Tornado Alley (PROG)

[SilverSurfer]

as bad as these Presidents and Congress have sold this nation down the road.... the real villan is>>>>>>>>>>>>> Da Fed

and did you know that
"Dr. Bernanke was born in December 1953 (my age) in Augusta, Georgia, and grew up in Dillon, South Carolina." (see link below)

A tiny town near me. Our High School played them in football... Now look at the unfettered power this one man has. Is that a good thing? The World Hindges on the next utterance of the Chairman... He has no constraints....answers to no one, until his term is up... and there is little doubt WE the American Tax Bagholder will be on the hook for bailing out the crooks in Europe just like we are doing here..... A confidence game never ends well but it can continue much longer than logic would predict.....


"It seems that Bernanke, if he wants the market to rally, is going to have to come out with a surprise next Wednesday. If he doesn't, then expect a big selloff.

What he is likely to do is another story, but here are some options:

Expand the balance sheet further and simply buy more bonds (at the longer end of the curve).

Eliminate the interest paid to commercial banks on excess reserves (to try to spur lending).

Announce an explicit ceiling on the 10-year note yield (say 1.5%), which the Fed has done in the distant past. Based on Bernanke's prior rhetoric, this would seem to be a preferred strategy (though the Fed relinquishes control of the balance sheet).

Buy foreign securities (bail out Europe and weaken the U.S. dollar — talk about killing two birds with one policy stone).
Announce an explicit higher inflation target or perhaps a lower unemployment rate target (i.e. reinforce the DUAL mandate).

As Mr. Bernanke stated for the record in November 2002, the Fed does have broad powers to lend to the private sector indirectly via banks, through the discount window. It could offer fixed-term loans to banks at low or zero interest, with a wide range of private assets (including, among others, corporate bonds, commercial paper, bank loans, and mortgages) deemed eligible as collateral. For example, the Fed might make 90-day or 180-day zero-interest loans to banks, taking corporate commercial paper of the same maturity as collateral. Such a program could significantly reduce liquidity and term premiums on the assets used as collateral. Reductions in these premiums would lower the cost of capital both to banks and the nonbank private sector."


http://www.zerohedge.com/news/forget-operation-twist-rosenberg-says-bernanke-about-shock-everyone-what-about-come


http://www.ecomn.org/speakers/recent-speakers/bernanke.html