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:


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


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


Bottom line: nothing will change.

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azzhatter's picture

Fuck You John Williams

ACP's picture

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

Pinto Currency's picture


Tapering infinite money creation still results in infinite money creation.

mayhem_korner's picture



Like a "rolling stop" at a stop sign.

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.....


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.

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.

ACP's picture

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

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!

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.

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.

NotApplicable's picture

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

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)

The Juggernaut's picture

They obviously have no fucking clue on what to do.

Mad Mohel's picture

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

CrimsonAvenger's picture

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

Randall Cabot's picture

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

Zen Bernanke's picture

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

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!..."

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?

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?

1C3-N1N3's picture

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

insanelysane's picture

The 8-ball always says Buy Moar!

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.

pragmatic hobo's picture

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

Zen Bernanke's picture

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

fonzannoon's picture



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.

Mad Mohel's picture

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


First rule of fed club; enough is never enough.

insanelysane's picture

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

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?

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.


fonzannoon's picture

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

dracos_ghost's picture

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

mayhem_korner's picture



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

NotApplicable's picture

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

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.

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.

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.

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.

ekm's picture

How about next week?


And I am not joking at all.

fonzannoon's picture

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

ekm's picture

you are freaking hilarious

ekm's picture

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

Everybodys All American's picture

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

ekm's picture

It depends on the orders.

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

thelibcentury's picture

could you elaborate?


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


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. 

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.

thelibcentury's picture

understood - thank you!