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Larry Meyer's Solution To Surging Oil Prices: "The Fed Should Cut Rates"

Tyler Durden's picture


For those who need a good laugh this Saturday evening, we turn our attention to the man who singlehandely made frontrunning the Fed a (somehow legal) artform: Macroeconomic Advisors' Larry Meyer. This so-called pundit, who recently was caught in a debate with David Einhorn (if one may call the complete and utter mauling of someone for his absolute lack of comprehension of anything finance related, a debate), exposing him for the hollow chatterbox he is, and who only receives consultancy fees due to his close relationship with the Fed, which allows him to leak privileged Fed information to the likes of Bill Gross, Larry Fink and others who deem his services relevant, was on CNBC telling the heptabox panel that an oil shock is disinflationary, and that the way to deal with surging oil prices is to CUT interest rates. That's right: cut rates, which at last check were at 0-0.25% (6 minutes into the clip below). While we feel embarrassed for anyone who shares the same perspective as Meyer, who confirms that monetary groupthink is the deadliest form of contagion possible, what stuns us is how anyone could possibly pay to get this person's input on anything aside from what the Fed will do at any point in the future (an arrangement which should be made illegal as of yesterday). Which in itself begs the question: are the Feds finally bugging Macroeconomic Advisors' phone conversations with their clients? After all Gerson Lehrman et al are getting crushed as no hedge fund wants to get their inside information from the "expert networks" any more. Why should Larry Meyer's firm fare any different? Please somebody at the SEC or the DA office: explain that one to us...


h/t Jim Bianco


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Sat, 03/05/2011 - 21:40 | 1022720 Oh regional Indian
Oh regional Indian's picture

Hey, there are a billion ways to slice and dice 0.25. 

0.24% here we come. But really, who here thinks this ship will ever be taken off the rocks and be put back together again? Hu? That's hu.

It's done. Over. Humpty has taken a dumpty.



Sat, 03/05/2011 - 23:54 | 1022894 asdasmos
asdasmos's picture

Greenspan on Gold's Rise - CNBC 4/3/11

Sun, 03/06/2011 - 07:31 | 1023251 Sad Sufi
Sad Sufi's picture

Thanks for link re the Professor:

"Gold is universally acceptable as a means of payment.

Watching gold is a good indicator of the stability of the system"

Sun, 03/06/2011 - 11:32 | 1023425 Bendromeda Strain
Bendromeda Strain's picture

Yup - he also mentioned the counterparty risk factor. IOW, if you are watching gold - best to be doing it in closeup mode.

Sat, 03/05/2011 - 21:46 | 1022728 Josh Randall
Josh Randall's picture

Next he spoke about how to save money on date night, by using yourself and only a vacuum cleaner...

Sat, 03/05/2011 - 22:21 | 1022775 dark pools of soros
dark pools of soros's picture


Sat, 03/05/2011 - 23:25 | 1022854 A Nanny Moose
A Nanny Moose's picture

That sucks

Sat, 03/05/2011 - 22:38 | 1022803 sushi
sushi's picture

Does he also not understand the difference between suck and blow?

Sun, 03/06/2011 - 01:32 | 1023080 tom a taxpayer
tom a taxpayer's picture

Oh...OH...OOOOOOH Oreck!

Sat, 03/05/2011 - 21:48 | 1022729 Yen Cross
Yen Cross's picture

Raise short term rates. The USD will explode, and shoot the fear of GOD inTo the currency markets. OIL (#clj11) will pound into the 87 area.

Sun, 03/06/2011 - 10:03 | 1023347 101 years and c...
101 years and counting's picture

No Chance.  People here need to realize the Fed works for the banks.  So, to accommodate the higher fuel prices (which the banks are 100% responsible for), they'll print MORE money, buy more bonds and further send the middle class to poverty.  Ah, the AMERICAN WAY!  My suggestion, put food and gas on your Chase credit card and dont pay it.  I know your slave score (credit score) may get damaged, but who really cares about that?  If you have a mortgage, stop paying it.  Take all your cash out of the banks and keep it at home, buy gold/silver, etc.......STARVE THE MOTHER FUCKING BEAST!!!

Sat, 03/05/2011 - 21:52 | 1022734 JR
JR's picture

Well done, Tyler!!!

