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Stocks Slump As Bullard Doubles Down On Yellen's "Six Month" Fedian Slip

Tyler Durden's picture




 

While mainstream media was awash with status quo huggers proclaiming Yellen's "6-month is a considerable period" comment as a slip - and assuming several Fed heads would come to the rescue to focus investors on lower-for-longer - it appears they are wrong:

  • *BULLARD SAYS YELLEN'S '6-MONTHS' COMMENT IN LINE WITH SURVEYS
  • *BULLARD SAYS FED WATCHFUL FOR 'ANY KIND OF REPLAY' OF BUBBLES

This came on the heels on Fed Fisher's comments on the end of efficacy of Fed QE and that asset-buying would end in October and short-dated bonds and stocks are fading (as JPY crosses are tumbling).

 

Stocks and short-end bonds double-whammied...

  • *FISHER SAYS FED HAS EXHAUSTED EFFICACY OF U.S. QE POLICY
  • *FISHER SAYS ASSET-BUYING TO END BY OCTOBER AT CURRENT PACE
  • *FISHER SAYS SOME MORE VOLATILITY IN MARKET WOULD BE HEALTHY

 

and then Bullard:

  • *BULLARD SAYS YELLEN'S '6-MONTHS' COMMENT IN LINE WITH SURVEYS
  • *BULLARD SAYS FED WATCHFUL FOR `ANY KIND OF REPLAY' OF BUBBLES
  • *BULLARD: AFTER CRISIS, 'ONCE BITTEN TWICE SHY' A NATURAL VIEW

 

Not what the doves or stock/bond bulls wanted to hear...

 

And the short-end is not happy (as stocks drop to lows of the day)

 

JPY carry unwind en masse...

 

And the Nasdaq now at post-FOMC lows...

 

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Fri, 03/21/2014 - 14:32 | 4577904 RockRiver
RockRiver's picture

Who can believe anything these people say?

Fri, 03/21/2014 - 14:38 | 4577917 cougar_w
cougar_w's picture

Bullard is saying that Yellen spoke real spit. I think we can drop the "Freudian" meme now, they are serious and they want the market to know what is coming.

This is just one huge shitstorm now. The economy-destroying events of 2008 were only delayed, the real deal is upon us. Anyone thinks the oligarchs are now making rookie mistakes needs to get their head examined. We are in the grips of the end-game, all the big sovereigns are jockeying for control of the center of the board, it's fucking scary to watch.

If it heats up in the wrong way real people will be going up in actual flames and the gods only know where it ends.

Fri, 03/21/2014 - 14:41 | 4577932 DoChenRollingBearing
DoChenRollingBearing's picture

2:40 PM US ET.  Stocks have barely moved vs. their open.

Fri, 03/21/2014 - 14:42 | 4577933 Looney
Looney's picture

The FED's SheBitch didn't misspoke, she mis-spook... The HeBitch has just confirmed it ;-)

Looney

Fri, 03/21/2014 - 14:42 | 4577937 maskone909
maskone909's picture

I havent tapered my 12gauge, .223, 30-06, and .45acp purchases

Fri, 03/21/2014 - 14:52 | 4577971 disabledvet
disabledvet's picture

who is "they"? the "vast right wing conspriracy"?

I mean "what out forward guidance really meant to say is" and "this was confirmed and reported on as fact at Zero Hedge!"

Bwhahahahaha.
"Bulltard."

These clowns will be monetizing in one way shape or
form for the next thousand years.

Fri, 03/21/2014 - 15:10 | 4578079 daveO
daveO's picture

It's Dollar propping talk. After markets cave(and foreign money rushes into Treasuries), they'll stomp the QE pedal again. It's all they do, until it doesn't work anymore.

Fri, 03/21/2014 - 15:48 | 4578242 fauxhammer
fauxhammer's picture

Just at the end of my street, a dog is openly living with a cat.

 

Neighbors pretend not to notice, but I sense they are worried.

