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What Would You Ask Ben?


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#11 pdx5

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Posted 26 April 2011 - 05:59 PM

"Mr. Chairman, would you have any objection to the re-implementation of Glass Stegall as it stood prior to the legislation that was signed into law by President Clinton on Nov. 12, 1999? and if so, what exactly would your objection be?"


Great question! G-S is the main reason why banks can gamble with your money. When gamble fails,
there is always TARP to bail them out.
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#12 entre

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Posted 26 April 2011 - 06:17 PM

How big of a decline in the $spx would it take for you to do QE3?

#13 hpm123

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Posted 26 April 2011 - 06:45 PM

Do your inflation models project that the Ipad3, when released, will be able to be purchased at the same price today as that of the current v2 model?

#14 fib_1618

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Posted 26 April 2011 - 09:33 PM

Here's one: "Dr. Bernanke, the two rounds of 'quantitative easing' that the Fed has undertaken have been enormously stimulative to the stock market, and have brought liquidity back to the banking system. And yet back in the summer of 2008, the Federal Reserve actually drained reserves from the banking system, which left the banking system in a condition of poor liquidity. That draining of reserves arguably led to the events of September 2008, when Lehman Brothers went bankrupt and the stock market collapsed. Can you tell us who at the Federal Reserve was involved in making that decision to drain reserves in 2008?"

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#15 NAV

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Posted 26 April 2011 - 09:57 PM

Here's one:

"Dr. Bernanke, the two rounds of 'quantitative easing' that the Fed has undertaken have been enormously stimulative to the stock market, and have brought liquidity back to the banking system. And yet back in the summer of 2008, the Federal Reserve actually drained reserves from the banking system, which left the banking system in a condition of poor liquidity. That draining of reserves arguably led to the events of September 2008, when Lehman Brothers went bankrupt and the stock market collapsed. Can you tell us who at the Federal Reserve was involved in making that decision to drain reserves in 2008?"



The recession of 2008 was due to the housing bubble and the surrounding exotic leveraged derivatives built around a unsustainable mania and the subsequent collapse of the same. An irresponsible and i must add a clueless Fed helped stoke the housing bubble and when it went out of control, they over did with the tightening. If QE was a panacia for all ills, then printing money is all that's required to create a utopia. I think you will reach your uncle point pretty soon in terms of your tolerance for inflation. Be prepared ! It could be more than you could handle.

My question to Ben would be "How come you still have a job, when you failed to foresee a crises, failed to contain it, and despite those few trillion dollars addition of liabilities to your balance sheet in the aftermath of the crises, you have failed on your twin objectives of containing inflation and generating employment ?"

Edited by NAV, 26 April 2011 - 09:59 PM.

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#16 vitaminm

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Posted 26 April 2011 - 10:04 PM


vitaminm

#17 fib_1618

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Posted 26 April 2011 - 10:05 PM

How about this one? "Dr. Bernanke, it is the mission of the New York Fed to make sure that the overnight auctions of excess reserves among member banks take place at a Fed Funds rate which is close to the target that the FOMC sets. Back in September 2008, just ahead of the Lehman collapse, the target rate was 2.0%, but the effective rate was allowed to rise all the way up to 2.64%, and it got as high as 2.80% just after Lehman declared bankruptcy. The resulting collapse of the stock market was a big factor in terms of tipping the presidential election to then-Senator Obama. At the time of the Lehman collapse, Treasury Secretary Timothy Geithner was the president of the New York Fed, with the responsibility of making sure that the overnight auctions see plentiful enough liquidity to hit the Fed Funds target. Secretary Geithner clearly did not do that in September 2008, and now he works as Treasury Secretary for the president whose election he brought about by failing to manage the liquidity of the banking system. Does that chain of events lead you to wonder what part the Obama campaign team may have had in bringing about one of the worst financial crises in our nation's history?" Ben would probably leave the building on that one. :lol:

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

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#18 NAV

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Posted 26 April 2011 - 10:16 PM

How about this one?

