The Fed Goes Hunting For "Asset Price Bubbles"

Tyler Durden's picture

As the world's investors wait anxiously for the next piece of bad news from Japan, China, Europe, or US as a signal to buy, buy, buy on the back of a renewed "stimulus" of freshly printed money that has comforted them for 5 years, it seems the Fed is turning its attention elsewhere:


The embarrasment continues:


Because the Fed was accurate in spotting the "pre-crisis housing" bubble, right?

And the punchline:


For now though, of course, the Fed's Bubble-o-Flagger (which can also be yours for four easy payments of $29.95) has no batteries. Pointing out the irony that the Fed creates the bubbles... and then when it becomes a "big concern" it promises to do something about it if it every sees one.  Finally, we are delighted that the schizhophrenia of the central planners continues to be exhibited for all to see: first Yellen tells everyone to buy stocks on Tuesday with an uber-dovish retracement of her "6 month" flub, and now Bullard is saying to watch out for bubbles. What can one say but... economists.

As a gentle reminder of just how these bubbles are formed...

Bubble Formation: start at the bottom left...

Bubble Bursting: ...and end with a 'debt crisis' and a 'rush for the exits'

Rinse and Repeat - Simple. QED

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Dr. Engali's picture

Hey Bullturd. In order to find the bubble all you have to do is look in the mirror. The fed with it's funny money FRNs is the bubble.

NotApplicable's picture

Are you daring to suggest a cause and effect relationship between monetary and price inflation?

That's crazy-talk.

knukles's picture

Oh FFS Bullard, just have Vlad invade "The" Ukraine and be done with it.  The bubbles go away and QE stays.  Easy Peasy as Valerie Jarrett said about enrolling in ObieCare


Why am I the one who always has to come up with the solutions?

Thought Processor's picture





The Central Banks are the bubble.

maskone909's picture

the fed asset bubble finder machine is fueled by monkey bones and sacrificial newborn babies.


clooney_art's picture

Federal Reserve = Cacophony of incoherence.

hobopants's picture

Sometimes my dog farts and then looks around for the perpetrator. Somehow this seems very much like the same thing.

Two-bits's picture

How can you expect any result, other than popping, when these bubbles are created by a bunch of pricks?

Manthong's picture

Just don’t look up Janet’s posterior..  there’s a 3,500 psi one building there.

agstacks's picture

Everyone knows the only bubble is in gold.


derek_vineyard's picture

bullard is talking about PMs

replaceme's picture

sorry to interject this, but did CA just announce a big Muni general fund sale?  Is this an IQ test for MyRA acceptance??

ebworthen's picture

Good 'ole Neel Cash'nCarry, the Aladdin who made taxpayer money disappear into the black hole of Wall Street with the help of his Genie Hank Paulson.

Keep rubbing that lamp Neel!

Rainman's picture

Even Jesus couldn't beat Moonbeam this year. Jerry is like the Dali Lama to all liberals and public union employees.

Rainman's picture

CA muni sale is just under a billion for the UC system < probably to finance the pre-election Dream Act Diploma giveaway to the illegals >

El Hosel's picture

Don't worry, as soon as we go a couple of daze with no bad news a quick dip is possible.

Skin666's picture

Can't see them being able to pump another bubble. Central Banking is already on borrowed time.


The FED will be dead by the end of 2015

NotApplicable's picture

Psshaw! They'll just go double or nothing... AGAIN. (add a couple zeros to everything, and you've got a "new normal")

The FED holds the whole world hostage, and they'll kill us all before giving it up.

Skin666's picture

They only have power as long as they can keep the purchasing power of paper tickets from cratering. That's gonna be nearly impossible with banking bailins and bank runs over the whole world.


Once the money turns to shit, it's game over, and there's not a fucking thing they can do about it.


Long precious metals and crypto

NotApplicable's picture

As long as you and I still accept dollars in return for goods and services, there's not a fucking thing anyone can do about it.

The currency has been depreciating for around a hundred years now, yet I hold a fistful of dollars (cuz I gotta buy lunch).

Oh, and if everyone starts refusing them??? Well, then the nukes come out to create a "level playing field."

Skin666's picture

"This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.'

"But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against 'real' goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days [especially in today's world of 24 hour media], the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them."

"It was this that happened with the Continental currency in America in 1781, with the French mandats territoriaux in 1796, and with the German mark in 1923. It will happen again whenever the same conditions appear. If a thing has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last." Ludwig Von Mises

disabledvet's picture

280 billion in corporate debt sold to market this 1st quarter alone.

amazingly that isn't a record.
so no problem funding the balance sheets.

treasuries have rallied since last summer...time to dump it all a go long KING?

how about that return on a savings account!

i mean "bitcoin"? CRAZY!

