Fed's Fisher Admits Stocks Are At "Eye-Popping Levels"

Tyler Durden's picture

While Janet Yellen fell back on the ubiquitous central banker statement that she "would do all that [she] can" it was Dallas Fed's Richard Fisher who raised the most eyebrows yesterday. In a speech in Mexico City, the central banker said he was concerned about "eye-popping levels" of some stock market metrics warning that the Fed must monitor the signs carefully to ensure bubbles were not forming. While other Fed members have paid lip-service to bubbles, Fisher explicitly discussed stocks in the context of the dot-com boom of the late '90s warning of "the ghost of 'irrational exuberance'" and worried about corporate bonds too.


Via Fox,

In his speech in Mexico City, Fisher said some indicators like the price-to-projected forward earnings, price-to-sales ratios and market capitalization as a percentage of GDP, are at levels not seen since the dot-com boom of the late 1990s.


He noted that margin debt is pushing up against all-time records.


"We must monitor these indicators very carefully so as to ensure that the ghost of 'irrational exuberance' does not haunt us again," Fisher said. While a few Fed officials have mentioned unease about stock prices, Fisher's comments are the most pointed to date.


Fisher did not spare the bond market, saying that narrow spreads between corporate and Treasury debt "reflect lower risk premia on top of already abnormally low nominal yields."

Seems like a good reason to BTFTAH to us...

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Dr. Engali's picture

Bah... Fisher take your pretend gold and go jump in a river. You have shown how quickly you change your tune once things turn south. You aren't fooling anybody.

I am more equal than others's picture



When you are blowing a bubble from the inside it appears your world is growing.

Eye-popping....eerrrr.....bubble-popping is worse. 

Headbanger's picture

"warning that the Fed must monitor the signs carefully to ensure bubbles were not forming"


geno-econ's picture

Simple fix----Raise Margin Requirements. Will Fed do it ? Hell no, stocks would tumble and destroy pension assumption growth overnight. We are on financial credit treadmill that can only end in pain. Yellin does not have the balls to pull the lever nor did Greenspan or Bennanke.

Mr. Chairwoman's picture

I'll have to talk to Dick about this...

Don't fret, kiddos, the ghost of irrational exuberance shall be vanquished by the might of unusual accommodation!

outamyeffinway's picture

"An inflated stock market is our creation, but your problem."

Bay of Pigs's picture

Dick has always been the FED's "good cop".

You know, like the CFTC's Bart Shillton.

Clowns on Acid's picture

HB - The Fed means they are monitoring to make sure that No One else is creating bubbles... they know full well that they themselves have. 

scubapro's picture

in todays mkt, the term 'irrational exuberance' does not apply.   it would mean some form of 'rationality'  exists/has existed

Theta_Burn's picture

They can't even talk the markets down, Bill gross going full retard should have been sign enough..

DavidC's picture

Well, Putin firing an ICBM for testing purposes the other day and the Crimea Parliament voting to stay in Russia today certainly seems to be helping the irrational exuberance. NASDAQ and S&P at highs.

Presumably today's initial claims will produce another pop. Insanity.


Sufiy's picture

Bubble Chronicles. Mystery Solved: Meet Satoshi Nakamoto - The Face Behind Bitcoin

One mystery is solved: Satoshi Nakamoto is found and another one: when this bubble will be finally over will be found soon. Warren Buffet has discussed it recently and dismissed Bitcoin as a currency, as a store of value it is not working very well for the latest buyers from the last Fall. It will be more and more difficult "to find another fool" to buy it at a higher price after all recent news about Mt. Gox bankruptcy, millions of lost Bitcoins and crucial technical fault in Bitcoin architecture allowing it to happen. Constant attacks from the  Central Banks around the world will only add to the pressure on FIAT alternative. There is no "Gold 2.0" - there is only one real Gold and not so much of it left now.

  After these revelations about Satoshi Nakamoto pedigree and his long history of working on highly classified projects  you can think for yourself from what point in time NSA has been really involved in this project and what will be the implications on Bitcoin crowd of "freedom fighters" with further investigation reports coming out. The destiny of Bitcoin speculators we can learn from the history.

