Gold is spiking, USDJPY dropping, and stocks leaking lower after Dallas Fed's Kaplan dropped some serious tapebombs ahead of Yellen's speech...
Speakingon Bloomberg TV, Kaplan headlines wwre as follows...
- FED'S KAPLAN: WE CLEARLY ARE ACCOMMODATIVE RIGHT NOW
- KAPLAN: INVESTORS USED TO IDEA RATES WILL BE LOWER FOR LONGER
- FED'S KAPLAN: MARKET OR REAL-ESTATE CORRECTION COULD BE HEALTHY
- KAPLAN SAYS MARKET CORRECTION WOULDN'T NECESSARILY HURT THE ECONOMY, AND MAY HELP IT
- KAPLAN: WE SHOULD BE MOVING ON B/SHEET AS SOON AS POSSIBLE
- KAPLAN: FED CAN SHRINK B/SHEET WITH MINIMAL IMPACT ON MARKETS
And the reaction was swift...
Gold spiked and USDJPY tumbled...
Bonds were also bid... but stocks barely budged?
Comments
yeee-haw
"Market correction could be healthy..."Only if you aren't in the market, and even then it's gonna hurt.
In reply to yeee-haw by DinduNuffin
Haven't been in the market since 2007 crash. How do you lose 75 years of accumulated wealth in 7 months? (Hint: "IT'S FIXED") Keep stacking gold.
In reply to "Market correction could be by Erek
Short gold during Yellen speech, I normally go JDST or DUST 15 minutes prior and sell shortly after she's done.Easy 3% - 5%Edit: Watching Sushi, decided to hop in DUST at 25.60 early tight stops.Edit 2: Stop triggered, looking to jump back in cheaper.
In reply to Haven't been in the market by Muslimania
Gold spiked higher, then dropped much, much lower.Meanwhile BTC is up 4% in the last 24 hours, near its all time high. Again.
In reply to Haven't been in the market by Muslimania
And BTC Is certainly a great speculation, I hold a bit less than 1% in BTC. But, I have skin in the game!
In reply to Gold spiked higher, then by tmosley
GOLD should be a core holding for anyone with savings, even mainstream financial advisors are OK with 5% of their wealth in Au.
"Be your own central bank, buy gold!"
In reply to Haven't been in the market by Muslimania
So if they put 5% in gold they are ok with losing 95% of their portfolio?
In reply to GOLD should be a core holding by 38BWD22
Everyone is in the market - unless thay are living self-sufficiently - squatting on some tax-free land. Even then, they likely need to buy salt, and shells.
In reply to "Market correction could be by Erek
How low can it go? Not low enough.
In reply to "Market correction could be by Erek
It's a free chioce to be in....
In reply to "Market correction could be by Erek
Gartman just took his "virtual" short positions off so time for a nice stock dump.
In reply to yeee-haw by DinduNuffin
service return for a point
In reply to yeee-haw by DinduNuffin
They can never raise rates, reduce their balance sheet, or normalize markets. Too much depends on keeping the top spinning.
What if they want to stop the top from spinning?
In reply to They can never raise rates, by Uncertain T
Then you had best be prepared.
In reply to What if they want to stop the by flacon
Ironically, their understanding of economics is so backwards, they will cause a brief recession, and then things will start to get better quickly as they jack up interest rates.
In reply to What if they want to stop the by flacon
Their thinking isn't backwards, it's just that the stock market /= the economy. Compare domestic sales of the stock market companies to gross GDP, the difference are things like small business that are essential to the economy.
That's why political crony capitalism can be so damaging. By subsiding large companies small business can suffer, and small business are the largest employers in the economy. The whole confusing economic success with stock market success is part of a PR campaign by large business, and the stock market is nothing more than a leading indicator of a recession, not a measure of success.
In reply to Ironically, their by tmosley
No, they do have it backwards. They think growth is fueled by spending. It isn't. It is fueled by SAVING. By discouraging saving, they have made growth all but impossible. Just M2M nonsense. Real growth can only come when people contribute to the economy by earning money, and then HOLDING that money rather than immediately taking real contribution back out of the economy. Real contribution to the economy will be turned to capital to provide a greater lever on labor, making production easier, making goods and services cheaper, and making everyone's money worth more.Yes, the stock market isn't the economy. It's just a sideshow that has been turned into the main event thanks to the utter ignorance of our economic policymakers.
