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As economy stalls, Fed may have to step in (Definition of Insanity Alert)
msnbc ^ | 6/3/2012 | Edward Krudy, Reuters

Posted on 06/04/2012 3:04:50 AM PDT by tobyhill

Things are shaping up for another hot summer on Wall Street, and there is a long, long way to go yet.

Federal Reserve Chairman Ben Bernanke will be back on Capitol Hill on Thursday to testify before a congressional committee about the state of the U.S. economy. He's not going to get an easy ride.

The blue-chip Dow average of stocks is now negative for the year. Employment appears to be slowing to a snail's pace and Europe remains mired in crisis.

"This puts the Fed firmly in play and they will likely feel compelled to respond," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, after data on Friday showed U.S. job growth in May was the weakest in a year.

"The missing ingredient preventing the Fed from action had been the equity market, but now we are seeing it softening," he said. "Equities are falling and that was the last hurdle for Fed policy action because all the other criteria have been met."

(Excerpt) Read more at marketday.msnbc.msn.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: benbernanke; timgeithner; wallstreet
Insanity: doing the same thing over and over again and expecting different results.
1 posted on 06/04/2012 3:05:03 AM PDT by tobyhill
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To: tobyhill

The voters will do something in November.


2 posted on 06/04/2012 3:10:05 AM PDT by SoFloFreeper
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To: tobyhill
In 1914-1918, Europe basically crashed and burned -- and almost all of the gold in the world came to America as a safe haven.

In 2012, Europe is crashing and burning. A lot of gold/capital could come to America if we don't act stupidly. But I suspect that the Fed will try to bail out Europe and drive us deeper into debt at a time when we could be turning the corner with responsible fiscal policy.

Keynesian economics does not work. How many times do we need to re-learn this lesson?

3 posted on 06/04/2012 3:15:53 AM PDT by ClearCase_guy (Obama needs more time. After all -- Rome wasn't burned in a day.)
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To: SoFloFreeper
"The voters will do something in November."

The voters will try. The Obama Regime, their campaign and particularly the DOJ are moving heaven and earth to stop the various state efforts to purge voter rolls of illegals and the dead and to have meaningful voter ID laws. There will be massive fraud this Fall. Committed leftists/Marxists are not about to let a little thing like the popular vote interfere with their remaking of America.

4 posted on 06/04/2012 3:27:53 AM PDT by Truth29
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To: Truth29
QE3 isn't going to help anything but the stock market, and that a maybe it will raise the market.

Obamacare and expiration of Bush Tax cuts are the reason this economy is stalled.

A survey of Business said 71% neither Small business wanted to borrow money or ever thought we came out of a recession.

Oh they not hiring either and they created over 70% of all Jobs in the last 5 years.

5 posted on 06/04/2012 3:59:29 AM PDT by scooby321 (h tones)
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To: ClearCase_guy
Gold was originally valuable as an electrical conductor used for things like the ark of the covenant which was basically a primitive capacitor and thought to serve as a sort of a radio receiver to the spirit world, as you read in Exodus.

It has no rational use in our present world other than the one possibility which some have noted, i.e. the stuff is soft, half again as dense as lead and totally inert, and would be the ideal metal for waterfowl shot. You could kill geese all day long with 2.75" shells and #7 shot. You'd have to alloy it with something hard enough to withstand the acceleration.

6 posted on 06/04/2012 4:05:52 AM PDT by varmintman
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To: tobyhill
England used tally sticks for money for over 700 years. That system worked pretty well and they might want to consider going back to it.
7 posted on 06/04/2012 4:08:28 AM PDT by varmintman
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To: tobyhill

boner will cave and give obamao all that he asks for and probably tack some gop/e pork onto the bill to boot. QEIII here we come.

Economic swirly... FLUSH!

LLS


8 posted on 06/04/2012 4:13:16 AM PDT by LibLieSlayer (Don't Tread On Me)
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To: tobyhill

Yep, printing more money has always solved economic problems. /s


9 posted on 06/04/2012 4:14:02 AM PDT by Perdogg
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To: ClearCase_guy
In 3.5 years the Fed has given in grants or 0% loans, 8.1 TRILLION DOLLARS. This was quietly done and not listed on the 15.8 TRILLION DOLLAR deficit figure... will any gop/e drones even raise the issue? I doubt it. boner and the leadership will cave... it is what they believe in.

LLS

10 posted on 06/04/2012 4:16:11 AM PDT by LibLieSlayer (Don't Tread On Me)
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To: ClearCase_guy
Keynesian economics does not work. How many times do we liberals need to re- learn this lesson?

Edited for accuracy.

