This page has been archived and commenting is disabled.
Bullard Does It Again, Says Market "Misread" His QE4 Comment
Here we go again.
By now everyone, including 2 year old E-trade babies and Atari algos know, that the only reason the market soared from the October 15 bottom, a move which we showed was entirely due to multiple expansion and thus nothing to do with earnings and everything to do with faith in even more free central-planning liquidity (something the PBOC was all too happy to provide overnight), was James Bullard's casual "QE4" hint on Bloomberg TV.
Since then Bullard has become the punchline of every financial joke, as it has become far too obvious that the Fed will never allow even a regular 10% correction (October 15 halted the closing market drop at just under 10%).

And now that the market is at ridiculous all time highs and trading above 19x GAAP PE, far above the level when in September the IMF, the G-20, the BIS and even the Fed all warned of assets bubbles, here is Bullard once again, with a fresh mea culpa and a new attempt to jawbone stocks, only this time back down, because as Dow Jones reports, "Bullard Says Markets Misread Him In October Bond-Buying Dustup."
According to a DJ report, markets were rattled by comments Mr. Bullard made in a Bloomberg interview just ahead of the late October Fed policy meeting. He said the central bank might want to consider extending a bond-buying stimulus that was almost universally expected to end that month.
Then, after the meeting, Mr. Bullard praised the Fed's decision to end the bond purchases, and again argued in favor of interest rate increases next spring, at a point earlier than many investors and officials expect. There was sense of whiplash: that Mr. Bullard had within a short period shifted gears on monetary policy.
In a Wall Street Journal interview Thursday, Mr. Bullard attributed some of the confusion to the fact that many market participants didn't listen closely enough to what he said. He allowed that monetary policy making has become far more complex and thus more challenging to communicate. But he underscored an underlying consistency to his view, noting what he said about the Fed's bond-buying program hadn't altered his long-running view that short-term interest rates should be lifted off their current near zero levels next spring.
"If you actually go look at the [Bloomberg] interview and go look at what I said, one of the things I actually said was I'm not backing off my interest rate, my March interest view," Mr. Bullard said.
The idea that it might be a good idea to press forward for a bit longer with bond-buying was rooted firmly in the ominous market conditions that prevailed ahead of the October Fed meeting, the official said.
"Global markets were saying there was going to be a global recession. And one way for the Fed to react to that would be to delay the end of [bond-buying] and get more information," Mr. Bullard said.
So according to the brain behind the St. Louis Fed, a 9% drop in the S&P is indicative of an imminent global recession? And, one wonders, what does the subsequent 15% jump "say" about the global economy? Oh wait, Mr. Bullard, is only attuned to the moves down in the S&P, which are due to the market being wrong. However, when the market surges on hopes of more liqufity, the market is said to be right about an economic recovery.
Got it.
"Maybe global markets would have been right and maybe there would have been a global recession coming, in which case we would want to have plenty of leeway to react to that," he explained. It would have simply been a "low-cost" insurance policy to keep going with what was then $15 billion per month in bond purchases, get to the December Fed meeting, and see where things stood, he said.
But as it turned out, the market problems proved short-lived, recession fears abated quickly, so the factors facing Fed decision making changed, which in turn supported an end of bond-buying in October, as expected, Mr. Bullard said.
Then agan, this being Bullard, it is, sadly, all bullshit:
"I'm one that wants the committee to be nimble and be able to react to data that's coming in. So maybe it's more natural for me to say we can shade our position one way or another in response to macroeconomic developments" as they happen, Mr. Bullard said.
Sorry, James, have lost all credibility, but thanks to you all those others who have been correctly claiming that it is only the Fed that impacts asset prices were once and for all vindicated.
However, it appears that the FOMC comments have finally overriden Bullard, who will have zero leeway to comment the next time the market "plummets" by 9%. As a reminder, this is what the Fed explained about the next time there is a surge in volatility:
... members considered the advantages and disadvantages of adding language to the statement to acknowledge recent developments in financial markets. On the one hand, including a reference would show that the Committee was monitoring financial developments while also providing an opportunity to note that financial conditions remained highly supportive of growth. On the other hand, including a reference risked the possibility of suggesting greater concern on the part of the Committee than was actually the case, perhaps leading to the misimpression that monetary policy was likely to respond to increases in volatility. In the end, the Committee decided not to include such a reference.
