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Buy Stocks, Buy Bonds: Carry Orgy Leads To "Buy Everything" Binge Session, And Today's Compression Opportunity

Tyler Durden's picture




 

To think, just as stocks had started to demonstrate some semblance of normalcy we get... today. Whether it is due to some unfounded rumor that Bernanke will say something surprising tomorrow, or disclose something that he is unprepared to disclose, we are seeing another carry fueled binge resulting in a total divergence (or technically convergence) between the two traditionally inversely correlating asset classes: stocks and bonds. As the chart below demonstrates, while the two had been trending in perfect unison yesterday, today we are seeing a substantial decoupling between the 2s10s30s butterfly, which is also indicative of bidding interest focused on the 10 year, and thus is an indicator of a smoothing of the treasury curve: something traditionally associated with stock market weakness. But not today. Which is why at this point a compression trade seems warranted with an up to 40 ES equivalent point pick up.

Butterfly vs ES:

The same seen just by looking at the divergence between the 10 Year and the ES:

And the cross asset binge in which the latest reload in the USD carry trade (not the Repo-GC one: that is back to 3 bps) is once again used to literally convert USD weakness into asset class gains. Across the board. And with profit taking happening in PMs today, the bulk of free capital is fleeing into the below 3 core assets.

h/t Capital Context

 

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Tue, 04/26/2011 - 15:50 | 1208824 Alcoholic Nativ...
Alcoholic Native American's picture

Buy the fucken dip bitches

Tue, 04/26/2011 - 16:28 | 1208995 Cash_is_Trash
Cash_is_Trash's picture

The dip lies between today and tomorrow.

Come on jump from $45 to $50 by end of week.

Tue, 04/26/2011 - 21:27 | 1209851 bigelkhorn
bigelkhorn's picture

1400 On The S&P Coming? http://bit.ly/gOBvRc

better get ready for it, they will keep melting up this market until they well, dont feel like doing it any more. That time has not come yet. 

So it is up and up we go!

Tue, 04/26/2011 - 15:51 | 1208827 vote_libertaria...
vote_libertarian_party's picture

Does anybody track bond volume over time?  I can see the up days for stocks = no volume but I don't know that answer for bonds.

Tue, 04/26/2011 - 16:19 | 1208948 rocker
rocker's picture

Looks like the volume is increasing on up days. Somebody is buying for the safe haven. What do they see as being unsafe.

I got stopped out of TBT and TBF today. Which shorts bonds. Looks like buying them might be smart for now.

Tue, 04/26/2011 - 17:25 | 1209230 X. Kurt OSis
X. Kurt OSis's picture

Bonds are a little bit more difficulty to nail down.  Primary and secondary market supply is light right now in US HG and HY corporates, but that's just end of quarter/holiday week type volume.  Supply in muni's is almost non-existent.  Up until now, supply in both HG and HY was strong versus 2008/09 lows.  Single A industrial spreads are about 20 tighter year over year and through pre-crisis tights.  There has been no volatility in cash spreads, a little sector specific CDS spread volatility and interest rates in general have moved around in a 50 basis point range across the curve but largerly a bunch of round trips.  The bond market hasn't budged since it corrected back in from the Greek thing/oil spill last year.

Pretty much a zero vol melt up in every financial asset class.

Tue, 04/26/2011 - 15:53 | 1208830 Long-John-Silver
Long-John-Silver's picture

What do the insiders know, and when did they know it?

Tue, 04/26/2011 - 16:02 | 1208862 disabledvet
disabledvet's picture

ask "the man in charge" tomorrow at his "coming out party" and "shit."  they REALLY ARE RUNNING THE COUNTRY RIGHT NOW!

Tue, 04/26/2011 - 16:22 | 1208971 rocker
rocker's picture

As ZH has repeatedly shown us. Insiders of company stocks have been selling at about a 1000 to 1 for weeks, months, and years. This thing has to pop soon. Hedge funds game now. That includes jail bait GS.

Tue, 04/26/2011 - 16:39 | 1209061 equity_momo
equity_momo's picture

Just curious when were they not really running the country?

Wed, 04/27/2011 - 01:27 | 1210293 LudwigVon
LudwigVon's picture

After AJ finished them for dinner till just before WoodyWilson...ie: not in our lifetimes!

