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Futures Surge, Oil Rebounds As Fed Starts Historic Two-Day "Rate Hike" Meeting

Tyler Durden's picture




 

The start of the Fed's most eagerly awaited two-day policy meeting in years has finally arrived with the market expecting Yellen to announce the first 25 bps rate hike in 9 years tomorrow with nearly 80% probability, and so far US equity futures are enjoying a last minute relief rally, while emerging market stocks rose for the first day in ten after the longest losing run since June. Europe's Stoxx 600 Index has also rebounded from a five-day losing streak, the worst in over four months.

While yesterday stocks started off weak on the latest commodity carnage only to rebound following some truly ridiculous action, so far today's session has been a mirror image, with oil rebounding from February 2009 lows and WTI printing above $37 at last check, even as China closed just off its lows, the Nikkei tumbled led by a strong Yen, and the broader commodity complex once again sliding as can be seen in the Bloomberg Commodity Index, which tracks 22 materials, and which just dropped to the lowest since March 1999 despite the modest oil rebound which briefly took WTI above $37 but has failed to sustain the highs.

If yesterday was any indication, it would not be at all surprising to see today's early strength be wiped out and the S&P closes at its lows as the reality of an $800 reduction in overall liquidity finally hits market participants.

Somewhat surprisingly the dollar has fallen against most of its major 16 peers. Bloomberg believes that investors have had time to adjust to the prospect of higher U.S. interest rates since Oct. 28, when the Fed signaled a December move was likely. We are less sanguine about just what is priced in especially since all other central banks will continue to aggressively easy and devalue their own currencies, most notable case in point of course being China.

And while there is a long way to go before the week ends, including not only the Fed's first potential tightening in nearly a decade, but also the largest S&P option expiration on Friday in many years (as profiled before), which in this illiquid market means a lot of volatility is imminent, but for now here is where we stand:

  • S&P 500 futures up 0.9% to 2027
  • Stoxx 600 up 1.9% to 356
  • FTSE 100 up 1.7% to 5977
  • DAX up 2.3% to 10370
  • German 10Yr yield up 6bps to 0.63%
  • Italian 10Yr yield up 2bps to 1.66%
  • MSCI Asia Pacific down 0.7% to 127
  • US 10-yr yield up 2bps to 2.24%
  • Dollar Index down 0.16% to 97.45
  • WTI Crude futures up 0.6% to $36.51
  • Brent Futures up 1.2% to $38.39
  • Gold spot up less than 0.1% to $1,060
  • Silver spot up 0.3% to $13.72

A closer look at the markets, shows that Asian stocks saw choppy price action following the positive close on Wall St. as energy prices rebounded, while prospects of a looming Fed rate hike kept sentiment cautious. ASX 200 (-0.4%) initially traded with minor gains with the energy sector underpinned by the recovery in crude, while healthcare outperformed after Greencross shares soared 30% on buying interest for a 15% stake in Co. However, the index then shrugged-off gains to print a fresh 2-year low. Elsewhere, Chinese markets traded mixed before both the Hang Seng (-0.2%) and Shanghai Composite (-0.3%) closed in the red, while Nikkei 225 (-1.7%) underperformed despite JPY weakness with investors cautious ahead of the FOMC meeting. Finally 10yr JGBs traded higher as Japanese equities lag.

Top Asian News:

  • Apple Said to Open Secret Lab in Taiwan to Develop Displays: Engineers developing LCD, OLED technologies for devices
  • RBA Says Recent Data Positive, Repeats Scope to Ease Further: Australia’s central bank said low interest rates are supporting household spending and weaker exchange rate aiding local cos.
  • Chinese Backpedal From U.S. IPO Market as Mainland Deals Surge: Total value of U.S offerings declines 98% to $666m
  • Japan’s Giant Leveraged ETF Says Won’t Use Swaps as Fund Reopens: Fund starts taking new orders on Dec. 18 after 2- mo. halt
  • Shanghai’s Worst Smog in Two Years Spurs Production Limits: City orders schools to keep children indoors and factories to limit production
  • Murder-Free Days Underpin Property Boom in Top Pakistan City: Karachi has seen real estate prices rise 22% in past year
  • Indonesia Nov. Exports Fall 17.58% Y/y; Est. 11.5% Drop

