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Marc Faber Warns "The Market Is Waking Up To How Clueless The Fed Is"
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," warns a somewhat excited sounding Marc Faber, adding that he thinks "it will be worse."
The pain is just getting started as Faber notes that "the market is slowly waking up to the fact that the Federal Reserve is a clueless organization." Internet and Biotech sectors (growth stocks) are "highly vulnerable because they're in cuckoo land in terms of valuations," and fully expects the selling to spread as The Fed "have no idea what they're doing. And so the confidence level of investors is diminishing," and that means we will see a major decline.
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And Boom goes the Faber!
If the FED is the market, does it matter that the market is waking up to the fact that the FED is clueless?
Is this a tree falls in the woods thing?
As much as I agree with Marc, at this point he's like a stopped clocked being right twice a day and wrong every other time. Marc has been preaching doom for so long that of course at some point it will hit.
1823.50 on the ES Baby! That's the Maginot Line
The Feddies Have It Under Control...
CRANK UP The HFT Bullshiters... That'll Solve It...
Down days are caused by HFT's turning their machines off. That's what makes them NOT market makers. "Liquidity" is provided at their whim and your expense.
It was May 7th, 2010 and there was no bid...
Deja Vu coming soon!!!!!!!!!!!!!!!!!!!!!
Just a steady grind down. No panic. No waterfall. The machines are just walking this market down. There are no humans involved here.
HFT's Don't Turn The Tubes Off.
They CRANK-ON The Shorting Switch...
They Fuck You On The Ups, AND They Fuck You On The Downs.
And they fuck you in the drive-thru
"Earth revolves around the Sun" took a while to catch on too.
I glare at the NYFed and its prodigy ......... currently the "vice" chmn and all the other formers that 'effect' the dual mandate of the Federal Reserve "System" .....calling Senator (self-designated smartest person in the Senate) Schumer ... any "advice"
faber arrested for throwing shoe at fed
Off-Topic Post: BTC-E seems to have gone off-line. Last quote I saw wsa $345.00 BTC/USD.
The BTC bulls are hating it right now. . .
Faber is like a doctor that advises a patient to quit smoking, lose weight and exercise. Patient ignores doctor for years until patient drops dead from a massive heart attack.
Was the doctor right just once or all along?
The patient does not know if the Doctor was right all along or wrong. Does it matter to the patient at that point?
I am a patient. I quitted smoking; lost weights; and exercises twice a day...
I am living...Now what?
Take the red pill, so I can wake up to knowing the market (eh, the Fed) played us, damn?
Oh sh't, BTC hugging bear?
oh, "the fed is clueless" ? a doctor? fed is clueless ? why read another of his sentences?
FED 'dual mandate' ?
That must be -
- Steal from the public
- Lie to the public
An 87-type crash is all? Oh, shit, for a minute there I thought it was something serious. If that's the worst that happens, I'll take it and be grateful.
Dude, the 1987 crash led to a massive feedback loop that pulled the entire commod complex down for 3 years. Long enough for the USSR to blow up, and LTCM to go zero (which was roughly the Citadel of it's time). Go read Bookstabber's "a demon of our own design" tonight. The breakers were not designed for 2b quotes a second. If there is a serious limit down, it would be like a dns attack on every price quote. Facebook's IPO unfolding on every major index weight with prices being crossed at a whole bunch of prices, some a full 50 seconds behind other quotes; so where is the average price ? When they do put on the breakers, what's a real trade vs the other 1.9999b trade quotes ?Are they going to bust a whole day of quotes? what happens then when they restart the networks ?
You would need to shut the whole place down and basically "eject the warpcore", where you manually process all the orders on constrained volumes from only established and recognized dealers. HFT's would be banned on site for another 20 years (until a new AI loophole is found). Imagine the entire world trying to panic sell post bank-holiday, and then to process a book that normally would be 60% cancels or rebates, now you have to check every ticket the old way. What will that do to the bid/ask spread when Blackrock or Fidelity needs to GTFO out of 80% of the NASADQ biotechs ?
