Deutsche Bank: "Perhaps The Fed And Other Central Banks Are Controlling The Market Too Much These Days"

Tyler Durden's picture

Yesterday we showed what happens when the Fed takes central-planning a bit too far and leads to a market in which even Fed members say is too manipulated.

Today, it's Deutsche Bank's turn to voice a lament on the topic of uber-manipulated, rigged markets. From Jim Reid:

Perhaps the Fed and other central banks are controlling the market too much these days with their guidance. In the old days central banks used to like to create an element of surprise to ensure that markets didn't become complacent. With the crisis fresh in people's minds, with the stock of debt still huge and with the recovery still so uncertain they feel they cannot risk creating too much uncertainty at the moment. The risk to this strategy is clearly that bubbles can build with so much central bank visibility and also that if they do have to change course suddenly it could create more problems due to the surprise factor in markets positioned for stability. Anyway for now low vol rules.

The irony, of course, is that by now "people" know very well that the market crashes when the Fed manipulates it "too much" or as the case is now - is the only price setter - which is why the more the Fed determines what the closing price of the S&P is on any given day, the less actual market participants remain, until finally one block of spoos ends up moving the S&P by basis points, and why market volumes are as pathetic as they are.

In the meantime, central banks can trade with each other: everyone else is happy to sit back, consume popcorn and watch as artificially depressed vol plunges to new all time lows only to blow up as it did last time when the central banks inevitably lose control as they always do. Rinse. Repeat.

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Hippocratic Oaf's picture

Douche Bank 'finally' figures it out.


Oh regional Indian's picture

There are no free markets.

The only Open thing is A market manipulating entity.

That really says it all. 

FO mc!

nope-1004's picture

I LOL'd when I read this headline.  LMFAO.... ya think, Douche Bank?


WhyDoesItHurtWhen iPee's picture

Perhaps Douche Nozzle Bank is part of the problem (70 trill derivitives). 

pods's picture

Perhaps monkeys will fly out of my butt?

Guidance? I would say the billions in QE per month and NIRP has a bit more of an effect than their jawboning, but call me old fashioned.


ParkAveFlasher's picture

DATE: May xx, 2014
TO: All Tenants
RE: Single Tenant Evacuation Drill
FROM: Building Management
Please be advised that on Thursday May 22, 2014 at approximately 1:30pm, FDIC, a tenant in the building, will be conducting a company emergency evacuation drill whereby their entire company will be evacuating the building onto 33rd street at that time.
If you have any questions or concerns, please contact xxx, Assistant Director of Operations at or x, Manager of Tenant Services at
We thank you in advance for your cooperation.

Bindar Dundat's picture

No shit Sherlock!  The squareheads are in trouble!

john39's picture

where are things heading if tptb stay in control:

10. When we ascend the throne of the world all these financial and similar shifts, as being not in accord with our interests, will be swept away so as not to leave a trace, as also will be destroyed all money markets, since we shall not allow the prestige of our power to be shaken by fluctuations of prices set upon our values, which we shall announce by law at the price which represents their full worth without any possibility of lowering or raising.

11. We shall replace the money markets by grandiose government credit institutions, the object of which will be to fix the price of industrial values in accordance with government views. These institutions will be in a position to fling upon the market five hundred millions of industrial paper in one day, or to buy up for the same amount. In this way all industrial undertakings will come into dependence upon us. You may imagine for yourselves what immense power we shall thereby secure for ourselves ....

Arius's picture

you and me know it ... and deutche just figured it out ???  okay, whatever ..


me thinks part of the plan ... slowly, one by one... weak up the sheep

cowdiddly's picture

Oil can never leave $100/bbl, gold can never be more than 1300 silver more than 20, the naz will always be 4000, the yen always 100:1, USD index never below 79 no matter how much we print, Eur never above 1.40, Interest rates alway at zero. What it's not working? LOL

icanhasbailout's picture

your winnings erm I mean bailout, sir

icanhasbailout's picture

Oh, and here's my latest anti-central-banking screed, "Negative Interest Rates Perpetuate the Depression".


Hope you all enjoy it! ZHer input very welcome.

