Fed's First Rate Hike In 9 Years Sparks "Goldilocks" Buying Of Risk Assets

 

On The Important Role Of Recessions - Austrians Had It Right

Submitted by Tyler Durden on 12/16/2015 - 16:30 The continued misuse of capital and continued erroneous monetary policies have instigated not only the recent downturn but actually 30 years of an insidious slow moving infection that has destroyed the American legacy. “Recessions” should be embraced and utilized to clear the “excesses” that accrue in the economic system during the first half of the economic growth cycle. Trying to delay the inevitable, only makes the inevitable that much worse in the end.

Fed Hikes Rates, Unleashing First Tightening Cycle In Over 11 Years

Submitted by Tyler Durden on 12/16/2015 - 14:00 On the 7th anniversary of entering ZIRP, and for the first time since June 29th 2006, The Federal Reserve announced today that it will try and raise interest rates:
*FED RAISES INTEREST RATES 0.25 POINT IN UNANIMOUS VOTE
Of course, the flowery language and dots are as dovish as possible while maintaining some semblance of credibility with regard growth expectations as The Fed unleashes a tightening cycle for the first time in over 11 years. Pre-FOMC: S&P Futs 2050, 2Y 98bps, 10Y 2.29%, Gold $1072, Oil $36, EURUSD 1.0960

Billionaire Sam Zell Warns The Fed Is Too Late, "Recession Likely In Next 12 Months"

Submitted by Tyler Durden on 12/16/2015 - 15:57 “I think this interest rate hike is too late. This economy is closer to falling over than it is to going up. I think there’s a high probability that we’re looking at a recession in the next twelve months."

Caught On Tape: Chaotic Aftermath Of A Russian Strike On ISIS Oil Tankers

Submitted by Tyler Durden on 12/16/2015 - 15:51 "Over several past weeks, the intensity of air strikes at Islamic State and other terrorist targets has been increased. Russian warplanes focus on exterminating terrorists’ income sources in Syria."

The Sellside Reacts To The First Rate Hike In Years: "It's Calm On The Floor"

Submitted by Tyler Durden on 12/16/2015 - 15:48 While Yellen still speaks in her historic "first rate hike in years" press conference, the sellside has shares its kneejerk reaction to the Fed's announcement, and as Citi notes, "It’s calm on the floor considering the first rate hike in years. More attention on WTI crude, which remains 4% lower to 35.80 after DOE inventory build."

Fed Reveals Rate Hike "Plumbing" Details: Removes Cap On Reverse Repos, Limits Each Counterparty To $30 Billion

Submitted by Tyler Durden on 12/16/2015 - 15:20 Perhaps even more important than the actual rate hike announcement, the one statement the market was particularly focused on was the Fed's "implementation note", which lays out the Fed's thought process on how it will actually raise rates in order to maintain the Fed Funds in the 0.25%-0.50% range. What it reveals is that in addition to removing the daily limit on aggregate borrowings through its overnight reverse repurchase facility, previously set at $300 billion (recall that according to Citi, the Fed may need to drain up to $1 trillion in excess liquidity to effect the 25 bps hike), it will have a per counterparty limit of $30 billion per day, which may or may not be enough.

Dollar & Crude Dumped, Bonds Pumped As Yellen Jawboning Saves Stocks

Submitted by Tyler Durden on 12/16/2015 - 15:06 Stocks were not impressed at all out of the gate but once Janet started talking, the algos lifted them to the highs (and of course gold was whacked). Crude oil was dumped, along with "sell the news" USDollar longs. Bonds were well bid at the long-end...

“DEPENDENT” ON WHAT?

by Andy Hoffman, Miles Franklin:
“Twas the night before a (likely) rate hike”; and not a creature,” certainly on Wall Street, or in Washington or the MSM, is the slightest bit worried.  After all, the PPT’s day-and-a-half “hail mary” rally has, for now, reversed perception of the reality of a collapsing global economy to the oasis of “recovery” – by goosing the “Dow Jones Propaganda Average” 400 points, amidst an environment of some of the ugliest economic developments to date.
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Unchanged 2016 Fed Funds Median "Dot" Signals Fed Expects 4 Rate Hikes In 2016

Market Confidence In The Fed's Policy Error (Summed Up In 1 Chart)

Submitted by Tyler Durden on 12/16/2015 - 14:59 While The Fed is confidently rising rates, the market is signalling its belief that this is a policy error. Not only are longer-dated bond yields lower but short-term money-market expectations for January now see a higher chance of a rate-cut, than a rate-hike.

Janet Yellen Explains Why Rate-Hikes Are Bullish - Live Feed

Submitted by Tyler Durden on 12/16/2015 - 14:57 In her first post-rate-hike press conference, Janet Yellen is about to go to extreme lengths to explain just how dovishly bullish raising interest rates is, despite leaving the Fed Funds forecast unchanged since September (i.,e. not dovish). We look forward to her explaining why she is raising rates now - as opposed to September - as economic data has nosedived and the market has done a significant job on contracting credit already. We also look forward to her explaining how, if rate hikes on the path to normalization are so awesome, why is the willingness to do it so low?

Fed Mouthpiece Reads Liftoff Tea Leaves

Submitted by Tyler Durden on 12/16/2015 - 14:57 "When the Fed moves next will depend importantly on how inflation evolves. The Fed’s preferred measure of inflation has run below its 2% objective for more than three years. The central bank focused extra attention on the inflation outlook in its statement, saying it would “carefully monitor” actual and expected progress toward the goal. This point implied the Fed will be reluctant to raise rates again unless it sees inflation actually moving up. For now, officials said they were “reasonably confident” inflation would rise."

Pre-Fed Caption Contest: The Three Stooges

Submitted by Tyler Durden on 12/16/2015 - 13:45 Is Janet about to greatly disappoint Larry, Curly, and Moe...?

Interview Willem Middelkoop About The Big Reset

by Koos Jansen, Bullion Star:

The very reason I became interested in gold after the financial crisis in 2008 was because of Dutch gold guru, author, journalist, entrepreneur, and fund manager Willem Middelkoop. When I started reading his books I was immediately obsessed with economics and the gold market – along with thousands of others across the world.  Who would have thought that I would become a precious metals analyst a few years later?
It was an honor to have contributed to Willem’s latest book The Big Reset with translations from Chinese policy makers that stimulate their citizenry to accumulate physical gold and my initial research into the Shanghai Gold Exchange that revealed Chinese gold demand was approximately twice a large as what was previously thought in the English-speaking world.
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REJECTED: US AND BRITISH FORCES ‘NOT WANTED’

from TheNextNewsNetwork:

News Channels Are Terror Delivery Systems; Politicians Are Terror Exploitation Specialists

by Alastair Crooke, The Burning Platform:
Terrorists need news channels and vice-versa. Politicians need terrorists and vice-versa. There’s a symbiosis between these three that works like this:
Terrorists create and feed off of fear.
News channels deliver fear to the masses.
Politicians use fear to get what they want.
Some people may object to these facts being specified, but they’re true just the same.
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When Will Martial Law Be Implemented? Ask Your Pastor

by Dave Hodges, The Common Sense Show:

I have never seen a time such as the one we are living in. We have so simultaneous threats to our health and well-being, that it is difficult to know where to begin. ISIS is running rampant across America. The Russians and Chinese are bombarding us with cyber attacks on a moment by moment basis. Obama has left the Alaskan back door open for Russian invasion, China and Russia have married their economies, the Petrodollar is under extreme attack, the Russian and Chinese are producing a super class of weapons, while Obama has gutted the military leadership in this country.
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