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Even Ed Yardeni Admits "This Is Not Investing... The Markets Are All Rigged"

Tyler Durden's picture




 

"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.

*  *  *

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.”

*  *  *

It's not "Greed Is Good" - in the new normal is "Rigged Is Good"

 

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Thu, 03/19/2015 - 16:33 | 5907439 disabledvet
disabledvet's picture

Yeah, Government!

 

Shut up and enjoy it!

Thu, 03/19/2015 - 16:43 | 5907472 matinee55
matinee55's picture

butt al izz gots wuz a fone & stamps you bas turds

Thu, 03/19/2015 - 16:58 | 5907520 bania
bania's picture

"shut up and enjoy it"

"suck it up and cope"

any others?

Thu, 03/19/2015 - 17:03 | 5907535 mvsjcl
mvsjcl's picture

What a sick motherfucker.

Thu, 03/19/2015 - 17:23 | 5907602 max2205
max2205's picture

Can't  make this shit up

Thu, 03/19/2015 - 19:20 | 5907993 Dostojevskij
Dostojevskij's picture

nailguns market will be the next bubble

Thu, 03/19/2015 - 17:42 | 5907652 Downtoolong
Downtoolong's picture

Lie back and enjoy it.

"Lean In", now bend over.

Thu, 03/19/2015 - 16:58 | 5907517 ml8ml8
ml8ml8's picture

So we've gone from "liftoff" to "one and done"?

Thu, 03/19/2015 - 17:24 | 5907527 TruthInSunshine
TruthInSunshine's picture

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!

Thu, 03/19/2015 - 21:16 | 5908394 daveO
Thu, 03/19/2015 - 17:16 | 5907583 Againstthelie
Againstthelie's picture

The Fed is not the government. The Fed is the money trust which are private international banks, the core of capitalism.

Thu, 03/19/2015 - 21:17 | 5908397 daveO
daveO's picture

Core of counterfeit-ism.

Thu, 03/19/2015 - 16:36 | 5907450 Chuck Knoblauch
Chuck Knoblauch's picture

It's rigged to go up until it's rigged to collapse.

Always rigged, all the time.

Thu, 03/19/2015 - 17:21 | 5907508 DetectiveStern
DetectiveStern's picture

May as well put it all on red in Monte Carlo.

Thu, 03/19/2015 - 16:59 | 5907523 Harbanger
Harbanger's picture

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.

Thu, 03/19/2015 - 16:43 | 5907453 Thirst Mutilator
Thirst Mutilator's picture

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

Thu, 03/19/2015 - 17:06 | 5907547 negative rates
negative rates's picture

You can't lose if you don't play.

Thu, 03/19/2015 - 17:25 | 5907608 Thirst Mutilator
Thirst Mutilator's picture

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...

Thu, 03/19/2015 - 17:54 | 5907680 negative rates
negative rates's picture

Pays to know a lot of straight A students I guess.

Thu, 03/19/2015 - 17:59 | 5907692 pebblewriter
pebblewriter's picture

True...until they raise your taxes to pay for others' bets that went bust

Thu, 03/19/2015 - 18:17 | 5907734 negative rates
negative rates's picture

I don't think they can raise my taxes ---, I create them.

Thu, 03/19/2015 - 18:17 | 5907735 negative rates
negative rates's picture

I don't think they can raise my taxes ---, I create them.

Thu, 03/19/2015 - 16:40 | 5907459 deflator
deflator's picture

"shut up and enjoy it"  -- sounds like something a rapist might say.

Thu, 03/19/2015 - 16:40 | 5907464 Callz d Ballz
Callz d Ballz's picture

head explodes

Thu, 03/19/2015 - 16:41 | 5907465 matinee55
matinee55's picture

so Larry says, Listen millions of people got mucked but I got mine so STFU

Thu, 03/19/2015 - 17:44 | 5907468 moratar
moratar's picture

OMG it is Rigged, no way, how can it be!

Thu, 03/19/2015 - 16:47 | 5907483 wmbz
wmbz's picture

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!

Thu, 03/19/2015 - 16:48 | 5907486 tokerhead
tokerhead's picture

Is sociopath too light a word to describe these people?

Thu, 03/19/2015 - 17:11 | 5907564 Harbanger
Harbanger's picture

Sociopath only descibes a mental condition which is common in many different fields.

