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Janet Yellen's "I'm Dovish But Sell Small Caps" Senate Hearing Part Deux - Live Feed

Tyler Durden's picture




 

Having sent shockwaves through the "Don't fight the Fed" apologists yesterday by stating that small caps (etc.) have stretched valuations, we suspect today's hearing (assuming the politicians have now read her statement and report) will focus on what the market's gurus is rapidly trying to paper over. Expect more 'uber-dovish if we need to', expect more 'vigilant' of bubbles (but there are none now)... expect more 'rates will rise - so sell your bonds (and patriotically help with the collateral shortage). Presenting Janet Yellen's Humphrey Hawkins part two... facing the Republican-led Financial Services Committee.

 

Live Feed

Just glimpse at the report...on Page 20

Fed

 

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Wed, 07/16/2014 - 10:07 | 4962430 Hippocratic Oaf
Hippocratic Oaf's picture

Fuck you, Yoda!

Just like the HNIC, the more you speak, the more you fuck up.

This chasing of hi-yield is going to blow up in everyones face.

*POP*

Wed, 07/16/2014 - 10:07 | 4962446 GetZeeGold
GetZeeGold's picture

 

 

Small Caps.....small business.....they're gonna kill anything small.

 

If you're under 7 feet tall.....run like hell!

Wed, 07/16/2014 - 10:32 | 4962535 LetThemEatRand
LetThemEatRand's picture

They may as well just come out and tell all of us start making out our tax checks directly to the large banks or corporations that own this place.  It would save a lot of paperwork on their end. 

Wed, 07/16/2014 - 10:42 | 4962562 JR
JR's picture

Thought for the day from Charles Hugh-Smith:

The unsubsidized cost of Obamacare for two 60-year old healthy adults ($23,244 annually) for an inferior plan to what we had before exceeds the cost of rent or a mortgage for the majority of Americans. Please ponder this for a moment: buying healthcare insurance under Obamacare costs as much or more as buying a house.”

http://www.oftwominds.com/blog.html

Wed, 07/16/2014 - 10:48 | 4962592 fonzannoon
fonzannoon's picture

Holy shit the whole thing just went off the rails. Maxine waters just knocked over 4 people running full speed into Yellen and landed on her and screamed repeatedly "WHERE  IS YOUR DICK I WANT TO SUCK IT"!!!!!!!!

i don't know how they can continue after that. they should at least take a break or something and let everyone get settled down.

Wed, 07/16/2014 - 10:56 | 4962617 Zeptemberalevin
Zeptemberalevin's picture

i noticed that. fucken disgrace

Wed, 07/16/2014 - 11:09 | 4962668 LetThemEatRand
LetThemEatRand's picture

I really need to start watching these video feeds.

Wed, 07/16/2014 - 11:17 | 4962681 pods
pods's picture

"And now back to our on-scene reporter, the honorable Chelsea Clinton. Chelsea, is it true that you tried to love money, but couldn't?  That must make it very difficult for you to cover this subject, America thanks you for your service."

pods

Wed, 07/16/2014 - 11:36 | 4962718 GetZeeGold
GetZeeGold's picture

 

 

Chelsea will come talk to you for $75,000 dollars.....I hear it's a pretty good talk.

 

She never thinks about money however.....being she was a daughter of po people. They were so po....they couldn't afford the OR.

Wed, 07/16/2014 - 12:19 | 4962910 ebworthen
ebworthen's picture

Or a paternity test.

Yellen is the illegitimate child of Moe Howard and one of the Munchkins; and she's not funny.

Wed, 07/16/2014 - 11:24 | 4962693 Grande Tetons
Grande Tetons's picture

One of your best posts. 

Nice mental imagery. I can almost here the slurping sound. 

Wed, 07/16/2014 - 11:27 | 4962696 boattrash
boattrash's picture

Thanks JR, you just inspired me to go to the range for some lead-slingin'/recoil therapy.

