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Chicago Fed's Evans Unveils Federal Reserve's 2014 Year-End S&P 500 Price Target
Minutes ago, the Chicago Fed's Charlie Evans went dove-retard and tongue-in-cheekly announced that QEternity may have to be increased by 50% in the coming year!
#CharlesLEvans our purchases will continue to be open ended. We may need to purchase 1.5 trillion in assets until January 2015
— ChicagoFed (@ChicagoFed) November 19, 2013
Ignore the fact that the US deficit will be less than half this number in the coming year. More importantly, based on what everyone now knows is the only driver of US equity "market" performance, the Fed is implicitly announcing its 2014-year-end target for the S&P 500 of 2,220 - so BTFATH (because it's the fundamentals that matter).
Of course, the question is what happens when the Fed owns the entire Treasury and MBS market? Obviously, nothing bad. Or maybe something, because recall that currently the Fed is monetizing 0.3% of all 10 year equivalents per week, 15% per year. It currently hold 33% of the bond market. Should it hike QEternity by 50%, it means the Fed will own a ridiculous 57% of the entire bond market in 10Y equivalents on December 31, 2014.
And that is how reserve currency status is lost.
h/t @Not_John_Lohman
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You're in good hands ...
jail that motherfucker for out/in-sider trading!
Finally, some good timing on my part.
I just loaded up on NFLX!!
Cramer would be proud!!
God damn!
I can stick my whole arm in there right up to my elbow without jelly!
haven't had this much fun since the showers at Pelican Bay*
*aka being fucked by criminals
Time to load the boat up on Microcraps!
Notice: No Oligarchs Were Harmed During This Theater of the Absurd Press Release
They can buy my Wayne Newton autographed record collection for $10 billion.
You will notice he said "assets" not "bonds"
Money is an asset, debt is money, lack of money is debt, requires a loan, therefore lack of money is an asset. Capital may be financed by a loan, loan being debt, the loan comprised of money, which is debt (see above). Equity is the transmutation of debt, that you must create more debt to cover the transmutation to equity, thus more debt is more equity.
EDIT: </sarc>
Hang on to your Wayne Newton collection. Your price target may soon be exceeded.
America is a Plutocracy. Plutocrats control the masses.
BTC Target.....99999999^99
Not alot, but still FREE BITCOINS: http://freebitco.in/?r=25727
Let's see...risk on US equities, no foreign buys...hot money flow back in...all other curriencies down...Liquidity dry up...Asia (housing +) bubbles burst...
all assets drop, au+ag up(+ Bitcoin?)
hummmm, too straight forward...
something is stirring !
And let me guess, right after Evans' comments, gold and silver sold off another 1-2%. I mean....that's the way this "market" is supposed to work, right??
Fucking farce.....These assholes are going to print until their fucking eyeballs fall out, but PM's won't get bid.
Yup.
I've been saying it since Yellen's nomination; that bitch is going to do $170 Billion a month straight to Wall Street until Main Street bleeds out - then it will be "no one saw this coming" and bailouts part deux.
The U.S.S.A. has gone full retard, all engines full steam ahead toward the iceberg, no common sense or sanity left.
With a bought off 'press'
And a dumbed down populace, (that parrots what the 'news' tells them, if they pay attention at all) - - -
it seems they can say just about anything they want.
Now don't get me wrong, I don't condon the act of sitting infront of the TV and absorbing eveything displayed as fact. But I do believe it is beneficial to be aware of what they are attempting to portray in the media. I call it an all-inclusive perspective.
You guys make the continued raping of our country bearable. Thanks for the laughs! Simpletons, like me, need everything we can get for free these days.
My tax dollars at work knukles - everyone go long s&p futures. Ride the wave.
Happy Holidays! Courtesy of the US Treasury and Federal Banking system.
Technically, your tax dollars are unneeded. But you still have to pay.
no onion?
Jaw dropping moment:
Senator McCain will not back Yellen for Fed chair.
And I thought we went full retard with QE3.....
And just like that Evans saved or created 4 points on the S&P 500.
Which Instantly saved or created 4,238,944.23 full or part time jobs by the Commerce Department and BLS's very own Sophist and Statistical adjustments.
Never go full dove-retard.
