This page has been archived and commenting is disabled.

Fed's Lockhart Kills Hopes Of Further QEasing

Tyler Durden's picture





 

As the S&P 500 makes new multi-year highs, the USD dumps, commodities surge, and AAPL just does what it does best; The Fed's Dennis Lockhart has just 'subtly' announced the walking-back of expectations of QE3 happening anytime soon, via Bloomberg:

  • *LOCKHART SAYS `MONETARY POLICY IS NOT A PANACEA'
  • *LOCKHART SAYS ECONOMIC DATA HAVE BEEN `FIRM' IN LAST MONTH
  • *LOCKHART SAYS HOUSING IS STABILIZING AND `ENCOURAGING'
  • *LOCKHART: MONTHLY UNEMPLOYMENT RISE SHOULDN'T BE EXAGGERATED
  • *LOCKHART SEES `MORE APPETITE FOR RISK'

and critically:

  • *LOCKHART SAYS DISINFLATION, DEFLATION NOT NOW A CONCERN
 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/21/2012 - 10:17 | Link to Comment holdbuysell
holdbuysell's picture

Apparently, the algos didn't get the memo.

Tue, 08/21/2012 - 10:24 | Link to Comment Phroneo
Phroneo's picture

It sure is strange. The SP500 just keeps on rallying like there's no crisis at all! How high will it go based on hope for printing? Is it starting to price in QE4 for when QE3 fails to work?

Tue, 08/21/2012 - 10:27 | Link to Comment Cursive
Cursive's picture

@Phroneo

Crazy isn't it?  Like convicted criminals having one last party before reporting to the pen for a lifetime sentence.

Tue, 08/21/2012 - 10:30 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Sorry Lockhart.....we know you're lying.

 

We don't print money....grandma doesn't get her SS check.

 

Tue, 08/21/2012 - 12:08 | Link to Comment economics9698
economics9698's picture

If he announced it all the insiders have sold their paper. 

The Fed did the same shit in 29, warned the insiders to sell, jacked the interest rates up, the market fucked around a few months and then November 24, 1929 rolled around and the bodies started falling out of the skyscrapers.

You’re looking at a few months for the bond market to die.  If 29 is the pattern look for, at best 6 months, just past the November USA election.  

 

 

Tue, 08/21/2012 - 12:09 | Link to Comment nope-1004
nope-1004's picture

The issue is Gold and Silver, along with surging food prices.  Confidence in the USD is falling, and check it out:  This type of 'control' is all they have left.  LOL.  As others have said, "The fed is out of bullets".

 

Tue, 08/21/2012 - 10:39 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

On a daily basis I marvel at how many times I see the word "Hope" in CNBC, Bloomberg and WSJ article titles or teasers. This morning there was one talking about how markets continue to rise on "hope" that the ECB will come to the rescue "despite" the ECB saying they will not.

We have moved from the sublime to the truly stupid.

Tue, 08/21/2012 - 10:44 | Link to Comment AlphaDawg
AlphaDawg's picture

They will print, just not yet.

Wait till the Tax revenue comes in early next year, they have to print or default.....simple. They will do the former.

Tue, 08/21/2012 - 10:59 | Link to Comment SWRichmond
SWRichmond's picture

Lockhart doesn't like what gold is saying.  Jawboning, bitches!

Tue, 08/21/2012 - 11:42 | Link to Comment dracos_ghost
dracos_ghost's picture

Because these guys know the headline scraping algos are stupid and they put the buzz word in all these headlines to keep the algos on the upslope.

Tue, 08/21/2012 - 10:38 | Link to Comment Stoploss
Stoploss's picture

*LOCKHART SAYS DISINFLATION, DEFLATION NOT NOW A CONCERN

 

Is this why the inflation needle WONT MOVE after seven trillion in monetization??

 

 

Or, is it this??

Tue, 08/21/2012 - 10:44 | Link to Comment fuu
fuu's picture

I wonder what now are the concerns: Bi-flation, stagflation, inflation, hyper-retardation?

Tue, 08/21/2012 - 10:35 | Link to Comment ACP
ACP's picture

All the more reason for a classic blow-off top. Enjoy it while it while lasts...because it never does...

Edit: Expect this to get EXTREMELY overbought before failing.

