• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Fed Unleashes Another Taper Hint... Or Not

Tyler Durden's picture




 

Last week it was Fed's WSJ lapdog hinting at a tapering. Now it is up to the Fed's own John Williams to provide an even stronger hint at what may be coming as soon as this summer. From Bloomberg:

  • WILLIAMS SAYS FED MAY REDUCE QE IN SUMMER, HALT BY YEAR END

However, promptly following this is the following headline which we can only hope has a typo in it:

  • WILLIAMS: UNEMPLOYMENT WON'T FALL BELOW 6.5% UNTIL MID-2105 (er, sic?)

And just to confuse everyone, as the Fed enjoys doing, here is the conclusion:

  • WILLIAMS SAYS SLOWING QE WOULDN'T MEAN TIGHTENING IN POLICY

Bottom line: nothing will change.

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Thu, 05/16/2013 - 15:14 | 3570310 azzhatter
azzhatter's picture

Fuck You John Williams

Thu, 05/16/2013 - 15:18 | 3570332 ACP
ACP's picture

2105? Yeah that's the only honest forecast I've ever seen out of the Fed.

Thu, 05/16/2013 - 15:20 | 3570347 Pinto Currency
Pinto Currency's picture

 

Tapering infinite money creation still results in infinite money creation.

Thu, 05/16/2013 - 15:23 | 3570372 mayhem_korner
mayhem_korner's picture

 

 

Like a "rolling stop" at a stop sign.

Thu, 05/16/2013 - 15:26 | 3570388 knukles
knukles's picture

It's like Don Draper describing margarine;

"It’s morning. We know because we see the rooster crow. A farmer’s wife sets pancakes on the kitchen table. She puts a pat of margarine on top, and sets the dish down next to the yellowest fried eggs, a loaf of homemade bread, and a beading pitcher of heavy cream. Syrup pours. A smile comes over their Dorothea Lange faces."
                  (h/t wired)

Yeah, well it's still fucking margarine, not butter.....

 

Thu, 05/16/2013 - 15:34 | 3570398 ACP
ACP's picture

They'll just hint at a tapering, then when the market falls enough, retract the statement.

Criminal Market Management 101.

The effect is twofold:

1) Cause a market correction.

2) Get people to pile into bonds, saving the Federal Govt from having to make further spending cuts.

--I just can't believe Bill Gross missed this in 2011.

Edit: The ONLY was this could possibly end for reals is when people stop piling into bonds during a correction. Eventually, they'll pick a designated stock to ramp during an overall correction, say another AAPL for instance. While the broader market sells off, everyone piles into AAPL or TSLA, ramping it up 1000% in a few days, then selling it off when the market reaches a local trough. No more need for bonds for "safety" may be the true end for bonds. Just a thought.

Thu, 05/16/2013 - 16:14 | 3570601 eclectic syncretist
eclectic syncretist's picture

Jawbone that shit you stupid motherfucker!  Maybe someday you can get credit for pissing in the wind the way berstanke does you sack of maggot shit.

Thu, 05/16/2013 - 16:28 | 3570650 ACP
ACP's picture

You can jawbone my dick. And go back to your HuffPo hate boards where you belong.

Thu, 05/16/2013 - 17:28 | 3570850 asteroids
asteroids's picture

Think about what has happened this week folks. Rumor of tapering a week ago. The market is ramping like crazy during the week. You can just see the boyz trying to unload. Then another rumor today to try and cool off the market. I bet the boyz won't let it happen. They'll ramp it again trying to extract every fucking nickle they can into OPEX tomorrow. This market is totally scripted and you are the target of Psychological manipulation. Don't play. Cash out now!

Thu, 05/16/2013 - 16:49 | 3570725 ACP
ACP's picture

This whole market is dirt. I'm saying the Fed won't stop before everything blows up. The blow up is the only thing that will stop these bubbles.

Thu, 05/16/2013 - 17:19 | 3570818 spastic_colon
spastic_colon's picture

plausible i guess, partof the problem is the fed is always referring to lagging targets in their analysis which give them the excuse to be behind the curve.  They also said QE would create jobs, so credibility is not their strong point.

