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"Stocks Are More Crash-Prone Than Ever," Fleckenstein Slams "Fed's Idiot Policies"
Infamous short-seller Bill Fleckenstein left a CNBC anchor questioning her faith in the status quo in this brief interview. As she pestered him with questions about 'missing out on the rally', Fleckenstein snapped back "so what? I don't care, it doesn't matter" asking rhetorically "when the market declines, how fast will it all be taken away from you?" Fleckenstein warned "I don't think we will get through October without some accident," adding that "the stock market is more crash-prone than ever." When pressed again about sitting on the sidelines, Fleckenstein rebukes, "if you want to pursue idiots like the Fed doing crazy policies, and if you think you can get out in time, go for it. I don't want to try to do that."
As CNBC notes, some traders might regret missing out on what may go down in history books as the bull market of a lifetime, but "I'm not kicking myself," he said. "I don't care, it doesn't matter."
"I don't have to play every day," he added.
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I am curious wonder if someone might help:
If tomorrow 10 or 15 or 20% of the dollars (of notional) were cashed-out, what would be the % change in index?
I'm going to save his tirade and on November 2, I'll reprint it here.
October 2014, I assume he means, will see a major 'accident' in the market??
No, I don't think so.
As a pro, he need not go out on the limb he has crawled onto.
The guy railing on about 'tight stops' is an idiot - and clearly he has NO stops. The algos eat tight stops alive with their mini flash crashes -- and when they do the idiot would be out of the market with a loss. And if he has had tight stops in place during the rise he would also have been knocked out of the market and missed out himself -- or at least would have been stopped out during a mini crash and then had to buy back in again at a higher price. The clear intent of the idiots is to make sure that a bigger idiot buys what they have already bought - but at an even higher price.
Obviously this guy cannot make money in this market
Dire Straits - Sultans of Swing | NOT LIVE !!! | CD version !!! | Original w/ lyrics in description
http://www.youtube.com/watch?v=xo-J1wf2KHc
I've got a solid plan. When the Dow hits 321,000 early next year, I'm going to sell. When I see the Dow hitting 6,723,415 in mid 2016, I'll probably regret that decision, but I must stick to my plan. A Dow that matches the Natonal Debt in 2017 will probably be another good precursor.
News Flash~ The Goal is to destroy and dismantle, purchase low and sell high (your countries). Mission Accomplished.
lol> That assclown tells Fleck he should be trading the markets with tight stops and he'd be making money and protecting his positions.
I can't wait for the morning that idiot wakes up and all his trades are KO'ed because the market opened (gapped) limit down 1000 points and skipped right over his SL's.
What a fucking retard!
The FED owns the software. They are going to do what they want to until they are arrested and thown into prison.
Long live Ron Paul
https://beta.congress.gov/bill/113th-congress/house-bill/24
It's bear hibernation season.
I've been out of stocks since 2003 and into PM's since 2004. Too bad I didn't find out sooner and put more into PM's.
The point of the stock market is to make money. Bill kept his money out of the market and didn't make money. He is right but he still lost money.
Maybe when it's all said and done, he'll actually be the one who made the most money.
How could he have lost money if he did not participate?
It's only a profit if you've completed selling, I'm with this guy I really don't care about this casino and its guaranteed easy profits, it doesn't matter.
I bet old Fleck will get to nail some of those 30-something CNBC bimbos who haven't been around a dude with measureable testerone since hiring on with CNBC.
The stock market "gamblers" cannot create wealth, so what do you expect them to do?
The problem this time unlike previous crashes is that Every Major Central Bank is buying Indexes on any dips, how can the market crash if they are intervening en masse, I can't see how the market could come off 1000 points this time round with 24h Central Bank manned dealing desks with software programmed to intervene at key levels ...the only way that I see this happening is a MaJor War or one of the CB's walks away ?
