TribTab’s Charles Biderman has released a scathing attack on The Fed’s QE∞ policy, stating the Bernanke Put is Dead and QE3 will be worthless as far as the economy is concerned.
The US government has borrowed and printed $5 trillion in deficit financing since the start of fiscal 2009. Over that same time frame, the Federal Reserve has grown its on and off balance sheet assets by $3 trillion, making for a combined growth of $8 trillion. So printing and borrowing $8 trillion has boosted equity values $10 trillion. That is not all that bad if it would continue.
But if the Bernanke Put is dead and stocks go down despite the current perpetual easing, what else has the $8 trillion accomplished? The answer: much less then the amount of money spent.

Do you get it? To boost take home pay by a $1 the government and Fed prints and borrows $7 to $8 and spends it. It is gone. That was not so bad when the market value of all stocks kept rising by trillions of dollars as the Fed eased. But what happens if the stock market no longer goes up on easings? Given what is happening in the rest of the world these days, I do not think this insanity can go on for very much longer before the world wises up to the naked US emperor.

Biderman’s Full report below:

    • Such is the way that the Keynesians count their successes.  🙁
      After the stimulus package of 2009 was launched, people tracked the jobs created and discovered that for a mere $250k each, the US government could create a vast number of $75k a year jobs.  Well, no kidding.  With $250k to blow, I could create not 1, not 2, but 3 jobs that pay $75k each and then give $25k back in change.  Idiots.  :-/


  1. it doesnt matter how bad his track record is… infact the worse the track record the better….. after all if even the dumb and stupid can see whats going on then it wont be long before the rest of the sheeple start to see it too…
    I dont know about everyone else but almost regularly im hearing people start to make utterances of impending doom and disaster …. people who i thought were totally committed to the mainstream media version of finance… people taking money out of the bank to buy land or precious metals … unfortunately not always of the physical variety…
    the tipping point is coming ….

  2. If QE3 is worthless, then QE4 followed by the other QEs to infinity will arrive since the Federal Reserve has no more options left. Then, hyperinflation will happen followed by the US dollar collapse and the world will wake up to the naked US emperor.

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