{"id":21707,"date":"2016-09-17T13:38:41","date_gmt":"2016-09-17T18:38:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21707"},"modified":"2016-09-17T13:38:41","modified_gmt":"2016-09-17T18:38:41","slug":"beware-central-banks-illusion-of-control-spitznagel-warns-if-the-fed-hikes-markets-will-go-down-very-very-hard","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21707","title":{"rendered":"Beware Central Banks&#8217; &#8220;Illusion Of Control&#8221;; Spitznagel Warns &#8220;If The Fed Hikes, Markets Will Go Down Very, Very Hard&#8221;"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-09-15\/beware-central-banks-illusion-control-spitznagel-warns-if-fed-hikes-markets-will-go-\">Beware Central Banks&#8217; &#8220;Illusion Of Control&#8221;; Spitznagel Warns &#8220;If The Fed Hikes, Markets Will Go Down Very, Very Hard&#8221;<\/a><\/h3>\n<section class=\"node node-type-story node-full node-nid-572323\" data-mediaconductor-processed=\"true\">\n<div class=\"content\">\n<p><strong>Central banks have created a bubble in the stock market, which will come down &#8220;very, very hard&#8221; when it finally prices in a series of Fed rate hikes<\/strong>, said Universa&#8217;s Mark Spitznagel, warning that\u00a0<strong><em>&#8220;the markets are absolutely not positioned for this.&#8221;<\/em><\/strong><\/p>\n<p>CNBC anchors were stunned into relative silence as Spitznagel unleashed truth-bomb after truth-bomb. Those &#8216;facts&#8217; are just hard to argue with&#8230;<\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=3000550773&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><u><strong>Key Excerpts&#8230;<\/strong><\/u><\/p>\n<p data-mediaconductor-processed=\"true\">CNBC: Well what\u2019s the precipitating factor?<\/p>\n<p>Spitznagel: Well,<strong>\u00a0<em>the ultimate cause of that would be the fact that the central banks got us here in the first place. Ultimately, my view is that central banks are the cause of bubbles.<\/em><\/strong><\/p>\n<p>CNBC: So you\u2019re betting essentially that the central banks, whether it be the Fed or the ECB, they can\u2019t unwind the trade that they put on years ago. It\u2019s going to be a\u00a0<strong>messy unwind for their trade.<\/strong><\/p>\n<p>Spitznagel: There\u2019s<strong>\u00a0no doubt about that.<\/strong><\/p>\n<p>CNBC:\u00a0<strong>But is that really a black swan?<\/strong>\u00a0Because you\u2019ve got all these people at Delivering Alpha talking about it, isn\u2019t a black swan supposed to be something that nobody is talking about? Godzilla attack on Tokyo, out of the blue, or something like that?<\/p>\n<p>Spitznagel:\u00a0<em>So\u00a0<strong>it\u2019s great that everyone\u2019s talking about this now. I had a little less company a few years ago when this was sort of building and now it\u2019s so obvious, you know, the casual user has become an addict, and now we\u2019re concerned about this. And that\u2019s great. But you\u2019re right it\u2019s not a black swan. The reason I\u2019m going to still call it a black swan is because the markets still price it as a black swan.<\/strong><\/em><\/p>\n<p><strong>.<\/strong>..<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Beware Central Banks&#8217; &#8220;Illusion Of Control&#8221;; Spitznagel Warns &#8220;If The Fed Hikes, Markets Will Go Down Very, Very Hard&#8221; Central banks have created a bubble in the stock market, which will come down &#8220;very, very hard&#8221; when it finally prices in a series of Fed rate hikes, said Universa&#8217;s Mark Spitznagel, warning that\u00a0&#8220;the markets are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,964,2299,303,8766,11633,2443,14295,3650,4318],"class_list":["post-21707","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-cnbc","tag-control","tag-fed","tag-illusion-of-control","tag-mark-spitznagel","tag-stock-markets","tag-universa","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21707"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21707\/revisions"}],"predecessor-version":[{"id":21708,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21707\/revisions\/21708"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}