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The countdown begins to the Fed trotting out members to walk back yesterday's FOMC minutes after...

The countdown begins to the Fed trotting out members to walk back yesterday's FOMC minutes after the big miss on the Philly Fed Index. New Orders fell to -7.8 from -4.3. Prices paid 8.9 vs. 14.7. Six-month indicators actually improved though, rising to 32.1 from 29.2, the 3rd consecutive increase. (full report)
Comments (17)
  • wigit5
    , contributor
    Comments (4121) | Send Message
     
    About yesterday's comments... uh yeah maybe we were a bit early...
    21 Feb 2013, 10:09 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    just maybe...
    21 Feb 2013, 10:21 AM Reply Like
  • bbro
    , contributor
    Comments (9854) | Send Message
     
    Philly Fed tends to send a lot of false positives for a recession signal....
    21 Feb 2013, 10:29 AM Reply Like
  • wigit5
    , contributor
    Comments (4121) | Send Message
     
    keep on twisting bbro!!
    21 Feb 2013, 10:33 AM Reply Like
  • bbro
    , contributor
    Comments (9854) | Send Message
     
    Please give Philly Fed more importance than it is due...OK by me....
    21 Feb 2013, 10:42 AM Reply Like
  • minecanary
    , contributor
    Comments (488) | Send Message
     
    They key points were that QE isn't providing many benefits other then to banksters and the almighty market. Oh yeah, and that the unwind is going to be a bit tricky
    21 Feb 2013, 11:34 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8862) | Send Message
     
    You're right. It's the unwind that makes it all break down.

     

    Here's a story from Moneyweek about BB's hero in Japan from the 1930's. He did QE, ZIRP, yen devaluation and saved Japan from the Great Depression. That is, he saved Japan for a while, until he tried to unwind his massive spending program. The hyperinflation followed, attempts to control spending, and his own assassination.

     

    http://bit.ly/Z6UFp1
    ____
    The finance minister at the time (the 1930's in Japan) was Korekiyo Takahashi, a man who it seems is something of a hero to Ben Bernanke – in 2003, Bernanke referred to him as having “brilliantly rescued Japan from the Great Depression through reflationary policies in the early 1930s”.

     

    You’ll be wondering how he did this – given how tricky rescuing economies from deflationary pressures appears to be these days. Simple really... He took Japan off the gold standard (allowing the yen to float freely), outlawed the conversion of paper currency to gold, slashed interest rates to the bone, enacted massive government spending and made it legally possible for the Bank of Japan to buy and hang on to government bonds (hello QE). It worked.

     

    Equities boomed, the yen collapsed, exports soared and growth hit 6%. Then Takahashi started trying to get out. And it stopped working – his attempt to reverse some of the QE in 1935 resulted in a failed auction, something that told him the deficit spending had to come to an end. Unfortunately for him, most of the spending was going on warfare and the military didn’t much fancy any spending cuts.

     

    The result? An irritable group of young officers, keen not to see the flow of public cash to their cause diminished in any way, hacked the 82-year-old finance minister to death....
    21 Feb 2013, 02:05 PM Reply Like
  • BruceInKY
    , contributor
    Comments (435) | Send Message
     
    It has occurred to me that Forward! is a colloquial translation of Banzai!
    21 Feb 2013, 03:14 PM Reply Like
  • tripleblack
    , contributor
    Comments (13542) | Send Message
     
    So...

     

    Where do I buy a ticket to watch the Bernanke version?

     

    OK, I guess its unlikely he'll get sliced and diced, but a good bullwhip can do wonders...
    21 Feb 2013, 05:48 PM Reply Like
  • june1234
    , contributor
    Comments (2705) | Send Message
     
    QE hasn't done anything but inflate assets to back where they were 5 yrs ago; unless you traded it for most people it will end up having been the largest waste of money in history
    21 Feb 2013, 11:39 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    Methinks you are spot on, june1234.
    21 Feb 2013, 11:54 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    Bingo! As of 1:03 pm the Fed has trotted out their spokesperson to walk back yesterday's comments. Well played!!
    21 Feb 2013, 01:13 PM Reply Like
  • enigmaman
    , contributor
    Comments (2686) | Send Message
     
    Philly Fed report wasn't all bad in fact it was more mixed or flat then negative, to that end businesses surveyed said " Responses suggest that firms expect declines to be short‐lived, since first quarter production is expected to rise and orders and shipments are expected to increase over the next six months."

     

    Now before anybody goes off on my comment, remember I'm just talking about the PF report, not BB, not QE not Japan or FOMC comments
    21 Feb 2013, 02:30 PM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Well, rather than slow down the QE purchases, the FED is most likely going to increase QE, me thinks. I give them 6 to 9 months to get there.
    21 Feb 2013, 04:46 PM Reply Like
  • wigit5
    , contributor
    Comments (4121) | Send Message
     
    Yup I kind of agree but the diminished returns will make it pretty muted.
    21 Feb 2013, 04:47 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4013) | Send Message
     
    It's been so long
    And I've been putting out fire
    With gasoline.
    - David Bowie
    21 Feb 2013, 05:35 PM Reply Like
  • Interesting Times
    , contributor
    Comments (11588) | Send Message
     
    The FED just had the TBTF guys make a ton of money off of those words..

     

    Simple, they can't get out of this mess..The end game has no ending!!
    22 Feb 2013, 05:45 AM Reply Like
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