"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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philosophers bone's picture

"Uncomfortable Digestive Period".  Well, that's accurate from the Predator's (Fed's) standpoint and it may have to regurgitate part of the meal.  But what do you call it from the Prey's (market investor's) perspective?  "Uncomfortable" doesn't quite capture it.

45North1's picture

"Uncomfortable Digestive Period".    Sounds and will be much like having a really big feed of tainted chicken. Following an uncomfortable period, usually it all comes back out (rapidly)...

Loanman26's picture

Actually, they do have some ammo.

One bullet Barney!


Conax's picture



"The Fed is a giant weapon that has no ammunition left."

They seem to have the ammo to do  as many drivebys as required to keep silver down and out.

Fuck off, Dick.

BadDog's picture

Ok, let's digest this.  Fisher wouldn't have been this truthful on MSM if TPTB had decided to maintain the present system.  This is giving the masses fair warning according to the cosmic rules they are forced play by.  I believe the decision was made in 2015 to pull it, and the long awaited reset is this year.

Ignorance is bliss's picture

What does this mean for all that trapped 401K and pension money? Are we talking ponzi ending digestion or just a generation of Americans that will work until they fall over into the snow?

I am Jobe's picture

Another Idiot from Texas 

Savyindallas's picture

We got our share  for sure  -Rick Gayboy Perry-even Ted Cruz(don't trust him as far as I can throw him)  -we've had scumbags like LBJ - please don't give us credit for the criminal Yankee Bush's  -but we also had Ron Paul. So it's not all bad  -and most other states are far worse. 

buzzsaw99's picture

don't flatter yourself. the dallas fed isn't a part of anything.

Cow's picture

"oops.  sorry"

Turdy Brown's picture

Too late dipshit.  These clowns ruined everything and now they have the gall to tell us that what they did was not right?  Really? Where were you ass clowns when people lost (and continue to lose) their jobs, homes, businesses, retirements, families, etc.?

These people singlehandedly ruined every single economy of every freaking country in the world, not to mention the untold civil and social disasters that their policies caused.

IMO, with all the death and destruction that they have caused, they will/should not be able to get away with what thay have done, so easily.

At the same time, sometimes I marvel at the apathy and ignorance that todays' humans are capable of.  Maybe it's wishful thinking on my part that there truly is justice in the world. 

conraddobler's picture

What they never discuss is that our financial system is a ponzi scheme by design and that lower birth rates in the developing world will necessitate that debt charts go vertical and it's born out in the actual data.

Fewer serfs equals more debt per serf to service the ponzi until the ponzi blows up as all ponzi's do when too few entrants enter.

That's why China is trying to build 1.3 billion new debt serfs to stick into the system, someone has to become the demand and take on debt to service this monster.

What they don't say is that this system is the only answer they all have because they are all the top of the ponzi scheme pyramid and it's the only tool they have to keep it going.

It's always what they DO NOT SAY that matters.

There are no answers for shrinking birth rates in the Western world and debt levels of this magnitude.  It's unpossible to fix this and there are also no solutions for the rapid rate at which the general human unit is losing productive power to compete in the new world and pay for it's own existence.

Here in the developed world that equals a lifestyle chart that in general trends down, in most of the rest of the world that equals increasingly more frequent forays into starvation.

Asshats one and all.

Lady Jessica's picture

Careful.  A sane person might read this and think "well that means global Debt Jubilee is inevitable".

Hohum's picture

To the former great guard of the St Louis Cardinals:

Lower birth rates has nothing to do with the necessity of debt.  Rather, a lack of net energy does.

screw face's picture


Moar plunge control bitchez!

herkomilchen's picture

Interesting honesty, but in their eyes no admission of guilt.  We should remember they think frontloading to create a "wealth effect" is a good thing.  "Stimulates demand.  Stimulates the economy.  Just needs to be digested.  Just done in the right measure."

To us, this is a blatant admission of market manipulation and wholesale theft.  To them, they like to boast about doing this.

conraddobler's picture

Their worldview of themselves on top and the rest of us laboring under their directions is evident in all their actions because that's exactlyhow they see it.

They see this as a favor to us because without them directing us then we'd be lawless heathens destroying ourselves.  It's much the same thought process that a farmer has about his team of mules.

They are just too stupid to exist well without the farmer.

We seem to take them up on this bargin as well so maybe they are onto something?

Dg4884's picture

He will be reported "missing" by sundown.

Winston Churchill's picture

Unfortunate drowning while scuba diving in his bath.

MasterOfTheMultiverse's picture

Fed was leveraged 77:1 in 2014. In comparison, Lehman was leveraged 33:1 just before it collapsed. Lehman couldn't print its own capital though...


the grateful unemployed's picture

and what happens to all GSEs (like Fannie and Freddie) they become toxic waste dumps for bad papar, then they get shuttered, or Chernobyl'd, cemented over, and the bad assets are magically transformed into good assets and transfered to another GSE (the fed bought MBS, who will buy the Fed?) you're all thinking there is no OTHER fed, but there is, its called the IMF, and it will issue bonds in SDRs based on dollars and other currencies. should the IMF fail in its role, the USG will place the Feds assets off-balance sheet, which would raise an outcry like the Iraq war, and you remember how soon that was resolved (and how well) but it continued without pause until today as we speak. the Fed is destined to destroy itself, but its all in the grand plan of things.

two hoots's picture

Repeal the Federal Reserve Act and prosecute, starting at the top.  Imagine what plea bargaining come out of that?

moonmac's picture

Cheap Fast Food Wars are heating up. We're deflating our way back down to 99 cent Double Stacks! I'm lovin' it!



