"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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Spigot's picture

Absolutely, just like Greenspan going back to hawking gold.

JLee2027's picture

Amazing how "honest" they get after retirement.

nope-1004's picture

No ammunition left?

What ammunition did the Fed have in the first place?  Don't answer, I will:

Corruption, debauchery, insider trading, crony capitalism, Forex currency wars, and entitlement backed by the MIC.  Your "truthiness" was but a mild effort at warning the masses of what's coming, without admitting the full extent of your white-collar criminality.

When you hang, I'll applaud you.  Till then, STFU.



upWising's picture

We HANGED some folks.  I think you want to make it clear that "the folks" swining in front of us are PERSONS.

The verb hang (meaning to fasten or suspend from above) has two past tenses--hanged and hung.

Unless you're talking about a person who has been executed ("hanged to death"), you probably want to use hung.

OldPhart's picture

When talking about personal attributes, Hung, works, too.


OT...Can you imagine an insurance company that wires your settlement twice, a week apart?  Just happened, over $123k.  Wonder if they'll realize it.

JLee2027's picture

Black English is clearly hung.

OldPhart's picture

This is the result of a frozen system.  Dupe.

Tall Tom's picture

They DID hung some folks. Those people with those big ballz, fuckin' over the peeps, are well hung, dontcha know? 


Now dey hazta be with them big ballz as theyz thinks dat deyz are gonna getz away with dis shit..

DaveyJones's picture

"white collar crime"

the judicial oxymoron

Lady Jessica's picture

MSM finally coming around to the narrative that the Fed fucked up?  One can only hope.

PS what kind of Keynesian foulness is this "wealth effect" BS? 

upWising's picture

".....the Fed fucked up?" you so indelicately ask.

Gentle Commenter: Given that this Forum is one where manners, courtesy, and restrained speech are the norm, your rather uncouth use of a "ghetto term for fornication" when referring to the August and Enlightened Policies of one of America's Great Institutions seems rather Out Of Place, a wee bit excessive.

You would be wise to reframe your argument in polite and precise terms so that the Great Minds which populate this Elevated Digital Space might better understand your arguments.

The American People are not interested in having their Faith In The System undermined by crude talk and disparaging sexual innuendo about the plumbing and genetalia of Mr. Yellen.

Mark Mywords's picture
Mark Mywords (not verified) Jan 5, 2016 11:29 AM

Mission Accomplished!

SloMoe's picture

When the tide recedes, I certainly hope Yellen has a bathing suit on.

SoilMyselfRotten's picture

Please don't be so unspecific, you ok with a 2-piece?

ejmoosa's picture

I'm hoping she goes out with the tide and we never see her again...


Salsa Verde's picture

Watch out for a flurry of promotions for unqualified personnel followed by executive staff leaving the country.

CHoward's picture

I see a nice shiny nail gun in his future.

One And Only's picture

This was one of those "holy shit" moments.

My head slowly cocked toward the t.v like a confused dog. And then I realized he said what I thought he said and I had to make sure it was who I thought it was.

Spigot's picture

So, ya gotta wonder why these ass hats are leaving their roles, and what they expect to accomplish by bad mouthing their former Frankenstein, hmmm?

ejmoosa's picture

The truth is out there...

Unfortunately, there are too few of us that undestand, and even fewer that give a damn...

sandhillexit's picture

eh, he's just tryiing to justify his salary at Barclays.  So we know which way they sit.  But timing is everything.  It gets expensive if they market doesn't panic on time.  

I think it's quaint that he thinks the FED is paying attention to the US.  The other Fischer is too busy running sanctions ag Russia and Iran to bother with US economic data.  We have a weaponized FED.  Just waiting for them to start sporting epaulettes and medals, like the Surgeon General and the Attorney General.  

Lady Jessica's picture

"time to go back to fundamental analysis"

Sorry, the Rubicon's been crossed.


The Sovietized unicorn economy.

dirtscratcher's picture

Yeah, now that he's out he has his "come to Jesus moment". Why didn't he come clean while he was still a player? Better question: "How come guys like him never come into contact with nail guns?"

Chuckster's picture

Why can't these people do their job when they are in office?  Did they O.D. on show and tell in the first grade?

Dr. Engali's picture

Ah shut the fuck up Fisher. When shit started going south in 2011 you fell right into line and jumped on the QE band wagon.

Janet Shalom Bernanke's picture

What the Fed did was/is criminal.  and and such, should be punished by time in prison.

