• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Fed Complacency Watch

Tyler Durden's picture


It would appear the mantra of "don't fight the Fed" is one that only applies when they are saying "buy stocks." As we have been consistently discussing, yesterday's minutes exposed some concerns: "the low level of expected volatility implied by some financial market prices might also signal an increase in risk appetite" and thus complacency and Fed's Fisher open "concern at almost no volatility in markets." So while J-Yell and her buddies see no bubbles... we thought the following chart, which is 'the sum of all volatilities' across FX, equity, and interest rate markets, might help...



Chart: Bloomberg

Your rating: None

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Thu, 05/22/2014 - 15:33 | 4785976 katwoman
katwoman's picture

Looks perfectly safe to me...

Thu, 05/22/2014 - 15:50 | 4786072 knukles
knukles's picture

Ain't no bubble, not enough volatility...
Pump It Up

Thu, 05/22/2014 - 18:50 | 4786763 Goldilocks
Goldilocks's picture

The Black Eyed Peas - Pump It
http://www.youtube.com/watch?v=ZaI2IlHwmgQ (3:45)

M.A.R.S. - Pump Up The Volume - - retrovidz.blogspot.com/
http://www.youtube.com/watch?v=eGPhUr-T6UM (4:07)

Technotronic - Pump Up The Jam
http://www.youtube.com/watch?v=9EcjWd-O4jI (3:42)

Thu, 05/22/2014 - 15:34 | 4785980 buzzsaw99
buzzsaw99's picture

fuck dick fisher

Thu, 05/22/2014 - 15:39 | 4786005 what's that smell
what's that smell's picture

i looked in my panties and i saw a "bush of worry" so i told myself to buy the flipp'n dip.

it kinda works like this: "i'll pretend to be worried because EVERYBODY KNOWS bull markets climb walls of worry"


Thu, 05/22/2014 - 15:33 | 4785981 HedgeAccordingly
HedgeAccordingly's picture

It is fine...Russian Oligarch Alexey Mordashov Comfortable Doing Business In The US...


Thu, 05/22/2014 - 15:35 | 4785983 NoDebt
NoDebt's picture

I appreciate the Fed's "concern" over a problem they themselves created.  We'll take that into account before we drop the blade on the guillotine.

Thu, 05/22/2014 - 15:36 | 4785996 hugovanderbubble
hugovanderbubble's picture


Thu, 05/22/2014 - 15:44 | 4786037 fonzannoon
fonzannoon's picture

Up until last may almost all of my portfolio's were comprised of dividend paying stocks, bonds and gold. Then last year all three of them got hammered. I had to make a choice. Sell them and get into the broader market or stay and risk a run up in interest rates clobbering the portfolio's. I flinched and unloaded most those positions and bought the broader market and some riskier areas as well. It worked magnificiently. Helped me recover the hit I took in the interest rate sensitive assets. Then this year the broader market gets whacked to start off the year, momo gets annihilated and of course yields drop and here we are again. So I spent a good portion of this year reversing course and loading back up on what I used to own (except gold, which is completely useless and should only be bought in phyz). This time around CNBC and their "rates are gonna rise" crowd can go fuck themselves. I don't care if the 10yr goes back to 3%. I ain't sellin, and I will only buy cheaper div paying stawks with a higher yield. 

That is what the fed is fighting right now. No one is selling. No one believes rates will go up. There is no more volatility because this time everyone will cling to their div payers for dear life knowing nirp is on the way.

Thu, 05/22/2014 - 15:46 | 4786045 LawsofPhysics
LawsofPhysics's picture

In real terms, NIRP has been around for a while...

Thu, 05/22/2014 - 15:49 | 4786070 fonzannoon
fonzannoon's picture

This is what Nirp sounds like in the junk bond market


Thu, 05/22/2014 - 16:04 | 4786107 Bay of Pigs
Bay of Pigs's picture

You are correct. Rates aren't going anywhere.

The short side of the market is lying at the bottom of the Mariana Trench.

Thu, 05/22/2014 - 15:37 | 4786000 Rainman
Rainman's picture

I'll bet a hundred bucks on something just to be able to call myself a market maker.

Thu, 05/22/2014 - 15:40 | 4786013 Atomizer
Atomizer's picture

Buying dog meat so you can invest in specultivate GDP forecast. Central Plannig 101.

Thu, 05/22/2014 - 15:42 | 4786028 pound the vix
pound the vix's picture

How do you buy volitility without getting your ass handed to you every fucking day by the pro's

Thu, 05/22/2014 - 15:45 | 4786042 Stoploss
Stoploss's picture

>    <




Thu, 05/22/2014 - 16:13 | 4786163 infinity8
infinity8's picture

aawwww. . . some!

Thu, 05/22/2014 - 15:56 | 4786095 Devils Advocate
Devils Advocate's picture

I think it can go lower, not even close to 0!

Thu, 05/22/2014 - 17:39 | 4786490 AdvancingTime
AdvancingTime's picture

Have we been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years? This is a key question we must face. Have these actions really worked or merely masked over major flaws and problems? 

And just for fun, consider that by not demanding the right kind of growth and by throwing money at problems we have only delayed and added to festering issues that face us in the future. In what most of us view as a fast moving world many people have come to think if a financial crisis doesn't occur today or in the next few weeks it is simply not going to happen at all. More on the subject of complacency in the article below.


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