Tepper: "Fed Won't Taper For A Long Time", "Generally Speaking Market Will Go Up"

Tyler Durden's picture


Back on May 14, when the S&P was at 1651 or 50 points lower, and when David Tepper made his first book-talking, semi-annual CNBC appearance in which he "blessed the market and awaited the manufacturing renaissance", he made two points about the taper: it's bullish no matter what, namely its removal would mean the economy is improving (we now know it isn't thanks to the Fed and Q4 GDP estimates which are rapidly sliding to 2% or lower), while a taper staying put would mean the Fed would continue pumping stocks higher artificially indefinitely. Today, he did a repeat appearance, in which in addition to the usual market pumping rhetoric, everyone was most interested in how he would spin the recent stunner by the Fed which effectively made the taper a 2014 event. His take: "The Fed won't taper for a long time... So that's definitely sort of going to be a push-up to markets." Couldn't have said it better: but to paraphrase - Taper is bullish no matter what; No Taper is bullish-er.

Because once again, stripping all the rhetorical spin, Tepper once again admitted what even the Treasury has made clear: the stock market is nothing but a causal reflection of the Fed's linearly, and perpetually, growing balance sheet.

Tepper also preaches a 20x PE multiple as his fundamental guideline, which as everyone knows, Fed-induced multiple expansion in an environment in which neither revenues nor earnings are growing, is the only permissive factor for an ongoing market ramp. But why not 30x, or 40x or 50x? After all, since the Fed's balance sheet will hit $5 trillion at the end of December 2014, that implies roughly 2600 on the S&P, or a 26x multiple. Expect this talking point at the next Tepper appearance as he continues to guide his P&L multiples ever higher.

So what is the consensus gospel of which Tepper has become the main spokesman? Why the same one that everyone else, by implication, is so well aware of: the removal of the US default threat. "It looks like they may have a relatively short-term deal, which is going to not create the kind of confidence you might quite like... If you get a big broader budget deal, that would be great and markets could fly." Because it would mean unlimited monetization by the Fed for the indefinite future. His plea to Congress: don't default, but not for us, do it for the average guy. Obviously ignore that people like Tepper would be wiped out. That's completely irrelevant.

It is deep thoughts like these that explain why Tepper is richer than you.

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Tue, 10/15/2013 - 09:35 | 4055560 ejmoosa
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Clueless....that son of a bitch is not looking out for any ordinary, average guy.


Tue, 10/15/2013 - 09:39 | 4055571 hedgeless_horseman
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His take: "The Fed won't taper for a long time... So that's definitely sort of going to be a push-up to markets."

Tue, 10/15/2013 - 09:39 | 4055584 Bearwagon
Bearwagon's picture

Yeah, you are so right, it makes me sick. And if real terms would matter anything at all, I think I'd know. Man, I think I'll just call it a day, anyways.

Tue, 10/15/2013 - 09:43 | 4055590 GetZeeGold
GetZeeGold's picture



So how long do we keep confidence that any of this is worth jack crap?


Faith based is all good until you run out of faith.

Tue, 10/15/2013 - 09:46 | 4055616 Bearwagon
Bearwagon's picture

You ask me of all the people, about confidence? I don't want to dishearten anyone, but confidence has been gone for so long, I can't even remember how that felt. Faith based is good until a majority of other people run out of faith, too. You know, if you studied history, you aren't doomed to repeat it. You are doomed to helplessly stand by watch other people repeat it. And that's about all about that ...

Tue, 10/15/2013 - 10:45 | 4055619 hedgeless_horseman
hedgeless_horseman's picture



how long do we keep confidence that any of this is worth jack crap...?

Most likely a very, very, long time.  Why?  Americans are fucking idiots.  After listening to the first 3 minutes of this  interview, most Americans still will not even think to question why 12 years later we are involved in the longest war in American history, having invaded Afghanistan because a bunch of Saudi Arabians allegedly flew jets into two NY office buildings (recently double insured) owned by a Jew, and three of the buildings were destroyed.*


"I arrested the joyful dancing Israelis."


*Hint: We did not invade a soverign nation, Afghanistan, and are still occupying it after more than 12 years, because a now deceased Saudi Arabian was hiding there.  Did we invade Pakistan when this very same Saudi Arabian was allegedly hiding out there?  No.  That wouldn't make sense, would it?  Allegedly, we sent a SEAL team into the sovereign nation of Pakistan to kill Osama, not capture him, eventhough he was unarmed and out numbered, then we immediately dumped his body into the ocean instead of questioning this terrorist mastermind about future terrorist attacks.

Tue, 10/15/2013 - 10:51 | 4055871 fooshorter
Tue, 10/15/2013 - 09:44 | 4055596 fonzannoon
fonzannoon's picture

This guy Teper is one unbelievable cocksucker, which must have made it really confusing on set with the rest of them too busy trying to suck his to ask him a follow up question or two.