Wed, 07/16/2014 - 11:28 | 4962700 Rican
Rican's picture

But someone has to do that paperwork. Job creation!

Wed, 07/16/2014 - 10:07 | 4962439 mastersnark
mastersnark's picture

"You start a conversation you can't even finish it
You're talkin' a lot but you're not sayin' anything
When I have nothing to say, my lips are sealed
Say something once, why say it again?"

Wed, 07/16/2014 - 10:20 | 4962493 CuttingEdge
CuttingEdge's picture

Which leads appropriately on to "Burning down the house..."

Wed, 07/16/2014 - 11:49 | 4962778 TabakLover
TabakLover's picture

in the middle of life during wartime.

Wed, 07/16/2014 - 10:06 | 4962440 G-R-U-N-T
G-R-U-N-T's picture

Ah, grandma speaks about monetary policy, transparency and placates the status quo! Nice!

Wed, 07/16/2014 - 10:06 | 4962441 rsnoble
rsnoble's picture

Awful lot of stories the past few days about the upcoming crash/correction.

Probably brought to you by the 3 or 4 mega holders, otherwise known as the DOW 20k club.

Wed, 07/16/2014 - 10:10 | 4962451 orangegeek
orangegeek's picture

markets always get pushed to an extreme before the collapse

 

this time around the extremes are beyond what the past has done

 

but it all ends the same way

Wed, 07/16/2014 - 10:16 | 4962474 LawsofPhysics
LawsofPhysics's picture

Please.  The Fed is the fucking "market".  The question is simply whether or not the "ending" is Zimbabwe/Weinmar style or Great Depression style.

Until then we get the "muddle through" style...

hedge accordingly.

Wed, 07/16/2014 - 10:24 | 4962501 Cruel Aid
Cruel Aid's picture

Good question, seems like the former and it is written. So that is the current bias.

Wed, 07/16/2014 - 10:33 | 4962541 orangegeek
orangegeek's picture

very true - and with POMO and REPO fading, not much left to keep things up

 

sellers are still holding because as soon as we dip, the fed shows up with other financial institutions  and slams the market higher

 

- NDX up 0.7%, RUT down 0.2% - fed+FIs having a difficult time today

 

Wed, 07/16/2014 - 10:44 | 4962570 youngman
youngman's picture

I wish I had a balance sheet of over 4 trillion....

Wed, 07/16/2014 - 10:48 | 4962589 LawsofPhysics
LawsofPhysics's picture

"I wish I had a balance sheet of over 4 trillion....   ...created out of thin air with NO WORK at all"  - Fixed.

Fucking amazing isn't it?

Wed, 07/16/2014 - 11:56 | 4962812 disabledvet
disabledvet's picture

I wish that balance sheet would hit 8 trillion so we could get these long rates down to one half of one percent.

"Stop being a bitch and trying to normalize. We like our useless fighter planes to cost four hundred million.

Each."

Wed, 07/16/2014 - 10:09 | 4962452 RiskyBidness
RiskyBidness's picture

Just picture her suckin a large penis and all of this becomes fuckin funny!!

Wed, 07/16/2014 - 10:45 | 4962580 Colonel Klink
Colonel Klink's picture

Uh hate to tell you but it doesn't become funny, it becomes blindingly gross.

Need eyebleach.com!

Wed, 07/16/2014 - 10:10 | 4962454 IronShield
IronShield's picture

It goes up, it goes down.  What's not to like?  Volatility is your friend.  ;-)

Wed, 07/16/2014 - 10:12 | 4962459 boattrash
boattrash's picture

Instead of watching Yellen yesterday, I chose the more interesting, and watched Earthworms Fucking.

Today, instead of Yellen, I think I'll watch the more Appealing, Maggots Feasting on Roadkill Skunk.

Wed, 07/16/2014 - 10:12 | 4962460 Gringo Viejo
Gringo Viejo's picture

Almost as hard to look at as Janet Reno.

