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Fed's Lacker Admits "Asset Bubble" - Reluctant To Pop It

Tyler Durden's picture




 

While we have been told again and again that there are no asset bubbles - although th emost recent FOMC statement referenced concerns over small-cap mulitples and covenant-lite loan issuance - it seems the Fed's Jeff Lacker just let slip some ugly truthfulness...Answering questions after a speech proclaiming growth ahead and rising inflation, he said:

  • *LACKER RELUCTANT FOR FED TO 'PRICK' ASSET-PRICE BUBBLES

Well there it is. There are asset bubbles? But Lacker - who has been anti-QE to some extent - knows that if the Fed moves to actually do anything about it (other than jawbone), it's all over. Perhaps as more realize the transition from a Bernanke Put to a Yellen Collar has occurred, there will be no need to jawbone any longer.

 

But jawbone on they will as open-mouth operations try to persuade investors that strong forward guidance is just as effective as printing 100s of billions of USDs....

  • LACKER SAYS MARKET EXPECTATIONS THAT INTEREST RATES WILL REMAIN LOW MAY
    BE BIGGER DRIVER OF MARKET LIQUIDITY, EQUITY PRICES THAN BOND BUYS

 

Just believe

 

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Fri, 01/10/2014 - 10:58 | 4319311 Cursive
Cursive's picture

Did Lacker and Kocherlakota switch brains?  Oh, wait, they exchanged script writers....

Fri, 01/10/2014 - 10:59 | 4319313 Musashi Miyamoto
Musashi Miyamoto's picture

"LACKER SAYS MARKET EXPECTATIONS THAT INTEREST RATES WILL REMAIN LOW MAY"

3... 2... 1... UnTaper, BitcheZ!

Fri, 01/10/2014 - 10:58 | 4319314 order66
order66's picture

You can hear the fund managers now:

"We need to get out! Quick, queue the eTrade and Scottrade commercials!"

Fri, 01/10/2014 - 10:59 | 4319318 firstdivision
firstdivision's picture

You either prick the bubble, or the bubble will prick you.

Fri, 01/10/2014 - 11:21 | 4319386 Headbanger
Headbanger's picture

It's not a bubble

It's a time bomb about to blow up in their face!

Fri, 01/10/2014 - 11:01 | 4319322 holdbuysell
holdbuysell's picture

They are now down to using language? Mmk. Let's see how that works out for them.

Reminds me of this classic scene:

https://www.youtube.com/watch?v=i33DX9Wjd7E

 

 

Fri, 01/10/2014 - 11:01 | 4319323 Jack of All Trades
Jack of All Trades's picture

The Bernank is a prick

Fri, 01/10/2014 - 11:02 | 4319325 Sabibaby
Sabibaby's picture

If I were the Fed I would let the bubble get bigger and bigger, convince the muppets to put more and more money in, and snap a photo of the bubble right before it pops. I would then make the photo of the bubble a cool poster that says "See, look what I can do!"

Fri, 01/10/2014 - 11:03 | 4319328 rp1
rp1's picture

Lack of prick causes dilemna for the Fed?

Fri, 01/10/2014 - 11:04 | 4319331 Kaiser Sousa
Kaiser Sousa's picture

FUCK LACKER, AND ALL THESE COCK-A- ROACH BITCH ASS MONEYCHANGER SCUM...

DEATH TO ALL BANKERS....

disclaimer: bought some real money yesterday....bye, bye Fed Notes......

Fri, 01/10/2014 - 11:04 | 4319333 Quinvarius
Quinvarius's picture

Too bad interest rates have actually been rising, unless you are a bank doing business with the Fed.

Fri, 01/10/2014 - 11:11 | 4319347 Cognitive Dissonance
Cognitive Dissonance's picture

LACKER SAYS IT TAKES A REAL PRICK TO 'PRICK' AN ASSETT BUBBLE

LACKER SAYS NOT ME, TALK TO YELLEN

Fri, 01/10/2014 - 11:12 | 4319356 SAT 800
SAT 800's picture

Sounds like he had an attack of foot in mouth disease. I'm sure they're not supposed to be mentioning bubbles; part of their standard model is there are no bubbles, and if there are, we can't see them.

Fri, 01/10/2014 - 11:26 | 4319403 bubblemania
bubblemania's picture

Bullish!

Fri, 01/10/2014 - 11:41 | 4319467 insanelysane
insanelysane's picture

So if you look at the Great Depression, you had massive unemployment and a stock market that collapsed.  If you look at the "this time is different" situation today, you have massive unemployment and a stock market that isn't collapsed because of QE.  Now this time is different because in the days of the Great Depression, manual labor was still necessary for a ton of things so the New Deal and a world war put people to work.  That option really isn't available today.  This is also why Jimmy Carter couldn't get elected with unemployment over 7% but O could.  Being unemployed then carried stigma and tough times, nowadays, the unemployed are the new normal in many cities and the tough times come the few days before the EBT card is recharged.

Fri, 01/10/2014 - 11:57 | 4319532 Bunga Bunga
Bunga Bunga's picture

It's just a depression with a lip stick.

Sat, 01/11/2014 - 15:39 | 4323166 papaclop
papaclop's picture

The Fed works for the banksters. The govt is bought and paid for and the US is becoming a third world country. The middle class will become the new poor. Brought to you by the pricks bailed out with your money. You know, the "too big to fail" banksters like JP Morgan, Goldman Sachs, etc. I'd rather support the Mafia than these bankster assholes.

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