This page has been archived and commenting is disabled.
Remember When A Fed Permadove Promising Perpa-ZIRP Sent Stocks Higher?
There was a time when bears looked on with dread as a Fed Permadove and vice chair Janet Yellen cleared her throat in advance of delivering prepared remarks, knowing well the algos would go full liftathon retard as soon as the flashing red highlights hit the screen. Well, Yellen did just that in a speech titled "Revolution and Evolution in Central Bank Communications" (link here). Some of the highlights:
- YELLEN SAYS FED SHOULD LINK LOW-RATE OUTLOOK TO ECONOMIC GOALS
- YELLEN FAVORS ELIMINATING CALENDAR-DATE COMMITMENT TO EASING
- YELLEN WOULD LINK STIMULUS EXIT TO INFLATION, JOBS THRESHOLDS
- YELLEN SAYS 2% INFLATION SHOULDN'T BE CONSIDERED A CEILING
- YELLEN SAYS OPTIMAL POLICY FOR BALANCED APPROACH INVOLVES KEEPING ZIRP UNTIL EARLY 2016
And... nothing. In fact, worse than nothing - selloff! We have now gotten to a point where the Fed implicitly promising it may keep ZIRP until even longer than previously promised, or 2016, results in a coordinated dump.
The empty chatterbox pundits out there may say to "not fight the Fed", and the irony is that they may be right: after all why should anyone fight the Fed, when the Fed is doing a great enough job of fighting itself, for one simple reason: when you promise eternity, you can't top it (as we warned the day QEternity was announced).
»
- 10242 reads
- Printer-friendly version
- Send to friend
- advertisements -
QE3 infinity was the ultimate credability fail. They shot their entire load and nothing happened.
long gold and short the S&P 500.
also long burning wood for heat.
Pumps in my area of Ontario are up 13 cents in two hours on the happy news.
New normal, carry on.
Half-life of 5 minutes, sweet.
Are the sheeple finally waking up, realizing the Bernank can't unwind this beast?
The majority of sheeple couldn't tell a bernanke from a bukakke.
Oh, there's a difference?
(Well, to be honest, the bukkake recipient does not actually get fucked.)
Ive been coming here for a long time and i missed the boat on who this yellen person is... This sheep needs some help
N/M found out shes the bernakes bitch.
Thanks goog
This is the perfect time for an equity market decline of significant proportions.
Obama said "now might be a good time to buy some stocks" back in 2009, while he was just beginning to think about re-election, and needed to start building the illusion of a recovery and rebounding prosperity (even though it was phantom balance sheet rebuilding, vacuous and inclined to implode more quickly than it was rebuilt, as all bubbles are wont to do, along with massive deficit expansion to catch the incredible numbers of persons who would soon fall into the SNAP/EBT/SSI/etc safety net, and keep the ugly soup lines seen in 1933 out of sight and out of mind).
The Bernank & Timmmay (aka President's Working Group on Financial Markets; aka The PPT) got really busy filling the vacuum that was the reluctance of free market participants to take on the inherent risk present in the equity "markets" by indirectly backstopping such risks (see QE via POMO, TARP, TALF, Maiden Lane I through XXXVIII, mark-to-unicorn standards, relaxation of other financial restrictions, TBTF being ingrained as "state" policy, etc.).
Now, Obama's re-election is locked up, warning bells have been loudly rung about everything from the "fiscal cliff" to proclamations of equity valuations being rich (when they're actually silly, as in silly dot.com 2.0), and so if there's a big liquidation event that tanks equity markets, everyone would say "clearly anyone who was holding equities at those levels was ignoring massive risk, loud warnings, and they were being greedy/stupid/etc" because "everyone could've seen that coming" (the antithesis to "no one could've seen that coming").
Every dynamic that was put into place back in late 2009 and early 2010, to claim the equity "water is fine, so c'mon in!" is now the diametric opposite.
+1
Assume the position 'Murika...
But what I really meant is that Janet Yellen is all "blah blah blah," and the grotesque afterbirth of what's widely recognized to be the freak of Bernank'd, broken markets, as real market forces now re-emerge to drink the Fed's milkshake.
Markets Drink Your Milkshake, Janet Yellen! You're Just The AfterbirthWe had QE throughout the duration of WW 2. Probably long after actually (the brutal downsizing after WW 2 caused a NASTY recession.) I grant you there were wage and price controls then...which we do no have now. We COULD have wage and price controls now however. My guess...no, my CERTAINTY as to why that is is that the Fed wants inflation "to pay for everything." that says to me buy index funds (no one can factor in inflation risk as an individual investor) and avoid all debt and debt markets. Sure...Treasuries have surged...but as has been said here many times "one day the Fed will have a failed auction." and then you will see the massive amounts of PRICING POWER that has been created...and an affordability index" to tell the Government types "everything is going just fine."
