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Yellen Kills The Music, Says "Equity Valuations Are Quite High", Sends Dow Red For 2015

Tyler Durden's picture




 

Back in July 2007 Citi's then CEO Chuck Prince, a little over a year before his bank received a gargantuan government bailout said "as long as the music is playing, you've got to get up and dance." Moments ago Janet Yellen just killed the music:

  • YELLEN SAYS EQUITY MARKET VALUATIONS QUITE HIGH

Or, paraphrased, the $4.5 trillion balance sheet the US created, and the $22 trillion in assets purchased by global central banks to keep the dream alive, has lead to "quite high" stock prices.

The good news for Yellen, is that at least Congress can't blame her for leaking this only to Medley Global Advisors.

The better news: for a low, low monthly price, all subscribers to Yellen Capital Advisors will get the Chairmanwoman's tip on when to BTFD.

And with that The Dow has accelerated its weakness into the red for 2015.

 

And since last week's FOMC...

 

and here she is explaining that "Credit spreads are too low... equity valuations are quite high... there are potential dangers there"

 

Which is odd, because credit spreads have widened for over a year as her wealth-creating stock market has exploded ever higher...

 

Of course there is no need to worry... for 4 minutes after she uttered those words, someone decided to start selling vol in size...

 

Charts: Bloomberg

 

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Wed, 05/06/2015 - 10:15 | 6065492 Dr. Richard Head
Dr. Richard Head's picture

The sun is quite bright!

Wed, 05/06/2015 - 10:18 | 6065527 Aknownymouse
Aknownymouse's picture

In other news, it snows in winters

Wed, 05/06/2015 - 10:20 | 6065537 blabam
blabam's picture
Tis but a scratch. 
Wed, 05/06/2015 - 10:26 | 6065576 Soul Glow
Soul Glow's picture

Monetary policy is based on its ability to create debt to manifest future gains.  All evidence points to zero growth over the last few years.  Negative growth is a foregone conclusion when the punchbowl runs dry, which it will.

Prosperity is never printed, it is earned, and debt issued will never replace it.

Wed, 05/06/2015 - 10:30 | 6065609 Dr. Engali
Dr. Engali's picture

Heretic! report to FEMA camp #14 immediately! If you do not comply we will have some nice steroid using men dressed in black come "assist" you.

Wed, 05/06/2015 - 10:34 | 6065628 Headbanger
Headbanger's picture

WHAAAAAATTTTTT!!??

UNBEFUCKINGBELIEVABLE!!


Wed, 05/06/2015 - 10:47 | 6065688 BaBaBouy
BaBaBouy's picture

BroomHilda Strikes.....

Wed, 05/06/2015 - 10:49 | 6065696 Serfs Up
Serfs Up's picture

Have no fear...rest assured that even as the old crone flaps her diseased gums there's a Fed flunky pounding the Buy Stawk Futures button with his right index finger and the Sell Gold button with his left index finger.

Wed, 05/06/2015 - 10:55 | 6065722 eclectic syncretist
eclectic syncretist's picture

The printing presses can never stop, but must run ever faster just to stay in place.........Greenspank, Buttyanke, and Fellon have turned our country into Alice in Wonderland.

Run for the hills MOFO's!

https://www.youtube.com/watch?v=K7ToNJHgp-w

Wed, 05/06/2015 - 10:58 | 6065748 Slomotrainwreck
Slomotrainwreck's picture

Great, now Gold will explode!

Not!

Wed, 05/06/2015 - 11:13 | 6065779 Arius.
Arius.'s picture

"EXESSIVE EXUBERANCE" from another Federali comes to mind ....

 

Could it be that we are on to new postures?

Could it be that the groundhog days of DOW 18000, Nasdaq 5000 are over ? 

 

Is this a preparation of next week's Big Decision on Greece? or just random ramblings ...probably not.

 

Wed, 05/06/2015 - 11:16 | 6065829 Soul Glow
Soul Glow's picture

She's a banker and she, along with her Board of Blankfein and Dimon et al, run the world's largest bank/hedge fund.  She is just twerking markets to suit their needs.

She'll come out next week and say QEX is in the works and send the dollar down and stocks up.

DISCLAIMER: THIS IS NOT TRADING ADVICE

BUY SILVER

:)

Wed, 05/06/2015 - 11:30 | 6065878 waterwitch
waterwitch's picture

NSS

Wed, 05/06/2015 - 11:33 | 6065886 kaa1016
kaa1016's picture

This thing where stock prices move in completely random patterns, because you can't call it a market anymore, is such a joke. They sold vol immediately in order to juice the "market" higher. At this point, what else is there to say?

Wed, 05/06/2015 - 12:01 | 6066016 Fun Facts
Fun Facts's picture

"The last duty of a central banker is to tell the public the truth"

Alan Blinder, Central Banker

Wed, 05/06/2015 - 14:24 | 6066505 SilvertonguedAngel
SilvertonguedAngel's picture

The Zio-Keynesian money changers have become all powerful, who can make war against them?

Wed, 05/06/2015 - 11:46 | 6065947 KnuckleDragger-X
KnuckleDragger-X's picture

They aren't high they are insane, so we'll bail'em out when they crash....

