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Marc Faber Warns "The Market Is Waking Up To How Clueless The Fed Is"

Tyler Durden's picture


"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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Thu, 04/10/2014 - 15:02 | 4644369 Pladizow
Pladizow's picture

And Boom goes the Faber!

Thu, 04/10/2014 - 15:03 | 4644374 SilverIsKing
SilverIsKing's picture

If the FED is the market, does it matter that the market is waking up to the fact that the FED is clueless?

Thu, 04/10/2014 - 15:04 | 4644384 Pladizow
Pladizow's picture

Is this a tree falls in the woods thing?

Thu, 04/10/2014 - 15:08 | 4644398 zaphod
zaphod's picture

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.

Thu, 04/10/2014 - 15:13 | 4644410 Say What Again
Say What Again's picture

1823.50 on the ES Baby!  That's the Maginot Line

Thu, 04/10/2014 - 15:18 | 4644454 BaBaBouy
BaBaBouy's picture

The Feddies Have It Under Control...

CRANK UP The HFT Bullshiters... That'll Solve It...

Thu, 04/10/2014 - 15:19 | 4644468 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

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!!!!!!!!!!!!!!!!!!!!!

Thu, 04/10/2014 - 15:22 | 4644504 asteroids
asteroids's picture

Just a steady grind down. No panic. No waterfall. The machines are just walking this market down. There are no humans involved here.

Thu, 04/10/2014 - 15:31 | 4644539 BaBaBouy
BaBaBouy's picture

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.


Thu, 04/10/2014 - 15:38 | 4644569 Dixie Rect
Dixie Rect's picture

And they fuck you in the drive-thru

Thu, 04/10/2014 - 16:35 | 4644797 Supernova Born
Supernova Born's picture

"Earth revolves around the Sun" took a while to catch on too.

Thu, 04/10/2014 - 17:49 | 4645078 ReactionToClose...
ReactionToClosedMinds's picture

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"

Thu, 04/10/2014 - 21:42 | 4645915 SafelyGraze
SafelyGraze's picture

faber arrested for throwing shoe at fed


Thu, 04/10/2014 - 21:51 | 4645950 Citxmech
Citxmech's picture

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. . . 

Thu, 04/10/2014 - 23:20 | 4646204 Supernova Born
Supernova Born's picture

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?

Fri, 04/11/2014 - 00:02 | 4646305 Tall Tom
Tall Tom's picture

The patient does not know if the Doctor was right all along or wrong. Does it matter to the patient at that point?

Fri, 04/11/2014 - 04:59 | 4646593 old naughty
old naughty's picture

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?

Fri, 04/11/2014 - 00:13 | 4646338 weburke
weburke's picture

oh, "the fed is clueless" ? a doctor? fed is clueless ? why read another of his sentences?

Fri, 04/11/2014 - 05:28 | 4646602 HardAssets
HardAssets's picture

FED 'dual mandate' ?

That must be -

- Steal from the public

- Lie to the public

Thu, 04/10/2014 - 15:12 | 4644420 NoDebt
NoDebt's picture

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.

Thu, 04/10/2014 - 22:12 | 4646001 aVileRat
aVileRat's picture

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.

Fri, 04/11/2014 - 01:23 | 4646441 trader1
trader1's picture

ltcm wasn't founded until 1994, and its failure was in 1998.  

how old are you?  

Thu, 04/10/2014 - 15:12 | 4644421 McMolotov
McMolotov's picture

He's predicted twenty-four of the last two market collapses.

Thu, 04/10/2014 - 15:26 | 4644525 Charles Nelson ...
Charles Nelson Reilly's picture

I like those odds...

Thu, 04/10/2014 - 17:20 | 4644964 GOSPLAN HERO
GOSPLAN HERO's picture

Faber called the market bottom in March 2009.

Fri, 04/11/2014 - 00:15 | 4646342 weburke
weburke's picture

he echoed others. period.

Fri, 04/11/2014 - 05:38 | 4646606 HardAssets
HardAssets's picture

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.

Fri, 04/11/2014 - 00:52 | 4646403 HulkHogan
HulkHogan's picture

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. 

Thu, 04/10/2014 - 21:33 | 4645865 q99x2
q99x2's picture

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

Thu, 04/10/2014 - 17:19 | 4644960 malek
malek's picture

Hey yeah, it worked for 5 years right? That's proof it's never going to fail! /s

Thu, 04/10/2014 - 21:34 | 4645886 Redneck Hippy
Redneck Hippy's picture

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?

