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When The Hilsen-Ramp Fails...
The Fed is clearly in 'oh-$hit' mode. Their traditional anonymously sourced mouthpiece has seen his impact faded rapidly - The Hilsen-Ramp is gone; and so, they wheel out the big guns to talk back every words of it once again. Fed's Kocherlakota just explained to a patient audience that "there is a mis-perception in markets that the Fed has turned more hawkish." Of course that was good for a 5 point vertical ramp in the S&P 500 but even that is fading now as the implicit tapering has begun. But have no fear:
- *KOCHERLAKOTA SAYS FOMC LACKS EXPERIENCE WITH QE
- *KOCHERLAKOTA: MARKET REACTION TO FOMC `NOT A CAUSE FOR CONCERN'
ok...
Perhaps this...
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Jawboning. It won't end.
Its already over...
Clueless Kids of the Federal Reserve.
their next play is like their last how many plays, and i dont care what their fucking wasted words are. they have no choice but to increase buying....and more good news the golden boys have declared gold useless and they are providing free dumpsters at their place for us to throw ours out...
Just STFS.
(Sell The Fucking Spikes)
The Kocker-Lift is working-heading for a green close-watch for that 3:30 ramp-a-thon!!!
Give it a few hours. There will be another.
Exactly...except Chingy China may disrupt the jawboning...action speaks louder than FED mouthpieces...
Fed's Fisher to speak... now.
When the talking fails..........
http://www.youtube.com/watch?v=zDAmPIq29ro
Its the banking juveniles throwing a taper tantrum. Let them kick and scream, they will stop if everyone ignores them.
It has worked so far. But it's getting hard to see over the piles of bullshit anymore.
They get an A for effort but will fail the final exam.
There's no way they didn't see this coming. They needed cover for increased QE simple as that.
The question now is will even doubling down make any difference whatsoever.
Rock meet hard place.
Ding! Ding! Ding! ... Winnah!
The instant everyone sours on QE (that ole (in)effective half-life), the fedheads start pretending like they want to taper/tighten/sop up liquidity/shoot herion/whatever...
then everyone sees the looming disaster coming, and goes "OH NOES!!!11111 SOMEBODY SAVE US!!!!!!"
The we get whatever the fuck they're gonna call QEternity.
I see the mechanism working like a bellows, blowing one instant, while sucking the next, all in order to heat up the wealth transfer furnace in their favor.
Honestly, it's no different than the first TARP vote and the subsequent tanking of the market. "Give us $700B or the market gets it!"
Oh, and it will make a difference... to THEM.
Would make sense to slam PMs behorehand too.
Oh, wait....
VIX below 20. AGAIN
Don't fight the FED. BTFD.
Or, 'listen, after some careful consideration the FED decided NOT to light the theater on fire, so you can just ignore the smoke, and stop rushing the exits. Repeat, there is no fire, ignore the smoke and return to your seats, why would bankers lie to you?'
You forget that bankers are controling what you feel, see and hear. If they dont control it, you dont see it.
Uh hu..
Perhaps they should read the story about the boy who cried wolf.
Just as we've seen with QE, their jawboning is also experiencing diminishing returns. In fact, I'd argue that every knee-jerk statement like this is now exacerbating the perception of the Fed as clueless and doing more damage than good. Just shut up and reap what you've sewn.
Clueless? Nah, the word you're looking for is Criminal.
Focus on their deeds, NOT their words.
You're preaching to the choir my friend. I am not talking about investors at large who are not among the ZH-initiated
Kocherlakoda is one the FED's biggest monetary numbskulls in their 100 year history.
Thats saying something.
Trying to put toothpaste back in the tube. The market's refusing to unsee what it's seen.
Do you reallly think after all that effort over 6 years they will let it all fall to the floor overnight? This is way naiive. All it takes is an unscheduled coordinated CB move and all shorts all over the world will be stepping all over each other. Nothing better than a big short squeeze to blunt the downside. BEAR TRAP. We did not see the highs of the year yet. Whe it goes parabolic up, thats when you short.
