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Even Ed Yardeni Admits "This Is Not Investing... The Markets Are All Rigged"
"This is not investing," exclaims Ed Yardeni in this brief clip, "it is all about central bankers... these markets are all rigged." That is not a criticism he notes, "I just say that factually... I love these central bankers, they've been very good to the stock market." The clip is then followed by a defense of this pumping by central banks, because "we are a 401(k) society." Which apparently ignores the whole "massive inequality gap" issue that is staring America right in the eyes... But for now stocks are up so "shut up and enjoy it" as Larry Kudlow said yesterday.
3 minutes of confused fact-facing and justification...
Which is ironic given CBNC's front page has duelling headlines proclaiming the markets are rigged and that Flash Boy's claim that the markets are rigged has not been proven...
Baffle 'em with bullshit continues.
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And here is Yardeni explaining this goldilocks scnario...
The Federal Reserve’s implicit patience in deciding when to begin lifting interest rates is raising the odds for the Standard & Poor’s 500 Index to hit 2,600 this year, according to Yardeni Research Inc.
There is now a 30 percent chance that the S&P 500 will reach that level in an “irrational exuberance scenario,” up from 20 percent, according to Edward Yardeni, the president and founder of the research firm. His “rational exuberance scenario” remains at 60 percent with a target of 2,150.
“If the fundamentals do improve, all the better,” Yardeni wrote in a note to clients today. “If not, then repeat: They can count on the central banks to provide yet another round of ultra-easy money, which will send stock prices still higher. We will probably have occasion to repeat our appreciation again and again before the end of the current bull market.”
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It's not "Greed Is Good" - in the new normal is "Rigged Is Good"
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Yeah, Government!
Shut up and enjoy it!
butt al izz gots wuz a fone & stamps you bas turds
"shut up and enjoy it"
"suck it up and cope"
any others?
What a sick motherfucker.
Can't make this shit up
nailguns market will be the next bubble
Lie back and enjoy it.
"Lean In", now bend over.
So we've gone from "liftoff" to "one and done"?
Wait, what..it's all rigged???!!!
OH MY GOD!!!!!!!!!
In related new, here's your latest Yellen balance sheet:
News Headline Summary
US Fed balance sheet liabilities increased to USD 4.458trl in the latest week from USD 4.451trl
http://headlines.ransquawk.com/headlines/us-fed-balance-sheet-liabilitie...
Yaaaay! 5 trillion is not far away!
Party likes it's 1999!
http://www.wsj.com/articles/SB922151944732062773
The Fed is not the government. The Fed is the money trust which are private international banks, the core of capitalism.
Core of counterfeit-ism.
It's rigged to go up until it's rigged to collapse.
Always rigged, all the time.
May as well put it all on red in Monte Carlo.
Actually they're not even smart enough to do that. It's just a bunch of old school bureaucrats trying to preserve the status quo.
So ~ We're down to all the TOPTICKING hedgies vs. the Dutch Boy Haircut Toucan Samantha nosed Matzo Ball preppin Grandma...
<--- Hey Las Vegas Dave, If you want to dialogue, you could at least have the courage to reply to my comment on the other thread instead of blind junking me here
I guess this is about where you need to pop a batch of that gefilte fish flavored popcorn & watch it all happen...
Strange game... The only way to win is NOT TO PLAY
You can't lose if you don't play.
I keep trying to tell people that... But it appears that you can get kicked off of blogs for suggesting such a thing if your message doesn't align properly...
Then again... You NEVER get kicked off for being a sychophant dipshit...
Pays to know a lot of straight A students I guess.
True...until they raise your taxes to pay for others' bets that went bust
I don't think they can raise my taxes ---, I create them.
I don't think they can raise my taxes ---, I create them.
"shut up and enjoy it" -- sounds like something a rapist might say.
head explodes
so Larry says, Listen millions of people got mucked but I got mine so STFU
OMG it is Rigged, no way, how can it be!
Yep, its all completely rigged and before this grotesque circus comes crashing down it will morph into something no one has ever seen before.
Banksters Inc. is driving us into to no mans land! No way to stop it now!
Is sociopath too light a word to describe these people?
Sociopath only descibes a mental condition which is common in many different fields.
"The markets are all rigged..."
Yet people still play the game. There's a word for that.............
Yes, we're a 401k society. Until the vast majority reach withdrawl age.
Which means it was all empty promises in the first place and in fact we're just a bunch of broke bitchez.
For all you children of baby boomers. Do something radical, maybe even immoral in the eyes of your parents. Buy, and payoff, a house ASAP. Your parents will thank you later, when they come begging for a roof over their heads.
It's a 401k society, so fraud up the statements and everybody retires rich. I think I get it now. Honest to goodness, sometimes I wish I'd paid better attention in Econ102. I might understand this stuff better.
Probably better that you didnt. Most Profs are devout Keynesians and Friedmanites. Even in bizarroland they would find some way to say if we had just this much more stimulus it would have worked.
All those 401K's and defined contribution plans have 1.5% leeches attached to them, along with 10% early withdrawal straight to .gov when you need it to survive.
