Bill Fleckenstein Blasts "The Price Of Everything Is Out Of Whack"

Tyler Durden's picture


"People are, once again, being fooled," fears Bill Fleckenstein in this brief CNBC clip, warning that investors buying into the stock market at all-time highs here are making a grave error. Investors are ignoring fundamentals at their peril, "in the stock mania in 1999, people were bullish because stocks were going up. In 2007, people were bullish because stocks and real estate were going up. They didn't look ask - Why are they going up? Is this sustainable? Is this healthy? - and in both cases, it was not." In the current environment, the bubble Fleckenstein points to is powered not by tech stocks or real estate, but by the Fed's quantitative easing program. But, he warns, the Fed is losing control of one key market...



"Now we have the Fed suppressing the bond market such that rates are ridiculously low, and capital is being misallocated everywhere, and the price of nearly everything is out of whack," Fleckenstein said.

But he says the Fed is starting to lose control already - meaning that stocks could crack even if the Fed continues to buy $85 billion worth of assets each month.

"Interest rates on the 10-year bonds have risen 100 basis points since last spring, and there's still no tapering," Fleckenstein noted.

"So why have bond rates risen? I think the Fed is no longer able to dictate where the bond market is going to trade. If that's the case - and I say 'if' - then the game is going to change prospectively, because if the Fed loses control of the bond market, it's not going to be able to have unilateral say in where assets trade."
Specifically, Fleckenstein is watching the 3-percent level on the 10-year yield very closely.

"If the bond market trades through 3 percent in the absence of some superstrong economic data or an actual tapering, then it will be clear that something is radically different," Fleckenstein said.

So once things do change, how low can the market go?

Without getting specific, Fleckenstein said the stocks will head "a lot lower, and enough lower to make people really unhappy."


Via CNBC Futures Now

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Fri, 11/08/2013 - 19:53 | 4137189 max2205
max2205's picture

30 yr almost at 4% has got to help.....

Fri, 11/08/2013 - 19:57 | 4137206 Fredo Corleone
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Astonishing that CNBC would even have Fleck back on their 'Street propagandist network.

Fri, 11/08/2013 - 20:00 | 4137218 gmrpeabody
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Token party pooper...

Fri, 11/08/2013 - 20:09 | 4137241 Ahmeexnal
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Russian hacker cracks open Yomommacare website security and steals all information on those who signed up:

Fri, 11/08/2013 - 20:14 | 4137252 chumbawamba
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God damn, Bill's hair is the very definition of sexy.

I am Chumbawamba.

Fri, 11/08/2013 - 20:20 | 4137264 gmrpeabody
gmrpeabody's picture

Chumba..., is there a little jealousy there?

Fri, 11/08/2013 - 20:35 | 4137305 Wyatt Junker
Wyatt Junker's picture


Fri, 11/08/2013 - 21:06 | 4137394 kaiserhoff
kaiserhoff's picture

Screw the markets.  How does that old man grow so much hair.  There's a fortune in that Dad gum elixer.  Leroy, get a tweet out to that pilgrim, mondo pronto.  Time's a wastin.


Fri, 11/08/2013 - 21:39 | 4137453 Harbanger
Harbanger's picture

Interesting.  In battle, fighting with long hair usually means you're going to end up being dragged around like a bitch by your opponent.

Fri, 11/08/2013 - 21:51 | 4137483 Manthong
Manthong's picture

I like Bill..

but I also would not mind being in combat with a guy with flowing locks or better yet, dreadlocks or a pony tail.

..more to grab on to and lever with gravity. 

Fri, 11/08/2013 - 22:07 | 4137532 Harbanger
Harbanger's picture

"..more to grab on to and lever with gravity. "  I see, like something to grab on to and get ahead of when you have to run for your life.

Fri, 11/08/2013 - 23:43 | 4137743 markmotive
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Catchup via hyperinflation?

Some seem to think so.

Sat, 11/09/2013 - 00:16 | 4137806 NoDebt
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I got it.  I know where I've seen this guy before.  John Travolta from the 'Welcome Back Kotter' days.

Sat, 11/09/2013 - 00:23 | 4137822 Manthong
Manthong's picture

Bill is cool.. read his book.. "Greenspan's Bubbles'..

lots of interviews on KWN.. always a solid perspective..

evidently, he closed his short in 2009.. I wish I knew what he did back then.

..but now, we all know what he knew then..........

Sat, 11/09/2013 - 00:36 | 4137838 fonestar
fonestar's picture

Bill Fleckenstein has always been one of my favourite interviews to listen to on KWN.