I thought he was the hawk?
At the Fed, they're ALL hawks --- and we're all mice.
Chickenhawk.
Bay of Pigs: " I thought he was the hawk? "
No, they're all vultures and vampire bats.
Hey knuks, you must be doing good, maybe even God's work, because somebody is downvoting each and every one of your posts.
Good job!
LOL
That be da troof, my brother.
I done went an pissed somebody off, poor bugger.
I haven't gotten into somebody's head like that in ages.
And I wasn't even trying!
LOL
Only the elite earn their own personal troll.
1.5 trillion in new print should take Gold down to...let say...$800 an oz?? Yeah, it all makes sense.
Hmmm, if you're going to report all the great moves you make, please also report your mistakes. Otherwise, nobody gives a shit!
Eddie Bernays would get very, very annoyed at that attitude.
That's no way to run a Perceptions Management and Propaganda Media Mechanism
ALLFED, the good bond people. Trillions you can count on...
I've heard some say they think theyre buying more than the stated $85B per month now. They didnt provide any evidence for that claim however. Supposedly from an 'insider'. Who knows.
that's just the soft sell. they will be forced to double QE very quickly in the coming year, then in half the time it took to double the QE it will be doubled again, then half that time... and so forth.
that is the mathematical nature of exponentiality. that is how currency becomes worthless in time.
"Of course, the question is what happens when the Fed owns the entire Treasury and MBS market?"
The US defaults...and finally...finally...we End the Fed?
http://www.youtube.com/watch?v=k2VhB7vaZI0
Don't mean to beat a dead horse - but the Fed is not working alone here...there is massive collusion among the Fed and "foreigners" who have been buying US T debt even faster than the Fed..."foreigners" own a record 50% of all Notes/Bonds / TIPS...the Fed "only" 20%
'00
'08
'13
Ham-bone what happens when the fed owns it all? We just go JGB right?
What's really fascinating is that domestic Treasury ownership (ie, institutional folks) (ex-Fed) has remained about $2.5 T since '00 (+/- .5 T) while Public debt has grown by $9 T...guess who would be destroyed by an equity market crash??? pensions, insurers, etc.).
Almost like if you wanted to destroy the US you would massively in-debt the nation but make sure all future payments (reparation???) only go to foreigners and the Fed??? That is exactly where we are heading??? Like a 30/70 split between the Fed and "foreign" buyers??? While at the same time intra-governmental debt has likely max'ed at about $5 T and will begin to wane...so more interest on debt leaving US to foreigners and less and less interest paid back...less money velocity / money multipliers
If you ever want to get into this ham-bone let me know, we can talk offline. There is a lot to it.
Good points. Minimal effect on GDP and headline numbers. Continuing bleed out of Gross National Income, Cap Ex, and cash flow. Plenty of jobs, since everything is going part-time or temp. No way in hell to earn a living.
To succeed you have to be a government drone, or part of the free shit army.
$1500B / 12 months = QE of $125B a month. That's an increase from the $85B a month, no?
Sounds like someone is really confident about the "recovery."
"Of course, the question is what happens when the Fed owns the entire Treasury and MBS market? Obviously, nothing bad."
Does ZH care to put in a guess as to what happens? Because all I see is the Nikkei and JGB market in our future.
Fonz, seek, ANYBODY.... is this a joke or is it not a joke?
https://twitter.com/ChicagoFed
that is a real tweet. I don't think they have reached the point of being stupid funny like us....yet.
Everything I'm reading in the tweets seems sincere. Completely fucking insane, but sincere.
Cut & pasted:
I honestly don't know what to say to this. It's like they're aliens at this point.
Wow. Just wow.
Now the Fed test-floats new policy on Twitter before they make an official announcement? Did they recently take a meeting with Carl Icahn about this?
Hey Fonz, calling us zhers stupid funny - speak for yourself. I'm just stupid.
Not likely a joke. We are at war with China and Germany and it's geting expensive to fight.
And instead of sending in the drones we send the clowns? Will that work?
Not at war w/ China or Germany...but if I had to guess, there is a war being waged but it is upon the people of the US by the Fed and Foreign elements working together.
