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FOMC Minutes: Half The Fed Participants Said It Would Be Appropriate To End QE "Late This Year"

Tyler Durden's picture


Discord appears to be the best word to describe the FOMC minutes but the baffle 'em with bullshit seems like the order of the day:


As a reminder, uberdove Charles Evans wanted 200K or more in job gains in the past two quarters. Here's the thing - the average monthly job gain in the past 6 months is... 201,000. As for the punchline:


Communication matters apparently. But the key is that taper appears (forget about an all out stop) to be coming soon - and as usual - it's all data-dependent. Aside from that, it is the usual baffle with BS schtick. Most importantly, with half the Fed saying not just taper, but flat out end to QE by 2014, we now have a full blown mutiny in the Fed.

Pre: S&P 500 futures 1644.50 (VWAP), EURUSD 1.2850, 10Y 2.66%, Gold $1250, WTI $106.45

The highlight paragraph from the minutes:

Participants also described their views regarding the appropriate path of the Federal Reserve’s balance sheet. Given their respective economic outlooks, all participants but one judged that it would be appropriate to continue purchasing both agency MBS and longer-term Treasury securities. About half of these participants indicated that it likely would be appropriate to end asset purchases late this year. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014. Several participants emphasized that the asset purchase program was effective in supporting the economic expansion, that the benefits continued to exceed the costs, or that continuing purchases would be necessary to achieve a substantial improvement in the outlook for the labor market. A few participants, however, indicated that the Committee could best foster its dual objectives and limit the potential costs of the program by slowing, or stopping, its purchases at the June meeting.

Not just slow. STOP.

There will never be any MBS sales: 

Most, however, now anticipated that the Committee would not sell agency mortgagebacked securities (MBS) as part of the normalization process

As for the (all cash) housing (non) recovery:

Participants generally were optimistic that the recovery in housing activity would be sustained, although a couple of participants were concerned that the run-up in mortgage rates in recent weeks might begin to crimp demand... Several participants worried that higher mortgage rates and bond yields could slow the recovery in the housing market and restrain business expansion.

The full minutes:


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Wed, 07/10/2013 - 14:05 | 3738252 stocktivity
stocktivity's picture

Market just ramped higher...the bullshit hit the fan. Rally on.

Wed, 07/10/2013 - 14:06 | 3738260 Divided States ...
Divided States of America's picture

much ado about bullshit.

What a load of crock these fuckin minutes are.

Wed, 07/10/2013 - 14:09 | 3738283 ACP
ACP's picture

There goes stop run #1.

Wouldn't be surprised to see another before the end of the week.

Wed, 07/10/2013 - 14:10 | 3738291 Thorlyx
Thorlyx's picture

Gold, bitchez

Wed, 07/10/2013 - 14:15 | 3738318 AllThatGlitters
AllThatGlitters's picture

Straight up so far:


Wed, 07/10/2013 - 14:18 | 3738333 flacon
flacon's picture

Is that 2014 or 12014?

Wed, 07/10/2013 - 14:24 | 3738365 NoDebt
NoDebt's picture

I was thinking the same thing.  "At the June meeting."  Yeah, what year?

Wed, 07/10/2013 - 14:33 | 3738410 Chupacabra-322
Chupacabra-322's picture

It's a Criminal system, built by Crinimals for Criminals. The business of America used to be business. Now the businesses of Amerika are war, theft, mass murder, and police state crackdown on anyone who objects.

Wed, 07/10/2013 - 14:50 | 3738467 RockyRacoon
RockyRacoon's picture

Thou doth protest too much.   There is business in America.  It's named after Charles Ponzi.

Now buck up a bit and enjoy Mandy's cleavage.

Wed, 07/10/2013 - 15:05 | 3738524 Herd Redirectio...
Herd Redirection Committee's picture

Everyone just wants to go on record as saying "I was against QE".  Its  an attempt at preserving credibility, no more, no less.

When my dog comes up to me and begs, I can tell him "Do you want to go for a walk?"  and he gets REALLY REALLY EXCITED.  For a little while, any way.  If I don't take him for the walk he gets mad as hell.   (swap going for a walk with QE, for the financial version, swap my dog with the markets)

Wed, 07/10/2013 - 16:09 | 3738803 BLOTTO
BLOTTO's picture

Soooo, whats on tv on Wednesday nights?

Wed, 07/10/2013 - 14:33 | 3738411 malikai
malikai's picture



Wed, 07/10/2013 - 14:40 | 3738433 disabledvet
disabledvet's picture

now that they're in the entertainment business as well as doing the regular "monetary stuff" i have a few ideas: clearly we're in need of a ratings improvement. try this out FOMC!