Sat, 03/05/2011 - 22:31 | 1022794 Yen Cross
Yen Cross's picture

It hurts me to say this. JR is a fantastic, well read Scholar! He is a man of his conviction, and of reputation. When JR speaks,left or right. It would be wise to listen. His wisdom has helped me. The spring of 2010 aud/jpy. Best wishes JR!

Sat, 03/05/2011 - 23:28 | 1022861 smlbizman
smlbizman's picture

i watched.....stevie wonder can see the farce....shouldn't santelli quit and go out in an epic world changing does he stand there and take it....same with ron paul, with their assumed principles wouldn't you think .."the im not going to take it anymore"  moment should be like seconds away...what are they waiting for?  

Sat, 03/05/2011 - 21:57 | 1022739 pauldia
pauldia's picture


"The figures bandied about are eye-popping. When the Fed first embarked on its policy of asset purchases, known as quantitative easing, Goldman Sachs economists estimated Fed credit to the banking system might have to expand to as much as $4 trillion to $5 trillion in order to grapple with the scope of the financial crisis.

According to Meyer, the Goldman estimates were in line with those of Fed staffers. However, the central bank's policy committee saw this as complicating an eventual exit strategy, and stopped well short"....... from Reuters September 5 2010

An exit strategy will be complicated by design, the only unknown is the catalyst.



Sat, 03/05/2011 - 21:58 | 1022740 cosmictrainwreck
cosmictrainwreck's picture

what a CRETIN. My God.......I am continually embarassed by what passes for intellect in USA. back where I came from it's called "showin' yer ass"

Sat, 03/05/2011 - 21:57 | 1022741 Careless Whisper
Careless Whisper's picture

Other guests in the square, reaction to mister meyer saying the (privately owned) fed should unambiguously ease:

Greenlaw: (drops jaw)

Brown: (deer in headlights look)

Liesman: (nods head in agreement)

Santelli: (shakes head in disbelief)

Sat, 03/05/2011 - 22:40 | 1022806 Bay of Pigs
Bay of Pigs's picture

Plumbing new lows on CNBS. Send in the Clowns...

Sun, 03/06/2011 - 03:01 | 1023146 zhandax
zhandax's picture

Send in the clowns?  They're there.

Sat, 03/05/2011 - 22:00 | 1022745 Cognitive Dissonance
Cognitive Dissonance's picture

Ladies and Gentlemen, there's the sign post up ahead. You've just crossed over into the Twilight Zone.

Sat, 03/05/2011 - 22:06 | 1022750 Long-John-Silver
Long-John-Silver's picture

We've been in the Twilight Zone for years. We are about to be whisked away to the magical cornfield.

Sat, 03/05/2011 - 22:35 | 1022800 Cognitive Dissonance
Cognitive Dissonance's picture

I tend to disagree simply because you ain't seen nothing yet. In six months, a year, two years we will look back at today and the two years since the market bottom and fondly remember how the Fed's damage looked so minor and repairable.

The USS nuclear submarine America is being take down well past crush depth. Who wishes to blow the escape hatch now and only experience potential death from the bends or go down with the ship to certain innilation?

Sat, 03/05/2011 - 23:29 | 1022865 Dr. Porkchop
Dr. Porkchop's picture

Probably a good time to find my spirit animal then?

Sat, 03/05/2011 - 22:03 | 1022751 GNH
GNH's picture

Santelli's "look away" toward the end of the video tells it all -- exasperation at the idiocy of the Fed believers.


Sat, 03/05/2011 - 22:17 | 1022768 Yen Cross
Yen Cross's picture

I'll take Santelli over that Cue ball any day. I love the bond calls on Chicago.  Rick you kick ass. That q-ball guy, is a 9-ball.

Sat, 03/05/2011 - 22:04 | 1022752 old_turk
old_turk's picture

Twilight Zone?

Different dimension?

Alien visitor, maybe?

Or just another example of the failure of the American education system?

And this guy gets a huge bonus for saying crap like this ... so perhaps it isn't a failure after all.  LOL.

Sat, 03/05/2011 - 22:08 | 1022757 Careless Whisper
Careless Whisper's picture

Is it me or does mister meyer have a really annoying voice? I know his words are what's important but his voice makes me wanna smack him and tell him to man up.

Sun, 03/06/2011 - 14:45 | 1023824 Temporalist
Temporalist's picture

It's not you.