In reply to Their thinking isn't by Iskiab
You have it 100% wrong on "things getting better quickly" by the FED normalizing interest rates. It would cause a Greater Depression. That's why you got junked.
In reply to No, they do have it by tmosley
You are too stupid to talk to me.
In reply to You have it 100% wrong on by Bay of Pigs
Yea, I somewhat agree but disagree with monetarism on this issue because it's not savings that become productive assets, it's investment. Right now the excess money isn't turning into investments which is where the theory falls apart. Large companies are sitting on cash, at the end of the day the driver is investment and productivity and not savings.
In reply to No, they do have it by tmosley
Savings IS investment. It is the investment of goods and services that can then be consumed by those who will produce capital goods instead of goods for their own (effective) immediate consumption.Don't make the mistake of thinking that dollars in a bank account are stable savings. The idiots in power debase that savings to try to create more demand--more consumption. This destroys capital investment, misallocating resources towards immediate consumption.Read "How an Economy Grows, and Why It Doesn't". Should be able to find it for free online. Laid out in a very easy to understand manner.
In reply to Yea, I somewhat agree but by Iskiab
That's not a spike... I just looked at the gold chart.
It's on like donkey kong!
The dead don't care....
this is not really news
"FED CAN SHRINK B/SHEET WITH MINIMAL IMPACT ON MARKETS" I want some of what he is smoking
That's what Mr. Kaplan says... They know however, they can't afford to let a correction start.
If the Fed reduces their balance sheet, it will have nothing to do with selling anything. Their balance sheet is whatever they say it is. There isn't a market for what cnetral bankers have to sell--Not at these prices.
ZH's own John Titus (Cheyenne) did a superb video on this very topic on YouTube. Check it out.
https://m.youtube.com/watch?v=jt377DV2BKs
In reply to If the Fed reduces their by Quinvarius
Well there's a house near mine in SW Florida that's been empty since the 08 crash. I suppose the mortgage for that house can just evaporate on the FED balance sheet, but the house sure won't.
In reply to If the Fed reduces their by Quinvarius
"Market correction could be healthy"So the Fed can get in on this stock rally and "stimulate" the economy.
An increase of less than 0.5% in the price of gold constitutes a spike?
In today's "markets" with algo circuit breakers that is all that is allowed. It should be called a spike because who knows how high it could have gone otherwise.
In reply to An increase of less than 0.5% by GunnerySgtHartman
Re: We'll never know how high prices would have gone if a giant invisible hand didn't hold them down ...Good point. Gold and silver are NOT ALLOWED to rise more than 1 percent in a day. However, they are allowed to FALL more than 1 percent in a day. In fact, they are allowed to fall more than 2 or 3 percent in a few seconds ... all the time. It happened this morning with silver.Ever read that Stephen King book (or see the mini-series) about the town that was encased in an invisible bubble? That's the force that gold and silver run into on a routine basis.
In reply to In today's "markets" with by Latitude25 (not verified)
In this gold market, anytime it doesn't drop it's considered a spike PS gold just went from up 6 to down 5 in a minute, free markets indeed
In reply to An increase of less than 0.5% by GunnerySgtHartman
Tyler jinxed it again...now in the red
In reply to An increase of less than 0.5% by GunnerySgtHartman
A decrease of only 0.5% constitutes a spike.
In reply to An increase of less than 0.5% by GunnerySgtHartman
Is like old song " don't worry be happy "
Correction? I think he meant to say Cleansing.
That is NOT what i'm seeing
Today will be very volitile for GOLD.
gold just needled!
I'm confused. Does this article mean a spike down? That's all I'm seeing.
I think a monkey is playing with the Algo switch.
There is no gold market,, its in a strangle hold by the JEW Zionist Bankers to keep their Ponzi going.
and 25 min later it spikes down 2x
Article correction: 'is spiked'
Correction - unbacked, naked short "papergold" certificates of all kinds are being whipped around. The price is shakin' while the real gold ain't stirred.
In reply to Article correction: 'is by numazawa
Silver just moved 45 cents in two minutes with a volume spike of about 400,000 contracts traded to do it. (NetDania charts) Whoever said they are losing control hasn't seen them jerk the steering wheel lately. We are Blessed.