Wed, 07/10/2013 - 14:33 | 3738408 FuzzyDunlop21
FuzzyDunlop21's picture

So nothing new. 

Last time we heard this PM dropped 4% but today they get a boner. Im speechless. Not that Im complaining but lets get some fucking consistency. 

Wed, 07/10/2013 - 14:12 | 3738297 Divided States ...
Divided States of America's picture

Bernanke better have his A game on later in the speech like he did last time. A for Assclown

Wed, 07/10/2013 - 14:17 | 3738327 Bay of Pigs
Bay of Pigs's picture


Uncle Ben

Wed, 07/10/2013 - 14:29 | 3738389 Schmuck Raker
Schmuck Raker's picture



Wed, 07/10/2013 - 14:52 | 3738474 RockyRacoon
RockyRacoon's picture

Oh, gawd.  Imagine the soporific Larry Summers up there.  Talk about your mealy-mouth.

Wed, 07/10/2013 - 15:10 | 3738554 SAT 800
SAT 800's picture

Yeah; half of them want to end QE; the other half are going, "what Indian Reservation is this?". "What's this meeting about, again?". Groan.

Wed, 07/10/2013 - 14:13 | 3738307 TeMpTeK
TeMpTeK's picture

I voted to taper before I voted not to taper...

Wed, 07/10/2013 - 14:22 | 3738356 francis_sawyer
francis_sawyer's picture

I've often thought about studying law... BEFORE I've always thought about becoming a rabbi... BEFORE I've always thought about becoming a golf club... BEFORE I decided to go to work for the FED...

Wed, 07/10/2013 - 15:11 | 3738559 SAT 800
SAT 800's picture

Taper before voting; then shove it up the candidates butt.

Wed, 07/10/2013 - 14:15 | 3738295 fonzannoon
fonzannoon's picture

and it takes them 25 pages to say this 

whatever. Crude and the 10yr is all that matters. The next gdp should be funny as shit, and the taper is data dependent. what a long fuckin way to say QE4eva

Wed, 07/10/2013 - 14:13 | 3738308 TruthInSunshine
TruthInSunshine's picture

Bernank & the gang at the FOMC are like a pretzels, all contorted, trying to keep equity "markets" from imploding, trying to cap the ass of ^TNX, and simultaneously attempting to slap oil's boner down.

Wed, 07/10/2013 - 14:14 | 3738314 fonzannoon
fonzannoon's picture

two cnbc guys are competing as to who can hypothetically suck the S&P 500's dick moar.

Wed, 07/10/2013 - 14:18 | 3738336 Bay of Pigs
Bay of Pigs's picture

Maybe Mandy can help with that? She gotz a purdy mouf.

Wed, 07/10/2013 - 14:18 | 3738339 TruthInSunshine
TruthInSunshine's picture

Steve LIESman just bet Bob Pissant 10 Bernanks that he could suck a golf ball through a garden hose, when Becky Quick interrupted them on a schizoid rant about how she'll "drink everyones' milkshakes."

Weird shit at CNBS. Maybe ratings are down?

Wed, 07/10/2013 - 14:39 | 3738423 ebworthen
ebworthen's picture

Mandy Drury looking pretty spicy today in her sleeveless purple Summer dress buttoned down to show off the cleavage.

Wed, 07/10/2013 - 14:54 | 3738484 RockyRacoon
RockyRacoon's picture

She has that trailer-park-trash air about her that we down here in the South love so much.  The dyed blonde hair with ample dark roots is the key element.  Like Dolly Parton once said, it costs a lot to look that cheap.

Wed, 07/10/2013 - 15:20 | 3738597 Herd Redirectio...
Herd Redirection Committee's picture

Trophy wives are goddamn enablers.  If every trophy wife and prostitute refused to be seen on the arm of Bloomberg, Blankfein, Buffett etc. we could end this all a lot quicker.  Not much incentive to the trophy wives, although, they would be national heros...

Wed, 07/10/2013 - 14:19 | 3738342 jmcadg
jmcadg's picture

Just two?

Wed, 07/10/2013 - 14:21 | 3738351 JonNadler
JonNadler's picture

if Betty is around it's no contest

Wed, 07/10/2013 - 14:26 | 3738379 WarriorClass
WarriorClass's picture

Thieves Guarding the Bank, Traitors Guarding the Country.

