Janet Yellen Wants To Deflate the Stock Bubble

Phoenix Capital Research's picture

Today the Fed hiked rates for the third time in eleven years.

In so doing it has confirmed what many have long suspected: that the only thing that matters to the Fed is stock market levels.

The Fed certainly doesn’t care about GDP growth. If it did, it would be evident that now is NOT the time to be hiking rates.

Let’s take a look.

Last quarter’s GDP growth was abysmal at 1.8%. Since that time the Fed’s own GDP model has collapsed to just 0.9%. Look at the below chart and tell me you think it warrants two rate hikes in a three month period. We’re talking about a 2.5% GDP collapse in the space of six weeks.

By the way, this is a rosy projection. If you run 1Q17 GDP numbers using actual consumption instead of projection consumption then GDP growth is non-existent or 0%.

Moreover, a historical perspective only adds evidence that the Fed isn’t looking at GDP numbers when deciding to hike rates. The 4Q15 rate hike makes sense… but 4Q16 and now again in 1Q17?!  Why would the Fed want to hike twice in three months during sub-2% GDP growth!?

The simply answer is stock prices. When you look at a chart of the S&P 500, the 4Q15 hike makes sense. So does the decision to walk back additional hikes in 2016 (since the markets collapsed).

Now that the markets are once again roaring, the Fed has decided it’s time to start hiking again. And so it’s hiked twice in three months to attempt to deflate the stock market bubble.

The only problem with this is that stock bubbles don’t deflate easily. Usually they collapse in a big way. This time will be no different. We’ve got air pockets all the way down to 2,125 on the S&P 500.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 99 copies of this report for FREE to the public.

To pick up yours, swing by:


Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research



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Pitchman's picture

Many both within and beyond America's borders labor under the delusion that US policy is determined by the nation's elected representatives amid a careful balancing act between the judicial, legislative, and executive branches of government. In reality, the inner workings of US policy resemble nothing of the sort.


Exposing the Real Deep State


undercover brother's picture

Yellen could have easily walked the market lower back in Feb 2016 when the S&P closed in on 1800.  Instead, she kept her lead foot on the gas and sent the in the PPT at any sign of weakness so there would be a rally into election season, thus favoring the incumbant or their political party's candidate.  She also had a chance in June 2016 as well, but she didn't take it.  Now, not only is she claiming there is a "bubble", but she wants to pop it.   Can her politicization of monetary policy and the stock market be any more obvious? 

All Risk No Reward's picture

Can't you see the set up?

The Debt-Money Monopolists financed and promoted a lightening rod into officeso he could be the patsey when they pull the economy -- economic demolition style.

They aren't whipping up all these emotions and this much hate and division for nothing, you know.

BTW, the plan is to mortally wound the alt-right...  imagine being the party that voted for the guy everyone is programmed to believe caused the Great Depression....  in 1933.

Yeah, that's the Debt-Money Monopolist plant, and you can bet your last dollar that BankstoTrump is NOT nescient of the plan.

He made a deal...  the best economic deal he could make for himself.

Hey, if you are so naive that you want to believe "The Don" is working for anyone other than himself, well, social Darwinism, right?

The Debt-Money Monopolists have what "The Don" wants, NOT US!

That's why the Bankster Establishment rolled out Trump to validate the fraudulent Obama birth certificate (don't ask me what it means, I don't know, I just know it was proven to be tampered with on many diffeent levels).  Note that Trump provide NO EVIDENCE of his false claim...  he knew it was false, but was protecting a Bankster asset at the behest of his Bankster Overlords.

And you thought Hillary was going to be indicted.  Ya'll almost make Obamabots look like bright people.  Oh, don't tell me you **still** think Hillary will be indicted.  Man, scratch the "almost."

We need a serious awakening to the depths of this tyranny.  Too few people grasp it.

Zero Knowledge's picture

Fed is not to deflate the bubble. It simply wants to raise rate (in preparation for the next crisis) while keeping the market high. Sounds like mission impossible, but that is what it is trying to do. The moment market tanks, it will retreat. That is why the market discounted the rate rise.

