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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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Tue, 08/21/2012 - 10:17 | 2723598 holdbuysell
holdbuysell's picture

Apparently, the algos didn't get the memo.

Tue, 08/21/2012 - 10:24 | 2723643 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 | 2723667 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 | 2723688 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 | 2724047 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 | 2724062 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 | 2723719 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 | 2723746 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 | 2723812 SWRichmond
SWRichmond's picture

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

Tue, 08/21/2012 - 11:42 | 2723964 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 | 2723720 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 | 2723758 fuu
fuu's picture

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

Tue, 08/21/2012 - 10:35 | 2723682 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 | 2723842 5880
5880's picture

Maybe this is like OCT/SEP of 1979

Tue, 08/21/2012 - 10:36 | 2723710 slaughterer
slaughterer's picture

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

Tue, 08/21/2012 - 10:41 | 2723737 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 | 2723601 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 | 2723612 madcows
madcows's picture

Blame the drought for hight food prices.

Blame Bernanke for preserving the status quo.

Tue, 08/21/2012 - 10:18 | 2723604 Racer
Racer's picture

Since when was any FED idiot right?

Tue, 08/21/2012 - 10:38 | 2723722 Al Gorerhythm
Al Gorerhythm's picture

Politics trumps reason.

Tue, 08/21/2012 - 10:18 | 2723605 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 | 2723792 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 | 2723607 ShortTheUS
ShortTheUS's picture

Traders are understandably feeling QEasy over this news.

Tue, 08/21/2012 - 10:19 | 2723611 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 | 2723619 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 | 2723625 kito
kito's picture

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

Tue, 08/21/2012 - 10:25 | 2723649 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 | 2723693 fonzannoon
fonzannoon's picture

I am hanging in suspense of this turkey sandwich.

Tue, 08/21/2012 - 10:34 | 2723703 Dr. Engali
Dr. Engali's picture

   ;-> LMAO Yeah me too.

Tue, 08/21/2012 - 10:57 | 2723801 IndicaTive
IndicaTive's picture

Ditto.

Tue, 08/21/2012 - 10:26 | 2723664 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 | 2723787 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 | 2723852 kito
kito's picture

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

Tue, 08/21/2012 - 10:22 | 2723635 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 | 2723642 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 | 2723644 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 | 2723730 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 | 2723749 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 | 2723796 Dr. Engali
Dr. Engali's picture

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

Tue, 08/21/2012 - 10:24 | 2723645 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 | 2723650 Abraxas
Abraxas's picture

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

Tue, 08/21/2012 - 10:26 | 2723653 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 | 2723659 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 | 2723661 LongSoupLine
LongSoupLine's picture

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

Tue, 08/21/2012 - 10:28 | 2723671 bnbdnb
bnbdnb's picture

Vote democrat, buy gold.

Tue, 08/21/2012 - 10:32 | 2723698 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 | 2723755 bnbdnb
bnbdnb's picture

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

Tue, 08/21/2012 - 10:28 | 2723672 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 | 2723673 Boilermaker
Boilermaker's picture

RAMROD the ES ANYWAY!

Johnny 401k needs his dope!!

Tue, 08/21/2012 - 10:28 | 2723676 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 | 2723735 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 | 2724206 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 | 2723683 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 | 2723692 jjsilver
jjsilver's picture

They rig everything so it's meaningless.

Tue, 08/21/2012 - 10:47 | 2723775 covert
Tue, 08/21/2012 - 10:36 | 2723712 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 | 2723753 Boilermaker
Boilermaker's picture

Golly....thanks for pointing that out.

Wed, 08/22/2012 - 05:12 | 2726494 TWSceptic
TWSceptic's picture

Glad I could help. Now be nice.

Tue, 08/21/2012 - 10:37 | 2723718 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 | 2723742 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 | 2723751 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 | 2723864 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 | 2723759 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 | 2723774 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 | 2723868 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 | 2723780 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 | 2724029 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 | 2723822 SmoothCoolSmoke
SmoothCoolSmoke's picture

Dis-inflation.  Deflation.  Are they different? 

Tue, 08/21/2012 - 11:06 | 2723845 Quinvarius
Quinvarius's picture

Translation:  We just printed a trillion dollars last week.

Tue, 08/21/2012 - 11:51 | 2723988 ATG
ATG's picture

 

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

 

 CollapseFavorite

 

Tue, 08/21/2012 - 11:51 | 2723994 MFLTucson
MFLTucson's picture

This means that QE3 is coming sooner ratyher than later.

Tue, 08/21/2012 - 12:54 | 2724233 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 ^^

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