Tue, 08/21/2012 - 11:06 | Link to Comment 5880
5880's picture

Maybe this is like OCT/SEP of 1979

Tue, 08/21/2012 - 10:36 | Link to Comment slaughterer
slaughterer's picture

Algos will not take note of Lockhardt until they push SPY to 144.40.

Tue, 08/21/2012 - 10:41 | Link to Comment ziggy59
ziggy59's picture

Fed's Lockhart says asset purchases remain an option; weighing all considerations regarding easing

http://headlines.ransquawk.com/headlines/fed-s-lockhart-says-asset-purch...

Tue, 08/21/2012 - 10:17 | Link to Comment GMan_
GMan_'s picture

Yes, gold is still above 1640. Looking forward to more expensive grocery bills this Fall. Fuck you Bernanke.

Tue, 08/21/2012 - 10:18 | Link to Comment madcows
madcows's picture

Blame the drought for hight food prices.

Blame Bernanke for preserving the status quo.

Tue, 08/21/2012 - 10:18 | Link to Comment Racer
Racer's picture

Since when was any FED idiot right?

Tue, 08/21/2012 - 10:38 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Politics trumps reason.

Tue, 08/21/2012 - 10:18 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

The only guy I like frontrunning the Fed is Bob Janjuah...

 

Good call Bob.

Tue, 08/21/2012 - 10:54 | Link to Comment Alea Iactaest
Alea Iactaest's picture

Being right but getting the timing wrong makes you... wrong.

Edit: not my red arrow for you.

Tue, 08/21/2012 - 10:18 | Link to Comment ShortTheUS
ShortTheUS's picture

Traders are understandably feeling QEasy over this news.

Tue, 08/21/2012 - 10:19 | Link to Comment Stackers
Stackers's picture

They will not do QEx until interest rates try to rise or the system comes close to imploding. Bernak knows he is pushing on a string at this point. He will sit on his hands until the fire is at his feet.

Tue, 08/21/2012 - 10:21 | Link to Comment Jim in MN
Jim in MN's picture

OK, so US real per capita disposable income will rise...uh, WHEN exactly sir?

 

Never....seems like a long time....how about 20 years while the stench of corruption rots out the core of the Republic.  Funny how they never mention that, or mark-to-market, or zombification/Japanification.

 

All lies, smoke and mirrors.  Does nothing for the real economy.

 

Are all these banks, insurance companies and pension funds solvent on a market basis?  HELL NO.  The bailout continues and we all pay in numerous ways.  At least be honest about it, Overlord.

Tue, 08/21/2012 - 10:20 | Link to Comment kito
kito's picture

Where is doc engali? I'm hungry......too easy of a bet......

Tue, 08/21/2012 - 10:25 | Link to Comment Dr. Engali
Dr. Engali's picture

 Right here Kito...It's not looking good, but I'm keeping the faith.

Tue, 08/21/2012 - 10:30 | Link to Comment fonzannoon
fonzannoon's picture

I am hanging in suspense of this turkey sandwich.

Tue, 08/21/2012 - 10:34 | Link to Comment Dr. Engali
Dr. Engali's picture

   ;-> LMAO Yeah me too.

Tue, 08/21/2012 - 10:57 | Link to Comment IndicaTive
IndicaTive's picture

Ditto.

Tue, 08/21/2012 - 10:26 | Link to Comment fonzannoon
fonzannoon's picture

Kito unemployment even by the garbage figures is climbing. Ben said he was there for us. He Promised!

Tue, 08/21/2012 - 10:52 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

 

 

ELAINE:  Oh!  I've got it! I've got it! We're calling just to say, "I'm there for you."

JERRY: "I'm there for you."

ELAINE: Then, after a period of being "there for you", we slowly remove the two words "for you", and we're just "there".

Tue, 08/21/2012 - 11:07 | Link to Comment kito
kito's picture

Should I go with mayo or honey mustard......hmmm......

Tue, 08/21/2012 - 10:22 | Link to Comment Hype Alert
Hype Alert's picture

At least this won't affect the stock market.  [/sarc] Onward and upward.

Tue, 08/21/2012 - 10:24 | Link to Comment alien-IQ
alien-IQ's picture

The market just keeps ripping higher...yet all I can do is watch and giggle because there is NO FUCKING WAY IN HELL I'm jumping into this clusterfuck right now.

Tue, 08/21/2012 - 10:26 | Link to Comment Dr. Engali
Dr. Engali's picture

"Economic data has been firm in the last month".