"Dr. Bernanke, it is the mission of the New York Fed to make sure that the overnight auctions of excess reserves among member banks take place at a Fed Funds rate which is close to the target that the FOMC sets. Back in September 2008, just ahead of the Lehman collapse, the target rate was 2.0%, but the effective rate was allowed to rise all the way up to 2.64%, and it got as high as 2.80% just after Lehman declared bankruptcy. The resulting collapse of the stock market was a big factor in terms of tipping the presidential election to then-Senator Obama. At the time of the Lehman collapse, Treasury Secretary Timothy Geithner was the president of the New York Fed, with the responsibility of making sure that the overnight auctions see plentiful enough liquidity to hit the Fed Funds target. Secretary Geithner clearly did not do that in September 2008, and now he works as Treasury Secretary for the president whose election he brought about by failing to manage the liquidity of the banking system. Does that chain of events lead you to wonder what part the Obama campaign team may have had in bringing about one of the worst financial crises in our nation's history?"

Ben would probably leave the building on that one. :lol:


Hmmm, i so innocently believed that this housing bubble and derivatives mess were what lead to the crises. The real truth was causing a global financial destruction to get a certain president elected eh ?. :lol: Nice conspiracy theory. I will give you 1/10 for attempting. :P

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#19 TechMan

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Posted 26 April 2011 - 11:52 PM

How about this one?

"Dr. Bernanke, it is the mission of the New York Fed to make sure that the overnight auctions of excess reserves among member banks take place at a Fed Funds rate which is close to the target that the FOMC sets. Back in September 2008, just ahead of the Lehman collapse, the target rate was 2.0%, but the effective rate was allowed to rise all the way up to 2.64%, and it got as high as 2.80% just after Lehman declared bankruptcy. The resulting collapse of the stock market was a big factor in terms of tipping the presidential election to then-Senator Obama. At the time of the Lehman collapse, Treasury Secretary Timothy Geithner was the president of the New York Fed, with the responsibility of making sure that the overnight auctions see plentiful enough liquidity to hit the Fed Funds target. Secretary Geithner clearly did not do that in September 2008, and now he works as Treasury Secretary for the president whose election he brought about by failing to manage the liquidity of the banking system. Does that chain of events lead you to wonder what part the Obama campaign team may have had in bringing about one of the worst financial crises in our nation's history?"

Ben would probably leave the building on that one. :lol:


And, spewing this type of hypothetical, unsubstantiated conspiracy theory by a right winger here is allowed?

#20 entre

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Posted 27 April 2011 - 12:30 AM

How about this one?

"Dr. Bernanke, it is the mission of the New York Fed to make sure that the overnight auctions of excess reserves among member banks take place at a Fed Funds rate which is close to the target that the FOMC sets. Back in September 2008, just ahead of the Lehman collapse, the target rate was 2.0%, but the effective rate was allowed to rise all the way up to 2.64%, and it got as high as 2.80% just after Lehman declared bankruptcy. The resulting collapse of the stock market was a big factor in terms of tipping the presidential election to then-Senator Obama. At the time of the Lehman collapse, Treasury Secretary Timothy Geithner was the president of the New York Fed, with the responsibility of making sure that the overnight auctions see plentiful enough liquidity to hit the Fed Funds target. Secretary Geithner clearly did not do that in September 2008, and now he works as Treasury Secretary for the president whose election he brought about by failing to manage the liquidity of the banking system. Does that chain of events lead you to wonder what part the Obama campaign team may have had in bringing about one of the worst financial crises in our nation's history?"

Ben would probably leave the building on that one. :lol:


I tend to ignore cliched phrases like the market crashed due to regulation or the lack of it. It's like the absurdity of saying the market is higher or lower because of earnings, or economic data, or whatever else an empty suit says on TV. Money talks, BS walks, so all I care about is the money from the player with by far the most of it.

I wondered why the Fed drained back then in the Fed SOMA account, especially just before the treasury was floating 50 billion a week of paper in late summer of 2008. I assume they thought that the alphabet soup credit facilities that they instituted in the spring of 2008 were working better than they thought they would be:

http://www.huliq.com...w-alphabet-soup

FWIW, Fed open market operations for 2008:

http://www.newyorkfe...omo/omo2008.pdf