3 day settle now becomes 5 days since the algos can't be trusted. Now what will that do for retail confidence when their RRSP's & day trading books are frozen. What will that do for guys trying to cover margins ? At what point will the full on route finally break the Money Market funds who are still providing base liquidity to currency guys.
What will the largest bagholder funds of subprime & UST's suddenly do when we go limit down ?
I know you have /sarc, but for those who do not know. 87 is/was no joke and that panic was only saved by the limitations of how much the pits were still dependant on human ticket checks + computer horsepower.
Today ? You could play ping-pong with the VIX (and we all on ZH know it happens) in picoseconds before anyone knows wtf is going on. and that's with 70 ms latency. Imagine the gong show someone could do with XOM at 300 ms. or 500 ms.
Or maybe not. Yellen may just say fuckit and declare all oil companies are now tax free national security NOC's like CNPC and Sinopec and all US manufacturing on-shore is now a mega-free trade zone like Dailan, and the SPX hits 9,000.
ltcm wasn't founded until 1994, and its failure was in 1998.
how old are you?
He's predicted twenty-four of the last two market collapses.
I like those odds...
Faber called the market bottom in March 2009.
he echoed others. period.
People seem to get pissed off when they discover someone doesn't have a crystal ball.
No One has a crystal ball. Might as well stop looking for one who does.
That's why I've long dropped all newsletter subscriptions except for Jim Willie. Kept his because I find his writing amusing & thought provoking. But I know he doesn't have a crystal ball, either.
Me too. When the Fed said it would buy all the subprime bets and it wouldn't let anymore banks go under, that was the bottom.
I wonder why the NWO isn't telling everyone what they are doing to take over control of the world. Probably has something to do with people
Hey yeah, it worked for 5 years right? That's proof it's never going to fail! /s
I wonder if ZH is going to apologize to Dennis Gartman after giving him shit for his negative call on the market yesterday? Faber, I guess, is at least consistent, but how long can you spin the same garbage year after year and still get media attention for it?
The same way Dennis does it, you publish a subscription based newletter and sound like you know what you're talking about. Same as it always was.
Hate to say...he was also right about Gold.
Maybe that's because Faber is the clueless one, not realizing Fed is playing out a speific plan of looting the nation for its banker owners, a plan they could implement only after (causing) the '08 meltdown.
Mind officially blown.
I hope he's right
After 26 years of bad calls , he needs the apocalypse , as do my shorts
Shorts will never be paid off in an Apocalypse. The counter parties will have no money.
Buy farmland.
That's why metals make so much sense. Some hard metal is better than nothing.
How did you get from farmland to taxable metal?
You grow food and sell it from farmland. If you sell metal to buy that food, the govt will take taxes out -- and if that metal is ever a threat to anything, those taxes will be 80%.
You're never ever ever ever going to be the god of your community because you bought some old coins. Just get that through your head(s). It will never happen. It will never be allowed to happen.
Farmers always seem poor. They escape notice.
Farmland is a hundred quintillion times more taxable than metals. Didn't you see Gone with the Wind?
Only a fool would buy something that he can't take out of the jurisdiction under these conditions.
Agree tmosley. They can tax you right off of your farmland. Or better yet, you will farm the land and give them the food it produces. And if you are lucky they will let you keep enough so you don't go to bed hungry every night. Get to work slave and hoe that field!!
It's called buying and selling on the black market.
moose swamps
set out salt blocks..
Great question! I follow that up with, if the market fractures does that also mean the Fed will fail? Can the Fed fail because it is the buyer of last resort?
It is impossible for the fed to fail because on one side of their balance sheet, they have a money printing press. They only fail when the money they print isn't accepted.
The end of the petrodollar may accelerate that process with or without a printing press.
Actually the Bureau of engraving and printing prints the buck at the request of the Treasury. I do know what you mean the Fed does request the notes to be printed. However, there is a limit to printing, does a crash of magnitude preclude extraordinary printing?