Wed, 04/27/2011 - 01:30 | 1210295 LudwigVon
LudwigVon's picture

It really is too bad there weren't twin mis-fires when they shot at Kennedy, coulda saved a ton of lives without the Fed...

Tue, 04/26/2011 - 15:54 | 1208836 topcallingtroll
topcallingtroll's picture

Maybe Goldilocks is back?

If true, just remember that goldilocks is the destroyer of ( precious metal) worlds.

Tue, 04/26/2011 - 16:43 | 1209075 equity_momo
equity_momo's picture

I love the Goldilocks meme. Its so very ironic the story involves bears. The 90s Goldilocks theory under Greenspan was the greatest bull trap ever created.

Tue, 04/26/2011 - 15:57 | 1208847 plocequ1
plocequ1's picture

Translated.. Buy stocks and ignore all  future futile rants

Tue, 04/26/2011 - 15:59 | 1208849 long juan silver
long juan silver's picture

Buy Industrial Stocks. aHHH THAT WEAK $$

Tue, 04/26/2011 - 16:05 | 1208853 digalert
digalert's picture

Reuters:

Fed seen signaling no rush for the exit

http://www.reuters.com/article/2011/04/26/us-usa-fed-idUSTRE73P40H20110426

Tue, 04/26/2011 - 17:09 | 1209175 ghostfaceinvestah
ghostfaceinvestah's picture

ZIRP isn't enough.  In fact, ZIRP does more harm than good, it is actually deflationary.

Benocide needs to grow the Fed balance sheet in order to keep up this charade, or it all collapses.  Even keeping the balance sheet the same size is not enough.  Just watch.

Tue, 04/26/2011 - 16:01 | 1208856 Sudden Debt
Sudden Debt's picture

Zero rate maintained. If he does raise it to 0,25% he's still in the "save" zone, but 1% would crash it all.

I really can't see why he wouldn't keep it near zero.

 

Tue, 04/26/2011 - 16:00 | 1208863 johny2
johny2's picture

Bernanke will tomorrow remind everyone that QE to infinity is continuing. And that he backs strong dollar.

Tue, 04/26/2011 - 16:03 | 1208876 SheepDog-One
SheepDog-One's picture

China will be listening in, and commence their dumping of $2 trillion worth of dollar debt on any words like that.

Tue, 04/26/2011 - 16:23 | 1208957 johny2
johny2's picture

They can't dump it so easily. They can only complain, but they are just as guilty as FED. You really think that the QE is going to stop permanently in june?

 

Tue, 04/26/2011 - 16:33 | 1209034 Magnix
Magnix's picture

No, you never know what Chinese can do. We dont trust them.

Tue, 04/26/2011 - 16:04 | 1208869 10kby2k
10kby2k's picture

The Fed is forcing all cash to capitulate. Money market funds have fallen $1 trillion.  Cash is a loser---buy anything. 

What a recipe for disaster----devalue dollar and keep rates at zero.

This is sooooooooooo fucked up.  Its a big game of chicken.

 

Tue, 04/26/2011 - 16:16 | 1208927 topcallingtroll
topcallingtroll's picture

Wacha gonna do? Party on I suppose.

Tue, 04/26/2011 - 16:32 | 1209014 rocker
rocker's picture

Looks like sell in May is alive. Sell positions. Hold physical PMs already purchase. Save cash for the August bottom in PMs.  Looks like wave three termination on most.  Otherwise, the BOTs will chew you up. Maybe they will let the market actually correct. 

Time to shine the Harley and Boat up. Did someone say "Party".    Yup !!!   

Tue, 04/26/2011 - 17:56 | 1209325 Yancey Ward
Yancey Ward's picture

I don't know about you, but I am off to KFC!

Tue, 04/26/2011 - 16:05 | 1208874 High Plains Drifter
High Plains Drifter's picture

the bernank says,  QE 3 is on bitchez..........don't believe the hype....

Tue, 04/26/2011 - 16:07 | 1208883 SheepDog-One
SheepDog-One's picture

If he says 'unchanged', fine with me, dollar resumes its decline.