European equities reside in a sea of green this morning (Euro Stoxx: 1.9%) as risk on sentiment returns after bearish sentiment dictated play yesterday. Equities have been lifted by energy names as sentiment is bolstered after the energy complex held onto yesterday's gains overnight and with WTI extended above the USD 36/bbl level throughout the morning. One of the notable movers in European hours has been Syngenta (+1.8%), who benefitted after source reports suggesting that ChemChina is set to make new bid for the Co. after talks, while Syngenta also remain in talks with Monsanto (MON).

Bunds edged lower throughout the session, moving below 158.00 level and then the 21 DMA line at 157.85 in the process, with the next major support coming in at the 50DMA line at 157.17.

Top European News:

  • ChemChina Chairman Said to Meet With Syngenta as Talks Progress: Syngenta also holding informal discussions with Monsanto
  • Rio CEO Says Iron Ore Rivals ‘Hanging On by Their Fingernails’: Iron ore industry on verge of unprecedented shake-out
  • VW’s Europe Market Share Declines Most Since Emissions Crisis: VW’s sales rose at less than one-third of market gain
  • UBM Agrees to Sell PR Newswire for $841 Million to Cision: Shareholders to get 245m pounds in special dividend
  • U.K. Inflation Rate Is Above Zero for First Time in Four Months
  • German ZEW Investor Confidence Gains After ECB Steps Up Stimulus

In FX, In terms of FX markets, a fairly busy morning has seen strength in EUR/SEK after the Riksbank elected to keep rates and their QE programme on hold, while UK CPI release saw a relatively muted reaction given that the data was mostly in line with expectation (Y/Y 0.10% vs. Exp. 0.10%), with participants also shrugging off the latest German ZEW survey (Expectations 16.10 vs. Exp. 15).

Separately, source reports suggesting that China stand prepared to act if the CNH were to see sharp falls and is ready to intervene if CNH/CNY spread widens to a destabilising effect has also seen some traction this morning. This comes as the continued softness in CNY against the USD in focus ahead of the FOMC rate decision later this week, with USD/CNY printing fresh multi year highs overnight. Of note, European names are touted as sellers in USD/CNH.

The energy complex has extended on gains seen ahead of yesterday's close and resides in positive territory heading into the North American crossover, with WTI Jan'16 futures in close proximity to the USD 37.00/bbl level, with the Brent counterpart close to USD 39.00/bbl. This comes ahead of the US API crude oil inventories later today, with last week's reading showing a drawdown of 1900k.

Elsewhere, gold has benefitted from a softer USD and has seen a mild rebound overnight, while copper prices traded lower amid cautiousness ahead of a possible hike in US rates, with iron ore futures gaining for a 3rd consecutive day as prices continue to bounce from last week's record lows, alongside a recovery in steel prices

On today's US calendar, we have the US CPI and Empire manufacturing releases, as well as Fonterra's GlobalDairyTrade auction.