CASH is still King in my book...even at these low rates. And the only asset that isn't correlated to the "non-recovery recovery" remain Treasuries. They have been getting hammered this week...said i would sell but i haven't yet.

kinda painful actually.
"story of my life."

Pairadimes's picture

Good thing that old 'Elmer Fudd' Yellen is out to catch those 'wascally wabbit' asset bubbles. We can all relax now.

Squid Viscous's picture

just heard him on the radio ... "overall, inflation expectations are low so we're not concerned..." lol let's follow the consensus expectations of economist fucktards, that has always worked out so well   

Cattender's picture

Silver is a Bargain right now.. (thanks to MANIPULATION!)

El Hosel's picture

indeed..... finding those bubbles is like trying to find a needle in a needle factory.

DavidC's picture

Economists? I think the term is fuckwits.


spekulatn's picture

 Finally, we are delighted that the schizhophrenia of the central planners continues to be exhibited for all to see: first Yellen tells everyone to buy stocks on Tuesday with an uber-dovish retracement of her "6 month" flub, and now Bullard is saying to watch out for bubbles. What can one say but...economists.


This is what makes a (rigged) market.

ebworthen's picture

Hey Bullard, Yellen, et. al. - the FED is the Bubble!!!

Notsobadwlad's picture

A. Stock market

B. Real Estate

C. Farmland

D. Gold

E. All other metals and commodities

"Bubbles Bernanke" ... an approrpriate name for a guy who flooded the world with free debt-money for his closest friends and employers.

disabledvet's picture

steel, coal, iron ore, gold, silver.
if that's a bubble then they sure have corrected and we should be buying hand over fist.

all being replaced by natural gas which has now doubled in price?

profits remain at all time highs. is there really a bubble in final demand?
seems to me we're just getting jerked around by the Banks refusing to pay interest on real money.
Berkshire Bank is kicking out BofA in these here parts.

agstacks's picture

Taper on- right-a hand make-a circle

Taper off-Left-a hand make a circle

Taper on

Taper off

Taper on

Taper off


Tsar Pointless's picture



Which are more worthless?

khakuda's picture

"Bullard says Fed has hired Hellen Keller to monitor for bubbles"

Itchy and Scratchy's picture

I took a bath yesterday and made lots of bubbles!

Tsar Pointless's picture

The Fed's Bubble-o-Flagger doesn't need any stinking batteries, because it's fueled by bullshit. And there is a large supply of that at our dear Central Bank.

Reaper's picture

To paraphrase Teddy Roosevelt, "In the case of Fed economists, in 9 out of 10 cases, they are better off dead and in the tenth case, don't ask too many questions."

RaceToTheBottom's picture

Is this like the anti virus software that first introduces the viruses to your pc and then offers to remove them for a price?

JR's picture

How can America survive the twin attacks from the EBT culture and Fed/Wall Street corruption.

The US stock market and the success of Wall Street is an EBT card and a welfare check.

Working Americans are the reservoir being tapped to run America’s so-called recovery, namely the transfer of their labor to the ne-‘er-do-wells, the illegal aliens, the underpaid immigrants, the displaced Americans, and the huge crowds of cheaters.

America’s current economic well being is simply stolen money, a credit card to buy anything you want with someone else’s labor. And THIS is what keeps the malls, the grocery chains, the endless 7-11 fast food traffic, the Costco trolleys humming.

Is there any wonder that a corrupt Congress is happy to endorse the flow of money to their corporate donors with a flow of more amnestied illegal aliens?

WhiteHose's picture

Wish I was an economist! Theyre the only people who DONT have to live with their mistakes! Or lose their jobs over said mistakes.

buzzsaw99's picture

a fed hed sed something. i should go buy or sell something now. [/sarc]

alangreedspank's picture

Oh, so there are bubbles but the Fed did not get to care about it yet ? That's reassuring...

Seriously, Bullard is one of the least annoying Fed heads. He often acknowledged the unknown potential risks of QE and ZIRP (that's as far as he goes). Compared to Bernanke's "100%" certainity, he's much more candid.

DOGGONE's picture

Dear Hunters,

If you want to FIND, see here:

If you want to TALK, do NOT inflation adjust.

The Wisp's picture

Somebody forgot the Wednesday Humor, line in the Title...

moneybots's picture



What a bubble headed booby. 

We are in a bubble.  The FED is playing the we can't see a bubble, game.  When the housing market was a bubble, Greenspan declared it was just frothy.  Now he declares the stock market has run up a lot, but isn't a bubble.  Greenspan is rather transparent.

What is Bullard going to do when he finally flags the bubble?  Whenever they admit it is a bubble, it is going to be too late to do anything about it, other than burst it.

The bigger the bubble, the bigger the deflatulation.

moneybots's picture



He is looking in the wrong direction, then. 

Is anyone fooled by Bullard's willful bliindness?  We have seen this routine before.

dizzyfingers's picture

Check out newspapers for grocery-store food-sale prices.