One could buy index funds, toss a coin into the air, piss against the wind, or play Russian roulette, with equal chances of success or failure in what are deeply dysfunctional, very much broken, Bernank'd markets.
Some say she's in line to take over from the Bernank.
MOAR Milkshakes...
A lot of people think that bukkake originated with the Japanese, Not so! It is actually a ritual practiced at FED meetings with Janet Yellen as the recipient.
Yeah, and whatever happened to stable prices mandate?
Welcome to Japan 2 and the Greater Depression
Brilliant move on their part - to reframe the mandate for stable prices into a mandate for a stable rate of increase in prices.
Fuck them. Fuck them all.
It's like the Titanic going down and the Captain telling the passengers "nevermind the lifeboats, everything is fine and we'll be in port shortly".
Janet Yellen wants to do nominal-income-growth targeting (aka "failed tragically everytime it was implemented in part or full in the past, but this time will be different"), UBS' Larry Hatheway writes an essay on how 1000% inflation rate could theoretically be well tolerated (a deviation on his past essays on how small caliber firearms and canned spam are good investments), and Texas is on the verge of actually submitting a petition to secede from the U.S. (a legally valid one that would manadate a formal response from the Obama Administration/D.C.).
In other words, just another day in the life of The Bernank'd markets.
If it is based on the government's calculations, then we are in real trouble. Nothing better than tying monetary policay to imaginary numbers.
fuck yeah!!
suck Austrian dick Yellen, you bitch!
i'm kaaamminngg day and night
http://www.youtube.com/watch?v=VZqfUzax3kE
You know she's banging some 4 star general
I thought that was the reporter Yellen. And besides if we're talking stars here "he's banging her." get your story straight mister
Come, I know these are the REAL headlines:
"That's not a joke."
The bad news is the computer algorithms reading the headlines weight Greece on the verge of default rather a lot higher than some bitch at the Fed spewing meaningless shit.
@ACP
In all seriousness, she might as well have said all those things you listed. Really, what's the practical difference given that she's insane.
Has the FBI checked Yellen's emails?
I thought the USA just had an election with mandates and stuff.
Dennis Lockhart, the ass-crack < of Bernanke...
Remember this article? Fed: Let's Twist again like we did last summer? - Economy
Yes,Yellen is yelling.
QE forevah,
no more anticipation rallies
3X short S&P 500 through SPXU.........see yoo when it's $150/share.
I can see how stocks could stay flatlined but gold should start leaving everyone in the dust soon.
FUCK YOU YELLEN!
Tell me how you really feel....
Revolution in "nuance". Sounds oxymoronic.
Just like (dead)Woodford at Columbia, monetarists don't need economics degrees these days but, rather, psychology degree as it is all about tricking investors and consumers into self destructive behavior.
Oh Kevin Henry have they given you carpel tunnel syndrome yet my boy?
Looks like you can't hold SPY above $138.00?
Youv'e lost it man!
the Kevster, along with the BOJ and primary stealers put up a gallant fight but reality "raked their eyes and body slammed em" just before the bell
I think the primary Stealers are going to go against the 'nanke and start shorting the spectrum of the S&P 500.
They will demand total war!......with somebody?...........The Army is to busy getting their Viagra & Testosterone 'scripts filled and sexting to plan Cheney's "next war".
What the fuck are we going to do now?
I think this might be Obama stroke of genius to hamstring the military, so bably, as to make a new conflict undoable.
The Generals will be tied up in Congressional hearings for the next four years while Obama builds some mother fuckin' infrastructure bitchz!
Genius!!!!!
You would not appear to understand conflict spectrum.
If you defund conventional forces and a conflict erupts and presents the president with a need to respond, he has nothing left but nuclear weapons with which to respond.
You fail to conprehend the military uses 50% of all the oil consumed in the world!!!!
Just parking the AF jets will save billions every day without the first cut.
You don't get it!
Peace dividend will be a result of the generalhornygate scandal.
Who can make war when they are lawyering up?
Pffffffft.
Damn! Those Keynseians don't give up easy!
You can always redig the hole you just filled in.
All they can do at this point is try and trick people into believing in the future - and hope there are a few more fools out there with money to invest.
channelling P.T. Barnum...