Thu, 04/10/2014 - 21:44 | 4645925 Keyser
Keyser's picture

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. 

Thu, 04/10/2014 - 21:51 | 4645949 Hovel Downs
Hovel Downs's picture

Hate to say...he was also right about Gold.  

Fri, 04/11/2014 - 02:06 | 4646477 Drifter
Drifter's picture

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.

Thu, 04/10/2014 - 15:20 | 4644481 replaceme
replaceme's picture

Mind officially blown.

Thu, 04/10/2014 - 17:55 | 4645115 Remington IV
Remington IV's picture

I hope he's right

After 26 years of bad calls , he needs the apocalypse , as do my shorts

Thu, 04/10/2014 - 21:06 | 4645808 CrashisOptimistic
CrashisOptimistic's picture

Shorts will never be paid off in an Apocalypse.  The counter parties will have no money.

Buy farmland.

Thu, 04/10/2014 - 22:04 | 4645996 daveO
daveO's picture

That's why metals make so much sense. Some hard metal is better than nothing.

Thu, 04/10/2014 - 22:41 | 4646085 CrashisOptimistic
CrashisOptimistic's picture

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.

Thu, 04/10/2014 - 22:55 | 4646152 tmosley
tmosley's picture

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.

Fri, 04/11/2014 - 00:40 | 4646382 Beam Me Up Scotty
Beam Me Up Scotty's picture

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!!

Thu, 04/10/2014 - 23:39 | 4646267 Bernanke'sDaddy
Bernanke'sDaddy's picture

It's called buying and selling on the black market.

Thu, 04/10/2014 - 23:34 | 4646253 mt paul
mt paul's picture

moose swamps

set out salt blocks..

Thu, 04/10/2014 - 19:14 | 4645474 Landrew
Landrew's picture

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? 

Thu, 04/10/2014 - 21:31 | 4645878 Papasmurf
Papasmurf's picture

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.

Thu, 04/10/2014 - 21:45 | 4645930 Keyser
Keyser's picture

The end of the petrodollar may accelerate that process with or without a printing press. 

Thu, 04/10/2014 - 22:42 | 4646109 Landrew
Landrew's picture

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?

Fri, 04/11/2014 - 00:43 | 4646390 Beam Me Up Scotty
Beam Me Up Scotty's picture

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.

Thu, 04/10/2014 - 23:03 | 4646176 Crash Overide
Crash Overide's picture

BREAKING NEWS: Zombie apocalypse canceled, not enough brains in America left to eat.

Fri, 04/11/2014 - 04:07 | 4646567 WSP
WSP's picture

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!

Thu, 04/10/2014 - 15:02 | 4644370 ebworthen
ebworthen's picture

Will we see a VIX slam in the last hour?

Saving the NASDAQ from breaking 4,050?

Thu, 04/10/2014 - 15:04 | 4644380 SilverIsKing
SilverIsKing's picture

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.

Thu, 04/10/2014 - 15:06 | 4644392 SilverIsKing
SilverIsKing's picture


Thu, 04/10/2014 - 15:11 | 4644413 ebworthen
ebworthen's picture

I'm hoping for 404 but...

Thu, 04/10/2014 - 15:20 | 4644425 Say What Again
Say What Again's picture

Select * from Fed Where Clue = "NONE"

Thu, 04/10/2014 - 21:52 | 4645941 Keyser
Keyser's picture

How about Delete from Fed where Clueless = 'None'



Fri, 04/11/2014 - 00:04 | 4646310 rabetwoirr
rabetwoirr's picture

Drop table fed;


Thu, 04/10/2014 - 15:22 | 4644500 medium giraffe
medium giraffe's picture

404 Error: Economic miracle not found.

Thu, 04/10/2014 - 15:32 | 4644549 ebworthen
ebworthen's picture

Precisely, "broken or dead link":

Fri, 04/11/2014 - 03:55 | 4646558 Oliver Jones
Oliver Jones's picture

More like "missing link". :)

Thu, 04/10/2014 - 15:07 | 4644393 Winston Churchill
Winston Churchill's picture

Dollar or stocks.They have shown they can't do both at once.

Today they are losing on both.

Thu, 04/10/2014 - 15:13 | 4644423 HRamos_3
HRamos_3's picture

So... is that a doubt i'm seeing there?

I suppose you forgot your <sarc> tag.

Thu, 04/10/2014 - 15:38 | 4644568 HRamos_3
HRamos_3's picture

Till MA50 and beyond!