They may well get together and decide that the levels are too high but then they would just take it down slowly to the new agreed levels over a period of months....IT IS DIFFERENT THIS TIME there is no Stock market just a Central Bank computer programme.
another possible way for a reaction may be a COMEX default but how long have we been waiting for that, supposedy Silver warehouses are almost empty but still the price falls...
I am laughing at you and the rest of the bears. Every f***ing fund manager in the world is buying into this rally. And why not? How many more TRILLIONS of $ are out there, freshly minted and ready to pour into the markets? And the fund managers are leveraged at what? 20:1? 30, 40? 200? Who knows? Can you said, “LIMITLESS”, sure you can. Hedge funds are doomed and Janet is laughing at them. The Fed has demonstrated there is NO downside risk at all. You say, “What about food prices?” Nobody f***ing cares so long as their stocks soar. The poor use EBT cards and the rich are laughing all the way to the bank. The rest bitch a little and pony up. With cheap oil and near-zero rates, SUV sales are of the charts. If the repo man gets the Expedition, they buy a new one the next day.
For the first time in HISTORY the Fed has issued implicit and explicit guarantees to support the equity markets. You are shocked by the level of money creation. Right! Prepare to be even more shocked buddy, because at the first sign of weakness more QE coming out. Who would sell with no risk any longer and no other game in town?
The quarter will end soon and there will be plenty of weak earnings, falling revs, no more buybacks to boost EPS, etc. Bears will load up on shorts and inverse ETFs and Janet will crush them. Just a few words about needing to help employment along with maybe another $1T QE and it’s Dow +500 in a few hours. For the bears to win more than an occasional day, will require either WWIII with nukes flying, or a complete loss of Faith in Fed. Hope you have deep pockets.
Hey, I've got a better idea... Why don't they just mail me and everyone else a check for say $10,000,000.00. Wouldn't that be easier? Then I'll swear not to listen to Fleck anymore...
Read TT's posts and write the backstory with your own intellect.
"because at the first sign of weakness more QE coming out. Who would sell with no risk any longer and no other game in town?"
Most in the market already realize it. Zero downside risk until the US dollar falls and dies.
Those in the US agree. Infinite money printing for goods in China and elsewhere.
Why produce anything, just print.
That's why they make gas chambers! Choo-choo...here comes the camp train...all aboard!
Professor Irwin Fisher told the world about that "permanently high plateau" in 1929. His monthly cheques from the Wall Street banks were the reason.
Is the stock market really the best place for america to place its wealth.
Does the world really need to contibute more to the Dimons of the world.
How many golden toilet seats do those guys need.
Let them eat bitcoins.
Fleckenstein is the idiot for talking to these CNBC numb-skulls to being with.
He must be hurting.
Mr. Fleckenstein should have pointed out that the current market rally is a zero sum game of Musical Chairs.
Simply put, don't get caught without a chair when the (Fed Induced) music stops.
Actually, he did say as much, just in different terms.
I fucking hate that we must witness this fucking train wreck in slow motion speed. And so does Bill.
If Fleckenstein is heavily into short selling, it is understandable that he should be pissed at the Fed under current conditions.
Yellen's remarks about the Fed's reverse repo program deserve more attention from ZH readers. In a classic example of unintended consequences, the Fed's program of paying interest on excess reserves (funded ultimately by the taxpayer) has had the effect of almost closing down the interbank lending of excess reserves, the rate for which was the Fed's primary policy tool prior to the Lehman catastrophe. Are there data available on the volume and rates paid for excess reserves? Similar data on the Fed's new reverse repo operation would be useful.
This is the kick in the teeth the gold-bulls have to take because nobody saw the beat-down-bear in this market in 2012. It truly sucks, and is an aberration. Bill hails a correction that is coming, he called it too soon. I hope he has some fiat left to run the table when it counts.
Buy gold, Zerohedgies! The Yellen-Obama-Islamic State axis is debasing the dollar and leading us into SOCIALISM! If you can't see the hyperinflation, you're just not looking hard enough!
