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Larry Fink Warns There Is "Way Too Much Optimism", We Are Headed For "Much Greater Volatility"

Tyler Durden's picture




 

What a difference half a year makes. It seems like it was yesterday when Blackrock head Larry Fink, when discussing the future of capital markets with the now defunct money honey, uttered these infamous words about any and all possible risks: "it doesn't matter."

Suddenly, it matters.

Speaking in Davos, Fink warned there is 'way too much optimism' in financial markets as he predicted repeats of the market turmoil that roiled investors this week.

As Bloomberg reports, Fink warned a Davos panel that "the experience of the marketplace this past week is going to be indicative of this entire year... We’re going to be in a world of much greater volatility."

Some other notable soundbites:

Fink’s outlook challenged the relatively upbeat tone struck by others during the four-day gathering in the Swiss Alps, which began after the International Monetary Fund predicted the strongest world economic expansion since 2011. The meetings of the past seven years were clouded by jitters about financial crisis in the U.S. and Europe.

 

While Fink agreed “the overall trend is going to be fine,” he predicted “quite a bit of disruption” and said the onus was now on governments to work to improve economies.

 

That troubles me, as there has been great consistency of dragging their feet by politicians,” he said. “The marketplace has been rather encouraged by good, consistent monetary policy across the world.” “It would be very abnormal if we didn’t have consolidating moves in the assets that have gone up so much,” he said.

And while it appears lost on Fink that the only reason politicians have been dragging their feet is precisely due to central banker money printing policies which have allowed elected representative to do absolutely nothing while reaping the benefits of rising or stable popularity ratings thanks to all time stock market highs, at least we know how the world's largest asset manager is positioned.

That said, it would be very ironic if the Davos billionaires really did follow through on their promise of eliminating inequality... by destroying the financial wealth of the uber-wealthy.

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Sun, 01/26/2014 - 12:21 | 4368372 Fips_OnTheSpot
Fips_OnTheSpot's picture

http://www.weforum.org/sessions/summary/global-economic-outlook-2014

 

Fink after 48min -- and the "RESET!" of Lagarde between 9min and 11min is interesting, too

Sun, 01/26/2014 - 12:24 | 4368385 LetThemEatRand
LetThemEatRand's picture

Has anyone ever seen Lagarde and George Hamilton in the same place at the same time?

Sun, 01/26/2014 - 12:29 | 4368394 MsCreant
MsCreant's picture

Orange you glad you said that?

Sun, 01/26/2014 - 12:53 | 4368438 Oh regional Indian
Oh regional Indian's picture

I think he's willing to black up his statement.

That said, too funny, these names. Fink...

How can you trust a fink?

Eh/

ori

 

Sun, 01/26/2014 - 13:29 | 4368497 jbvtme
jbvtme's picture

with all that money, you'd think he would have changed his last name by now

Sun, 01/26/2014 - 14:02 | 4368559 Oh regional Indian
Oh regional Indian's picture

Yes, like a lie-bovitz who turned into a stewart....magic....

Sun, 01/26/2014 - 14:12 | 4368586 TruthInSunshine
TruthInSunshine's picture

Larry Fuckin' Fink, the clairvoyant.

He'll next tell us that things get wet when it rains.

Sun, 01/26/2014 - 15:04 | 4368738 WarriorClass
WarriorClass's picture

Diversity:

Eventually, Americans will realize that we haven’t had a representative government since 1860, when big business got Lincoln into office and then declared war on the States. Free market capitalism died at the same time, we just didn’t realize it until 1913 when the Bankster cartel formally took over the Federal monopoly on power and money. We’ve had a fascist dictatorship since then and your vote has meant exactly squat. The only way to return to a Jeffersonian Representative Republic is the way our Founders did it in 1775.

Eventually, when Americans find that every person in the world is entitled to a job in the USA, except for them – all in the name of diversity. When they find themselves a dirt poor minority in the country their fathers founded. When they find out that diversity is not THEIR strength, but the strength of their enemies.

Eventually, but not today. Today many Americans will go to work at their corporate jobs chanting the mantra, “Diversity is our strength;” until it isn’t.

And it’s too late.

 

Supply and Demand:

The law of supply and demand dictates that an increase in supply results in a lower price.

An increase in the supply of labor, results in lower wages.

If you want to cut wages in half, double the workforce.

Almost half of the US population is here due to the Immigration Reform Act of 1965 and its subsequent iterations. Add to that the massive amount of work visas, student visas, and refugee visas, and you have doubled the labor market.