She and the rest should be fired for their mismanagement of the economy. David Einhorn eloquently made the case against ZIRP and Japan has provided the ultimate test case of its failure.
Yet, like any soon to be unemployed trader, they keep doubling down.
With higher interest rates the fixed incomers might actually be buying more. Certainly no one can borrow more and Corps have their own cash to use and no motivation (projected growth) to borrow. But Ben's gotta keep those 401k's up there or the Repugs are back like a bad penny.
The ZIRP benefits the banks not the citizens. The Central bank has always facilitated the banks sucking off the taxpayer tit ever since its inception, nearly 100 years and counting. Welfare recipients are raw novices compared to central bankers.
The Benanke premise that money that is essentialy "free" will be grabbed by all and spur investment is ass backward. Money must have a value placed upon it for it to be worthwhile. With ZIRP there is no incentive for the "producers" to use it because anything that is made is lost to inflation and/or profits can't return value when reinvested.
Banks produce nothing of any use - they are margin takers and the removal of margins from deposited money means less is left for the real producers. Benanke is producing deflation not fighting it. He has the brains of a smashed Crab
she ain't no greenspan, that's for sure.
She's a disaster and, sadly for all of us, likely the leading candidate for Bernanke's job.
Back in the day, when Greenspan was Fed Chair, I recall thinking that Bernanke would be the worst possible replacement. Now I think that about Yellen. Ruh roh.
I guess theres even a half life for shitty FED chairmen
She ain't no Greenspan but she is the Bernanks replacement should he decide head back to school
Horse manure!!!
That would be awful. Of course ... their demise by self-inflicted wounds might come sooner.
SPX lost the battle for the 200DMA today. Guess will have to wait for Friday opex for the late-comer bears to get annihilated.
Four consecutive closes below the 200 DMA. That ain't what happened back in June when the 200 DMA was breached. Maybe this time is different.
I said it in September and I'm telling you again now. The market top was in, we will not see it again.
I just shorted the hell out of risk Doc E.
So treasury bonds have a huge upside as yields head towards negative infinity? This should end well.
THEY CAN"T DO THAT!!!!!
Oh shit!
KH is hammering the buy key into close!
Can he pull it off?
Nooooooo Kevin can't do it!
1.7 million shares spy traded in last minute and he just couldn't do it.
Now he has the hedge funds shorting and the FRBNY will be buying into that!
It is only Tuesday people!
To be fair, he did manage a point and a half or so on ES into the futures close. This week could be interesting.
What's up with platinum and Palladium today?
http://www.platinum.matthey.com/
" ... PLATINUM MARKET FORECAST TO BE IN DEFICIT IN 2012
SOUTH AFRICAN PLATINUM SUPPLY TO FALL TO LOWEST LEVEL SINCE 2001 ... "
...bitcheZ!!!!
Nice thanks for the read.
If you have the means ... PMs don't very often decouple, do they? IMO it's big news when they do. Thank YOU for the callout.
Platinum goes to the moon when there is a real war....and South Africa produces 90% of supply....just sayin'.
What, no insanity clause rally ahead of the all important holodaze shopping season?
No wonder we are fucked with skanky shit for brains hos like Yellen at the Fed.
Todo was spotted pulling back the curtain.
dear god, "2016" is now creeping into their ZIRP goals? do they really see wage appreciation keeping up with inflation? if so, they're insane. people are still going to be making $50K but gas will be $6+
But ... but ... it's for the greater good. Isn't it?
This little tax on society is going to hurt. Bring income forward and postponing deductions seems prudent
cant someone find a few emails of Yellen sucking some Generals dick
All thats left in that prolific "Fed Toolbox" is a busted screwdriver and a roll of duct tape.
YELLIN SCREAMIN DO SOMETHIN FOR CRYIN OUT LOUD BTFD
Gotta have money to give free shit away! Obama owns it now...
nah...Bush will dead and gone and it will still be his fault
QEternity and ZIRP forevah...sing it now
and we will still be singing as the dollar dies....this is the final lap folks....we live in a world of Fed Fantasy. As long as the world lets the Fed run the show all will be well and the USA will prevail. One day a fruit vendor in ......
... zimbabwe, and japan, was avant-garde.
The life cycle of this hopium rally was 10 minutes. God in heaven help the stock market bulls.
Tis better to be silent and thought a fool, than to speak and remove all doubt.
Jesus, does LIESman actually believe his own BS? That's just scary...
Yes. Like Krugman, he's not smart enough to be devious.
Guys like Liesman always take the popular/easy way out! He learned to earn his keep by being the 5'th wheel in any conversation or vote.