Tue, 04/26/2011 - 16:05 | 1208885 disabledvet
disabledvet's picture

I want "some fireworks at Eccles" tomorrow.  I want our Living Dictator to actually "dictate" a little.  Some "slip of the tongue" along the lines of "I do love it so" (while looking into outer space...and "to the left") or "President Hu?" or something.  Also "not all stocks are partying today"--a few in fact are getting crushed.  "I feel your tears."

Tue, 04/26/2011 - 19:52 | 1209648 cnbcsucks
cnbcsucks's picture

Correct - In fact, most of what moved the S&P today was the action in 5 of the top 20 stocks. 

 

Tue, 04/26/2011 - 16:12 | 1208889 Quack41
Quack41's picture

Someone knows something-- and it ain't me. when things do n't behave normally it's time to square up ....

Tue, 04/26/2011 - 17:34 | 1209254 Josh Randall
Josh Randall's picture

10-4, Roger that, etc...the fix is in (not that it never isn't) but this thing is behaving like a Spam Burrito in a baby's belly, this market is all over the place and going to explode itself and smell bad when it does. But you can d@mn well bet Insiders are playing their part and doing what they're told 

Tue, 04/26/2011 - 16:10 | 1208892 SheepDog-One
SheepDog-One's picture

When everyone is in total agreement about what will obviously happen next, I cash in and step away from the table. Good luck from here on out, youll need it.

Tue, 04/26/2011 - 16:07 | 1208893 firstdivision
firstdivision's picture

market going nuts in AH here.

Tue, 04/26/2011 - 16:11 | 1208900 SheepDog-One
SheepDog-One's picture

Dollar goin nuts....73.7. All I need to know.

Tue, 04/26/2011 - 16:12 | 1208909 Racer
Racer's picture

In the last couple of weeks the only time the market 'really' moved was in out of hours

Tue, 04/26/2011 - 16:15 | 1208920 SheepDog-One
SheepDog-One's picture

Racer...the entire market move since DOW 6,500 has been done AFTER HOURS!

Tue, 04/26/2011 - 16:17 | 1208935 Racer
Racer's picture

Very true, but they did some big jumps recently having sucked some more shorts back in again with fake resistance levels

Tue, 04/26/2011 - 16:09 | 1208901 bulbar
bulbar's picture

Hey ZH morons...how does it feel to be right yet wrong all at the same time?  I've owned this market all the way up while you've been just whining away.  It may all fall apart some day but at least I'll have more to live off of than you will.  If you can't beat 'em, join 'em.  Don't fight the Fed.  Yeeehaaaaw

Tue, 04/26/2011 - 16:10 | 1208911 SheepDog-One
SheepDog-One's picture

Better hope your stocks keep going up just to stay even with the collapsing dollar dumbass.

Tue, 04/26/2011 - 16:15 | 1208922 bulbar
bulbar's picture

Whoze the dumbazz here?  I'm up 30%.  How bout you fool?  Yeeehaaaw

Tue, 04/26/2011 - 16:17 | 1208932 SheepDog-One
SheepDog-One's picture

30%? Moron Ive done over 400% in the last 2 years, take your BS 30% chump change and Cramerhole that shit.

Tue, 04/26/2011 - 16:24 | 1208967 bulbar
bulbar's picture

Woops I meant 3000%.  Yeeehaaaw

Tue, 04/26/2011 - 16:28 | 1209008 SheepDog-One
SheepDog-One's picture

Ohhhhh ok I see.....

Tue, 04/26/2011 - 16:17 | 1208933 css1971
css1971's picture

30% is nothing to be proud of in this market.

Tue, 04/26/2011 - 16:26 | 1208982 Sudden Debt
Sudden Debt's picture

I'm up 112% in the last 8 months on my investments. None of them in stocks.

How many stocks do you know that do that?

 

Tue, 04/26/2011 - 16:33 | 1209035 digalert
digalert's picture

Whoze the dumbazz here?  I'm up 30%

Woops I meant 3000%.  Yeeehaaaw

A dyslexic moron is outed...troll

Tue, 04/26/2011 - 17:15 | 1209192 mayhem_korner
mayhem_korner's picture

I'm up 30%.

I hear that a lot at casinos.  Doesn't count until you walk away.

BTW, my 7-year-old found a 1961 quarter in late Feb.  The melt value's up 40% since she found it. 