Comprende?

http://americandictators.blogspot.com/2013/07/legal-immigration-and-immi...

Sun, 01/26/2014 - 19:49 | 4369414 caShOnlY
caShOnlY's picture

Larry Fuckin' Fink, the clairvoyant.

He'll next tell us that things get wet when it rains.

I notice the same mantra in many "talkers".  I remember John Mauldon talking up US oil production and stating by 2020 the US would lead the world. 

Fink is clearly lying.  He has tried to anchor himself comfortably in the chair but his hands are flailing to release his nervous energy.  He even hits the microphone as he spews his shit to the audience.  Watch his eyes they are looking all over the place in jagged abrubt movements while rarely looking at the crowd. 

They cannot admit that the ol' king consumer states is dead.  He died in 2008 and monthly pumps of adrenaline are needed to keep the body twitching.  Admission is a death kiss on the dollar.   China is slowly pulling the gold game away from W.ST and the FED.  Then the petrodollar will be the next target.  

Sun, 01/26/2014 - 14:15 | 4368588 Tim_
Tim_'s picture

Laurence Douglas "Larry" Fink is a jew.

Sun, 01/26/2014 - 17:50 | 4369137 Ratscam
Ratscam's picture

who cares if he is jewish, muslim, christian, buddhist, hindu or any other religion.
I found it easier to judge people by what they do for society, rather than what their race is or what they believe in.
Fink,s score on working for the benefit of society is rather low.

Sun, 01/26/2014 - 16:35 | 4368396 BoNeSxxx
BoNeSxxx's picture

"That said, it would be very ironic if the Davos billionaires really did follow through on their promise of eliminating inequality... by destroying the financial wealth of the uber-wealthy."

No.  What would be very ironic would be if they stuck themselves with pitchforks before hanging themselves from lamp posts.

Sun, 01/26/2014 - 17:16 | 4369072 Offthebeach
Offthebeach's picture

Kill, drug, war, hollywood depress suicide off, de-future the young so they don't have kids, cop murder, imprison the entire bottom 2/5ths.

No need to harm the 1% ers, just get rid of the "little people", you know, losers, white trash, dreadful minorities, annoying small shopkeepers, constitutional crackpots and so forth.
/s

Sun, 01/26/2014 - 12:35 | 4368411 Hulk
Hulk's picture

Ah, the smell of Leather on Leather !!!

Sun, 01/26/2014 - 12:55 | 4368439 El Vaquero
Sun, 01/26/2014 - 13:38 | 4368511 Yancey Ward
Yancey Ward's picture

You could make a fine pair of boots out of either of them.

Sun, 01/26/2014 - 13:49 | 4368531 gwar5
gwar5's picture

I'm either wearing Gator goggles or that was Christine Lagarde.

Sun, 01/26/2014 - 12:33 | 4368402 CPL
CPL's picture

What's interesting is the large heavy armour division rolling out of Austria.

http://www.youtube.com/watch?v=mb5EfF12v3g

Sun, 01/26/2014 - 12:48 | 4368432 Mrs. Cog
Mrs. Cog's picture

Nice find. I suppose it would be overly optimistic to hope they were making the seven hour drive to invade Davos?

Sun, 01/26/2014 - 12:54 | 4368437 stant
stant's picture

That's alot of heavy equipment

Sun, 01/26/2014 - 13:08 | 4368451 MrPalladium
MrPalladium's picture

Mostly self propelled artillery. Looks like a heavy battallion with two protective main battle tanks, plus several smaller tanks with 40 mm cannon in the lead, but mostly 155 mm SP howitzers plus longer range 210 mm SP howitzers.

Sun, 01/26/2014 - 13:54 | 4368543 RaceToTheBottom
RaceToTheBottom's picture

Just moving Philharmonics.

Europe re-discovering physical gold...

Sun, 01/26/2014 - 17:02 | 4369050 QQQBall
QQQBall's picture

Autrains get to see their taxes up in smoke.

Sun, 01/26/2014 - 19:27 | 4369382 caShOnlY
caShOnlY's picture

FuckFink

Sun, 01/26/2014 - 12:58 | 4368444 Oracle of Kypseli
Oracle of Kypseli's picture

<<<<<Fink after 48min -- and the "RESET!" of Lagarde between 9min and 11min is interesting, too>>>>

Too theoretical, too cliché, too much jargon no one is touching on catch 22, all relying on growth which is not coming and cannot ever outpace the easing.