Translation: Bullard had not been given the green light to comment and lead to the market surge which wiped out all mid-October losses. And now the Fed has explicitly warned that the next time the market swoons, nobody will be stepping in with casual, if snyde, QE X commentary.
Then again, we will believe it once we see it.
- 12079 reads
- Printer-friendly version
- Send to friend
- advertisements -


At the very end, what Pentagon wants, Pentagon gets.
Anybody else (including bank lobby), get in line to beg Pentagon, or else.
Bullshit. You gave yourself away already. The Fed and the primary dealers coin the money that the warmongers need to stay in business. Wake me when the bankers and other useless financial fucks are dead and the treasury is coining the money again under the watchful eye of the pentagon. In your model the Fed/Wall Street are useless middlemen. The MIC makes real shit, they would have cut costs long ago if what you say is even remotely true.
I think you meant print the money. The mint used to coin money but they ran out again.
I'm wondering....how does ekm1 get the first comment on all these threads?
And does anyone really buy this garbage about the bank lobby he keeps yapping about? Fact is, the Fed and member banks are running the show and have been all along. The Pentagon? Seriously?
twitter. Whenever I notice zh tweets a post, if I am not busy, I comment
Its great to know that it takes this buffoon bullard over a month to say that the market misread his comments..Man, what a fucker.
Assuming "what a fucker" is tru, the question then is does he give orgasm? Or is he a wanker?
I think your remark is rhetorical. "Fucker" has a double meaning, like Dubya means: "Rubya out Saddam!"
Bullard would be a good name for a baloon to the moon; Bullish Bullard! Like Phileas Fogg!
without even reading the article I might add, since your first comment was 1 minute after it was posted.
Pentagon can't take a dump without the Banksters money to buy the Charmin.
Well said.
"give me control of a nation's money and I care not who makes it's laws (or defense appropriations)"
Correct:
Keyword:
GIVE ME
Rothchild wanted that power to be given. He didn't take it by force. It was given to him by british military
really? when did they control Germany? maybe I missed that lecture in European History 101?
FYI - the quote is from Mayer Amschel Rothschild, not the son Nathan, perhaps you are confused
It has been given to the Fed and their primary dealer banks. Exactly my point.
And it is being taken away quite subtly.
They gave it to them in the early 90s afte soviet union collapsed. People thought nirvana was imminent.
Up until soviet union fell, Fed was at the service of pentagon
What horseshit. You're not only wrong, you're delusional.
You luuuuuuuuuuuve my posts, don't you?
Keep getting educated, keep reading
Education? Haha. I would suggest that you start listening more around here and talk less.
You just got schooled by LoP. Wake up. You have it backwards.
I will GLADLY stop commenting if readers want me too.
This is a hobby for me, just entertainment
Well ekm, I appreciate your posts. I never understood your talk about war between bankers and MIC.
I think now I do, and I am sorry to say, you are wrong.
They are not at war with each other. MIC does not conquer and steal treasure. They conquer and force currency on subjects.
Been that way for a long time.
All wars are bankers wars.
In the old days, I could say that MICs could be opposed to banks, as MICs could pay troops and buy bombs and fuel with treasure. The MIC today pays for troops and goods with legal tender banknotes.
The only army that does that today is ISIS, and that is cause they cannot find them a central bank to loan them $$ to buy shit. So they go old school.
pods
in all fairness ekm might be into something ... if you look throughout history there is this struggle between strong military man and financial wizard, bankers types ... remember Napoleon and all the bankers around he tried to tax etc ... the same story with King of England ,,, it is really a theme throughout history....
I didn't get it at first either. He's been kind enuf to draw me pictures when requested.
Read an article somewhere last week that reiterated exactly what ekm1 professes.
This is going to be most intriguing conversation at a xmas party where one spouse (Phd. history) is the most loud mouth arrogant SOB & his demure wife statistical analyst (military) that was in the thick of 911, yet could not answer why NORAD was not deployed.
Everyone has their place in the propogandized need to know pyramid. Some are lucky enuf to learn in spite of it.
In the USSA there are only 4 offices that count (State, Defense, Treasury and the CIA) and they all have the same ambition - US hegemony. The financialization of the economy has certainly created stresses in the relationships(in addition to the jealousy against unworthy usurpers to power via fictitious fiat wealth), but I don't see schisms (yet) when the mIc starts developing financial alternatives (beyond barter, say perhaps real commodity banking and non-debt money) then I would admit we are at the point he describes.
