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"Market Is Hyper Overpriced" Warns Retiring Fed President; "Significiant Correction" Coming

Tyler Durden's picture




 

Fresh from a well-publicized dollar dispute with Goldman’s Gary Cohn, recently retired Dallas Fed chief Richard Fisher made an appearance on CNBC Friday and spoke with Rick Santelli. There were quite a number of notable exchanges including the following zingers..

Santelli: “If you had to rate the US economy 0-10 where would you peg it?”

 

Fisher: “We’re #1., we’re a 10. We’re the epicenter of growth and in the sweet spot.”

 

Santelli: “Do you think any part of the stock market being high has anything to do with the committee you just left and if you didn’t grade the economy on a curve would you still give it a 10?” 

 

Fisher: “Well, what worries me is how totally lazy investors have gotten, totally dependent on the Federal Reserve and I find this to be a precarious situation.”

 

Fisher: “Are we vulnerable in my personal opinion to a significant equity market correction? I believe we are.” 

Then Santelli pulls out a Pavlov reference suggesting that the Fed has in fact conditioned retail investors to be lazy prompting Fisher to point out the irony in the fact that global financial markets are depending on a “diminutive woman” (Yellen) to play Atlas. “What worries me is that the people that watch this show are completely dependent on the Fed — look at the volatility. I could see a correction taking place of substantial magnitude.” 

Of course this is all the market's fault and not the Fed's for ballooning their balance sheet into the trillions and effectively daring investors not to chase a central bank-underwritten rally in risk assets and so ultimately, Fisher thinks the "people who watch" CNBC need to stop being so complacent.

View the entire clip here: 

 

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Fri, 03/20/2015 - 13:40 | 5910423 Arrowflinger
Arrowflinger's picture

In the old days a "significant correction" could be made with White Out. How does that work with electronic "money?"

Fri, 03/20/2015 - 13:41 | 5910433 Pinto Currency
Pinto Currency's picture

 

 

A little time in a reeducation camp after the crash and everyone will be fine:

http://www.infowars.com/hillary-we-need-fun-camps-for-adults/

Fri, 03/20/2015 - 13:48 | 5910465 agstacks
agstacks's picture

Less Government, More Fun

Fri, 03/20/2015 - 13:49 | 5910469 Pinto Currency
Pinto Currency's picture

 

 

That'll get you 10 years at camp.

Fri, 03/20/2015 - 14:00 | 5910505 kaiserhoff
kaiserhoff's picture

Yes, but all the best people will be there;)

Fri, 03/20/2015 - 14:05 | 5910522 max2205
max2205's picture

My Gaydar just went off 

Fri, 03/20/2015 - 14:08 | 5910541 TruthInSunshine
TruthInSunshine's picture

He rates the economy a "10" yet Mr. Yellen can't raise rates even one pip.

Interesting.

Fri, 03/20/2015 - 14:30 | 5910574 daveO
daveO's picture

Since he likes heels, I'm surprised he didn't start singing this;

http://www.youtube.com/watch?v=UJOjTNuuEVw

That propaganda piece came out the same year FDR stole gold.

Fri, 03/20/2015 - 15:53 | 5910977 smlbizman
smlbizman's picture

if you listen carefully to this dude.....you can already hear the denial he and his boys have for what is about to happen.....it's the ignorant complacent retail investors fault for not listening to the e-trade baby...not because,... well you know the rest of that part....so i would say he said it is coming and it is going to be "bigger, better and uncut". but he will sleep well knowing he had not a hand in this most memorable round of devistation....

Fri, 03/20/2015 - 17:34 | 5911331 Bay of Pigs
Bay of Pigs's picture

Agreed. Fisher is a liar, hypocrite and an asshole.

The FED and PPT are the ones pumping the stock market. Lazy retail investors? LOL....yeah, okay Dick. Thanks for the heads up.

Sat, 03/21/2015 - 00:14 | 5912246 thestarl
thestarl's picture

Exactly what my simple mind thought to TiS

Fri, 03/20/2015 - 14:28 | 5910602 kaiserhoff
kaiserhoff's picture

.

Fri, 03/20/2015 - 14:01 | 5910509 highandwired
highandwired's picture

Do I get a Obamaphone there?

Fri, 03/20/2015 - 13:59 | 5910498 kaiserhoff
kaiserhoff's picture

Government is evil, even on their good days...

   as if they ever had a good day.