Sat, 03/05/2011 - 22:24 | 1022783 Yen Cross
Yen Cross's picture

What is your Dimension? VIX or 10's up some basis points? Yield curves? Oh now I'm in your flight path. UFO's

Sat, 03/05/2011 - 22:10 | 1022763 Selah
Selah's picture



Sat, 03/05/2011 - 22:20 | 1022777 Long-John-Silver
Long-John-Silver's picture

OMG! I remember playing around with a TV set with Horizontal and Vertical controls.....

It also made that tiny little white dot in the middle of the screen when you turned it off.

Sat, 03/05/2011 - 22:21 | 1022781 Misean
Misean's picture

You sure it wasn't an Etch-A-Sketch?

Sat, 03/05/2011 - 22:27 | 1022790 Long-John-Silver
Long-John-Silver's picture

I watched captain kangaroo on it daily. I don't think the Etch-A-Sketch could do that.

Sat, 03/05/2011 - 22:37 | 1022805 Misean
Misean's picture

Depends on your state of mind. I seem to recall watching H.R. Puff-n-stuff on mine.

Sat, 03/05/2011 - 22:11 | 1022764 Misean
Misean's picture

Rod Serling just phoned. He said "No f**king way."

Really not like Rod to swear like that.

Sat, 03/05/2011 - 22:20 | 1022774 Eally Ucked
Eally Ucked's picture

According to them we reached 70% labour cost. That means 2 things, chinese product is to expensive or Walmart gritters are paid too much. I guess we don't have choice of vendors so we have to reduce wages at all chinese resale enterprises. All military outfits are not affected for now.

Sat, 03/05/2011 - 22:24 | 1022786 Misean
Misean's picture


Sat, 03/05/2011 - 22:13 | 1022767 digitaldorobo
digitaldorobo's picture

What an idiot--more inflation anyone?

At least some of us will soon be paying for gas with silver:

Sat, 03/05/2011 - 22:17 | 1022771 Careless Whisper
Careless Whisper's picture

Charlie Sheen. Live. On The Internet. 10 pm. East Coast Time. Tonight.


Sat, 03/05/2011 - 22:25 | 1022785 Long-John-Silver
Long-John-Silver's picture

The Video Lobotomy channel? No thanks, He gives me Brain Freeze.

Sun, 03/06/2011 - 00:11 | 1022772 baby_BLYTHE
baby_BLYTHE's picture


Sat, 03/05/2011 - 22:18 | 1022773 Misean
Misean's picture

I know! The banksters are gonna take the freshly printed money from a rate drop, use it to bid up the price of oil...and thereby obtaining the lions share of the product flow...and turn around and sell it to US refineries at a loss for the benefit of the American people!


Perhaps if we built a large wooden badger...

Sat, 03/05/2011 - 22:23 | 1022784 SumDumGuy
SumDumGuy's picture

you don't think that the Fed *paying* Goldman or Pimco to borrow money is out of the realm of possibility?  /sarc

Sat, 03/05/2011 - 23:29 | 1022863 Sean7k
Sean7k's picture

I'm not sure you could be this stupid on purpose. The scary thing is they obviously think their listeners are...

Sun, 03/06/2011 - 14:00 | 1023720 Flakmeister
Flakmeister's picture

  You and I don't necessarily agree on everything, but your comment is spot on... Along with CD, we are stepping into the Twilight Zone and aside from a sponsered commercial break, this episode doesn't have an end.

Sat, 03/05/2011 - 23:34 | 1022871 DaveyJones
DaveyJones's picture

fed head, fog without the bong

Sat, 03/05/2011 - 23:51 | 1022880 baby_BLYTHE
baby_BLYTHE's picture

Trish is hot and SMART. Sometimes I am glad I am not straight.

Steve Que-ball LIESman really is a needle-nosed dufus

Hey dufus, THE FED WILL END ITSELF and with it all your croonies HOPES AND DREAMS!

Sat, 03/05/2011 - 23:46 | 1022884 Everyman
Everyman's picture

This is just another indicator that the so called "economic experts" is a totally isolated collection of the most ignorant groups of sick stupid fucks that can be amasses in one industry.  GIMME A BREAK!  Is this the epoch of what goes for "economic deucation and professionalism????

That meyers guy ought to be drug behind a pickup until it is just a bloody mess.  What a stupid fuck.  Lower interest rates??? From 0-.25% to what you fucking genius?