They all sound professorial, they all sound polite, but no one is of course upset or worried. In one word CRAP 

 

Sun, 01/26/2014 - 13:04 | 4368449 Rainman
Rainman's picture

Let it all burn.

" Capitalism without bankruptcy is like Christianity without Hell "

                 Frank Borman

Sun, 01/26/2014 - 13:37 | 4368508 Son of Captain Nemo
Son of Captain Nemo's picture

"Structural Reforms" on rigid labor markets "Bottlenecks", "Governance" including "unleashing the potential" by "breaking down "protective barriers" (like starting more wars and occupations for those who resist) being the operative words in  summary...

Thanks to 'Fips_OnTheSpot' for pointing out that most important of summaries in The Witche's Brew!

Sun, 01/26/2014 - 13:46 | 4368525 gwar5
gwar5's picture

Yep, public happy talk of growth and recovery, but plotting behind the scenes to bail-in and confiscate. Trying not to spook the sheep.

 

Sun, 01/26/2014 - 14:05 | 4368577 csmith
csmith's picture

YHTBFKM...

"Transformating" ???

Really, Larry?

You lost me right there.

Sun, 01/26/2014 - 12:21 | 4368373 LetThemEatRand
LetThemEatRand's picture

So is this another head fake to burn the shorts, or does it mean the big boys are now short?  I've given up trying to read the Tea leaves.

Sun, 01/26/2014 - 12:30 | 4368399 Renewable Life
Renewable Life's picture

All these rumblings and warnings of danger because they did this tiny fucking taper BS as Uncle Ben took his bow!!! The message to Yellen shoud be obvious at this point!

Get your foot back on that printing accelerator or its all over in months!!

Sun, 01/26/2014 - 14:30 | 4368633 disabledvet
disabledvet's picture

that's the problem. if she reverses course and goes back to QE ("the New New Orders") then that would REALLY "move the needle." far easier to stay the course...taper...and then allow the policy makers to figure out how to deal with World War Z.

Sun, 01/26/2014 - 12:33 | 4368404 ms8172
ms8172's picture

There is a bigger move to the downside than justifying a small move up here and there.

Sun, 01/26/2014 - 12:26 | 4368376 q99x2
q99x2's picture

Arrest the Rat Fink. China do you know who this man is? Don't let him get away.He is a scum bucket, non-humanist, anti-democratic, M'Fer. Save the Planet. Help shut down Blackrock. Buy Bitcoin.

Sun, 01/26/2014 - 13:15 | 4368464 Oh regional Indian
Oh regional Indian's picture

BlackRock is now either THE biggest or perhaps 2nd largest commercial property owner in India.

Fancy that, and take a hint. For all it's weirdness in it's current form, an uncomfortable square peg, round hole fit with technology, the money spigot will turn firmly this way once the US is "done with" so to speak...

And then, now through 2020, they will pump the shit out of India. One indicator, Auto loans are at 10-17%.....looong way to fall yet and meanwhile they are grabbing more and mor epeople into the banking net through something called the aadhaar card, a bio-metric national id, not YET compulsory.

So, whether you like the caste system or not or what ever other xenophobic, natGeo false fed impression you might have, this is the next investment destination.

 

Here and the middle east because the population is totally under control.

 

If you need specific pointers, feel free to ask...

ori

http://aadivaahan.wordpress.com/2010/07/13/whither-india/

http://aadivaahan.wordpress.com/2013/10/04/the-spirit-of-india-in-one-pi...

Sun, 01/26/2014 - 15:22 | 4368584 RaceToTheBottom
RaceToTheBottom's picture

Yep, they are all just positioning themselves to leave the US and to say, "well we told you what you needed to do and you never cut costs so we are leaving".

They view the US as cooked and all of their future growth will be outside of the US.  They know it and have already positioned themselves for it.  They have sucked the golden goose dry and are looking for new Muppets.

Sun, 01/26/2014 - 16:53 | 4369025 TruthInSunshine
TruthInSunshine's picture

I think that's wrong in large part.

Do you remember the reporting of the Chinese Elite & their family members stuffing 4 trillion USD of ill-gotten gains in Caribbean banks (along with using funds to buy assets the world over)?

Do you think the Elite in India are any less completely corrupt?

The under-wealthy connected criminals in China & India, as in many other EMs, have been fleeing to the west or preparing do so for a long time.

Mon, 01/27/2014 - 21:22 | 4373344 RaceToTheBottom
RaceToTheBottom's picture

Wasn't really talking about individuals, I was talking about companies and their focus.

