iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,419 Blog Posts

Yellen Pushes Investors to Swing off the Gibbet; Yen Carry Trade Continues to Unravel

The market was up 187 at the highs.  If you’re just tuning in now, just know that Janet Yellen was a major disappointment. She’s sticking to her guns on HIKING rates, despite the fact that world markets plunge lower on a daily basis. She dismissed the lack of inflation as ‘transitory’ and repeated her singular positive bullet point of a ‘strong labor market’ as a reason to destroy the fabric of western finance.

Clearly she has ulterior motives.

As the day progressed, the Yen soared v the dollar, indicative of Yen carry trade holders unwinding their positions.

Yen

I don’t understand why so many in the media defend the actions of Janet Yellen. She is purposely being belligerent and is making things much worse. These people who support Yellen are either short stocks or have zero irons in the fire. They’re just talking heads with asshole opinions.

TLT has moved higher all day long, ever since Yellen’s prepared remarks were released.

The Fed no longer cares about equity holders; that much is abundantly clear and was communicated very clearly during today’s testimony.

I am long SPY/TLT and will continue to add to SPY on dips, dictated by Exodus, because we’re oversold. However, longer term, the bear will prevail over this market, so stay flexible.

 

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29 comments

  1. The Other Good Doctor
    The Other Good Doctor

    Great Bernank pics!

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  2. bexpo

    What would be Yellen’s ulterior motives?

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    • Dr. Fly

      send markets lower; clear out the debt ridden zombies to have a sustainable long term growth plan

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      • frog

        Well, I am all for a sustainable long term growth plan. Hope you are right, in that respect.

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    • frog

      Well, she can’t just say “The Fed is an organization of member banks. Our banks want to charge higher interest rates on mortgages, credit cards, business loans, and personal loans. So we’re raising rates, so our member banks can make more money from interest. Plus, all of us banks shorted the stocked market late last year, to make more money. At some surprise moment in the future, when I give our banks the signal, we’ll all buy to cover. The rest of you people just don’t matter.”

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      • infinitezuul

        Except bank stocks are getting pounded and executive pay is largely tied to stock options.

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      • frog

        She is trying to get the market down, as Fly mentions, temporarily. If the stock options are long dated, they will be recovering by next year or so, once the “sustainable long term growth” starts happening. She claims she expects commodities to go back up. Time will tell.

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      • it is showtime

        you guys are deluded

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  3. it is showtime

    How long did I say they may be answering to different agendas
    that may not be -in-line- with -your- expectations

    you got lulled
    with bullshithappy
    stock markets

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  4. infinitezuul

    The statement read well to me. Her voice and composure leave A LOT to be desired. A realistic question while listening to her answer fairly basic questions would be “Is this woman competent? Might she be slightly retarded?” Those sorts of questions should not be asked of the Fed Chair.

    Of course, she could ward off any scrutiny on her lack of decorum by arming herself with a much more dovish statement, but I think they are very afraid of bringing the Japanese analogy into play. The hike, reverse, and that was their all time stock market high back in December 1990.

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    • frog

      Her voice and composure issues are probably due to her age and the difficulty of testifying before Congress. She is intelligent. But if a Fed Head were retarded, it wouldn’t matter anyway. Because the Fed’s policies are not decided by one person. The Fed head is the spokesperson for the controllers of the most powerful banks on earth. I expect she thoroughly agrees with the consensus policies though.

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      • tradercaddy

        My Aunt Blooma (R.I.P) from Miami Beach sounded like that when she found out Uncle Leo had his entire inventory of Nehru jackets stolen out of his 1964 Ford Galaxy.

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  5. typebtrading

    The Fed doesn’t care about traders or Wall Street. Equity holders will be fine.

    As a long time reader and member of PPT and 12631 I feel obliged to say this blog has become progressively more doom and gloom over the past few months. The stakes are not as raised as you make them out to be. It feels a bit dramatic, maybe to pull more readers? At any rate the shift has been palpable.

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    • frog

      It’s been a trader focus, not a. long term investor focus. For traders who are not planning to buy and hold for years, this blog has showed their point of view. They were far better off selling when Fly did and then boarding the Ark with him, if they are looking at weeks or months, rather than years, as their time frame.

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  6. Dr. Fly

    So I am being overly dramatic, eh?

    Can someone please tell this man the market is being overly dramatic, not me. I am merely illuminating the news flow for you. If you choose to ignore it, that’s up to you. I believe I’ve provided a public service these past few months by working endless hours to help show readers what is going on.

    I’ve bee one step ahead of the curve every step of the way.

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  7. dragun

    its a war against the zombie corps as well as Putin. The crude trade is easiest way to drive them into the ground without firing a shot. In the meantime we sacrifice the shale plays – collateral damage/

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  8. frog

    BTW, since Europe has negative interest rates, maybe that is why Europeans are boarding the Ark, that is, U.S. bonds.

    Stocks don’t always go down when bonds go up. Europe’s negative interest rates make our positive bond rates look good by comparison. For that reason, Europeans may keep buying our bonds, regardless of whether the U.S. stocked market goes up, down, or nowhere and flat.

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  9. blahblahblah

    TWTR found the floor

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  10. bruce keller

    13 minutes until Elon eviscerates the stupid bears that didn’t realize driverless tech is coming quicker than we think. *Hugs* $TSLA

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  11. zerosum

    It’s possible oil found at least “a floor” for the moment. Maybe a very brief moment.

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  12. heaterman

    Who appointed her larded ass to the position she currently holds anyhow…….And who approved said appointment?
    Those are the ones that need a quick trip to the nearest gallows.

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    • frog

      The bankers appointed her. Well, technically the pres appointed her. But the Deep State, which includes the big bankers, has far more power than the president. The Deep State is said to tell the president and Congress what to do, not vice versa.

      http://billmoyers.com/2014/02/21/anatomy-of-the-deep-state/

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      • heaterman

        As scary as that is, it is logical when held up against some of the “wtf are they thinking”, events and goings on you see come out of DC.

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  13. mikeaboca

    Dr Fly Why TLT over EDV ?

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  14. t.c.

    ROOOOOAAAAARRRRRR

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