Nothing that makes my blood boil (and other citizens) is stupid fucks like this getting up and saying something so obviously stupid and then not ridiculed for it.  This fucker is toast in economic circles.  Which means he is a prime candidate for the FED RES or SEC or US Treasury.  TRUE?!

Sat, 03/05/2011 - 23:47 | 1022888 Seasmoke
Seasmoke's picture

Ease What ???

Sun, 03/06/2011 - 00:09 | 1022940 Kurtieboy
Kurtieboy's picture

WTF...this is getting more and more surreal by the minute.

Sun, 03/06/2011 - 01:00 | 1023038 vxpatel
vxpatel's picture

The sky is falling, the sky is falling!!!

yeah...let it pour...this thing never worked for anyone anyway, except the top 1%

Joyful participation in the sorrows of the world.

Sun, 03/06/2011 - 01:29 | 1023075 baby_BLYTHE
baby_BLYTHE's picture

So you are not buying into the "Double-Dip"?

You will be happy to see the ECB raise interest rates at the next meeting?

Everything is fine and nothing will upset the global recovery?

Sun, 03/06/2011 - 11:50 | 1023124 RoRoTrader
RoRoTrader's picture

Kind of surprising that celebrities from this media circus are not being shot yet.........really. What a story that would make.



Sun, 03/06/2011 - 03:00 | 1023145 buzzsaw99
buzzsaw99's picture

More clownbux + less oil = lower prices? wtf?

Sun, 03/06/2011 - 08:12 | 1023263 CPL
CPL's picture

More cowbell + Earth, Wind and Fire = cheaper oil

That's a better system, won't solve anything but answer the problematic lack of cow bell in the disco boogie genre.

Sun, 03/06/2011 - 03:25 | 1023158 zhandax
zhandax's picture

Hey all you debt-soaked recent college is prima facie evidence that the only qualification you need for that cushy well- paid job is to get hired.  No brains, skill, or even elementary logic necessary!  Now lie your asses off and get hired!

Sun, 03/06/2011 - 05:06 | 1023198 baby_BLYTHE
baby_BLYTHE's picture

Kids don't want to work. They want $$$.

Tech boom- ads revolution does have the occasion kickbacks- free movies, concert tickets and such. Young tweens can find cash cupons to splunge on any basic weekend outing.

I do it all the time. (Literally).

They economy sucks, I know. Thanks to ZH! We have work to do in a few years

Sun, 03/06/2011 - 17:17 | 1024229 zhandax
zhandax's picture

I guess it is a matter of perception.  To me, what the ass-hat in the video above is doing hardly resembles work.

Sun, 03/06/2011 - 07:42 | 1023252 Sad Sufi
Sad Sufi's picture

The only thing more humorous than the hopium-speak on the TV clip is Tyler's as-always wonderfully long and derisive sentences, where scorn is lavishly heaped.

Sun, 03/06/2011 - 08:27 | 1023265 CPL
CPL's picture

Where the fuck does CNBC find these talking heads?  I'll go off my assumption that they have casting calls at the Sally Anne and "build" the armies of analysts that push for all this nonsense of interest rate spreads as the solution from everything from oil prices to probably AIDS.

"Shit!! caught AIDS again!!"

"Fuck dude!  That only means one thing!!"

"Oh yeah!?"

"INTEREST RATE DECREASE" <in chorus...with a magical interest rate decrease>

"Awesome bro, I'm cured uv teh AIDS!"

*high five*

It would be funny except for the fact the economic theories that we have are now religions instead of theorectical models that can be disproven.  Religion requires nothing more than faith and dogmatic knee jerking to the environmental que's that may or may not have been there either through optics (which can lie to us) or just plain old human retardation/panic (more than likely).

What I'm hearing from this nut sack is one thing.  He has a deep unsettling fear that the interest rates skyrocket and that long margin position his POS company is in will be completely fucked profit wise on a single point move.  Hard to play thin trades with HFT server racks if your profits are eaten by costs on the operational end of things.


Sun, 03/06/2011 - 08:41 | 1023284 huggy_in_london
huggy_in_london's picture

well there you have it ... if Meyer thinks theres no QE3 then there isn't going to be one.  He was calling for QE2 to be trillions remember.  So the last of the QE idiots jumps ship.  I wish the dow, the S&P500 and any other of these fake idicies the best of luck in their quest to remain at these elevated levels.  This is a replay of the summer of '08.  Perhaps an irish default is the lehman event.  Whatever, either way we should see stock prices significiantly lower by the end of summer.