How is it that a collective of such dumbasses are given control over the entire U.S. e-con-o-me?

How can a country allow this to have happened, and to continue to allow these idiots to ruin this nation?  and why is it that the only elected leaders to call the Fed to account is Rand Paul and Ron Paul?



Global Hunter's picture

They have a new exotic dancing whore as a host asking questions on CNBC since last time I saw it.  That faggot Hobbs is still there though.

Turdy Brown's picture

(C)overing (Y)our (A)ss!

i_call_you_my_base's picture

They are trying to crash it now. Need to enable more QE. This guy didn't just have a moment of honesty.

ChargingHandle's picture

Well isn't that convenient. All his transgressions have now been abolished and he will not live long enough to witness  our children and their children pay the tab. What joker as clown.


Early Retirement's picture
Early Retirement (not verified) Jan 5, 2016 11:34 AM

Guessing his name is on a "Do Not Show"  list at Bloomberg now. 

cpnscarlet's picture

Here's an old man trying to get into heaven.

One And Only's picture

If there are any Republican candidates or people who know them this clip is a tacit admission that the entire economic "recovery" under Obama was just from printed money by the Fed and had nothing to do with his policies.

gmak's picture

What does he possibly have to gain by confessing this now? Follow the money. I'll bet he and his cronies are now massively short.

wmbz's picture

Another ex-un-fed asshole that can kiss my ass. These bastards all know what the hell they are doing when they are doing it.

Once gone they pop up like some kind of do-gooder.

Fuck off Fisher!

Soul Glow's picture

Exactly.  He always acted like the guy with the white hat.  What a joke.  What's he doing now?  Working for Barclays, the last Rothchild owned bank I might add.

*Sidenote - The Rothchilds have reportedly "sold" all their banks.  Barclays was the last to be sold.  It was sold a couple decades ago..

*Personal note - I am sure they have no influence in banking or Mr Fisher.  #Sarcasm

More on Richard Fisher -

Richard Fisher, the former president of the Federal Reserve Bank of Dallas, has returned to his investment banking roots.  Nearly four months after he retired as president of the regional Fed bank, he has been named senior advisor at Barclays, the investment bank confirmed.  Fisher began his career with the Wall Street investment firm of Brown Brothers Harriman & Co. in the 1970s and later started his own investment advisory firm and a separate funds management firm. He also was  executive assistant to the U.S. Treasury secretary during the Carter administration and a deputy U.S. trade representative.

Temporalist's picture

Those CNBS cunts should be banned from all forms of communication including morse code, viewmasters and cans with string.

aliki's picture

stephen roche blew the entire fed "policy" arguement apart this morning in a CNBC interview. he cited ben bernanke's book beginning during the financial crisis.  what bernanke conveniently left out was how we got there. ie. he & greenspan leaving rates too lo for too long + fair family act of 1992 stuffing people who couldn't afford mortgages house into mortgages which would float with rates + raising rates 6 times between 2004-2006 = BOOM. so basically, they created a catastrophie in order to write books so they could look like heros.

"the courage to print".

Soul Glow's picture


Lady Jessica's picture

Why does it seem like no one's noticed?

the grateful unemployed's picture

the rate hike is QE lite, i can do a back of the napkin thing which says the interest the Fed remitted to Treasury suggests a couple trillion in unmonetized bonds sitting on the fed balance sheet, does it really count as a (deferred) asset? probably not since it was never monetized to the primary dealers. so the interest that the banks get from the fed for taking RRPO (105B at the onset but the last figure suggests 400B) minus the interest those bonds earn while the fed holds them in custody?  is what might constitute that number the Fed remits. this will raise rates across the board, the real question is can they front load another rally?

Enceladus's picture

I love when a conspiracy therorist sneaks on to CNBC. I wonder who booked that whack job.

s/ for the morons

Early Retirement's picture
Early Retirement (not verified) Enceladus Jan 5, 2016 11:40 AM

Yeah- what would he know?



ali-ali-al-qomfri's picture

I was agianst QE3 before I was for QE4.

the grateful unemployed's picture

you think they could upgrade from that tincan microphone

the grateful unemployed's picture

shoot the messenger, i am surprised they didnt cut to commercial

the grateful unemployed's picture

fisher is the guy who wanted the fed to drain some reserves, which would be consistent with a rate hike, but he hasnt seen his way on anything, he is looking like the odd man out and sounding like it too.. i wonder how long before they start uninviting him to meetings