LooseLee's picture

Do I smell a class-action for FRAUD?

Maybe the 'shorts' have a case, here, and the BULLTARD 'longs' will be clawed back.

I wouldn't  bet on it but stranger things have happened.

Maybe a new president will look into this?

We can only hope for JUSTICE and practice it in our daily lives.

STARVE THE BEAST and death to the worshippers of FRAUD (You know who you are; and you're on the 'list')

Boxed Merlot's picture

Do I smell a class-action for FRAUD?...


Of course you do.  And for whoever successfully attacks the fed and actually shows that far from being out of ammo, (they in fact are fully armed with the ownership papers of all the companies stocks they've been buying for the last 7-8 years), will find their portrait forever enshrined on the next fed's fiat a la Jackson, Lincoln, Grant, McKinley, Kennedy, Eisenhower, etc.


As is so often noted it's become a battle cry, "wash, rinse, repeat".

Raging Debate's picture

Well, I for one am glad to see him come out and say this. If your a watcher of MSNBC you have just been told you will see 10%-20% correction. It will be the latter figure.

If you stay in at this point, I really will feel no sympathy. As an innovator, this harsh correction will affect me but have some hedges and live within means. It is good news it is going to clear, we need a new and very big round of true innovation and the Feds actions have just delayed market reorganization, suspending the business cycle and just making the rich richer, monopolies and now rackets, etc.

truthalwayswinsout's picture

These guys let their banker buddies did the trick on us in 2008 and then no one went to jail. They then loaned their banker buddies free money on the backs of real savers so the bankers can bet it all on commodities.

Where are commodities after the big run up? They are all off 50% or more.

When your credit cards don't work, and the system collapses, and all the banks are bankrupt and they bail in their banker buddies with our money maybe it would be a good idea to round these people and make them really pay for the criminals they are. The Chinese even charge the families for the bullets.

atthelake's picture

They could give every citizen $100,000 but they won't.

silverer's picture

They're too used to being on the other end.

Joebloinvestor's picture

Anybody else FUCKING SICK & TIRED of these assholes and their "mea cupas".

Not one of them (while in their official capacity) calls the horeshit for what it is.

Political opportunism.

Grandad Grumps's picture

The most important learning from all of this is to "wake up" from the sleepy dream world the so called leaders of the world have endeavored to keep you in.

Cast aside everything you know and assume and look at things afresh.

All of these narratives are just that and really do not hold together well when exposed to the light of day.

vote_libertarian_party's picture

Dude, if you can print money with no restrictions there is always ammo left.


The carnage that follows may be nasty...but they never worry about that.

youngman's picture

Yes it was an amazing talk.....but he knew it all along....where was he when it was going on....where are they today....

silverer's picture

Yes, the best blurbs are from "Former 'whatevers'".  They don't want to step on their own paychecks while serving the position.  But you are correct in pointing out something very important.  When they could do something, they did nothing.  Quite an unaccomplishment in their career.

the grateful unemployed's picture

why would the Fed want to backload a rally? i mean Fisher wants them to put dollars in a bank on the moon, while the Fed already has charter banks on Mars, he just doesn't get it

Pumpkin's picture

Is manipulated and front loaded the same thing.

Bill of Rights's picture

Bookmark it S&P 2500 by years end...way to many shills talking the market down.

atlasRocked's picture

"Atlas Shouts" pointed out this folly 2 years ago.  It is now the #2 Rated book out of 7,096 books on Amazon, for Money and Monetary Policy - thanks, readers.



amanfromMars's picture


and as [The Fed] tide recedes we are going to see who is wearing a bathing suit and who is not"


Here hoping for heavenly WeenyBikini bodies by the hordes:-)


silverer's picture

For all the ZH doubters about a major issue ahead, now's your chance to post a modified opinion.

atthelake's picture

Odious, Fraudulent debt does not need to be paid back.

cn13's picture

Fisher has a dual U.S./Israeli citizenship.

Can anyone give me an honest answer as to why an Israeli Jew has control of the U.S. printing press?

Early Retirement's picture
Early Retirement (not verified) cn13 Jan 5, 2016 12:33 PM

Different "Fisher" Cletus. (Google "Fischer")

lasvegaspersona's picture

at the end of the digestive process we get...come on...some one knows the answer...Johnny?...anyone...Sally...that's right Sally ....a monstrous pile of seetheing flapdoodle the size of a dinosaur.

Very good class, tomorrow we study what the Fed can really do when things get really, really bad. Study chapter 666 on 'bending and breaking rules'. The theory of wingless flight will also be on the test. Dropping large bills from small aircraft causes too much dispersion. That is why we prefer helicopters...to ensure the money goes to the right place first.

Cthonic's picture

Consider this exhibit #1 in "The People vs The Federal Reserve System".  Plutocratic phucks.

besnook's picture

an investor must really must be careful when all the official pundits and the usual suspects are calling for a market correction. they are never right.

Hamm Jamm's picture

More rats bailing off the ship !    Rats rats and more RATS


conraddobler's picture

So if you were short we are in fact the ones who SCREWED YOU!



The birth of BTFD.