Sun, 03/06/2011 - 09:12 | 1023303 irishlink
irishlink's picture

He Failed the blink test! He is not only ill informed he is lying.

Sun, 03/06/2011 - 10:44 | 1023378 monopoly
monopoly's picture

My god, I give up. This is so surreal. Cut rates. F__K it.

See ya all later when gold opens in Asia.

Sun, 03/06/2011 - 10:49 | 1023384 firerx
firerx's picture

Anybody here remember the Billy Preston song " Nothing from nothing leave nothing"? Seems to apply here.

Sun, 03/06/2011 - 17:30 | 1024259 zhandax
zhandax's picture

Don't just toss it out there; post a link:

Sun, 03/06/2011 - 12:50 | 1023565 razorthin
razorthin's picture

My anger is starting to get murderous.  Seriously.

Sun, 03/06/2011 - 12:57 | 1023582 Hondo
Hondo's picture

This guy is the biggest clown with the most outdated and worthless thinking one can possibly imagine.  This claptrap Keynisian BS is getting old and worn doesn't work and never has but because of the soothing feel one gets of thinking he's getting free money this kind of stupid thinking is time we buried it for good.

Sun, 03/06/2011 - 13:05 | 1023591 razorthin
razorthin's picture

Holy fucking shit.  These bozos (with the Bernank as chief clown), with the possible exception of Santelli, still believe inflation cannot happen without the higher employment and wages!!!??? What the fuck!  Where the fuck do they think the free bankster money is going.  Who needs a consumer.  In fact, let's fuck the consumer.  And they are.

Santelli's head-shake was priceless.

Sun, 03/06/2011 - 13:35 | 1023666 sellstop
sellstop's picture

An oil shortage is disinflationary if you think of inflation as being caused by an overheated economy. A SHORTAGE of oil energy slows an economy and so IS a disinflationary force. However, the POLICY used to counter the slowdown in the economy is INFLATIONARY.

 If we accept that we need to use less oil, then we slow down our usage and our economy slows, until enough adjustment is made. And then we learn to live with less oil.

In the past money printing was a way to stimulate consumption. ie, stimulate consumption of oil. If the oil ain't there, there can't be no stimulation.....

Sun, 03/06/2011 - 14:06 | 1023734 JR
JR's picture

Meyer is just telling us what the Fed wants to hear;  he probably never made any decisions on the FOMC—the big decisions are made by the owners of the Fed. The Fed wants to print money, it wants the inflation and so continues to lie about it. Why?  So it can fulfill its dual goal to : 1) Take care of the investment banks, and 2) Try to get the economy back on track.

The latter goal leads to recovery, to its political support.  When the Fed drives speculative trade up and down, big bubbles and big busts, there needs to be ups after the downs or the Fed loses its political support.  It’s no good having a Congress give you everything you want if your congressmen get voted out of office and the people start looking for new congressmen. 

The Fed already looks down the barrel at Ron Paul who's there because of the town hall meetings and the Republican surge that not only gave the Republicans the House of Representatives, but so much of a push that it was politically wise to give Paul a leadership role in the Finance Committee.

That’s just a start.  Can you imagine the heat if things get worse and worse and neither party responds? There are going to be parades to get rid of the Fed - and for a complete overhaul of the Congress.  The Fed’s banking cartel doesn’t want that; it would like to see things calm down.  And what better cover for ZIRP than to suggest rates need to go even lower?

Unfortunately for the Fed and Meyer, as Tyler points out, their chatter rings hollow.

P.S. Yen Cross, thanks for your note.

Sun, 03/06/2011 - 15:38 | 1023935 tallen
tallen's picture

Obviously on crack.

Mon, 03/07/2011 - 00:12 | 1025237 citizens divided
citizens divided's picture

much easier to keep the most necessary, middle-east palatial stabiliers in place if one is able to hold-upside down, the American non-carpool domain, and determine (in the form of food subsidies) what could be be shaken from their pockets... and the palace gets to keep all of the day help.

Mon, 03/07/2011 - 20:34 | 1028033 lsjcma
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