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Fed's Fisher Wants Some Steam Out Of The Market, But "No Popping The Bubble"
It appears the Federal Reserve is in full court press mode to jawbone the rational exuberance out of the stock markets... On the heels of Yellen's largely ignored "stretched valuations" comments, Dallas Fed's Fisher exclaims:
- DALLAS FED PRESIDENT FISHER SAYS 'MARKETS ARE OVERSHOOTING'
- FISHER CONCERNED FED MAY 'BE STAYING TOO LOOSE TOO LONG'
- FISHER: I DON'T THINK YOU SHOULD 'POP' A BUBBLE, BUT SHOULD LET SOME SPECULATIVE STEAM OUT OF MARKETS
His plan for this "letting out of steam" is to start shrinking the Fed balance sheet in October and raising rates early in 2015. Of course, what does the Fed know about bubbles? We are sure the spin will come soon that this is bullish as 'froth' will be removed and then the secular bull can go on (aside from the total and utter lack of liquidity in markets, small doors and large crowds do not make for good endings).
Finally, when Fisher says don't pop the bubble, that suggests there is no bubble, yes?
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Glory be to the Bomb, and to the Holy Fallout. As it was in the beginning, is now, and ever shall be. World without end. Amen.
May the Blessings of the Bomb Almighty, and the Fellowship of the Holy Fallout, descend upon us all. This day and forever more.
Congregation: [singing] Amen!
FISHER: I DON'T THINK YOU SHOULD 'POP' A BUBBLE, BUT ...
... You should Lance a Boil
LOL. FISHER: I don't think you should "pop" a bubble, but... you should ooze a cyst, drain a waterbed, and take the lid off of a pot of boiling water in order to avoid overflow.
Your jawboning isn't working Fisher. I bought SDS at 25 yesterday and am down already asshole.
And on a somewhat related note I'm getting a little bored waiting on the sidelines to see how PMs will react when the reality of the economic outlook, and the ultimate futility of fiat fixes, smashes through into the public conciousness, so I can assess how to best play the big move everyone knows is coming.
yep. the jaw bone of an ass isn't going to cut it. it took four years even after the fed started raising rates in 2004 to have any effect. yellen has no bona fides. she is seen for what she is, a big fat ugly dove.
They wanted Socialism, because Capitalism is just too scary and unpredictable, and their friends were too stupid to compete anymore, so you guys fucking got it!!!
NOW you dumb motherfuckers think there is a market left to talk down???
Only a bunch of worthless academics would actually think this is possible??
All that is left, is what you've programmed the slaves and servants to do, buy until their heads explode with greed and fantasy!!
Geeezus it's unreal, they really think there is some mechanism left for the markets to go down????? BTFD sound familiar you fucking moronic fools?? No one is selling, no one believes you won't continue to pump, and only a Lehman moment would wake these sheep up, AND you Fed POS scumbags know that wouldn't be "letting a little air out", would it??
God damn these guys are fucked beyond belief, it's really unreal, surreal actually!!
Facism is not socialism. No one but those in charge wanted facism.
Henchforth, "rate hikes" will always be a year away...
ZIRP Forever!
The Fed has to hike rates unless they want the US government to sell bonds to no one but the Fed.
If you don't think they are going to raise rates you don't understand how precarious the position of the USD is rapidly becoming.
I wholly agree
Beyond that...
His plan for this "letting out of steam" is to start shrinking the Fed balance sheet in October and raising rates early in 2015.
He's either stupid or disengenous (I'll assume the latter) as this WILL cause a pop! Maybe not right away but when the credit market turns south, I expect it will do so quite rapidly. So few players and such low volume in all the markets (the RE, credit, equities unholy trinity) precludes any other outcome.
For the 1000th time. They can't raise rates! They can't!! They will not be able to swing the payments on their debts! It's that simple...
They don't have to raise rates. Increasing the debt will have the same effect. There is a date on the calendar when that devil will be delivered.
Did he forget the elephant in the room? the quadrillion in derivatives?
2 quadrillion now
Glass-Steagall
They want less froth in the equities, but every time some alternative begins to edge up, they stomp its little golden head in.
Sorry, FEDs, but this is your Frankenstein, enjoy your blow-off top.
they started QE3 when the S&P was at 1465. Clearly they wanted it higher than that since the stock market is their only policy tool. Now it is at 1975. Why don't they just tell us the exact number they want? May I suggest 1666?
1666
Yes, Master, hurhurrhurhur hurrr..
"Feed My Frankenstein"
http://www.youtube.com/watch?v=NO2cHJmDkBg
if they were going to raise rates 6 months from now then why not call out Utilities and telecom stocks as overvalued? I'd rather be in facebook or certain biotech stocks than con ed and AT&T if i knew rates were going up.
liars.
They have been increasing interest rates 6 months from now for 5 years.
clearly this time is different.