Fri, 03/20/2015 - 14:14 | 5910562 Spitzer
Spitzer's picture

i could not listen to that phony piece of garbage.

Fri, 03/20/2015 - 13:56 | 5910490 KnuckleDragger-X
KnuckleDragger-X's picture

Those are...fun...camps, never mind the razor wire and machine gun towers.....

Fri, 03/20/2015 - 13:41 | 5910437 bwh1214
bwh1214's picture

Great overview of how we got into this mess, starts slow but a good read:

http://debtcrash.report/entry/history-and-introduction

Good intro if your trying to educate someone who is new to our flawed monetary system.

Fri, 03/20/2015 - 16:24 | 5911103 Nobody For President
Nobody For President's picture

So when the fuck is Mr. Yellen going to shrug?

Fri, 03/20/2015 - 13:40 | 5910430 Beam Me Up Scotty
Beam Me Up Scotty's picture

WHOOOP WHOOOP!!  PULL UP!!  WHOOOP WHOOOP!!  PULL UP!!

Fri, 03/20/2015 - 13:40 | 5910432 Ham-bone
Ham-bone's picture

What a joke - Bond market yields are not going up, stocks are not going down...and the Fed knows why.

http://econimica.blogspot.com/

 

Fri, 03/20/2015 - 13:46 | 5910450 Beam Me Up Scotty
Beam Me Up Scotty's picture

IMO, I agree.  When you can't audit the Fed, they can make any number up they want for any kind of asset---they have the ability to create unlimited dollars--both printed fiat, and digital.  They just won't tell us about the next QE, they will just do it behind the scenes (or worse they will tell us they are reducing QE but actually raising it---how does anyone really know??).  There will just be shortages of just about everything, since no physical asset of any kind will be worth any amount of paper.  The stawk market and every single stawk could go to infinity with a few simple key strokes.

Fri, 03/20/2015 - 13:50 | 5910472 Ham-bone
Ham-bone's picture

Yup, the Fed driven imbalances are so great that the escalation of valuations now fall under national security status...absent the Fed's ongoing fraud, the market would implode and an entirely diffent value to the dollar would be established.

 

Fri, 03/20/2015 - 14:16 | 5910576 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Just getting rock star access to audit their computers that do the modeling for their 'data-dependent' approach to trading the markets would be enough to break their monopoly on the markets.

Fri, 03/20/2015 - 13:40 | 5910434 10mm
10mm's picture

Another RETIRED one coming clean.

Fri, 03/20/2015 - 13:45 | 5910451 Jonesy
Jonesy's picture

The appearance of coming clean, but nothing truly close.

Fri, 03/20/2015 - 13:49 | 5910470 Seek_Truth
Seek_Truth's picture

If by "one" you mean: crook, ne'er do well, reprobate, miscreant, cheat, good-for-nothing maggot, thief, dastardly villain, wretch, scalawag, creep, scamp, black sheep, incorrigible lowlife scum, and uncaring of others bad egg, then, I'd have to agree.

Sun, 03/22/2015 - 02:30 | 5914835 Colonel Klink
Colonel Klink's picture

They should all be "retired".

Fri, 03/20/2015 - 13:40 | 5910435 Bokkenrijder
Bokkenrijder's picture

Ah! Good ol' Santeli! Haven't seen him on ZH in a long time!

Fri, 03/20/2015 - 13:41 | 5910438 maskone909
maskone909's picture

damnit fisher, you act as though you and your homies arnt responsible for this.  did you really think you would get a pass for comming out the closet?  first greenspan with the gold talk, now this?  something big this way comes

cue twilight zone theme music

Fri, 03/20/2015 - 13:52 | 5910439 TruthInSunshine
TruthInSunshine's picture

Market should close at way above all time highs today on these comments & ZH's doom-pa-looza of late (even GW - love ya' GW, btw - has an inevitable WWIII coming soon article up today).

I'm not saying it makes any sense - it doesn't - and yes, it's another "stawk" bubble clearly - but watch the Chosen really put points on the board with OPM before shorting it relentlessly and taking all the chips on the entire table (bonds, stocks, anal lube derivatives, etc.).

Watching "venture capital" in Silicone Valley raise "investment funds" lately for hapless app startups & inane other ideas is like watching dumb money being violated like Jody Foster on that pinball machine in "The Accused."

Prison Rules Markets.

I'm off to invent an iPhone/Android app that tells people when someone near them has farted. The app will be free but reap profits from click ads.

