"We Frontloaded A Tremendous Market Rally" Former Fed President Admits, Warns "No Ammo Left"

Tyler Durden's picture

In perhaps the most shocking of mea culpas seen in modern financial history, former Dallas Fed head Richard Fisher unleashed some seriously uncomfortable truthiness during a 5-minute confessional interview on CNBC. While talking heads attempt to blame China for recent US market volatility, Fisher explains "It is not China," it is The Fed that is at fault: "What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect... and an uncomfortable digestive period is likely now." Simply put he concludes, there can't be much more accomodation, "The Fed is a giant weapon that has no ammunition left."

Must watch, when a shocked Simon Hobbs (at 5:10) is unforgettable: "Will The Fed come on and say 'we're sorry, we over-inflated the market' when it crashes?" We doubt it.

 

Here is CNBC's higher quality video, which for some reason seems to have edited out some of the more informative parts of the interview.

Fisher appears to be undertaking  a major "cover-your-ass" episosde, proclaiming that he was against QE3 which is what has forced "valuations to be very richly priced."

In my tenure at The Fed, every market participant was demanding we do more... "It was The Fed, The Fed, The Fed... in my opinion they got lazy.. and it is time to go back to fundamental analysis... and not just expect the tide to lift all boats... and as [The Fed] tide recedes we are going to see who is wearing a bathing suit and who is not"

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Gamma735's picture

The most honest of the Fed's regional presidents.  Although, he is former now.

Looney's picture

Hey, Fisher, you fucking cunt!

You’ve had more than enough chances to, at least ONCE, vote against this “frontloading”. So shut the fuck up and go hang yourself! </rant off>

Looney

Save_America1st's picture

We Front-loaded some folks...

Spigot's picture

With a fork lift, sharpened tongs set to about belly high and full speed ... it was a bit messy.

Bastiat's picture

"The Fed is a giant weapon"  couldn't agree more.  And the monetary ammo, debt money, is depleted uranium which leaves the environment poisoned indefinitely.

WTFRLY's picture

Now they are just playing with us, waiting for the right moment

aVileRat's picture

Loony, review the fed min's before going on a nerdrage tangent. Dallas voted against QE3 and voted for hikes more than once. Fisher is correct, all they have is QE & Twist. You can't twist at zero depth and you def. can't pull a BoJ and walkback all risk premiums out to 2018 so the world needs to return to normal, no matter how much that hurts. If the hurt blows up a few Sov's along the way, then so be it. Counterparty risk is a cost of business.

 

daveO's picture

''What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect...''

They've been stealing from the future since they were created, over 100 years ago. How will they steal in the future? I'd say bail-ins and a cash ban.

SuperRay's picture

"Fisher kills self after confessing that the consequences of his action will destroy millions of lives"

DetectiveStern's picture

I mostly use the phrase "giant weapon" when describing a person as a dick.

ParkAveFlasher's picture

I interpret "frontloading" and "uncomfortable digestive period" as euphemisms suggesting "cramming down" and "vomiting".

Spigot's picture

Some one is trying to front run the crash-cade.

The fuckers who made the problem are now telling everyone its not gonna work out so good.

I have always felt that the game was not to prevent a crash but to buy enough time for the 0.01% to reposition themselves to AGAIN benefit from it.

Seems they are now in position.

DaveyJones's picture

"no ammo left"

ironic description for a powder keg

two hoots's picture

Change:  congressionl oversight > congressional overlooked.

Fish Gone Bad's picture

Here is CNBC's higher quality video, which for some reason seems to have edited out some of the more informative parts of the interview.

I wonder what they feel like, not having a soul and all.  When they finally fail, I guess they can whore themselves out to someone else.

BuddyEffed's picture

Scary comments like the ones in the article have often been a false flag in the past, where the stated pessimism front runs a short covering rally. 

NoDebt's picture

If they're admitting it this early they know what's coming next.  Everybody out of the pool, Fischer just dropped a deuce in it.

Spigot's picture

Yeah, a nice big one, too.

Save_America1st's picture

and it's not a Baby Ruth either

ParkAveFlasher's picture

This economy is  more turd than pool!

tarsubil's picture

BUT! They can lower rates by 25 basis points!

daveO's picture

I'm sure they can/will buy Trillions of junk bonds, too.

Silver Bug's picture

The markets are setup for a historic crash that is going to make 2008 look like childs play. It's coming.

 

http://jimrickards.blogspot.ca/2016/01/rickards-on-helicopter-money-and-...