What we're really interested in is your plan when you cash out of your huge (sic) gains.  Do tell...

Tue, 04/26/2011 - 20:35 | 1209739 Hephasteus
Hephasteus's picture

My friend started converting his 1967 camaro to a pro-street rod.

Good job, wife good job. Started throwing papers for extra cash.

About 25 grand into it started gambling some.

We won 90 bucks. How much did you lose. 120 bucks. So you lost 30 bucks. Ya but we won 90 bucks.

Wife gets tired of all the work wants to quit the extra route work. Marriage starts getting rocky. He's still pumping a couple grand a month into it and working on it 20 hours a week as it's all falling apart.

This is america. They want all these expensive military projects these expensive computer projects even though they don't fund themselves pay for themselves or give you any benefit.

You got ISP's and cable companies trying to charge amercians outrageous prices for tv and internet. Things get tight. People start dumping extra channels extra packages super fast internet. Revenues plunge. Then it comes down to what people want. People just want basic tv and internet and they try to jack it up to super high speed internet price with the 158 channels. Hollywood owns all our cable tv and cable internet companies. They keep trying to come up with 300 million bucks to pay some fucktard actor or actress when it's not there. Then it becomes a pimp NO JOHN war. They stop acting like they pimping for people that are using the service and start trying to make people who just want to check email browse internet come up with 65 million bucks to pay some stupid ass fucking disgusting kim cardashian to do a shitty ass reality tv show that 12 people watch.

Cramazon is the cloud pimp. The idea is your hard drive can show data on you computer for 65 bucks flat and no month fee and lasts for 3 to 12 years generally. But with cloud you store everyting and have to pump it through the communications systems that HOLLYWOOD owns. If they can get people to give up their local storage and start demanding the 10 mb/sec internet instead of being happy as shit with the 3mb or 2 mb internet then can replace a 60 dollar hard drive sale with a 60 dollar a MONTH rental fee in the form of ISP charges and then tack on more fees for tech supporting it when it stops fucking working.

They want to get control of everything you want or need or use. And blackmail the shit out of you with higher and higher prices.

It won't be long until they invent cloud refrigerators and start charging you 5 bucks to pull the food you bought out of the cloud fucking refrigerator just so you can cook dinner.

These are all 2nd house/8th house issues. Your resources versus someone elses resources. Under a guise of having a bunch of servants make your life easier they think they can create a world where you have a bunch of masters blackmailing you constantly pretending to be servants. Then you LOSE all control over who gets rewarded and who gets punished. They've already taken punishment COMPLETELY out of your hands through the courts and cops and soldiers. Now they want to take REWARD completely out of your hands and make you reward people that you may not like, may not respect and may wish were fucking dead. At the very least you will just want them to shut the fuck up but that won't happen because thier PIMPS will be splashing them all over the place.

It's fucking tough if broke ass credit fucks were responsible for stupid ass sports stars and  hollywood cunts paychecks. But when they start trying trying to make poorer and poorer segments of society pay for it things are going to get ugly.

If people do not hack slash and fucking burn hollywood completely out of the internet and data communications they will have the most gawd awful piece of shit system you an imagine. You want to fix charlie sheens coke addiction and stupid attention whoring and tv and internet rants. STOP FUCKING LETTING HOLLYWOOD handle yo fucking IT.

Fuck your taxes.

Fuck your cloud.

Fuck your centralization.

Fuck your amazon.

 

Tue, 04/26/2011 - 20:54 | 1209766 mayhem_korner
mayhem_korner's picture

Umm...how's that detox going...?

Tue, 04/26/2011 - 16:15 | 1208936 Richard Head
Richard Head's picture

We're all impressed by your tough talk and unsubstantiated claims.  Do you also happen to have a Ferrari and a beach house?

Tue, 04/26/2011 - 16:26 | 1208983 long juan silver
long juan silver's picture

Yes, for your edification, both are in Manna del Cantone.

Tue, 04/26/2011 - 16:20 | 1208946 duncecap rack
duncecap rack's picture

Lots of people who talk like you have barged in here, then later slunk out quietly.

Tue, 04/26/2011 - 16:22 | 1208975 Korrath
Korrath's picture

So you've stocked up on an asset that is progressively lossing value on a daily basis, while admiting that that same asset will most likely be worthless at some point in the future?

