33743) | Send Message
    eheh, now that I read it to the very end, I think so as well.
    2 Jun 2012, 01:15 PM Reply Like
  • into dark shadows
    , contributor
    Comments (460) | Send Message
    I want to know,
    who is calling for more "fed ease?"
    I sure as hell am NOT!
    Doreen Mogavera over at the N.Y.S.E. thinks it would be a bad Idea!
    Art Cashin seems to think the policy makers have just about throw all the "conventional" crap at the wall!
    Nothing is sticking!


    Read my lips,
    We will get NO MORE QE,!


    Bernanke can see as plain as day the QE nightmare does nothing but push oil / gasoline / foodstuffs into the stratosphere!
    Demand is what he has been shooting for all along and missed the target each and every time!
    Velocity? There is none, if velocity ever pick's up?
    Then fear your inflation, deflation is our nemesis!


    Can we talk like big boys and girls here?
    I am not a racist, but most of our problem can be laid at the feet of one man, who "fundamentally wants to change the U.S.", Barack Obama.


    We have to at some point become real.
    Mr. Obama has been raised by and through no fault of his own, been indoctrinated by Radicals and Communists all his life.
    This is not my opinion,
    just read HIS OWN words,
    look at HIS history, HIS upbringing!
    The poor kid never stood a chance!


    Today we have a man in charge of the finest country the world has ever and will ever know!
    We are a good country because we are good!
    Americans are the most generous / forgiving people there are!
    This country was and I pray still is divinely inspired.


    If the republic is to stand,
    in its former glory, we must stop all the class warfare!
    Stop the perversion of the presidents blessed O.W.S. , kill "Capitalism" and all this anti business propaganda!


    There is no one in their right mind,
    they could have a great product / invention all set to go,
    that is going to put any risk capital to work under this onslaught.
    The regulation machine has flipped into "OVERDRIVE" under Cass Sunstein and Barack!


    Soda ban in N.Y.C.?
    Bloomberg is the classic example of all that's wrong with the PROGRESSIVE MOVEMENT!
    This nightmare must stop in order for the "Phoenix" of our "ONCE FREE MARKET SYSTEM" to be reborn again!
    The birth PANGS will be overbearing!


    The depression we ARE already in, will try mans tolerance to man!
    We must come "BACK" together,
    we must let the hate burn out and remember we do these hard things not for ourselves(although we are the cause of the republics ills) but for the innocents who come next,
    our CHILDREN! Then their children.


    Nancy Pelosi, Barney Frank , Tim Geithner, Ben Bernanke , Warren Buffett , Bill Dudley, Goldman Sach's, Jon Corzine and the list goes on!
    You all need to repent and ask your higher power for forgiveness!
    Then PRAY the American people who you are driving off the cliff have time to reverse course!


    We have allowed a stain on this fine republic to fester long enough!
    We can start a new, a sure sign?
    A big win for Scott Walker!
    It is simple folks,
    either your for the "BIG UNION"(buisness / politics as usual) ways that have brought us to this inflection point,
    or you are really ready for another "SINGULARITY" MOMENT!


    The re birth of the Free Market System and the "Law's of God"!
    We are now being "CRUSHED" under the "Law's of Man", which never end well!
    You know what is to be done,
    Let us not fail, for sitting down!
    2012 may well be the last time we get to right a horrific wrong!


    God bless the republic and to the freedom for which it stands, one nation under God.
    With liberty and "EQUAL JUSTICE" for all!
    2 Jun 2012, 01:00 PM Reply Like
  • DVW
    , contributor
    Comments (156) | Send Message
    To blame one man for the problems we have is a little... eh... insane. Instead blame 50 years to duopoly called Republicans and Democrats in Congress. They've both squandered our wealth and used our tax money to line their pockets and buy votes. You can go all the way back to Kennedy era and trace it out for yourself. You seem to have lost the fact that the Congress sets and approves the budget and tax code. Presidents arent kings in the USA.
    2 Jun 2012, 04:32 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
    "Presidents arent kings in the USA"


    But we can have one who acts that way.
    2 Jun 2012, 07:13 PM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
    The only people to blame for all this is the American Voter. Barak Obama and Mitt Romney are just candidates. If you vote for either of those stooges, you are to blame.
    2 Jun 2012, 08:04 PM Reply Like
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    I was agreeing with you until you reached the one man to blame part.


