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Thursday, September 13, 2012

Which Sums Up My Take

Mark, marking the snark:
 

I'm sure high prices for oil are just gonna correct this trend, right? Heh. 

Comments:
MOM,

Ben Bernanke knows exactly what to do in a crisis. That's why we pay him the big bucks.

Gallows humor. Sigh.
 
September 12, 2012
The Case for More QE

I made a fairly compelling case. Perhaps Bernanke reads my blog?

(I just wish he would have noticed the sarcasm label and the sarcasm disclaimer link. Sigh.)
 
MOM,

Don't mean to hog the thread but I know how much you "enjoy" discussing the corporate cash hoard.

September 13, 2012
Piccadilly's in a Dilly of a Pickle.

Why wasn't Piccadilly using its vast corporate cash hoard to hire *more* workers and *increase* their wages? Shame on them!

Forehead. Desk. Whack. Whack. Whack.
 
How long until the Fed starts buying Muni's? #crazytalk
 
I mean, somebody's gotta ask it.
 

Allan,

They're trying to avoid buying munis, that's why they're buying mortgages! Property taxes pay for munis, after all.

What's that you say? QE3 is going to depress "safe" returns and therefore pension funds, thereby putting pressure on munis? Oh, gosh, darn those unintended consequences.

 
Neil - LOL. It's all good! - as Casey Serin liked to post on his blog. FedCasey!

CALPERS announced that it earned 1% on its funds last year. With returns like that....

Allen - they have about run out of longer-term Treasuries. I guess when they run out of mortgage bonds, they start on munis.

The Fed DID buy some of the special gov-bolstered recovery munis already.

I think the Fed idea is to force us all to buy stocks, which will then funnel so much money to the companies that they'll start a wave of expansion or something like that. What will actually happen is that they will trim their workforces (because people are buying less product), may invest in productivity enhancements, but mostly will just pay their executives more for their brilliant ability to raise stock prices.
 

In all seriousness, I think the Fed is just trying to keep the wheels on the wagon a little longer. What else can they do? If they stop buying Treasuries, there'll be a failed auction and it's Katy bar the door.

I'm not surprised to hear that they've been purchasing gov-backed munis. Anything to reign in the publicly-held deficit. They're playing for time, hoping that Washington will get its act together before New York implodes. As the Bernank said today, the Fed is doing what it can and other entities will have to step up to the plate.

 
Neil,

Oh, gosh, darn those unintended consequences.

You named that which must not be named!!! ;)
 
MOM,

I think the Fed idea is to force us all to buy stocks, which will then funnel so much money to the companies that they'll start a wave of expansion or something like that. What will actually happen is that they will trim their workforces (because people are buying less product), may invest in productivity enhancements, but mostly will just pay their executives more for their brilliant ability to raise stock prices.

I had that very thought recently. No joke!

As you may recall, I have no intention of complying with their wishes. I'm the worst of all worlds. I'm not investing (unless you call 0.0% I-Bonds an investment) and I'm not spending (any more than I have to).

Better hope I'm not contagious!
 
Ebola Mark, coming up.
 
MOM,

Faberge!
 
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