Wed, 05/06/2015 - 14:38 | 6066561 Carpenter1
Carpenter1's picture

Repeat after me:

 

The FED is not my friend

The FED is not my friend

The FED is not my friend

 The FED is not my friend

The FED is not my friend

 

I know they gave you lots of free money, but that doesn't make them your friend. Child abductors use candy, not wooden spoons.

Wed, 05/06/2015 - 13:28 | 6066304 newdoobie
newdoobie's picture

INCONCEIVABLE!

You keep using that word, I don't think you know what it means.

Wed, 05/06/2015 - 10:36 | 6065641 Soul Glow
Soul Glow's picture

I can't believe people in Baltimore are abiding the curfew.  What ignorant fucks people can be.

Wed, 05/06/2015 - 10:55 | 6065723 Dr. Engali
Dr. Engali's picture

Well the city is populated by retards.

Wed, 05/06/2015 - 10:49 | 6065694 Bangin7GramRocks
Bangin7GramRocks's picture

Did you say muscle men in black? Don't you tease me Doctor!

Wed, 05/06/2015 - 11:30 | 6065877 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Heheh.

Wed, 05/06/2015 - 11:29 | 6065875 Atomizer
Atomizer's picture

Soul: you understand. Well done. 

Wed, 05/06/2015 - 16:57 | 6067067 caconhma
caconhma's picture

Without a constantly rising stock market, there are no money for pension funds and insurance companies to pay their customers. It is that simple.

Wed, 05/06/2015 - 10:26 | 6065583 Oh regional Indian
Oh regional Indian's picture

A flesh wound...

Look at the world we have come to inhabit though. The fiscal health of the entire world depends on what comes out of...well, I guess you can call it a mouth...of....an aging puppet female entity.

Can feel the money spigot shutting down in the west...look at Silicon Valley, no big news for months.

That is a huge tell.

Meanwhile here in India, Dotcom 2.0, Indian style is in full, fake swing....

Such a feeling of deja new, having eperienced exactly this from 199-2006 in the Valley.

Dollar dives, India swoons, instantaneously, so inter-twined now. Like a frigging death grip. Big daddy dollar is pushing everything up, land, food, education....

Brrrr.....

Sequence 15

https://www.youtube.com/watch?v=DJU_flXZMuk

Wed, 05/06/2015 - 10:37 | 6065646 Parsecs Taxi
Parsecs Taxi's picture

Moving the old fashioned economy of physical resource conversion into the Shangri-La of cyberspace seems to be a tall order. I reckon it will be long time before we're beings of pure energy.

Wed, 05/06/2015 - 10:46 | 6065683 Oh regional Indian
Oh regional Indian's picture

Very true PT. THey changed Japan from 78/22 Agriculture/Trade to 25/75 in 50 years.

That was the great Japanese version of Marshall plan.

Nuke power and robot factories run by a fastidiously clean and obedient populace.

From wickedpedia:

The American government, under the auspices of the Supreme Commander of the Allied Powers (SCAP), played a crucial role in Japan’s initial economic recovery, although Japanese government measures fostered rapid postwar growth. SCAP officials believed economic development could not onlydemocratize Japan but also prevent the reemergence of militarism, and forfendcommunism. Military hostilities in the Korean peninsula further boosted the economy in 1950 because the U.S. government paid the Japanese government large sums for "special procurement." These payments amounted to 27% of Japan’s total export trade.[1] 

 

Wed, 05/06/2015 - 10:20 | 6065544 TeamDepends
TeamDepends's picture

Tell grandma to shut her pie-hole, she's scaring the children.

Wed, 05/06/2015 - 10:23 | 6065565 Dr. Engali
Dr. Engali's picture

It's okay, she'll bake them a cookie and soon they will be right as rain.

Wed, 05/06/2015 - 10:27 | 6065581 new game
new game's picture

drove my chevy to the levy but the levy was dry...

this will be the day...

Wed, 05/06/2015 - 14:08 | 6066454 zeroaccountability
zeroaccountability's picture

Yellen bakes cookies with children IN th3m:   "Get in mah belly!"

Wed, 05/06/2015 - 10:26 | 6065578 y3maxx
y3maxx's picture

David Goldbergwas suicided.

Wed, 05/06/2015 - 10:45 | 6065676 leftcoastfool
leftcoastfool's picture

We suicided some folks...

Wed, 05/06/2015 - 12:09 | 6066054 cheech_wizard
cheech_wizard's picture

Well, at least he didn't trip in a kitchen and fall into an oven...

 

Wed, 05/06/2015 - 10:35 | 6065636 Element
Element's picture

Let me get this straight, people needed a Jew from the Fed to alert them to something that any self-respecting turnip could discern?

But it makes all the difference to reality when the approved kike bankster says it?

 

OK

Wed, 05/06/2015 - 13:29 | 6066312 stocktivity
stocktivity's picture

It's all bullshit!!!   After all these years of back funding the dow with zero interest rates and forcing people to chase yields, she bitches about valuation. 

Wed, 05/06/2015 - 10:22 | 6065557 dimwitted economist
dimwitted economist's picture

Yellen... LOL!!!! how come every single time they change those people something Horrible happens?