 

Damn I was worried there, I thought we were continuing our slide downward.I'm glad we broke the trend. I think I'll run out to Best Buy and purchase some cheap Chinese crap that I don't need.

Tue, 08/21/2012 - 10:39 | Link to Comment bdc63
bdc63's picture

After their recent earnings announcement, I think Best Buy would be eternally greatful if you did ....

Tue, 08/21/2012 - 10:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Dr Engali,

You have repeatedly ignored our warning to play nice with the others. Please report to your local FEMA retraining camp for processing.

Have a nice day. :)

 

Respectfully,

Your local FEMA camp administrator.

Tue, 08/21/2012 - 10:55 | Link to Comment Dr. Engali
Dr. Engali's picture

I'll be there on the second thursday of next week.

Tue, 08/21/2012 - 10:24 | Link to Comment Lost Wages
Lost Wages's picture

Maybe they are trying to tamp the gold price back down. Another Fed authority will come out and say the opposite tomorrow, if not later this afternoon, or whenever it suits their purposes. MOPE: Management Of Perception Economics.

Tue, 08/21/2012 - 10:25 | Link to Comment Abraxas
Abraxas's picture

Bloody Criminals!!! These people are liars and murderers, no exaggeration.

Tue, 08/21/2012 - 10:26 | Link to Comment Dr. No
Dr. No's picture

He didnt get the memo.  The Adjusted monetary base is up $100B in the last 4 weeks.

Tue, 08/21/2012 - 10:26 | Link to Comment booboo
booboo's picture

No QE? Well they must know something else that will stimulate a failing economy.  Think, think, think?

War bitchez!! Eureka!! Fire up the bombers, we gots some rubble we need to bounce.

Tue, 08/21/2012 - 10:41 | Link to Comment LongSoupLine
LongSoupLine's picture

lockhart??  Phhhttt...what does the real Fed, Hilsenrath, say? /sarc/

Tue, 08/21/2012 - 10:28 | Link to Comment bnbdnb
bnbdnb's picture

Vote democrat, buy gold.

Tue, 08/21/2012 - 10:32 | Link to Comment Gavrikon
Gavrikon's picture

Makes sense, but what makes you think the Republicans would do anything different?  

I'm buying gold no matter who wins.

Tue, 08/21/2012 - 10:44 | Link to Comment bnbdnb
bnbdnb's picture

Chuck Schumer - "Get to work, Ben Bernanke".

Tue, 08/21/2012 - 10:28 | Link to Comment Scalaris
Scalaris's picture

 

i·ro·ny 

QE was never on the table, despite the ramped up yet volume-less markets that reached multi-year highs due to rumour-buying, and that will subsequently capitulate post-Jackson Hole speech indicating that there is indeed no point for the aforementioned QE, which incidentally was never on the table, but which ironically become an issue after every asset class and equity indice return to base, due to the coordinated, yet volume-less effort, by the remainder participants who manipulate the market, using the Fed's special-rate money.

Tue, 08/21/2012 - 10:28 | Link to Comment Boilermaker
Boilermaker's picture

RAMROD the ES ANYWAY!

Johnny 401k needs his dope!!

Tue, 08/21/2012 - 10:28 | Link to Comment max2205
max2205's picture

*LOCKHART SAYS DISINFLATION, DEFLATION NOT NOW A CONCERN

 

That's where Iran comes in ...no prob!

Tue, 08/21/2012 - 10:40 | Link to Comment bdc63
bdc63's picture

The first couple of times that I read that I thought it said that "disinformation" was not a concern ...

Tue, 08/21/2012 - 12:48 | Link to Comment viahj
viahj's picture

that's one of the "side effects" of taking the red pill.

others include insomnia, pm cravings, hoarding, etc...

the red pill is classified as a controlled substance and thus you are a terrorist.

Tue, 08/21/2012 - 10:29 | Link to Comment fonzannoon
fonzannoon's picture

Which was the real fed hawk...the guy from Texas....Fisher? You know the guy that says QE does not work....remind me again how much GLD does he own?

Tue, 08/21/2012 - 10:31 | Link to Comment jjsilver
jjsilver's picture

They rig everything so it's meaningless.

