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Yellen: "No Bubble Here"

Tyler Durden's picture


Moments ago, Janet Yellen was asked if there is something out of place with the S&P hitting all time highs at a time when even she (not to mention numerous other Fed presidents) discuss froth in the bond markets. Her answer: no. Specifically, based on some "model" the Fed watches to get a "feeling" for valuations, she concluded the equity valuations are not out of historical norms.

In other words, "no bubble here."

And here is what JPM had to say about that.

Even assuming trailing earnings are valid, sustainable, and not goosed by the Fed itself (not to mention non-GAAP accounting gimmickry): the most recent median S&P 500 Price to Earnings ratio as of this moment is higher than 89% of all P/E prints in the history of the market. Said otherwise, equities have only been more expensive just about 10% in the history of the S&P.

Nope, no bubble here.


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Wed, 06/18/2014 - 15:29 | 4870702 Kirk2NCC1701
Kirk2NCC1701's picture

Bubbles are an inescapable reality of rising dough. -Kirk

Wed, 06/18/2014 - 15:33 | 4870718 max2205
max2205's picture

Every day at 3:30 there is a bubble

Wed, 06/18/2014 - 15:48 | 4870799 Say What Again
Say What Again's picture

ES 1950 --  Going once, going twice, SOLD!!!

Wed, 06/18/2014 - 15:55 | 4870834 DoChenRollingBearing
DoChenRollingBearing's picture

I mentioned in another thread that the Baltic Dry Index is at a one year low ($858), hinting at a slower economy worldwide.

Wed, 06/18/2014 - 16:00 | 4870851 Soul Glow
Soul Glow's picture

Nothing matters except the Fed's trading desk.  JPM, Russia, fucking TD Ameritrade could sell all their assets and the Fed would buy them to stop gap the stock market.

What a fucking joke, but they do have an Executive Order to follow - 

Executive Order 12631--Working Group on Financial Markets:

Wed, 06/18/2014 - 16:05 | 4870879 pods
pods's picture

Nope, no bubbles at all Janet.

And your future looks nice and rosy and not guilliotinish at all.


Wed, 06/18/2014 - 16:07 | 4870887 Soul Glow
Soul Glow's picture

He's being sarcastic for those of you who couldn't tell.

She's a fucking Wall Street whore.

Wed, 06/18/2014 - 16:22 | 4870911 remain calm
remain calm's picture

Is thst a bubble in your pocket or are you here to fuck me?

Wed, 06/18/2014 - 16:24 | 4870964 Manthong
Manthong's picture

OK, so you are pounding a street whore (not within my realm of experience) and a huge queef detonates..

I do not understand the mechanics but I don’t think it is a good thing.

Wed, 06/18/2014 - 16:35 | 4871013 Manthong
Manthong's picture

Alright, I confess.

Lamp light ladies.. I have had a few.. the most ornery ones though, have a few years under them, white helmet heads and bubble butts.

A hooker by any other name…

Wed, 06/18/2014 - 16:43 | 4871040 DaveyJones
DaveyJones's picture

"let them eat bubbles"

"while we drink them"

Wed, 06/18/2014 - 17:11 | 4871053 Manthong
Manthong's picture

A certain gravity-fed angled cutting implement in a vertical slide with a weight attached compares with that allegory.

crap.. tough crowd tonight..

Tyler(s) can you get "queef" into the glossary?

..there are a lot of air pockets out there.

Wed, 06/18/2014 - 17:16 | 4871141 eatthebanksters
eatthebanksters's picture

Why is everyone so uptight about this?  Why doesn't everyone just realize that all government officials lie to make things seem better than they are?  As soon as you do that you will be emancipated and your anger will dissipate.  If you leave the control of your wealth in their hands however, don't be angry when it disappears. I was pissed off after 2008 when I lost 75% of my net worth.  Now I know better and don't blame anyone and I protect the little I have left from forces beyond my control.

Wed, 06/18/2014 - 17:22 | 4871157 Handful of Dust
Handful of Dust's picture

My house is exactly 346% higher then it was valued in 2002.

Dat's a Bubble.

Wed, 06/18/2014 - 18:05 | 4871263 Manthong
Manthong's picture

.. my property tax is over 600 percent of what it was when I bought the dump. 

OK.. so it is a half acre on a golf course, but that does not give the state the right to steal the little that is left after the fact that the few dollars I have in the bank are not worth renting out to the f'n bank mob. 

I will be out of here within a year.. I will close all of my f'n bank accounts and will owe nobody nuttin".

I have a dream..


Wed, 06/18/2014 - 18:07 | 4871272 Bunga Bunga
Bunga Bunga's picture

It has been reckless speeding only, if you have an accident.

Wed, 06/18/2014 - 23:36 | 4872339 TheReplacement
TheReplacement's picture

Why do you still own it?

Wed, 06/18/2014 - 16:13 | 4870912 pods
pods's picture

I'm still reeling from the 29 trillion number tossed out the other day.

All this QE crap is but a garnish if that is true.