Wed, 07/10/2013 - 14:33 | 3738413 crazyjsmith
crazyjsmith's picture

"Best way to rob a bank is to own one"
William Black

Wed, 07/10/2013 - 14:07 | 3738262 AllThatGlitters
AllThatGlitters's picture

Wow, look at Gold and Silver spot prices reacting:

Real Time:

Will they reverse shortly?  They always do. First reaction never seems to be the final reaction.

Wed, 07/10/2013 - 14:25 | 3738368 BurningFuld
BurningFuld's picture

Not Gold and Silver rising,but the USD collapsing.

Wed, 07/10/2013 - 14:23 | 3738357 outamyeffinway
outamyeffinway's picture

Ground hog day all over again. Same shit, different day. Year in, year out. And yet the fish keep biting.

Wed, 07/10/2013 - 14:17 | 3738253 The Thunder Child
The Thunder Child's picture

My god, it's full of lies...

Wed, 07/10/2013 - 14:06 | 3738254 AllThatGlitters
AllThatGlitters's picture

Buying the dip?

Wed, 07/10/2013 - 14:09 | 3738285 disabledvet
disabledvet's picture

or some dip is buying? you be the judge...(jury, executioner, etc.)

Wed, 07/10/2013 - 14:16 | 3738325 AllThatGlitters
AllThatGlitters's picture

Buying from the dipshits.

Wed, 07/10/2013 - 14:06 | 3738255 fuu
fuu's picture

Watch me pull a rabbit out of my hat.

Wed, 07/10/2013 - 14:10 | 3738287 knukles
knukles's picture

That's from Bull-Wankel, no?

Wed, 07/10/2013 - 14:12 | 3738299 fuu
fuu's picture

"Consumer price inflation was subdued, partly reflecting transitory influences. However, measures of longer-run inflation expectations remained stable.", quavered the Beard.

Wed, 07/10/2013 - 14:27 | 3738355 TruthInSunshine
TruthInSunshine's picture

"Watch me pull a rabbit out of my hat."

& then he just rips the fur off the poor bunny.

Sorry - Obligatory.

h/t Lewis Black

Wed, 07/10/2013 - 14:35 | 3738417 derek_vineyard
derek_vineyard's picture

"this time for sure"

Wed, 07/10/2013 - 14:58 | 3738499 RockyRacoon
RockyRacoon's picture

Remember that Rocky was the flying squirrel.  Alas, there were no coons on the show.  My Gideon Bible collection has grown exponentially.

Wed, 07/10/2013 - 14:11 | 3738296 francis_sawyer
francis_sawyer's picture

Don't go chasing rabbits...


Wed, 07/10/2013 - 14:22 | 3738352 samsara
samsara's picture

"I gotta get a new hat..."

Wed, 07/10/2013 - 14:06 | 3738256 ParkAveFlasher
ParkAveFlasher's picture

One turd tapering = another one queued.

Wed, 07/10/2013 - 14:08 | 3738267 ebworthen
ebworthen's picture

Short version: 

"The FED will give Wall Street all the Heroin it needs and continue to punish savers and the responsible citizen by misallocating capital and resources while keeping the government/banker cabal humming."

Wed, 07/10/2013 - 14:11 | 3738292 disabledvet
disabledvet's picture

pretty much. "no apologies either." any other questions?

Wed, 07/10/2013 - 14:29 | 3738391 tickhound
tickhound's picture

Shorter version for algos:

'Other half' of Fed still says spice must flow.

Wed, 07/10/2013 - 15:13 | 3738569 bonderøven-farm ass
bonderøven-farm ass's picture

+1 for 'Dune' reference...


Paul: Stilgar, do we have wormsign?

Stilgar: Usul, we have wormsign the likes of which even God has never seen.

Wed, 07/10/2013 - 14:49 | 3738464 Northeaster
Northeaster's picture

Wall Street banks are still going to get the interest on reserves payments aren't they ($80 billion)?

The American People appear not to care much as they continue to get steamrolled by their own government, Fed & Wall Street.

Wed, 07/10/2013 - 14:07 | 3738269 Dr. Engali
Dr. Engali's picture

Fade the bounce.

Wed, 07/10/2013 - 14:08 | 3738270 ThunderingTurd
ThunderingTurd's picture

Bond yields...not improving marketdly.  Paging the Bernank, paging the have lost control.

Wed, 07/10/2013 - 14:08 | 3738271 Iam Yue2
Iam Yue2's picture

Schizonomics rules ok.

Wed, 07/10/2013 - 14:08 | 3738272 katchum
katchum's picture

Labor gains? Good luck...