Tue, 08/21/2012 - 10:47 | Link to Comment covert
Tue, 08/21/2012 - 10:36 | Link to Comment TWSceptic
TWSceptic's picture

The fed is doing stealth QE. They're printing to keep the market up until after the elections. Don't expect anything more until after elections.

 

 

Tue, 08/21/2012 - 10:44 | Link to Comment Boilermaker
Boilermaker's picture

Golly....thanks for pointing that out.

Wed, 08/22/2012 - 05:12 | Link to Comment TWSceptic
TWSceptic's picture

Glad I could help. Now be nice.

Tue, 08/21/2012 - 10:37 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He has no control.  Bernanke is the one with his finger on the button, and Bernanke is fractionally reserving every last unicorn tear on the Fed's book.

Tue, 08/21/2012 - 10:42 | Link to Comment Meesohaawnee
Meesohaawnee's picture

wall street: thank you obama for not prosecuting any of the financial terrorist. Heres your parting gift. We thank you with a ramp job to make things look so pretty when they are not. . And main street. You complete suckers. How does 97 per on crude for no reason at all feel? Thanks. Wall Street. Were laughin all the way to the bank. Literally.

Tue, 08/21/2012 - 10:43 | Link to Comment Turin Turambar
Turin Turambar's picture

He's a lying sack of chit.  The Fed doesn't have to announce QE anything.  They do what they want under the table and off the books anyway.  It's going on this very moment.  All you have to do is take a look at the stock racket, err market.

Tue, 08/21/2012 - 11:11 | Link to Comment Quinvarius
Quinvarius's picture

The fact that JPM took a 7 billion loss when it is leveraged 40 to 1, and is still alive, is all the proof you need that these liars are printing like crazy.  The last thing they want is for anyone to know what they are really doing.  Ever since the Greece default they have been throwing money out the windows.  It is starting to show up in every measure of money supply they report.

Tue, 08/21/2012 - 10:44 | Link to Comment TrustWho
TrustWho's picture

My hat is off to these guys at the Fed for their short term strategy in feeding wall street greed the gasoline to fuel stock prices. Six weeks ago they start feeding QE3 and the Bernanke Put to get S&P up 60 points. They pull QE3 and S&P sets new 52 week high. All this why 1) Europe is in recession/depression, 2) Chine hard landing looks more likely and 3) fisical cliff and DEBT CEILING gets close every day as republicans and democrats piss on each other.

As they say on the business channels, all this information is known and us smart guys after already baked this into our earnings model and the market is CHEAP.....so BUY, BUY, BUY

Tue, 08/21/2012 - 10:47 | Link to Comment claudiadisio
claudiadisio's picture

These crazy senseless markets are signalling that something big is on its way......and I guess we won't like it at all!

Tue, 08/21/2012 - 11:13 | Link to Comment Quinvarius
Quinvarius's picture

Or maybe they are just signalling the inability to control the effects of what has already transpired.

Tue, 08/21/2012 - 10:49 | Link to Comment TonyCoitus
TonyCoitus's picture

Seems to me US equities is becoming the *new* bubblicious safe haven. Bonds are becoming so yesterday.  Buys stocks, buy stocks!  

Tue, 08/21/2012 - 12:01 | Link to Comment Turin Turambar
Turin Turambar's picture

The stock market will be the last great bubble before the day of financial reckoning imo.  I hope too many people aren't hurt.  Then again, that's like hoping for Obama's kind of hope.  It's just wishful thinking.  :-(

Tue, 08/21/2012 - 11:01 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Dis-inflation.  Deflation.  Are they different? 

Tue, 08/21/2012 - 11:06 | Link to Comment Quinvarius
Quinvarius's picture

Translation:  We just printed a trillion dollars last week.

Tue, 08/21/2012 - 11:51 | Link to Comment ATG
ATG's picture

 

Market may have just made long-term top with NDX hitting 2000 highs:

 

 CollapseFavorite

 

Tue, 08/21/2012 - 11:51 | Link to Comment MFLTucson
MFLTucson's picture

This means that QE3 is coming sooner ratyher than later.

Tue, 08/21/2012 - 12:54 | Link to Comment Overflow-admin
Overflow-admin's picture

*LOCKHART: MONTHLY UNEMPLOYMENT RISE SHOULDN'T BE EXAGGERATED

Is there any point mentioning that? We all know the reports are cooked ^^

Do NOT follow this link or you will be banned from the site!