People: We are going to regulate the banks!
Bankers: haha, too bad, so sad, we own you.  We got tired of pretending we are providing a service so we had the central banks (that we own) print up some currency and we bought the world.


Wed, 06/18/2014 - 16:17 | 4870940 Soul Glow
Soul Glow's picture

Fractional reserve lending.  You print 10 trillion and loan out 9 trillion, now you have 19 trillion.


Wed, 06/18/2014 - 16:33 | 4871001 SilverDOG
SilverDOG's picture





"Specifically, based on some "model" the Fed watches to get a "feeling" for valuations, she concluded the equity valuations are not out of historical norms."

Yea, its called the printing press, MONEY printing, and the last time they humped US.... it worked JUUUSSST FIIIINNe. 

Ben Dover, Mr Ben Dover that is your name.

Wed, 06/18/2014 - 16:53 | 4871071 Manthong
Manthong's picture

Fool faith and CREDIT printing.. unlike real money.

Wed, 06/18/2014 - 16:15 | 4870930 RaceToTheBottom
RaceToTheBottom's picture

Ask Belgium about bubbles

Wed, 06/18/2014 - 17:22 | 4871158 HardAssets
HardAssets's picture

They're ALL criminals (major or minor).

They're ALL liars.

The various 'isms' are bullshit - nothing but a cover for the crimes of parasites.

Their 'intellectuals' are hired to spread the bullshit, provide the smoke & mirrors. Most economists, govt lawyers, media people, and 'scientist' insiders are whores.

Bother with charts or analysis ?

Really ?

Wed, 06/18/2014 - 20:46 | 4871806 Ghostdog
Ghostdog's picture

She's not a whore. To be a whore you would have to offer sexual favors for some sort of recomepense. No one has ever asked for a sexual favor from that she-beast

Wed, 06/18/2014 - 16:01 | 4870857 Obchelli
Obchelli's picture

Who cares when S&P is at all time high? "They" are clearly winning and they kind of boxed market in positive uptrend with no matter what they do. I just can't figure out how people as evil as Fed members have everything going their way always? And they are never punished for mistakes they make - their mistakes actualy are presented as moves of geniuses

Wed, 06/18/2014 - 16:05 | 4870883 Soul Glow
Soul Glow's picture

They own the media, they pay college prfessors their salaries and give them their tenure, they write the books, sell the books, and cook the books.

While energy remains "cheap' ($4.00 gas is just noise) they will play their game, but if erergy inches up any further they are fucked.

Wed, 06/18/2014 - 16:09 | 4870884 SDShack
SDShack's picture

Posted this on the other Yellin taper article, but its just as appropriate to what you are asking.

Yep, corner the bond market with unlimited fiat printing and CB shell games to take out the bond vigilantes. A perpetual ponzi with no downside for the elites. Pump equities and high end assets, and force any residual carryover inflation to low end assets and staples (food, energy, utilities, housing, HC) to be absorbed by the masses tightening their belt. Meanwhile the elites don't even notice the rise in staple cost becaue they dine on Kobe Beef, Lobster and Caviar at the bubble trough. Siphon off some of that largesse to benefit the Govt. in 2 ways - benefits to the sheep to soften the higher Ponzi induced staple costs, plus expand the Security State to insure any "complaints" by the masses are controlled. Welcome to the New Feudal World Order.

This has all been brilliantly planned by sociopath bankers for years, really gaining traction beginning in the 70's, becoming entrenched in the 90's, and unremoveable now. A Perpetual Ponzi. The only threat is REAL shortages of staples (food, water, energy, housing) for the masses. Central planning always results in shortages because of misallocation of resources (ie Soviet Union). But we are years, maybe decades, from Mad Max or Soylent Green shortages that will be needed for the catalyst for real revolution.

Wed, 06/18/2014 - 16:12 | 4870894 Soul Glow
Soul Glow's picture

Oil production has been flat of late.  You get a downturn now and the lights go off.  Good luck on your "decades" timing.  Projections are rising, but it is flat, look....

Me, I've learned to farm, I'm in the shape I was when I was 25, and can still drink almost anyone under the table.


Wed, 06/18/2014 - 16:13 | 4870919 fonzannoon
fonzannoon's picture

his decades timing may be a lot closer than all the "imminent crash" timing that has been off for 5 years.

Wed, 06/18/2014 - 16:15 | 4870933 Soul Glow
Soul Glow's picture

Meh.  I see a whiteness of black swans approaching.

Wed, 06/18/2014 - 16:21 | 4870949 fonzannoon
fonzannoon's picture

Meh blech. You said gold was about to go parabolic months ago when it was close to $1,400 and I said it was heading south from there. You yelled at me....You yelled at me. 

I'd listen to SDShack...we may be here a while. I'd at least put even money odds on it.

Wed, 06/18/2014 - 16:26 | 4870973 thamnosma
thamnosma's picture

Well I didn't yell at you.  Fact is only a few years ago they almost lost control of the entire shitstorm.  You wanna give them decades going forward?  Great, I'll short you.

Wed, 06/18/2014 - 16:29 | 4870991 fonzannoon
fonzannoon's picture

I was not talking to you. I was talking to soul glow and he knows what I am talkin abooot. 

