Epic Failure In Fed's Price Stability Mandate As Treasury Curve Shift Is Most Abnormal In 30 Years

Tyler Durden's picture

As Diapason's Sean Corrigan demonstrates, the Fed has failed at not only every single explicit mandate, such as keepin inflation and unemployment under control, but in its most important implicit one as well, that of preserving price stability, following an 8 week 2s30s curve shift which has been the greatest such move in 30 years, and a nearly 3 sigma event. 3 SIGMA... In boring government bonds...

Chart: Bloomberg

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jbc77's picture

Bernake is a fucking dirt bag in bed with the loser ass Obama admin. Fuck him, hope he gets hit by a car.

monopoly's picture

But let's not stoop to their level. Think we are all better than that.

max2205's picture

IWM closing at 66.66 WTF

buzzsaw99's picture

You might be better than that but I'm not.

TruthInSunshine's picture

The Bernank sayeth loudly:

Everyone - Get out of equities and into tnotes, or else yield will be the least of your worries, bitchez!

tbd108's picture

Well then how about a very small car that only bumps him hard in the crotch?

Spitzer's picture

Only silver whisle blowers get hit by cars.

Gubbmint Cheese's picture

Spitzer you magnificent bastard.. you owe me a new keyboard.. :)


tmosley's picture

He's just doing his part to stimulate the economy.

DoChenRollingBearing's picture

^--- Great comments in this subthread!

Cognitive Dissonance's picture



Epic Failure In Fed's Price Stability Mandate As Treasury Curve Shift Is Most Abnormal In 30 Years

"Most" abnormal in 30 years is the new normal.

Cleanclog's picture

Will this be another way to funnel to Primary Dealers - the big banks - again?  If almost everything with a maturity longer than 5 years is due to be neutralized by Fed buying after the fact . . . will dealers gobble up the auctions with a wink and a nod that they'll be taken out of those same positions in ensuing days?  Let's watch.  Certainly could be.  What does Mr. Pimco say?

Smiddywesson's picture

Cut them some slack,

they're doing there best to stabilize prices, (PM prices)

Manthong's picture

Why should short term money have all the fun?

A dying currency need a little verve on the way out.


JohnG's picture

Did a little "percussive maintenace" myself....on the FED nothingburger, commods selling off, equities hammered.

Fuck you Bernank you're a fucking maniac.

BorisTheBlade's picture

you owe me a new keyboard

New financial instrument, keyboard-backed IOU. New unit issued every time someone spills coffee on his keyboard.

OOONONO's picture

"silver whisle" - is that a euphanism for something, Client #9?  was that your favorite? 

GeneMarchbanks's picture

Speaking of Ag, JP Morgue hitting new lows = silver spike imminent?

fuu's picture

That was beautiful. Ended on a new 52 week low. Silver:JPM now 1.3066.

GeneMarchbanks's picture


Just the dude I was looking for. This ratio of yours, you're a big beliver eh? So tell me any chance they unwind the silver short soon?

fuu's picture

The ratio is too simplistic to be all that meaningful. I just enjoy watching it change.

I am not convinced they are short.

xtop23's picture

I think they unwound a ton of their silver shorts in May 

GeneMarchbanks's picture

Small potatoes. That was an overture.

orangedrinkandchips's picture

I'll smoke an ounce to that!!!!!


orangedrinkandchips's picture

someone will be texting they boyfriend and will hit the fucking mutt....fuck drunk driving...text driving is worse!

covert's picture

join one or more barter clubs and hide your gold and other metals.



TruthInSunshine's picture

Ben Bubbles&Bananas Bernanke Broke All Markets.

Good job, Bennie Boy!

*News reports (unconfirmed at this time) that Paul Krugman, upon hearing the announcement, tried to commit suicide by jumping from a 1st floor window in the NYT Building.

King_of_simpletons's picture

Century of "American Nightmare".

SheepDog-One's picture

FED just won the all-star *fail* trophy.

bania's picture

three standard deviations... is that all you got Bernank?

Western's picture

I know right? I thought the mandate-du-jour was to go big or go home, 7 sigma at least.

zorba THE GREEK's picture

Unintended consequences. I have a feeling we will be hearing that term more and more as desperate measures

become the game plan in the final days before " THE GREAT COLLAPSE "

Sequitur's picture

Prints - market starting to go down big.

Frankly, this is good. Deflation is here, everything will drop. Everything. Including gold, silver. Let the debt destruction commence, dollar rises.

Waffen's picture

200 points aint big.


QE holding up the markets has been the meme for a long time here and in the metals community.  We have not had overt QE, so we need a real plunge in the markets or all of us have been wrong.

Spaceman Spiff's picture

Did they hint/cock tease more overt QE in the statement for some later date?  They really feathered the market's testes with that at Jackson Hole.

Sequitur's picture

Was going to be bigger than 200, we have to be close to 300 by now, the sell orders were coming fast and furious at the close.

Waffen's picture

Still not terribly impressed.   Lets hope for a continued market sell off this week in epic fashion.

economics1996's picture

Deflation helps me.  

youngman's picture

You know I see this as a sideline...I think they are rushing back to work on the European problem right now...that is front and center...a trillion or two there first to save those funny speaking bankers over there...over there...la de da