What Growth? – iftttwall

So here we are yet again, another FOMC day, and more new all-time highs as Yellen goes on to say that all is well, the economy is growing (which according to the FED itself it is not), she doesn’t see a bubble in the stock market, and that we still need more highly accommodative policy for years to come. The Fed has yet again tapered, reducing the rate of purchases by $10B to $35B/month. Yet the SPX exploded to the 20th new ATH this year, while bonds also made a move higher. The funniest part about the whole press confernce, after the release of the statement, was that nobody asked Yellen how the economy is still growing despite the following headline:

FED: 2014 GDP GROWTH OF 2.1%-2.3% VS 2.8%-3.0% IN MARCH

Fed in Sept ’12 had 2014 real GDP at 3.0-3.8%, now at 2.1-2.3%, but their 2015 rate dots are to be taken seriously?

— GreekFire23 (@GreekFire23) June 18, 2014

And the comedy doesn’t end there. She continues by saying:

YELLEN UNSURE ‘COMPLACENY’ IS REASON FOR LOW VOLATILITY

So here is Yellen, saying that the low volatilty we are seeing across all markets, is not due to complacency. What is it due to then? Is she talking about the same markets that do not price in any risk, climb on a daily basis with no pullbacks, and rip higher on any chance of central bank intervention? Today we also saw the June VIX settlement, which came in at 11.74, making that the lowest print since Feb 2007. VIX cash also collapsed to Feb 2007 levels, closing at 10.61. We are truly doomed. Until then, just BTFATH’s.

Yellen Sees No Bubbles, and “doesn’t see stock prices outside historic norms today”

SPX