Wed, 05/06/2015 - 13:03 | 6066223 TruthInSunshine
TruthInSunshine's picture

What do you mean by "those people!"

Dat's antisemitic!!

Wed, 05/06/2015 - 10:26 | 6065579 Butterflying
Butterflying's picture

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com

Wed, 05/06/2015 - 10:44 | 6065672 imaginalis
imaginalis's picture

I can imagine how awful it must be for her in front of that web cam with the donkey for 20 hours

Wed, 05/06/2015 - 12:05 | 6066034 cheech_wizard
cheech_wizard's picture

One of the Tylers paid me $10K to find you and cut off your fingers. Not too shabby for what will only take about five minutes with a chainsaw.

Wed, 05/06/2015 - 12:26 | 6066117 Bastiat
Bastiat's picture

You should sharpen your chain more often.

Wed, 05/06/2015 - 12:55 | 6066203 cheech_wizard
cheech_wizard's picture

Still waiting for the Tylers to allow me enough access to boot spam trolls. By now, they should have at least figured out the last 5 or 6 related aliases posting this crap on nearly every article and then not allowed any individual coming in through that IP address an account. 

Failing that, they could, at the very least, publish the spammer's ip addresses and mail headers. 

Wed, 05/06/2015 - 13:18 | 6066276 Bastiat
Bastiat's picture

Yeah that crap is tiresome -- it does create occasions for some funny responses though.

 

Wed, 05/06/2015 - 13:28 | 6066303 Automatic Choke
Automatic Choke's picture

It is easy enough for the Tylers to do as you suggest and drop these guys before they start......I suspect that the Tylers are writing these themselves, as the extra comment-hits help with their ad revenue.

Wed, 05/06/2015 - 13:59 | 6066422 TheReplacement
TheReplacement's picture

Reality check:  Chainsaws do not cut thru flesh very well.  The flesh tends to catch and cause a skip or a bounce.  You are better off with a solid blade for that sort of work.

Wed, 05/06/2015 - 10:45 | 6065680 Bangin7GramRocks
Bangin7GramRocks's picture

You paper shufflers must love this "free market" that you learned about in Grad school. Maybe you should all produce some colorful charts showing a correlation to other bull markets. A white haired grandma says a few words and the "market" drops. What a profession!

Wed, 05/06/2015 - 11:17 | 6065835 eclectic syncretist
eclectic syncretist's picture

It's Alice in Wonderland Economics, otherwise known as Keynesian Economics, where money has to be printed ever faster just to keep the economy in place and attempt to keep it from falling off a cliff. Here's a perfect analogy of Yellen running the printing press;

https://www.youtube.com/watch?v=i2rGjc9hSns

Wed, 05/06/2015 - 10:47 | 6065685 williambanzai7
williambanzai7's picture

Wed, 05/06/2015 - 10:56 | 6065736 Dr. Engali
Dr. Engali's picture

Gaaaross. I think I just puked in my mouth a little.

Wed, 05/06/2015 - 11:05 | 6065783 SoilMyselfRotten
SoilMyselfRotten's picture

Waitin on the leg cross.....MMMMM

Wed, 05/06/2015 - 11:11 | 6065811 Kirk2NCC1701
Kirk2NCC1701's picture

PLEASE don't let her uncross her legs.

Wed, 05/06/2015 - 11:28 | 6065866 Atomizer
Atomizer's picture

Just imagine Janet is Sharon Stone. Yellen can print money from her penis. 

Wed, 05/06/2015 - 12:34 | 6066149 ZeroPoint
ZeroPoint's picture

Worse question: What are the odds that she reveals Tab A and not Slot B?

 

 

 

Wed, 05/06/2015 - 14:21 | 6066494 zeroaccountability
zeroaccountability's picture

I'd hit tha.....ahhh, nevermind.

Fri, 05/29/2015 - 04:00 | 6142866 andersonsmith
andersonsmith's picture

Music or movies both are the best source of entertainment or relaxation. Entertainment is as necessary as water because we become ill with our daily routine life without it. Normally i love to watch online movies at join4movies.info. But many of us also like to watch movies in cinemas because In the cinema, much more interesting than the houses, you are almost all the time, and Movies is an excellent opportunity to shatter and cheer yourself up.

Wed, 05/06/2015 - 11:03 | 6065773 ZH Snob
ZH Snob's picture

janet is subversive.

Wed, 05/06/2015 - 13:44 | 6066373 richiebaby
richiebaby's picture

The CNBC Assholes, led by Steve, only my mother could love my face, Liesman, went into damage control, including one no name clown, who saide he wasn't sure if Yellen meant our markets or the world markets 

Wed, 05/06/2015 - 14:23 | 6066501 Model T
Model T's picture

Just cashed out my ES shorts from two days ago; took $11,100 profit. Not necessary to consider other countries; it oscillates anyway.

Wed, 05/06/2015 - 10:15 | 6065499 venturen
venturen's picture

Hillary is quite ugly and lies

Wed, 05/06/2015 - 10:17 | 6065512 NoDebt
NoDebt's picture

And those are her good points.

