The Federal Reserve Saves The Stock Market?

The Economic Collapse
Aug 10, 2011

Bernanke

The Federal Reserve has saved the stock market!  Well, at least for a day.  That was one heck of a “dead cat bounce” that we saw on Tuesday.  Normally, after the kind of dramatic decline that we saw on Monday there is some sort of a rebound, but on Tuesday the market did not begin to soar until the Federal Reserve pledged to leave interest rates near zero until mid-2013.  Once the Fed made their announcement, the market went haywire.  At one point the Dow was down more than 200 points, but by the end of the day it was up 430 points.  It was a desperate move for the Federal Reserve to pledge not to raise interest rates for the next two years, and it has stabilized financial markets for the moment.  But what is the Fed going to do to save the stock market when it starts crashing next week or next month?  The underlying financial fundamentals continue to get worse and worse.  Europe is a mess, Japan is a mess and the United States is a mess.  The Federal Reserve can try to keep all of the balls in the air for as long as possible, but at some point the juggling act is going to end and the house of cards is going to come crashing down.

This move may calm nerves for a day or two, but there is still a tremendous amount of fear out there at the moment.  Many investors are pouring money into “safe havens” right now.  Huge amounts of cash are being poured into U.S. Treasuries and the price of gold is absolutely soaring.  The price of gold is up about $220 in just the last 30 days alone.

So how high could the price of gold go in the coming months?  Well, analysts at JP Morgan are forecasting that the price of gold could hit $2,500 by the end of this year.

Yes, that is how wild things are becoming.  The Federal Reserve is painting itself into a corner.  Never before has the Fed pledged to leave interest rates near zero for the next two years.  The following is an excerpt from the statement that the Fed released earlier today….

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent.  The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.  The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.  The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

Needless to say, the rest of the world is not pleased by this nonsense from the Fed.  Yes, the Fed has stabilized financial markets for the moment, but a lot of ill will is being created with the rest of the globe.  The following is what Bruce Krasting had to say about how the rest of the world is going to react to this latest Fed move….

Brazil, Argentina, Korea, Indonesia are going to scream bloody murder over perpetual ZIRP. Russia is likely to get downright ugly with their rhetoric. I wouldn’t be surprised if they took this opportunity to vote with their feet and just abandon the dollar as a reserve holding. China will also make noise. They will make more calls for a new international currency to replace the dollar. The Central bankers in Japan and Switzerland are puking in the trashcan over this. Bernanke is exporting US deflation to them. Shame on the Fed for pursuing Beggar my neighbor policies. They deserve all the global criticism they are about to get.

The Federal Reserve is using up all of the ammunition it has available and the game has barely even begun.

Things are going to get a lot worse.  The U.S national debt continues to pile up at lightning speed.  The debt ceiling deal essentially does nothing to fix our debt problems.  Thousands of businesses and millions of jobs continue to leave the United States.  As a nation, we are constantly becoming poorer and we are constantly getting into more debt.

  • A d v e r t i s e m e n t

Meanwhile, Europe is on the verge of a financial meltdown and Japan has a “zombie economy” at this point.

Many fear that we could be on the verge of another major global recession.  The following is how a recent Der Spiegel article described the current global financial situation….

Many economists have been pointing out that last week’s panic resembled the fear that swept financial markets after the collapse of US investment bank Lehman Brothers in September 2008.

Then as now, banks stopped lending each money. Then as now, banks’ cash deposits at the central bank doubled within days. The European Central Bank reacted by assuring banks of unlimited liquidity in the coming months. It was an emergency measure that led to short-term relief but sparked anxious questions among bankers and stock market players. How long can the central bank keep up its market-soothing liquidity operations before it finally loses its credibility, the most important asset of a central bank? Is the financial crisis about to escalate?

In the old days, the U.S. and Europe could just borrow gigantic stacks of cash in order to solve any problems.  But now things are dramatically changing.

China’s official news agency recently stated that the U.S. needs to understand that things are different now….

“The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone”

Not that the U.S. government and the Federal Reserve are going to suddenly give up their old habits.  The U.S. government is addicted to debt and the Fed is addicted to printing money.  When push comes to shove, they are going to resort to their favorite tricks.

But at some point the rest of the world is not going to play along anymore.  When that moment arrives, it is going to be very interesting to see what happens.