Wed, 07/16/2014 - 10:15 | 4962472 boattrash
boattrash's picture

And in the long run, just as destructive and deadly as Janet Reno.

Wed, 07/16/2014 - 10:23 | 4962497 yogibear
yogibear's picture

Bidding up the indexes is the name of the game.

Wed, 07/16/2014 - 10:53 | 4962545 Q-Q-Q
Q-Q-Q's picture

Corporations have been assimilated into the government and are as one.............. like the Borg, resistance is futile.

Yellen wants cheaper prices for her large cap aquisition buddies, I guess every politician needs to line up somewhere to work next.

 

https://www.youtube.com/watch?v=AyenRCJ_4Ww

 

 

Wed, 07/16/2014 - 10:42 | 4962563 youngman
youngman's picture

Maxine Waters is talking...its joke time...

Wed, 07/16/2014 - 10:42 | 4962564 ejmoosa
ejmoosa's picture

Watch her rub her wedding ring when she dislikes the questioning......

Wed, 07/16/2014 - 10:43 | 4962569 headhunt
headhunt's picture

Preciousssss.......

Wed, 07/16/2014 - 10:43 | 4962572 Colonel Klink
Colonel Klink's picture

Yeah because large cap corporations aren't grossly overvalued.  Fuck you Yellen!

Wed, 07/16/2014 - 10:44 | 4962575 ak_khanna
ak_khanna's picture

Federal Reserve of the Banks, by the Banks and for the Banks. 

The rest of the country and its citizens be damned. The main aim of the political class and the central bankers around the world is to create one bubble after another for the zombie bankers to feed on. The majority of the population who actually work hard to earn their living by engaging in productive work have to pay the price by either loosing a majority of their earnings in the form of taxes, interest on loans or paying the bill for the bailouts. 

www.marketoracle.co.uk/Article40231.html

Wed, 07/16/2014 - 10:49 | 4962597 MaxPower92
MaxPower92's picture

Small caps can't afford as many (if any) lobbyists.

Wed, 07/16/2014 - 10:51 | 4962603 Bill of Rights
Bill of Rights's picture

OFR Announces New Members of its Financial Resesarch Advisory Committee - Top News - InsuranceNewsNet.com

Oh isn't this cute:

The Dodd-Frank Wall Street Reform and Consumer Protection Act established the OFR within the U.S. Department of the Treasury to support the Financial Stability Oversight Council, its member agencies, and the public by improving the quality, transparency, and accessibility of financial data and information; conducting and sponsoring research related to financial stability; and promoting best practices in risk management.

The new members and their affiliations are:

John Campbell, Harvard University

Lou Crandall, Wrightson ICAP LLC

Stephen Daffron, Interactive Data Corporation

Beth Hammack, Goldman Sachs

Darryll Hendricks, UBS

Simon Johnson, Massachusetts Institute of Technology

Andrew Metrick, Yale University

David Puth, CLS Group Holdings/CLS Bank International

Chester Spatt, Carnegie Mellon University

The committee provides advice and recommendations to the OFR on issues related to financial "stability."

Its good to see we are Most transparent and that Wall street is fully protected.

Wed, 07/16/2014 - 11:35 | 4962716 boattrash
boattrash's picture

Bill of Rights, looks like we're in good hands....to choke the life out of us that is.

Wed, 07/16/2014 - 10:55 | 4962614 Utah_Get_Me_2
Utah_Get_Me_2's picture

Woody Yellen just said 'The Fed is the most transparent Central Bank in the world'

And the moon is made out of cheese. And Obama isn't gay.

Wed, 07/16/2014 - 10:55 | 4962615 herbivore
herbivore's picture

My morning green tea almost shot out of my mouth when Maxine Waters said "You couldn't be clearer" following Yellen's convoluted answer.

Wed, 07/16/2014 - 11:02 | 4962619 Squid Viscous
Squid Viscous's picture

every time she starts a sentence with "So, blah blah blah" must drink...