Bulletin headline summary from RanSquawk and Bloomberg

  • European equities reside in a sea of green this morning (Euro Stoxx: 1.9%) as risk on sentiment returns after bearish sentiment dictated play yesterday
  • The energy complex has seen a bid today, with Brent and WTI both heading into US hours in positive territory
  • Today's highlights include US CPI and Empire manufacturing releases, API crude oil inventories as well as Fonterra's GlobalDairyTrade auction
  • Treasuries decline before Fed begins two-day meeting amid expectations it will raise rates for first time since 2006.
  • Fed policy makers risk making a mistake that will be difficult to correct if they raise interest rates on Wednesday, according to former U.S. Treasury Secretary Lawrence Summers and economist Nouriel Roubini
  • U.K. inflation edged back above zero in November for the first time in four months, a move that still leaves the rate a long way from the Bank of England’s target
  • Fidelity, Capital Group Cos., Waddell & Reed and Nuveen Investments said their high-income strategies don’t make them distressed credit funds and their holdings of CCC bonds are either selectively positioned or weighted toward better- quality debt within that tier
  • While Wall Street is having a 2007 flashback as a high- yield debt rout triggers nightmares of hard-to-trade assets plunging in value and funds halting redemptions, traders and analysts say this isn’t the making of another financial crisis
  • The SEC said Monday it was “on site” at Third Avenue and closely evaluating the wind-down process of the credit fund, which saw investors yank $734 million of its assets over the past four months
  • German investor confidence rose to 16.1 in December from 10.4 in November
  • Sovereign 10Y bond yields higher. Asian stocks mostly lower. European stocks and U.S. equity- index futures gain. Crude oil, gold higher; copper lower

US Event Calendar

  • 8:30am: Empire Manufacturing, Dec., est. -7 (prior -10.74)
  • 8:30am: CPI m/m, Nov., est. 0% (prior 0.2%)
    • CPI Ex Food and Energy m/m, Nov., est. 0.2% (prior 0.2%)
    • CPI y/y, Nov., est. 0.4% (prior 0.2%)
    • CPI Ex Food and Energy y/y, Nov., est. 2% (prior 1.9%)
    • CPI Index NSA, Nov., est. 237.204 (prior 237.838)
    • CPI Core Index SA, Nov., est. 244.088 (prior 243.698)
    • Real Avg Weekly Earnings y/y, Nov. (prior 2.1%, revised 2.4%)
  • 10:00am: NAHB Housing Market Index, Dec., est. 63 (prior 62)
  • 4:00pm: Net Long-term TIC Flows, Oct. (prior $33.6b); Total Net TIC Flows, Oct. (prior -$175.1b)

Central Banks

  • FOMC starts two-day policy meeting

Top Global News

  • Sumitomo Mitsui to Buy GE Japan Leasing Arm for $4.8b: Second deal between companies this year as GE sells assets
  • House Democrats Said to Be Open to Lifting U.S. Oil-Export Ban: Negotiations with Republicans center on various tradeoffs
  • Sanofi in Asset Swap Talks With Boehringer for $25b Deal: Boehringer’s consumer health assets, Sanofi’s Merial in deal
  • Hudson’s Bay Said to Near Deal to Buy Gilt Groupe for $250m: WSJ: Would combine online luxury retailer with Off 5th Business
  • Lumber Liquidators Surges After Critic Ends Bet Against Company: Short seller Whitney Tilson said he stopped betting against co.
  • Third Avenue Sought Internal Loan Approval Before Fund Collapsed: Fund-to-fund bridge lending helps firms avoid fire sales
  • Valeant Said to Cut Prices With Walgreens Distribution Pact: Valeant to lower prices by 10% on skin, eye product
  • NetApp May Make $1.2b Bid for SolidFire, CRN Says: Bid could be announced as soon as this week
  • Puerto Rico’s Governor Won’t Seek Re-Election in 2016: Won’t seek re-election so administration can focus on cutting debt
  • Xerox Rises After Carl Icahn Reports Increased Stake: Icahn reports 8.1% stake, up from 7.1%
  • Boeing Raises Qtrly Dividend 20%, Boosts Buyback to $14b: Replaces existing $12b repurchase program of which $5.25b remained

DB's Jim Reid concludes the overnight wrap

The tone in markets at the moment is certainly being dictated to a large degree by what’s going on in US HY. Sentiment took another knock yesterday on the back of the news of another fund (the third in recent days) announcing that it plans to liquidate its entire $900m portfolio and return money to investors. Nerves are also being tested increasingly by recent comments from some of the more high profile money managers around the asset class, the latest coming from Bill Gross who fired warning signs about US HY liquidity in particular in comments yesterday.