"I am no longer involved in that and I cannot discuss it," he says, dismissing all further queries with a swat of his left hand. "It's been turned over to other people. They are in charge of it now. I no longer have any connection. 


Toolshed's picture

Wow!!! Who could have guessed it was written by a US intelligence agency employee!!! LOL! The NSA has to get the funding somehow. Nice to know all those MtGox, Silk Road 2.0, etc. bitcoins went to a good cause. I bet those drones are pricey! I guess this makes the US bitcultists true patriots. This means fonestar works for the government of the USA!!!!! Congrats foney!!!

SheepDog-One's picture

Stocks are the only crowd control means they have left. Things are shitty and everyone knows it, but hey stawks r up so you can't complain!

OK Fed, now get busy mnitoring for any sign of a buibble with all-time records breached daily....duh.

strangeglove's picture

Irrational Algos, I like that


Dr. Destructo's picture

I'm sort of new to this whole economics thing, but isn't it the job of The Fed to blow bubbles?

Racer's picture

Monitoring closely, yet do nothing to stop it until it is too late to stop the damage

Classic deer in headlight symptoms

Theta_Burn's picture

 what will be the implications on Bitcoin crowd of "freedom fighters"

Whoa way to stay on point...

I'll bite

I suspect no implications at all except maybe adding a few more mining rigs (isn't that funny) and keeping those fuckers turned on 24/7 solving those last few equations, and watching those bitcoins magically appear...out of thin air.

To all you Miners, i build high end PCs as a hobby.

Gold and silver only

blindman's picture

Eddie And The Hot Rods - Get Out Of Denver

venturen's picture

What bubble....the haves are just taking the have not's stuff. Easypeasy. 

ThisIsBob's picture

Stocks are at their levels because the Federal Reserve has been printing money and there are few other as profitable places else for it to go.

TSTM's picture

The Fed has already formed the stock market bubble as the market participants have gone "all in" on inflation based on the "don't fight the Fed" mantra, conventional wisdom, etc. All that remains for the entertainment of the bubble blowers is the impending rush for that narrow exit.

The Axe's picture

Even a clock is right  twice a day...much better performance then Mr. Fisher

Pareto's picture

Even a clock is right  twice a day........or a blind squirrel finds a nut.

khakuda's picture

Too late dude.  The die is cast.  Now is not the time for talking Fed people, now is the time for acting.  WAY too much money priming going on unless the purpose is to create the biggest bubble yet.

Hongcha's picture

Fisher is a snake.

starman's picture

whats the big deal? I blow bubbles all the time in my bath!

moneybots's picture

"We must monitor these indicators very carefully so as to ensure that the ghost of 'irrational exuberance' does not haunt us again," Fisher said.


The monitor has been sitting on the floor, with a dust cover over it, for some time. 

When someone at the FED mentions concern about irrational exuberance, it is already too late to mention concern. 



evernewecon's picture



Free Reserves For Banks

Means Nothing Safe But

Worthwhile For Everyone



When Those Who Sold The

Bubble Plus Those Who

Simply Watched And Lived

Through It Buy It From

The Banks, That Inflation

(Difference Between The

Mortgage Market Without/With

Skin In The Game)

Logically Should Flow 

Somewhere, Though Value 

Destruction From Carrying 

Dead Weight Will Wittle Away

Some Of It.


Getting Nothing Worthwhile

On Safe Money Will Also 

Reduce Velocity, I'd Expect.


Some Genuine Growth Among

Market Components Provide The

Little Engine That Can, But

While Not Knowing The Future

And Never Making Forecasts I'd

Guess The Market Reflects 

Substantially Those Two Things:


Some Of The Inflation Flowing

From The Mortgage Bubble, 

Facilitated By The Fed's 

Largesse, And Simply People

Entering The Casino Economy,

Imitating The Behavior Of The

Banks Themselves, From Want

Of An Alternative.