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Dollar Spikes, Risk Slides After Fed's Fischer Seen As "Not Dovish Enough"

Tyler Durden's picture




 

It appears the economy is doing just well enough and the reflexive bounce in stocks showing that everything is awesome is all that Fed's vice chair Stan Fischer appeared to need to note that "we are heading [a September rate hike]direction." This has been judged as "not dovish enough" and sparked some turmoil...

Key Fischer points:

1) too early to decide on September but "we are heading in that direction"
2) previously was a strong case for Sept hike but market volatility making things problematic
3) We don't fully understand market volatility
4) "we've got time to wait; we've got to take data into account"
5) Fed looking at 25 basis point increase, hike will be relatively slow

And the reaction is 'hawkish' - USD spike, Stocks/bonds lower, gold down...

 

and rate-hike odds soar...

 

And yet the only question that matters, was not asked: how does the Fed hike rates now that China's reserve accumulation is going into reverse, and will lead to dumping of hundreds of billions in Treasurys at a time when the US budget deficit will still need hundreds of billions in funding sources.

In short: the Fed missed its window to hike, and now China has started selling Treasurys, which as we reported previously, is just like global QE, only in reverse.

 

 

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Fri, 08/28/2015 - 11:51 | 6481831 HedgeAccordingly
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and HFT loved every second of that... Spoofed down.. spoofed. up.. Spoofin' aint easy..

CFTC Investigating Chicago-based HFT firm Allston Trading For Potential “Spoofing” Violations
Fri, 08/28/2015 - 11:56 | 6481859 El Oregonian
El Oregonian's picture

Fed chair Phish-er looking to troll the sheeple.

Fri, 08/28/2015 - 12:03 | 6481896 knukles
knukles's picture

Oh yeah .... "Fed looking at 25 basis point increase, hike will be relatively slow"
So that means 1 basis point a month for 25 months?

              These people are absolute fuck-ups when it comes to policy pronouncements.  Getchur plan right and have every body stick to the same official script, how about.  Bloody clown car show.  Jesus, people!  And they don't understand what's going on.  Hows about some folks being put in there with real world experience in the trenches?

              No wonder we're in a world of shit.

Fri, 08/28/2015 - 12:23 | 6481954 ThroxxOfVron
ThroxxOfVron's picture

These people are dope pushers in business attire.

Their core audience is stoned, incoherent and jonesin' but you expect them to communicate clearly and rationally to them??!

WTF?  Even most of the algos they write to try and trade for them are nothing more than crook-minded middle man count-shorting/bag-pinching routines skimming their customers..

 

Does it suck?  Hell yeah it does.

They are JUNKIES.  They cannot possibly slow down or come down -they are hooked and the only thing that they perceive as helpful is MOAR.  A LOT MOAR!

But, until the Citizenry force intervention and put the entire financial and political system through a violent restructuring/rehab program that is gonna probably KILL whole terminally ravaged sectors of the economy -it is NOT going to change...

https://www.youtube.com/watch?v=BlN8OKa-GlE

 

Fri, 08/28/2015 - 13:13 | 6482103 KnuckleDragger-X
KnuckleDragger-X's picture

Fischer is going to be a keynote speaker at Jackson Hole. So expect a speech all sound and fury, signifying nothing since after all, we wouldn't want to confuse the algo's.....

Fri, 08/28/2015 - 11:51 | 6481833 SloMoe
SloMoe's picture

Fisch or cut bait...

Fri, 08/28/2015 - 11:54 | 6481847 SHEEPFUKKER
SHEEPFUKKER's picture

Get out the gaff

Fri, 08/28/2015 - 11:53 | 6481835 JustObserving
JustObserving's picture

Fuck the markets that just move on the words of corrupt bureaucrats. It proves beyond any doubt that free and fair US markets are more corrupt and controlled than their Chinese counterparts

Fri, 08/28/2015 - 11:54 | 6481845 HedgeAccordingly
HedgeAccordingly's picture

Correct. 

Fri, 08/28/2015 - 12:48 | 6482078 Chupacabra-322
Chupacabra-322's picture

@ Just, short term memory is just that short. And, these Pure Evil Criminals understand that concept. Remember this post?

Personally, I don't know why I continue to waste my time posting here. Based on the followimg post I posted yesterday.

The vast majority of ZH's especially the veterans here understand fully that there are no more "Bear or Bullish" markets. There's only Fascism & Ponzi.

"If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? The central bank’s ability to create money to support stock prices negates the price discovery function of the stock market."
-Dr. Paul Criag Roberts

"These questions came to mind when we learned that the central bank of Switzerland, the Swiss National Bank, purchased 3,300,000 shares of Apple stock in the first quarter of this year, adding 500,000 shares in the second quarter. Smart money would have been selling, not buying.

