“We Front-loaded A Tremendous Market Rally” Admits Richard Fisher
Former Dallas Fed CEO and President Richard Fisher exposed to the public some very uncomfortable truths during an interview on CNBC. While pundits at CNBC started to blame China for recent US market volatility, Fisher explained “It is not China.” He claims it is The Fed that is at fault: “What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect… and an uncomfortable digestive period is likely now.”
He then added,
“The Fed is a giant weapon that has no ammunition left.”
Pundit Simon Hobbs asked Richard “Will The Fed come on and say ‘we’re sorry, we over-inflated the market’ when it crashes?” We doubt it.
Fisher claims he was against QE3 which is what has forced “valuations to be very richly priced.”
In his decade-long tenure at The Fed, he claimed everybody was looking at the Fed to float all boats. “What I do worry about is it was The Fed, The Fed, The Fed… in my opinion they got lazy.. and it is time to go back to fundamental analysis… and not just expect the tide to lift all boats… and as [The Fed] tide recedes we are going to see who is wearing a bathing suit and who is not”
Must watch, when a shocked Simon Hobbs comes out and says to Richard Fisher “This has been an absolutely extraordinary interview. For you to say ‘I was one of the central bankers who engineered the front end loading of the banks. We did it to create a wealth effect’, And then come on and tell us with a big smile on your face we’re overpriced…that there would be some digestive problems…” is incredible. Hobbs adds “Will The Fed come on and say ‘we’re sorry, we over-inflated the market’ when it crashes?”
Here is the full interview from Zero Hedge’s YouTube site. https://youtu.be/7nuzT3rchPU
The CNBC Video from their website has been deliberately cut short so we suggest you watch the full interview on Zero Hedge’s site
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