Wed, 07/16/2014 - 10:59 | 4962623 JR
JR's picture

15 July 2014

Nanex: The Market Is Rigged, With Details | Jesse's Cafe Americain 

"A rogue does not laugh in the same way that an honest man does; a hypocrite does not shed the tears of a man of good faith. All falsehood is a mask; and however well made the mask may be, with a little attention we may always succeed in distinguishing it from the true face."

Alexandre Dumas


The market is rigged.  Oh no, this could not possibly be correct, say the trolls, shills, revolving door careerists, media carnival barkers, and conmen's assistants. They simply do not understand it!

The analysis from Nanex, rich in details, does not only apply to very large orders in excess of 10,000 shares.  I have seen the same type of activity in smaller markets with orders of only a few thousand shares.  Anyone who has Level 2 access can observe it if they look closely enough, and have the will to look with their eyes and see.

These pampered princes of Wall Street are steadily degrading the markets, and distorting and taxing the real economy with their bias to speculative grifting rather than facilitating productive investment.

I do not agree that a 'free for all market' would be better than this.  Some of these schemes are as basically corrupt as a West Coast gangster's attempt to control all the horse racing wire services information for his own benefit.  And you don't fix corruption by firing all the police and prosecutors.

There are a few things that would go a long way to fixing this.  Fairness is not so terribly hard to establish if you do not wish to twist it with the faux complexity of a confidence racket that advantages some because.

I suspect that nothing will work until we root the big money out of politics.  Its corrupting influence touches everything and is corrosive to the common good, giving scandal to all by its shameful example. 

In some sense, this would be turning the markets back to what they were before they became utter casinos dominated by big players unleashed by the repeal of Glass-Steagall and the divestment of sound regulation in the name of a utopian market ideology that serves to promote a new level of systemic criminality.

This is analysis and conclusion below is from NANEX:


"...All this evidence points to one inescapable conclusion:

The order cancellations and trade executions just before, and during the trader's order were not a coincidence. This is premeditated, programmed theft, plain and simple.

Michael Lewis probably said it best when he told 60 minutes that the stock market is rigged.

To the High Frequency Traders (HFT) that make fantastic claims about providing liquidity, perhaps one should ask: "what kind of liquidity"? To the now obvious, ludicrous claim that "everyone's order uses the same tools that HFT uses", we'll just say, the data shows otherwise. To Mary Jo White and other officials who claim the market isn't rigged and that regulators need to look at the data before making any decisions: well, you made it this far - if things aren't clear, re-read this expose (or the nearly 3000 others pages we've published), or simply call us and we'll explain it to you. Or dust off Midas and lets us show you how to work with market data.

One more note to the SEC in particular - if you believe that the industry can fix these problems on their own, then we believe you are no longer fit to regulate, because that is not, and never was, how Wall Street works. Honestly, a free for all, no–holds–barred environment would be better than the current system of complicated rules which are partially enforced, but only against some participants. And make no mistake, what is shown above is as close to automatic pilfering as one can get. It probably results in a few firms showing spectacularly perfect trading records; it definitely results in people believing the market is unfair and corrupt.

And to CNBC and other financial media companies who say these problems have all been fixed - we think you might have been lied to. Probably by the ones doing the market rigging. A certain HFT lobbyist group immediately comes to mind - the one that presents the same tired "liquidity, spreads, costs" argument, without data to back it up. This paper shows that the liquidity claim is clearly a lie.

Academics interested in continuing the study shown on this page - we believe we know how you can find and quantify these events. Serious inquiries only please.

Note that none of this would be possible if the direct feeds weren't illegally supplying HFT with faster information than the SIP.

And finally, to our regular readers: we are taking a break. Everyone has a limit to how much corruption they can witness and digest in a given period of time and we've simply reached our limit."