Fri, 03/21/2014 - 14:41 | 4577929 kliguy38
kliguy38's picture

They're trapped and you know what trapped rattlesnakes will do.....they've only got verbal jabs to throw and her "slip" was NO slip....its all being done to hold up the dollar and the carry trades ...if these steaming piles of shit start to go then they will announce QE Magnanumus.........

Fri, 03/21/2014 - 14:47 | 4577953 Dr. Richard Head
Dr. Richard Head's picture

I still think the idea, thanks to Ron Paul, of a group of people deciding on the price of money is one of the most insane ideas.  Once one wraps their head around the idea of debt-based currency there is no going back.  Too bad the majority of Americans can grasp every nuance of every fucking sport in the world, but cannot or willfully try not to understand the basis of the US Dollar.  Sigh....

That's why I just drink heavily and eat out stripper ass when the opportunities arise.  Seems to be an equally as stupid idea as trying to educate the majority around me about fiat money, but with more mouth herpes.

Fri, 03/21/2014 - 14:54 | 4577981 disabledvet
disabledvet's picture

ummm...how is "reverse repo" different from "QE" again?

Fri, 03/21/2014 - 14:58 | 4578004 Dr. Richard Head
Dr. Richard Head's picture

potato potahto...just different paint on the same turd. 

Fri, 03/21/2014 - 14:58 | 4578006 NotApplicable
NotApplicable's picture

It contains  a "V" instead of a "Q."

Fri, 03/21/2014 - 15:18 | 4578126 Bastiat
Bastiat's picture

 

 

Who will buy the paper? 

Where did Belgium get the money to buy its GDP in UST Bonds over the course of 2 months? 

Fri, 03/21/2014 - 14:58 | 4578000 pods
pods's picture

Just carry a little bottle of listerine, or hell mix drinking with tossing salad and you will be fine.

I mean, it isn't as crazy dangerous of putting a small group of bankers in charge of our money supply.

That would be like putting a crackhead in charge of your crack supply.

pods

Fri, 03/21/2014 - 15:00 | 4578015 Dr. Richard Head
Dr. Richard Head's picture

Gracias Pods.  Plenty of booze to get to salad tossing.

Seriously though, it is sad that the masses cannot grasp much on this debt based money system. I wish people would see it as clearly as most of us do here...

Fri, 03/21/2014 - 16:23 | 4578363 stewie
stewie's picture

One must be careful to separate the concepts of Debt Money & Central Planning.  Debt Money can work, central planning cannot.  Ron Paul was against central planning, not debt as money.  Debt money has a bad reputation because people directly attribute its flaws with wealth disparity, regulatory capture, etc.  This is akin to central banking.  Conceptually, Central Banking is not ALL bad.  It serves a purpose.  It's our current implementation that sucks.

Fri, 03/21/2014 - 15:11 | 4578082 furgheddubouddit
furgheddubouddit's picture

What 'carry trade unwind'??

FFS. The S&P 500 is only ten points off a record high!!

Fri, 03/21/2014 - 14:33 | 4577907 FuzzyDunlop21
FuzzyDunlop21's picture

Tyler your word plays fuckin crack me up

Fri, 03/21/2014 - 14:37 | 4577912 PlusTic
PlusTic's picture

why people listen to a word of these clowns dribble is amazing...rates are NEVER going up, we are in a depression

Fri, 03/21/2014 - 14:59 | 4578013 NotApplicable
NotApplicable's picture

Well, they might go up. But no longer than 15 minutes.

Of course, when solvency is measured in milliseconds...

Fri, 03/21/2014 - 14:39 | 4577921 digitlman
digitlman's picture

HA HA!

Fri, 03/21/2014 - 14:40 | 4577926 Ness.
Ness.'s picture

BTFD - ZH puts in the bottom (again, and again, and again).

 

Fuck Duke!!!