Sat, 11/09/2013 - 00:55 | 4137868 Manthong
Manthong's picture

Fleck, Grant, Turk, Sprott, Williams, Kaye, Roberts, Maguire et al…..

So much sanity, it enough to make a guy go stark, raving Celente.

(Um.. Gerald .. just creating some contrast - luv you ,too)

Sat, 11/09/2013 - 01:31 | 4137874 Manthong
Manthong's picture

You gotta' love the disclaimers at the end..

Flee!  Flee! ...  run for your lives! ...


..i agree.. it is time to run

Sat, 11/09/2013 - 01:35 | 4137913 Manthong
Manthong's picture

so what about "unhappy" do people not understand??

Sat, 11/09/2013 - 07:13 | 4138080 Supernova Born
Supernova Born's picture

He should say he'd cut his hair if he is wrong.

It would give him more credibility than a zealot swearing on their religion.

Sat, 11/09/2013 - 11:25 | 4138318 Abi Normal
Abi Normal's picture

He's just another talking piehole, they are guessing at what will happen, aren't you all?  Who can figure this shit out with math or charts?  Nobody can, it is THAT FUCKED UP!

We may never see sanity again, that is a sad thing to think about.

Love me some Schiff logic, and a Celente rant every now and then.  This guy looks like Vinny Barbarino, not saying he is wrong though, hardly, he seems to have something there.

Sat, 11/09/2013 - 14:33 | 4138704 Manthong
Manthong's picture

yeah,,  but give the guy credit.. he admits to the unknowing time frame and the inevitable consequences.

We are all bozo’s on this bus waiting for the next stop.  


Sat, 11/09/2013 - 15:56 | 4138889 daveO
daveO's picture

He knows what he's talking about. I've read his stuff for over 10 years. He was predicting the housing collapse years ahead of others. He saved me tens of thousands of $.

Sat, 11/09/2013 - 02:22 | 4137949 garypaul
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Good choice with Fleckenstein. Also Art Cashin is respectable and I also listen to Pento, Eveliard and that Franco-Nevada guy. Please let me point out that the others, and the KWN site overall, are a bunch of pumpers. Guys like Turk and Sprott and Embry are sane but they talk their book so you have to be careful. The others, especially that "Whistler's Mother blower" Macguire is full of S***.

Sat, 11/09/2013 - 02:41 | 4137966 Lost My Shorts
Lost My Shorts's picture

Long hair care products.  Bear he might be, but he is definitely supporting the economy.  I bet CNBC has to bring in an extra hairdresser every time he drops by for an interview.

Sat, 11/09/2013 - 00:00 | 4137774 HulkHogan
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In the ring I lift my opponents off the mat by their hair.

Sat, 11/09/2013 - 10:23 | 4138218 GMadScientist
GMadScientist's picture

Juiced up homo-eroticism at best.

Sat, 11/09/2013 - 06:24 | 4138048 RSloane
RSloane's picture

I regret to inform all of you that its not just his hair.

Fri, 11/08/2013 - 21:44 | 4137468 NotApplicable
NotApplicable's picture

True bromance?

Fri, 11/08/2013 - 23:57 | 4137767 HulkHogan
HulkHogan's picture

I'm going bald. Wish the FED could QE on my cranium.

Sat, 11/09/2013 - 01:21 | 4137888 LetThemEatRand
LetThemEatRand's picture

Going bald is a choice.  I have hair.  My parents and their parents had hair before I was even born and I have hair now, therefore everyone who does not have hair must be defective or otherwise lesser.   Just try harder.   

Sat, 11/09/2013 - 10:24 | 4138220 GMadScientist
GMadScientist's picture

The Ayn Rand Hair Club for Women.

Sat, 11/09/2013 - 20:17 | 4139393 prains
prains's picture

LOL! LTER, very high brow humour excuse the pun.....pretty sure i played against this guy in an Okotoks Junior 'B' game circa 1977. He like to toe drag and go top shelf so i caved in his face with my Sherwood on a dangle to his feet. It appears he went into American economics after that.....fucking pussy, seems to be a lot of those types assembled there

Sat, 11/09/2013 - 06:56 | 4138064 Gringo Viejo
Gringo Viejo's picture

Nice hair. But he looks like Huey Lewis' mildly retarded brother.

Fri, 11/08/2013 - 21:38 | 4137461 uncle.bigs
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That hair looks terrible.  Looks like he's stuck in 1981 at a Van Halen concert.