A late risk-on rally into the close yesterday masked what had been another largely weak day of price action for the bulk of risk assets. The S&P 500 finished +0.46% having been nearly 1% lower intraday, while CDX IG rebounded to finish 3.5bps tighter with the gains coming in the last hour of trading. Of particular focus was CDX HY which closed up +0.4pts (or in spread terms finished 9bps tighter) although that was after having dipped well over half a point lower mid way through the US session. The big US HY ETF’s (HYG and JNK) also pared some earlier steeper falls but still finished the session nearly 1% down on the day and have now closed lower on 10 out of the last 11 days. US HY energy spreads finished +43bps wider yesterday which means they are now +99bps wider over the last two days alone and a whopping +217bps wider in the month of December so far. That already far exceeds any month we have data for going back to the start of 2010. Chesapeake in particular is gaining plenty of attention now as it seeks a restructuring of its debt. Seen as something of a benchmark name in the US HY energy market, its 8-year bonds were down another 3.5pts yesterday and are now trading at just 27c. That’s after having traded north of 75c back in September.

The negative tone spiraling out of the US HY market spilled over into European credit yesterday, with Crossover closing +16bps wider and Main out nearly +4bps wider. Financials were hit hard also, with iTraxx sub-financials in particular nearly +9bps wider. In the cash market sentiment was weak but there was little in the way of panic. European stocks felt the full force of an early dip lower for Oil markets with bourses generally down 1.5-2% at the close. Just on Oil, the early afternoon saw both WTI and Brent hit fresh near 7-year lows after tumbling below $35 and $37 respectively (down 3% and 4%). Both turned around with the US session however, seemingly on the back of short-covering. WTI eventually finished up +1.94% and back above $36, while Brent finished more or less unchanged and slightly below $38.

It’s been a bit of a mixed start for markets across Asia this morning. Credit markets have followed the lead from that late rebound in the US with the iTraxx Asia currently 2bps tighter. It’s a bit of a weaker start for equities however where Japan in particular has seen steep declines with the Nikkei currently -1.53%. There are modest losses for bourses in China with the Shanghai Comp currently -0.31%, while the Hang Seng is flat. Both the Kospi and ASX are posting small losses, while the same can be said for Oil markets this morning too. The latest in the FX space has seen the PBoC set the Yuan fix lower for seventh consecutive session, this time by 0.1%.
Overnight the HouseView team have published their latest Infographic taking a look at the upcoming highly likely Fed rate hike tomorrow. In it they dig deeper into the mechanics of a 25bp hike and note that while the upper and lower limits will be moved to 50bps and 25bps respectively, the likely rise in the effective fed funds rate will closer to 20bps rather than 25bps, reflective of the premium to what will be the new reverse repo rate set equal to the lower limit.

Aside from the moves and headlines emerging from US HY yesterday it was relatively quiet elsewhere. Treasury yields reversed much of the sharp leg lower that we saw on Friday with 2y and 10y yields up +6.9bps and +9.5bps respectively and pretty much back to where we finished Thursday. With no data out in the US, Euro area industrial production was the only release of note with the October monthly increase of +0.6% mom coming in ahead of market expectations for +0.3%. Curiously ECB President Draghi was speaking yesterday at a speech in Italy, although his comments seemingly got overshadowed by price action in markets. The ECB President talked up his expectations of Euro area inflation hitting its target, saying specifically that ‘after the re-calibration of our instruments put in place this month by the Governing Council, we expect inflation will reach our objective without undue delay’. Draghi went on to reiterate that ‘within our mandate, there are no restrictions to our choice of which tools we use or how’.