GolfHatesMe's picture

Signed by    N.O. Shitsherlock, SVP Deutsche Bank

Mr.Sono's picture

catapult is ready, but just a little more would make it phenomenal

disabledvet's picture

DB is Germany (see below) and I think the word is "capitulate" indeed.

ZH Snob's picture

It will be curious to watch Germany move out of the western BIS-CONTROLLED camp and into the BRIC's.  This surrender of db is the first visible step. There will be many more.

LawsofPhysics's picture

55 billion per month still being directly monetized by the Fed.  July looks to be very interesting with respect to settling several issues regarding international monetary policy and international trade arragnements.

Tick tock motherfuckers...

eclectic syncretist's picture

U.S. House of Representative Bill H.R. 2847 goes into full effect July 1st.  Some are claiming it will lead to a collapse in the value of the dollar.

eclectic syncretist's picture

Here is what foreign banks and foreign account holders will be subjected to starting July 1, as per HR 2847


The Internal Revenue Code of 1986 is amended by inserting after chapter 3 the following new chapter:

Chapter 4: Taxes To enforce reporting on certain foreign accounts Sec. 1471. 

Withholdable payments to foreign financial institutions. Sec. 1472. 

Withholdable payments to other foreign entities. Sec. 1473. 

Definitions. Sec. 1474. 

Special rules. 1471.

Withholdable payments to foreign financial institutions

(a) In general In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection

(b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment. (b) Reporting requirements, etc (1) In general The requirements of this subsection are met with respect to any foreign financial institution if an agreement is in effect between such institution and the Secretary under which such institution agrees—

(A) to obtain such information regarding each holder of each account maintained by such institution as is necessary to determine which (if any) of such accounts are United States accounts,

(B) to comply with such verification and due diligence procedures as the Secretary may require with respect to the identification of United States accounts,

(C) in the case of any United States account maintained by such institution, to report on an annual basis the information described in subsection (c) with respect to such account,

(D) to deduct and withhold a tax equal to 30 percent of— (i) any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and (ii) in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under paragraph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection,

(E) to comply with requests by the Secretary for additional information with respect to any United States account maintained by such institution, and

(F) in any case in which any foreign law would (but for a waiver described in clause (i)) prevent the reporting of any information referred to in this subsection or subsection (c) with respect to any United States account maintained by such institution— (i) to attempt to obtain a valid and effective waiver of such law from each holder of such account, and (ii) if a waiver described in clause (i) is not obtained from each such holder within a reasonable period of time, to close such account. Any agreement entered into under this subsection may be terminated by the Secretary upon a determination by the Secretary that the foreign financial institution is out of compliance with such agreement.

(2) Financial institutions deemed to meet requirements in certain cases A foreign financial institution may be treated by the Secretary as meeting the requirements of this subsection if—

(A) such institution— (i) complies with such procedures as the Secretary may prescribe to ensure that such institution does not maintain United States accounts, and (ii) meets such other requirements as the Secretary may prescribe with respect to accounts of other foreign financial institutions maintained by such institution, or

(B) such institution is a member of a class of institutions with respect to which the Secretary has determined that the application of this section is not necessary to carry out the purposes of this section.

(3) Election to be withheld upon rather than withhold on payments to recalcitrant account holders and nonparticipating foreign financial institutions In the case of a foreign financial institution which meets the requirements of this subsection and such other requirements as the Secretary may provide and which elects the application of this paragraph—

(A) the requirements of paragraph (1)(D) shall not apply,

(B) the withholding tax imposed under subsection (a) shall apply with respect to any withholdable payment to such institution to the extent such payment is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection, and

(C) the agreement described in paragraph (1) shall— (i) require such institution to notify the withholding agent with respect to each such payment of the institution’s election under this paragraph and such other information as may be necessary for the withholding agent to determine the appropriate amount to deduct and withhold from such payment, and (ii) include a waiver of any right under any treaty of the United States with respect to any amount deducted and withheld pursuant to an election under this paragraph. To the extent provided by the Secretary, the election under this paragraph may be made with respect to certain classes or types of accounts of the foreign financial institution.