Meanwhile, the U.S. economy continues to slowly unravel, and people in this country are getting very angry.  Millions of Americans families are barely scraping by right now.  Most Americans just want someone to “fix” things, but unfortunately there are no easy “fixes” to our financial problems.

As our economic problems grow even worse, frustration inside the United States is going to continue to escalate.  A brand new Rasmussen survey found that only 17 percent of Americans now believe that the U.S. government has the consent of the governed.

That was a brand new all-time low.

Faith in the major institutions of our society is already dangerously low and the economy is not even that bad yet.

As horrible as things are now, the truth is that this is rip-roaring prosperity compared to what is coming.

In the months and years ahead, America is going to be greatly tested.  As the recent London riots have shown, things can spiral out of control very quickly.

When the economy completely collapses will America be able to handle it?

 






 
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43 Responses to “The Federal Reserve Saves The Stock Market?”

  1. So wall street gets more money bail outs and pushes back up the stock market and when people reinvest thinkin the in old paradim, it will crash again in another year, after the elections or right before, so it can be used for re-election conversawtion. and fear tactics.
    We have to stop paying taxes we must stand up and stop waiting on the vacationing congress.
    Obummer is asking for more money but it is congress that signs the checks. They are all bought off and do not care about us.
    All I wanna say is that they don’t really care about us. they want us to be evil and try to gain control over one another. Thi is their sick mentality of control and divide.
    People can teach without bossing and controlling others lives.
    Integrity, values, morals are for humans and there are genetic make up that an awful lot of people seem to not have. It has been seen in their brain scans by neurologists. This is more than likelky something that has been hidden and know about for thousands of years. I am still attemptiong to figure out why the libraries at Memphis where the world studied higher thought forms and the librairies in Ghiana burned and everything destroyed and kept secret from the world. After wards the world was thrown into the dark ages and rebelled heavely. There is more than meets the eye ppl and that is what I am saying there is way more than meets the eye. There is morre history and artistic human endevours, it aint funny. We are all being lied to and deceived by Guess who. Your friend and mine old man Satan himself yes there he is again. Funny how he always is there but everyone acts as if he were invisable.
    Point that mutha out and call his name in his face is what I say. PHK that mutha and the horse he rode in on. Now ahh o ooo my bad, is Satans mom gods wife or what. Im so confused with christianity.
    Any way it goes god and satan are at war until the end of time or earth or whatever this is. Ok so far.
    That war includes the massive suffering of man who god created and was immediatly stolen from him by satin. Then satan stole eve and had one of eves children murder her other son. God acted like he did not see anything until he finnally could not take it anymore thereby condemning all of cains children to difficult times. Never correcting the mistake just prolonging it for more suffering.of us.
    Ok here we are still suffering with murder, destruction and satan but as I said here we are right here right now doing this and nothing else.
    This is what you get folks this is it right here right now. and there is nothing else folks.
    O OOOO unless you give up on this there is nothing else because we wont acceot anything else. We think we already have the answer which continues to be the same. Cant change by staying in the same place.
    Change requires movement. Action moves the world.

  2. Remember Walter Burien and the Comprehensive Annual Financial Reports?

    Since the Plunge Protection Team went from being a red hammer behind a piece of glass to being a daily tool, the federal reserve has bought hundreds of billions of dollars worth of stock in selected elitists corporations EVERY DAY. In fact, over the past week, it is safe to say that the number has been in the TRILLIONS. Every day. Digitally-created phony money used to buy real stock from real investors.

    So, how many trillions of dollars of the stock market is owned by the federal reserve using fake money that we are expected to reimburse them for?

    The elitists’ worst nightmare is that one day, this will all come crashing down (not unlike the Soviet Union, which practically collapsed overnight) and we are going to find out the extent to which we have been robbed.

    Two things, globalist scum: FIRST, when we take you down and your crimes are exposed, you are never going to get a cent of this fake debt. But that’s the least of your worries because; SECOND: When this happens, we’re going to find you, your families and your political, bureaucratic, media, corporate, police and military collaborators and we’re going to kill you.

  3. Strange how silent the air when one ponders the enormity of derivitives. I,ve read there are so many out there that they really don’t know how much, yet nothing about them in the news. They are sure to have some effect?