Are you certain they almost lost control of the shitstorm? 

Wed, 06/18/2014 - 17:06 | 4871101 Beam Me Up Scotty
Beam Me Up Scotty's picture

I think thats the point at which they took full control of the "shitstorm" by taking full control of the printing press.  How do we know that they aren't just saying they are tapering to 35 billion a month in bond purchases, when in fact they are buying who knows how much?  Do we really know what the Feds balance sheet is?  We only know what they tell us it is.  They could be printing a trillion a year or 10 trillion a year and we have no idea.  With infinite money both printed and digital, they can goal seek absolutely any number they want in any market they want.

Wed, 06/18/2014 - 16:36 | 4871020 SDShack
SDShack's picture

They gave you the ILLUSION of almost losing control in 2008. I bought it too. I have since seen the error of my ways because I now understand what type of people they are. The 2008 illusion was just a plan to establish more control. And it has worked brilliantly for them. Just like AIG was an illusion. GM was an illusion. Greece was an illusion. CDS are an illusion. 0zer0care is an illusion. DHS is an illusion. NSA is an illusion. IRS is an illusion, and on and on and on. It's been going on 6 years of nothing but more control. 6 years is on the downside of a decade. I see nothing on the short term horizon to stop them.

Wed, 06/18/2014 - 16:28 | 4870987 SDShack
SDShack's picture

Why do a black swan when you are winning? If the bankers are achieving a perpetual ponzi, then they don't need a black swan. The only justification for them to launch a black swan is to take out a potential threat TO THEM. This means a black swan to expand the Security State and control the masses even more. This feeds the ponzi. Black swans are not going to save anyone. Even if a black swan gets out of their control (like Syria, Iraq, or Ukraine, or fill in the blank....), they will just double down on MORE control to compensate. Learn to think like a socipathic banker, and you will see where this is going and why. They only exist to win in their mind, and will sacrifice everything and everyone to achieve it. We have years of destruction ahead of us.

Wed, 06/18/2014 - 16:31 | 4870995 fonzannoon
fonzannoon's picture

I don't think they want to hear it. 

Wed, 06/18/2014 - 18:29 | 4871353 Al Huxley
Al Huxley's picture long as all the elites are on the same team.  So Russia, China, at some level would need to be already fully coopted for your scenario to play out.  I don't know if that's the situation or not.

Wed, 06/18/2014 - 23:17 | 4872298 Tinky
Tinky's picture


Wed, 06/18/2014 - 16:20 | 4870951 disabledvet
disabledvet's picture

"Irrational exuberance" writ large.

By the time the Fed's done we're gonna have to reserve The Joker as "an entire class of super villains."

Wed, 06/18/2014 - 16:25 | 4870968 thamnosma
thamnosma's picture

LOL, decades....

Wed, 06/18/2014 - 16:13 | 4870917 MountainsRoam
MountainsRoam's picture

Give it time.. I mightg go broke buying July and August puts, but even if I lose all my gambling money, I will witness the downfall of the FED soon..

Wed, 06/18/2014 - 18:30 | 4871357 Al Huxley
Al Huxley's picture

You'd be better off just staying out or outright shorting.  Buying puts is like donating money to the banks.

Wed, 06/18/2014 - 16:26 | 4870974 tecno242
tecno242's picture

That is what happens when you are in a bull market run.  That is what happens when you are in a large elliot wave to the upside. 

EXCEPT.. in the past, it was companies and earnings can do no wrong, everything looks great, as in the 1999 tech bubble, even companies with zero earnings look like golden tickets ready to rake in the riches.

NOW.. it's the FED can do no wrong, the FED is the golden ticket, the FED has our back, the FED is riskless, the FED will never fuck up.

The problem being,.. these things always turn.  Bull runs end, Elliot waves turn down.  And when it does.. it's the exact opposite.  In 1999 though, that was companies with no earnings are worthless, everything is risky, stocks can bankrupt you, etc...

This time.. it will be The FED can't win, Everything the FED does is wrong, The FED is sinking the market, The FED has injected the maret with massive risk, The FED has completely fucked up.

I'm not quite sure what that's going to do, but most likely the outcome will be a total loss of all credibility by the central bank itself.

And its of their own making. 

But they are academics, not traders.  They know not what they do.

Wed, 06/18/2014 - 17:27 | 4871167 Handful of Dust
Handful of Dust's picture

But my broker told me, "Stock prices never drop."


..oh wait, or ... Was that was my realtor about my house?

Wed, 06/18/2014 - 18:33 | 4871366 Al Huxley
Al Huxley's picture

The public faces are academics. The owners are sociopathic criminals who will change the rules they originally created whenever it suits them in order to win.  If your scenario plays out, it will be intentional, and the real powers behind the FED will profit from it, even as they hang their academic spokespeople out to dry.

Wed, 06/18/2014 - 16:08 | 4870891 papaswamp
papaswamp's picture

HARPEX though, went vertical and blew through the 2 yr average (granted way below the 5yr). Somebody moved alot of something. Perhaps its all that missing Chinese metal.