Looking ahead now to what’s set to be a busier day for economic releases today. Kicking off the European session this morning we’ll have the November inflation numbers out of the UK with the CPI, RPI and PPI prints all expected. This will be followed by the Q3 employment numbers for the Euro area before we get the German ZEW survey. The BoE is also set to publish its Quarterly Bulleting around midday. Over in the US this afternoon the main focus will be on the November CPI numbers with current market expectations at 0.0% mom for the headline and +0.2% for the core which are in line with the view of our US economists. Also due out will be the December Empire manufacturing print, real average weekly earnings and finally the NAHB housing market index for December. Of course the two-day FOMC meeting begins today with the main event coming with its conclusion tomorrow.

 

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Tue, 12/15/2015 - 07:57 | 6925048 doctor10
doctor10's picture

so we get to find out whether or not the international nation asset-strippers think there is anything left worth grabbing from the USA before a Trump Presidency?

Tue, 12/15/2015 - 08:06 | 6925057 Haus-Targaryen
Haus-Targaryen's picture

I fail to understand what the Fed's credability has to do with anything.  It can create currency from thin air, it controlls interest rates.  Who gives a shit if it can raise rates or not ... who's gonna short the Fed? Anyone? 

Tue, 12/15/2015 - 08:15 | 6925078 Cognitive Dissonance
Cognitive Dissonance's picture

Some newbie in the comment section yesterday tried to tell me the Fed was no longer relevant because they had lost their credibility? Too funny.

Credible or not, they still own a printing press and that makes them dangerous and powerful. Like you said....who is gonna short the Fed.

Tue, 12/15/2015 - 08:28 | 6925098 Haus-Targaryen
Haus-Targaryen's picture

I am amazed the stuff I've read here on ZH in the past few years.  

The Fed will be all powerful until it has no credibility.  The idea that it can lose credibility is laughable.  One day it will be credible, the next day it won't and the USD will be dead.  

 

Tue, 12/15/2015 - 09:21 | 6925131 delete entry
delete entry's picture

The real question is do you think the new million, billion and trillion dollar bills will be artistic or hastily drawn monopoly looking bills?

Tue, 12/15/2015 - 09:35 | 6925231 Debeachesand Je...
Debeachesand Jerseyshores's picture

The real question is,will the new bills have politically correct images on them....

Tue, 12/15/2015 - 08:53 | 6925134 back to basics
back to basics's picture

So basically both of you guys believe that the FED can push the markets up forever despite of what the underlying economy is doing. THIS IS WHAT POSTERS MEAN ABOUT LOSING CREDIBILITY. The gap between what the markets are doing versus what is hapening in the organic economy becomes so wide and so distorted that they.......lose credibility. Then the jig is up. We are not far away from that moment in my view.

Tue, 12/15/2015 - 08:57 | 6925137 Haus-Targaryen
Haus-Targaryen's picture

I believe that the Fed can keep inflating numbers, making the average idiot thinking things are improving, despire the underlying economic weakness.

The smart money knows this shit is going south .. eventually .. but we haven't reached that point yet, thus many guys are still in the market long hoping to book gains off of others stupidity.  The smart money will be exiting the market and going into things that cannot be printed while proclaiming how great things are going.  

Just my opinion.  

Credability can only be lost by the Fed on a macro scale.   

Tue, 12/15/2015 - 10:24 | 6925422 cheech_wizard
cheech_wizard's picture

That moment passed. It was called QE1.

 

 

Tue, 12/15/2015 - 09:29 | 6925218 herkomilchen
herkomilchen's picture

Incredibly, the mainstream gives the Fed's statements credibility above and beyond just fearing its ability to print money.  That will start to dissolve, leaving only the fear of its power, which will still move markets.  The Fed's money printing and asset buying will always remain relevant to people using the dollar.

Tue, 12/15/2015 - 11:08 | 6925637 Antifaschistische
Antifaschistische's picture

they had me at "2 Day Rate-Hike"

I think's that's actually a subliminal omen.   That way, they don't even have to schedule a second meeting to lower the rate back to zero.

Tue, 12/15/2015 - 12:18 | 6926088 vollderlerby
vollderlerby's picture

OK, point taken, Fed almighty against all reason.  Sucks, but it is what is is.  

