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To: TH who wrote (262915)	7/21/2010 7:29:53 PM
From: neolib	Read Replies (2) \| Respond to of 306849

The FED has a well stated goal of signaling ahead of time, i.e. not hatching sudden surprises. I think this is just another step in signaling that the FED is getting more conservative in their recovery outlook. Thats consistent with recent FED noises. The FED seems to operate as quite a low pass filter: very smoothed out and with significant lag. The market in general is the opposite, predictive and spiky. The FED is an integrator, the market is a differentiator.

To: TH who wrote (262915)	7/21/2010 9:27:23 PM
From: ggersh	Respond to of 306849

TH, In this case your assumption is correct. He's clueless. ggersh

To: TH who wrote (262915)	7/21/2010 10:57:39 PM
From: John McCarthy	Respond to of 306849

>>>> Ben did not have some objective with this downbeat testimony. >>>> I assume he wants domains (authorities with enactment powers) outside his domain to begin to advocate QE2. The Unemployment IMPASS begets forward dead homes and write-offs. Compound these with the SEC allowed not yet taken write-offs and collectively they probably drawf all the excess reserves that the banks have squirreled away at the FED. Additionally Consumer Metrics Institute is out with a 'thought' explaining the drop in consumer debt. Gettin close to 1.5 years. Their notion is that in these BEN -0- interest days - in effect - 1 way to EARN interest (18% -> 25%) is to simply pay-down your cards. So on the 1 hand as Ben has kept rates low (0%) to move the economy - consumers are earning interest by killing off their cc debt. Ben - politicians - whatever have got to go the QE2 route - because the alternative is _whatever_ their worst view of the alternative is. Ben lined up his ducks very nicely today.

To: TH who wrote (262915)	7/21/2010 11:39:38 PM
From: yard_man	Respond to of 306849

I think Heinz already nailed it ... got to convince the naysayers on the Fed and elsewhere -- there really IS an emergency. Pummel the stock market (i.e. quit cheerleading and let it drop for a while) as a prelude to QE2!!

To: TH who wrote (262915)	7/22/2010 12:21:02 AM
From: The Reaper	Read Replies (1) \| Respond to of 306849

TH- my 2 cents is that he wants to goose the bond market so Treasury can continue to issue paper at rock bottom rates. Making it sound like a recovery is never coming will do just that.

To: TH who wrote (262915)	7/22/2010 7:58:37 AM
From: TH	Read Replies (1) \| Respond to of 306849

Thanks to all that shared ideas about the motive behind Ben's poor performance before the Senate. I've got to go with the razor and assume that Ben just screwed up. Perhaps some bad coffee. And I predict he does much better today. I expect a little jig before the House and smiles and jokes. Lots of jokes.... Reaper. We will know the bond market is over when Bill Gross stops sounding like one of the Bee Gees and shifts up two octaves to Alvin and the Chipmunks level. That sonic shift, a number of unusual twitches, and a bead of sweat on the Gross mustache will signal the end of the great bond rally. I've heard there is a new 3X treasury short ETF. I've got to do some research on that one, but I don't even know the name of it yet. GT TH