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Fed's Evans "Catastrophe" Comment Sparks US, Japan Stock Surge; China Purge
Chicago Fed's Charlie Evans appears to have decided to flex his voting member status, Bullard-ness this evening. Speaking during a forum in Chicago, after The FOMC Minutes showed data-dependence was the thing... Evans exclaimed "raising rates would be a catastrophe," and that "housing hasn't shown the strength he'd like to see," prompting S&P futures - with the help of USDJPY - to suddenly surge 16 points (and drag WTI Crude futures above $49.50 for fun). Nikkei futures enjoyed the ride ramping 200 points as USDJPY hit 119.70. But, much to the chagrin of the millions of freshly minted retail investors there, Chinese stocks plunged 2.2%... "we love the smell of stability in the Asian morning"
Evans explains...
- *FED'S EVANS SAYS RAISING RATES WOULD BE A CATASTROPHE
- *EVANS SAYS OIL IMPACT ON INFLATION TO REQUIRE CLOSE MONITORING
- *EVANS SAYS WAGE GROWTH CONSISTENT WITH GOAL WOULD BE 3.5%-4%
- *EVANS: DROP IN LONG-TERM INTEREST RATES `EXTRAORDINARY' PAST YR
- *EVANS SAYS HOUSING HASN'T SHOWN STRENGTH HE'D LIKE TO SEE
And thus the fun-durr-mentals kick in...
and in Japan...
But not so much in China...
So to summarize - a Dovish Dove said Dovish things that he has said a thousand times before, contradicting a modestly hawkish biased FOMC and markets explode in a fit of illiquid exuberance...? Okeydokey, let's just see what happens when Europe opens
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Jawboning = Firing Blanks... save your breath and Crack a Cold One..
Why are crackpots running the Federal Reserve?
Rundown of mainstream media cowardice in covering today's Islamo-terror attack in Paris:
http://tinyurl.com/kcdmf2z
I wondered when of these FED jackasses were going to say something to prop up this farce.
https://www.youtube.com/watch?v=VI6tBwVjyOY
Look how far the markets have rallied on all the QE stuff. =>http://www.bit.ly/1fMcakI
WOW!
Now yellen and the builderburgers, are gettign ready for their next job.
Dont Mario dragi start QE in EUROPE on the 22nd of JANUARY. That will be the next scam, and US is planning something as you read this. Mark my word. Everyone thinking the market will crash, has been proven wrong SINCE 2009. 2015 will be no different.
Bread and Circus!
*FED'S EVANS SAYS RAISING RATES WOULD BE A CATASTROPHE
Given that they won't be raising rates; I guess we'll never know if it would be a catastrophe or not...
confused ... repeat again Evans, Charlie and he is who again?
that has nothing to do with world war I starting or something has it? these guys can pick anything as a reason and do whatever they have planned to ... charlie evans...please
I wonder if the half-life of this BS will be a matter of days soon (I'd prefer hours), rather than the weeks of the BullTard comments.
do any of you really think the Fed is going to raise rates in 2015?
please.
if you want a "sure thing" investment, buy any fed funds futures contract trading below 99.50. there will not be a politically convenient "right time" to raise rates in the next 12-24 months. the global economy is obviously on the brink of contraction. rightly or wrongly, what mainstream member of the Fed is going to raise rates here? none.
Agree. Fed policy thus far= talk about raising rates, don't do shit.
... catastrophe ... re-arrange the letters and you'd get "attach ropes" ...
Shut. The. Fuck. Up. Asshole.
I think it's quite funny that he's admitted that the Fed is crapping itself and that it can't raise interest rates even if it says it will.
DavidC
Catastrophe? Pray tell why? The US is at 5% growth and the future's brighter than ever!
Sarc. Off
Someone get this man the FED playbook, he's off script.
Fed's play book:
1. Ctl P
2. Open cake hole
3. Repeat 1 and 2
He's not off script. He plays the part of the dove in this shitshow kabuki theatre. If the board were an echo chamber people might get suspicious....and by suspicious I mean most people don't have a fucking clue what The Fed is and soon TPTB won't even pretend to hide their crimes.
Care for more stuffed crust pizza and football highlights?
Bacon stuffed?
trying to talk down the dollar is an expected fed ploy
did anyone on ZH really think they were going to raise rates? seriously?
No.
DavidC
Ralph
One of these days the are going to lose control of holding Gold down.
It will happen, but not until the stock markets lose faith in the Fed. We also have an employment report coming up, and those have not been friendly to gold lately.
Gold did just fine as stocks rose from 2009 to 2012.
A third of 22-to-26 year-olds with a BA either don’t have a job or are working at one that doesn’t require a degree http://on.wsj.com/1wsgIWl
Degrees are so 2003.