Until then, can ZH please change Yellen's picture?

Tue, 12/15/2015 - 09:54 | 6925150 TruthHunter
TruthHunter's picture

Even a psychopathic liar has credibility if he can bust your head.

The fact that they make adjustments in increments of 25 basis points

shows tthat   rate adjustments are for propaganda.

 

 If there were  no minimum rate change, it would be a non-even. By now,

the rate would already  be above 25 basis points.

 

China did something similar with their foreign exchange rates by a small stop

limit.

Tue, 12/15/2015 - 08:08 | 6925061 StackShinyStuff
StackShinyStuff's picture

I'm going to take a stab at tomorrow's headline:

 

Stocks soar on Fed rate hike

or

Stocks plummet on Fed rate hike

or

Stocks soar as Fed holds on rates

or

Stocks plummet as Fed holds on rates

Tue, 12/15/2015 - 08:12 | 6925065 Cognitive Dissonance
Cognitive Dissonance's picture

Stocks soar when Fed rate decision is delayed because entire board is sickened by bad sushi for lunch. Curiously all non voting board members were served bologna sandwiches and were spared.

Tue, 12/15/2015 - 08:14 | 6925075 StackShinyStuff
StackShinyStuff's picture

Going down on Yellen??  Sorry I had to put that in your heads guys...

Tue, 12/15/2015 - 08:16 | 6925080 Cognitive Dissonance
Cognitive Dissonance's picture

Some guys like hobbits. Just sayin'

/s

Tue, 12/15/2015 - 08:51 | 6925106 Dr. Spin
Dr. Spin's picture

I wonder if she has hairy feet???

With all the shenanigans being pulled, 25 basis points is in the noise.  It's significance is in all the hoopla that surrounds it.  Regardless of the rise, QE4 will have to happen.  I think the bwankers are just trying to make it to the end of 2016 and then they will pass the baton.  It will not most certainly change the trajectory of this collapse.

Butt you dear Cog, know full well that the money menagerie is just a symptom of the larger problem which is humanity falling into a behavioural sink.

Make this Christmas a doozy, 'cause it may be a while before we get to party hearty again,,,

Spoctor Din

Tue, 12/15/2015 - 09:25 | 6925208 herkomilchen
herkomilchen's picture

Nailed it.

Tue, 12/15/2015 - 11:32 | 6925806 Angel_Eyes
Angel_Eyes's picture

Check this legitimate ways to mak? money from home, working on your own time and being your own boss... Join the many successful people who have already used the system. Only reliable internet connection needed, no prior experience neccessary, that's why where are here. Start here... www.wallstreet34.com

Tue, 12/15/2015 - 08:01 | 6925052 de3de8
de3de8's picture

I know exactly what to do now

Tue, 12/15/2015 - 08:03 | 6925053 nmewn
nmewn's picture

Yaaayeee...its all fixed! Mr.Yellens taking away the punch bowl!

Wait a minute...

Tue, 12/15/2015 - 08:08 | 6925062 Cangaroo.TNT
Cangaroo.TNT's picture

Foot meet bullet.

Tue, 12/15/2015 - 08:15 | 6925079 nmewn
nmewn's picture

And amazingly, thats exactly what they're aiming at...lol...although they're a little squeamish at pulling the trigger.

Visually I can see it all now with Yellen, one eye shut tight, squinting & peaking down the sight with the other, hand trembling...

"This really REALLY gonna hurt!"...lmao!!!

Tue, 12/15/2015 - 08:18 | 6925086 Cognitive Dissonance
Cognitive Dissonance's picture

That's why she's gonna get someone else to pull the trigger and she'll just report the injury.