11 posted on 06/04/2012 4:18:31 AM PDT by liberalh8ter (If Barack has a memory like a steel trap, why can't he remember what the Constitution says?)
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To: varmintman

Modern computing and all that goes along with it would be impossible without gold... ask anyone that works in the industry. They mine old computer equipment... for the gold and other precious metals.

LLS


12 posted on 06/04/2012 4:18:52 AM PDT by LibLieSlayer (Don't Tread On Me)
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To: LibLieSlayer

What I’ve read is that upwards of 80% of the world’s current production of gold is used for jewelry, and there are less expensive things to make rings and bracelets out of. Any use of the stuff for connectors could not amount to more than a tiny fraction of gold production. and the stuff would have little real value based on that.


13 posted on 06/04/2012 4:22:51 AM PDT by varmintman
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To: tobyhill
Obama Money Mad

Stim-U-Less 4.0...."So that y'all can go out and buy that $3,000 "THINGAMAGIG "

14 posted on 06/04/2012 4:26:21 AM PDT by Conservative Vermont Vet (l)
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To: ClearCase_guy
Keynesian economics does not work

Trouble is, it works for some. The holders of gold and owners of banks make a killing on the misfortune of those who lose their wealth - the poor.

We see the wealthy buying up foreclosed houses to use as rentals for the newly homeless.

Fractional reserve banking, fiat money and easy credit create a casino few can resist. Problem is, in a casino the house always wins.

15 posted on 06/04/2012 4:27:30 AM PDT by Aevery_Freeman (Typed using <FONT STYLE=SARCASM> unless otherwise noted)
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To: varmintman

If gold had no value as you say, wouldn’t it be the “less expensive thing”...

If gold is worthless folks sure love paying a lot for it, and try and argue for a stainless steel ring verse a gold one with the average woman...


16 posted on 06/04/2012 4:27:34 AM PDT by ejonesie22 (8/30/10, the day Truth won.)
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To: varmintman

If gold had no value as you say, wouldn’t it be the “less expensive thing”...

If gold is worthless folks sure love paying a lot for it, and try and argue for a stainless steel ring verse a gold one with the average woman...


17 posted on 06/04/2012 4:27:48 AM PDT by ejonesie22 (8/30/10, the day Truth won.)
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To: ClearCase_guy

Fed Reserve and Treasury fear massive deflation. Banks already shed their bad mortgages to the taxpayers, and deflation will make all the good mortgage notes they still hold underwater as home prices fall from deflation. Deflation also means people will take out less loans then prior. Banks will be stuck with loans with no replacement larger loans from consumers. Fractional banking needs the future loans to be larger then current loans in order to thrive. Deflation kills bank profits. Fed Reserve and Treasury is so infiltrated by fed workers who want a lucrative career in Wall Street and people sent by Wall Street to guard their interests that many Americans never realize that Wall Street had committed a silent coup and have taken over the US gov for the bankers. Deflation will be avoided by inflation. First the bankers via MSM they control spin that they were too big to fail. Now they will via MSM spin that Americans can not endure austerity thus the politicians have no choice but to accept devaluation of the US dollar and retire our huge deficits via inflation (or destruction of the middle class). The only thing the bankers cannot control is Black Swan events that could unhinge the derivatives market. Obama did all working Americans a favor, he signed into law via exec order, that the US taxpayers will back up any losses in the derivative market by the Wall Street bankers. JP Morgan just acknowledged 2 billion in losses playing the derivative market betting on Greek bonds, now it is up to 5 billion in losses and rumors that it can go as high as 17 billion. CEO Dimon will be testifying in front of Congress soon, but requested a delay as JPM accountants are trying to determine exactly how large the losses are because the derivative market is not regulated or in the open like normal exchanges. Thanks to Obama and bank agents in Treasury the taxpayers will be on the hook to cover these losses.


18 posted on 06/04/2012 4:36:07 AM PDT by Fee
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To: ejonesie22

It isn’t worthless. But the idea of individuals wanting to own the stuff other than rings and bracelets is nearly insane and use of gold as a basis for money, particularly in combination with fractional reserve banking, led to gigantic grief all during the 1700s and 1800s and wanting to go back to that is nearly criminally insane.


19 posted on 06/04/2012 4:38:22 AM PDT by varmintman
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To: tobyhill

As the economy falters the Fed will step in it. Again. There, it is corrected.


20 posted on 06/04/2012 4:54:45 AM PDT by billhilly
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To: tobyhill

Hint to the Fed: If you try the same failed Keynesian games as the last few years, you will get the same pathetic results.


21 posted on 06/04/2012 5:23:45 AM PDT by Pollster1 (A boy becomes a man when a man is needed - John Steinbeck)
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To: varmintman

No argument there.

LLS


22 posted on 06/04/2012 7:15:36 AM PDT by LibLieSlayer (Don't Tread On Me)
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