Replies to post #308288 on $Stock*Shop*Charts*News*Option$

[langlui]

where were you stuffie?

[HoosierHoagie]

Stuffit...I can't begin to properly express what you have meant to me...I pray your sabbatical is a shortlived leave of absense. You will be greatly missed..:-(

[Stock Lobster]

I'm very very saddened at this, not entirely surprised, but hoped it wouldn't be so sudden and apparently so final

All my prayers go to you and your family

Please, is there anything any of us can do to help???

[d272]

Man, I'll miss you stuffit. Thanks for everything.

[4Kismet]

Stuffit, We just met but you know I am closeby. I'll send you my email addy if you want it, just let me know....

[langlui]

My Dear Stuffie, you will be missed by all of us! Thank you for being a good friend here. We will all miss you dearly.

[hang ten]

stuffit, thanks for all the work on this board! take care.

[joelegs]

Oh Wow Stuffit;

From our first "meeting" whereupon I was properly grilled for bona fides in Lobby's chat through present, you have been an amazing source of information, knowledge and wisdom. Although I am quiet,
I read you and now Lobby again everyday.

You must have acquired good Karma enough for many and you will do well in the future.

I for one will miss you.

Joseph

"Remember to take profits"

[double/down]

stuffit,thanks for being the "#1 PERSON ON IHUB"


MAY YOUR HEART BE AS BIG OFFLINE AS ONLINE
have fun,take care,luv ya

bye,
ObZ

[HoosierHoagie]

Going to miss you Stuffie...:-(

The Fed feints
Monty Pelerin

Great hoopla over the Federal Reserve's surprise decision to raise the discount rate 0.25 % fills the media and the markets. Pundits discuss earnestly the spice has been added to the tea leaves. Barry Ritholtz lists three possible motivations behind the Fed's move:
1. Response to political pressures;

2. Proof the Economy is improving;

3. Inevitable ending of extraordinary accommodation.

The relevance of number 1 can be discounted rather quickly. Where could the "political pressure" come from? Other than lip service around election time, Congress never demands fiscal or monetary responsibility. It could refer to "hawks" on the Fed board, but they would not overrule Bernanke on anything substantive, which this move wasn't. Thus points 2 and 3 appear to be possible motivations.

The rate move was miniscule. Its size precluded it from having any meaningful economic effect. Thus, it must be interpreted as a "signal." But was it a signal meant to deceive? That is, was the move a "feint?"

The Fed traditionally sends a signal in advance of taking more serious economic measures. The rationale for a warning is to prepare markets for what is coming. It is believed that markets then adapt somewhat in advance of the future, stronger actions. This move was not a signal. As stated by John Williams of Shadowstats.com:

... the Fed has virtually no room to tighten credit in a system where the real (inflation-adjusted) broad money supply is in severe annual contraction, and where general bank lending into the flow of commerce is not adequate to maintain economic growth.

The Fed move was a feint designed to reinforce beliefs in points 2 and 3 above. But there is no economic recovery, and the Fed cannot stop its extraordinary accommodation.

The end of March will provide the proof. That is when Mr. Bernanke promised to cease Quantitative Easing. QE will not cease. There is not enough market demand to purchase the boatload of Treasuries needed to fund government deficits. New bond issuance needs to average $90 billion dollars per week this year. $40 billion is for new debt, while $50 billion is rollover of maturing debt.

If QE stops, the government defaults on at least some of its obligations. It does not have the money to pay its commitments without these bond proceeds. If Mr. Bernanke stops QE so does the Federal government. If QE stops, so will Social Security checks and other such payments.

Games will be played to attempt to cover up the continuance of QE. These games were played this year. The ultimate test is the level of Federal Reserve assets. What Mr. Bernanke claims is irrelevant. If Fed assets are increasing, so is QE, no matter how surreptitious it may be.

Mr. Ritholtz ends his post with this appropriate quote from Ralph Waldo Emerson:

I cannot hear what you are saying because what you are doing is speaking so loudly.

The Federal Reserve was established as an independent agency with goals to protect the banking system and the purchasing power of the currency. It has failed miserably in both respects. Over time, it also lost its independence and became highly politicized.

If Mr. Bernanke were truly to obey the charter of his agency, he would not enable the government to continue its irrational and ruinous spending. The fact that the government is dysfunctional is even more reason for the Fed to act. To paraphrase Ronald Reagan, "Mr. Bernanke, tear down this government. Do what your office demands."

Mr. Bernanke will not do his duty. But that merely postpones the inevitable. Markets will perform the task, and we will all be the worse for it when they do.




Monty Pelerin blogs at www.economicnoise.com


http://www.americanthinker.com/blog/2010/02/the_fed_feints.html

[Lady-baron]

Hi Stuffit,

I hope you are able to read the messages from everyone who deeply care about you. I for one I am saddened to hear that you are taking a step back. You must have your reasons for leaving... in any case I would like to say thank you for your valuable contributions to this board as well as in chat and most of all for your friendship.

I'll miss your early morning posts!!!

I hope that we will see you back!


Cheers

May the road rise up to meet you,
may the wind be always at your back,
May the sun shine warm upon your face,
and the rain fall soft upon your fields,
and until we meet again,
May God hold you in the palm of his hand.

[Tuff-Stuff]

~THANKS to ONE and ALL~ for the kind words as they are certainly appreciated!


TIME and most of my energy is needed here to focus on a larger challenge. It's possible I could be around every now and then during this absence, and remember you never know whose lurking <gg>

[MWM]

Thanks for all the great DD and GL!

[max2205]

Peace...

[*~1Best~*]

Hi Stuffit ~ good for you ~ enjoy the time off, hugs xox