<OK Mrs Yellen, on the count of three. One.....bang!>

Tue, 12/15/2015 - 08:24 | 6925094 Cangaroo.TNT
Cangaroo.TNT's picture

Really?  I see Yellen with a Derringer tucked in her garter.  Close your eyes and take a walk with me.  She's wearing a long, black gown.  Drawing seductively on a cigarette in her left hand.  Her foot propped on an ottoman, she slowly hikes her gown revealing the full length of her thigh high stockings.  Your eyes transfixed by the fact that she's not wearing any panties, you don't notice as she subtly slides her hand, firmly grasps and draws her Derringer, then BLAM-O.  Blows off her big toe so she'll have to learn how to walk all over again. 

Tue, 12/15/2015 - 08:45 | 6925125 Cognitive Dissonance
Cognitive Dissonance's picture

OK! That will be just about enough out of you. I don't want those images in my head.

Tue, 12/15/2015 - 08:06 | 6925056 JailBanksters
JailBanksters's picture

go ahead, make my day !

A man's got know his limitations....

Do ya feel lucky punk, well do ya

 

 

 

 

Tue, 12/15/2015 - 10:07 | 6925347 J Jason Djfmam
J Jason Djfmam's picture

"This is a .44 Magnum Derringer, the most powerful crotch gun in the world."

Tue, 12/15/2015 - 08:18 | 6925082 The Pope
The Pope's picture

I can't wait until this sh## is overwith. I'm sick & tired of seeing article foto captions of what has to be the ugliest bitch in the world besides Hilary. Y'all know who I'm talking about. Shelly Winters in the Poseidon Adventure (with a Dutch Boy bowl cut).

Tue, 12/15/2015 - 09:17 | 6925179 Falling Down
Falling Down's picture

Shit, now that image willbe stuck in my head all fucking day.

Thanks a lot!

 

Tue, 12/15/2015 - 08:17 | 6925084 Falling Down
Falling Down's picture

How many goats will meet their demise this week?

Tue, 12/15/2015 - 08:24 | 6925090 Wow72
Wow72's picture

They continue to spread a "Virus of thought" that the FED can fix everything.. They simply cant and should know better.  GROW UP JANET... The Rich will get Richer and The Poor will continue to get Poorer... This is the strategy if you havent caught on yet and its working for them, but not for everyone else.  Now smile and bend over you WILL like it!

Tue, 12/15/2015 - 08:25 | 6925095 wmbz
wmbz's picture

I think the un-fed will kick the can once again.  We need more data Jack!

It's Christmas time and there are bounses to be paid!

Tue, 12/15/2015 - 08:28 | 6925099 overmedicatedun...
overmedicatedundersexed's picture

anything for a market headline..this add compaign of watch the fed they are reallly important, is as gaging as the new new Star wars shit movie..

wall st crime and abuse of money with the jewish fed will continue. rate hike my ass..congress audit the fed, oh wait, that will happen when corzine stands trial..

Tue, 12/15/2015 - 08:30 | 6925101 cn13
cn13's picture

If the FED raises interest rates then they will pay more money in interest to the "too big to fail" banks that have money parked at the FED.

It is just another scam.  The banksters borrow money from the FED, turn around and lend it back to the FED and the FED pays them interest on that money at ZERO risk.

Another backdoor bailout brought to you by the traitorous crooks that run the Federal Reserve.

We are so screwed.

Tue, 12/15/2015 - 08:37 | 6925108 overmedicatedun...
overmedicatedundersexed's picture

why are college loans non dischargeable?? why are credit card rates 12% and many much much higher??yet tbtf banks who charge 20% on 1 day past due ccard accounts get to borrow at zirp?

seems almost like some crime somewhere might be found, if congress would just do it's job..so much BS fed to the american public like a .25% rate hike is what we must worry about..free corzine.

Tue, 12/15/2015 - 08:49 | 6925130 wanderer9641
wanderer9641's picture

College loans are non dischargeable because the banks needed protection while lending money to people who never ever should have got a loan - when they become dischargeable then the risk is overwhelming and there will be no student loans....