Wed, 05/06/2015 - 10:17 | 6065518 FreeShitter
FreeShitter's picture

I read at one time from a high school classmate of her's saying "she stunk down there"....

Wed, 05/06/2015 - 10:25 | 6065573 gaoptimize
gaoptimize's picture

This is a general/common problem among those who eat too much sugar.  Eliminating processed sugar and taking a broad range probiotic with meals can eliminate this problem within a month.

Wed, 05/06/2015 - 10:29 | 6065606 Oh regional Indian
Oh regional Indian's picture

Or, for Candida (most Americans have it), Garlic...

https://aadivaahan.wordpress.com/2012/03/29/candida-albicans-and-a-healt...

Wed, 05/06/2015 - 10:20 | 6065525 Dr. Engali
Dr. Engali's picture

According to CNBS 50% of the American public thinks she is honest and trustworthy. So we know that 50% of the American public are beyon stupid.

Wed, 05/06/2015 - 10:22 | 6065551 Temporalist
Temporalist's picture

They forgot to mention that the other 50% are braindead.  Hey you just changed your comment damnit!

Wed, 05/06/2015 - 10:16 | 6065503 NoDebt
NoDebt's picture

To everything, churn, churn, churn

There is a season, churn, churn, churn

And a time to every purpose under Yellen

Wed, 05/06/2015 - 10:16 | 6065507 Dr. Engali
Dr. Engali's picture

Thank goodness for our central planners stating the painfully obvious. Now if grandma would just give us her year end S&P target life will be good.

Wed, 05/06/2015 - 10:17 | 6065519 Soul Glow
Soul Glow's picture

I'd like her apple pie recipe myself.

:)

Wed, 05/06/2015 - 10:18 | 6065529 SHEEPFUKKER
SHEEPFUKKER's picture

She said they were quite high. She did not say they were too high. Too da moon!!

Wed, 05/06/2015 - 10:17 | 6065516 Al Huxley
Al Huxley's picture

What a twat - last I recall she was saying price-to-equity ratios seemed reasonable.  How am I supposed to gamble successfully which such shitty guidance?

Wed, 05/06/2015 - 10:18 | 6065530 FreeShitter
FreeShitter's picture

The red pill....the red pill!

Wed, 05/06/2015 - 10:59 | 6065753 Arius.
Arius.'s picture

"gamble successfully" ... the new goal to make it in life

Wed, 05/06/2015 - 10:55 | 6065716 NoDebt
NoDebt's picture

She decided to look at other valuation metrics besides price-to-equity and changed her mind.  

Al, please remember she has your best interests in mind.  She has, once again and for years now been giving you opportunity after opportunity to buy the fucking dip.  And you're complaining about this.  I think you need to take a moment to reassess your priorities.

Wed, 05/06/2015 - 12:51 | 6066194 Al Huxley
Al Huxley's picture

This is the 'instant gratification, nothing is ever enough, what's in it for me' society my friend, I don't give a fuck what she did yesterday, what's she doing to assist TODAY's financial rape and pillage?

Wed, 05/06/2015 - 10:18 | 6065528 williambanzai7
williambanzai7's picture

Wed, 05/06/2015 - 10:33 | 6065625 Jstanley011
Jstanley011's picture

Haha, I listened to that 8 track at least 100,000 times during high school.

Wed, 05/06/2015 - 10:19 | 6065531 buzzsaw99
buzzsaw99's picture

JUST TELL EVERYONE THE RIGHT PRICE BITCHEZ!

the price is wrong bitch. [/happy gilmore]

Wed, 05/06/2015 - 10:22 | 6065558 Soul Glow
Soul Glow's picture

The name of this site comes to mind.

:)

Wed, 05/06/2015 - 10:19 | 6065532 blown income
blown income's picture

No shit...

Wed, 05/06/2015 - 10:19 | 6065533 MaxMax
MaxMax's picture

No kidding stock prices are high, but when you have computer models valuing stocks using the risk free interest rate as part of the calculation, what happens as the rate approaches zero?  Answer, infinite valuation.  If the interest rate is zero, what are the discounted cash flows for a business that assumed to keep operating indefinitely?  What is a number divided by zero?

Wed, 05/06/2015 - 10:27 | 6065590 viahj
viahj's picture

never divide by zero. 

Wed, 05/06/2015 - 11:04 | 6065771 Slomotrainwreck
Slomotrainwreck's picture

-zero works fine for that, theoretically.

Wed, 05/06/2015 - 10:19 | 6065534 papaswamp
papaswamp's picture

Well you helped make it that way you stupid bitch. What the fuck did you think was going to happen?

Wed, 05/06/2015 - 10:40 | 6065657 buzzsaw99
buzzsaw99's picture

evans, bullard, they all jawbone it higher so they can smack it lower. those cunts ain't working for us, that's for sure.

Wed, 05/06/2015 - 10:19 | 6065535 indygo55
indygo55's picture

They are all laughing at us. They open their mouths and look what happens. They want power and they have it. If we stop listening then the algos take over. They will get their power trip either way. 