They can create digital dollars on a seconds notice. Who needs a printing press? How many of your dollars are real and how many are digital?? Ya that's what I thought... Most of them are digital. Press the 0 key one time and you go from one trillion to 10 trillion.
BREAKING NEWS: Zombie apocalypse canceled, not enough brains in America left to eat.
The pain is just getting started as Faber notes that "the market is slowly waking up to the fact that the Federal Reserve is a clueless organization."
Replace "Clueless" with "Criminal" and you have your answer!
Will we see a VIX slam in the last hour?
Saving the NASDAQ from breaking 4,050?
Sitting at 4054 now. They want the market to go down. That much is obvious. Given that fact, I think it's got further to go.
4047
I'm hoping for 404 but...
Select * from Fed Where Clue = "NONE"
How about Delete from Fed where Clueless = 'None'
Drop table fed;
Period
404 Error: Economic miracle not found.
Precisely, "broken or dead link": http://en.wikipedia.org/wiki/HTTP_404
More like "missing link". :)
Dollar or stocks.They have shown they can't do both at once.
Today they are losing on both.
So... is that a doubt i'm seeing there?
I suppose you forgot your <sarc> tag.
Till MA50 and beyond!
You ain't seen notin yet!
I guess we will see if the algos stop buying it as well...
The 30 year is in a long uptrend since 09 with the pattern intact.
Jan prints, or bond bears die a horrible and painful death.
Ummm... I've heard that before somewhere...
Soon, very soon, the markets will see the pure genius of Janet Yellen.
/sarc if you are incredibly dense.
Thank goodness Faber has never made this type of call before. that really adds to the gravity of it.
where is michael burry dammit? he is the only one that can stomp on this market with a call now.
Sometimes I think they just have a bunch of Mark's interviews on some B-roll sitting on a shelf, and they dust them off and hit play on the down days.
I'm still waiting for the day when they have him on and he says the decline is worse than he could has possibly imagined, interspersed with cuts of traders raining down on wall st.
A million years ago when I had to turn in weekly sales forecasts at some God-forsaken job, I would sometimes just take the previous week's report, change the date and hand it back in. My record was 9 weeks in a row without anyone questioning it.
Thank you for making my morning LOL
He lives in Chiang Mai, home of the $300/month luxury (and I do mean luxury) apartments. $300 pays for a lot of apartment up north.
He gets on TV, he gets 2 subscribers per appearance,
5 subscribers will fund his rent and food and internet bill in Chiang Mai. If he has 50, he's pocketing the rest.
Someone forget to turn on the algos? Their liquidity generation is sorely missed.
Don't worry folks. Nothing to see here. Move along. Move along....
Question - What is Faber's record so far and for how long has he warned of an imminent market crash?
If he didn't have that accent I don't think he'd have as much of a following.
But he does have the accent, so....
I think they love him in the media because every so often he says some really over the top shit, like people should buy machine guns or thai hookers. So having him on is kind of like gambling on the off chance that he'll say something good.
So are you saying you're short machine guns and Thai hookers? Or that you don't like them? Because I'm long on both and they've treated me really well....
There's way too much paperwork to own either of those in the US, so I go with substitutes that don't require documentation.
BTFVIX!
I just got a message from a friend that Kevin Henry has been out today but should be back in the office about 3:30 EST. I would therefore recommend that everyone BTFD
Confidence level of investors??? what investors? THe market has been manipulated higher penny by penny by HFT trading algorythm junkies. What happens when you turn the computers off??
NO BID BITCHES!!!
fixed it Mark...
Marc Faber Warns "The Market Is Waking Up To How Clueless, Corrupt, Criminal, & Treasonist The Fed Is""Corrupt, Criminal, & Treasonist", for sure. Clueless? Not a chance. These people have an agenda and they are doing just fine.
One day this fucker will be right
The next day the water shuts off into your house or apartment.
Hey gang, bank earnings come out in the next few days.