Wed, 06/18/2014 - 16:14 | 4870926 Soul Glow
Soul Glow's picture

Probably Bernanke's dickcheese he left in the Eccles Board room.

Wed, 06/18/2014 - 17:35 | 4871178 CrashisOptimistic
CrashisOptimistic's picture

I was just out driving and had CNBC radio on, post press conference and post market close.

One of the guests said:

"Look, it's what, 5 years?  Six years since the smash?  How can it be good that we have to sit here parsing Fed language about how much money is being created per month?  How can that still be required?  How can it be good that this is what we have to do now?"

A CNBC person, dunno who it was (radio) replied:

"It's good because I keep my job!"


The guest said: "No, I mean in an important sense.  How can this be good?"

Reply: "It's damned important I keep my job.  It's ALL important that I keep my job!"

I had to be careful I didn't drive off the road.  That was quite the laugh for me, but dead silence in their studio.

Wed, 06/18/2014 - 17:27 | 4871168 Groundhog Day
Groundhog Day's picture

8th we have some ways to go then

Wed, 06/18/2014 - 15:56 | 4870838 Frank N. Beans
Frank N. Beans's picture



Wed, 06/18/2014 - 16:31 | 4870996 corporatewhore
corporatewhore's picture

didn't a certain Alan Greenspan say the same back in 2007/2008? and then kapoosh!

Wed, 06/18/2014 - 17:48 | 4871214 Blankenstein
Blankenstein's picture

And Bernanke said it in October 2005.


"Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve."


"U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke... But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households."

Wed, 06/18/2014 - 15:30 | 4870705 madbraz
madbraz's picture

no bubble here - approaching 400 days since we last touched the 200 moving average.  

Wed, 06/18/2014 - 15:35 | 4870729 Headbanger
Headbanger's picture

Would be nice to see a chart showing the number of days the S&P over its 200 dma vs time if you got it..


Wed, 06/18/2014 - 15:47 | 4870802 madbraz
madbraz's picture

happened twice since 1930, no bubble here.


one time was in the fifties, GDP growth in that decade was 6%.  even so, the market went nowhere in the next 2 1/2 years.


other time was in 1937, stock market lost 33% within the year, never to recover that level for many, many years.


nope, no bubble, evil woman.

Wed, 06/18/2014 - 15:49 | 4870807 madbraz
madbraz's picture

now, evil woman, go back to the retard building where you came from and dont come out for another month to spare us the horror of having to see you live and the mockery that occur in your "market" every time you speak.

Wed, 06/18/2014 - 15:51 | 4870817 i_call_you_my_base
i_call_you_my_base's picture

Someone should have asked if the model is similar to what Bernanke used when he said there was no RE bubble.

Wed, 06/18/2014 - 18:02 | 4871138 Beam Me Up Scotty
Beam Me Up Scotty's picture

In the 1930's they couldn't create unlimited digital dollars in a matter of seconds.  Today, they can make the S&P do whatever they want.  They DOW isn't a measure of the health of the economy anymore.  It can continue to meltup, even though the standard of living for most people goes ever lower.  You don't use a thermometer to measure windspeed.  They have convinced us that a big number on the thermometer is good, even though its meaningless in terms of windspeed.

Wed, 06/18/2014 - 17:39 | 4871187 Anasteus
Anasteus's picture

All those meetings, hearings, grillings or whatever it is is just an infertile blabber proving total impotence of the press, congress and other puppets. The puppets pretend to be asking, interrogating, investigating the entities sitting on the opposite chair who answer what they want or don't want to while lying under oath on occasion knowing that nothing will ever happen and silently laughing at toothless and grotesque efforts of the dumbasses sitting in the committees or in the audience falsely hoping they can find out something relevant or change something just by asking "the right" questions.

It's still the same over and over again. Disgusting farce.

Wed, 06/18/2014 - 15:31 | 4870708 HedgeAccordingly
Wed, 06/18/2014 - 15:31 | 4870710 NoDebt
NoDebt's picture

Yeah, but since 1998 that's looking pretty middle-of-the-road.  Just start the comparison there, problem goes away.  

Wed, 06/18/2014 - 15:32 | 4870712 lasvegaspersona
lasvegaspersona's picture

ya butt

The fed has ways of keeping prices rising without blowing bubbles. derviatives er sumpin....dunno but I'd bet the S&P will be higher next month than this.

Wed, 06/18/2014 - 15:33 | 4870715 Dr. Engali
Dr. Engali's picture

Welcome to the Zimbabwe States of Merkia.

Wed, 06/18/2014 - 15:42 | 4870769 Da Yooper
Da Yooper's picture

Oy vey such a problem

Wed, 06/18/2014 - 15:33 | 4870721 Rainman
Rainman's picture

keep hearing echos : The subprime crisis is contained.

Wed, 06/18/2014 - 15:33 | 4870722 CrashisOptimistic
CrashisOptimistic's picture

That's 50 years of the 10 year. 

Calling for higher rates makes sense, how?

Hell, it was below 2% before QE3 was even fired.

