If you’re looking to blame someone for today’s losses, look towards Charles Plosser. He’s one of these delusional Fed governors and resides in the disgusting city of Philly. He said the Fed might start raising rates, sooner than later, because the economy is rip, roaring, mad.
HAHAHAHAHAHA.
The funny thing about his statement is that he holds zero sway, yet people panic as if Yellen had said it. No one cares about the opinions of the Fed governors. They’re just filler, stand ins to make the whole process appear to be democratic.
Also, can someone please educate me about the current “Fed mess” and how rising bond prices is bad for the Fed? Let’s establish a few points here. The Fed wants to get out of these bonds that they bought, eventually, and have begun tapering. Their balance sheet is now in excess of $4 trillion. With rates heading lower, isn’t that to their benefit, you idle inchworms?
In other words, they’ve managed to keep the SPY at its all-time highs, while directing all of the morons who were long FEYE, SPLK, WDAY and YELP into TLT, thereby providing them with the liquidity that they need to sell–if need be. It’s genius. What would you prefer, a rising rate environment and the Fed losing a few trillion dollars in their bond market forays?
You people complain about everything.
Now I am hearing some guy on CNBC suggest we’re heading into a recession. Naturally, Rickard Santelli agrees and then says the 10 yr bond will hit 2.25%. Why will it hit 2.25%? BECAUSE THE FED IS GOING TO RAISE RATES!!!???
Down is up and up is down. You people are living in fantasy land. Let me simplify things for you.
Rates will NEVER, EVER, EVER, EVER go up. Ever.
As long as The United Steaks of America has $20 trillion in debt to service, the Fed will keep rates artificially low so that Detroit and Chicago can continue funding after-school centers and handing out condoms to vagrant teenagers.
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We do not need jobs or housing or the consumer. This is getting hilarious.
I agree with you….rates are never going up again. They just aren’t.
It is amazing to think how significantly the perception of large sums have decreased over the past 5 years. Hundreds of billions is a common figure. A billion dollars is commonplace money to throw around for things of dubious to no value.
RIght now, for the common man, little bits of money still seem important. But to the very wealthy, the value of money has changed dramatically. There has been tremendous inflation in the luxury segment of society.
Isn’t it an inevitability that if large sums of money are “devalued”, both in perception and reality, that eventually even small sums of money in the non-luxury segment will be devalued in the same way?
It is curious.
Rick Santelli’s front teeth looked like a
7-10 split when he predicted the 10yr going to 2.25, his little pecker standing tall with the excitement of recession talk.
LOL!!!
I want a Rick Santelli bobble teeth doll
And that, is one reason why bears do have some cards
There are, black swan setups because of all the distortions
They have to get it perfect
“Black swan setups”? That’s a new one
Lol at black swan set ups. Logically, that’s impossible
well. um. Ha tried to trick you.
might I add who have been WRONG for 4 years. waiting for SOMETHING to happen. might see SETUPS. so for you. but for us.
oh nevermind. im calm. im calm
The enemy is the giant sucking sound of liquidity withdrawal by the Fed and China. The Fed caused them to go up and will cause them to go down. Don’t think too hard on this one fellas. Prepare for the untaper after the correction.
How deep is this going to be? Do you have any knowledge from the floor how long and low this could get?
I thought it was the Russian ICMD test. 😀
ICBM holy crap
I believe you could have just written “Welcome to Japan” because those never rising rates have done wonders for them over there.
You people are all crazy.
Market wants to selloff and will find a reason, it always did before.
Rates cannot go up.
The debt service would be out of control.
The treasury would pay it to the fed no?
A shell game. Either way, the treasury and the fed are both part of the federal government. The federal budget would be a nightmare. Keeping rates low with their subsequent increase in price is a win win for the fed. The instruments are “worth” more on an open market for selling.
It also gives any instruments tied to a federal interest rate a lower vig for the consumer no? This would have the effect of discretionary income going back into the economy instead of debt service no?
One of the feds congressional mandates is to “maintain moderate long term interest rates”. A lower interest rate can be argued to be “moderate”. Fullfilling the mandate no?
Fly,
A most illuminating perspective unearthed in this post. You are decoding the interstices of purpose and misdirection to filter noise and apprehend truth. People can’t process your deductions, nor possess the mental faculties to garner your process.
Best financial blogging site assembled. Period.