If Evans isn't joking, then the only real source of buyers will be "foreigners" as their % of outright ownership of the Treasury stock will continue to climb from present 50% record of all 1yr plus debt to who knows...and then any interest rate shock and interest payments leaves the US w/ little to no money velocity...this is so reminicent of Germany's WW 1 treatment and reparations at the wars end...I seem to recall that didn't work out well
List of vague terms: 'We' , "China', 'Germany'
I know this gal from China who owns a restaurant, Met a guy who owns a beer brewery in Montana who came from Germany. I like the Chinese food and the micro-brew beer - and aren't in any kinda 'war' with either of them.
The Onion has now been joined on to the Fed Reserve board of directors.
I'm with you, seek. What am I missing? Is he serious or joking? Tylers say he's joking, but damn, what if somehow you missed it being a joke?? I sure did. This looks like Icahn-esque Twitter-guidance to me.
wait is this real or a joke?
You mean my comment or theirs? Really, the answer is the same in either case: "I.... I.... I just don't know."
Well, the biggest tool they have is jawboning. If it is joke, it is a bad one.
http://en.wikipedia.org/wiki/Poe%27s_law
Yeah, really. Which is exactly why you DON'T do stuff like this when you're a damned Fed Governor.
That's 40 LARGE right into Chinese banks. Problem solved.
Move along folks, there's nothing to see here.
Exactly, that $1.5 trillion is code for "We're gonna double down on QE. What's tapering again?"
Not counting Jan 2015 I get 13.5 months or $111 billion / month, which is a 31% increase.
Regardless, these guys need to be stopped, but barring that the best we can do is to take advantage of QEAbsurdity.
Evans can draw a straight line? Remarkably!
MOTHERFUCKER!.........The markets might not break......but the US Societal Fabric will be shreaded!!!!
DUMB FUCKS.....the Wealth Effect only works when there is VELOCITY and DEMAND!
Economic distortions/manipulations,HOPE, TALK, and LIES WILL NOT allow a functioning Economy!
Well said.
What?! Where are they going to get the money to buy those assets? Surely the cant just buy assets with a promise and a prayer.
I will address this in tomorrows noon prayer to The Tooth Fairy.
Over.
Makes you wonder, were does the Tooth fairy get his money?
Bernanke's keyboard.
Somebody call Hitler and see how this turns out
I'm keeping my mouth shut.
Please join us at our noon services. (eastern time)
Over.
1.5 trln would buy 2 bln Bitcoins, but wait there are only 12 mln in circulation.
time to sell usd
to who?
Depending on the discount, I'll fucking buy 'em.
Over.
What happened to tapering? Did I miss something? Must have overslept.
Stop listening to that crap.
Imagine what would happen if there was real tapering!
This last cluster-fuck was all about just bringing the topic up
centerline - about the tapering:
I checked this morning after the sit-down, and there is NO TAPER.
Bloody shorts, though.
Open ended policy. That sounds promising. It really means they don't know what the fuck to do and have lost control.
Can someone tell me how bad the boogie man is to make these clowns go all in on buying every market just so they dont go down in flames...derivatives? Bond rate risk? Federal Free shit army? Race wars? 80% umemployment? Cancelation of all Boeing plane orders? Bank runs.....
Oh this is just a final push for the Dems to win the house in 2014 and then Barry can become President for life...I got it now. ..thanks
Is this a joke??? Anyone?
Behold trickle down economics.
Stuff money into the hands of the super rich who can then buy everything and push up the prices in the process.
The rich (first receivers) get to purchase everything before the inflation picks up. By the time the money trickles down to the poor inflation has already ripped across the board and the purchasing power of the extra money is totally neutralised or net negative.
This is how capital skims labour via cycles of credit expansion.
you mean this is how you remove capitalism completely.
Centralized money-printing & colluding to the top-most non-government FROM government is precisely & exactly anti-capitalism.
The point IS to lose reserve currency status. See www.WOCU.com - Rothchild funded designed by Mike Blakley who was part of putting the Euro design together. The Euro was his practice work the WOCU is the real deal.
