Fed confessional: don't blame it on China.

Richard Fisher from the federal reserve admits that  the fed manipulated the stock markets up in order to create a wealth effect.  That means that it is totally artificial and in Fisher's words, "fed engineered".  As I have stated in the past, when you see former officials come out of the woodwork with what essentially amount to admissions and confessions, be afraid because these are bear market (return to conservatism) actions.  NOBODY tells the sheeple what the scam is on the way up (well, present company excepted) but many tell tales out of school like Fisher did when the collapse is upon us.

Why do they do it?  What was in it for Fisher?  Probably wanted to cleanse his conscience and also to garner favor from the people for being honest about it, even if that honesty comes AFTER Fisher already cashed in at the fed and AFTER all the damage has been done.  I think it is very telling how in the video above, the British Squawk Box guy calls Fishers smug ass onto the carpet telling him, "This has been an absolutely extraordinary interview.  For you to come on here and for you to say I was one of the central bankers who engineered the front loading of the banks, we did it to create a wealth effect and then to go on and tell us with a big smile on your face that we're overpriced which is the word that you used... that there will be some digestive problems are you guys going to take the rap if there is a serious correction in this market?  Will you equally come on and say I'm really sorry we over inflated the market which is a logical conclusion from what you've said so far in this interview.".

Upon hearing that, Fisher suddenly began backpedaling, no longer quite so smug.  He first said he voted against QE3 but then followed up to indicate that all the fed governors were in agreement about it (in other words, don't just look at him personally, look at the institution of the fed), and then he mentioned that it all happened under Ben Bernanke (ensuring that people focus back on him even though he exited before the shit began to hit the fan) and then he went on to say how you really can't blame the central bankers for it because of the problems that were present at the time, etc.

I have to say, Fisher is a lot dumber than I thought.  He went in there laughing and chuckling and basically told the world that not only is the US stock market an artificial Ponzi pump but also that China can't be blamed and also that it was all done on purpose and now the fed is out of ammo.  My God, why not just accuse Yellen of murder and Bernanke of pedophilia while you're at it??  Fisher, you DO realize that a vote is coming up soon to audit the fed, don't you?  You DO realize that this public admission is going to push a LOT of people into supporting this don't you?

I predict that the fed will be audited within 18 months and that it will involve a massive witch hunt because the stock market will collapse once the markets see their buddy the fed get that kind of scrutiny.  No more nod nod wink wink between the fed and Wall St folks.  This is getting really dangerous really quickly.  It's time to tell your friends and family to GTFO of this Ponzi pump because with Fisher's admission that everything I have been writing for years now is true, the markets are going to react badly in 2016.

Of course, the wave count was already signaling this, wasn't it?  Buy UVXY on the 3 wave dip.