The crazy thing is this moron thinks you can let "steam" out of a bubble without popping it... "There is too much irrational speculation going on, can we have a little less irrational speculation please?" Has this guy even looked up the definition of asset bubble? Once people figure out things are not going to go up anymore, they panic.
what makes it even more bizarre is that I credit the fed for letting the air out of the biotech/social media bubble earlier in the year without even nicking the index. yet they are now doing it again. Some big politician must be short the ibb.
correction. i think it was QE4 and the market went from 1400+ to under 1200 in december or something like that before it started. apologies, the mind gets muddled with this crap.
Dick gonna prick?
Then raise interest rates you fucking windbags.
Do you expect me to talk?
No, I expect you to die!
But they can't raise rates. All they can do is try and talk the market down.
The Fed is stuck allowing inflation to get wildly out of control.
The thing is, they probably could raise rates and inflation would still get wildly out of control unless they pulled a Paul Volcker on the market.
Fisher like Bullard are playing the role of moderates. It's all for show kiddies. The Federal Reserve can't allow rates rise. The government can't afford it.
It's trying to talk the market down but it won't work. Inflation just keeps increasing while the Fed is still stimulating. Inflation will just keep getting worse.
In the mean time the Fed is stuck like a deer in front of a huge 18 wheeler going 90 mph.
The Federal Reserve can't allow rates rise. The government can't afford it.
Why??? Between all the reverse repo's and Belgium purchases the FED can very easily raise rates while purchasing enough paper to make it budget neutral. The whole thing is an illusion anyway... Raising rates is inevitable support for the petrodollar.
Just show the REAL Dow truth:
http://www.showrealhist.com/recDJIAtoRD.html
while (1)
{
printf("we're going to raise rates soon\n");
rate = rate + 0;
}
GDP=1
DEBT=(${GDP} * 1.4)
RATE=($PRODINCREASE + ($PRODUCTION * 1.02))
monetarypolicy () {
while [ $DEBT > $GDP ];
do
printf "We will raise rates season after next.";
RATE=($RATE * 0);
done;
}
DO
{CTRL P}
LOOP UNTIL everybody goes crazy
10 Print "Money"
20 GOTO 10
] Run
The SP's reaction tells me............nobody is listening to Mr. Fisher.
Bubble? What bubble?
What bubble?. The bubble that will burst on july 30 12:30 GMT. THAT bubble.
They know it's a bubble, we know it's a bubble, they know that we know that they know it's a bubble....
DavidC
And now we know that they know it is a bubble.
I know, that you know, that they know, that you know, that I know, that they know...
Anything approaching a normal valuation for this market is going to look like a bubble popping.
When the Fed 'coaxes' the interest rates down to 2% on the 10 year, current prices will look like a steal.
'Why, oh why, did I not buy back when the P/E ratios were at 19'...we will say..
'Why, oh why, did I not buy back when the P/E ratios were at 19'...we will say..
Isch don't sink so...
'Why, oh why, did I not buy back when the ounce was at 1300 USD...we will say..
Good luck with that, dude.
"Ok, everybody: There is a fire in this building, but we do not think you should all rush to the exits, but rather some of you move slowly and controlled towards the exits, without the others noticing!"
Or he walks into a crowded stadium with a gun. "I am only going to shoot 3 of you...."
...because it is the main purpose of the fed to watch the markets and to make sure they are 'where they should be'.
Right, wtf? - jawboning the stock market?
not too hot
not too cold
just right
[/goldilocks]
Interest rates will be raised after the fourth and final blood moon in fall of 2015.
What will follow will make 1929 and the ensuing decade seem like a bump in the road.
And Janet Yellen will replace Roy Young as the ultimate destroyer of values, wealth, and life.
If it takes that long, I'll be pretty much broke.
But at the same time, I have much more phyzzzzz.
I do not believe that raising interest rates is still a feasable policy. It was in 1980 but America has changed. We will likely have very low interest rates for the rest of Ben Bernacke's lifetime...and he ain't that old.
Actually the wheels will surely come off the cart soon...but, as long as we still use the dollar, we are stuck in the realm of possible policies. Raising interest rates is not among them.
It looks to me like the Fed is committed to full forward, Zimbabwe full retard, Weimar mirroring, Uncle Scrooge money pool diving, wear the bearings on the printing press til they grind...printing...subtley of course. They will use derivatives so as not to frighten the MSM (who are contractually forbidden from commenting on any thing except headlines.)
Until then...everything looks fine.
Slightly OT, but, how about this little pattern I've noticed the last 6 trading days:
1. Buy the SP at the close of the 11 am hour candle,
2. Sell at the close of the next red 1-hour candle
SP points result:
7/8 = +2
7/9 = +5
7/10 = +1
7/11 = +9
7/14 = -1
7/15 = +7
today = +3 (so far)
Total = +27
Riggged?.........nah.
how about buy the fucking S&P every day at 10 am... maybe sell some at the close, or not ...there fixed it for you, genius
Fisher doesn't understand that the abcess under the boil has been quietly (or not so quietly) eating away the substance of the economy as the boil expanded.