Trolling attempt = fail.

 

 

 

Tue, 04/26/2011 - 16:23 | 1208984 bothsidesnow
bothsidesnow's picture

Many here live to Fight the Fed. They have bought into the popular kill the Fed movement.

They are betting on the end of the world and as Art Cashen said in the midst of the 2008 crash "Betting on the end of the world is a bad bet it only happens once."

 

Tue, 04/26/2011 - 16:44 | 1209078 rocker
rocker's picture

Knowing the difference between fighting the FED and reality that has not yet hit is not the same.

Our market has gone threw many double dip recessions and long periods of no real gains. The FED has all in again.

We are Japan now. Like it or not. The FED is doing the same thing that Japan did.  Zombie banks and Zimbabwe dollars.

Tue, 04/26/2011 - 17:00 | 1209149 SheepDog-One
SheepDog-One's picture

Exactly, we have no course but a slow death. And theyre cowards so there will be no quick death.
Only more Bennie bucks flying out at 0%, they have no choice, I dont care how they dress it up its a pig.

Wed, 04/27/2011 - 01:49 | 1210313 LudwigVon
LudwigVon's picture

Many here live to Fight the Fed.

 

Yeah, a lot of people here live to earn wealth/Gold, in this way they can store their labor for future needs. What is so groundbreaking about your comment? Who would not "fight" what steals from their children and enables & encourages WAR? I don't get it...

Are you just saying that you do not fully understand classical economics?

Tue, 04/26/2011 - 17:13 | 1209197 ghostfaceinvestah
ghostfaceinvestah's picture

"Fight The Fed" = Buy gold

Worked pretty well since Bernanke started printing money in 2008

Tue, 04/26/2011 - 16:39 | 1209050 firstdivision
firstdivision's picture

Your stupidity reminds me of these guys

http://www.cnbc.com/id/42766400

Tue, 04/26/2011 - 17:20 | 1209218 homersimpson
homersimpson's picture

MATHMAN is BACK... AND DUMBER THAN EVER.

Tue, 04/26/2011 - 18:55 | 1209499 Pepe
Pepe's picture

How does it feel to see the corral's fence in the distance? Do you know what is beyond the corral? The slaughter house. At least you enjoyed the ride

Tue, 04/26/2011 - 16:12 | 1208908 gwar5
gwar5's picture

I can see QE 3 from my house.

Tue, 04/26/2011 - 16:11 | 1208913 SheepDog-One
SheepDog-One's picture

QE3? I hope they do...PM's will race back over recent highs without a bit of resistance as the dollar plunges.

Tue, 04/26/2011 - 16:16 | 1208939 topcallingtroll
topcallingtroll's picture

Lmao! With those credentials you are now an expert in the subject.

Tue, 04/26/2011 - 16:13 | 1208918 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Hey, do you guys remember the days when the market didn't move solely based on a bald criminal jews had to periodically say?

It's hard to remember those good old days...

... land of the brave, home of the free, what a sick joke. You are owned.

Tue, 04/26/2011 - 16:24 | 1208924 SheepDog-One
SheepDog-One's picture

Hard to remember back that far. You know what Im really sick of, all these Jooz knowing what the next move will be 2 days ahead of time, bunch of crap.
No worries, safe full of PM's bought years ago for this very reason, and I see NOTHING to change my opinion at all.
Further dollar destruction is all that lies ahead.

Tue, 04/26/2011 - 16:35 | 1209029 topcallingtroll
topcallingtroll's picture

Hey talmud kid. Good to have you back. How was your stay in eastern europe?

Satansunas and any of you witty jewboys come out and play!

Tue, 04/26/2011 - 16:47 | 1209094 rocker
rocker's picture

Hey FunkyMonkeyBoy,

   Please tell me that the Bernanke is not a jew.  If he is, it explains all.

Tue, 04/26/2011 - 16:55 | 1209139 SheepDog-One
SheepDog-One's picture

'Ben Shalom Bernanke', his actual name. Think hes a Jew?

Tue, 04/26/2011 - 21:01 | 1209788 Kiwi Pete
Kiwi Pete's picture

I had to check that out on Wikipedia. Yes it's true (if you can believe them?!!) so why the junk?

