"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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Arrowflinger's picture

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

Pinto Currency's picture



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


Pinto Currency's picture



That'll get you 10 years at camp.

kaiserhoff's picture

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

max2205's picture

My Gaydar just went off 

TruthInSunshine's picture

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


daveO's picture

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


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

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....

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.

thestarl's picture

Exactly what my simple mind thought to TiS

kaiserhoff's picture

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

   as if they ever had a good day.

Spitzer's picture

i could not listen to that phony piece of garbage.

KnuckleDragger-X's picture

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

bwh1214's picture

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


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

Nobody For President's picture

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

Beam Me Up Scotty's picture


Ham-bone's picture

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



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.

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.


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.

10mm's picture

Another RETIRED one coming clean.

Jonesy's picture

The appearance of coming clean, but nothing truly close.

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.

Colonel Klink's picture

They should all be "retired".

Bokkenrijder's picture

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

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

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.

Roanman's picture

What retail investors?

The Bell Rang's picture

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

Rainman's picture

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

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.

besnook's picture

because usans are the stupidest people on earth.

Winston Churchill's picture

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

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.

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.

City_Of_Champyinz's picture

Time for a 100 Trillion dollar note...

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.

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.

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

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. 

knukles's picture

Krebbs was such an insightful guy.

agstacks's picture

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

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.

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?