    Don't you see, the entire world is reeling from TOO MUCH DEBT. It wasn't Obama who engineered the DEBT BUBBLE in 2001. America, Ireland, Spain, England, Australia, France, China, Vietnam....are all reeling from a housing bubble that popped or is popping.


    Obama to blame? Get real. He inherited a popped debt bubble and he's trying to deal with it the best way Wall Street Banks are telling him -- which is exactly what Bush did, and what Romney would do if elected. Who runs America? The Wall Street Banks. How do you get elected without them?


    And those who blame the American Housing Bubble on the government policies to expand home ownership, policies that made American bankers filthy rich, tell me how American government policies triggered housing bubbles all over the world?


    I don't want more QE either. I want higher interest rates, and the destruction of all the bad debts (mostly connected with housing) that QE is trying to hide.


    We don't get a real economy again until we expose and destroy the bad debt we (and the banks) are hiding, attempting to manage, through the Fed. Dismantle the Fed.
    3 Jun 2012, 12:38 AM Reply Like
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    Put Big Business, Big Government, Big Unions (are there still big unions -- unions haven't been able to get their members a raise for over 20 years) in the same bag?


    Cut Big Business down? Yes.
    Cut Big Government down? Yes.
    Cut Big Unions down? As I say, the entire last thirty years -- since Reagan -- has been a crusade to send high-paying jobs overseas and destroy the unions. I think you are playing an old saw with this.


    I agree with some of your sentiments. The idea that this is all a communist plot engineered by Obama is...ludicrous...and it sends your thinking back to the 1950's.


    We all want America to be better. How do we get there? Less debt, less theft, less honoring of rich criminals. Jesus was dirt poor. Does America today honor Jesus more, or Donald Trump, or Warren Buffet? We have a serious problem with values. We admire money, no matter how it is attained. Our religion is money. Until we grow out of the money/glamor worship phase, we are in trouble.


    The depression is being sent to us by the Laws of Nature (which some call God) to bring us back to our knees and back toward real values, instead of the shiny, plastic values of money, money, money which glamor has taken over the world. The Depression will cure us of many of your problems.
    3 Jun 2012, 01:23 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4291) | Send Message
    Those hoping for more QE are either sociopaths or traders looking to unwind their positions and flee to hard assets before the wall comes crumbling down. Google "pushing on a string" and Minsky moment" to see what I mean.
    2 Jun 2012, 01:36 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
    We don't have a monetary problem in this country - we have a fiscal disaster.


    The problem lies at the feet of 435 men and women in Congress plus the President and Vice-President. And no, the problems didn't start with Obama, they started long before he took the oath of office. But he has the job of cleaning it up.... and he's taken a total pass. Voting present isn't going to cut it in the Oval Office.


    We need balanced budgets. We need to slash public SERVANTS pay and benefits. We need to stop social spending and instead focus our government spending on infrastructure, R&D, and security (and that needs to be drastically cut also by closing overseas bases, removing ourselves from Afghanistan, and basically letting the world know we aren't policing it anymore).


    No more politicians who speak of "preserving programs for the middle class". Can't the "middle class" take care of themselves?


    Until we take the pain and slash government spending, we will continue with basically zero growth and fewer and fewer opportunities for our children and grandchildren.
    2 Jun 2012, 04:19 PM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
    Ding..ding. davidbdc is awake and gets it.
    2 Jun 2012, 08:06 PM Reply Like
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    Not entirely true, David. I agree that debt is insideous. But PRIVATE spending and borrowing caused this disaster -- i.e., the GREED of CAPITALISM -- not government spending.


    The disaster was the Housing Bubble. Our debts were manageable until them, until $150,000 houses began selling for $750,000. And bankers stopped doing their job, so they could collect enormous fees -- and assumed that defaulting homeowners were no longer their problem, since Wall Street had solved the issue with Mortgage Bonds that balanced risk down to nothing.


    Government debt was 42% of GDP in 2001. Private debt -- corporations and consumers -- was 240% of GDP. In 2008, government debt was 80% of GDP, private debt was 305% of GDP.


    The same is true of Europe. Ireland's public debt was 22% of GDP in 2007. Spain's public debt was 60% of GDP.


    Government debt in the Eurozone in 2007 was 70% of GDP. Bank liabilities in the Eurozone in 2007 were 250% of GDP. Corporate debt in 2007 was 270% of GDP.