Wed, 05/06/2015 - 10:20 | 6065538 Temporalist
Temporalist's picture

That is ok because tomorrow Yellen will say "I meant too highly underrated."

Wed, 05/06/2015 - 10:20 | 6065539 swass
swass's picture

Thank you, Captain (Painfully) Obvious.

Wed, 05/06/2015 - 10:20 | 6065540 Squid Viscous
Squid Viscous's picture

so now this brooklyn jew cunt is an equities expert?

Wed, 05/06/2015 - 10:21 | 6065542 Keltner Channel Surf
Keltner Channel Surf's picture

Somethin's fishy here:  "risky" IWM briefly went green on the day (and is .50% better than other indices) while the Dow crashed to its 100 DMA.  Dollar weakness wouldn't lead to any large-to-small-cap rebalancing.  A trap, or just hexadecimal chaos?

Perhaps the speech-to-text algos instructions were:  get everyone to the 100 DMA pronto, and given RUT was the only one already there, not as much work to do on that index (?)

Wed, 05/06/2015 - 10:33 | 6065621 jump_mutha_fukah
jump_mutha_fukah's picture

I'm still leaning toward more fallout in the Rut...haven't seen the capitulation yet...just persistent buy the dip with no follow through of size. Once that mentality breaks I think we will get a nice swoosh lower ... Covered short puts on mondays highs, resold hedged put leg in yesterdays lows, covered short calls yesterday resold at the open pop today. Been getting lucky hitting the tops and troughs pretty well all week but staying nimble... Hope you are having some luck. Refreshing to finally get some good trades...been awhile since a few good windfalls.

Wed, 05/06/2015 - 10:57 | 6065737 Keltner Channel Surf
Keltner Channel Surf's picture

SPY and DIA back to UNCH, this could be a fucking trap, or just an algo Unch ramp before re-dumping. VWAP's didn't hold as normal re-shorting points in most indices, not a good sign for bears, nor is the VIX dump.

I didn't act until after Yellen was done speaking, so of course when she finally gets hawkish it's possibly a trap.

Wed, 05/06/2015 - 10:20 | 6065543 jump_mutha_fukah
jump_mutha_fukah's picture

Hello, Yellen, this is Diamond...we have completed our long exodous and are now balls deep short. You know what to do, make us proud.

Wed, 05/06/2015 - 10:21 | 6065546 LawsofPhysics
LawsofPhysics's picture

People are still working in order to provide real products for the bankers and financiers who "create" paper/digital claims with no effort/work and without any real collateral.

Until this fundamentally changes, do not expect anything the government does to improve your situation.  They don't play by any real rules, and niether should you.

tick tock motherfuckers....

Wed, 05/06/2015 - 10:27 | 6065591 Stormtrooper
Stormtrooper's picture

But people are still willing to exchange their gold and ammo for that paper so I'm still willing to play the game.

Wed, 05/06/2015 - 10:45 | 6065675 LawsofPhysics
LawsofPhysics's picture

I don't know a single person that is selling gold or ammo for rapidly devaluing paper.  Doesn't sound like a neighborhood I like to live in.  Good luck.

Wed, 05/06/2015 - 10:22 | 6065555 Quinvarius
Quinvarius's picture

Just setting up that end of week rally on the upcoming fantastic BLS employment for the bankers.  If you can't get big volatility to trade, you need frequent small volatility.  Every day and every report must be polar opposites of the ones that proceeded them

Wed, 05/06/2015 - 10:27 | 6065589 Parsecs Taxi
Parsecs Taxi's picture

I think I read recently that the Federal Reserve has actually invented a warp drive. Or maybe it was a perpetual motion machine.

Wed, 05/06/2015 - 10:22 | 6065556 gwar5
gwar5's picture

Dry cunt is a conspiracy theorist now so better late than never. I think she is de facto admitting what we all know, that the FED is losing control of the markets cause if they could make them go up with QE forever, they would.

Wed, 05/06/2015 - 10:23 | 6065561 Bell's 2 hearted
Bell's 2 hearted's picture

well, didn't yellen say last year biotechs were a bit frothy ... and then they did moonshot?

Wed, 05/06/2015 - 10:27 | 6065593 Brazen Heist
Brazen Heist's picture

But but but the Yellen Put!!

Wed, 05/06/2015 - 10:31 | 6065616 Space Animatoltipap
Space Animatoltipap's picture

The FED is cornered, and Yellen/Fisher know it. But worldly gifted Jews like to go to extremes so the game will be played. btw, Got gold?

Wed, 05/06/2015 - 10:34 | 6065627 FreeShitter
FreeShitter's picture

Got extra food, ammo, water? Cannabalism aint no joke.

Wed, 05/06/2015 - 12:30 | 6066131 phoenixdark
phoenixdark's picture

soylent green is quite tasty. 

Wed, 05/06/2015 - 10:34 | 6065631 Counterpunch
Counterpunch's picture

What will happen if someone tells the markets that the debt-money/frac reserve is running up against the laws of thermodynamics?

 

Beyond a certain point, academic economics guiding policy is like seeing a phrenologist for your headache.

 

 

 

Wed, 05/06/2015 - 10:50 | 6065666 22winmag
22winmag's picture

Economics and Academia both are spy-riddled and money-soaked.