And the last time such power was revolked from a central bank what happened?
Again, you are full of shit, if not a banker yourself.
Great stuff happened. 2008 crash.
So another 2001/2008 crash?
Sorry, not going to happen, central command has made real selling impossible. The only thing you might have right. If you have specific credible information, let's see it.
1972 gold de-link
15 years to create too much dollars
Crashes every 7-8 years to mop up excess dollars:
1987
1994
2000
2008
Next: 2014/2015
Inevitable. Otherwise the world just stops real trade
I am well aware of this "analysis". The problem now is the debt load.
In addition, you can't say that "central command" is running the markets but then say the markets will crash like before, completely contradictory. Real world trade in dollars is in fact stopping/declining (explains dollar velocity nicely). Does not impact the BRICS as most of their people understand and already live in poverty and operate in black markets. 'mericans are gettign a temporary dollar strength, but that dollar denominated debt will need to be rolled over soon enough.
Moreover, companies like PetroBras are NOT equvalent to Exxon etc. Total ignorant to think so.
Your expectation is for piles of dead bodies on the street.
My expectation was 1 or 2 and lesson learned, which occurred last week with the elimination of the citi guy.
Your desire to revenge is quite human, but the system does not work like that. Washington DC is not Moscow or Beijing where such stuff occurs daily.
I only observe the system. Pentagon rules. Period.
Revenge is irrelevant, trade is not. Trade requires real inputs, so does the MIC. The Fed cannot print up real inputs and again, if the system works as you claim the piles of dead bodies will come. Still don't see it yet. The vast majority of paper pushers are still doing just fine.
Let me reitereate this again: DC is not Moscow
Irrelevant. It's a global market.
World Market cannot exist without being enforced by US Navy and Air Force
...and they burn oil, purchased with dollars.
No, no, no, no, no.
You should try to understand how the system works.
Dollars are just an accounting entry on a computer, just a transaction book item.
Saudis send oil in exchange for protection.
Some people on computers type in the transaction, thus creating dollars.
It is saudis creating dollars, not bank lobby
Hence, no need for gold to be used as reserve, at least until the alliance breaks.
Dollars are just booking record, nothing else
"It is saudis creating dollars, not bank lobby"
FFS, you can say whatever you want to pal, but it doesn't make it so.
So be prepared to get hammered on like a pinata when floating these theories of yours.
Theories?
I am only describing what is actually happening. That is how it exactly works
Yup, mankind is still bartering for real goods with real goods, only the skimming got much more pervasive.
Banksters must giggle themselves to sleep every night.
Keep posting ekm1.
Sometimes I agree with both sides of the debate and appreciate opposing perspectives. Interesting parallel in you experienced the fall of the eastern block as Mandelbrot did the nazi invasion of France. IBM snatched him up when others ridiculed him. We all know the roll played by that corporate benefactor. All these little electronic gadgets wouldn't exist without his vision either.
If I've learned one thing in life...
All is not as it seems, nor do we see it all.
In all fairness pooty poot did emasculate the navy.
Piles of bodies are certainly a possibility especially in a SHTF scenario.
TPTB are trying hard to foment just that with division.
Do humans ever REALLY learn a lesson?
To reiterate: DC is not Moscow, where Putin literally orders FSB to bake traitors and oligarchs in ovens alive. This actually happens literally.
1, 2, maybe 3 direct eliminations and lessons gets learned. DC is not Moscow, it is a lot more sublte, not raw like Moscow
Nothing about lampshades or incubators?
LoP is right. MIC is a way for FED to keep expanding debt.
In the old days, military used to conquer and take treasure. Now they conquer and force the FRN on a conquered people.
If MIC has a convory of tanks, and needed fuel, how would the MIC pay for it if not for conjured money?
pods
Because conjured money nowadays is just a computer where data entry people type up numbers.
No need for sophisticated finance like rothchild of old
Again, bullshit. Someone has to provide that refined gasoline and deisel.
I am not getting your point.
Pentagon brings oil and commodities.
Refineries and plants convert it to usable stuff
What are you talking about?
Exon and other international energy providers/extractors are not the pentagon.
of course they are. Who defends their assets worldwide?
Again, very ignorant statement as companies like PetroBras are not equivalent to Exxon or BP.
Please, the bankers have destroyed PetroBras equity, despite them being the largest producer in the Americas.
Ok, I am an ignorant. I accept that.
Now I see why you keep wondering. You don't understand how the banking system works.