Thu, 03/19/2015 - 16:48 | 5907487 Duc888
Duc888's picture

 

 

 

"The markets are all rigged..."

 

Yet people still play the game.  There's a word for that.............

Thu, 03/19/2015 - 16:48 | 5907489 rsnoble
rsnoble's picture

Yes, we're a 401k society.  Until the vast majority reach withdrawl age.

Thu, 03/19/2015 - 17:18 | 5907585 Harbanger
Harbanger's picture

Which means it was all empty promises in the first place and in fact we're just a bunch of broke bitchez.

Thu, 03/19/2015 - 21:21 | 5908415 daveO
daveO's picture

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. 

Thu, 03/19/2015 - 16:50 | 5907498 Kilgore Trout
Kilgore Trout's picture

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.

Thu, 03/19/2015 - 16:59 | 5907524 J Pancreas
J Pancreas's picture

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.

Thu, 03/19/2015 - 17:14 | 5907577 ebworthen
ebworthen's picture

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.

Thu, 03/19/2015 - 16:55 | 5907509 Yen Cross
Yen Cross's picture

  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.

Thu, 03/19/2015 - 17:13 | 5907569 BlueHen1990
BlueHen1990's picture

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.

Thu, 03/19/2015 - 18:07 | 5907708 pebblewriter
pebblewriter's picture

"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.

Thu, 03/19/2015 - 18:18 | 5907736 Yen Cross
Yen Cross's picture

  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?

Thu, 03/19/2015 - 19:34 | 5908018 Yen Cross
Yen Cross's picture

 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<

Thu, 03/19/2015 - 21:40 | 5908453 daveO
daveO's picture

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]'

 

Thu, 03/19/2015 - 18:23 | 5907751 TruthInSunshine
TruthInSunshine's picture

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.

Thu, 03/19/2015 - 19:39 | 5907779 Yen Cross
Yen Cross's picture

 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....

Thu, 03/19/2015 - 16:56 | 5907512 doggis
doggis's picture

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!!!*******************

Thu, 03/19/2015 - 18:44 | 5907777 weburke
weburke's picture

indeed, july 2007 ish. but after the next surprise ride down, Im expecting a further big ride up.

Thu, 03/19/2015 - 16:57 | 5907516 Bell's 2 hearted
Bell&#039;s 2 hearted's picture

yardeni will lose

Thu, 03/19/2015 - 17:00 | 5907525 Flatchestynerdette
Flatchestynerdette's picture

I'd never have guessed its wasn't a casino at this point

Thu, 03/19/2015 - 17:03 | 5907538 Vullsain
Vullsain's picture

I'm going all in!!

Thu, 03/19/2015 - 17:06 | 5907548 ted41776
ted41776's picture

don't do it, there's still time to pull out!

Thu, 03/19/2015 - 17:45 | 5907658 NoDebt
NoDebt's picture

How about "just the tip"?

Thu, 03/19/2015 - 17:06 | 5907546 ted41776
ted41776's picture

i thought anyone who questions this fabulous "recovery" is racist?

Thu, 03/19/2015 - 17:14 | 5907573 FPearl602
FPearl602's picture

'Bend over and enjoy it, KYJ-STYLE'...

Thu, 03/19/2015 - 17:16 | 5907581 PhiBetaZappa
PhiBetaZappa's picture

“It’s a racket. Those stock market guys are crooked" - Al Capone

Thu, 03/19/2015 - 17:22 | 5907600 1stepcloser
1stepcloser's picture

They are just trying to compete with ZH.  

Thu, 03/19/2015 - 17:24 | 5907604 tedstr
tedstr's picture

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.

Thu, 03/19/2015 - 17:38 | 5907639 Jonesy
Jonesy's picture

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?

Thu, 03/19/2015 - 18:30 | 5907771 Youri Carma
Youri Carma's picture

Steve Hughes: "Shut up and eat your shit!" https://youtu.be/ohogzxiqqkM?t=21m46s

Thu, 03/19/2015 - 18:54 | 5907870 luna_man
luna_man's picture

 

 

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! 

Thu, 03/19/2015 - 19:46 | 5908082 Dien Bien Poo
Dien Bien Poo's picture

Kudlow ha! that cole snorting asshole doesnt know his ass form his elbow.

Thu, 03/19/2015 - 19:47 | 5908084 Dien Bien Poo
Dien Bien Poo's picture

sorry coke not cole. clearly i cant spell either.

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