It turns out that the Swiss central bank, in addition to its Apple stock, holds very large equity positions, ranging from $250,000,000 to $637,000,000, in numerous US corporations — Exxon Mobil, Microsoft, Google, Johnson & Johnson, General Electric, Procter & Gamble, Verizon, AT&T, Pfizer, Chevron, Merck, Facebook, Pepsico, Coca Cola, Disney, Valeant, IBM, Gilead, Amazon."

-Dr. Paul Craig Roberts

Fri, 08/28/2015 - 11:52 | 6481837 buzzsaw99
buzzsaw99's picture

Just a little pin prick

There'll be no more aaaaaaaah!

But you may feel a little sick

Can you stand up?

I do believe it's working, good

That'll keep you going through the show

Come on, it's time to go...

[/comfortably bummed]

Fri, 08/28/2015 - 11:53 | 6481842 Tsar Pointless
Tsar Pointless's picture

I love the third data point. They don't understand market volatility? Aren't they supposed to be the great omnipotent, omniscient ones? And the Fed doesn't understand market volatility?

The blind, being led by the blinder.

Fri, 08/28/2015 - 12:00 | 6481879 El Oregonian
El Oregonian's picture

"The blind, being led by the Minder"

fixed.

Fri, 08/28/2015 - 12:01 | 6481888 BullyBearish
BullyBearish's picture

Their sole reason they exist is to CREATE market volatility in order to transfer more  money from the rigged "market" to their friends and their causes...how many lives and how much treasure has been wasted

Fri, 08/28/2015 - 11:55 | 6481851 RopeADope
RopeADope's picture

You can smell the aversion to being the weekend bagholder in today's market.

Fri, 08/28/2015 - 11:58 | 6481852 Dr. Engali
Dr. Engali's picture

Don't fully understand the market volatility my hairy white ass! It's because you assholes killed the market and true price discovery. The first hint of taking away the heroin is sending the "market" into convulsions as it tries to reach it's true value at about S&P 450.

Fri, 08/28/2015 - 12:00 | 6481878 SHEEPFUKKER
SHEEPFUKKER's picture

Has to hit 666 again before 450. 

Fri, 08/28/2015 - 12:33 | 6482019 ThroxxOfVron
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But it would.

5% probably would put the S&P @ 500 +/- a well topped pizza.

... & they know it.  

They probably drowned the guy in the mensroom that tried to show them his model of it last...

 

Fri, 08/28/2015 - 12:16 | 6481957 FreedomGuy
FreedomGuy's picture

Sometimes I want to slap the talking heads on TV so hard it makes their heads ring. If you've ever taken a hard shot you know what I mean. All of life stands still for a second.

Nowhere in economic news is there actually significant talk about companies, profits, growth prospects, etc. It is all talk about central banks, manipulated currencies, Fed actions, government debt, fake bond rates on top of fake economic numbers. One wrong word from the Fed can crash markets across the world. What China does or says is probably next. The Euro-bankers and the next Greek default come in farther down. 

It is all about government. When it is not about commerce, trade and who is well or poorly managed we are in trouble. We are engaged in calculated gambling, at best. It is gambling where we do not know the odds. For god's sake, at least at the roulette and craps tables I know the exact odds and the rules will not change while the dice are in the air. 

I look at my 401k (where I have limited choices) and I really have no clue where to be. I understand economics and markets. I just do not know what the next headline will be that can crash any investment I have. It is a guess when I move money. It is pure and simple a best guess and no matter how I guess, one moron in charge can tank anything I do. 

What market reports are now...is political reports, government reports, reports on the thoughts and possible actions of central planners...our economic rulers. Does that strike anyone as profoundly wrong?

Fri, 08/28/2015 - 13:31 | 6482280 Chupacabra-322
Chupacabra-322's picture

@ Dr.,

It's always been about the East Indian Company & oppium / herion .

Fri, 08/28/2015 - 11:55 | 6481853 Pantalone
Pantalone's picture

A guy that looks like Aaron Spelling and David Lo Pan's love child obfuscates with Lies Man and trillions hang in the balance.  Gotta love this country. 

Fri, 08/28/2015 - 12:02 | 6481889 Dr. Venkman
Dr. Venkman's picture

Lo Pan? Which Lo Pan? The little old basket case on wheels or the ten foot tall roadblock?

Fri, 08/28/2015 - 12:56 | 6482123 Squid Viscous
Squid Viscous's picture

looks more like Joan "Rivers" fucked a giant lizard,

Fri, 08/28/2015 - 11:55 | 6481854 Dr. Venkman
Dr. Venkman's picture

It's all over 'cept the crying.