Fri, 03/21/2014 - 14:48 | 4577960 Ness.
Ness.'s picture

ZH post 14:30 - DJIA low of the day 14:32.

 

 

Fri, 03/21/2014 - 14:51 | 4577936 haskelslocal
haskelslocal's picture

Static White Noise. 

 

Fri, 03/21/2014 - 14:43 | 4577939 ifishivote
ifishivote's picture

Fri, 03/21/2014 - 14:46 | 4577945 ifishivote
ifishivote's picture

There is a great NCCA tournamnet bracket going around about Obama. Zero hedge post this some where

 

 

https://pbs.twimg.com/media/BjHTtGCCQAAAkwW.png:large

Fri, 03/21/2014 - 15:21 | 4578143 Bastiat
Bastiat's picture

 

 

Stunning, really, what this clown has been able to get away with.

Fri, 03/21/2014 - 14:44 | 4577942 NOTaREALmerican
NOTaREALmerican's picture

Well,  when in doubt about the future one should alwasy apply the second law of funda-mental human bullshit:

optimism = optimism * (1 + rate of bullshit)

As long as bullshit is increasing at a healthy rate, optimism should increase.  As optimism itself creates bullshit, this causes a perpetual increase in stock prices. 

BTW, this is also what makes inflation invisble.  

Inflation <= rate of bullshit.    

 

Fri, 03/21/2014 - 14:46 | 4577947 yogibear
yogibear's picture

Mrs Debtfire bungled. She has to have one of her fed monkeys clarify.

Fri, 03/21/2014 - 15:03 | 4578031 NotApplicable
NotApplicable's picture

Trial balloons can hardly be considered bungled.

Remember, other than direct market manipulation, their only tool is the management of expectations.

Combine the two and you get head-fakes from Yellen, and manufactured "responses" by Kevin Henry and friends.

Fri, 03/21/2014 - 14:50 | 4577965 kahunabear
kahunabear's picture

Phew, glad to hear they are going to clamp down on any bubbles.

Fri, 03/21/2014 - 14:54 | 4577980 jubber
jubber's picture

Surely this shit sells off this time? how mant times can they pull this bullshit?

Fri, 03/21/2014 - 14:57 | 4577984 bdub2
bdub2's picture

Let's call a fraud a fraud: Tapering is tightening. period. If you "underprint" month to month, you "un-prop" up a market in shambles. Still pouring in billions, ok. But it has not worked. And there is no way out.

Time to call it what it is: Quantitive Tightening

Fri, 03/21/2014 - 14:57 | 4577998 TruthInSunshine
TruthInSunshine's picture

I ONLY ALLOW 5 PEOPLE TO INVEST MY FIAT - JIMMY JAM CRAMER, BRIAN WESBURY, MARK ZANDI, JOE LAVORGNA OR TOM STOLPER.

Fri, 03/21/2014 - 15:05 | 4578046 miker
miker's picture

I really think something happened last fall that increased the urgency of winding down.  I don't know what it was, but it probably centered around threats from other big countries that if it continued, they would sell the dollar.  I mean, before that period, Bernanke was playing the usual games and word speak.  Nothing serious.  Then with the Dec. announcement it's been balls to the wall to reduce.  I have no doubt it will continue to zero; even when the economy slows further this spring/summer.  The other piece that plays into this was Congress's turnaround.  The budget agreement with Ryan, the deficit fight (NOT).  All these things point to a rather signficant and serious change in attitude.

Perhaps gold was the trigger.  They sold the metal down but buying of physical shot up.  Maybe that was the insight.  Not sure.  But am sure something changed.

If I'm right, even when the economy slows (and it will), they will not QE again.  We'll see.

Fri, 03/21/2014 - 15:05 | 4578047 Warrior85
Warrior85's picture

In this period  of great financial turmoil and a raging currency war, it is better to be a trader than an investor. Good traders can make enormous gains in a relatively short period of time. But even for people with no trading skills like myself there is a lot of money to be made by copytrading the best traders.

