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Fed's Fisher Admits Stocks Are At "Eye-Popping Levels"
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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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.
When you are blowing a bubble from the inside it appears your world is growing.
Eye-popping....eerrrr.....bubble-popping is worse.
"warning that the Fed must monitor the signs carefully to ensure bubbles were not forming"
WTF! IS THAT SHIT WHEN IT'S THE FED WHO'S BLOWING THIS FUCKING BUBBLE WAY BEYOND INSANITY NOW!!
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.
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!
"An inflated stock market is our creation, but your problem."
Dick has always been the FED's "good cop".
You know, like the CFTC's Bart Shillton.
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.
in todays mkt, the term 'irrational exuberance' does not apply. it would mean some form of 'rationality' exists/has existed
They can't even talk the markets down, Bill gross going full retard should have been sign enough..
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.
DavidC
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.
Take a hike losers!
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!!!
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.
That's what happens when you give money to a kid, they end up being problem adults.
Irrational Algos, I like that
haHaHaHaHa
I'm sort of new to this whole economics thing, but isn't it the job of The Fed to blow bubbles?
Shhhhhhhhh!!!!!!
Monitoring closely, yet do nothing to stop it until it is too late to stop the damage
Classic deer in headlight symptoms
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
Eddie And The Hot Rods - Get Out Of Denver
http://www.youtube.com/watch?v=KxgQjQ4eRQ4
What bubble....the haves are just taking the have not's stuff. Easypeasy.
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.
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.
Even a clock is right twice a day...much better performance then Mr. Fisher
Even a clock is right twice a day........or a blind squirrel finds a nut.
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.
Fisher is a snake.
whats the big deal? I blow bubbles all the time in my bath!
"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.
Free Reserves For Banks
Means Nothing Safe But
Worthwhile For Everyone
Else.
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.