Mabye someone(s) got the tap on the shoulder they aren't so great?
I was thinking the same thing.
Will Jamie "I'm Richer Than You" lose some of that hubris?
I got the feeling JPM's gonna be the sacrificial lamb when TSHTF.
<-- S&P 2000
<-- S&P 1500
which comes first? my bet: 2000
Is that a bet on under-reported inflation or on anything fundamental?
Good job the investors have no idea what they're doing either then. This type of shit should be good for a short squeeze.
It's the same game, over and over. Reel the shorts in and then ramp it up.
Like taking candy from a baby.
When do I buy this dip? If you can let me know I was hoping to start day 1 of my 1200 days in a row trading with no losses. I heard it is really easy to do.
first step - buy a Yarmulke
https://www.youtube.com/watch?v=jllJ-HeErjU
If keeps saying it eventually he will be right.
Everytime it hits the bottom of the bottom channel it looks like a buy.
@ZeroHedge I know you guys are trying to make money off of advertising, but you could please stop putting Ads on your site that have auto play sound features, they are so Annoying.
Use AdBlock, donate ZH $10 - $20 a year, problem solved.
already have it enabled doesnt stop in page auto play Ads
Adblock Edge. I use it and nothing gets through. You can also open the addon and create custom filters.
Works with Firefox ...
Deer in headlights pic please!
I blame Congress more than the Fed. Congress is derelict in their fiscal duties to pass budgets, raise revenue and simplify the tax code amoung other actions that could be taken.
Congress inaction forced the Fed to behave as they have for so long. If the Fed did nothing or very little our economy wouldn't exist.
Congress doesn't legislate, they pass to SCOTUS
Congress isn't fiscally responsible, they pass to the fed
Any attempts to cut spending get whacked in the Senate. The President would not sign any meaningful spending decreases anyway. He's going for the full collapse so we can all live in the glory of Next Tuesday!
All Hail Caligula ! (and his horse)
The problem isn't the Fed is clueless. The problem is the Fed no matter what they do stops a truthful & real capitalist economy. The stock market and economy shouldn't have a central bank to begin with because that changes the whole system.
Real drop starts after the Easter 3 Day weekend as no one is going to want to wait for Sell in May and Go Away: May is too late. Deeper, further, worse then 1987? No shit Sherlock, never has there been such a facade of such sight, sound, and smell covering an unholy sight of grinding flesh and metal smelling like death. Remember 1937? Well, I've got this incredible feeling of deja vu all over again. Read the LIE OF OMISSION, every late Friday at www.electanewcongress.com and "The Science of Liberty: American Reformation & Renaissance", coming out in ebook form FREE, by late April/early May. SERFS UP AMERICA!
The Fed would like to leave fed funds rate at 0, but doing so would contradict the "strong economy" line from the White House. You know, when economies are truly doing great, you're suppose to raise rates, cut spending, etc. and all that...
So true. All this lying about a "recovery" is bellied by all the manipulations and market rigging. It is a house of cards...I think it is set to fold any time now.
I think the timing of these remarks re: the Fed is spot on. I laughed out loud when I glanced at the summary of the Fed's minutes. The 6.5% UE threshold is "outdated." Give me a fucking break. The truly don't know what they are doing (don't know what to do, don't understand the effects of what they do, etc.).
Faber, the man who called a long term top at 1345 on the S&P
I LOVE THE SMELL OF FED CAPITULATION IN THE MORNING...it smells like...DESTRUCTION!
The Fed has been doing what it does for many years. What is happening, the people are finally waking from their being clueless, only because it has become so egregious in your face, that even a brainwashed, drooling vaccine taking, fluoride drinker zombie is starting to see what is happening to them.
For a long time I have been trying to develop a scenario for a market "super crash" and a reasonable map that would arrive at such a situation. Most investors think that even if things go downhill fast that they will be smart enough to get out of the markets. But what if it hits like the flash crash on steroids?