Wed, 07/10/2013 - 14:30 | 3738395 NoDebt
NoDebt's picture

Oh, you say that like it's impossible.  What they mean by labor "gains" is a headline number south of 6.5%.  Never happen, right?  Wrong!  "Gains" means driving enough people out of the labor force to get down to that number.  They're not there yet, but making steady progress every year.  It's how we've climbed down from ~10% to where we are now.


Wed, 07/10/2013 - 15:23 | 3738607 Herd Redirectio...
Herd Redirection Committee's picture

The unemployment % is meaningless.  Wages, tax rates, and number employed counts.  Down, up (or flat), and down.

Wed, 07/10/2013 - 14:08 | 3738275 Cunnial
Cunnial's picture

WTI 106.50... That is all... Rinse repeat 2008... 

Wed, 07/10/2013 - 14:12 | 3738304 khakuda
khakuda's picture

Yup, keep printing until oil goes to $200 and deny that you are causing any inflation the whole way.

I'll write their upcoming line for them...

"Not one person saw it coming.  We all thought the world could print infinite amounts of money with zero consequence.  This must be a failure of the free market to price things correctly."

Wed, 07/10/2013 - 14:27 | 3738382 TruthInSunshine
TruthInSunshine's picture

Yeah, when is Obama going to order Placeholder to do something about the evil speculators?

Can't let Bernank & Crew take the heat for rising energy (or all other) prices.

Wed, 07/10/2013 - 14:38 | 3738429 semperfi
semperfi's picture

they won't allow oil to go up much further - beatdown coming soon

Wed, 07/10/2013 - 14:09 | 3738278 JJ McApe
JJ McApe's picture

with soon they mean when unemployment hits 6.5%


Wed, 07/10/2013 - 14:09 | 3738282 Gringo Viejo
Gringo Viejo's picture

Utter nonsense. Never happen.

Wed, 07/10/2013 - 14:10 | 3738286 Father Lucifer
Father Lucifer's picture

The Fed is fucking useless.

Wed, 07/10/2013 - 14:28 | 3738390 Charles Nelson ...
Charles Nelson Reilly's picture

useless or clueless? or both?

Wed, 07/10/2013 - 14:10 | 3738289 thismarketisrigged
thismarketisrigged's picture

they r waiting for fucking labor growth?


do these shitheads not realize there policies have just delayed whatever growth we would fucking see?


if that is what they are waiting for, they will be waiting many many years.


same fucking bullshit

Wed, 07/10/2013 - 14:13 | 3738305 NotApplicable
NotApplicable's picture

Yes, they realize it. Better yet, they bank on it.

Please stop confusing words with actions.

Wed, 07/10/2013 - 14:11 | 3738294 youngman
youngman's picture

They can just change the data...that is easy with seasonality adjustments.....they make that shit up....or birth /death numbers....all smoke....they can´t stop QE....ever.....This China/EU slump will hit here in 6 months.....we just jumped the gun on the world one is buying right now...

Wed, 07/10/2013 - 14:13 | 3738310 kralizec
kralizec's picture

Yeah, words like "stop" uttered by these fools is hilarious...there is no stopping the crazy train!

Wed, 07/10/2013 - 14:12 | 3738298 kralizec
kralizec's picture

Not enough candy sprinkles for these manure releases...

Wed, 07/10/2013 - 15:05 | 3738522 RockyRacoon
RockyRacoon's picture

Speaking of toppings... they just did a feature about cronuts.  The effin' things are $5 each.  Almost as much of a rip-off as a cup of Starbucks "coffee".   The world goes bankrupt and people spend money on crap like this.  They deserve what they get.

Wed, 07/10/2013 - 14:12 | 3738302 Bastiat
Bastiat's picture

Does the Grand FUBAR itself speak today?

Wed, 07/10/2013 - 14:14 | 3738315 kralizec
kralizec's picture

I thought he was to expound on the glorious 100 year history of Fed meddling...


Wed, 07/10/2013 - 14:12 | 3738303 Seasmoke
Seasmoke's picture

What a fucking joke. Why even bother.

Wed, 07/10/2013 - 14:13 | 3738306 Winston Churchill
Winston Churchill's picture

Blah blah blah.

On the one hand,on another   and suddenly you are a Indian godesss.

He can't stop,but he can never admit that.He has lost control.

Wed, 07/10/2013 - 14:13 | 3738309 involuntarilybirthed
involuntarilybirthed's picture

Jobs mandate my ass.

Wed, 07/10/2013 - 14:14 | 3738313 wisehiney
wisehiney's picture

Down in the jungle where nobody goes, 

There lives a wishy washy woman washing her clothes.