Like when he said if we defaut on our treasury obligations (which in itself was a retarded statement by this bald penis looking man) "everyone's mortgages will go up". I was completely shocked to hear that, because I have a fixed rate mortgage. So this was news to me. Unfortunately no one on there clarified what he meant by "everyone".

What an absolutely horrendous human being.


Tue, 10/15/2013 - 09:49 | 4055618 Cursive
Cursive's picture


Agree with everything you said, but his comments and their lack of follow-up makes complete since when you realize that this is nothing but a PPT/Wall Street/Bankster propaganda channel.  He's basically Goldman's Miley Cyrus.

Tue, 10/15/2013 - 09:52 | 4055634 fonzannoon
fonzannoon's picture

You know what is scary Cursive? I bet there are a few decent baldheaded penis looking men out there who are good people just trying to do the right thing in life. But when the revolution comes and we are out looking for Liesman/Paulson/Tepper etc. there will be a lot of baldheaded guillotine friendly fire.

Tue, 10/15/2013 - 09:57 | 4055659 Cursive
Cursive's picture


Holy shit!  Thanks for laugh.  Made my morning.  Stay thirsty my friend.

Tue, 10/15/2013 - 10:03 | 4055674 Fredo Corleone
Fredo Corleone's picture

"He's basically Goldman's Miley Cyrus."

A twerking Blankfein...indeed, that would present quite the image...

"Banzai ?...Banzai ?...Banzai ?"

Tue, 10/15/2013 - 13:53 | 4056772 PrDtR
PrDtR's picture

Thanks for the clarification.. I was wondering if I was looking at a FACE or an A _S _S .. now if he was twerking it was DEFINITELY an A _S _S !!! 

Tue, 10/15/2013 - 09:55 | 4055648 FL_Conservative
FL_Conservative's picture

Fonz, I wish I could give you +100 for that one.


I hope Tepper keeps BTFD when the market run occurs and is the last one to find an exit.   Fucking low-life, scum-sucking asshole.

Tue, 10/15/2013 - 10:05 | 4055684 Chupacabra-322
Chupacabra-322's picture

Rep. Peter King is my Fucking low-life, scum-sucking asshole.

Tue, 10/15/2013 - 09:57 | 4055651 drchris
drchris's picture

WTF is a moldible? Get the balls out of your mouth Teper! 

Tue, 10/15/2013 - 09:49 | 4055620 yogibear
yogibear's picture

Bernanke, Yellen, Dudley, Evans and Fisher all looking at the idea of going Zimbabwe and keep the QE juice going and increasing until they trigger a currency crisis,

Wall Street loves going Zimbabwe. Keeps stocks on that upward trend.

Tue, 10/15/2013 - 10:07 | 4055691 moneybots
moneybots's picture

Only 4,000,000?  I thought everyone in Zimbabwe was a billionaire.

Tue, 10/15/2013 - 11:01 | 4055930 ATM
ATM's picture

I'm a Trillionaire in Zimbabwe. I have the bank note to prove it.

Tue, 10/15/2013 - 11:02 | 4055935 ElvisDog
ElvisDog's picture

Tepper is full of shit (big surprise). He said the Fed won't taper because of the government shutdown, but the decision not to taper was made weeks before the shutdown occurred. It's stunning (no, maybe not) that those two CNBC hosts don't call him on that.

Tue, 10/15/2013 - 09:38 | 4055574 Stackers
Tue, 10/15/2013 - 09:37 | 4055579 Eireann go Brach
Eireann go Brach's picture

Fugly Fother Mucker! All those billions and you can still not buy a few hairs for your shiny head!

Tue, 10/15/2013 - 11:04 | 4055933 ATM
ATM's picture

Bald is where it's at.

Tue, 10/15/2013 - 11:21 | 4056030 ElvisDog
ElvisDog's picture

See, here's the problem, when you have limited hair loss, you can go the hair restoration route. But when you are totally fucking bald like Tepper, there's nothing you can do. He doesn't have enough hair left to spread out over all that baldness. The only thing he could do would be toupee.

Tue, 10/15/2013 - 09:37 | 4055569 slaughterer
slaughterer's picture

Tepper looks increasingly like he has Down's Syndrome.  

Tue, 10/15/2013 - 11:23 | 4056049 yogibear
yogibear's picture

At least those with Down's Sydrome are sincre and honest. Not a lying low-life like this CNBS lap dog.

Tue, 10/15/2013 - 09:35 | 4055570 Bearwagon
Bearwagon's picture

Generally speaking: What goes up must not come down.

