Former Fed President: "We Injected Cocaine And Heroin Into The System To Create A Wealth Effect"

Tyler Durden's picture

Just two months ago, former Fed President Dick Fisher admitted that "The Fed front-loaded an enormous market rally in order to create a wealth effect." Today he is back, taking a victory lap onthe 7th anniversary of the crisis lows by explaining, rather stunningly, to CNBC that "we injected cocaine and heroin into the system" to enable a wealth effect (that he admits did not work, despite its success in raising asset prices), and "now we are maintaining it with ritalin." Fisher also confirmed his previous warning that "The Fed is a giant weapon that has no ammunition left."


Fisher explains how The Fed achieved its goals... but admits that didn't really fix anything...


And here is CNBC's higher quality (edited) version where the blame for everything is pinned on "feckless fiscal authorities..."


Once again, 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."

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Father Thyme's picture
Father Thyme (not verified) Mar 9, 2016 1:20 PM

I can't feel my face. -Bob Goldthwait  :)

max2205's picture

 Fed President Dick Fisher


fuck you

JRobby's picture

He should avoid boats, airplanes, jogging, bicycling......shit, just stay in the house DICK and help Mishkin "update his economics textbook"

El Oregonian's picture

Make him the wood tender/gatherer for the tabernacle.

Anasteus's picture

I really like all these 'heroes' who suddenly reveal the 'shocking' truth with all the pomposity once retired. During their term they were submissively shutting up, making up excuses and cover-ups and profiting from the system as much as possible. And after they retire and the career is gone, all of a sudden, new things come out just to be recognized as completely different. But the truth is he was big part of the mess. Instead of taking responsibility and admitting his part of failure, he positions himself into the role of 'herald'.


TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Father Thyme Mar 9, 2016 1:34 PM

I bet he wouldn't be making jokes like this if we held these idiots responsible for their actions and they were being lined up in a court.  Its all a big joke because they can destroy the Middle Class and US Currency with no reprocutions.  With any luck, in a few years we will be starting up the trials on these guys and they can use this video in court as "Exhibit A"

Silver Bug's picture

He's got that right, its fixed essentially nothing. It simply papered over the problem and those problems are starting to resurface once again.

Babaloo's picture

He's wrong when he says the Fed has no ammunition left.  It's impossible to know if more QE or negative rates would have any kind of effect, but the Fed has plenty of ammunition left.

Temporalist's picture

The Fed is a giant razor edged dildo raping the world's middle class.

ShorTed's picture

on behalf of the middle class, "ouch"

Bill of Rights's picture

"Inject " insert Anal-ease reference....

Lady Jessica's picture

In retrospect this was all pretty obvious.

Drastic open market purchases (renamed for this crisis "QE") were used by the Fed during, and leading up to, the 30's depression.

And the outcome:  big fat reserves that lay fallow.

The only difference now?  The American economy's profound dependance on the level of its stock markets and the willingness of its big banks to feed into it.

KnuckleDragger-X's picture

It was more or less inevitable and the entire world economy is trapped in a race to see who goes over the cliff first. It can't go on, but it can't be stopped......

Lady Jessica's picture

Japan looks like a good candidate for the first to go.

KnuckleDragger-X's picture

Yep, depending on how much longer the Fed needs them for a cut-out........

Gab Timov's picture

probably literally, as well as figuratively.


does the FED fund drug trafficking?

LawsofPhysics's picture

"Full faith and credit"


tick tock motherfuckers...

Lumberjack's picture




Would you loan somebody something if they said that to you?

kliguy38's picture

Oh they have weapons......they have no intention of using them. They are now going to sit back and collect the assets on the cheap as they flush liquidity...."We never saw this coming"

FreeShitter's picture

At least he's kind enough to let us plebes know.......if trump (if selected), doesnt throw all these motherfuckers into the woodchipper, fuck him too.

fiatmadness's picture

If JFK wasn't allowed to go the distance, do you really think Trump's life expectancy as president would be that high??

brada1013567's picture

Janet "Shorty" Yellen and the CB cartel.