Steve Liesman, was the guy you stuck up for because he was an under achiever in life.
Then he used his "blind vote" to suck the Wall Street Bulls "penis" of greed!
"He learned to earn his keep by being the 5'th wheel in any conversation or vote."
Hit the nail on the head Yen.
3 Step Program to economic recovery
1)Default
2)?
3)Profit
Lol, got to love the underpants gnomes at the fed.
What she really said: The economy is so screwed up, the Fed will be forced to throw massive amounts of fiat paper at it just to keep from spiraling into a never ending dark chasm. They can't stop printing for the foreseeable 2-3 years.
Think of a patient in major cardiac arrest. The only thing keeping the patient moving is the massive amounts of electricity flowing through his body from the defibrillator. Do it too much and the electricity will kill the patient.
The markets are starting to understand that the patient might be past the point of salvation. The Feds actions speak volumes about the true state of the economy.
Dibs on the liver.
WELCOME TO WAVE 3 OF III DOWN. NEXT STOP OR BOUNCE WHATEVEVER YOUWANT TO CALL IT IS HIGH 1200'S.
I'm liking 1286 for some reason.
I like 888 as a tribute to the new Chinese leadership!!!!!
2016... fuck
death to savers and seniors
SNAP cards and single Moms... >FORWARD HO> Prisoners...
Perma ZIRP, or Zero Interest Rate Policy/Endless Stimulus should be called ZIRPES because it's no good and once you get it, it's for life.
THIS JUST IN:
I think Geithner said we won't go off the fiscal cliff...so we're all good!
no chance of that -timmah
just like no chance of downgrades or no chance of another lehman
In other words:
We're going to keep doing what we're doing because we have no other ideas until it either starts working or blows up in our face. Either way, I'll probably have a fat Wall Street job by then, so, who cares.
Cmon guys. We knew this was their playbook. Print money and push rates low until you have a currency crisis. This has been the plan all along.
gee, 2016, zirp til next election. It's musical chairs, who can push off the meltdown until the next term?
FREE SHIT FOR EVERYONE!!! WEEEEE!!!
Raising the 2% "target"? Didn't see that coming...
/sarc
Where's Mish and the deflationist retards?
yes!!! hyperinflation is impossible.........unless they change the rules.....and they have only done that......57 out of 57 times in the past 100 years.
Dear Fed and Yelland, just close your doors and shut up shop, forget it. Stay out of the market, you are a clueless bunch of academic idiots. Thank you.
Good post chump! Trying to penetrate the "Death Star" takes more than words...
Send in kamikaze version of Luke Skywalker?
Yellen is a worn out Keynesian tramp. She's been sucking up too many Fed heads wanks.
Marc Faber is right. http://www.cnbc.com/id/49802535
He says what we all feel.
Time to take the pain
"YELLEN SAYS 2% INFLATION SHOULDN'T BE CONSIDERED A CEILING"
Oh good, we're saved now.
I can no longer help but notice the similarities between QE induced 'growth' and Viagra induced boners. It is a connection that must be made.
Both are artificial and inflate the egos of the forlorn. A desperate cry for the good ol' days, if you will.
What these doleful souls fail to consider, is that what women (& the market) want, is not these artificial, pre-planned rammings, but rather the ability to effectively "fuck-tuate" in moments of spontaneity!
Treat yo ladies nice and keep humping ZH. A healthy sex life ALWAYS pays dividends!
lol. love that rhymin' alliteration title Tyler. You should know it's appreciated. Cheers.
"YELLEN SAYS 2% INFLATION SHOULDN'T BE CONSIDERED A CEILING"
With apologies to current situation in Zimbabwe ...
Yellen says we want to be like Zimbabwe and want to try to wipe our ass with USimdarllers and like them fail too
Debt ceiling, inflation ceiling.... what's the difference.... who cares... it only YOUR money .... sukkas
As I've always said:
Is the Fed + Primary Dealers going to buy up everything?
Their business model has been screwing people with fees as well as pump/dump.
Holding stocks in inventory is something a "retail investor" does, not the Primary Dealers, hoping that the stocks will go back up.
Anything less than 50% drop will do nothing, absolutely nothing to clean up the losers. Preferably, 80% drop associated with the collapse of at least 5 or 6 primary dealers. That would be cathartic.
Fuck YOU Yellen......
Bye now.....
My guess is shes a banker....?
Why are we even debating this idyut..
Get the hell out of the ecnomy bitch and let us real men take over.
nuff of these panty sniffers in power.
It is time to play cowboys and bankers