Fri, 11/08/2013 - 22:00 | 4137495 Manthong
Manthong's picture

what are you.. some kind of commie???   :-)

 (I would love to be back there knowing that it will take at least 30 years for it to all go to hell.)

Sat, 11/09/2013 - 00:09 | 4137791 NoDebt
NoDebt's picture

You say that like we don't have 30 more years of this BS left to go.

Sat, 11/09/2013 - 10:58 | 4138268 Manthong
Manthong's picture

Oy...  (and I'm not even Jewish) ..

Let's see... 100 years into this currency regime.. most others in history had a hard time making it past 50..

Dollar has less than a couple percent of it original purchasing power.. dot guv is insane CF.. 

- I'd say it will have a hard time hanging in there that long. 

Sat, 11/09/2013 - 00:49 | 4137858 mumbo_jumbo
mumbo_jumbo's picture

as opposed to what?? follow the flavor of the week and be "in style"

real men have their own style and could care less about trying to be with the "in crowd" or look in style, that always reminds me of my sisters LOL


Sat, 11/09/2013 - 15:06 | 4138728 Manthong
Manthong's picture

:-D  -LOL when you know that the "Conan the Barbarian" look will be back in vogue soon. much for the little girl??  

and.. how many here have dined at Chez Paul on the near north in Chicago..

and.. how many have had a joy ride in a '67 Monaco fleeing from the cops?

..a true story that should be told.  maybe someone will drag it out of me.

Fri, 11/08/2013 - 20:15 | 4137255 Jendrzejczyk
Jendrzejczyk's picture

Both of them?


Holy crap!

Fri, 11/08/2013 - 20:23 | 4137271 Harbanger
Harbanger's picture

So what did they steal? Maybe there's some politican's boy lover with aids who signed up.

Fri, 11/08/2013 - 20:36 | 4137308 gmrpeabody
gmrpeabody's picture

Except that no politician would ever sign up, nor must they.

It's only for sheep.

Fri, 11/08/2013 - 21:24 | 4137329 Harbanger
Harbanger's picture

I said, some politican's boy lover with aids must have signed up.  There's always a juicy story if you know what to look for on a short list.

Fri, 11/08/2013 - 23:35 | 4137724 MrPoopypants
MrPoopypants's picture

Sorcha Faal is notorious disinfo. Occasionally there are interesting sources, but beware.

Sat, 11/09/2013 - 20:06 | 4139372 SokPOTUS
SokPOTUS's picture

Yeah....except Alexsey Belan was added to the FBI's Cyber Most Wanted *yesterday*.

Sat, 11/09/2013 - 07:10 | 4138077 Truthseeker2
Truthseeker2's picture

"Global Financial And Trading Platforms On System OVERLOAD"

"The global financial and trading platforms have become overloaded by the competing demands and overwhelmed with fierce competition among too many players at the top of the Pyramid (as in scheme). The top 1% are now playing a very serious game, the skirmishes of which have broken out into the open as never before."


Sat, 11/09/2013 - 11:15 | 4138300 czardas
czardas's picture

"Astonishing that CNBC would even have Fleck back on their 'Street propagandist network."

Unlike many, I don't get all that excited by CNBC.  I don't have the time or energy to go stark-raving mad over TV folks I don't know.  I like the news and some commentators since they do, unlike the MSM, give contrarians a chance to gab for a while.  Of course it's their job to push securities and sweet talk the economy. They've done a pretty good job if the stock market is any indication although as has been said repeatedly, when adjusted for inflation it's not that much higher.  It's like comparing movie ticket sales of $3 movies in 1980 to $13 in 2013.

Sat, 11/09/2013 - 13:14 | 4138513 Nobody For President
Nobody For President's picture

CNBC mandates 1% reality check as fair offset to their 99% cheerleader squad.

Has to have long hair to offset suit and tie - who the fuck is gonna pay any attention to a cross-over hippy?


Fri, 11/08/2013 - 19:53 | 4137191 Sufiy
Sufiy's picture

Gold Miners Are Ready For A Launch

  We have the very interesting action today in Gold and Gold Miners. With Gold hammered down on the bad news for the sector: "very strong payroll numbers" - which should imply Taper Impulsive Disorder again - Gold miners refused to sell off and made the reversal with many names closing Up for the day. It will be important this time to see for how long Gold will stay below $1300 again. This kind of diversion in Gold and Gold Miners is the very good sign, when Gold Miners are leading the Gold prices Up.

Fri, 11/08/2013 - 20:02 | 4137222 gmrpeabody
gmrpeabody's picture

The train is leaving the station...

To the moon, baby...

Wake me when it re-coops $1500

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