I wanna drink the low rates cool aid. Good for the REITs
Koko, any losing positions you are considering selling? I’ve got some idle cash and want to buy these names, please advise thx
Bought more Apple on the dip to $600 today. Every time this stock dips with the market, it’s bought.
The Fed returns the interest they earn on Treasury securities to the Gov’t. It would be unseemly for the Fed to make money off the US Treasury. But now they have these bonds to be sold for a profit…. Who gets the profits? Or takes the losses? Is that money just burned?
Blaming Plosser is as good as blaming Ric Santelli.
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… I think it’s only a matter of time till Santelli (can’t believe I’m sayin’ this) …
… RUNS FOR POLITICAL OFFICE !!!
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It’ll happen !
You heard it here first !!!
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… the “teabag goofs” out there will “eat his BS up with a spoon” !!!
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… all about MONEY and Backing !
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If the “Koch Brothers” etc … start whispering in his ear, and offer financing … Santelli will be coming to a “polling booth” near YOU !!!
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He’s got my vote!
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… not surprised !!!
If Santelli bludgeoned a baby seal to death with a Louisville Slugger … LIVE ON CNBC … you would prolly applaud that as well !!!
SIGH !!!
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NO!! I would recommend an AR-15 to the head.
One shot, One kill Very clean, Very efficient.
They could keep those treasuries on the balance sheet forever and really throw a curveball at us those sick fucks
They can hold the treasuries until they mature.
Why not?
I’m a big fan of handing out free condoms. However, Rickard stands next to Ronald Reagan in hell.
Ronald Reagan is siting next to Jesus.
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… apparently were never taught …
It is better to remain silent and be thought a fool … than to open your mouth and remove ALL doubt !
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alf, you don’t want to hear this but I can tell there is a conservative in you fighting to get out. Just let it happen, its going to be OK. I’m here for you buddy. It’s the “right” thing to do.
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… I didn’t realize POT was legal in Idaho !
You MUST BE HIGH !!!
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… OH !!!
I’m pretty sure you meant “sitting” !!!
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words is hard
http://sandiegofreepress.org/wp-content/uploads/2012/11/secdee.jpg
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… is that Rick Perry, our dumbass Texas Governor holdin’ up the “C” & “D” ?
LOL
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BUT!!! I’m a wiz with math. LOL!
You clowns do realize you’re all bearish right? And so is every other friggin person in the world
When I heard CNBC blame Charlie Plosser for the sell off I had to laugh. Charlie is the FOMC HAWK, nobody would expect anything else from him. Dudley on the other hand is a DOVE and his suggestion that they could raise before QE taper is done made me smile. Neverless, We have the EU going to lower rates to a neg rate, which would make sense why US Bonds look so good. Plus, if Draghi can;t follow up on his “I will do everything” talk that Itlay Bond will move up so fast and our safe US Bonds will look so sweet. Anyway, FOMC doesn’t care about the mess their QE Hot Money made in China, saying that CHina can handle it. They can’t and when that bubble blows it will end the bubble that has been forming since 2009 over there.
And when China catches a Cold, the world catches a Flu.
YOU ARE ALL GOING TO DIE.
Good night.
WTF?!! I login to read the comments and an ad pops up with my State’s governor’s ugly mug asking for my vote. WTF?!!
That’s how Fly makes his money now. lol!
(Just kidding) I thought that was funny.
Nymph you are saying the same shit as everyone else in the world. The market is in a bubble and it peaked last year 100 pts lower whatever that means. Not too many bulls or beliebers out there.
Yet Jon, We still haven’t popped. I actually have been following the bubble thesis since China had a strange amount of copper imports in 2009. I am very curious what finally pops it.
I still stick by my Latestage Bull
More leaders continue weakness. More sectors lagging. Fewer sectors lifting. Less new highs more new lows. Just need the financials to finally DIE. DIE
sorry. im calm. im calm
There is nothing to fear. The feeding tube previously known as the Japanese market held 14k. It really is that retarded.
abc or ibcTV should start “the bachelorette: THE FED GOVERNORS”. then you’d have shit like this all the time with everyone trying to nose dive with those white drapes of yellens – HOTT
the Fed will keep rates artificially low so that Detroit and Chicago can continue funding after-school centers and handing out condoms to vagrant teenagers
not even pocket change compares to NSA, DHS and the beltways bandits. They are the lions at the party, you are talking about the roaches who clean up the smallest of scraps after true carnivores have gorged at the federal trough