Thu, 05/16/2013 - 15:28 | 3570397 NotApplicable
NotApplicable's picture

I guess they'll have figured out that "full employment" enslavement thing by 2105.

Thu, 05/16/2013 - 15:30 | 3570412 mayhem_korner
mayhem_korner's picture

 

 

Yes, but a scant 7 years after that, the Elder Race will return:

We have assumed control...we have assumed control...we have assumed control. (fade distorted Lifeson guitar rift to end)

Thu, 05/16/2013 - 15:24 | 3570375 The Juggernaut
The Juggernaut's picture

They obviously have no fucking clue on what to do.

Thu, 05/16/2013 - 15:25 | 3570382 Mad Mohel
Mad Mohel's picture

I just wish he would go back to composing Star Wars soundtracks and stay the fuck out of economics.

Thu, 05/16/2013 - 16:01 | 3570567 CrimsonAvenger
CrimsonAvenger's picture

I'd like to lock him in a room with three wookies and a horny ewok.

Thu, 05/16/2013 - 15:35 | 3570438 Randall Cabot
Randall Cabot's picture

So what happens when oil shoots to $200 when war spreads from Syria?

Thu, 05/16/2013 - 16:05 | 3570576 Zen Bernanke
Zen Bernanke's picture

tapering QE doesn't mean tightening?  WTF williams, are you that stupid?  not even your bullshit makes sense any more. 

Fri, 05/17/2013 - 00:57 | 3571899 StychoKiller
StychoKiller's picture

The Bernank:  "...You don't want the truth because deep down in
 places you don't talk about at parties, you want me on that printer, you need me on
 that printer!..."

Thu, 05/16/2013 - 15:14 | 3570311 flacon
flacon's picture

Which hedge fund manager is going to appear in the news tomorrow morning to say that they find these valuations to be CHEAP and now is a great time to buy GOOG before it hits $1,000?

Thu, 05/16/2013 - 15:18 | 3570330 mayhem_korner
mayhem_korner's picture

 

 

I dunno, Becky...why don't we spin the wheel and see whose name comes up?  Or maybe try Mr. Magic 8-ball this time 'round?

Thu, 05/16/2013 - 15:26 | 3570387 1C3-N1N3
1C3-N1N3's picture

Accidentally read that as "Tragic 8-ball". This shitshow's warping my mind...

Thu, 05/16/2013 - 15:33 | 3570424 insanelysane
insanelysane's picture

The 8-ball always says Buy Moar!

Thu, 05/16/2013 - 16:19 | 3570618 eclectic syncretist
eclectic syncretist's picture

Abby Joseph Cohen is so worn out her genitals sound like a Basso profundo in the wind, so it won't be her unless they want to use her for secret code for a market top.

Thu, 05/16/2013 - 15:18 | 3570340 pragmatic hobo
pragmatic hobo's picture

a $300B company selling at 4X sales? Too cheap if you ask me.

Thu, 05/16/2013 - 16:06 | 3570582 Zen Bernanke
Zen Bernanke's picture

goog is so setup for a gap down island reversal.  come on oh god of stocks, hear my prayers.

Thu, 05/16/2013 - 15:17 | 3570312 fonzannoon
fonzannoon's picture

Transparency

 

This ride is almost over. It looks like the wealthy have extracted enough on the way up and have set the table for the way down.

Thu, 05/16/2013 - 15:20 | 3570346 Mad Mohel
Mad Mohel's picture

........ "extracted enough"

 

First rule of fed club; enough is never enough.

Thu, 05/16/2013 - 15:35 | 3570435 insanelysane
insanelysane's picture

Not until we get to Memorial Day and then we can just show back up after Labor Day.

Thu, 05/16/2013 - 15:35 | 3570441 Everybodys All ...
Everybodys All American's picture

There will be a fortune made by some on the ride down. Unfortunately the little guy will be losing theirs as is always the case. Why else by law can't you short in your retirement accounts?

Thu, 05/16/2013 - 15:15 | 3570313 DavidC
DavidC's picture

I'm getting really, really fed up with all this crap.

Hint here, hint there. They KNOW they're fucked one way or the other.