HOLD ON EVERYONE: it may be possible you've misinterpreted what he said. He may have meant $1.5 Trillion in total until Jan 2015, and not an additional $1.5 T. The fed has already bought $1.1 T in the last 13 months with another $100 B on tap for the remainder of 2013. $1.2 T total. If they plan to buy only $1.5 trillion, it would leave $300 billion to buy in all of calendar 2014. If you reduced QE by $7 to $10 Billion every month starting in Jan 2014, it would get you to $300 billion and reduce QE to zero by Jan 2015. Just sayin'.
85. 75. 65. 55. 45. 35. 25. 15. 5 = 405
Taper faster...
I think they're just thinking about the 45b-part anyway.
You are correct +1
Crap! Thanks for the reminder... forgot to BUYBUYBUYTFAH
Not a joke, definitely noy funny. It's more a You've gotta be kidding"!!
https://twitter.com/ChicagoFed
Bullish for Bitcoin. But of course not Gold or Silver.
<<<Still kind of shocked with such blatant ignorance from the FED!!!
DO these people understand that they are LITERALLY SIGNING THEIR DEATH WARRANT!!! This WILL BREAK THE STATUS QUO!
Fink, Icahn, Tepper, Bernanke, Fed, Treasury, Dimon, Blankfein, Faber, Kernen, Bartiromo, Pisani,..ANY public face of this decline will be in danger from the ANGRY MASSES!
uhmmm. He clearly said until total purchases reach 1.5trillion. Why is everyone here assuming that means 1.5 trillion for 2014?
Like I been saying.....Wi Tu Lo, no crashy yet.
lalala la la la lalala la la la
Gonna ask my two year old if she agrees.
These ignorant fools will taper when Obama starts telling the truth.
If the Federal Reserve has proved anything in their century-long reign it is that they are HORRENDOUS at timing anything. It is in their very nature to be REACTIVE, impossilbe to be PROACTIVE. More bond buying? Sweet, load up the DOW to 30K. If the stock market rising exponentially is correlated to the real numbers of the economy and our populace, 200 million Americans will be on food stamps, only Congress will have health insurance, the 'middle class' will be (is already?) a distant memory and JPMorgan will never lose money trading in a year. Oh wait....
Hell of a recovery.
Well that is a shot across the bow....but nothing happened...I bet Yellens pants got wet though....this is where the "faith" in that ole piece of fiat gets tested....I personally do not want to hold to many of them.....I smell a Weinmar Republic event a comin...got a wheelbarrow...can you have hyperinflation when the Fed owns everything??????
a more recent post:
ChicagoFed @ChicagoFed1h#CharlesLEvans I look forward to the day when we can begin to unwind.
Hey, me too Chuck.
But we are both old farts and won't live long enough to see that day.
WTF!!!!!!!!!!!!!!!
O_0
This must be a bot putting out propaganda, it could not be someone really believing this line... He is probably off at a three martini lunch.
http://www.marketwatch.com/story/yellen-defends-qe3-in-letters-to-senators-2013-11-19-1391598
WASHINGTON (MarketWatch) -- A "strong majority" on the Federal Reserve's policy-setting committee believes that the central bank's unprecedented asset purchase programs have been effective, said Janet Yellen, President Barack Obama's nominee to be the first chairwoman of the central bank. In response to a written question from Sen. David Vitter, a Louisiana Republican, Yellen said the benefits of asset purchases continue to outweigh the costs. The letters were released on Tuesday. Yellen repeated the Fed's statement that asset purchases are "not on a preset course" and the decision on whether to reduce the pace of the purchases will remain contingent on the economic outlook and the Fed's assessment of the costs and benefits. In a separate letter to Sen. Elizabeth Warren, a Democrat from Massachusetts, Yellen said that Fed policy would likely remain very easy for a long time after the unemployment rate falls below the central bank's 6.5% interest rate hike threshold.
They should target the 5 year note to be 6.5%. ..dumbfuckers
Lessee - it costs a zillion dollars.
It benefits the 1%.
Good enough!
In other news, it was discovered that Janet Yellen was the secret love child of Captain Kangaroo.
That was a typo, a later corrected version mentions Yellen being the daughter of a particularly protracted love making session between (daryl Dragon) aka the Captain and a live Kangaroo of the female persuasion.
She also has a half brother who is a Monkee's ass from when the Captain met Cheetah. what is it with these musicians and sex with animals? How many brain dead economists do they have to bring into the world before they realize interspecies love isn't just against the law, its also a bad idea?