(c) Information required To be reported on United States accounts

(1) In general The agreement described in subsection (b) shall require the foreign financial institution to report the following with respect to each United States account maintained by such institution:

(A) The name, address, and TIN of each account holder which is a specified United States person and, in the case of any account holder which is a United States owned foreign entity, the name, address, and TIN of each substantial United States owner of such entity.

(B) The account number.

(C) The account balance or value (determined at such time and in such manner as the Secretary may provide).

(D) Except to the extent provided by the Secretary, the gross receipts and gross withdrawals or payments from the account (determined for such period and in such manner as the Secretary may provide).

Comte d'herblay's picture

Well I'm short the dollar at 81 most times.


So I should sell my prettiest nubile 18 yr old daughter, get a reverse mortgage on the house, dump all my PMs, the condos in ASpen, St. BArt's, and Monaco, cash in my casino chips, borrow every cent I can on the cash prortion of my credit cards, hold off paying any bills until I am liened, don't send in any taxes I owe, and short some more dollars with all of that pelf at least until July 4th?

Sounds like a plan.

PR Guy's picture

It's Tuesday. I can't remember - do I buy or sell on Tuesday?

nuclearsquid's picture

Did they close on all those Qatari billions yet?  Does this mean they have more 'flexibility' now?


spekulatn's picture

No worries. Pretty soon we won't have to decide.



beavertails's picture

Crony Capitalistism has made us into Fascist Communisits

Dr. Engali's picture

It's funny how we just now start getting this stuff from the banks five years later. It's almost as if there is an agenda....

Grouchy Marx's picture

There is an agenda, and it is to distance oneself from a scandalous involvement by alerting the world at the last possible moment of the pending repercussions. 

When the bottom falls out DB can point to such statements and say that they saw it coming and they warned us.

Everybodys All American's picture

From a trading standpoint this one way up directional market does not exactly increase trading desk activity. I know many firms trading desks are downsizing because there simply isn't enough activity.  No one dare short this market and that's what the Fed has created through this blatant manipulation.

El Hosel's picture

Moar is never too much. Bitchez, free Money Capitalism is the path to 1% prosperity.

Grouchy Marx's picture


A wimpy way to state the bloody obvious.

orangegeek's picture

This market is being propped up because it's the institutions that are stuck with their own inventory - no retail bagholders this time around.


Volume is a joke.  MSM pumping the growth meme.  And it's not working.  LMFAO!!!!!!!


ZH and the like have changed the fatcat bankster ripoff process.  Hello NWO.

f16hoser's picture

and in other news; German Pot was overheard calling an American Kettle "Black"

holdbuysell's picture

It's telling that the CBs have to be explicit to ensure the markets are docile. Remember no failures can be tolerated for we know gross becomes net at that moment. Thus surprises that might cause even a sneeze in the derivatives market won't be tolerated.

JenkinsLane's picture

Paging Kevin Henry

Rainman's picture

Financial manipulation and repression must continue . There is no other plan. There is no backup plan .

moneybots's picture

"Perhaps the Fed and other central banks are controlling the market too much these days with their guidance."


There is no perhaps.  How many times has it been said that command economies don't work?  Yet they kep doing it anyway.

Offthebeach's picture

Looks like a few shitgum accidents are going to be hitting the headlines.

moneybots's picture

"In the old days central banks used to like to create an element of surprise to ensure that markets didn't become complacent."


If the market wasn't complacent, the market wouldn't have made the FED's goal of S&P 1900 by now. 

Da chief's picture

I think this "Forex Kong" guy works withing the Central Banking Sytme as his day to day calls, and trades seem almost "too accurate".

The Central Banks are certainly running the show these days, but as I've come to understand now..need to pull things in a bit here short / medium term


I get real time trades from this "currency nut"

BeetleBailey's picture

good link Chief....he's been accurate?

Da chief's picture

Crazy accurate with 700 pips banked here today, being short for several weeks and now seeing AUD finally take the plunge.


The guy was short SP 500 on cue, called the turn and top in Nikkei , and has an amazing grasp on how things all fit together" intermarket.



Comte d'herblay's picture

Is it really worth paying money for it?

BeetleBailey's picture

29.99 a month....and the Chief here has the results.....shill or not....700 pips is a pretty good haul.....worth the look-see.....that's pretty cheap.