"(Bernanke) left little doubt that he is looking toward doing more to give the economy a lift at...

"(Bernanke) left little doubt that he is looking toward doing more to give the economy a lift at the Fed's next policy meeting in September," is Fed-whisperer Jon Hilsenrath's interpretation of The Chairman's speech (perhaps assisted by some off-the-record comments?). The focus on the economy's weakness not being structural is key, says Hilsenrath, for if it's not structural then the Fed can do something about it. Stocks move to session highs.

Comments (12)
  • wapiti
    , contributor
    Comments (711) | Send Message
    We all know Bernanke and Obama are pumping the stock market so if it's at a 4 year high, why do we need more QE Are we supposed to gain 20% a year by birthright?
    31 Aug 2012, 11:09 AM Reply Like
  • American in Paris
    , contributor
    Comments (5495) | Send Message
    It is not about pumping the stock market. It is about preserving and strengthening the recovery.
    31 Aug 2012, 06:00 PM Reply Like
  • Sammy Lee
    , contributor
    Comments (336) | Send Message
    I hope you're being sarcastic. Have you even heard of the "wealth effect?"--the whole premise behind Quantitative Easing/Housing Bubble/....Debt Bubble?


    Bernanke and Greenspan(of the famed "Greenspan Put") are all about pumping asset prices to fool people into thinking they're rich.
    1 Sep 2012, 07:23 PM Reply Like
  • The Fox
    , contributor
    Comments (786) | Send Message
    Look for the wheels to come off the wagon post election. This is pure government manipulation. Nothing more.
    31 Aug 2012, 04:43 PM Reply Like
  • tom_t
    , contributor
    Comments (318) | Send Message
    Exactly. If/when Obama is re-elected, he won't care if the market tanks in his second term.
    31 Aug 2012, 05:59 PM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
    There hasn't been any QE for 14 months, but Bernanke keeps playing the suckers, like a violin, each month believing the next round is imminent.
    31 Aug 2012, 06:41 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3488) | Send Message
    Exactly, the same old story, the Fed WILL act, next time, then next time comes & its next time again.
    31 Aug 2012, 07:40 PM Reply Like
  • Daryl Montgomery
    , contributor
    Comments (197) | Send Message
    John Hilsenrath was also the source for the front page Wall Street Journal article that the Fed was going to do QE at its July/August meeting. That didn't happen. And guess what? It's not going to happen at the September meeting either. There was also supposed to be QE at the June meeting. That turned up empty also. The same story over and over and over again. How many times will the public accept these lies?


    If Bernanke tried QE now before the election, the Republicans would jump all over him for trying to help get Obama relected (Romney has already said more than once he's going to dump Bernanke). The image of the supposedly independent Fed would be blown sky high.
    1 Sep 2012, 12:47 AM Reply Like
  • azblackbird
    , contributor
    Comments (358) | Send Message
    >>>There was also supposed to be QE at the June meeting. That turned up empty also. The same story over and over and over again. How many times will the public accept these lies? <<<


    Kinda hard to lie to the "public" when the average idol watcher can't even balance a check book, and thinks QE3 is a new cruise ship. Just sayin'...
    1 Sep 2012, 07:30 AM Reply Like
  • foundzeta
    , contributor
    Comments (5) | Send Message
    In the text of his speech, Bernanke says that he expected that, with the amount of monetary stimulus that the Federal Reserve has already provided, that there would already have been a big increase in the employment rate. But he identifies three "headwinds" that are preventing employment from increasing:


    1. Housing activity is much lower than after previous recessions.
    2. The poor financial condition of city, state, and even the federal government means that they are reducing spending and laying off workers.
    3. The financial crisis in Europe and recessionary conditions there is affecting the U.S. economy.


    It is unclear as to how more monetary stimulus would overcome these headwinds.


    Strangely, Bernanke does NOT identify the massive loss of jobs outsourced to China, India, Mexico, and other low labour cost countries as being a "headwind".


    Bernanke lists possible costs associated with his unconventional monetary easing. Again, he does NOT identify the possibility that these easing steps are causing a massive mis-allocation of resources within the economy. For example: vast amounts of money wind-up in the hands of very large, older businesses which have a vested interest in suppressing competition from smaller upstart companies. And the very large businesses are responsible for almost all of the outsourcing of jobs to other countries.
    1 Sep 2012, 04:44 PM Reply Like
  • RaceSnail
    , contributor
    Comments (10) | Send Message
    foundzeta, well said. And azblackbird, you rock. America's 'Dumb and Dumber', i.e., the politically and likely financially inept 'idol watcher' will give Obama another four years to seal our fate. In 2010, 30 million more votes were cast for American Idol over the number cast in that year's senatorial election: Entertainment matters more than who has their hands on our financial future. Really...sad.
    1 Sep 2012, 08:01 PM Reply Like
  • tadhgm
    , contributor
    Comment (1) | Send Message
    For a recovery to be effective, there must be something to recover to begin with. I think that we can safely say that the evidence is far more than anecdotal that the U.S. has disgorged its industrial base, which would be the basis for any true recovery. Americans (myself included) were sold on a lie, that being that the so-called service economy is the next step in the evolution of a nation's economy. We've ended up with a society that makes that depicted in Terry Gilliam's "Brazil" look quaint in comparison. We make nothing, we do nothing (generally). Oh, we consume. Consume on other people's dime, based on the strength of the petro-dollar, whose days are numbered. I see bad things happening as we approach the Christmas holiday in particular and Congress checks out ....
    3 Sep 2012, 09:20 AM Reply Like
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