Fri, 03/20/2015 - 13:58 | 5910492 maskone909
Fri, 03/20/2015 - 13:42 | 5910442 Roanman
Roanman's picture

What retail investors?

Fri, 03/20/2015 - 13:42 | 5910443 The Bell Rang
The Bell Rang's picture

Stocks are going down, and big. I wouldn't be suprised if it starts today, or Monday.

Fri, 03/20/2015 - 13:50 | 5910475 Rainman
Rainman's picture

nope .... you forgot quarterly bonuses are calculated after close Tuesday. After that, anything goes.

Fri, 03/20/2015 - 13:44 | 5910447 buzzsaw99
buzzsaw99's picture

LIAR

Fri, 03/20/2015 - 13:44 | 5910448 cn13
cn13's picture

I still can't understand how a person with dual citizenship (U.S./Israel) can be in control of the U.S. printing press.

Jews may only make up 3-4% of the U.S. population but I can't think of one major industry that they don't completely control including our government.

Fri, 03/20/2015 - 13:45 | 5910452 besnook
besnook's picture

because usans are the stupidest people on earth.

Fri, 03/20/2015 - 14:01 | 5910508 Winston Churchill
Winston Churchill's picture

No, no, the most expeptionally stupid people on earth.

Fri, 03/20/2015 - 15:27 | 5910873 daveO
daveO's picture

Manipulated.

Fri, 03/20/2015 - 14:03 | 5910511 knukles
knukles's picture

If you don't believe that (about the Jews # of population and the printing presses) why would you believe that Afro-Americans are only 12.5% of the population but in the White House?
It is what it is.
Correlation is not causation.  Unless you're a progressive and then reality and math don't exist

I'll take morons at wine and cheese parties for $1,000, Alex.

Fri, 03/20/2015 - 13:44 | 5910449 besnook
besnook's picture

unlike 2008 everyone is calling the crash this time. is contrary the right call? inflation should zimbabwe the market. a weak dollar would make this quarter look like 1999.

Fri, 03/20/2015 - 13:51 | 5910476 City_Of_Champyinz
City_Of_Champyinz's picture

Time for a 100 Trillion dollar note...

Fri, 03/20/2015 - 14:16 | 5910572 mtl4
mtl4's picture

Correct, bubble will be in bonds not the stock market.......still a ways to go up from here but may have a few bumps along the way too.

Fri, 03/20/2015 - 13:45 | 5910453 wmbz
wmbz's picture

These guys are are like a crime syndicate, they do what they do Monday through Saturday and on Sunday go to church to be forgiven. Start over on Monday.

Fischer was/is part of the racket.

Fri, 03/20/2015 - 14:40 | 5910455 ted41776
ted41776's picture

what an idiot... what "correction"? our money is going to become extremely valuable all of a sudden? the only correction that's coming is the correction in consumer goods, food, and energy prices. the "market" isn't overpriced, the dollar is overvalued

Fri, 03/20/2015 - 13:45 | 5910457 anachronism
anachronism's picture

The market has remained "irrational" for much longer than I was able to remain "solvent". (Thank you Maynard!)

It will remain so during the rest of my life. 

Fri, 03/20/2015 - 14:04 | 5910520 knukles
knukles's picture

Krebbs was such an insightful guy.
                 sigh

Fri, 03/20/2015 - 13:47 | 5910461 agstacks
agstacks's picture

Jack the Ripper penned an Op-Ed this week in Womens Health magazine on the dangers of walking alone at night. 

Fri, 03/20/2015 - 13:53 | 5910483 Elio
Elio's picture

When all the people expects a crash  it means that it isnt going to happen. Buy stocks now otherwise you will be sad. There wont be any crash before 2023. Good hearted Jewish guy wants to help you. Listen it or ignore it is your choice.

Fri, 03/20/2015 - 14:06 | 5910529 Omega_Man
Omega_Man's picture

that could be true from a US perspective, but you don't control Russia and China going on a partial gold standard, and what about the tribe trying to get a race war going?

Fri, 03/20/2015 - 15:30 | 5910888 daveO
daveO's picture

2017. BHO will be out of office, so it can then be pinned on the next white person.

Fri, 03/20/2015 - 14:01 | 5910507 yogibear
yogibear's picture

A nobody.

His opinion doesn't matter to the rest of the doves.

The Fed cannot normalize rates anymore. Their stuck doing QE, no QE with rates at 0.