Thu, 04/10/2014 - 15:02 | 4644371 Headbanger
Headbanger's picture

You ain't seen notin yet!

Thu, 04/10/2014 - 15:02 | 4644372 Greenskeeper_Carl
Greenskeeper_Carl's picture

I guess we will see if the algos stop buying it as well...

Thu, 04/10/2014 - 15:03 | 4644376 Stoploss
Stoploss's picture

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.

Thu, 04/10/2014 - 15:03 | 4644377 HRamos_3
HRamos_3's picture

Ummm... I've heard that before somewhere...

Thu, 04/10/2014 - 15:04 | 4644381 Big Corked Boots
Big Corked Boots's picture

Soon, very soon, the markets will see the pure genius of Janet Yellen.

/sarc if you are incredibly dense.

Thu, 04/10/2014 - 15:08 | 4644395 fonzannoon
fonzannoon's picture

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.

Thu, 04/10/2014 - 15:12 | 4644419 seek
seek's picture

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.

Thu, 04/10/2014 - 15:14 | 4644441 NoDebt
NoDebt's picture

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.

Fri, 04/11/2014 - 06:44 | 4646654 Vice
Vice's picture

Thank you for making my morning LOL

Thu, 04/10/2014 - 22:38 | 4645812 CrashisOptimistic
CrashisOptimistic's picture

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.

Thu, 04/10/2014 - 15:10 | 4644399 Gaius Frakkin' ...
Gaius Frakkin&#039; Baltar's picture

Someone forget to turn on the algos? Their liquidity generation is sorely missed.

Thu, 04/10/2014 - 15:09 | 4644405 drbill
drbill's picture

Don't worry folks. Nothing to see here. Move along. Move along....

Thu, 04/10/2014 - 15:10 | 4644409 the wet spot
the wet spot's picture

Question - What is Faber's record so far and for how long has he warned of an imminent market crash?

Thu, 04/10/2014 - 15:18 | 4644466 astoriajoe
astoriajoe's picture

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....

Thu, 04/10/2014 - 15:25 | 4644503 seek
seek's picture

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.

Thu, 04/10/2014 - 17:21 | 4644968 aardvarkk
aardvarkk's picture

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....

Thu, 04/10/2014 - 17:46 | 4645068 seek
seek's picture

There's way too much paperwork to own either of those in the US, so I go with substitutes that don't require documentation.

Thu, 04/10/2014 - 15:11 | 4644415 starman
starman's picture


Thu, 04/10/2014 - 15:11 | 4644418 Caracalla
Caracalla's picture

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

Thu, 04/10/2014 - 15:15 | 4644444 curbyourrisk
curbyourrisk's picture

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??



Thu, 04/10/2014 - 15:16 | 4644450 unplugged
unplugged's picture

fixed it Mark...

Marc Faber Warns "The Market Is Waking Up To How Clueless, Corrupt, Criminal, & Treasonist The Fed Is"
Thu, 04/10/2014 - 21:51 | 4645953 Woodhippie
Woodhippie's picture

"Corrupt, Criminal, & Treasonist", for sure.  Clueless?  Not a chance.  These people have an agenda and they are doing just fine.

Thu, 04/10/2014 - 15:16 | 4644451 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

One day this fucker will be right

Thu, 04/10/2014 - 21:12 | 4645817 CrashisOptimistic
CrashisOptimistic's picture

The next day the water shuts off into your house or apartment.

Thu, 04/10/2014 - 15:17 | 4644455 ebworthen
ebworthen's picture

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?

Thu, 04/10/2014 - 15:58 | 4644634 WillyGroper
WillyGroper's picture

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.

Thu, 04/10/2014 - 15:18 | 4644465 unplugged
unplugged's picture

<--  S&P 2000

<-- S&P 1500

which comes first?   my bet:   2000

Thu, 04/10/2014 - 17:23 | 4644971 malek
malek's picture

Is that a bet on under-reported inflation or on anything fundamental?

Thu, 04/10/2014 - 15:18 | 4644467 medium giraffe
medium giraffe's picture

Good job the investors have no idea what they're doing either then.  This type of shit should be good for a short squeeze.

Thu, 04/10/2014 - 15:30 | 4644542 yogibear
yogibear's picture

It's the same game, over and over. Reel the shorts in and then ramp it up.

Like taking candy from a baby.

Thu, 04/10/2014 - 15:24 | 4644513 JailBank
JailBank's picture

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.