Degrees are now a government tool to manage unemployment numbers. Keeping someone at university keeps eliminates them from potentially increasing jobless numbers. This is why entrance standards have slowly eroded over time.
Show me the job that truly REQUIRES a degree. I've got one, but I could have done every job I've ever held without one. Including my current one as an investment advisor, which requires you do nothing more than pass one test (which most ZHers could probably pass with a week or two of hard studying of the material).
Being good at that job is a different story, but you can't learn how to do that by taking classes or reading books anyway.
You need a damned license to be a hair dresser these days, for God's sake! College degrees are nothing more than VASTLY more expensive versions of that. They're a license tax. Nothing more.
A Reuben and a cookie sounds tasty right now.
I got a degree in freaking Classical Languages. Then I worked as a Construction Estimator, Programmer, Network Administrator and so on. Never taught Latin to anybody.
That was back in the old days when you could get jobs on merit and smarts. Never hired by an HR person in my life.
But it's not like that anymore. Far from it. Everything is corporatized. Everything is a power block with gateways controlled by administrators who've never done anything practical their entire lives. College is now little more than a massive scheme to extract maximum funds from gullible kids and their parents in order to enrich the gate keepers and their cronies.
H fucking R unproductive swill
Probably an engineer or a trauma surgeon, veterinarians, dentists, professors. Beyond that most degrees are complete bullshit. Our society uses them for ego boosting, pretend intelligence and justification for large salaries-
Used to know an asshole that demanded that everyone call him "Doctor" Lewis. First class prick and egomaniac. Wrote a thesis about underprivileged eskimo kids and for that demanded that everyone that worked for the school district call him "doctor." I giggle when I think about all those ass kissers giving him his licks to avoid the consequences.
I think the stock market action moving forward looks like an identical brother of 1964-1982.
Russell 2000 daily chart already looks like it's started since early last year.
That is all.
same as it ever was...
https://www.youtube.com/watch?v=98AJUj-qxHI
Time to dust off the old surfboard tomorrow and ride this wave!
Dow +10000 tomorrow.
the Fed's 5% marker. whenever stocks fall that much, it's guaranteed Fed speakers will jawbone it higher. what do they call it again? btfd? they only missed it in Oct cuz of the 'blackout' period surrounding the Fed meeting.
BTFD is alive and well... til the day it doesn't work. then you better have a whole lot of phyzz, cuz the financialpocalyse will be upon you.
it's hard not to reiterate, but stocks aren't going to fall until the real economy has been completely obliterated.
In a just world Evans would be abducted by aliens and returned to the wrong planet. I, a senior who has been screwed out of interest income for years, was going to write: "Drop dead you [bleep] bastard but that would not be polite."
Drop dead Evans, you cocksucker. Got your back Turtle.
Yes, because nothing says strength in a market than a Fed cake hole exclaiming catastrophe...
I wondered when of these FED jackasses were going to say something to prop up this farce.
Yup, suh-prise, suh-prise!
Time to play who has the finest jawbone!
I can't believe Evans even mentioned wage growth. What wage growth?
Today's Santelli Vs Liesman - "Rates are too low":
http://video.cnbc.com/gallery/?video=3000344658
Damn it, he farted and everyone thinks it smells like roses.
The anode is inserted into the rectum and the cathode is firmly attached to the testicles, then the questions will be asked.....
It was just a matter of time before one of these maggots opened their trap to try and "Bullard" the market higher. What a crock of shite this whole process has become.
I agree that his comments were probably intended to goose the indicies, but that doesn't mean what he is saying isn't true. I think the prevailing sentiment here on ZH is that the raising rates is highly, highly improbable because the maths show higher rates would, in fact, have a catastrophic effect on the ponzi.
"I think the prevailing sentiment here on ZH is that the raising rates is highly, highly improbable because the maths show higher rates would, in fact, have a catastrophic effect on the ponzi."
I have long been skeptical that the Fed would actually raise rates anytime in the near future. I figured the publicly-floated target date for raising rates would approach and some reason for not raising rates would be floated... just like this mouthpiece apparently just did.
ditto.
the fear of raising rates was nothing more than a weak attempt to curb speculation.
if nothing else, the Fed will restart QE by this summer, if not sooner.
Bonds and phyz look like mighty good bets.
ZIRP4EVA
Hey Charlie,
Remember in 2011 when you said the fed should remove accomodations if inflation hit 3% OR the unemployment rate fell below 7%??
http://video.cnbc.com/gallery/?video=3000042403
The reason inflation is low is BECAUSE of QE and low interest rates.
When things finally fall apart we will most likely see our first depression that has massive inflationary pockets (gold/food/bullets).
Creating instability, bubbles and inequality at a faster and faster pace. Nice work FED.
Time for a G&T.