Fri, 03/21/2014 - 15:15 | 4578102 NotApplicable
NotApplicable's picture

Make all the money you can, yet it still won't help you the day you wake up to a bank holiday.

You're nothing but a creditor to the DTCC, who thanks you for your support.

And the band played on...

Fri, 03/21/2014 - 15:07 | 4578060 pound the vix
pound the vix's picture

Friday, quadruple witch...this thing will end the day at the high.

Sat, 03/22/2014 - 16:49 | 4580826 Midnight Rider
Midnight Rider's picture

Options trading closed right around the time the market rolled over. Coincidence?

Fri, 03/21/2014 - 15:17 | 4578105 ebworthen
ebworthen's picture

C'mon Bullard, "watchful for 'any kind of replay' of bubbles"???

You know damn well that the FED has intentionally created bubbles to bleed the middle class and feed the kleptoligarchy and please your bankster masters.

They are as much as admitting it now; and it is one of two things - a Freudian slip or the ravings of delusional mandarins.

Fri, 03/21/2014 - 15:23 | 4578146 NDXTrader
NDXTrader's picture

I think it more likely that it was Kuroda's comments in London that BOJ may wrap up QE by year end

Fri, 03/21/2014 - 15:27 | 4578159 debtor of last ...
debtor of last resort's picture

The unwind of Abenomics, China's shadowbanking system and the FEDs QE, all at once... That should be good for a few dead canaries.

Fri, 03/21/2014 - 16:26 | 4578316 earleflorida
earleflorida's picture

FWIW dept::    when you create a bubble in an economy, you are systematically and methodically increasing the flow of equities into a said singular (secular/rotation?) entity-- not focusing all energy into the overall said universal market, where distribution and balance is key... in a prerequisite fulcrumless financial multi-instrumental universe, where only a pendulum is scaled?

in turn you eventually generate a great deal of pressure-- there are alot of market fluxuations/ variations acting upon the bubble from outside. so, the pressure from the overall universe becomes high...noticeably from the slightest changes in a static-momemtum discharge...equated to an equillibrium maladjustment dertrimental in a quasi-fixed system with many parts in a labyrinth-construct of symbiotic fuctionality in unison.

as expansion increases, the bubble is forced out of the assigned aforementioned trading-platform (atmosphere?), causing a breakdown in functionality once the bubble becomes grossly inflated. thus, the outside pressures, when force directly or indirectly via market flows lowers the bubbles pressure causing it to implode. yet, the opposite can happen when bubble just keeps reflating causing the external pressure to decrease ending in the usual bubble exploding.

there are however two scenario's to choose from, and unfortunately the frb's and it's partner in crime, bis... know. 

quick note: almost a year before the great depression andrew mellon told hoover to sell everything-- land, labor, people, equities and go away.

wiki @ mellon (SofT and perhaps the 2nd wealthiest [Banking/ Chevron / Alcoa/ etel to infinity] man in american in the 60's) note how he and avirrl harriman made billions on german steel and munition wwII land-lease (FDR), shipbuilding, rubber, RR Commerce, etc., etc.,)

lastly. yellen knows nothing other than what to say when told what to say by the`PTB...

tptb finance countries and have know time for little equities when they have trillions, upon trillions to buy countries debt. the problem is when the said country defaults on debt, it's either a smorgasborg for the ptb or a war taking said country totally out of equation. the USSA is close to being dropped by the`ptb... with the strong posibility of a default by 2016...

jmo  

Fri, 03/21/2014 - 16:10 | 4578319 1stepcloser
1stepcloser's picture

any bankers jump today?

Fri, 03/21/2014 - 16:40 | 4578433 moneybots
moneybots's picture

"BULLARD SAYS FED WATCHFUL FOR 'ANY KIND OF REPLAY' OF BUBBLES"

 

The FED is a few thousand DOW points behind the parabolic curve, on that one.

 


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