German Finance Minister Admits To "New Bubbles" & "Excessive Confidence"

Tyler Durden's picture

Last week the Fed's Janet Yellen warned of a small cap bubble and now German Finance Minister Wolfgang Schaeuble says in a speech in Munich today that "monetary policy must reduce its dominant role" to allow a return to "reasonable" interest rates. He did not stop there though...

  • *SCHAEUBLE SAYS RATES NOT FULFILLING THEIR ECONOMIC FUNCTION NOW
  • *SCHAEUBLE: FINANCIAL MARKETS HAVE ALMOST 'EXCESSIVE CONFIDENCE'
  • *SCHAEUBLE SAYS MARKET LIQUIDITY POINTS TO NEW BUBBLES

Don't fight the Fed... or the German finance minister... (though with the DAX and S&P at record highs today, he must be talking about bonds or Russian stocks as the bubble that is excessively confident)

 

Now - as a gentle reminder - where have we heard all this before...

The Financial Times, October 1992... Japan's Minister for International Trade admits...

"We became overconfident, too bullish. We should learn not to become too pleased with ourselves. The Japanese are a very disciplined people, but they became intoxicated by the bubble and they somehow forgot their discipline."

Ring any bells?

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williambanzai7's picture

.

Here comes the Euro Temptations

The source of the market gyrations

Everything's fine

Then Wolfgang sings "NEIN"

Their new dance is "Manipulations"

The Limerick King

Arius's picture

dah, dah da ... why did you bail out Greece and started this all fiasco???

If Germany was fiscaly responsible none of this would have ever happen ... now it is too late to warn anyone, when you had a chance and the responsibility to act you did shit ... now you blame US and everybody just to save your skin ... shame!

Stoploss's picture

Somebody tell Wolfie, there's no stopping QE, and low rates are the new forever normal, they can never ever go up.

 

 

That is all..

NotApplicable's picture

Actually, I think he's saying this in order to appear like a hawk, all that he can become more dovish with his actions.

words <> actions

Sauerkraut-Opinion's picture

As Ottmar Issing - self-proclaimed father of the "Euro", former chairman of the EZB and Goldman Sachs Advisor - explained in 2010: Starting with bailouts means a dambreak for the Euro.

Jack Sheet's picture

If you can pronounce the guy's name, you get .1% more on your bank CDs.

IndyPat's picture

rhymes w/ "goobler"...i think.

anyway. im going with it. Ja!

intric8's picture

exactly the point, its mostly whispered and admitted behind closed doors at fed meetings.

Recently, yellen said that "broad metrics" dont indicate the presence of any bubbles!

Forget total honesty. How about some fucking consistency out of these guys? Right or wrong.

TeamDepends's picture

My, Red Riding Hood, what nice bubbles you have.

IndyPat's picture

IF I had a tumor, I'd name it SCHAEUBLE-YELLEN...

AdvancingTime's picture

Janet Yellen has been head of the Federal Reserve bank long enough that we no longer need to speculate as to her job performance. As we begin to critique her ability to perform we must remember perception is often just as important as reality. Another issue that comes into play is how you stack up or compare to the person who held the position previously, this often extends to style as much as it does to substance.

As expected it appears Janet Yellen has chosen to take us down the same the rabbit hole as Bernanke on a journey to prove that if we just continue doing what is not working, all will turn out fine. More on Yellen as the head of the Federal reserve in the article below.

http://brucewilds.blogspot.com/2014/05/yellens-job-critique.html

NotApplicable's picture

You know, you might write things worth reading, but at this point, you're no different than that pathetic "angrysinner" blog.

Remember, the more you pump, the more you're a chump.

JR's picture

“I predict her lack of ‘fans’ and strong supporters will undermine and erode Yellen's ability to carry out her role and garner cooperation in the future…being confrontational, clueless, or downright dowdy…

“As expected it appears Janet Yellen has chosen to take us down the same the rabbit hole as Bernanke on a journey to prove that if we just continue doing what is not working, all will turn out fine. Caution, this path leads down, and down, and down, farther and deeper than most can ever imagine. If asked to critique "Old Yellar" now playing in theaters everywhere I would by way of the reasoning above have to give her the maximum two solid thumbs down.”

Now what can be wrong with that, NonApplicable? TV viewers are a fickle lot; don't underestimate their tendency to throw tomatoes if turned off by Dowdy Jan.

ebworthen's picture

Dr. Strangelove is at it again.

So when they crash things again - they'll have to rescue the TBTF all over again.

Schaeuble is just ensuring the primacy of Central Banks doing the bidding of their bankster masters.

"Baffle 'em with Bullshit" to cement the "legitimacy" of Central Banking instead of markets and sound money.

Fix-ItSilly's picture

Where have we heard this before?  Greenspan's "irrational exuberance".

Years later came losses after many profits.

So which reference point applies to now?

Youri Carma's picture

Schaeble not so strange after all …

The Reich's picture

Thus spoke Uber-Schaeuble...

BullyBearish's picture

Yellen the felon...in the making

I Write Code's picture

Yeahbut this time it's the government buying all the tulips.

I suppose there are historical parallels in Zimbabwe and Weimar and probably some medieval European banks, but we is way out on the periphery man, we is stoned, immaculate, and ironically the choomboy in the White House is only peripherally (!) responsible, 98% of this would have gone about the same even if McCain or Romney had been immaculated.

falak pema's picture

Meanwhlle Draghi prepares the Euro world for "pseudo QE" and negative rates. 

Eurozone has Dracula's ghost breathing down its neck; escaped from his eerie castle now up for sale; and his breath smells of deflation whence the move to negative rates and "unconventional means"; do "what it takes" to pump up South Side Euro economies.

What will Merkel say on this; I think her eyes are now glued to Ukraine, World Football cup and upcoming Euro elections.

I don't know in which order.

Maybe we should ask Herr Schaeuble; or even Berlusconi who is looking after those "forget me not" ladies when he is not banging his bunga brigade, as vengeful compensation for singing "ole sole mio" to the more delusional than Janet Yelling. 

http://www.businessinsider.com/r-exclusive-ecb-readies-package-of-rate-c...