Wed, 06/18/2014 - 15:37 | 4870736 madbraz
madbraz's picture

no bubble, bill dudley told me so.  he heard it from dimon, who heard it from geithner, who heard it from summers, who heard it from rubin, who communicated his decision to his friend, obama.

Wed, 06/18/2014 - 15:37 | 4870737 beavertails
beavertails's picture

Gold is not at an all time high.  Oil is not at all time high.  official inflation is 2%. REDSKINS lost their trademark status.  

All is normal in the NEW NORMAL.  Bullish, 11% to go or 2150 on the S&P, throw in the towel and chase the last 11%!!!

Wed, 06/18/2014 - 16:28 | 4870985 youngman
youngman's picture

You would think with everything hitting all time highs that PMs would be a part of that too....for some reason its not part of the will be the last player let on the feld I think...and it will will set records as to how fast it goes up in value..

Wed, 06/18/2014 - 15:37 | 4870745 frankTHE COIN
frankTHE COIN's picture

Toil and Trouble. Toil and Trouble.

Wed, 06/18/2014 - 15:38 | 4870746 Kirk2NCC1701
Kirk2NCC1701's picture

"Tiny bubbles, in the wine, make me happy, make me feel fine" - Don Ho (and banksters too)

"Biggy bubbles, in the slime, make me dirty, make me feel fine" - Yellen

Wed, 06/18/2014 - 16:19 | 4870946 Squid Viscous
Squid Viscous's picture

Yellen was humming:

Summer Breeze, makes me feel fine blowin up the jasmin in my mind...

"See the paper layin' on the sidewalk 
a  little music from the house next door..."

Wed, 06/18/2014 - 15:38 | 4870747 thismarketisrigged
thismarketisrigged's picture

i fucking hate this bitch, i want to fucking punch her in the face and beat her.


what a stupid fucking cunt.


ya, no bubbles, job market improving broadly, what fucking planet is she living on?

Wed, 06/18/2014 - 15:46 | 4870793 A82EBA
A82EBA's picture

this is her world, were just a squirrel trying to get a nut

Wed, 06/18/2014 - 15:42 | 4870750 slaughterer
slaughterer's picture

Guess we have to wait for a P/E of 22-23 or ES 2400-2500 for a correction. By then, VIX should be 4 or 5.

Wed, 06/18/2014 - 16:49 | 4871057 machineh
machineh's picture

One VIX, one Fed chair, one nation ...

Wed, 06/18/2014 - 17:01 | 4871095 Squid Viscous
Squid Viscous's picture

yes I'm going all in at 22x trailing SPX EPS,  has always worked out well

Wed, 06/18/2014 - 15:41 | 4870757 Comte d'herblay
Comte d'herblay's picture

The error you make is thinking we are in historical times.

Not so.  We became firmly entrenched in the post-historical world when clinton got off, so to speak, of being kicked on ass out of office, during the reign when we got two fer the price of one, which one attempted a takeover of the entire health concerns of 320,000,000 people and 40,000,000 illegals.  Which same person is going to run for POTUS against a totally clueless republican party. 

Thru the looking glass we went, and now?

Toss away the stuff of the past, for----- contrary to FAulkner----the past is dead ('cept for the profitable industries of the holocaust, the crusades, the inquisition, slavery, and the hatfields and mccoys).

We have a new pair o dime and it's just getting started.  

(as a sidenote, Denise Richards' boob job was not all that suckcessful. 


Wed, 06/18/2014 - 15:41 | 4870766 homiegot
homiegot's picture

YellenTurtle likes to pop her head out every once in a while to nibble on some lettuce.

Wed, 06/18/2014 - 15:42 | 4870768 f16hoser
f16hoser's picture

Yellen = TWIT/TWAT

Wed, 06/18/2014 - 15:43 | 4870772 orangegeek
orangegeek's picture

A lot of bullshit spun into positive spewing from Yellen today.


Euphoria at tops.


I think she said uncertainty a few times, but that doesn't count.

Wed, 06/18/2014 - 15:43 | 4870774 A82EBA
A82EBA's picture

so stocks are up after announcing 20% reduction in fed spport?

Wed, 06/18/2014 - 15:43 | 4870776 Inthemix96
Inthemix96's picture

This cunts meant to be woman right?  Right?  Erm, right?

Now why in fucks name of Dog would you take the word a 'Thing', that could be a man, that should be a woman, whos giving you valuable information on market volumes and such like, when 'It' cannot, and I mean CANNOT convince you its a man, I mean a woman?

There is ugly my friends, and there is market manipulation, but how the fuck do you make folk believe that ugly bastard is a  woman?

Its a ruse, must be.  There is no way on this Dogs given earth that fucker is a man, sorry, a woman.  Dont listen to 'Its' lies, you may be being decieved.



Wed, 06/18/2014 - 16:12 | 4870909 buzzsaw99
buzzsaw99's picture

i believe s/he is a morlock

Wed, 06/18/2014 - 15:46 | 4870781 GOSPLAN HERO
GOSPLAN HERO's picture

A New Zealand rugby team named All Blacks.

Rayciss or just extreme affirmative action?