 

Tis the season for fiscal treason.

Wed, 05/06/2015 - 10:37 | 6065643 22winmag
22winmag's picture

As if millions of stawks were suddenly silenced.

Wed, 05/06/2015 - 10:39 | 6065651 Soul Glow
Soul Glow's picture

Whaen did stocks peak before the crash of '08?  Oh yes, the summer of 2007.  Hmmmmmm....patterns patterns everywhere!

Wed, 05/06/2015 - 10:38 | 6065647 Calculus99
Calculus99's picture

Armstrong going for a dump in stocks first (over the next few months).

That gets people saying 'it's all over' and jumping into Bonds.

Then Bonds dump for good and stocks go to the moon.

All starting October this year.

If he gets this call right, it will be the call of the century.

The argument is simple, if people lose faith in government debt there's only stocks for them to go into (he's talking about the big money).

Whether you like Armstrong or not, anybody that calls out the Elite is worth listening to because it proves they understand what's really going on.   

Wed, 05/06/2015 - 10:40 | 6065658 Soul Glow
Soul Glow's picture

No that's not how it works.  Just because one goes down doesn't mean one goes up.  And when people can't jump in the heaviest trade of all - the dollar - then where will they go.

THEY WILL GO FOR GOLD

Wed, 05/06/2015 - 10:52 | 6065708 Calculus99
Calculus99's picture

Yes, Gold should and will probably get a massive bid but the big money can't buy it, market is too small. Give me a $5billion buy order for US stocks and I'll have it filled by the end of the day. Give me a $5billion Gold order and come back in many weeks time, maybe longer.   

Armstrong is going for a private versus public arguement.

Public is government debt, private is stocks. The big money, the trillions floating around the world can only buy into the massive markets, quality stocks or government debt. So it's not a case of buying stocks because they offer value, rather they're the only asset class the big money can buy into because of their tremendous liquidity. 

Wed, 05/06/2015 - 11:09 | 6065801 Soul Glow
Soul Glow's picture

If supply is tight that would send the price higher.  If the gold can't be delivered then panic orders would come in.  This is why the Fed and other CBs have looted the gold in the vaults, because it is becoming increasingly hard to attain.

Wed, 05/06/2015 - 12:02 | 6066003 Quinvarius
Quinvarius's picture

Armstrong is aways wrong about everything.  He has been saying buy stock ever since the S&P hit 2100.  Before that he was saying wait until they pull back.  He said buy oil for the big rally 6 months ago.  He said sell oil down to 30 after it 40.  He said buy gold 6 years ago because it was going to 5K.  After the intervention to 1150, he said sell it down to 950.  These predictions are all available on the internet.  The guy claims he is making trade timing calls.  And none of them are ever right.  He is a charlatan pretending he invented AI that tells the future.  How simple do you have to be to listen to this asshat?

Why do people listen to that idiot?  He is just chasing prices like every other asswipe.

Wed, 05/06/2015 - 10:40 | 6065648 khakuda
khakuda's picture

I'll bet the video doesn't show the full clip.   "Equity valuations are quite high....but they can go a lot higher with the free money I keep printing baby and I ain't gonna stop.  It's not my job to worry about bubbles, I'm the freakin Fed, it's not my job.  If I do QE and ZIRP for a decade or more and destroy bonds and cash as an asset class so that equities and real estate go into a bubble, so what?  I get stocks up, I get a job with Goldman, write a book, go on the lecture circuit.  Woo Hoo!  But, you must remember, I really, really care about the little people and wealth inequality.  Sure, I caused their suffering and huge divide in the wealth gap, but if I'm on the right side of the gap, what me worry Lagarde, you oompa loompa."

Wed, 05/06/2015 - 10:40 | 6065662 Soul Glow
Soul Glow's picture

Diminishing returns

Wed, 05/06/2015 - 10:39 | 6065655 KenShabby
KenShabby's picture

So now they find "religion"?

Wed, 05/06/2015 - 10:44 | 6065660 Seasmoke
Seasmoke's picture

Make up your fucking mind Mr. Yellen....you just said stock prices were NOT too high.....Is time running out and does it feel like the walls are closing in Mr. Yellen ????

Wed, 05/06/2015 - 11:09 | 6065800 J J Pettigrew
J J Pettigrew's picture

There is a reason she comes off as a kindergarten teacher.......

Wed, 05/06/2015 - 10:43 | 6065669 gcjohns1971
gcjohns1971's picture

Okay,

 

So Yellen is an appointee.  The FOMC are government.

The Fed Banks are private.

The names that get on the list for politicians to choose from for the FOMC or Chairperson are put on that list by the private banks.

The hand that feeds the Fed are the private owners of the Fed banks.

Mass deflation will kill those banks in a debt collapse - Deutsche Bank, Societe Generale, Wells Fargo, etc among them.

Mass inflation will kill those banks' liabilities and force a reset to the debt cycle by way of added zeros...or a good-bank, bad-bank split from the dollar and replacement with an alternate.

So...If you really want to know whether Yellen is going to return to QE you need only ask whether the banks would prefer to kill the impending debt implosion by way of deflation or inflation.