Tue, 12/15/2015 - 09:06 | 6925152 overmedicatedun...
overmedicatedundersexed's picture

wanderer, in a sane banking environment of course,, but really the risk of default to a 20 something asset less, getto monkey, with a ged..is bad banking?? that is hilarity..non dischargeable or not it ain't gettin paid.

Tue, 12/15/2015 - 10:10 | 6925368 J Jason Djfmam
J Jason Djfmam's picture

Then college costs will plummet to where they oughta be.

Tue, 12/15/2015 - 09:21 | 6925190 GreatUncle
GreatUncle's picture

This is the game that has always been played. When TBTF occured did not mean they changed the way they played the game thery just carry on now with the FED covering their backs.

The whole economic mechanism is a farce where privilige get all they want whilst ordinary people get nothing and no government will prevent it.

Tue, 12/15/2015 - 08:42 | 6925117 Maestro Maestro
Maestro Maestro's picture

You,

you make me sick.

You say you're free and equal before the Law.

Yet,

You ARE NOT FREE to print your own money and buy whatever or whoever you want with it,

like the bankers.

You cannot make the government coerce the bankers to repay your debts (Bail-ins) nor force the government to give you free money (pay interest on money the bankers create out of thin air),

like the bankers can BACKED BY THE LAW.

You,

you make me sick.

Tue, 12/15/2015 - 09:55 | 6925246 Wow72
Wow72's picture

The Fed has rendered our Congress and our Senate NULL.. The Congress and Senate do not do anything meaningful anymore except attack the population with laws like TPP and let the Fed handle everything, which in-turn takes all the power from the people.  The Fed is a Fraud in my opinion.   They are stealing the peoples Freedom through force by using monetary policy as a weapon. 

Due process doesnt exist.  The Congress and Senates approval rating hovers around 10% and they are lucky when it gets over that... Its upside down. It means 80-90% think they SUCK! WTF are we doing letting these people rule us?  ITS LONG PAST TIME.

Tue, 12/15/2015 - 09:45 | 6925260 MFL8240
MFL8240's picture

This is disgraceful!  The ongoing games by this Tribe , fucking with the lifes on Billions is all I can take.  I detest hese people and now know why they were thrown out of every country they raped, which is all the inhabited!

Tue, 12/15/2015 - 10:14 | 6925370 El Hosel
El Hosel's picture

The all important ( maybe most important of all time! ) two day meeting to contemplate the quarter point rate hike that they have been contemplating for years..... It doesn't get any better than this boys and girls, but lets not split hairs.... this 1/4 will go down as the biggest bag of bullshit ever, regardless of the decision.

Tue, 12/15/2015 - 11:27 | 6925761 MasterControl
MasterControl's picture

Plank #5:

Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly. 

Tue, 12/15/2015 - 11:33 | 6925781 Barrack Chavez
Barrack Chavez's picture

There really needs to be a moratorium on saying every committee meeting (Fed or otherwise) is supposedly "historic"

99% of these "historic" meetings don't produce anything at all. This meeting is going to be 15 overpaid assholes eating expensive lunches for TWO days to decide to raise rates 25bp long after a more competent group would have. Plenty of Fed meetings have produced 25bp increases or more. Big fucking deal. ZeroHedge should be ashamed to be parroting CNBC hype.

Assuming the Fed actually manages to raise rates 25bp, who cares? No one reading ZH gets to borrow money at 0%. Not even Google or Apple or IBM or GE or Pfizer are borrowing at the Fed's imaginary rates.

Consumers are very lucky if we "only" pay 3% on a mortgage where FNMA has a lean on our house (which is worth more than FNMA, sans taxpayer guarantees)

There is nothing historic about the Fed's meeting. Dozens of more competent FOMC committees have raised rates by 25 or 50bp without blinking never mind all this moronic hype.

Lets call this meeting of morons what it is: way too timid, way too late, and playing catch up to rate changes most of the economy faced months (if not years) ago.

Fuck Bernanke. Fuck Yellen. Act like capitalists and stop expecting a bunch of dip-shit central economic planners are going to fix anything.

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