Thu, 04/10/2014 - 16:11 | 4644684 pies_lancuchowy
pies_lancuchowy's picture

first step - buy a Yarmulke

Thu, 04/10/2014 - 15:26 | 4644522 yogibear
yogibear's picture

If keeps saying it eventually he will be right.

Everytime it hits the bottom of the bottom channel it looks like a buy.

Thu, 04/10/2014 - 15:26 | 4644523 tennisfan2
tennisfan2's picture

@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.

Thu, 04/10/2014 - 15:35 | 4644562 Fukushima Sam
Fukushima Sam's picture

Use AdBlock, donate ZH $10 - $20 a year, problem solved.

Thu, 04/10/2014 - 15:46 | 4644593 tennisfan2
tennisfan2's picture

already have it enabled doesnt stop in page auto play Ads

Thu, 04/10/2014 - 21:29 | 4645873 Yen Cross
Yen Cross's picture

  Adblock Edge. I use it and nothing gets through. You can also open the addon and create custom filters.

Thu, 04/10/2014 - 21:49 | 4645936 Woodhippie
Woodhippie's picture

Works with Firefox ...

Thu, 04/10/2014 - 15:27 | 4644532 Zymurguy
Zymurguy's picture

Deer in headlights pic please!

Thu, 04/10/2014 - 15:32 | 4644547 supersajin
supersajin's picture

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

Thu, 04/10/2014 - 15:45 | 4644592 marathonman
marathonman's picture

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!

Thu, 04/10/2014 - 23:53 | 4646293 HardlyZero
HardlyZero's picture

All Hail Caligula ! (and his horse) 

Thu, 04/10/2014 - 15:55 | 4644621 BeerMe
BeerMe's picture

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.

Thu, 04/10/2014 - 16:15 | 4644706 New American Re...
New American Revolution's picture

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 and "The Science of Liberty: American Reformation & Renaissance", coming out in ebook form FREE, by late April/early May.  SERFS UP AMERICA!

Thu, 04/10/2014 - 16:16 | 4644711 alangreedspank
alangreedspank's picture

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...

Thu, 04/10/2014 - 21:03 | 4645801 novictim
novictim's picture

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.

Thu, 04/10/2014 - 16:32 | 4644780 magnumpk
magnumpk's picture

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.).  

Thu, 04/10/2014 - 16:50 | 4644856 dcohen
dcohen's picture

Faber, the man who called a long term top at 1345 on the S&P

Thu, 04/10/2014 - 16:53 | 4644866 BullyBearish
BullyBearish's picture


Thu, 04/10/2014 - 18:27 | 4645278 jjsilver
jjsilver's picture

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.

Thu, 04/10/2014 - 19:42 | 4645580 AdvancingTime
AdvancingTime's picture

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.


Thu, 04/10/2014 - 20:01 | 4645655 Who was that ma...
Who was that masked man's picture

Maybe Marc, but might be a little too early to call.

Thu, 04/10/2014 - 20:45 | 4645771 eddiebe
eddiebe's picture

Sorry to say I'm starting to think Marc is the clueless one, at least when it comes to getting the big picture.

Thu, 04/10/2014 - 20:51 | 4645779 foxmuldar
foxmuldar's picture

When the Levy Breaks they ain't no place to go.Go down go down. 

Thu, 04/10/2014 - 20:56 | 4645784 rodonmeguro
rodonmeguro's picture

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.

Thu, 04/10/2014 - 20:56 | 4645786 DOGGONE
DOGGONE's picture

the f___ truth is

The Public Be Suckered

Thu, 04/10/2014 - 20:59 | 4645792 novictim
novictim's picture

Home prices are set to tank in the California market.

Thu, 04/10/2014 - 21:09 | 4645813 rodonmeguro
rodonmeguro's picture

Detroit redux, only this time Nationwide

Thu, 04/10/2014 - 22:41 | 4646108 Anusocracy
Anusocracy's picture

Ah, Detroit.

The poster boy for big government.

Thu, 04/10/2014 - 21:17 | 4645832 pachanguero
pachanguero's picture

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!

Thu, 04/10/2014 - 21:17 | 4645833 pachanguero
pachanguero's picture

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!

Thu, 04/10/2014 - 21:28 | 4645868 Bill of Rights
Bill of Rights's picture

 "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.

Thu, 04/10/2014 - 21:59 | 4645978 Bill of Rights
Bill of Rights's picture

This is getting better by the day


Health Secretary Sebelius reportedly to resign

Thu, 04/10/2014 - 22:34 | 4646077 BullyBearish
BullyBearish's picture

"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.