  4. The Federal Reserve is NOT the stock market and cannot save or break it. A market that goes up and down is absolutely needed for anyone to make money. Only those that do not invest complain about down days in the market. Those children should both stay out and shut up. As for big Ben, he is about to do QE3 which will further erode the value of money and that big mac will be another 30% higher.

  5. Why should anyone even try to save Wall Street. Maybe it would be better if they just slide into the ocean. The manipulation of the dollar only ensure that no honest long term investments will be profitable. It is only a game to rope in suckers to be used and abused by speculators. To hell with Wall Street and the criminal empire it represents.

    A 1% tax on all transactions would certainly slow down the hyper-speculation game, but who the hell needs an honest Wall Street — it is set up for the practice of financial criminality as a dishonest gambling racket. Wall Street is just a Ponzi scheme to take the focus of government off the real economy. No good is done trying to save Wall Street.

  6. The question is, why don’t people rebel against the London Banksters? The answer is simply BECAUSE the London Banking Cartel, of which the Federal Reserve is a clone, ARE parasites. To know the Federal Reserve, study the lifecycle of a parasite. Often, parasites remain dormant or tolerable as long as you feed them, but the minute one attempts to cleanse the body of the parasite, the same parasite rebels in every which way, sending toxins into throughout the system. To do a proper parasite cleanse can be a painful process, because even though the parasite depends upon the host for ITS survival, a toxic people also come to depend upon the parasite, for what becomes always remains their vicarious survival. Essentially, the parasite lives off a toxic inner or outer terrain. A healthy body body politic, does not attract parasites. Parasitical vectors (pathways of entry into the body or body politic) or what are referred to as “The 7 Deadly Sins,” also known as the “7 Capital Vices,” are wrath, greed, sloth, pride, lust, envy, and gluttony. To this add infidelity sexual corruption, of which sodomy is a capital vice. The rub is this… Even though a parasite or addictive substance cleansing can be painful – with sharpened symptoms during the interim between infection, addiction health, the cleanse is the only true path to a fully emotional, physical spiritual health. So, even though there will be suffering in the short term, one must adopt a long view, if we are to achieve a higher goal.

  7. Whew! And they had all us worried!

  8. http ://www.youtube.com/embed/-McpNtHet3w

    Felonious Monk tellin’ it like it is

    • Pretty forceful video. One thing though, it’s Felonius Munk.

      Before I watched the vid I was wondering who was this poser who ripped-off the monicker of the original G – Theolonius Monk (one of my musical heroes) .

      After watching the video I see him as deserving to reference the original Monk in his name.

      Thanks for the cool link Derp!

  9. well, one of these days were gonna wake up, to find out these bastards pulled the plug..
    myself, as soon as i get a little extra cash, i keep preparing.. the days of saving money
    are history.. if gold go’s to 2500 dollars in the next few months, that means inflation is
    gonna get ugly.

    • All right Americans all together, LET’S SING ALONG—— FOLLOW THE BOUNCING BALL..
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      Very good, NOW TRY TO SING WITHOUT MOVING YOUR LIPS…

      Excuse me I have to go to the……
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  10. Bernake must be thrown out!!!!

  11. Gosh, thanks for hiding the truth, Mr. B. placeofrefuge2012.com

  12. It is not a surpise… They think they can just say. Today orange juice and the next day lego or whatever and then those things go up in value… Someone is behind the ponzi scheme that teh stock markets are.

    • Yesterday was proof that the Market is so controlled that it’s a joke to watch!
      You could actually feel the maniplulation by the hour…
      However, I’m sure the big boys made a ton of money with such a wild market swing.

  13. The Federal Reserve Saves The Bilderberg Market?

    • the fed can’t even save themselves…and I hope they crumble.

  14. How much longer before the global bankers roll out the new partially gold backed world currency? Seems like all the unrest and economic manipulation is where this is going.

  15. This is the part where the drones will heave a sigh of relief..

  16. man i cant stand the crap eating grin all these banksters have. like theyre scum they know it and theres nothing we can do about it.

    i would just love to see that wiped off his face

    • as they should, they’re raping us and instead of beating the crap out of them we’re politely asking them to use more lube.

      • Yes we are. We need to move…now!

    • death will wipe it out………

  17. LOL Saying the “Federal Reserve Saved The Stock Market” is akin to saying “The Mafia Saved Las Vegas”.

    In other words a bunch of gangsters saved a bunch of gamblers.