Fri, 03/20/2015 - 14:02 | 5910512 B2u
B2u's picture

Fuck you Fisher!  So nobody else (Washington D.C.) was taking action.  Where the fuck is it in the FED "mandate" to bailout Obama and Congress?

Fri, 03/20/2015 - 14:03 | 5910516 Jack Burton
Jack Burton's picture

Well, what worries me is how totally lazy investors have gotten, totally dependent on the Federal Reserve

I have one of these in the family. His investments are based on Fed policies, and Fed market manipulation, and the opne guarantee by the Fed of rising equity share prices.

And so far, he has won big betting on the Fed. No matter market fundamentals suck, world wide.

Fri, 03/20/2015 - 14:04 | 5910521 monopoly
monopoly's picture

People still watch CNBC> I had no idea. 

Fri, 03/20/2015 - 14:35 | 5910630 Fun Facts
Fun Facts's picture

"People still watch CNBC"

only the ones you can fool all the time

Fri, 03/20/2015 - 15:48 | 5910531 kaa1016
kaa1016's picture

Every has an opinion, but the last 2 market meltdowns happened when the Fed was in the of a middle tightening cycle. Until that happens, the market will not see a major correction.

Fri, 03/20/2015 - 14:06 | 5910533 Phat Stax
Phat Stax's picture

We see it again - such clarity and assertiveness in retirement.

Fri, 03/20/2015 - 14:08 | 5910539 bluskyes
bluskyes's picture

Who is the "we" that this fucker is referring to? He seems to suffer from some sort of associative identity disorder.

Fri, 03/20/2015 - 14:10 | 5910549 combatsnoopy
combatsnoopy's picture

The sheep mentality is out in full force.  The Nazis and other sociopathic groups have mastered the implementation of "animal" psyche this is.

It's the same song and dance as it was prior to the subprime collapse. 

If you think Americans were dumb?  Mexicans are up there. Add Europeans and even Indians.  Mostly Europeans.  There's an entire world of blood thirsty backstabbing sycophants out there.   Those of us who were oppressed, not by religion but by 'culture' and 'family' which are aided by the government elected by the boomer trash influence.  "Oppressed" means not being allowed to fend for yourself, rewarded by your efforts or even allowed to defend yourself. 

 

Whatever.   

Fri, 03/20/2015 - 14:22 | 5910595 rejected
rejected's picture

Hate to remind you but the previous election of your POTUS was ensured by the millennial generation looking for more freebies...

Fri, 03/20/2015 - 14:14 | 5910553 khakuda
khakuda's picture

HAHAHAHA.  They will not raise rates in any significant manner over the next few years.  They have promised that.  She just told us they won't raise them to normal levels by the time they are done raising them.  That is all you need to know.

Median PEs are already at record levels and they aren't done rising.  Fed want bubble.  Fed get bubble.

Fri, 03/20/2015 - 14:19 | 5910584 rejected
rejected's picture

Nothing will matter until it does. Until then

BTFD

Fri, 03/20/2015 - 14:21 | 5910589 Clowns on Acid
Clowns on Acid's picture

Now that Fisher has retired and reckons that they cannot reneged on his pension, he is going to start frontrunning Greenspan with the real news.

Fri, 03/20/2015 - 14:22 | 5910594 madjakk
madjakk's picture

I have had a certainty that the "market" would crash long before now and it never did, despite some insanely bad events that would've cause most people to abandon the market in a screaming horde....WTF??....I've come to the hard conclusion that whatever forces are driving this "market", whether its the Feds QE, or media manipulation, or some shadowy agreement between large hedge funds, or some other large market manipulation by insider organizations colluding together.....this market cannot "crash".

You can say this market is anything but normal, you can point to abysmal data all day long and yet here it is, over 18,000 again.

Whatever is happening is NOT to be found in the financial media headlines, whatever is behind this rising market is not being exposed and whatever is behind inflating this market will not let it correct.

I'm ready to admit defeat and call it like I see it.....the Fed or whomever has won.

 

Fri, 03/20/2015 - 15:57 | 5910926 daveO
daveO's picture

The crash will come via bond/FRN's. 

http://futuretimeline.net/subject/images/us-debt-graph-2020.jpg

They've larded on $4 Trillion in 4 years. The stock market won't keep pace with the collapsing currency. It will be a collapse hidden in plain sight. 

