The 34 Words That May Have Caused Today's Crash In Stocks

Submitted by Tyler Durden on 05/31/2013 18:33 -0400

There is much consternation about what triggered today's rapid escalation of selling pressure in US stocks. As the evening wends on and traders sip their Absinthe, it appears an embargoed record of the Fed's Advisory Panel minutes was at least a major concern as it raised the very real specter that those in charge are concerned at the monster they have created:

"There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices."

"Unsustainable bubble"? And this not from some fringe blog but... bankers?

And some bonus words, which have to be read to be believed:

Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses. Given the Fed’s balance sheet increase of approximately $2.5 trillion since 2008, the Fed may now be perceived as integral to the housing finance system.

Uhm... wow.

Full minutes below:

http://www.zerohedge.com/news/2013-05-31/34-words-may-have-caused-todays-crash-stocks