 

until the next mouthpiece, that is.

Fri, 08/28/2015 - 11:55 | 6481857 RealityCheque
RealityCheque's picture

Most schizo week I can remember for some time. Shows the pitiful state of financial dependancy "the market" has gotten itself into.

Fri, 08/28/2015 - 11:58 | 6481871 bnbdnb
bnbdnb's picture

USDJPY Up, market down?

Ummm. whats happening?

Fri, 08/28/2015 - 12:00 | 6481882 Kaiser Sousa
Kaiser Sousa's picture

place order with Silver Doctors for 100 oz's on the 26th...

just was told order will not ship before 9/11/2015....

yeah, Silver be only worth $14 and change....

Fri, 08/28/2015 - 12:01 | 6481885 tok1
tok1's picture

The hike in rates makes sense with China selling is by raising rates
on short end it will create demand to offset China selling .

Fri, 08/28/2015 - 12:01 | 6481887 petar
petar's picture

All I hear is Data Driven.. and the data is really bad ! Basically they are afraid to do anything.

Fri, 08/28/2015 - 12:37 | 6481987 ThroxxOfVron
ThroxxOfVron's picture

All they have is an endless bag of Heroin -and a loaded gun.

They can shoot junk all day, and all weekend, and decide about the gun next week...

 

OR...

 

SO, you wanna shoot that shit and go walk around in that suit like ordinary people walk around in their skin, OR you wanna suck the gun and wake up in a hotter hell than the one you are in?

 

Fri, 08/28/2015 - 12:04 | 6481901 surfvin
surfvin's picture

I'd like to see how effective these fed governors would be with their mouths sutured shut.

Fri, 08/28/2015 - 15:54 | 6482900 markovchainey
markovchainey's picture

I like that idea surfvin.  Even better how about suturing their assholes shut and then force feeding them until they explode.  Now that would be a shit show I'd want to watch!

 

Fri, 08/28/2015 - 12:05 | 6481906 NDXTrader
NDXTrader's picture

Chances of a hike in September just increased from 0% to 0.1%. Not going to happen

Fri, 08/28/2015 - 12:07 | 6481917 Banker Buster
Banker Buster's picture

You idiots at the fed.  

China said: F-you, we aren't waiting for you mentally slow folks over there to figure out what you are going to do, we are making the first move.

Corner, allow me to reintroduce you to the Fed.

Fri, 08/28/2015 - 12:07 | 6481918 leeholsen12
leeholsen12's picture

 

"we dont fully understand market volatility"

 

how about just coming clean and admitting you dont know jack about anything. 6 years later and you still cant figure out if the economy can have a fraking 25 point raise.

 

 

 

Fri, 08/28/2015 - 12:12 | 6481946 petar
petar's picture

6 years of data and they are waiting for a the nonfarm next week :)

Fri, 08/28/2015 - 12:10 | 6481937 AlfredNeumann
AlfredNeumann's picture

Yeah, Dafne Schippers

Gold medal in womens 200 Meter final today.

Hup,Holland, Hup

https://www.youtube.com/watch?v=oLIOlxZdXD0

Fri, 08/28/2015 - 12:25 | 6481982 Seal
Seal's picture

the FED is incompetent

Fri, 08/28/2015 - 12:30 | 6482010 stant
stant's picture

Week of living dangerously

Fri, 08/28/2015 - 12:50 | 6482088 BurningBetty
BurningBetty's picture

How much more of these 180-degree turnarounds are investors willing to accept from these crooks who have NO CLUE WHATSOEVER to what they are doing before they refuse to jump on this roller coaster any more? Seriously? These fucktards are changing their minds twice a week and they expect market stability? Really? What a bunch of hypocrites! Someone please bitchslap the F out these clueless morons.

Fri, 08/28/2015 - 12:54 | 6482114 Squid Viscous
Squid Viscous's picture

seems dual citizens are never "dovish enough" ...

Fri, 08/28/2015 - 12:57 | 6482132 Dr Dooom
Dr Dooom's picture

It is not QE in reverse - it is operation twist in reverse!
The closing of private sector USD debt is counterd by
PBOC reducing its USD reserves, that is neutral. If those
reserves are placed in long term US bond or what not is a
compleatly different issue. There are no direct connections
between the two.

Fri, 08/28/2015 - 13:06 | 6482172 U4 eee aaa
U4 eee aaa's picture

Reading these stories this week I feel like I woke up in a monty python reality

Fri, 08/28/2015 - 14:08 | 6482485 farmboy
farmboy's picture

It will be in September but I cannot mention the year unfortunately.

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