We know that can't happen because circuit breakers have been put in place to arrest panic style moves, but imagine a market that falls, trade is halted, and the market simply does not reopen for days, or even weeks. We have set up a house of cards based on debt and contagion is the cancer eating at the foundation. the article Flash Crash On Steroids can be found below.
http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html
Maybe Marc, but might be a little too early to call.
Sorry to say I'm starting to think Marc is the clueless one, at least when it comes to getting the big picture.
When the Levy Breaks they ain't no place to go.Go down go down.
Subscribed to Faber's adv. service in 2009. His recommendation then: buy stocks, gold and real estate an hold on for three or four years.
the f___ truth is
The Public Be Suckered
http://patrick.net/forum/?p=1230886
Home prices are set to tank in the California market.
Detroit redux, only this time Nationwide
Ah, Detroit.
The poster boy for big government.
Dude, I live in Thailand. Faber has a huge home and throws a wild party. He loves the Thail women
I once raced him on his moto down a one way street. The guys has big balls!
Dude, I live in Thailand. Faber has a huge home and throws a wild party. He loves the Thail women
I once raced him on his moto down a one way street. The guys has big balls!
"Militias ‘mobilizing’ to support embattled Clark County rancher
From near and wide, armed men are trickling toward Cliven Bundy’s ranch, where the rancher’s fight with the federal government has become a rallying cry for militia groups across the United States.
From near and wide, armed men are trickling toward Cliven Bundy’s ranch, where the rancher’s fight with the federal government has become a rallying cry for militia groups across the United States.
On Wednesday, that dispute teetered at the edge of deadly conflict, when Cliven Bundy’s family members and supporters scuffled with rangers from the Bureau of Land Management sent to protect the federal roundup of Bundy’s cattle on public land.
One of Bundy’s seven sons was shot with a stun gun, and Bundy’s sister was knocked to the ground; but no one was seriously hurt, and no arrests were made.
This is getting better by the day
Health Secretary Sebelius reportedly to resign
"This $hit's about to get REAL!" I've been reading this for 6 years and I'm now believing it. This is the first time in our history that MOST Americans DON't identify with the upper class. They now realize that all of the rules, regulations, taxes, fees, militarized police, tasers, pepper spray, FEMA camps. homeland security billion bullets are meant for them, not someone else.
Oh yeah that's right the Dow dropped to around 1738 and then went to a high of 16600ish.
Oh yeah that's right the Dow dropped to around 1738 and then went to a high of 16600ish.
http://research.stlouisfed.org/fred2/graph/?g=wqK
Federal Debt: Total Public Debt
2013 Q4 $17,351,970,000,000
Quarterly, End of Period, Not Seasonally Adjusted, GFDEBTN, Updated: 2014-03-25 8:21 AM CDT
http://research.stlouisfed.org/fred2/graph/?g=wvD
Effective Federal Funds Rate
2014-03: 0.08 percent
Monthly, Not Seasonally Adjusted, FEDFUNDS, Updated: 2014-04-07 3:51 PM CDT
At the top of the debt pileup is bankruptcy, i.e., a total economic collapse.
Mish reported on LA’s pension crisis today (April 10) and what he considers LA’s inevitable bankruptcy :
“The Los Angeles 2020 Commission studied amongst other things the sorry state of LA's pension mess. In a case of can-kicking extraordinaire, its recommendation was to appoint another commission to further study the problem.”
Please consider Report Finds Los Angeles at Risk of Decline…
Bankruptcy Inevitable
The 2020 report is sure to gather dust like all studies before and after until the inevitable happens. The inevitable is "bankruptcy".
LA is already bankrupt, the only missing ingredient is political recognition of that simple fact.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
damned fingers...
I would bet my wonderdog, Muffy, that L.As' pensioners are, right this second getting their full pension checks, and will continue to do so, for a very very long time.
The 12 primary banks are using the FRNs that they have been receiving for nearly 6 years now to buy the stocks and bonds being liquidated in the CALPERS portfolio, at full, all time high value.