Helicopter money seems the solution, doesn't it? Money from the bottom, filling people's fists, would surely create inflation. Because worker's pay isn't getting them enough to spend and hit their "2% target" which is nothing more than controlled destruction of what represents man's labor hours. That they even said this is funny, that they propose it for real (as in Europe) is a laugh riot. It would create inflation, yes. But is that really the goal? These guys are so absolutely out of touch it's amazing. They have totally untied markets from reality and what markets are supposed to represent. New words are needed for what we are seeing here, because there are no existing words that really get into your guts or yell loud enough from paper for what these idiots are doing.
Good lord! When will these morons at the fed, just STFU. Every sticksave just primes the bomb for a bigger explosion.
Well he's totally correct. Any rise in rates will be a total and absolute catastrophe - not in the cards.....
never be in the cards...
In the meantime, the banks money to you on your credit cards is worth 18% to them, with a 29% default rate. What was that again they are willing to pay you for your deposits?
So what he is saying is the economy still sucks and is stuck in a rut. All the QE's have been for naught.
USDJPY, jump into the water, its luke warm. I'll show you my perky tits if you get in.
The Fed's future is not bright... you won't need shades.
http://www.globaldeflationnews.com/the-creature-from-jekyll-island-the-e...
The blue-haired, red diaper wearing, alzheimer candidates have been jawboning policy since 08.
Clearly, dementia set in (along with incontinence) and they are now incapable of making a rational decision other than plagurizing the financial excrement the snaggle toothed brit, John Maynard Keynes shat out of his ass after a meal of bangers and mash. Has anything ever came out of Britian of value? Hell even the weenie armed useless french brought forth frites. Which go great with ketchup - except heinz. Heinz for some reason has a moth ball, silicon, traitor taste to it.
There isn't any question, the white haired ewok and this charles evans caracature suck the dick of fabian socialists. All this dick sucking started at the whore house known as Cambridge U with G. Dickinson and Leonard Woolf. Here they bent the ill-bred keynes over a printer and butt raped the bloke until his gold fillings fell out.
The only question is which 1% deviant rascal called from Epstein's Little St. James and told Charlie Evans to voice his concern. Keep in mind this is the same FOMC fuck stick that advocated the "Evans Rule". You know the one that stated the FOMC gang of financial terrorists will hold rates near zero until 1. employment falls below 6.5 and 2. inflation rises above 2.5.
Apparently, his dementia kicked in and by March 14 he forgot the very rules the mongrel made up in the first place, just 1.5 years prior.
Followers of keynes and the twisted brit himself held depravity of any sort was far superior to any form of normalcy and morality. Anything that denounced normal society and customs was promoted including child molestation.
So put your hands together America and applaud the fiddler as he performs Nero's 5th in A minor. And don't forget to bring the weenies and marshmallows.
He's right, *BUT*.....not raising rates will ALSO be a "catastrophe." The whole system is going to blow up no matter WHAT they say or do.
agreed--it seems as though the level of absurtity has pushed beyond most historic measures
So beggar thy neighbor is the answer?
What part of the bankruptcy of Detroit did this dude not get?
I don't think the problem in Chicago is consumption being too low. At least fuel prices have finally collapsed "because Keysianism works so well."
I mean dude...sound money is job creation. Just ask the previous administration.
there is a bump on this wheel..
you can feel it
2% down is hardly a plunge after a 15% rally in 3 weeks and 50% in 6 months. Stop using the word 'plunge' every time there is small downward move. You must be using a tiny measuring stick if every small move looks like a plunge to you.
ROFLMAO!
Yeah, because doing anything remotely in line with the stated goals of the FED would be a "catastrophe". Fuckers.
Europe on total drugs
From the lows :-
Dax futures up 200
Cac up 110
ibex up 270 !!!
ftsemib up 480
ftse up 125
smi up 200
Dow up 190
S&P up 21
Naz up 48
Russ up 14
Is this insanity or what??????????
Well, I guess it's that or burn everything to the ground and start over. But I don't think death from old age will come quickly enough to escape what is surely coming. But insanity it is! (It's official!)
The real catastrophe happened 101 years ago, establishing the Fed, which began the destruction of gold backed currency and the beginning of debt-based currency, triggering unconstrained spending and debt, and - this is probably not an exaggeration - planting the seeds for the upcoming implosion of the Western economic system and ruin of every common man's wealth.
Expletives are in order for such insipid statements that come from members of the Fed - enablers of the cabal as they are.
The political party responsible? CONGRESS! After all, they represent America. Huh?
*EVANS SAYS HOUSING HASN'T SHOWN STRENGTH HE'D LIKE TO SEE
I'm confused. What part of the fed's "dual mandate" of stable prices and full employment does this pertain to...??
You have already created a catastrophe, Mr. Evans; ask any retiree trying to earn safe income. It is only a matter of what form the catastrophe will next assume, and who it will impact. Do you have a favorite class of people you are tyring to protect?