  18. The money masters are the root of all evil! END reserve banking and put the power of money creation back into the hands of the people!

  19. The economy is not the stock market. It is currently down another 400.

    • the day ain’t over yet. Look what happened yesterday….
      I do hope the stock prices keep falling for the entire financial sector and the banks continue to get hit hard.
      The shareholders do not like this one bit…boo hoo…

  20. Psychopaths have no respect for anyone’s property the worst job for a Fed-Chair.

  21. ENDTHE SICKNESS, END THE FED , BRING OUR MONEY BACK TO AMERICA, get out of all these WARS, START DOING FOR AMERICA, get all these BANK CRAZED SELF INTERIST RODENTS out of office. The SICKNESS is getting worse. WE NEED A DOCTOR IN THE HOUSE ! DR. RON PAUL .

  22. “The US govt. is addicted to debt and the FED is addicted to printing money”.

    I would go one step further and say that, in fact, our entire economy IS FOUNDED on those two things!

    Two great reads you need immediately:

    -”Aftershock-Revised Edition”, by Wiedemer, (for what is to come and how to protect oneself financially);
    -”The Return of the Great Depression”, by Vox Day (for what is to come and what the govt. SHOULD do).

    They both say pretty much the same thing….but one is micro advice and one is macro. And then there is always the brilliant Bob Chapman. They are all saying the same thing: DEPRESSION is coming.

  23. That’s nice, now why don’t they start issuing our currency at 0% interest?

  24. I wounder when gold and silver will stop being measured by the dollar?

    • Guess its nearing time to usher in north american union currency…

  25. N’ who’s gonna save effin’ ” Federal Reserve ” ?!?

  26. The federal reserve is always late in the game. The market is overvalued and will sort itself out if we can get unelected offiCIAls out of tinkering with everything in an effort to prop up the market. America needs growth which will come from manufacturing when the right incentives are put in place. Here’s the real story about the NWO who appears to have brought us close to the point of economic collapse.

    A Coup d’etat began during the 2008 presidential election with the introduction of Sarah Palin as McCain’s running mate. She was used to flush out members of the New World Order.

    Obama is not the president, he’s the acting president. He disappeared for 2 weeks after his election win only to reappear looking exhausted sitting next to John McCain, with a bad poker face, for a press photo shoot. Obama is now a Pentagon puppet.

    Here’s what Obama, Osama, Biden, Bin Laden, the FBI’s Most Wanted Terrorists, and Sarah Palin had to do with the last presidential election and the military’s overthrow of our government. Search ElectNoMoreSpys.blogspot and learn the real deal.

  27. Buckle up folks! One helluva ride!

  28. FIAT currency is not the solution u dumb keynesians.
    more printing dollars more debts and bubble paper money will ruin the market also world market more but sadly i watched Korean economic British economic channels today stupid mainstream market researchers or anchors all begging for more FIAT dollars QE3… they are all FRB’s zombies i think so many people around are drunk and mindless.

  29. The FED didn’t “save” anything except their own thieving skins for a while longer.

    They created the “panic” by selling their stock holdings then “saved” then day by printing more money to buy them back at a lower price.

    The overclass bankster LOOTING of the American economy and the entire world financial system continues apace.

    • Maybe one of the daughters of these elites needed a new swimming pool for one of her outrageous mansions…of course we flip the bill for that! No collapse until the spoiled spawns of the devil have all there toys in place! LOL

    • exactly the criminal price fixing Plunge Protection Mafia simply consolidated and sopped up some more bargains with more of their hoards of un-lendable phony counterfeited monopoly-money to create the illusion that their gigantic corrupt economic ‘confidence game” is still alive and well.

      the dollars that bid those prices back up were 10% lighter

  30. well believe it. at the moment the US and americans are frying an even bigger fish compared to 911. yes 911 needs to be investigated but right now we are in a death spiral to the bottom. get prepared for hell on earth and for the time get past 911. so start believing brother. start believing.

  31. Can’t find it there – no 8/6, 8/8, 8/9 posts that I can see…..

  32. yet another piece of the Tory Rothschild-Likudnik terrorism puzzle surrounding their Daniel Chapter 8 Show mass murder conjuring fiasco falls into place. This rivals the green airplane at the Pentagon.

    tinyurl.com/greenairplane

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