She says "Ooh, Aah, Goshy, Goshy Goo"


Wed, 07/10/2013 - 14:16 | 3738321 firstdivision
firstdivision's picture

Time to cherry pick some 1000x P/E stocks to short in a couple of months.

Wed, 07/10/2013 - 14:16 | 3738322 walküre
walküre's picture

The vast majority of Americans have no idea what is going to happen when the Fed turns off the tap - again.

Wed, 07/10/2013 - 14:17 | 3738328 Dr. Engali
Dr. Engali's picture

It depends on the definition of "stop".

Wed, 07/10/2013 - 14:23 | 3738363 cougar_w
cougar_w's picture

Around where I live, a stop light means "go like Hell"

Wed, 07/10/2013 - 14:17 | 3738329 Peter K
Peter K's picture

STOP !!! Yea baby. Now we just need the algos to take a breather..... :)

But just to add my two cents. "About half" said stop. "Many of the others" (of the other half, that is) said no stop. Which would mean that more than half are either stop or taper. And only "many of the minority" are no stop.

Me thinks "That's all she wrote" folks :)

Wed, 07/10/2013 - 14:23 | 3738361 Bay of Pigs
Bay of Pigs's picture

Yes, let's trot out the Good Cop, Dick Fisher to explain the hawk view.


Wed, 07/10/2013 - 14:29 | 3738392 Peter K
Peter K's picture

Actually, they will need to wheel out Yellan/Dudly/Evans and the Ben after it sinks in what just happened. :)

Wed, 07/10/2013 - 14:33 | 3738412 Bay of Pigs
Bay of Pigs's picture

And we need moar HilsenRAMP!

Wed, 07/10/2013 - 14:20 | 3738337 CheapBastard
CheapBastard's picture

I just loaded up moar popcorn to watch the collapse of the stock market and Bubble housing market as rates ratchet up 'faster then expected' esp as the castration...ooops, I mean, 'sequestration' kicks in.

Wed, 07/10/2013 - 14:38 | 3738428 TruthInSunshine
TruthInSunshine's picture

The Learned, Bearded Clam has seen his foe, yet now has no mo' control.

In a future interview:

"Well, monetary policy can only accomplish so much...."

Soon to be be from-hero-to-zero (and the zero is not referring to interest rates).


Wed, 07/10/2013 - 14:19 | 3738338 Non Passaran
Non Passaran's picture

50, 30, 20 and 10% of votes for each option, respectively.
And the fucking equity indexes are going... up of course. Based on fucking what??

Wed, 07/10/2013 - 14:19 | 3738340 surf0766
surf0766's picture

"Most importantly, with half the Fed saying not just taper, but flat out end to QE by 2014, we now have a full blown mutiny in the Fed." that means they are too late again. Just look at oil

Wed, 07/10/2013 - 14:22 | 3738353 Non Passaran
Non Passaran's picture

Kinda, buy hey - the "markets" are disagreeing with you.

Wed, 07/10/2013 - 14:46 | 3738453 walküre
walküre's picture

How can the Fed be "late" or "early"? The Fed "is" the market. Plunge protection and plunger in one. Their comments are as useful as any bible commentary ever written. When the underlying substance is fictional, any comments regarding the substance are equally fictional.

It suits their agenda. Keeping the story alive and the ponzi going. Not for our benefit. After separation of church and state should also be the separation of financial wizards and state.

Wed, 07/10/2013 - 14:19 | 3738341 TWSceptic
TWSceptic's picture

More useless jawboning - listen to my words, ignore my actions and failed past predictions.

Wed, 07/10/2013 - 14:19 | 3738344 thismarketisrigged
thismarketisrigged's picture

got to make sure our markets finish green today so we can read on all headlines tonight, ''asian markets to open higher on strong u.s lead'', the type of bullshit we see day after day.



Wed, 07/10/2013 - 14:19 | 3738345 tmosley
tmosley's picture

Paper PMs are up despite the escalation of language to "or stop".

Something is very, very wrong here.

Wed, 07/10/2013 - 14:20 | 3738347 digitlman
digitlman's picture


Wed, 07/10/2013 - 14:23 | 3738358 kito
kito's picture

so taper it is...........and the dow is back to green???? and the 10yr is doing not much of anything????????? wow, ben continues to make the cynics look stupid......................i so look forward to housing numbers...............probably be a huge beat....................employment numbers will continue to improve......and i will learn that ive wasted a good chunk of my life on here..............................