It is just an bookeeping entry. It is saudis that create dollars. Bank lobby just type up the transaction on computers and manages the dollars created.
That's it. That is the point of not using gold as reserve, since gold cannot be typed in.
those godamn saudis ... i knew it...
Agree that oil and dollar are connected by the hip like siamese twins
But it's not the saudis who create the dollars.
The US enforces trade of oil in dollars by way of guns (MIC) which are under the thumb of Jewish Senators and Jewish Wall Street bankers. Granted they're not all Jewish heritage or even dual citizens but there are enough to call it a conspiracy.
Let's call a spade a spade
Yes, I dont know how ekm1 dont see what you wrote walkure, but then again, maybe he wants to look like hes politically correct.
Israel is guinea pig in the hands of US military as a reliable ally to control middle east oil flow
If hypothetically middle east runs out of oil, US military leaves and israel will be wiped out by arabs. Nobody would care.
Right now? Israel is indispensable for as long as there is oil in the middle east, hence they matter and matter a lot
Think of bank lobby as a hired bookeeper of business that pentagon does.
Nothing else.
They only keep record of transactions done by pentagon, thus creating dollars and manage those dollars created.
And there is the trick. That capacity to manage dollars that pentagon and saud create, can be restricted
time to get back on the meds ...
get a life and stop reading my posts
how about stop posting nonsense? and take the pills from the nice nurse lady and go back to your room, dinner is at 5pm sharp!
I'll gladly do that, if readers want me to. No problem.
I'm here for entertainment only
at 350° or 400°...? So how did they come out...??
"1, 2, maybe 3 direct eliminations and lessons gets learned. DC is not Moscow, it is a lot more sublte, not raw like Moscow"
Yup: Rhodesians vs. Leninists.
Which has more fire power, then end of a printing press or the end of a gun/laser?
Everyone has their assigned slot.
The prices might vary but it's the real shit that matters not the money. The money matters because of the massive explosion in production of oil and natural gas inside the USA. This has nothing to do with the military save for the fact that they pay for that oil and natural gas (and all the other things) in dollars. Interest rates have plunged, spending has soared and the deficit is WAY down. Those are VERY valuable dollars in my view. So no I don't see the whole thing...or any part of it really...as "conjured up" at all. The amount being burned up on the electrical line however is criminal in my view (as in a price fixing scheme.) at some point this bill will come due however (12 billion for Ebola but keep letting the folks with the disease in the USA? If that's not an impeachable offense I don't know what is.)
In the meantime keep stacking dollars. At some point all the dopes who voted for Nancy Pelosi will be paying 5000 DOLARES for a loaf of AMERICAN bread.
Bullard-Yellen like how the ECB has been able sweep so much under the rug with mere words, hence the mind game he's playing here.
Dana Perino defends Obama's supposed legal right to declare amnesty for millions of illegal aliens:
http://tinyurl.com/mdkemhe
I am not arguing at all that Ballard was the the prime reason for the massive rally-and then the ECB-Japan and now China CB's have just launched us into euphoria heaven-really, I think I see god : ()
But sentiment played a roll before any Fed jawing-how else would the date have been predicted 3 weeks before? 10/15-ish was the turn date in the September 23rd newsletter--see for yourself-it is the full newsletter.
http://www.sentimenttiming.com/free/
was it written in hebrew?
perhaps he can return my losses?
Why do people pay attention to this idiot. And what is he doing on TV all the time anyways? I think this is a dead give away the job is bullshit and all about appearences. You see maybe 2 famous scientists on TV often, the rest are busy, you know, doing shit. But when it comes to economists, its 50% tv time, 50% buy SPOOS
Mr. Bullard is not an idiot but a respected member of the Fed ... a governor i might add
He's keeping the uptrend intact! LOL
Matthew McConaughey tries to pronounce "fugazi" the right way.
http://www.youtube.com/watch?v=oEJza1-4zRk
.
" i ate your sandwich yesterday." h.h.
Hey Tyler, whatever happened to that guy at the St. Louis Fed that called you a dickhead?
Maybe he should retweet and replace your name with Bullard's.
Well then keep your mouth shut next time, idiot.
(This comment brought to you by the ghost of my Grandfather)
Guess they should reset the market back to that level then if it was a mistake?
So now it's a game of Simon says? Simon says do this, Simon says do that, Simon says do this... do that. hey you guys misunderstood me. I didn't say Simon says.