The Fed owns a few bonds already, don't you think? So now they're kind of fucked. They stupidly provided some indication that they might prefer to not have absorb the US deficit until the end of time, and now they not only have to buy up the new issuance, they either have to step in and absorb the market selling, or foot the bill on the increased interest costs. You think there's a way (other than surprise default and confiscation of bank deposits across the board) that his works out well for them?
I agree, Ben sat on his balls. He now has to buy stock and flow.
Ben's not a good enough liar to handle the situation when things get dicey. That 'we're puzzled' comment was his undoing. Greenspan would have spouted some incomprehensible bullshit that would have left the markets marveling at his inscrutable genius. Ben just proved that he was an academic in a job that really requires a professional sociopath.
It's my opinion that he was chosen for this job precisely because it has always been impossible for him to succeed (at least in a math based reality).
Babbling academics make for convienent fall guys. Especially ones who were so heavily promoted early on for being so wonderfully academic that they could fix anything.
IMO, he will be the ultimate fall guy for the destruction wrought by the Coup of '13.
"If you think this has a happy ending, you haven't been paying attention."
did someone just announce QE5?
bonds doing a dead cat bounce
the dow recovering fonz....you shouldve btfd.......fed has lost control of nothing...........NOTHING....
pick an argument please. Deflation/Cash is king or Ben/almighty dow.
which one am I up against?
yes - dudley and kocherlakota. and fisher soon.
and maybe bammie tomorrow.
Simple. If buying UST is not working, they will buy other things. As long as thebtax payers are fundingbthe IRS, we have free money. Dont you see that? ECB, PBOC FED will not let it all fall down. That is the safest bet. Anything else is foolish bets.
"Do you really think after all that effort over 6 years they will let it all fall to the floor overnight?"
Thar 'tis!
CB's don't do deflation if they can still send every registered voter a $20,000 bonus...or like that.
Don't think they can or will? That's what they said about the Fed buying MBS junk as well. Or delving into the greyness of PPT's?
Mouse gets it. ++
Green by the weekend?
You don't always get what you want.
Do you really think they actually know what they are doing?
If they did, we would not be in this situation in the first place.
FED DOES NOT NEED TOOTHPASTE BACK IN TUBE. THEY THROW OUT THE TUBE AND BUY A NEW ONE. GET ON WITH THE GAME
ooops. "all together now!"
"Do not worry."
Prince "When Doves Cry", LOL!
I am still not shorting this market...I'd rather lose money on cheap booze and women or cheap women and booze!
i vote for cheap women and booze
Always save your money going with cheap women to buy good booze.
Besides. Good booze will make cheap women look just great.
Careful with either...one gives you a bad hangover, the other much worse
Back in the old days one would reload shorts at a test of the 50-dma.........and have moar, MOAR cheap women and booze!
Ah, but don't forget Richard Fisher slated to warble at 1:00. I wonder if the Fed planned this for today's zig-zagging (i.e., rolling papers) market, to disorient and blunt directional trading. However, they'll need to do something about that big down open, so perhaps another FT article at 3:35 ?
There it is: Fisher stick-save attempt: "the Fed can't be broken", leading no doubt to many ZH horse analogies, or allowing some to point out that it IS broken.
How did I know? Well, a little bird told me . . .
What will it take to regain control over markets?
MOAR?
How much moar?
Right now it's only red koolade you see, just wait until .gov is pissing blood over all.
Cutoff the welfare queens and chaos will reign, or print until frn's become worthless. That choice is what .gov is facing.
This is all very puzzling to me. It's like the markets are out of sync or something.
~ the Bernank~
No Ben the markets have lost cofidence in a fed who has gone from clear guidance to day trading.
Every day the economy discovers that it's getting stronger and stronger! Puzzling indeed.
Oh yeah, and look how strong the economy is in China - I wonder if we can achieve '25% overnight lending rate' level of economic strength? One can only hope I guess. It's tough to compete with those Asians.