Wed, 04/27/2011 - 00:31 | 1210226 1fortheroad
1fortheroad's picture

I believe hes a Ashkenazi Jew, same as the rotschildren.

A good read if you have the time.

http://www.iamthewitness.com/DarylBradfordSmith_Rothschild.htm

Tue, 04/26/2011 - 19:25 | 1209573 topcallingtroll
topcallingtroll's picture

Isnt the supreme court 100 percent catholic? They scare me too, using faggots to burn heretics. I never realized they were so flammable and made such good firestarters.

And isnt the fed and all the top banks like 90 percent joo?

Do protestants run anything other than wal mart?

Tue, 04/26/2011 - 20:28 | 1209730 JW n FL
JW n FL's picture

When John Kennedy ran for president, he had to face noxious anti-Catholic bias.

http://www.slate.com/id/2096910/

 

When President John Fitzgerald Kennedy - the author of Profiles in Courage -signed this Order, it returned to the federal government, specifically the Treasury Department, the Constitutional power to create and issue currency -money - without going through the privately owned Federal Reserve Bank. President Kennedy's Executive Order 11110 [the full text is displayed further below] gave the Treasury Department the explicit authority: "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This means that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation based on the silver bullion physically held there. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated. It appears obvious that President Kennedy knew the Federal Reserve Notes being used as the purported legal currency were contrary to the Constitution of the United States of America.

http://www.john-f-kennedy.net/thefederalreserve.htm

Tue, 04/26/2011 - 20:54 | 1209772 RexZeedog
RexZeedog's picture

Profiles in courage was definately written by a ghostwriter (who some say was Ted Sorenson). Other than that, your comments are basically correct.

Wed, 04/27/2011 - 01:09 | 1210269 FlyPaper
FlyPaper's picture

C'mon kids.  Stop the 5th grader name calling.  

Tue, 04/26/2011 - 16:18 | 1208938 angelsand
angelsand's picture

I would like a large irrational exuberance and a side of green chutes.

Tue, 04/26/2011 - 16:22 | 1208950 SheepDog-One
SheepDog-One's picture

Everyone will be partying over free money as paper nonsense stocks go higher, the dollar tanks, PM's surge and China dumps $2 trillion USTreasuries on the open market.
No matter what Bernank can say the party is over, the keg is floating and in fact I just saw Bernank under the sink licking a can of Sterno.

Tue, 04/26/2011 - 16:20 | 1208944 Eireann go Brach
Eireann go Brach's picture

Anyone know who will be firing the questions at satan Bernanke tomorrow? Will these be chosen ahead of time useless journalists who will be asking softball questions aka Obama style, who will not even understand what they are asking..while Bernanke himself gives them the look of "do you know who the hell I am"

Tue, 04/26/2011 - 16:20 | 1208945 bothsidesnow
bothsidesnow's picture

Could it be that stocks would actually benefit from a withdrawal of liquidity because inflation expectations would be reduced?

Could it be that the market would actually welcome a withdrawal of liquidity and have some confidence in the US financial system? 

Sure seems like the trade is headed that way.

Tue, 04/26/2011 - 16:25 | 1208978 topcallingtroll
topcallingtroll's picture

Goldilocks, bitchez

Tue, 04/26/2011 - 16:26 | 1208981 SheepDog-One
SheepDog-One's picture

They have no choice but further massive monetization. Even a hint at the spigot being turn off will cause this fake stock market to collapse.

Tue, 04/26/2011 - 16:50 | 1209108 AR15AU
AR15AU's picture

Thats the stupidest shit I've ever heard. 

Tue, 04/26/2011 - 16:54 | 1209132 SheepDog-One
SheepDog-One's picture

Whole lot of people somehow sure miracles are to be performed tomorrow. I say theyre backed into a corner and even though stern warnings from China to dump dollar debt are flying all the FED can do is keep printing and pumping. The Chairsatan may try to flower it up best he can but bottom line the economy is double dipping big time and they have no choice.

Wed, 04/27/2011 - 01:52 | 1210324 LudwigVon
LudwigVon's picture

lol, I thought that exact phrase, scolled down and then read your reply... LOL!!