Janet's going to be on the billion Dollar bill, and her cooters going to be on the twenty.
The Billion will get you a loaf of bread and the twenty will start a nice warm fire in the burner barrel outside your shack in the Hobo camp, named after Bernanke, Bernanke's Bum Rush.
all tramps welcome except bankers and thieves (but we are redundant aren't we?)
This is easy as pie to solve, create another entity to buy the Feds paper. Maybe call it the Bank of Oz or the Intergallatic Reserve Bank of the Milky Way. I have plenty f Liberal friends who would think this would be "great" ideas.
With him and Yellen in charge, rest assured that the economy will stay broken for years to come.
Evans is in charge of the Chicago Fed, we all know how Chicago and it's political economy works.
Evans is member of the Zimbabwe currency club. Just like Yellen and Dudley.
Only thing that stops the fed is a free-fall of the US dollar
It's coming.
Asia will dump once Japan/China go to war.
The Fed will go ballistic, America will hyper-inflate and will will have global all out war. The Fed should have been dismantled in early 2000.
$ 1 Trillion a month CMON, PLAY ROUGH? Fed. come and say hallo to my LEETLE FRIEND. the WEIMAR PRESS.
OK http://youtu.be/g2wD5TaMf2k
The Fed punmping $1Trillion/month should be no surprise some time in the future.
And yet you have BloombergPUfferFish like Ritholtz harumphing around about how the dollar is in excellent shape!!
http://www.ritholtz.com/blog/2013/11/has-the-dollar-really-lost-97-of-it...
The comments are simply priceless.
I've long since been banned from his puffery parade of a blog....but please fellow ZH brethren....consider this an invitation to educate at will.
Cheers....and Bon' Appetit!
This is so commie coming from their warped academic brains. To reach those targets Yelland and co will need to buy up the whole short end market, which I think they will do, like Japan.
Great plan egg heads, create a safe haven in stocks and hope Wall Street speculation/crony/greed bubble doesn't sink the world.
hahahahahahaha
What people are missig is
China announces yesterday move to part floating currency .. now FED evans talking about buying more.. is this not releated (ie Chinese will see US/Yen assets to move back to Won a head of flexiable exchange rate.. (to protect against exepcted appreciation-
http://www.youtube.com/watch?v=u_DtGcwN_Fs
no condoms allowed
Well, pile in suckers this has long ago become a spectator sport for me.
Damn, seems a lot like Rome.
me thinks Rome will look like practice by the time this is done
"We may need to purchase 1.5 trillion in assets until January 2015"
LMFAO, that statement pretty much sums up the "recovery"... hedge according.
Welcome to"Weekend AT Bernanke's II - The Golden Years" where Ben and Timmy drag around a dead economy and try to convince everybody its alive by pumping trillions in USD into a corpse: " see it twitched, I told you its alive!!!"
is that gangrene or did someone just pinch an Obama? Really, Take the economy, puhllease take the economy, no seriously us bankers don't get no respects. If it wasn't for bankers there wouldn't be ATM machines..Sure seriously we stole the idea from Coca-Cola and just swapped cash for sugar water and instead of putting cash in you takes it out but it was laid out in da patent.
anyhow try the salmon and make sure to take a couple of stacks of hundreds when youse leave, we can't even burn that shit up anymore we got so many of them damn uncounterfeitable Ben Franklin's were givin em away. Puhleasssseeee.
Listen to me, no one stops printing until we have a warehouse full of shoes from J.C. Penney on the balance sheet.
Janet (from another planet).
It can't end because there is no alternative. It only hurts the poor undeveloped countries or about 3 billion people because all developed countries are doing the same thing (competitive currency devaluation). It can't end because its help the .0001% and powerful. It can't end because we are lazy and entitled. It will not end until the poor get more powerful weapons.
Hell by the time Zimmerman gets done in FLorida we won't even be able to buy a cap gun. Which brings up another wonderment, how did he find another girl friend.
HE corrected his remark and meant 1.5 trillion from the beginning of this year.
Send Jamie Dimon, Loyd Blankfein, Ben Bernanke and Janet Yellen to Vietnam.
Better yet, let's send them all to a burning hell of our choosing.