Here they are, sealing it's fate and turning us into serfs;

http://static4.businessinsider.com/image/50f9bf66eab8eab74800000a-1200/p...

http://ts1.explicit.bing.net/th?id=HN.608011419354071426&pid=1.7

Fri, 03/20/2015 - 17:03 | 5911236 sapioplex
sapioplex's picture

It's different this time?

Fri, 03/20/2015 - 14:28 | 5910608 Duck and Cover
Duck and Cover's picture

This weasel said that Ben and company saved the economy.....

What really happened was Ben and company ruined the economy!!

And Fisher helped them do it ........

Fri, 03/20/2015 - 14:46 | 5910684 yogibear
yogibear's picture

BenDover Bernanke fucked savers and enriched speculators.

 

 

Fri, 03/20/2015 - 14:54 | 5910716 reader2010
reader2010's picture

Short sellers are so eager. 

Fri, 03/20/2015 - 14:56 | 5910724 gallistic
gallistic's picture

I have always liked the Shiller P/E for the simple reason that it filters out some of the BS.

The current Shiller PE ratio stands at 27.86.

What, me worry?

Fri, 03/20/2015 - 15:03 | 5910749 teslaberry
teslaberry's picture

dick is leaving the ship because he's scared of getting hung by the neck when the ship goes down and the mobs yell for blood.

a guy like dick actually sees what can happen 4-5 years out.
he is able to take LONG TERM decisions.

a disaster is coming and he tries to defend the fed at 4:50, blaming 'fiscal inaction'. hahahahhahahahh.

yea , blame the government that is itself lobbied NOT to do anything against the wall street banks and to lobby the government NOT TO AUDIT THE FED>

it's not an accident that santelli is PROHIBITED from asking dick about 'auditing the fed'.
not an accident at all.

Fri, 03/20/2015 - 15:45 | 5910947 daveO
daveO's picture

Here's some of the 'fiscal inaction' that he helped fund via low interest loans.

http://www.npr.org/blogs/thetwo-way/2012/09/06/160677144/obama-was-spewi...

$4 Trillion added since.

Fri, 03/20/2015 - 15:15 | 5910803 Seal
Seal's picture

So, sell in March and go away?

Fri, 03/20/2015 - 15:27 | 5910868 corporatewhore
corporatewhore's picture

I ran out and got an adjustable mortgage when alan greenspan told me to do so.

I got out of the market when this bloke said get out.

 

I lost my ass listening to bad advice

Fri, 03/20/2015 - 15:43 | 5910944 Livermore Legend
Livermore Legend's picture

As "True" as it gets and Vital For Any "Long" to Know:

“Well, what worries me is how totally lazy investors have gotten, totally dependent on the Federal Reserve and I find this to be a precarious situation.”

This is Precisely "Why" I have stayed and continue on the "SHORT" Side.

It is the Hardest to Make Money, requires High Skill and the Courage of Your Convictions - thus one can never become "lazy".

"Lazy" in Markets is best explained by the True Master.

It requires No Conviction to "Buy" - it is this very Lack of Conviction that will ultimately bring the Market Down; which No Action By ANY PARTY will be able to Remedy.

This is what Mr. Fisher does not explain; nor is it his Responsibility to do so.

"Short" it is the "Surest" Money there is in Markets because NOTHING is Guaranteed to Rise; but Certain Instruments reach a Discernable Point where they are Sure to Fall. 

This is especially so given the Current Environment.

In doing so, I don't need to Know "When", nor worry about any  "Crash" or the inevitable Financial Reckoning.

Such events will only Magnify My Gain, and those with Me.

And there is Plenty of Money to make on the Short Side:

SHORT RIMM in 2010;

(Would have been "Long" Treasuries in 2010 @ 4 % Had Carlos Slim Put Up the Billion + I asked for);

SHORT AAPL in 2012.

And as I have explained, there are some "Prime Shorts" right now in 2015, which will remain "Prime" to the Real Bottom.

"Shorting" is indeed an "Art" - much more so than 'Chariot'.......

And the latter cannot produce a dime.......Much less Protect Accumulated Capital.....

As many of the "Top Dogs" and Market "Stars" will soon learn to their Detriment and those Riding with them....

 

 

Fri, 03/20/2015 - 16:24 | 5911105 StupidEarthlings
StupidEarthlings's picture

" like watching dumb money being violated like Jody Foster on that pinball machine in "The Accused." '

 

 

Well..yeah, kinda..but in her case..she did kinda ask for it.    Just sayin.

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