There is only a mythical pension crisis, not an actual one. The FED will see to it that those pensioners get their money.
So Bankruptcy is off the table, and the only reduction that need be made is for all new hires, and I would also bet that new hires are being told those elaborate and lucrative pensions are now a thing of the past. And he pension "Crisis" is being used as leverage to make them understand that various municipalities in LA can no longer afford the do nothing jobs, the lavish perks that unions 'negotiated' in the past.
I lost all respect for Shedlock when he bought the Sandy Hook lie, and started crying out for a repeal of the Second Amendment. He works for the Money Power - he is no friend of liberty.
double post
Who gives a shit about anything anymore! Havent you heard?? http://www.bbc.com/news/health-26885335
I am going to get one implanted on my arm! Cya suckers on the other side!
why would the fed do that? these are very rich parents spoiling their young children by giving them a too generous allowance (which they spend at the company store). in real life these people work for a living, but this family has a money tree, and THE KIDS KNOW IT. this is a bad hollywood movie, of course the Fed will give them money to buy stocks. at some point there is a bit of drama: the kids are just off doing drugs, and the drug dealers keep playing along because mom and dad always come through (or there is a SCANDAL). so please the FED is MOMMY and DADDY and the market is SPOILED RICH KIDS, sometimes daddy divorces mommy, sometimes daddy has a heart attack (how many hollywood endings do you need?) sure some of them are bad, and the kids get what they deserve at least for a little while they have to go to work and pretend to be productive. and then the good kid who always worked hard gets to show his or her stuff. so he or she works for twenty years and makes something of themselves, and then the bad kid shows up again, broker and dissipated, ready to blackmail them over some little thing. so you see crime pays, almost
Jim Grant does a great interview in the Winter 2014 Columbia Bus. School publication "Graham & Doddsville" (could be a Zerohedge article?).
A few quotes from the piece:
"China’s banking assets represent one-third of world GDP, whereas China’s economic output represents only 12% of world GDP. Never before has the world seen the likes of China’s credit bubble."
"The trouble with debt is that it tends to be deflationary. Leveraged firms tend to overproduce in order to generate the revenue to remain solvent." (Grant more fully explains this.)
....so China makes up 45.33% of the world's GDP?
Debt is a stock, GDP is a flow. So no, it doesn't.
"China’s economic output represents only 12% of world GDP". Of course that is when you count enormous amounts of makework, value destruction, and wealth theft in the US and Europe as "GDP".
What proportion of actual global tradeable output does China account for, ie the things that can actually be sold to paydown debt? And what proportion does the US account for?
dup....bad trophs tonight. Sats drifting out of range.
A broken crock.
If you'd said "bloken crock," I'd have given you TWO thumbs up.
If the Stalingrad and Poorsky Index goes back to 900 (fair value) do we still have to support Gay marriage?
I can't figure out how Faber continues to get an audience. He obviously appeals to gloom-and-doomers, and like any stopped clock he will eventually call something right, but he is wrong 99% of the time, and even when he is right, he gets the reasons wrong.
Faber does not understand modern economics or finance one whit. If you are looking for sound investment advice, you should look elsewhere.
Gee, Marc.
Kinda stating the eventual obvious, huh?
Or, another possible theory ...
The Fed knows exactly what it is doing. There are not now nor havee there ever been any coinciidences or accidents (black swans). We are moving on a path that was prophesized long ago and is now being managed.toward its conclusion and the Fed is playing its part in that management. From the idol of Ishtar on Bedlow's Island to the idol of Marduk/Moloch in "the grove" those in power enact the will of their gods. Mystery Babylon with all of its arrogance and perversions will be destroyed and those in power are trying their best to corrupt and destroy as many as possible and bring in the age of everlasting Lucifer.
Most of those involved are simply useful idiots, spouting one thing or another and thinking that they are progressive, conservative or simply righteous. The serpent and his orders do their work. Even the elect are being deceived
Obviously many questions arise.
.... That was quick.