P Rankmug's picture

So, the Fed is Charlie Sheen, infected with monetary AIDS?  Sounds about right.



new game's picture

the twitch is back, that feeling of dispair, so bad that another fix is the only thing that matters. water food sex are only a second thought. death is an option, but maor moar or anything that looks like moar. the cotton in the spoon can only be reheated and injected so many tymes. i want moar now!

FreeShitter's picture

You want moar? Draghi is up to bat tomorrow.

Budnacho's picture

Comments like these Im sure will lift the market this afternoon....

Taffy Lewis's picture

Reminds me of a Vlad the Impaler story.

He and his men were having an outdoor picnic, and one of his guys complained that is was difficult to eat with all of the stench emanating from the rotting bodies that were impaled on stakes all over the countryside.

So Vlad said, "Okay, I'll put you above the stench so you won't have to smell it" and his men promptly put him on top of the tallest pole.

Same thing should happen to Fisher.

aliki's picture

give him credit tho. when asked about negative interest rates, he did slam the door (from his perspective, dick as no power now, not that he had much when he was on the board). he said no-way, not happening. talked about money markets & dollar funding; how negative rates would absolutely blow them up. also was the first person on CNBC to say simply "could you imagine the blow-back from stealing from peoples bank accounts?!"

no-fan of the fed am i but dick at least understands this is bullshit & he has tried to rely that to us, all-be-it in read-between-the-line code.

Jayda1850's picture

Fuck Dick Fisher! this cocksucker admits on live TV that they "injected cocaine and heroin into the system"(i.e. FUCKING POISONED IT!!!) and then says, "we had a hell of a rally." Like saying, "Yeh we got so fucked up and we are higher than a kite, but fuck it. We're not the ones to deal with the hangover." All this motherfucker is doing is trying to cover his ass. Well let me tell you, you POS Fisher, no word you could fucking utter will save you from the destruction your ilk caused. My only hope is to one day be able to spit on your fucking grave.

I woke up's picture

I've had to keep my mouth shut around the office about all this going on when the market was going up.  I'll have to continue to keep my mouth shut after it all tanks.

nakki's picture

Unfortunately, Speedball's didn't work for John Belushi and it won't work for equities.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Mar 9, 2016 1:31 PM

"I bought some cocaine if you snortin, 
She became a vacuum, Put it on my dick like carpet,
Suck the white off, white chocolate"

-Lil Wayne

Moustache Rides's picture

The fact that you can quote that is ridiculous.


Thank god for free verse right.

PerkyPooper's picture

ES futures gonna be stuck here all day waiting for the Draghi "woteva it takes" show?

Dsarango's picture

WTF? haha So does this mean that the US got other countries to this type of stimulus so they could join the party? No peer pressure here right? 


Not very long ago I read this one Rehab for the world Economy! See the central Bankers in a poster of Trainspotting! The article also has very good commentary about the irregularities of Central Banking.



PerkyPooper's picture

that video snippet is bait to get retails angry and short, so the bigs can squeeze

- - - - - -'s picture
- - - - - - (not verified) Mar 9, 2016 1:38 PM

this guy is definetly consuming cocaine


Given the Wall Street culture for illicit drugs, and illicit drug fueled Investment Banker largesse, I, for one, am not surprised that the former Fed incompetent is drawing an iatrogenic causal link to the CB in terms of who caused the addiction to Cocaine & Heroin in the first place. Behaviourally, what he is saying is extremely important for research on drug influence on central banking process, and policy.


Cocaine n' hookers, bitches!

Pabloallen's picture

You should be shot for watching CNBC.


gregga777's picture

"…feckless fiscal authorities…"

No. What we have are criminal politicians making laws that protect privileged banking and Con Street financial system criminals.

Herdee's picture

These are the types of idiots that are ruining The United States.What are they on?Acid?

ChargingHandle's picture

I am missing the humor here pal.

hangemhigh77's picture

At this point the real question is WHY aren't we stringing this ASSHOLE up?

FreeShitter's picture

Because most americans are pussies. Way too soft nowadays, plus its going to take a serious movement to get real action moving again.

hangemhigh77's picture

Ummmmm, let me offer my solution here, HANG THIS MOTHERFUCKER. Then hang all his friends and hang all traitors. Anyone that has taken an oath to the constitution hang them for treason. Including cops.

decon's picture

Careful there, Robespierre!