DavidC

Thu, 05/16/2013 - 15:19 | 3570342 fonzannoon
fonzannoon's picture

Don't hit it long. But don't leave it short.

Thu, 05/16/2013 - 15:27 | 3570394 dracos_ghost
dracos_ghost's picture

Yeah, these fucking amateurs need a hot cup of STFU.

Thu, 05/16/2013 - 15:16 | 3570318 mayhem_korner
mayhem_korner's picture

 

 

Absent wanting to intentionally crash everything, the Fed CANNOT stop QE.  It's just math at this point.

Thu, 05/16/2013 - 15:30 | 3570409 NotApplicable
NotApplicable's picture

Only question is if they've gotten the fall guy ready.

Thu, 05/16/2013 - 15:40 | 3570459 Everybodys All ...
Everybodys All American's picture

A market crash will happen either way. QE will be unnecesary for a while as Treasuries will once again be considered safer. Once the shock wears off. Well you know rinse and repeat.

Thu, 05/16/2013 - 15:17 | 3570324 CClarity
CClarity's picture

Tapering will be the signal.  Of the turn.  Not an official tightening, just not as much easing.

When they do tighten it will be in small increments.  Like 25 bps.  But the bond mavens will front run them and that's where they'll lose control.  They'l raise 25 and the market may jam 75.  Then the munis and corporates and MBS and junk will push further.  New issuance outside the Treasuries will all hurry to get in and that will push even higher yields.

Even if inflation is low and unemployment high, not to Fed targets, it won't matter.  The markets will unhinge from the Fed when they lose control and it will move very very quickly.  We will watch history as the financial world economy spins away.

Thu, 05/16/2013 - 15:26 | 3570386 mayhem_korner
mayhem_korner's picture

 

 

Tapering will be the signal...yes, the code-word to all of the insiders to get physical and get the heck out of Dodge before they crash this puppy.

Thu, 05/16/2013 - 15:43 | 3570475 Edward Fiatski
Edward Fiatski's picture

BoJ & ECB have Ben's back, just look at PIIGS yields of late. Draghi especially, given the politica talk of decreasing ECB balance sheet being bad in the current situation.

Thu, 05/16/2013 - 15:17 | 3570328 ekm
ekm's picture

How about next week?

 

And I am not joking at all.

Thu, 05/16/2013 - 15:24 | 3570373 fonzannoon
fonzannoon's picture

I have a lot going on next week. Can we just push it to tomorrow?

Thu, 05/16/2013 - 15:39 | 3570456 ekm
ekm's picture

you are freaking hilarious

Thu, 05/16/2013 - 15:26 | 3570392 thelibcentury
thelibcentury's picture

ekm, this would tend to indicate that you are on the right track:

http://www.longislandpress.com/2013/05/14/u-s-military-power-grab-goes-into-effect/

 

Thu, 05/16/2013 - 15:40 | 3570463 ekm
ekm's picture

They rule, they always did, but always ruling in the shadows

Thu, 05/16/2013 - 15:41 | 3570469 Everybodys All ...
Everybodys All American's picture

A lot of option activity indicate September is more likely. But it's coming. 

Thu, 05/16/2013 - 15:44 | 3570481 ekm
ekm's picture

It depends on the orders.

I think they'll pull a Navy Seals like attack.

Thu, 05/16/2013 - 15:47 | 3570506 thelibcentury
thelibcentury's picture

could you elaborate?

 

who is "they", and what constitutes a Navy Seals like attack?

 

Thu, 05/16/2013 - 15:50 | 3570517 ekm
ekm's picture

It was metaphor.

I meant that the Fed will come out of the blue and declare end of QE quite abruptly.

 

"They" is the White House + Congress committee overseeing the FED who actually make the final decision. 

Thu, 05/16/2013 - 15:58 | 3570536 Everybodys All ...
Everybodys All American's picture

No chance of it coming out of the blue imo. But we shall see. I might also add that Blackrock has been asking(telling Ben) for the QE to end and that should tell us all something is likely coming.

Thu, 05/16/2013 - 17:06 | 3570784 thelibcentury
thelibcentury's picture

understood - thank you!

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