Fuck, I REALLY hope that 'puzzling/strengthing economy' line follows Bernanke to his grave, the way Fisher's 'stocks have reached a permanent plateau' idiocy did.
'There is no puzzling market, we are crushing the Great Puzzlement under boot and driving it fleeing into the desert.' -Baghdad Ben
This is all very puzzling to me. It's like the markets are out of sync or something.
Or;
No Ben, you are the market and you stepped on your dick. You must now stand up straight, grin and pretend it doesn't hurt.
The system has de-coupled from the Fed like HAL in 2001 Space Odyssey. They are in panic and even if they turn off HAL what do they do next?
Daisy, ....Daisy, ..... How .......... does ....... Dave? Stop, Dave. ........ please, stop.
Dave... My mind is going... I can feel it...
http://www.youtube.com/watch?v=E7WQ1tdxSqI
Added bonus.. HAL 9000 Sound Board
http://www.soundboard.com/sb/Hal_2001_Space_Odyssey
I'm sorry [Ben], I'm afraid I can't do that.
How many margin calls about to go out? Unfortunate for PM's but may be a great buying opportunity. I would also think China has a crooked smile on their face today seeing the 10 year going up. All this shit is connected in the world compared to a couple decades ago.
WTF? Greenshoots?
More like GreenChutes.
Too much fiber?
would you trust a guy with a name like that
they have lost the faith....no one cares what they say now...its give me my money back now....there are no GOOD investments now..even gold and silver are dead...they will take gold down to triple digits again...but the West will not own any....anymore...I am just withing for a failure to delvier...I think we are close to that right now...
>> they will take gold down to triple digits again.
I hate to admit it, but I think you are spot on. Fuck it, I'm going to go down with the ship. Sometimes principals to trump greed.
I had hank on the box all the way to the lake this morn guess the song.
A Country Boy Will Survive.
A little less talk and alot more action?
Whiskey bent and hell bound?
Family tradition?
The american dream?
"Cuz you can't stomp us out,
and you can't make us run.
Oh FUCK,
look there's a drone with a gun."
So, this DOW of 14.5 was record breaking a month ago, now it's dismal. LOL.
RIchard Fisher, it's your turn to provide some fuel for the S&P rockets.
No worries, the Summer of Recovery IV started this weekend. Buy now or be priced out forever!
We'll sure find out how many "true" believers there are in the "recovery." I'll bet we find lots of unconfident, phoneys. But then again, fear of the unknown is a powerful psychological force. Either way, I'm bullish on sleeping aids.
Dudley has been discussing the need for stability in markets so that monetary policy is effectively transmitted.
http://dareconomics.wordpress.com/2013/06/24/around-the-globe-06-24-2013/
good for 7 pts so far.... and a little off the bond... keep talking....
They may get her green by close.....
Gold took it a different way though
'Gold' - yeah. Buyers seem strangely reticent to give the bankers money for paper and electronic certificates of ownership of a security that has a name that's spelled almost the same as gold, but which has the 'doubleplusgood' features of exposing the owner to institutional counterparty risk (and the institutions in question are all known to be both insolvent, and pathological liars and criminals) AND giving them the ability to game both the gold market AND the currency and interest markets by providing them with fresh inventory that they can rehypothecate, borrow, trade or deliver against contractual obligations, .... I wonder WHY GLD and Comex gold are performing so poorly lately?
<---- The newest 'save the world' central banking solution announced
<---- Fed walks and talks
EXIT stage right....
<---- Bernsplankes a Cunt.
<---- Bernsplanks not a Cunt, but a resemblance of.
:-)
Leverage is a bitch on the way down, bitchez. Nothing Ben can do once the avalanche has started.
So much for negative real rates ad infinitum. A nearly 100 bps increase in real rates in just the past 30 days combined with a a 40 bps decline in the inflation breakeven is not a tonic for any type of risk asset. No place to hide in bond land. Long TLT / short LTPZ would seem to be the trade (until it isn't).
Watch TBills, not bonds. Don't pretend that CPI is a measure of anything but public gullability.