Wed, 07/10/2013 - 14:30 | 3738380 Dr. Engali
Dr. Engali's picture

That blue pill is looking pretty damn good right now. It wasn't a total waste for me. At least I got a couple of sandwiches...and a cookie. just got a boner that should make you happy. At least until the Bernank knocks it down after hours.

Wed, 07/10/2013 - 14:32 | 3738401 kito
kito's picture

nice going all in on blue pill crushing fonz.....anybody want to bet that housing prices improve next month? anybody want to bet that snap participation drops by the end of the year? that unemployment will be 6 percent? that the dollar index hits 90?????  come on, i dare you!!!!! all in on the blue pill side..............

Wed, 07/10/2013 - 14:35 | 3738420 fonzannoon
fonzannoon's picture

i've never seen anyone spike the ball on the 40yrd line. the 2 yard line yes. The 40yrd line, not so much. It's amazing.

Wed, 07/10/2013 - 14:38 | 3738427 kito
kito's picture

i tell you who i am.......................


this is me!!!!!!!


i urge you to watch

Wed, 07/10/2013 - 14:41 | 3738438 Dr. Engali
Dr. Engali's picture

LMAO...frustrating isn't it?

Wed, 07/10/2013 - 15:30 | 3738641 Herd Redirectio...
Herd Redirection Committee's picture

Thats the goal, either co-opt or drive insane every rational human being on Earth.

Wed, 07/10/2013 - 15:55 | 3738762 Panafrican Funk...
Panafrican Funktron Robot's picture

Red Pill:

The mirage is strong, but it's still a mirage.

Wed, 07/10/2013 - 14:29 | 3738394 amadeusb4
amadeusb4's picture

I've wasted TWO years. Had I been in a coma and my investments on sheeple autopilot by Vanguard, I would have done quite well. Instead, constant hedging on fundamentals has cost me dearly and probably impacted my health more than the 2 years I've lost wasting time losing money.

Wed, 07/10/2013 - 14:36 | 3738421 kito
kito's picture

exactly!!! to hell with theory and ideology!!!my nest egg wouldve been a whole lot larger if i wasnt preparing for mad max.................... i shouldve kept my index funds when they crashed in 2008.........................i need a trip to the extra tall mocha vanilla frapachino latte............a new car lease!!!!....feels good!!!! im going back to cnbc.....they have been more right than zh................................fuck this doomer shit......................

Wed, 07/10/2013 - 14:41 | 3738439 fonzannoon
fonzannoon's picture

what's with the doomer shit? I'm a blast at parties. I'm sure of it.

I told you kito, we will lose our minds well before anything gives. One by one we will overdose on blue pills, only to realize you are stuck here. This is purgatory, and after it is hell.

Did i mention I was a blast at parties?

Wed, 07/10/2013 - 14:55 | 3738488 walküre
walküre's picture

How do you think the Soviet people felt about their lives? Government was telling them that all was great but everyone on the ground knew their lives were shit and that the government was lying. The cronies lived well and the armies of civil servants and soldiers lived well. The rest of the population lived like dogs. No hope and no opportunity.

It will come to an end when the people who are not benefitting say "fuck it" and develop their own shadow economy where real goods are traded for real currency. The US is well on its way to becoming the socialist hell hole everyone was mocking back in the Seventies and Eighties before the wall came down.

Fed is powerful but Fed can't suspend gravity anymore than Merlin could make gold from hay. Evenutally the King was out of coins.

Wed, 07/10/2013 - 15:05 | 3738526 Duke Dog
Duke Dog's picture

Couldn't have said it better myself.

Wed, 07/10/2013 - 15:35 | 3738661 Herd Redirectio...
Herd Redirection Committee's picture

One of the number one ways to make your money go farther will in the near future be to spend it on the black market.  No sales tax, for one.  But even bartering, exchanging favors, medical service, accounting/bookkeeping, carpentry, either in return for services or for food/other goods.

The govt will of course attempt to deem all this income and take a share.  You will prefer to not have it deemed income. 


Wed, 07/10/2013 - 14:47 | 3738457 fonzannoon
fonzannoon's picture

What's with everyone freaking out wishing for their index funds back?

The trees are shaking I guess.

Wed, 07/10/2013 - 15:13 | 3738568 kito
kito's picture

trees are shaking, but no money is falling from them............thats the problems with the red pill......................

all the ignorant SOB out there who dont bother to research one iota of data are going about their lives fat dumb and happy..with a healthy portfolio..and glad they never listened to my illogical rants.....................and everything that is supposed to happen when ben even hints of tapering, hints of the punchbowl being removed....ISNT FUCKING HAPPENING!!!