You can't let just a little out. Like pricking a balloon, all the pent-up pressure will rip assunder even the tiniest hole.
So the Fed cuts back and the market drops 10% similar to the last couple times QE ended. And the Fed is going to stand by in October, just weeks before the election, and say 'we are going to let the markets fall and in fact we are going to raise rates next year'. Not likely.
I'm curious how Fisher wants to deflate the chain mail game without blowing it.
Hyperinflation psychology is already taking hold in the markets. Nobody believes Fed presidents anymore when they talk about tighteneing. The markets know that they won't allow a serious correction before easing again and again. The Fed needs to raise rates and end QE at the next meeting in a surprise move if they want to bring this market back to earth. The market hears this crap from them and call their bluff by moving higher. They had better rain on this parade.....and sooner rather than later.
Nost...they can't...not wothout making the depression obvious. Right now they have been able to fiddle with the stats and declare we have a normal economy. It is far from that. We are now completely dependent upon Fed policy and the kindness of strangers (like Russia and China and Saudi Arabia) for our stuff. I believe this is the final glide path. We have turned final, engines gone, runway in sight. We will make it to the ground but the runway is only 50 yards long ...so we might have trouble once we touch down.
Why couldn't this guy have just stayed in Israel? Do we really need another Rothschild agent at the Fed? The game is getting old.
wait there's a Dick Fisher, and a Stanley Fischer? how many more jews can they fit on the fed B.O.G.? unreal...almost forgot about "kosher"lakota
Because we need THIS guy having input and control over the US money supply???
Stanley "Stan" Fischer (Hebrew: ????? ????; born October 15, 1943) is an economist and the vice chair of the U.S. Federal Reserve System . Born in Northern Rhodesia (now Zambia), he holds dual citizenship in Israel and the United States.[1] He served as governor of the Bank of Israel from 2005 to 2013. He previously served as chief economist at the World Bank.[2] On January 10, 2014, United States President Barack Obama nominated Fischer to be Vice-Chairman of the US Federal Reserve Board of Governors.
Fischer was born into a Jewish family in Mazabuka, Northern Rhodesia (now Zambia). When he was 13, his family moved to Southern Rhodesia (now Zimbabwe), where he became active in the Habonim Zionist youth movement. In 1960, he visited Israel as part of a winter program for youth leaders, and studied Hebrew at kibbutz Ma'agan Michael. He had originally planned to study at the Hebrew University of Jerusalem, but went to the United Kingdom to study after receiving a scholarship from the London School of Economics, and obtained his B.Sc. and M.Sc. in economics from 1962–1966. Fischer then moved to the United States to study at MIT, and earned a Ph.D. in economics in 1969 with a thesis titled Essays on assets and contingent commodities written under the supervision of Franklin M. Fisher.[3][4] He became an American citizen in 1976.
the writing is on the wall, colonel... they can't get any more blatant than that... in your face goyim! you will learn to love it, on your fenced in kibbutz...eventually
Fucking guy wasn't born here, and doesn't have a clear cut allegiance to the US. Amazing our so called "leaders" allow this to go on. Although many of them have dual citizenship too.
Ofcourse you will have some overshooting when you are to loose for to long.
Prediction: Bubble will pop on july 30 8:30AM EST. 12:30 GMT.
that's like pinching off half way through taking a dump
good luck stopping that momentum Fisher
Not half way. Just a couple of tiny beadlets of excrement are allowed out.
And you didn't take a dump for 2 weeks, but rather drank 3 litres of laxative every day.
There you go.
Good luck Fisher.
To those of you just having lunch, I apologize
so you're saying there's going to be a massive shitstorm at some point... got it
something like that.
and please picture additionally a massive fan instead of a toilet bowl to evenly spread it all out.
Fisher seem to think the Fed can organize a nice orderly cattle stampede, yea good luck with all that.
Sadly, ever rising bond, stock and real estate prices have CONVINCED the central planners that they MUST be right.
Now that it is getting harder to deny that we are seeing certain prices at levels that are mispricing risk and causing capital misallocation, they are starting to worry. But, as long as prices are rising, these academics are beaming like a kid with a straight A report card. No matter that they didn't learn anything, there's an A on the report card.
The Fed looks at who is making money in the bubble to decide if it deserves to live. A bunch of foreign CBs and hedgefunds have pumped 29 trillion into it. That is almost as bad as the public making money. If the bankers are not making all the money, it needs to die. And they will make the money killing it.
Whenever they feel like it, they'll just get short and pull the rug out, no difference to them.
Good cop, bad cop from here on out. Pretend you're very concerned about markets being over optimistic yet never allow any red to stay for even 1 close to the next.
Stock exchange holiday: Bubble will never pop if the exchange is closed.
Problem solved.