    See the instablog below for charts and full text.



    Government (public) debt is now climbing as governments everywhere seek to bailout the capitalists who ran the boat into the iceberg. Governments everywhere are attempting to save the banking system by giving the banks free money from taxpayers. This is what glorious capitalism has become. I hate to say it. I was a believer in capitalism too. Not so much now. Capitalism is fine when it wins; but when it loses it crawls on its knees to Mommy and Daddy Government and begs for more spending money. It's SHAMEFUL!


    Let's see truly what has happened to us. Our religion -- CAPITALISM -- is a lie. We now have socialism for the rich. And the rich (and their patriotic poor followers) are shouting: let's cut out all government spending on social programs for the poor and the weak, for the young and the old, so we can funnel more free money to the rich, to the banks on Wall Street!


    SOCIALISM FOR THE RICH, that's what capitalism has become. FACE THE TRUTH! Bernanke is force-feeding FREE money from the government to the banks. And then Bernanke says to Congress: you have to get your act together! You're spending too much!


    Congress is spending too much because of the continuing bailout of Wall Street Banks, not because of government social programs.
    3 Jun 2012, 12:57 AM Reply Like
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    Not really. David gets PART of it.
    3 Jun 2012, 01:12 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33743) | Send Message
    I think you're mixing capitalism with a given monetary system. They're two different things.
    3 Jun 2012, 07:15 AM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
    How much of that private debt was really issued by the government?


    And how much of that private debt was really issued under the direction of the government?


    And who decided to bail out those bankers that made stupid loans? The government.


    I shed zero tears for the bankers and I'd have let all the big banks fail.


    But the overriding problem is government. It is destroying our society in the name of "fairness". Liberty traded for the next "benefit". Freedom for the next "entitlement".


    Government's role is to provide security. To regulate markets to ensure fair play. To do the things its unreasonable for an individual to do. Our government does the first to the extreme, fails at the second because it is corrupt, and doesn't understand the third. Spending on R&D and infrastructure is what an individual can't do..... taking care of themselves is absolutely possible and their responsibility. For anyone that can't or doesn't - thats why we have charities, NOT government.


    And your simply wrong about what government spends its money on - the majority of expenditures are social programs.


    Government is the problem and until it is drastically scaled back and totally reformed we won't see any real growth in this country - and I believe we'll see the continued eroding of our freedoms and liberty.
    3 Jun 2012, 07:51 PM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
    Again, davidbdc is awake and gets it.


    The U.S. is an oligarchy now. The politicians, banks, and lobbyists are in a permanent incestuous relationship. Medicaid, Medicare, and Social Security are runaway spending trains used to buy votes.


    If you vote for Obama or Romney, you're just saying "Thank you, may I have another".
    4 Jun 2012, 06:44 PM Reply Like
  • Tas 2010
    , contributor
    Comments (272) | Send Message
    Restore the uptick rule. July 6, 2012 will mark 5 years of extreme market volatility. Here we are, in the mist of record corporate profits, record amounts of cash on corporate balance sheets and we just spent the last month crashing our stock market. Treasury's at 200 year lows. Seriously? This is as bad as it gets? Civil wars, world wars, president assasinations, nucleur bombs over japan, riots at the 68 democratic convention and THIS is as bad as it gets?


    Don't get me wrong, I am all about shorting stocks. I went short treasury's this week. However, the uptick rule provided a much needed speed bump that effectively slowed the shorts down a tad. That's all, just a tad. People have been shorting stocks since 1938 (the year the uptick rule was first put into place) but the world has NEVER seen a market this bad. Quick question, who did NOT want to short the market yesterday after that jobs report?


    Watch this market on any average day. If there is any kind of bad news in the morning the HFT boys short the market all day long until the last hour of trading when they start buying it all back. In the meantime, they have hit countless bids, taken out countless investors only to go home flat.


    Final question, if you are a CEO who might see their stock drop 30% in a day after missing earnings estimates by a penny would you really hire additional staff or take on additional business expansion growth via added risk? No. It's just that simple.


    You want jobs? Create a stable, growing market where investors can INVEST instead of loaning money to a bankrupt nation at 1.45% for 10 years.
    2 Jun 2012, 08:10 PM Reply Like
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    TAS: it will get worse.
    3 Jun 2012, 01:26 AM Reply Like
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