Once you know that answer...and we all do...the only question is timing and triggers.

Can we agree that 'Extend and Pretend' is running out of legs?  In short, that decision time is near?

 

Wed, 05/06/2015 - 11:19 | 6065840 Lady Jessica
Lady Jessica's picture

But isn't QE in its current form deflationary?

Everyone would agree with you that they are desperate for inflation.

Either they knew QE would be counterproductive in this regard from the outset (and off the top of my head I can't think why) or they are only just figuring it out now (which means Helicopter money will be the favoured mode of QE with the next crash, or something like that).

Wed, 05/06/2015 - 10:46 | 6065682 Chuck Knoblauch
Chuck Knoblauch's picture

Yellen is a stock market manipulator.

She knows the dollar slide is going to help earnings.

She wants you to short the market.

She knows equities are moving up.

Fucking bitch!

Wed, 05/06/2015 - 11:01 | 6065760 buzzsaw99
buzzsaw99's picture

nailed it.

Wed, 05/06/2015 - 10:47 | 6065687 Duc888
Duc888's picture

 

 

 

Wow.  Good thing we "hired" someone so damned smart for the job.

Wed, 05/06/2015 - 10:54 | 6065715 Tenshin Headache
Tenshin Headache's picture

Brace for a strong rally. About a year ago, Yellen was sure biotech was too high.

Wed, 05/06/2015 - 10:56 | 6065729 Tsar Pointless
Tsar Pointless's picture

Ha ha. Almost 100 points up on the Dow since thiis post. Contrarian indicators: ZH and Jellen.

Wed, 05/06/2015 - 11:03 | 6065769 CNBCrap
CNBCrap's picture

You talking to me?

Wed, 05/06/2015 - 11:07 | 6065776 J J Pettigrew
J J Pettigrew's picture

Every time you see someone in the securities or commodities business ask them this question

 

"DID YOU HEAR WHAT JANET YELLEN JUST SAID?"

 

The reaction tells it all...and how stupid this entire arrangement has become...

Wed, 05/06/2015 - 11:56 | 6065974 Arthur Schopenhauer
Arthur Schopenhauer's picture

Many things are like this. Yesterday, on MarketWatch they published an article about the National Association of Realtors NAR reporting the best real estate markets right now are in Texas and New York... specifically Houston, TX.

I commented on it - saying that's not what I'm seeing in Houston, TX.  I gave links to a Houston based Real Estate company that exclusively deals in Houston area Real Estate. These links all pointed to local Houston newspapers, etc. inferring Houston is starting to look really bad because of all the shitty profits, CAPEX cuts, and massive layoffs going in the Houston energy industry right now, and how it will affect prices in the Houston and Texas.

Some MarketWatch dufus fuck responded with this comment "That website is totally bogus, with absolutely no credibility."

WHASSA MATTA YOU?!? DIDN'T YOU HEAR WHAT THE NAR JUST SAID?

Wed, 05/06/2015 - 11:04 | 6065778 Downtoolong
Downtoolong's picture

It’s the Rocky Horror Picture Show revival.

Damn it, Janet! Stop beating around the bush.

Just tell us what price AAPL stock is going to close on June 30, 2015.

Wed, 05/06/2015 - 11:06 | 6065784 gcjohns1971
gcjohns1971's picture

She's just teasing and flirting.

We're already in recession.

She'll return to QE before Thanksgiving or the wheels will come off.

Wed, 05/06/2015 - 11:07 | 6065792 vegas
vegas's picture

Money Question For Ms. Yoda: "Did you whisper this in George Soros ear first, or are we all hearing this at the same time"? Seems appropriate since you give out "your opinions" to HFT algos and other money elites.

 

www.traderzoo.mobi

Wed, 05/06/2015 - 11:12 | 6065814 Atomizer
Atomizer's picture

Yellen is a deckmate shifting chairs on a economic ship vessel. She has been certified to bail out the engine room water encroachment. 

Wed, 05/06/2015 - 11:17 | 6065825 unplugged
unplugged's picture

Why does anyone pay attention to and act upon what the Fed says?  Words are the only tool the Fed has left, be they lies, deception, propaganda - whatever - anything but honesty, words that equate to the truth.  What is true and will remain so is the Fed's printing press is running 24/7 and doling out billions eDollars to whoever they want to dole them out to - they just don't tell anyone they are doing this.  Anyone who believes otherwise is a good little sheep.

Wed, 05/06/2015 - 11:22 | 6065851 Atomizer
Atomizer's picture

Yellen, we use the paid MSM to direct mindless fucks to invest on our ZIRP visions. Once we pass NIRP, we have them fenced-in. TPP will be a easy selling point. 

/sarc

Wed, 05/06/2015 - 11:25 | 6065861 SystemOfaDrown
SystemOfaDrown's picture

SHUT UP and Dance with Me!

Wed, 05/06/2015 - 11:25 | 6065863 orangegeek
orangegeek's picture

this fat cunt yellen talks the market lower, only to watch the market V-bottom again, 20 minutes later

 

fuck you yellen you lying pig!!!