Wed, 06/18/2014 - 16:13 | 4870865 Squid Viscous
Squid Viscous's picture

seems the "savages"/aborigines don't mind, they have been accepted by the All Blacks as players for several decades even though cannibalism is fairly recent memory for them...

Wed, 06/18/2014 - 15:44 | 4870782 tommylicious
tommylicious's picture 'em!

Wed, 06/18/2014 - 15:47 | 4870784 yogibear
yogibear's picture

Code phase for banks and insurance companies to keep buying stocks.

Just like subprime wasn't a problem until it was in 2007.


Wed, 06/18/2014 - 15:44 | 4870786 alien-IQ
alien-IQ's picture

market going fucking parabolic. WTF!!!!!!!!!!!!!!!!!!!!!!!!!!!

Wed, 06/18/2014 - 15:57 | 4870845 SheepDog-One
SheepDog-One's picture

VIX will soon plunge into negative territory then stawks can really begin busting a move!

Wed, 06/18/2014 - 15:45 | 4870787 NYPoke
NYPoke's picture

Eddie Murphy taught us everything we needed to know about bubbles, and G.I. Joe.

Wed, 06/18/2014 - 15:47 | 4870796 alien-IQ
alien-IQ's picture

i feel like puking.

Wed, 06/18/2014 - 15:47 | 4870798 poor fella
poor fella's picture

Yellen-the-White takes time from playing Sim-economy, rides down from the ivory tower, to ward off 'The Unhinging'. Again expecting the slow-growth economy and melt-up markets to magically BE SEEN as benefitting Main Street and spur another age of consumerism which is expected to BE SEEN as benefitting middle-class job opportunities..   or something like that. We are sooo fucked as these people do ____x___ to buy more time. Some probably think things will work out, but I wonder what preps look like for the .01%  (they may not be able to count on the Navy Seals).  

Go down to any bar in any state and tell people the U.S. economy's GDP will usually range between slightly negative (when things are bad) on up to a pretty healthy 4-6%. If people were asked to guess what H2 holds, guaranteed people on the street would be closer than these #$%^& clowns.. even after the bullshit numbers.

Wed, 06/18/2014 - 15:49 | 4870805 Soul Glow
Soul Glow's picture

Yellen is a fucking whore.

Wed, 06/18/2014 - 15:52 | 4870820 alien-IQ
alien-IQ's picture

as opposed to another banker? come on man. they're all fucking whores.

Wed, 06/18/2014 - 16:01 | 4870862 Soul Glow
Soul Glow's picture


Wed, 06/18/2014 - 16:14 | 4870921 silverserfer
silverserfer's picture

a cantankerous lampray eel whore with no class.  

Wed, 06/18/2014 - 19:26 | 4871585 NihilistZero
NihilistZero's picture

May I add, most likely a broke whore.  Because outside of a sexual masochist, who would pay to hit that?

Wed, 06/18/2014 - 15:50 | 4870810 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Glad that I stopped shorting this market a long time ago. Interesting that gold is holding it together and even going up....inflation?

Wed, 06/18/2014 - 15:52 | 4870821 Toolshed
Toolshed's picture

It seems pretty simple, really. The fed must continue to claim everything is a-ok, so they can justify holding interest rates at near zero. Clearly, this is due to the fact that raising rates is tantamount to suicide. That is the only relevant fact. Everything else is a distraction.

Wed, 06/18/2014 - 15:53 | 4870825 JRobby
JRobby's picture

Her special "feeling" is the same one experienced by someone waking up from a 6 year drunk realizing they have shit the bed.

Wed, 06/18/2014 - 17:15 | 4871139 MrSteve
MrSteve's picture

Let all who claim to have no knowledge of said "feeling" click on the red arrow.

Wed, 06/18/2014 - 15:56 | 4870832 John Law Lives
John Law Lives's picture

How about a market cap-to-GDP ratio of ~1.21 (as of when this was recently calculated):



Wed, 06/18/2014 - 15:56 | 4870835 hugovanderbubble
hugovanderbubble's picture

SPAIN 0 - CHILE 2 ( halftime)...

SP 1958.......

VIX .....0%......

well.....thanks for taking part in the show...

Wed, 06/18/2014 - 15:56 | 4870839 falak pema
falak pema's picture

The FED in total denial of its Minsky Moment of own fabrication.

The FED pretends it isn't there to clean up after financial crises but to lean against excesses as they develop...

So... Alan Greenspan and Ben Bernanke, in view of that statement, have been leaning against excesses as they develop with ZIRP and QE.... and protecting the TBTF subsequently to curb those very excesses from going systemic...

Now that is the financial world standing on its head right there. 

Wed, 06/18/2014 - 15:56 | 4870841 DOGGONE
DOGGONE's picture

Did Chairlady Yellen show real history? Ho No!

Wed, 06/18/2014 - 15:57 | 4870843 _ConanTheLibert...
_ConanTheLibertarian_'s picture

The bubble is contained...

Wed, 06/18/2014 - 15:59 | 4870849 Froman
Froman's picture

What an ivory towered buffoon.