Fed-up with being Sick and Tired's picture

I have posted a question to this fella about KO, which is mentioned in his report. He uses KO at $18 a share, which has not traded in a $20 range since 2008.

So, I am asking, where would they buy KO now, and with options or not and at what price. I will post their response here. I am calling out this guy as I am wondering if I should BUY their services. My guess is that I will not hear from them. MAYBE SO???

But, since they post their 1000 reports for the first 1000 guys, I asked for it and I read it through and I actually like some of their points but still KO would HAVE been a buy at 20 bucks but NOW? I dunno.

Since they are the PRO's they should offer an answer. If not then I will post that here as well. Since the report was free, I am trying to decide if it was worth my simple investment of my own time. I am a trader, since 1990's and trade my own book, so I take each suggestion and run it through my own filters. WE SHALL SEE.

Fed-up with being Sick and Tired's picture

OK, not a single answer from Phoenix is over 2 hours. Ignore these invitations as this is NOT REAL.

buzzsaw99's picture

omg this is the funniest one yet.

Anonymous_Beneficiary's picture

Now THAT is saying something, my friend..Graham pens my daily humor and he's come up with some real doozies over the years.

Have you noticed he's only got 99 copies left? He must have started a fire with the other 901.

Davidduke2000's picture

the stock market does not need old yeller to deflate it, it will deflate itself by the lack of economic activities. once the depression take its course and American companies start to default on these huge debts they incurred to repurchase their shares.

On a day old yeller raised interest rates by 0.25%, gold jump $25 signaling that this insignificant raise is only temporary and the central bank would go back to printing unlimited amount of money .

JailBanksters's picture

A few well placed news stories should deflate yellens ego

U4 eee aaa's picture

Actually they can be deflated easily. You just hike maybe once per year or every two years. Three times in a year is a spike and designed to pop the bubble in order to overshoot to the downside so the elite can get stocks at a discount

hxc's picture

Fucking EXACTLY!!! I have been saying this constantly ever since the original March hike speculation. If Yellen had kept to a .25% hike once per year, predictably, every December, we could have had at least a small chance of deflating the bubbles without yanking on the credit chain and jamming a fat needle into the bubble markets.


Too late now, and I don't know what I expected out of these fucking NWO creeps. PPT sure did their job of not making the collapse look like the Fed's fault today. Fuck

VanillaSkyGuy's picture

Hey Gram.  Not disputing that the market goes down sometimes, but my Magic 8 ball is right more often than you.  Phoenix Capital Research would work better if you could someday rise up from the ashes.  

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) Mar 15, 2017 11:25 PM

Who owns the stock market? Who would be the seller? The buyer?

If you answered the Central Banks, you are correct.

antidisestablishmentarianismishness's picture

This fucker opens his eyes every morning desperately praying that today will bring Armageddon.  But no, it never does, and yet he still has the stamina to publish one more doomsday prediction. Incredible.

hxc's picture

You sure live up to your name, you fucking garbage Establishment statist totalitarian.


Go suck some Snapchat dick and leave the rest of us alone.

Anonymous_Beneficiary's picture

I thought it was a rather truthy remark...Graham can't possibly have any dry powder left after being wrong day after day, year after year. Anyone who's been paying attention is bewildered by his chutzpah.

Osmium's picture

If she wants to deflate the stock bubble, she could STOP PRINTING FIAT OUT OF THIN AIR!!!

hxc's picture

Ever heard of the Great Depression? Printing a shitload of money and then yanking it all out of the system after letting it permeate the whole thing simply fucks it all up. The printing was/is ABSOLUTELY the original problem, but their solution to rip it all out quickly is obviously calculated evil.

LenfromM57's picture

It is much better to Look marvelous, than it is to Feel marvelous. 

The choice is clear.  Save face ... or risk becoming irrelevant.  Which will it be.


Cloud9.5's picture

The Fed raised rates in 1928.  We all know what happened in 1929.

manfredforallseasons's picture

The Prez said rates were being kept artifically low. It sure has punished savers like me.

runnymede's picture

Until there's bankers in prison and claw back of their assets, nothing will change. 

Accountability con game.

It no longer matters if you believe, only that you comply.