Tue, 10/15/2013 - 09:44 | 4055575 banzai401
banzai401's picture

Why in the FUCK does ZH post this shit? For what purpose? Blogger Fodder? But then why not masturbate before a Kardashian Poster?

The FED is like the Keystone Cop's and his bullet was the QE, and the there is no more Viagra for his gig, ... get over it folks.

When the end comes to AmeriKKKa it will be a whimper.


Yep, .. has there ever been a more clear 'sell' signal, .. I mean don't just sell, but run like fucking hell.

Tue, 10/15/2013 - 09:45 | 4055614 SheepDog-One
SheepDog-One's picture

I also suspect the Fed's 5 years of QE bullshit has run out of steam, I don't care how much they insist it's gonna be bigger and better than ever I think one of these mornings it just implodes.

Tue, 10/15/2013 - 09:52 | 4055626 agent default
agent default's picture

I heard Ben was checking out some helicopters yesterday.

Tue, 10/15/2013 - 09:53 | 4055636 SheepDog-One
SheepDog-One's picture

Big deal, let him drop $20 trillion! So what? Lifetime of everything is now measured in minutes.

Tue, 10/15/2013 - 09:39 | 4055581 401K of Dooom
401K of Dooom's picture

Must..... Clean....... Gunz.......!!!!

Tue, 10/15/2013 - 09:41 | 4055585 the not so migh...
the not so mighty maximiza's picture

for some reason i don't trust this guy 

Tue, 10/15/2013 - 09:41 | 4055587 Blazed
Blazed's picture

Been sayin for some time, no crashy yet, Wi Tu Lo!

Tue, 10/15/2013 - 10:14 | 4055721 optimator
optimator's picture

Crash will come with 'net shutdown, no phone service, and wild, wild algos blocking the exit door.

Tue, 10/15/2013 - 09:47 | 4055588 agent default
agent default's picture

Translation: Forget about soft landing to reality, forget about any landing for that matter, and don't bother bracing yourselves for impact either, because this baby will crash so hard your ass will be wrapped around your neck anyway.  

Tue, 10/15/2013 - 09:42 | 4055589 razorthin
razorthin's picture

Bubble, bubble, toil and trouble!

Tue, 10/15/2013 - 09:47 | 4055621 buzzsaw99
buzzsaw99's picture

Of the ravin'd salt-sea shark,

Root of hemlock digg'd i' the dark,

Liver of blaspheming Jew,

Gall of goat, and slips of yew...

Tue, 10/15/2013 - 09:41 | 4055595 Hulk
Hulk's picture

Tepper: no Taper

Goldman: no gold

Me detects a pattern here...

Tue, 10/15/2013 - 09:53 | 4055631 rationaldemocracy
rationaldemocracy's picture

Zero Hedge: zero credibility

Tue, 10/15/2013 - 10:01 | 4055675 Charles Nelson ...
Charles Nelson Reilly's picture

is that you Taper?  I mean Tepper... or whateva the fuck your name is.

Tue, 10/15/2013 - 10:53 | 4055873 rationaldemocracy
rationaldemocracy's picture

I am afraid that I can't disclose my name here..rules after all..but that does not apply to mister William Banazai does it? I guess one rule for us little people trying to invest rationally and another for them "cucko-clock investors" who are the contributers to ZH  (:


Tue, 10/15/2013 - 10:12 | 4055712 buzzsaw99
buzzsaw99's picture

words from a guy with a bag over his head. lulz lulz lulz

Tue, 10/15/2013 - 10:29 | 4055789 Bearwagon
Bearwagon's picture

I doubt that it's a guy ..

Tue, 10/15/2013 - 10:25 | 4055759 orangegeek
orangegeek's picture

who writes your material?  pure fucking genius.


now go.

Tue, 10/15/2013 - 09:44 | 4055599 Lincolns Mullet
Lincolns Mullet's picture

No tapering because a Cat 4 Typhoon heading directly for Fukushima:  http://www.youtube.com/watch?v=0oj8lQoHuPI&feature=share

Tue, 10/15/2013 - 09:44 | 4055610 GetZeeGold
GetZeeGold's picture




Tue, 10/15/2013 - 10:00 | 4055671 krispkritter
krispkritter's picture

Crap...meet fan.  They're only going to dodge so many bullets.  Problem is, we get to bleed right along with them...

Tue, 10/15/2013 - 09:42 | 4055602 Cursive
Cursive's picture

You know what would be great TV?  If Sara Eisen took her dildo and shoved it up Tepper's ass.  (Not that I'd watch, I'd just like to see Kernan and Quick's reaction)

Tue, 10/15/2013 - 10:08 | 4055703 Tippoo Sultan
Tippoo Sultan's picture

What was that black object nestled between her legs, anyway ?

Smile, baby - you're on candid camera.

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