Wed, 06/18/2014 - 16:00 | 4870853 BobTheSlob
BobTheSlob's picture

Hey...all you whiners! Stop dissin Yellin. I just sold 480 shares for a rather tidy profit today. Thanks Janet, couldn't have done it without your exercise in full retard mode.

Wed, 06/18/2014 - 16:01 | 4870861 buzzsaw99
buzzsaw99's picture

Even assuming trailing earnings are valid, sustainable...

This is the key as JPM well knows. They aren't valid because recent bank earnings are inorganic horse manure. They aren't sustainable because levered buybacks are finite, unlike the fed, which espouses infinity as being no barrier.

Wed, 06/18/2014 - 16:13 | 4870918 BobTheSlob
BobTheSlob's picture

C'mon...everyone knows...this time is different.

Wed, 06/18/2014 - 16:03 | 4870868 TabakLover
TabakLover's picture


Wed, 06/18/2014 - 16:03 | 4870872 ThirteenthFloor
ThirteenthFloor's picture

To taper or not to taper what to tell the public? QE is more or less a PR statement, FRB was buying 3b in MBS and 10b Agencies a day in '06 before QE was around. What the FRB really trades is something different. Investment bankers all know this. Kinda like Disneyland all fun and games on the surface and slew of tunnels and security guys below or behind the scenes. That is why you cannot match market results to the 'public statements' of QE or taper, that is just PR or marketing vapor. Heh, lets taper and GSPC climbs....right.

Wed, 06/18/2014 - 16:21 | 4870953 DOGGONE
DOGGONE's picture

These very instructive price histories are kept out of sight:
Does anyone really reckon that trustworthy persons are in control?

Hitler originated the term The Big Lie in his 1925 Mein Kampf. The Fed was founded in 1913.

Wed, 06/18/2014 - 16:29 | 4870990 ThirteenthFloor
ThirteenthFloor's picture

The fiat game ends when less entities accept USD for assets, products and services than entities accept USD for them.  And that is just starting in Eurasia.

Wed, 06/18/2014 - 16:32 | 4870999 yogibear
yogibear's picture

The Fed loses all control once the US dollar crashes.


Wed, 06/18/2014 - 16:10 | 4870898 khakuda
khakuda's picture

On the one hand, the Fed chairs have always said they can't see and won't know a bubble until AFTER it implodes.

On the other, they tell us there is no bubble.

Go figure.

Wed, 06/18/2014 - 16:12 | 4870905 kowalli
kowalli's picture

no bubble here -buy S end P more

Wed, 06/18/2014 - 16:14 | 4870924 SillyWabbits
SillyWabbits's picture

Until things are not as they are; they will be different.  When they are different they will not be the same.  Dissimilar things vary and variances can cause change.  Change is different than, not the same, and not the same is the same as different; but with a difference.

Until things are different; we will be monitoring changes in the data, reacting to variances from different sources.

We remain on course as the differences in the changes are not variances large  enough for us to vary our approach.

If you take out the spikes and depressions, the changes we have made to date are working.

Wed, 06/18/2014 - 23:45 | 4872364 poor fella
poor fella's picture


haha - I see somebody spent their tuition money wisely on "Fed Speak 101"

Wed, 06/18/2014 - 16:19 | 4870943 pakled
pakled's picture

Bubbles? We ain't got no bubbles! We don't want no stinking bubbles!!

Wed, 06/18/2014 - 16:23 | 4870966 disabledvet
disabledvet's picture

Space X better start moving up their timetables.

We're gonna need a regular supply of meteor minerals a lot sooner than expected.

Wed, 06/18/2014 - 16:27 | 4870980 ChargingHandle
ChargingHandle's picture

She is either a liar or she is completely incompetent. 

Wed, 06/18/2014 - 16:34 | 4871010 Who was that ma...
Who was that masked man's picture

Not both?  I'm not so sure.

Wed, 06/18/2014 - 16:45 | 4871044 BeetleBailey
BeetleBailey's picture

She's an incompetent liar....reading off of cards and dementia-addled memories....I wouldn't be surprised if the little Yoda was rigged up to a Squid/JPM robot....


Wed, 06/18/2014 - 16:31 | 4870997 Duc888
Duc888's picture



Yellen's little secret.


It pays to be one of the tribe.


Wed, 06/18/2014 - 16:33 | 4871004 yogibear
yogibear's picture

Once the US dollar crashes the Federal Reserve's backup is yet another fiat, SDRs.

Wed, 06/18/2014 - 16:33 | 4871006 Who was that ma...
Who was that masked man's picture

I once knew a girl named "Bubbles".  She was a stripper and she had more common sense in her left little finger than Janet Yellen has in her big fat ugly head.

Wed, 06/18/2014 - 16:33 | 4871008 jubber
jubber's picture

That fucking bollox also took the DAX back over 10000 , funny that

Wed, 06/18/2014 - 16:34 | 4871009 headhunt
headhunt's picture

This is the problem with reading chicken gizzards, every sorcerer has a different finding.