Wed, 07/10/2013 - 16:16 | 3738830 Panafrican Funk...
Panafrican Funktron Robot's picture

"and everything that is supposed to happen when ben even hints of tapering, hints of the punchbowl being removed....ISNT FUCKING HAPPENING!!!"

Other than that 100 basis point move in the 10 year?

Also, the credibility of tapering is really not that high right now.  Believe it when you see it, and not a moment sooner.

Wed, 07/10/2013 - 14:37 | 3738397 Duke Dog
Duke Dog's picture

LMAO, Sad but probably true - the fact is that the shit will hit the fan at some point and it will be worse than we can currently imagine, but it may be after I'm dead and gone - at 50 years old currently. The last six years have felt like the previous 20 crammed into the same span of time.

Upon further reflection, I hope I am fvcking dead when it transpires. Between now and then, it will be a spectacular show:)

Wed, 07/10/2013 - 15:36 | 3738670 Herd Redirectio...
Herd Redirection Committee's picture

I hope I see the fall of the House of Rothschild in my time.  Is that too much to ask for?

Wed, 07/10/2013 - 14:59 | 3738504 Peter K
Peter K's picture

How true :)

Wed, 07/10/2013 - 15:10 | 3738553 Never One Roach
Never One Roach's picture


Wed, 07/10/2013 - 14:23 | 3738359 Clowns on Acid
Clowns on Acid's picture

Bernanke is going to give the classic economist speech "On the one hand.., then on the other hand..." "It's all data dependent".....(And the Fed / NSA controls the data)

This has to remind one of Bernie Madoff, its all good untiil it goes Poof !

Wed, 07/10/2013 - 14:23 | 3738362 optimator
optimator's picture

So the little guys left in the market can relax, they'll be able to get out before the FED's insiders do.


Wed, 07/10/2013 - 14:24 | 3738367 IridiumRebel
IridiumRebel's picture

A taper will happen by default and no other way......

Wed, 07/10/2013 - 14:34 | 3738416 semperfi
semperfi's picture

and only after the hyperinflationary blow-off

Wed, 07/10/2013 - 14:25 | 3738369 lakecity55
lakecity55's picture

"The Fed is concerned our scheme of looting America's present and future is not moving fast enough."

"Gold has become irrelevant in today's modern economy, and the Fed will soon put all its gold reserves back into the earth. Our reserves wll be gone as they will no longer be needed. Ft Knox will become a community organizing center."

Wed, 07/10/2013 - 14:25 | 3738373 amadeusb4
amadeusb4's picture

Fed expects at least another 1.7 million people to drop out of the labor pool by 2014. Got it.

Wed, 07/10/2013 - 14:25 | 3738374 thismarketisrigged
thismarketisrigged's picture

The only thing that will bring these markets down are fake tweets, such as the one about obama being hurt a few months ago.


other than that, everything is bullish.



Wed, 07/10/2013 - 16:00 | 3738781 Trampy
Trampy's picture

the most interesting thing about that selloff was how prices returned exactly to where they were prior to the tweet.  in any normal market, stop-running moves the equilibrium point and prices never full revert.

it was surreal, like someone pushed a rewind button and the market went into reverse and was cancelling those trades at the same speed they had been entered.  it wasn't announced that any trades were being cancelled but that's what it looked like.

Wed, 07/10/2013 - 14:26 | 3738381 Black Forest
Black Forest's picture

... we now have a full blown mutiny in the Fed.

Is it sure those four F-16s are going to fly to Egypt? 

Wed, 07/10/2013 - 14:29 | 3738383 debtor of last ...
debtor of last resort's picture

Slowing or stopping, the markets will react in the same way; plunge unlimited. There goes the labor market into the sewer. QE will pop up again like a balloon out of the water. How many months/years will the Tylers be able to get this digital shit on ZH? And how long before i go down together with my metals ? God damn propaganda machine FOMC. Compliments for Tylers for staying polite, day after day.

Wed, 07/10/2013 - 14:31 | 3738402 youngman
youngman's picture

Those guys that bought the 10 years today might feel a little cheesy right now.....but this is good for another 20 emergency speeches to calm things down....all the Fed heads will be out tomorrow saying.."nevermind"

Wed, 07/10/2013 - 14:32 | 3738405 semperfi
semperfi's picture

There's no mutiny. When it gets serious, they have to lie.  And lie big.  All public releases are big lies.  They have never been more in total agreement with each other that they must all perpetuate the lie and baffle the sheeple with bullshit. 

