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starbucks4ever (98.13)

That was the best joke from Bernanke ever

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December 08, 2010 – Comments (7)

Confident that you can in theory raise rates in 15 minutes? So was Obama about his ability to repeal Bush's tax cuts for billionaires. How well did that play out?  

http://finance.yahoo.com/news/Bernanke-Says-Fed-May-Take-bloomberg-277091664.html;_ylt=Av_VwFoLHwGrAKPMJmqRS9G7YWsA;_ylu=X3oDMTFhM3E2Ym10BHBvcwM0BHNlYwNzcGVjaWFsRmVhdHVyZXMEc2xrA2ZlZG1heXRha2Vtbw--?x=0

 "Bernanke said he is “100 percent” confident that, when necessary, the central bank can control inflation and reverse its accommodative monetary policy.

Targeting Inflation

“We’ve been very, very clear that we will not allow inflation to rise above 2 percent,” he said.

“We could raise interest rates in 15 minutes if we have to,” he said. “So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time.”

“That time is not now,” he said.

The Fed’s policy of purchasing Treasury securities shouldn’t be considered simply printing money, Bernanke said." 

7 Comments – Post Your Own

#1) On December 08, 2010 at 12:40 PM, GNUBEE (24.13) wrote:

Zloj,

I have lost a lot of respect for you with this post. Everyone knows not only can he raise rates in 15 minutes and control inflation, he can also leap tall buildings in a single bound and is faster than a speeding bullet.

Oh how you dissapoint me.

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#2) On December 08, 2010 at 1:22 PM, outoffocus (23.28) wrote:

*ba doomp TISH!*  "I flew in this morning and boy are my arms tired. So how about that airplane food.  Is anybody out there?"

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#3) On December 08, 2010 at 1:49 PM, Rehydrogenated (32.15) wrote:

2%? Come on guys, you can do better than a measly 2%. I mean, you printed/lent enough cash to hit 200%. I see this as a failure of the federal reserve.

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#4) On December 08, 2010 at 2:39 PM, rofgile (99.42) wrote:

I think he's got fairly large leverage to slow the economy and kill inflation if need be.  Rates are near 0%, the lowest ever.  1%-5% moves up on the lending rates would have HUGE effects (from the current position of basically free money to large banks and cheap home loans).

---

 It's the side-effects that would hurt.  You raise rates, and a lot more home owners would be in trouble, and business lending might go down more.  Not what you'd want to do until there is a robust recovery with unemployment below 8%.

 So, yes, he really could move against inflation with a large amount of power - but if he did so soon, it would be too large a brake on the recovery.  I think the 0% rates are the largest reason for the gold price run, and when rates get above 1%, pop goes the weasel.

 -Rof 

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#5) On December 08, 2010 at 2:49 PM, mtf00l (47.45) wrote:

"My name is Earl Scheib and I can raise that rate fer $99.95" =D

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#6) On December 08, 2010 at 3:10 PM, starbucks4ever (98.13) wrote:

-I just caught the bear!

-Bring him over here!

-I can't, he wouldn't go.

-Then set him free and come back here!

-He won't let me go!

Bernanke is out of options. He can't raise rates even one quarter-point, and he knows it. 

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#7) On December 08, 2010 at 3:59 PM, GNUBEE (24.13) wrote:

Zloj- in agreement with you.

So in theory, yes......in reality he cant...yet  

(but what better way to dispose of an excess of $'s, than to give them away as "higher returns")

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