Wed, 05/06/2015 - 11:36 | 6065899 newsoutlet
newsoutlet's picture
SBU: “Secret Report” Russian experts about “Boeing” is based on falsified images

 

Published on May 5 in the Russian media the results of investigation into the collapse of the Malaysian Boeing-777 in the Donetsk region are based on the pictures, which were fabricated by the General Staff of Russia. This was stated by the chief of counterintelligence department of defense the state’s interests in the sphere of information security SBU Vitaly Naida , transfersApostrophe.

According to Naidoo, the General Staff of Russia took four days to fabricate evidence, falsify satellite imagery, materials satellites spies to try to accuse Ukraine of possible involvement in the collapse of Boeing.

According to Naidoo, a comparative analysis of Russian space imagery data carried on digital satellite data. This so-called “Russian evidence” has many signs of forgery and retouching . In addition, some of these pictures was shot by Russian spy satellites at another time, long before the terrorist attack Boeing flight MH17 .

So, forgery was “satellite image” of the General Staff of the Russian Federation from the alleged July 14, 2014 in a separate radio technical battalion / h A-0194 near the village of Greenhouse Luhansk region.

 

“The Russians claim that the alleged in this picture are several launchers” Buk M1 “. However, in the pictures, which are in use SBU July 16 noticeable just 3 pieces of military equipment, which for two days did not change the place of its location, and the territory of the military unit and its vicinity observed the effects of the shelling, “- said Naida .

CounterSpy also stated that the said armed battalion was withdrawn under fire from terrorists in the Kharkiv region, there was no active weapons such as SAM “Buk”.

 

“The battalion deduced equipment and personnel under attack terrorists. The same technique that was damaged, which remained in place dislocation – it portrayed on Russian photography as if there stationed “Buki” – said Naida.

“At the time of the terrorist attack of the territory was under the control of pro-Russian terrorist organizations. Therefore, the allegation that in this area there were Ukrainian, “Buki” are completely rigged, “- he added.

Another “Photo” – allegedly made by a Russian spy satellite July 14, 2014:

“The photo shows a single air defense missile battalion (in / h A -1428) between the city and the village Spartak Avdeevka Donetsk region. In the Russian pictures for July 14, the left side of the photo displayed tree planting and clearing, which is to the forest plantation. On the right we have a photo of July 12, which depicts the real situation on the territory of the military unit: uprooted tree planting was long before the events that allegedly took off the Russians – we see that no forest plantations, the area is aligned, our machinery is in place dislocation “- debunked a senior representative of the Security Service of the Russian General Staff, the next lie.

Russian forgers in uniform did not disdain and retouching with clouds on a real picture of the same part, but allegedly on 17 July:

 

READ MORE: http://toinformistoinfluence.com/2015/05/06/sbu-secret-report-russian-ex...

Wed, 05/06/2015 - 12:01 | 6066014 cheech_wizard
cheech_wizard's picture

You reek of desperation... You best get your Latvian scientists to work on the potato scented soup and deodorant.

Just think of all the women you'll attract then... It boggles the imagination.

Wed, 05/06/2015 - 12:06 | 6066042 czarangelus
czarangelus's picture

Fuck off you paid hasbara sleaze.

Wed, 05/06/2015 - 12:24 | 6066106 cheech_wizard
cheech_wizard's picture

http://www.washingtonsblog.com/2015/03/can-ukrainian-government-target-a...

Let us hope you do not drop a potato while Joel Harding is nearby.

Wed, 05/06/2015 - 11:37 | 6065903 Fix It Again Timmy
Fix It Again Timmy's picture

I just QE'd in my pants...

Wed, 05/06/2015 - 11:38 | 6065908 ZeroPoint
ZeroPoint's picture

Granny Hooknose screwed up my day trading DXD on the predictable intra-day. Go away Yellen.

 

 

Wed, 05/06/2015 - 11:42 | 6065932 I Write Code
I Write Code's picture

How Hi is a Chinaman.

Wed, 05/06/2015 - 12:11 | 6066058 Dr. Engali
Dr. Engali's picture

About 5'4".

Wed, 05/06/2015 - 11:57 | 6065995 cheech_wizard
cheech_wizard's picture

So Yellen signed up for an online check book balancing course?

Wed, 05/06/2015 - 12:20 | 6066091 Toolshed
Toolshed's picture

This is a quote from Yellen's Q & A:

"We've also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of behavior,"

No fucking shit! It appears TPTB need to hire smarter puppets. If dumb ugly cunts, like Yellen and LaGarde, are they best they can get for that kind of money........we really are screwed, as a species, that is.

Wed, 05/06/2015 - 13:15 | 6066264 Bastiat
Bastiat's picture

Is Yellen making hawkish noises to slow the USD's slide?

Wed, 05/06/2015 - 13:36 | 6066334 theyjustcantstop
theyjustcantstop's picture

brought out the big gun to go bear hunting.

if you don't know what the price of the s&p 500, will be at 8:00 pm est daily, by 12:00 pm est daily, take your money, and run.

 

Wed, 05/06/2015 - 14:07 | 6066442 juicy_bananas
juicy_bananas's picture

We jewed some folks.

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