Tue, 04/26/2011 - 17:16 | 1209210 ghostfaceinvestah
ghostfaceinvestah's picture

No.

There is a LOT of private debt destruction still to go - many, many private mortgages have yet to be written off.

If the govt doesn't create the debt and the Fed doesn't monetize it, we face massive deflation.

Tue, 04/26/2011 - 23:04 | 1210092 rocker
rocker's picture

Someone above said we may have confidence in the financial system.  Pinch that stupid ass.

They are still doing accounting 105.  They still have bad mortgages and loans, increasing everyday I might add. Malls across America have empty stores and it is increasing. Who's holding that bomb. And the FED paying them interest on the shit the Fed gave them is not real earnings. It's a ponzi scam.  And yes, Bernanke belongs in Jail because he lied about monetizing the crap.  

Tue, 04/26/2011 - 16:22 | 1208963 topcallingtroll
topcallingtroll's picture

Dudes it might really be goldilocks. I remember pumping that bitch all thru the nineties. She will let anybody ride her except gold bugs. I sure hope she comes back to party with us again.

Tue, 04/26/2011 - 16:25 | 1208973 McPoopypants
McPoopypants's picture

God, and i thought Sheepdog was an anti-AG troll a-la dangertime and topcallingtroll and the like. He actually says cogent and reasonable things. go figure.

Tue, 04/26/2011 - 16:24 | 1208988 SheepDog-One
SheepDog-One's picture

No, I just said that article laying out $45,000 oz gold was a bit ridiculous.

Tue, 04/26/2011 - 16:30 | 1209017 McPoopypants
McPoopypants's picture

I dunno, the Zimbabwe argument has merit, it would make $25,000 oz gold not worth 2011 $25,000, but keep the nominal price. (you are exagerrating the artilcle claims, or are more of a ZH nerd than I, referencing some minor post claiming $45,000 (though i guess infinity vs. 45 000 is about the same)) however, some things you say are worth reading, take it or leave it.

Tue, 04/26/2011 - 16:38 | 1209059 SheepDog-One
SheepDog-One's picture

No If I recall right the article actually did say 45,000, I know for sure it mentioned 30,000 gold. In any case my problem with it was saying the gold price would move up to meet the present 'value' of the dollar at 145 trillion or so. the fiat valuation needs to have a lot of zeros lopped off it.

Tue, 04/26/2011 - 16:25 | 1208992 sabra1
sabra1's picture

tomorrow will be known as "The Day Of Quivering Lips!"

Tue, 04/26/2011 - 16:30 | 1209015 Racer
Racer's picture

Will fire come out of his nose and his eyes light up glowing red?

Tue, 04/26/2011 - 16:31 | 1209023 slaughterer
slaughterer's picture

Who would not want to bank asset class gains on a weak dollar with the PBOC with its fat trigger finger on $2trillion SELL.  Me no likey the man with the beard on the TV.  PRESS! 

Tue, 04/26/2011 - 16:35 | 1209043 SheepDog-One
SheepDog-One's picture

I really dont see what he can say that will cause some kind of jubilation at this point in the Ponzi.
What, were keeping rates at 0 and further QE? Dollar continues plunge. China actively dumps dollar debt.
Hint a hike rates or even just say QE is about over? Everyone races out of stocks and bonds causing markets to plunge, dollar to rise, PMs take a hit but oh well.
Really, WHAT can he say?
I think its just more of the same, we'll hear about 'improvements, but further need to stay on present course' of money printing a 0% and pumping the shit out of stocks and bonds.

Tue, 04/26/2011 - 16:41 | 1209071 McPoopypants
McPoopypants's picture

Rates hike to 3 - 5 %, gradual reduction of debt, no more QE, investment in production/infrastructure in the states over the next 10 yers. T-bills shoot up, Ag-Au drops, derivative market shrinks. That .... could do it, non? 

Tue, 04/26/2011 - 16:47 | 1209095 SheepDog-One
SheepDog-One's picture

I'd be highly surprised to hear anything like that...no more QE and back to 3-5% rates? We've been Ponzi'ing our way up based upon only no cost monetization all the way up from DOW 6,500....cutting both ends of the tightrope the guy is walking across the grand canyon to see if he can fly is an interesting experiment, but dangerous and not likely to work. The economy is crap, housing is in solid double dip, unemployment is at great depression levels.
Anyway I bet Bernanke says in whatever flowery language 'The ZIRP Ponzi must go on'.
I dont see how he can say anything different.

