Jeff Gundlach aka ‘the new Bill Gross’ is giving it to the Fed for prematurely hiking rates, as he was one of their most vocal critiques. He suggested the recent sell off as having the trappings of liquidation or margin call selling and then pointed to oil as a result of a ZIRP policy gone awry, coupled with global weakness.
Oil is in massive oversupply due to ZIRP (zero interest-rate policy) induced over-investment,” he said. “And crashing oil is not the cause of all this chaos, it is a symptom of global economic weakness. As are all the tumbling risk markets. We have insufficient and dwindling global growth.”
Gundlach, who had repeatedly warned that the Fed prematurely raised rates in December, said: “The market is going to humiliate the Fed.”
Gundlach said Fed officials need to soften their rhetoric on hiking rates further. He said he does not think the Fed will be able to raise interest rates eight times over the next two years, as reflected in its ‘dot plot.’
For those unfamiliar with the inane ‘dot plot’: it is a psychotic plan by Janet Yellen, probably conjured up in a NYC deli, where the Fed would hike interest rates 16 times over the next 3 years. Really, it’s clownishly funny, especially when considering how the market faired with just 1 hike.
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OK the Mario Threat is here for us Bears. Looks like they could act in March. Let’s see if the Bulls take hope from it. Futures are up.
Not just Fed to blame. U.S. Corporations projected U.S. business practices onto China & Saudi Arabia & other countries too….trusting countries to conduct business in a steadfast responsible way – even though they saw firsthand how batshit crazy things were. Imagine being in SA & seeing half of the population dressed as ghosts & not allowed to DO ANYTHING? That should be a clue to not depend on OPEC. After witnessing slave labor factories in China & know hotel rooms were often bugged (in early days anyway) desperate to become World Leader. Then enact completely one sided trade deals that punish U.S. workers…short Term Greed.
OK Bulls, Mario D from ECB said he will NEVER GIVE UP and will do everything Necessary. If you can’t rally on that, then hello SPX 1800 for today and SPX 1755ish next week. And tons of Blood until at least March before us Bears rest a bit.
LOL no offense Fly but you guys are turning straight Zero Hedge up in here. 🙂 This bounce may have some juice for like a week from all the people still really bearish. I mean, we’re not out of a bear yet, but even dead cats bounce a little bit.
Word.
Fly U straight up cra…this year has been a disaster. So the Fed raised rates , this was coming no matter what. Inho
The Tape is Red after Super Mario gave you Bulls all his magic Talk. Bulls are so screwed.
Are you using internet explorer? It just bounced hard. Oil inventories in 54 minutes is the key though.
Oil #’s will make or break this day