Wed, 06/18/2014 - 16:34 | 4871012 jubber
jubber's picture

Gold moving up USJPY moving down, interesting

Wed, 06/18/2014 - 16:36 | 4871019 TheRideNeverEnds
TheRideNeverEnds's picture

Call me when that median P/E prints over 30x, till such a time the market is dramatically undervalued when adjusted for central bank policy. 

Wed, 06/18/2014 - 16:40 | 4871032 Getting Old Sucks
Getting Old Sucks's picture

This is getting old too and it too sucks.  Listen, Zirp can't end or the USA goes POOF!  The market can't crash or the USA goes POOF!  That's it, so move along now, no need to hash it all out over and over and over ................



Wed, 06/18/2014 - 16:41 | 4871036 devo
devo's picture

Bullish! Wall of worry!

Wed, 06/18/2014 - 16:45 | 4871045 ThirteenthFloor
ThirteenthFloor's picture

If you deflate the GSPC and DJI for some real inflation (i.e., shadowstats) numbers my guess is markets were a tiny bit higher in '00 dollars around Mar.'00.  It's about buying power, ends when no one wants $$ for real assets or services.

Wed, 06/18/2014 - 16:48 | 4871049 khakuda
khakuda's picture

The question should be phrased to her, "At what level is the S&P in a bubble."  Less easy to dodge that one.

Wed, 06/18/2014 - 16:54 | 4871073 huggy_in_london
huggy_in_london's picture

Excellent idea

Wed, 06/18/2014 - 16:51 | 4871062 moneybots
moneybots's picture

The FED will not admit to a bubble until after it has burst.

They don't want the bag holders to sell in front of the insiders.

Wed, 06/18/2014 - 16:51 | 4871067 ArmyofOne
ArmyofOne's picture

"The sub-prime market is contained."

Wed, 06/18/2014 - 16:53 | 4871070 huggy_in_london
huggy_in_london's picture

Just when i was starting to think that the equity market was starting to get the joke these muppets at the fed go and pour more fuel on the fire..... 


Wed, 06/18/2014 - 16:55 | 4871076 machineh
machineh's picture

The P/E ratio based on Shiller's CAPE (ten-year average earnings) is well into the top decile.

Unfortunately, extreme valuation on its own is not a sufficient condition to pop a bubble. It takes a pin.

The good Dr. Hussman is, as we speak, tearing his hair out as the universe attempts to impart this lesson for the third time (he STILL don't get it).

Wed, 06/18/2014 - 17:02 | 4871087 HardlyZero
HardlyZero's picture

Two massive things supporting bubbles...

1. ECB <--> FED tautology.

2. Bank excess fiat funds.

They both support expanding markets...just like Zimbabwe.

The trick will be to predict the Klingon 'glorious' end...

Wed, 06/18/2014 - 17:33 | 4871174 Comte d'herblay
Comte d&#039;herblay's picture

The FED has "taut" me to go all in long, beginning 2009.  My short foray into all in short, was a disaster.  That was 5 yrs ago.  Undoubtedly a regression to the mean will occur SOME DAY.

But too many are betting on a regression soon and that's just not going to happen.  Even if there is little retail trading, the volume low, the stability has been remarkable, but oh so predictable.

Too many retirees out there at the rate of 10,000 a month and accelerating for the next ten years.  They simply cannot allow a falling market. 



Wed, 06/18/2014 - 17:04 | 4871100 walküre
walküre's picture

Demand for phys has to be extremely high now. The smartest guys must realize that this orgy of money is going to end in a full fledged monetary reform with defaults, haircuts, massive inflation and so on. If I had a billion invested in what they call a "diversified" portfolio, I'd be very cautious not to keep too much in money market funds or stocks now. How much bullion can a billionaire buy these days? Gold is cheap, silver even cheaper. Even when they suppress the paper price machinations, they cannot suppress demand for phys which should skyrocket given the ECB and FED policies.

I know that some here don't like gold anymore or consider it a barbaric relic, but you gotta feel when there's a bottom forming. I think there's a bottom in gold prices here. Increasing demand, increasing costs and the paper price hovering under $1300 for many months now.

TPTB can try and suppress prices even further but how much lower can it go before the run is on and the system snaps? Smart money is not going to wait for that day is my best guess.

Wed, 06/18/2014 - 17:06 | 4871110 yogibear
yogibear's picture

The Fed's William Dudley and Charles Evans will continue to prop up and push the market higher.

In the meantime retail prices keep increasing.

Wed, 06/18/2014 - 17:15 | 4871140 Bow Tie
Bow Tie's picture

nothing to see here - the recovery is coming along as the US economy continues to show positive signs. the fed will keep tapering until QE is completely wound down and interest rates are set to rise soon. right? :))

Wed, 06/18/2014 - 17:22 | 4871156 arby63
arby63's picture

I have been in business for myself for more than a decade. I have never seen the economy so slow from my perspective. I know folks who cannot even find gas money to get to work if they want to also eat!

Ms. Yellen: FUCK you. 

Wed, 06/18/2014 - 17:35 | 4871179 Duffy
Duffy's picture

A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.”

Netanyahu implicated in nuclear smuggling from U.S.

And IRan.... 

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