I think he is right, he knows this massive 200%+ rally since 2009 lows is on the heels of the feds easy monetary policies, the fed is making it rain liquidity day in and day out on the market, when does it end? Or does it ever end, show me a free market that doesn't need handouts and zero interest rates and lets see how well this economy can do on its own, he also thinks the fed should NOT intervene in the markets during the next correction because the markets are "hyper overpriced, yea tell that to BUBBLE ben bernanke and now yellen, do you really think they won't "intervene" they will intervene as soon as the markets start to dip 4% from record highs, and you know QE 4 is already set and ready to go...... ....he thinks over time yellen and the fed will "engineer normalization", hahahah, now that I disagree with, over time, how much time? They should have engineered normalization back in 2009, you know what engineered normalization is, right? "FREE FUCKING MARKETS" thats engineered normalization at its finest....not the zero interest rates or the TARP or the QE's or the free Trillions, thats not market normalization...this market needs a real wake up call, needs to get back into reality and out of the make pretend fairy tale fed created dream its in....
Fisher sees correction risk as traders grow 'lazy'
Tom DiChristopher
Former Dallas Federal Reserve President Richard Fisher sees the potential for a market correction of "substantial magnitude" as traders have grown "lazy," he said on Friday.
"Are we vulnerable in my personal opinion to a significant equity market correction?
I do believe we are, and the reason for that is people have gotten lazy. They've depended totally on the Fed," he told CNBC's
"Squawk on the Street."
Fisher retired on Thursday, having occupied the Dallas Fed's highest office for the last decade. Regarded as a policy hawk, he frequently said the central bank should raise interest rates sooner rather than later.
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The
Federal Reserve has kept its federal funds rate close to zero since December 2008, flooding the market with liquidity. In a statement on Wednesday, it said it was unlikely to begin raising rates at its meeting in April.
Fisher brushed aside the idea that the Fed is responsible for conditioning laziness among traders by setting easy monetary policy, saying little is being done in terms of fiscal policy, which forced the central bank to keep rates abnormally low.
"Yes, we have ... conditioned the markets. I think the markets, however, have a responsibility to do their own work and expect that as the economy improves, things are going to change. Over time the [Fed Chair Janet]
Yellen committee will engineer normalization, however long that takes, and I think the market should get prepared for that," he said.
In the event of a market correction, the Fed should not intervene because the market is "hyper overpriced," he said.