Check out IBM.  Most of their income comes from international stuff.  They multiply that by using foreign employees, as well

Sun, 01/26/2014 - 12:22 | 4368377 Heroic Couplet
Heroic Couplet's picture

Detroit needs to have an accounting sheet that includes how much traditional banking has been screwed out of. Publica Bank of North Dakota: replicate in 49 other states. If 49 states don't have Wall Street, then New York state doesn't need it either.

Real estate bubble and Alan Greenspan: give both a one finger salute. There is a sustainable house movement in Texas. For Detroit, tear down, salvage what can be salvaged, and rebuild sustainable. Create a balance sheet to account for how much Alan Greenspan, his real estate bubble, and traditional banks have been screwed out of and bypassed. Calculate how much Phil Gramm and his CDOs have been screwed out of.

Account for municipal bonds. Avoice issuing muni bonds and calculate how much traditional banks have been screwed out of and bypassed.

Do the same for food corporations like Monsanto. Get a new accounting balanace sheet going, and regularly present to bank CEOs and Members of Congress.

Sun, 01/26/2014 - 12:31 | 4368398 Clowns on Acid
Clowns on Acid's picture

HC - only problem is that each State has a Banking Commissioner. If the Publica Bank of North Dakota tried to get into NYC or other major cities... do you think that their State license would be approved? 

Of course your general thesis is spot on. To implement  it will require some force however.

Sun, 01/26/2014 - 14:50 | 4368691 JimS
JimS's picture

It's not the "Publica" Bank of North Dakota, just "Bank of North Dakota". The Bank got it's start in 1919 because the farmers and business people in ND were pissed about getting fucked by the bankers in Minneapolis. So, they took matters into their own hands. Sounds like something "We The People" should do right now, huh?

Sun, 01/26/2014 - 12:23 | 4368379 SaulRosenberg
SaulRosenberg's picture

In related and infinitely more important news, MSNBC is reporting Justin Bieber is on a beach in Panama.

Sun, 01/26/2014 - 13:00 | 4368445 NoDebt
NoDebt's picture

Where the drinking age is 18.

And, no I don't want to see Justin flash his junk as he gets out of a limo in a skirt with no underwear on sometime in the next year (Britney).  Or twerk on his father (Miley).  Yet, somehow I think some horrible version of that will happen over the next year.  He's on a BAD path.  Doesn't take much imagination to see where he's headed.

Sun, 01/26/2014 - 14:00 | 4368558 JimS
JimS's picture

I didn't give you the down arrow, but, who gives a fuck about justin/britney/miley. If all 3 were to die tomorrow I wouldn't give one flying fuck at a rollin' donut about the event.

Sun, 01/26/2014 - 14:41 | 4368660 JimS
JimS's picture

I see someone really cares about justin/britney/miley. Question: are you glued to ET every night waiting for the "update" about the 3 of them, or do you cry watching every commercial on TV? Just curious.

Sun, 01/26/2014 - 17:35 | 4369119 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Miley is hot. Say what you will but I would do her at the drop of a hat.

Sun, 01/26/2014 - 12:23 | 4368382 Jason T
Jason T's picture

music to my ears with my VIX call options.

Sun, 01/26/2014 - 12:24 | 4368383 Bearwagon
Bearwagon's picture

Wait, I'll try to get it together: Blackrock owns Sacksman Gold, who, on the other hand, own Blackrock, so what is this asshole lamenting about. He's possibly nearly as influential as Obama, and in financial regards he sure has way more power. So all sense that his speech can make is, like, give me and my cronys MOAR, right? He's just too lazy. Why do anything worthwile when crying functions just as good.

Sun, 01/26/2014 - 13:27 | 4368495 Oh regional Indian
Oh regional Indian's picture

Make no mistake about this please.

Goldman Sachs IS actually Gold ManSachs.

That's right, Golden Balls.

Being dangled, in our faces

Take that, sheep, they say....

Their buggery leaving no traces

Curly hair glinting in our weary eyes....

And THAT while you're at tit...

That's right,

I mean

Left

At Tit...

I am That....

Gold ManSachs...

 

Sun, 01/26/2014 - 12:23 | 4368384 sunny
sunny's picture

"That said, it would be very ironic if the Davos billionaires really did follow through on their promise of eliminating inequality... by destroying the financial wealth of the uber-wealthy."

Right after the Vatican annouces that the pope is pregnant, the Prez works to remove Obamacare as a government program, Congress cuts military spending by 80+% and the FOMC demands annual audits of the Fed and full audits of US gold reserves.

Yep, any day now.

sunny

 

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