You may read the detailed examination and explanation of this from Nanex here.

http://jessescrossroadscafe.blogspot.com/

Wed, 07/16/2014 - 11:02 | 4962628 Squid Viscous
Squid Viscous's picture

bachus, what a banker ass licking piece of shit, with meaningless questions

Wed, 07/16/2014 - 11:00 | 4962629 Utah_Get_Me_2
Utah_Get_Me_2's picture

Bachus is a chode. 'Valued public servant'? The Fed 'chair'? Good lord we are in trouble.  

Wed, 07/16/2014 - 11:04 | 4962648 Squid Viscous
Squid Viscous's picture

So...this country is so fucked...

Wed, 07/16/2014 - 11:06 | 4962653 QQQBall
QQQBall's picture

Thank chick in the pink talks like Ricky Ricardo

Wed, 07/16/2014 - 11:11 | 4962662 Squid Viscous
Squid Viscous's picture

"not outside of historical norms" ...? when did the trans last trade at 21 times earnings? wtf?

Wed, 07/16/2014 - 11:12 | 4962673 BouncingCat
BouncingCat's picture

Can't allow small to medium sized companies to thrive!  Shovel all your money at the big ones!  That way the federal government can better control everything.  They love a smaller number of targets.  It makes their life easier to extract insurance payments. 

Wed, 07/16/2014 - 11:15 | 4962677 ejmoosa
ejmoosa's picture

Bingo!

Wed, 07/16/2014 - 11:33 | 4962714 ejmoosa
ejmoosa's picture

Why is Productivity Growth so Low?

Here's my theory:

The cost of fund is too low.  COnsequently, businesses have no reason to pursue projects or growth strategies that require a return on investment that is any higher.  All of these low return activities that companies are pursuing pull down the averages.

Were rates higher, companies would not be doing ANY of these low return projects.  They instead, would choose higher return projects that require higher rates of prodictivity to even be justified.

I was a financial analyst back in the mid 80s for a regional bank.  I had to incorporate the rate of return on each and every project.  We used a cost of funds at that time that was higher than 8%.  Consequently every one of our projects required a return on investment much higher than that.  We did not pursue many projects becaue they returned too little.

We are not being pushed to increase productivity because we do not need to.

 

Wed, 07/16/2014 - 11:42 | 4962750 A82EBA
A82EBA's picture

why dont they ask where she got the $ to buy all that gov debt?

Wed, 07/16/2014 - 12:06 | 4962849 Utah_Get_Me_2
Utah_Get_Me_2's picture

Because this is a gigantic, fraudulent dog and pony show. The more petulent and fawning the Rep.'s questions are, the more blackmailed and/or bought off the Rep is. Did you see Yellen choking up when she was bloviating about the improving economy? The mouthpiece stooge could barely get that bullshit past her fucking lips.

Wed, 07/16/2014 - 12:04 | 4962842 Baby Eating Dingo22
Baby Eating Dingo22's picture

A lot of empty seats in that room

Happy hour at the Capitol Grille?

Wed, 07/16/2014 - 13:03 | 4962960 ebworthen
ebworthen's picture

Mordor on the Potomac Grille.

They're disemboweling an Elf Princess on the Capitol steps after she's gang raped by the 5th Orc legion of Isengard.

MRAP's and pepper spray for show.  Bonfire of Ent logs with Hobbits on a spit.

Wed, 07/16/2014 - 12:20 | 4962915 kurt
kurt's picture

The U.S. Dollar is defended by the full wrath of the Federal Reserve.

Wed, 07/16/2014 - 12:22 | 4962930 El Hosel
El Hosel's picture

"its not the Fed's job to deflate bubbles".... "Sell the Russel, Biotech, and Socia Media" - Janet Yellen

Wed, 07/16/2014 - 15:02 | 4963677 Itchy and Scratchy
Itchy and Scratchy's picture

Do you think she has any clue WHO created those bubbles & over valuations in the first place??

Wed, 07/16/2014 - 15:16 | 4963869 petaloka
petaloka's picture

Has anyone ever seen Janet Yellen and Martin Short in the same room together?

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