Thu, 04/10/2014 - 23:49 | 4646287 VanillaSkyGuy
VanillaSkyGuy's picture

Oh yeah that's right the Dow dropped to around 1738 and then went to a high of 16600ish.

Fri, 04/11/2014 - 00:03 | 4646306 VanillaSkyGuy
VanillaSkyGuy's picture

Oh yeah that's right the Dow dropped to around 1738 and then went to a high of 16600ish.

Fri, 04/11/2014 - 00:05 | 4646312 polo007
polo007's picture

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

Effective Federal Funds Rate

2014-03: 0.08 percent

Monthly, Not Seasonally Adjusted, FEDFUNDS, Updated: 2014-04-07 3:51 PM CDT

Fri, 04/11/2014 - 00:40 | 4646383 JR
JR's picture

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

A scathing verdict on Los Angeles’s civic health that was delivered in a one-two punch — the second on Wednesday — by a committee of lawyers, developers, labor leaders and former elected officials who make up something of the Old Guard here. The Los Angeles 2020 Commission presented a catalog of failings that it said were a unique burden to the city: widespread poverty and job stagnation, huge municipal pension obligations, a struggling port and tourism industry and paralyzing traffic that would not be eased even with a continuing multibillion-dollar mass transit initiative…
On what is widely seen as perhaps the biggest threat to the long-term fiscal stability of the city — the crushing cost of pensions and worker benefits — the commission recommended appointing another commission.

Bankruptcy Inevitable

The 2020 report is sure to gather dust like all studies before and after until the inevitable happens. The inevitable is "bankruptcy".

  1. The only conceivable way LA can meet its pension obligations is to reduce them. 
  2. Given that unions will not negotiate, the only conceivable way to reduce them is bankruptcy.

LA is already bankrupt, the only missing ingredient is political recognition of that simple fact.

Mike "Mish" Shedlock

Fri, 04/11/2014 - 06:31 | 4646636 Comte d'herblay
Comte d&#039;herblay's picture

damned fingers...


Fri, 04/11/2014 - 06:31 | 4646637 Comte d'herblay
Comte d&#039;herblay's picture

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. 



Fri, 04/11/2014 - 12:58 | 4647962 Lin S
Lin S's picture

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.

Fri, 04/11/2014 - 00:41 | 4646385 JR
JR's picture

double post

Fri, 04/11/2014 - 00:05 | 4646315 ManWithaPlan
ManWithaPlan's picture

Who gives a shit about anything anymore! Havent you heard??

I am going to get one implanted on my arm! Cya suckers on the other side!

Fri, 04/11/2014 - 00:22 | 4646355 the grateful un...
the grateful unemployed's picture

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

Fri, 04/11/2014 - 00:30 | 4646368 chindit13
chindit13's picture

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.)


Fri, 04/11/2014 - 01:03 | 4646419 HulkHogan
HulkHogan's picture China makes up 45.33% of the world's GDP? 

Fri, 04/11/2014 - 03:22 | 4646535 SuperCycleBear
SuperCycleBear's picture

Debt is a stock, GDP is a flow. So no, it doesn't.

Fri, 04/11/2014 - 06:48 | 4646660 Bazza McKenzie
Bazza McKenzie's picture

 "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?

Fri, 04/11/2014 - 00:35 | 4646369 chindit13
chindit13's picture

dup....bad trophs tonight.  Sats drifting out of range.

Fri, 04/11/2014 - 01:02 | 4646418 zebrasquid
zebrasquid's picture

A broken crock.

Fri, 04/11/2014 - 02:20 | 4646495 stopthejunk1
stopthejunk1's picture

If you'd said "bloken crock," I'd have given you TWO thumbs up.

Fri, 04/11/2014 - 01:09 | 4646428 Clowns on Acid
Clowns on Acid's picture

If the Stalingrad and Poorsky Index goes back to 900 (fair value) do we still have to support Gay marriage?

Fri, 04/11/2014 - 02:19 | 4646494 stopthejunk1
stopthejunk1's picture

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.

Fri, 04/11/2014 - 03:34 | 4646546 lakecity55
lakecity55's picture

Gee, Marc.

Kinda stating the eventual obvious, huh?

Fri, 04/11/2014 - 04:59 | 4646592 Notsobadwlad
Notsobadwlad's picture

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.

Fri, 04/11/2014 - 05:33 | 4646604 El Hosel
El Hosel's picture

.... That was quick.

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