One reason why the Fed and senate don't want an audit.
Can we all agree that in a rigged game it appears one way but as soon you join in the game it is not as it appeared, and in fact, is the opposite? As in the books look good, but are in reality ...triple a rated! No worries! Jump in! What? It's.....gone. South Park wasn't kidding.
Show me a bankster that doesn't speak out of both sides of his ass. And don't get me started on bank lackeys and stooges.
Join the free shit army and collapse the system.
"Join the free shit army and collapse the system."
Know a few multi-degreed people collecting disability for the last several years after their jobs were oursourced overseas. The government knows about it but looks the other way.
Another form of corporate welfare. While H1B laws are ignored.
Good for him really...what I hated about the last Fed statement was that it felt like, actually it was.....that Yellen implied the only way to make money is to "own assets".
FALSE
There should, and in the end, ARE, more ways to make money than buying teh stawks
esp for poor people who cant afford them!
america is ground zero for global socialism, we're now going through the needed facism to get us there.
govt. controls 70%-80% of communication, the financial sytem, 50% of americans corp.'s, the ones not headquartered overseas, are giving up, will be federalized after the crash, and o'bama-care.
there is no hurry because i figure at least 60% of all americas commerce is going into the fed.'s pocket now.
the fed's going to crash the economy, they just have to fix one mistake, adding MMA's being converted to myra's just as 401K's, instead of just gating them.
the hedge-fund people are going to lose money, but not nearly as much as the working americans.
The only way to win is not to play their game.
What is "not playing their game" in your opinion? Holding cash in a bank? Holding banknotes in your mattress? Holding (phyzical) PMs (Au, Ag) ?
PMs are the lynchpin, because they are money. Money with NO COUNTERPARTY RISK. Everything else within the fiat realm is and can be managed, massaged to whatever price they want. In fiat terms the stocks could indeed keep rising, but at some point PMs will rise (or be revalued much higher) against all fiat currencies, and then you either do or do not own phyzical PMs. When will that be, I do not know, but it will happen within the next 10 years, probably more like 2 or three. Till then the PM bulls and fleckenstein will look like fools, but time will prove them right, eventually. Current price levels of PMs are at or below cost of production, and the (golden) BRICS are accumulating pretty much all the mine gold on their own. Somthing's gonna give sonner or later. If that was not so, why would CBs own (or even add on to their) gold *reservses*. Bells never ring at the top, nor at the bottom. Best of luck to all.
Ohhhh, they edited the audio to remove the bit that comes after "so what". So there's nothing in there about getting out before the crash. Clearly they are worried.
Oh markets going to crash big time at some point but not when there is enough money to pushed to the system around the world QE in Europe, China etc. As I person who recently was in China I can say I dont trust shit on their economy. Housing market is in a standstill nobody is buying old appartments those who can afford buy new but they are few it seems the whole country is waiting for the prices to drop. Although doesnt stop the empty buildings and shopping malls popping up everywhere.
PS. Dont fight the FED.
Fleckenstein Looks like a schizophrenic on Xanax.
He doesn't care my a s s
Who's this schizo guy
would be helpful if you could show why the big stock holders (ins co, pension funds like calpers, aig, pru, 401k money managers , oh and the banks) would sell and go to cash. the make up of the market (long term holders of equity) will not allow a sell off, that is why 2008 is a very big ??. 2008 showed it can come down, but only with consent of sec and the big stock funds. ZH was founded on 2008 but we still have no clue why or who "pulled it"..maybe we could demand Chris Cox testify..good luck with that.
"but we still have no clue why or who "pulled it""
@ OM, Gromen has his unique views here!
Can The Petrodollar Survive Low Interest Rates?
http://www.zerohedge.com/news/2014-09-16/can-petrodollar-survive-low-int...
In terms of real wealth the Fed is stealing trillions of dollars from those with money holdings and others to prop up the stock market, the housing market, the bond market, the govt, and some banks. This will not go on forever. It will not end well.