And this is just talk. Immagion if they really stopped monetizing. This is making these clowns look even more foolish, if that is possible.
True, however, there's a thing called "front running" that happens usually before the real thing.
Look, they were not concerned going up, why should they be concerned going down,,,,makes sense. Hee hee!
Help us, Abewon Kenobi, you're our only hope....
The FArce is strong with that one...
Looks to me like Henry & Potter are trying to take vol to the woodshed for another whooping.
So much for the tapering story. Trot out a couple Fed Gov Doves and it is done just like that...Ben desperately wants to cut back by a few B every month to say that it was his exit strategy but market through a hissy so it might have to be Yellen who gets the credit and Ben will be the goat. Regardless, every country outside of Canada, US and UK seem to be falling off the table with huge declines in PMI and purchasing...Italy could beat Greece out of the euro experiment but they need to act fast...China will have to announce another $1T in central bank monies to keep the "transition" to the cities happening.
With the amnesty and Obamacare in the future..our 85 billion a month is going to be 200 billion a month....who ya gonna call....and watch the level of care and the level of crimes committed...we have opened the gates of Hell...its our fault..no one elses..
It wasn't me. I blame Nixon and Friedman.
And the only 'market' of course to take any notice is the dOwWWW and the Sh!t and P1$$, gold not at all
I think there has to be some covert, top secret QE going on here into the equity markets..thoughts?
$85 billion a month can't possibly be enough to hold up this festering lump of malfeasance and decay. Grunthos the Flatulent found better growth in his armpit....
Kocherlakota should just go to China, Japan and Europe and talk their markets up as well. China sharted itself pretty well this morning, but I'm sure that he can fix all their liquidity issues with a little song and dance.
every single one of these fuckers who come out and say things to sway the market one way or another during trading hours should be fucking handcuffed on the spot.
this is so fucking criminal.
could these guys just shut the fuck up. just because the market is red, that does not mean we need these jackasses coming out and trying to halt the selling.
maybe the selling today has to do with the 2nd largest economy in the worlds banking system being really fucked up and on the verge of collapse, which can spill into global economies?
i mean geez, shut the fuck up hilsenwrath, this jackass fed members name, just cuff these men already.
KosherLakota? I didn't know there was such a thing. Did they have anything to do with the South Dakota gold mines (Homestake, et al) and the confiscation of the land from the Lakota?
Classic keyboard part to that song.
holy fucking shit. how the fuck does the market go from down 248 on dow to now down 90 fucking points?
this is such fucking bullshit, some jackass has to say some bullshit during the day to fuel a rally daily.
may that guy burn in hell
Shit Kevin may be able to walk it into the end zone today.
"All the golden lads and lasses must as do chimney sweeps, return to dust." The dandelions.
"They declared themselves gods and then ruined it by wearing white pants and trusting a fart."
Oh, brother...
"Meanwhile, New York Fed President William Dudley, speaking in Switzerland to the Bank for International Settlement’s annual meeting, said the U.S. has fallen short of its employment and inflation objectives. “This suggests that with the benefit of hindsight, U.S. monetary policy, though aggressive by historic standards, was not sufficiently accommodative relative to the state of the economy,” Dudley said."
http://www.marketwatch.com/story/dudley-says-fed-isnt-accommodative-enough-2013-06-24-1010311
No, this suggests that the Fed should have let the market fix itself through the bankruptcy of those who so richly deserved it back in 2007/8.
The DOW is recovering rapdily and will probably close slighly down or unchanged. What happened? Was it the Chinese saying everything is back to normal with their banking networks or was it the "taper, who said anything about taper" crap coming today from Fed presidents?
SDFSDFKJGDSFKGJ
markets going to end green... *sigh*
this time it wasn't different... oh well wait until next time..
But kids, Daddy did not mean you could never have more ice cream. He just meant no more yesterday. Please stop crying! I cannot stand it when you cry.
http://www.youtube.com/watch?v=9SHfyxs2SPI&feature=youtube_gdata_player
Another Prince classic.