SpeakerFTD's picture

He did dissent.  7 times.  He was by far the most hawkish of Fed voting members in recent history.

http://www.dallasfed.org/news/speeches/fisher/2011/fs110927.cfm

http://snbchf.com/monetary-fiscal-policy/fed-its-fomc-composition/

 

 

 

daveO's picture

Hawkish FED member= a gangster with a heart of 'gold'.

stumbLebum's picture

Fisher's one of the smartest men in the room. You're one of the smartest men in the Target break room.

See the difference?

JLee2027's picture

If he was really smart he never would have voted for a bailout in 2008. He would have resigned in disgust.

SloMoe's picture

"The most honest of the Fed's regional presidents."

Kinda like the cleanest pair of dirty underwear.

Bay of Pigs's picture

Yeah, Dick the fuckan Hawk Fisher...lol

What bullshit. This guy has ZERO cred. He voted right along with all the other FED Doves plenty of times.

Early Retirement's picture

NOBODY sucked on Yellen's cash teat like Texas shale producers.

JRobby's picture

"We recruite only the best and brightest from the best schools and best connected families who's inbreeding is a proven source of great leadership material"

 

 

As I write this I have barricaded myself in the ward room against the 2nd Lieutenant who claims he is "God's little hang boy sent special to me" that fucking shave tail I can hear him out there whimpering and slobbering and the Colonel is jacking off in front of the window pointing to a Gemini Sex Skin. The Captain 's corpse hangs naked at the flagpole. I am the only sane man left on the he post. I know now when it is too late what we are up against

William S. Burroughs - "The Ticket that Exploded"

DaveyJones's picture

the most honest Clinton

detached.amusement's picture

kinda like the cleanest pair of shitstained underwear

Hitlery_4_Dictator's picture

A message to the elites of the world and in America. We are ready now for your final solution.  We can not be dumbed down any further, you completed your mission and I am willing to admit defeat. I feel strongly that I can speak for the majority of Americans. We love to be told what to do and actually applaud for our own destruction. Americans are full retard. I now fully understand why the elites call us "useless eaters" They are right and I was wrong. We deserve it all. We deserve to be slaves and herded like sheep. Thanks elites, you are much smarter and better than us. I eat crow. Do what thou will.

nailGun's picture

Dude. "Elite" is not the preferred nomenclature. "Greedy Crony Shitbag", please.

Hitlery_4_Dictator's picture

Yes I agree, euthanize us. You can keep the super uber debt slaves alive as they help you. But please take the awake ones away, they are a nuisance. I'm sure they are outnumbered 100 to 1 anyway, it will be an easy task.  

JRobby's picture

Euthanize the elite money changers and their agents. They are sick with the virus. Mad dogs are euthanized.

According to ancient legend the white race results from a nuclear explosion in what is now the Gobi desert some 30,000 years ago.  The civilization and techniques which made the explosion possible were wiped out.  The only survivors were slaves marginal to the area who had no knowledge of its science or techniques.  They became albinos as a result of radiation and scattered in different directions.  Some of them went into Persia northern India Greece and Turkey.  Others moved westward and settled in the caves of Europe.  The descendants of the cave-dwelling albinos are the present inhabitants of America and western Europe.  In these caves the white settlers contracted a virus passed down along their cursed generation that was to make them what they are today a hideous threat to life on this planet.  This virus this ancient parasite, is what Freud calls the unconscious spawned in the eaves of Europe on flesh already diseased from radiation.  Anyone descended from this line is basically different from those who have not had the cave experience and contracted this deadly sickness that lives in your blood and bones and nerves that lives where you used to live before your ancestors crawled into their filthy caves.  When they came out of the caves they couldn't mind their own business.  They had no business of their own to mind because they didn't belong to themselves any more.  They belonged to the virus.  They had to kill torture conquer enslave degrade as a mad dog has to bite.  At Hiroshima all was lost.  The metal sickness dormant 30,000 years stirring now in the blood and bones and bleached flesh.  

William S. Burroughs - "Exterminator! - Astronaut's Return"

 

Montani Semper Liberi's picture

 If it is posted on the internets, it must be true..., Occam's razor be damned!

This story sounds eerily similar to a story a buddy of mine told me while he was tripping his balls off in 1975. And then he got the metal sickness from listening to too much Black Sabbath.

Metal sickness is the worst kind.

jaxville's picture

Thanks for posting that.  I know now to not waste my time on his pulp fiction.

JRobby's picture

It is a work of fiction. So it is not meant to be either true or false but a reflection that may move and influence you or not.

Stick with the NYT Best Seller list and you should be as ok as you have been.

The Saint's picture

We can think the Fed for Obama's second term.  With out QE he would have already been just a footnote in our nation's history.

daveO's picture

DC is a banking puppet. Has been since Abraham Lincoln.

surf0766's picture

So he tells his buddies the reset is coming