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

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holdbuysell's picture

Apparently, the algos didn't get the memo.

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?

Cursive's picture

@Phroneo

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

GetZeeGold's picture

 

 

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

 

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

 

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.  

 

 

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".

 

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.

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.

SWRichmond's picture

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

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.

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??

fuu's picture

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

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.

5880's picture

Maybe this is like OCT/SEP of 1979

slaughterer's picture

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

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...

GMan_'s picture

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

madcows's picture

Blame the drought for hight food prices.

Blame Bernanke for preserving the status quo.

Racer's picture

Since when was any FED idiot right?

Robot Traders Mom's picture

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

 

Good call Bob.

Alea Iactaest's picture

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

Edit: not my red arrow for you.

ShortTheUS's picture

Traders are understandably feeling QEasy over this news.

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.

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.

kito's picture

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

Dr. Engali's picture

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

fonzannoon's picture

I am hanging in suspense of this turkey sandwich.

fonzannoon's picture

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

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".

kito's picture

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

Hype Alert's picture

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

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.

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.

bdc63's picture

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

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.

Dr. Engali's picture

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

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.

Abraxas's picture

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

Dr. No's picture

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

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.

LongSoupLine's picture

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

bnbdnb's picture

Vote democrat, buy gold.

Gavrikon's picture

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

I'm buying gold no matter who wins.

bnbdnb's picture

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

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.

Boilermaker's picture

RAMROD the ES ANYWAY!

Johnny 401k needs his dope!!

max2205's picture

*LOCKHART SAYS DISINFLATION, DEFLATION NOT NOW A CONCERN

 

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