Not to mention the "retirement" savings of generations is simply grease for the wheels of the Wall Street locomotive to perdition.
Of course they are blowing bubbles, they have a steady stream of money from the sheeple to skim, then rake with a bubble pop, then skim, then rake - lather, rinse, repeat.
In theory Kudlow is correct. We have $4 trillion in excess reserves sitting in the Fed. If Mr. Yellen was smart, He'd lower rates on excess reserves over a certain balance, and force banks to lend.
Banks don't lend on deposits. Banks make loans that create reserves. If banks have deposits, look at the reserve vs lending ratio.
The IOER is 0.25%, how much lower can they cut it in order to force banks to lend? The banks are holding the excess reserves because A) the credit of most marginal borrowers is still damaged, B) American consumers have reached peak debt anyway, and C) the banks want the peace of mind in the event of another liquidity crisis.
Eventually, though, banks will lend that money when all other options to generate profit are exhausted (see declining fixed income trading revenue across Wall Street). M&A advisory fees are buffeting profits in the interim, but those usually peak with the market tops so they are highly cyclical and inconsistent.
"Eventually, though, banks will lend that money when all other options to generate profit are exhausted.."
True. And, if the past is any guide, that lending will accelerate at the exact wrong time.
That's a very good question. Thanks for your input. I think some sort of "multi tiered" lending mechanism is needed.
The Fed has a tremendous amount of of excess reserves, but lack of lending from banks just expands the balance sheet.
The fed. IMHO needs to unwind the balance sheet, "retire debt" with equal lending, in a time segmented scheme.
That way the balance sheet unwinds and rates can rise naturally. Hypothetically?
Banks won't lend until they're forced to! Period
Long ,credit worthy "Credit Unions"
Banks lend to each other. If you can't get decent interbank rates @ 10-25 basis points, the system is plugged up<
http://en.wikipedia.org/wiki/Excess_reserves#In_the_United_States_.28200...
'On March 20, 2013, excess reserves stood at $1.76 trillion.[19]As the economy began to show signs of recovery in 2013, the Fed began to worry about the public relations problem that paying dozens of billions of dollars in interest on excess reserves (IOER) would cause when interest rates rise. St. Louis Fed president James B. Bullard said, "paying them something of the order of $50 billion [is] more than the entire profits of the largest banks." Bankers quoted in the Financial Times said the Fed could increase IOER rates more slowly than benchmark Fed funds rates, and reserves should be shifted out of the Fed and lent out by banks as the economy improves. Foreign banks have also steeply increased their excess reserves at the Fed which the Financial Times said could aggravate the Fed’s PR problem.[20]
By October 2013 the excess reserves at the Federal Reserve had exceeded $2.3 trillion.[19]'
Yen Cross, excess reserves sit at member banks, not the fed.
And these member banks are currently paid .25% interest by the Fed to sit on those excess reserves.
The Fed has a nearly 4.6 trillion USD balance sheet as of today, and that's entirely different than excess reserves.
Excess reserves sit at the Fed. the Fed. reimburses the Primary dealers for not taking inventory off the books.
The Fed. has "first right of refusal" when it comes to lending, or dispersian of debt.
Banks Don't Lend Out Reserves
In the banking system excess reserves are expansionary. Loans expand balance sheets. Loans expand excess resreve ratios, until the Fed. retires excess reserve debt. IE; retires bonds, with out re-issue. Pulls money out of circulation ect....
Dude, I'm not trying to be a dick, just saying that I think that you're thinking of "reserve funds,"not excess reserves:
http://study.com/academy/lesson/fractional-reserve-system-required-and-e...
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=excess+reserves
http://www.frbsf.org/education/publications/doctor-econ/2013/march/feder...
TO HAVE THE CENTRALS BANKS "INSANE" RIGGING BE REFLECTED AS THE "IT IS WHAT IT IS " ORDINARY
******************THIS MUST BE THE TOP TICK OF THIS MARKET!!!*******************
indeed, july 2007 ish. but after the next surprise ride down, Im expecting a further big ride up.
yardeni will lose
I'd never have guessed its wasn't a casino at this point
I'm going all in!!
don't do it, there's still time to pull out!
How about "just the tip"?
i thought anyone who questions this fabulous "recovery" is racist?
'Bend over and enjoy it, KYJ-STYLE'...
“It’s a racket. Those stock market guys are crooked" - Al Capone
They are just trying to compete with ZH.
The Fed is not the culprit. It is the corporate CFOs who have turned their treasuries into daytrading floors. Best trade right now is go long anything that looks like a solid short......it WILL BE PUMPED! Believe it.
Doesn't sound like Yardeni is a member of the tribe and Israel butt-kisser like Larry Silverstein Kudlow, maybe that's why they won't give him a page at wikipedia?
Steve Hughes: "Shut up and eat your shit!" https://youtu.be/ohogzxiqqkM?t=21m46s
Hey, Ed, you just come out of a coma?
Do yourself a favor, go back to sleep... We'll wake you when were ready to go after the CRIMINALS!
Kudlow ha! that cole snorting asshole doesnt know his ass form his elbow.
sorry coke not cole. clearly i cant spell either.