Guy is probably watching a ticker with a hard on and smug look.
http://en.wikipedia.org/wiki/Egocentrism
He will probably cry like a baby when they come for him too.
pods
At some point the Fed won't matter. When that occurs the US dollar will be in free-fall and they will have lost control of any confidence.
Maybe after QE 9, like Japan and it's QE9.
There's no way the Fed. is going to even think about raising interest rates with the $usd at these levels vs other major currencies.
There's going to be a tidal wave of deflation from Asia next year, and then the Fed. will have to print or come up with some other "cockamayme" idea to take pressure off the dollar and counter the deflation.
someone needs to slash this motherfucker's throat and let him bleed out
with these "low" gasoline prices, a trip to St. Louis is quite enticing?
It's quite astounding to me that with such hastily spoken words Mr. Bullard could control arguably the most powerful stock market in the world.
Our economy really is in deep shit when all we have left are the useless powerless words of Blowhard Bullard.
Things are just completely out of touch with reality and the American stock market is a Cocaine Whore for cheap free easy money.
How can they ever remove the "punchbowl"?
it's just insane really.
"You folks that are not economists are at fault for understanding what I said," said Bullard. He continued, "After all, I am one of the elite. And you're not."
It is insane. The Fed will nevery recognize that Fed policy is itself the risk, that they pretend to defend against.
Jimmy premature ejaculation Bullard.
Where's a NYPD officer and an errant bullet when you need them?
Hierarchy of the New Rome, from most to least important:
I think you may have placed fringe bloggers (of the ZH variety) a little high on the list.
Well fuck ebworthen. Back to work then.
lol, ghoulish, and ominously hilarious.
Chinese "students" slurping cristal and driving Lambos in So-Cal are a major waste of time and space. It's a parasitic class in its own and deserves a new category on your list.
I'm so fucking sick of all these central banking bullshit games.
Blew my load on Jan 2016 XLF puts a few days ago. Problem is that these fucksticks can keep printing like lunatics and passing the buck around the table indefinitely.
The gig will eventually be up, but I don't have as much confidence that it will collapse by Jan '16.
I truly can't wait for the day to see some politicians, central bank twats, and wall street "bankers" with nooses around their necks....
Bullish!
BS = Bullard Shit
This is not a market you short. One of the important lessons I learned is to remove emotion from trades. You want all want to see this market and system collapse and the rats scurry into their holes but it's not going to happen for a while yet.
Never in history have central banks acted in such concert but now we have the Fed pretending to tighten, while europe, japan and china step up easing (coincidence?), while oil plummets.
Any shock to these markets will be followed by a last-gasp blitz of monetary easing of the like that will make your eyes water as the leaders grasp to their last strands of power.
If you want to short the f**k out of something why not try the ruble or oil, or the swiss franc. Leave this sh*t alone!!
The markets are hyperinflating in the numeraire of dying fiat currencies, which by extension says the monetary system is dying. Remember there's a three day trade settlement period before one can take their winnings out of the casino and buy groceries, energy, etc.
"and the deficit is WAY down"
Sure it is..... Looks like $18 trillion very soon.
http://www.usdebtclock.org/
Have to start paying more for Social Security and all those 5 million illegals and the ones backfilling on welfare.
If Mr. Bullard would just shut the fuck up and not saying anything ever again, he might over time regain some of his lost credibility... but this ain't the way.
Mr Bullard - How do I know that I am not misreading your latest comment?
Im calling today a short term top..... we may pass it on the santa rally, but I can see the market crashing back to S&P2000 .......
Yea right. Even they are now so phreaking embarrassed by what they've wrought that they are horrified by it.
"Bullard Says Markets Misread Him In October Bond-Buying Dustup."
You've been Grubered.
The market did just what Bullard wanted it to do- JUMP.
read an article that the fed. is still testing qe x^, ww111.
the us wanting to send humanitarian aide to the ukraine, thats how far they'll go to cover thier absolute financial, and econonic failure.
nothing gets money churning faster, and longer than a world war.
hitlers game plan.
James Bullard = zero credibility.
Yup.
Noted.
. . . but there's been a bunch of snivelling jerk-offs on this board since inception, stated Bullshitard.
Even with the noose tightening around his neck this whiney papa's little helper cunt would have an incredulous look of disbelief on his shit face.
Fuck arguing the toss regarding which of these bastards are in charge of the life sentences they dish out.