Wed, 07/10/2013 - 14:33 | 3738406 venturen
venturen's picture

I thought thier manadate was to make every single wall street employee a millionaire....of course that will only buy them a loaf of bread...but hey!

Wed, 07/10/2013 - 14:33 | 3738407 1eyedman
1eyedman's picture

word cloud must have messed up the algo reads.....lets watch this sow reverse under 1650 and end the day at 1640.....higher rates will cause greater expenses for all----less marginal liquidity will cause needers of liquidty to they not see whats going on in china, do they not remember how liquidity dried up in subprime lending a year before lehman?    can stocks stay up in a global recession while bonds and commodiites get whacked?  only if they lower margin req's....gotta create more credit!

Wed, 07/10/2013 - 14:39 | 3738431 TheMayor
TheMayor's picture

Just end the nonsense and get out of the WAY!

Wed, 07/10/2013 - 14:41 | 3738437 Its Only Rock N Roll
Its Only Rock N Roll's picture

The Fed is screwed and they know it.  Bond market about to throw another fit and this one will put UST 10yr over 3% & 5yr over 2% 

The banks are begging the Fed to get rates back down and they can't. 

Shitstorm is upon us right here, right now. 

Wed, 07/10/2013 - 14:45 | 3738445 SKY85hawk
SKY85hawk's picture

re: " the Committee would not sell agency mortgagebacked securities (MBS) as part of the normalization process"

Sounds like the fed HAS looked under the sheets of the MBS whore.  All they see is pure CRAP!

Waiting for IGYG to kick in. 

(I'm Gone, You're Gone)

Wed, 07/10/2013 - 15:48 | 3738712 Trampy
Trampy's picture

IBG YBG = i'll be gone, you'll be gone

Wed, 07/10/2013 - 14:45 | 3738446 Hohum
Hohum's picture

To the complainers:  Stop complaining!  We all know that Fed doesn't create wealth.  So what does it do?  It redistributes claims on wealth, primarily through the stock market.  Get on the bus or bet the Fed will fail!  Or, invest in agricultural tools and learn how to use them for a really good return.

Wed, 07/10/2013 - 14:51 | 3738473 nakki
nakki's picture

So now we have 6 good cops and 6 bad cops. Who scripts this chit? What's that old saying "Men make plans, God laughs." Well after watching this shit show God must have pissed Godself by now.

Wed, 07/10/2013 - 14:58 | 3738500 Totentänzerlied
Totentänzerlied's picture

Just like those IMF estimates, "next year, no wait, next year, no wait, next years... Any year now..."

There's no mutiny, as they haven't actually done anything, and no conspiracy to mutiny as they're simply lying for effect: to gauge market reaction and wag the dog (creating expectations). They are totally unaccountable, and this does not constitute some kind of law or contract stipulating we-will-taper-no-matter-what on the 12th of ___.

Jawboning works both ways. Perception management is all they ever really did, anyway.

Wed, 07/10/2013 - 15:12 | 3738566 Peter K
Peter K's picture

The're a bunch of Cub fans. :)

Wed, 07/10/2013 - 15:02 | 3738511 Mr. Crisp
Mr. Crisp's picture

"Fed Announces We're Screwed; Printing To Support Socialism Don't Work..."
"We Tried, We Failed..."
"We Really Feel Sorry For The Children...."
"Ben Says 'Grab Any Job You Can, And Learn To Grow Your Own Food'..."

Wed, 07/10/2013 - 15:04 | 3738520 Smuckers
Smuckers's picture

Brown shoots....taper ON.

Wed, 07/10/2013 - 15:07 | 3738531 involuntarilybirthed
involuntarilybirthed's picture

Imagine a corportation running like this?   Congress, WH, Fed yes as they either spend other peoples money or just create it. 

Wed, 07/10/2013 - 15:20 | 3738598 jtlien
jtlien's picture

Next month they will blindfold one Fed Commitee member and have him or her play pin the tail on the calendar to determine when QE3 ends.


Wed, 07/10/2013 - 15:52 | 3738750 Trampy
Trampy's picture

With ZB solidy taking out the 135 handle that supported it in 2011 and 2012, and no real support at 130 or 128, we could see a ten-handle crash all the way down to 125 in the 30-yr.   The 30-yr auction happens tomorrow at 1 PM EDT.

Flight to safety in treasuries is no longer happening.  CL is on the way to 110 on global stability fears but treasuries keep falling.   Central banks can prop up equity markets but they can't keep long interest rates from rising.

The crash in bonds will end up spilling over to equity markets and maybe then we'll see a rotation into gold.  What other safe haven is there besides CNY?

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