Dallas Fed Prez Richard Fisher – not even a voting member on the FOMC this year – offers some of the rootinest, tootinest commentary on the market’s taper reaction this side of the Mississip. Here’s the remark he made today about how traders are blowing out of assets right in the Fed’s face as if in protest of the end of QE (including an invocation of the famous showdown between Soros and the B of E twenty years ago):
“Markets tend to test things. We haven’t forgotten what happened to the Bank of England [on Black Wednesday.] I don’t think anyone can break the Fed … But I do believe that big money does organize itself somewhat like feral hogs. If they detect a weakness or a bad scent, they go after it.”
If you listen closely, you can almost hear the sound of Fisher firing two revolvers into the sky, a sixer of Lone Star at his feet and the howl of a dog somewhere off in the distance. The “feral hogs” bit is what really got our attention – everybody loves varmints and critters!
Fisher also told the Financial Times that the Fed was concerned with carry trade and REIT market bubbles forming up again. No problem there anymore as pretty much everything has had the shit kicked out of it since last Wednesday anyway.
Typically it’s not a great idea to prevent potential bubbles by crashing the global economy preemptively, but what do I know?