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Bernake's speech, what he said, what he really said.

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
GOLD Site Supporter
Bernanke: "The near term pace of recovery to be 'fairly modest'."
Translation: Despite the first trillion dollars, the disconnect between the stock market and the real economy persists.

Bernanke: "2011 growth unlikely to be much above long term trend."
Translation: Even with the stimulus - we'll be lucky to get back to what was previously considered a 'normal recovery.'

Bernanke: "Measures of underlying inflation 'trending downward."
Translation: We don't wanna say "de-flation" so we will dance around the subject and instead only allude to it, like Chinese whispers.

Bernanke: "Fed ready to provide additional accommodation if needed."
Translation: Engine room, more steam!

Bernanke: "Inflation trends to be subdued for some time."
Translation: It's gonna a be a long hard road.

Bernanke: "Pace of growth less vigorous than we would like."
Translation: The definition of hyperinflation? One trillion dollars sure doesn't buy what it used to!

Bernanke: "Labor market recovery is painfully slow."
Translation: The velocity of money has been critically damaged with the collapse of Fannie Mae and Freddie Mac.

Bernanke: "Risk of deflation is higher than desirable."
Translation: There - I said it!

Bernanke: "Fed has less experience on impact of asset prices."
Translation: Your guess is as good as ours.

Bernanke: "FOMC will be able to tighten policy when warranted."
Translation: It's sort of like a slow pick off toss to first base; you won't catch the runner, you just want to keep him honest.

The net takeaway from this much anticipated speech is more of the same ... words carefully orated to remind the world that the Fed is on the job. So far so good, in terms of the crowd accepting the Bernanke at his word. And why not, he was credited with saving "the system" with his QE1 program in 2009. Bernanke has built-up a lot of currency with the survival rally; but with the widespread global anticipation of this program of QE2, this Wizard of Oz better be a Big Mama when the curtain is finally flung open. According to Goldman Sachs (this week), we know a big chunk of this stimulus is already priced into the market - the question is whether to "sell the news" as the crowd openly asks "what's next?" once its unveiled.
 

loboloco

Well-known member
In other words, the a**holes in the government screwed up, we can't unscrew it. Go buy vaseline, cause you're about to take it in the anal orifice.
 
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