Tue, 04/26/2011 - 16:51 | 1209114 McPoopypants
McPoopypants's picture

It won't happen, duh, but there is some marginal possibility thereof/ Shit is so weird at this point nothing would surprise me.

Tue, 04/26/2011 - 18:04 | 1209355 mrfr0gz
mrfr0gz's picture

The falling dollar will cause asset prices to rise so that value stays constant.

Not that they are worth any more.

The musical chairs game continues, the looser will be eaten for lunch.

Wed, 04/27/2011 - 01:59 | 1210330 LudwigVon
LudwigVon's picture

I prefer to eat the tighter

Tue, 04/26/2011 - 16:42 | 1209067 LawsofPhysics
LawsofPhysics's picture

So what is the trade here?

Tue, 04/26/2011 - 16:46 | 1209100 SheepDog-One
SheepDog-One's picture

Hell Im buyin some $45 silver, I dont think they have any more rabbits to pull out of their hat.

Tue, 04/26/2011 - 17:22 | 1209220 ghostfaceinvestah
ghostfaceinvestah's picture

I believe there will be a pause that will see the economy start to collapse, like last year, but that will be followed by more money printing.  Besides the mortgage market that still needs to be liquidated, there are all those peripheral Euro countries whose debt needs to be "restructured".  That's a lot of debt destruction yet to come.  That will all have to be replaced by US govt debt that will need to be monetized.

Tue, 04/26/2011 - 17:01 | 1209156 bothsidesnow
bothsidesnow's picture

Hedge any risk positions. 

Although ZHers don't see physical silver a risk trade on a long enough timeline everything is a risk. LOL.

I hedged my small physical silver position buy selling 500 oz in my spot Forex account with a stop on the position at break even. So esentially I have locked in my gain from when I entered into phsyical market 5 weeks ago.

If it's more of the same from the Fed PM's continue to rise and short is closed at break even.

It's a no brainer, that's why the price has been falling the last couple of days. Big money is hedging just in case the Fed signals a change in monetary policy.

Oh I forgot this site is Zero Hedge sarc/off

They are all going to hold their phsyical silver until the world ends and they have shot al the dumb asses with the glocks and ammo they are hoarding.

Tue, 04/26/2011 - 19:16 | 1209550 topcallingtroll
topcallingtroll's picture

Actually i think readership is slightly more balanced but their is a.skew in posting.

Even tyler often recommends trades other than just blindly buy precious metals. He even suggested hedging pm exposure today.

Tue, 04/26/2011 - 16:49 | 1209105 slaughterer
slaughterer's picture

The trade here is totally predicated on what the Chairsatan says tomorrow, unfortunately.  He is the sole center of price discovery for all asset classes at this point.

Tue, 04/26/2011 - 16:51 | 1209116 SheepDog-One
SheepDog-One's picture

Sad, isnt it? The whole damn country depends on what this asshole Bernank happens to say? Just disgusting.

Tue, 04/26/2011 - 16:59 | 1209152 magpie
magpie's picture

Central Bankers making History.

Tue, 04/26/2011 - 17:24 | 1209226 ghostfaceinvestah
ghostfaceinvestah's picture

True, though I think eventually his hand gets forced by rising commodities prices.  The CPI gaming is just a charade so the govt doesn't have to increase its benefits payouts any more than necessary, but Benocide has to know the commodities ramp is starting to kill the real economy.

Central planning has never really worked throughout history, and it won't work now.

Tue, 04/26/2011 - 17:49 | 1209289 Rainman
Rainman's picture

exactly right

Tue, 04/26/2011 - 16:53 | 1209127 McPoopypants
McPoopypants's picture

So, nothing to see here? waiting till the presscon. Edit: then buying physical.

Tue, 04/26/2011 - 17:12 | 1209190 sabra1
sabra1's picture

all previous QE's triggered the worlwide events occuring now, the next QE will bring it all down. it will be that outside event, events, that will decimate all markets!

Tue, 04/26/2011 - 20:18 | 1209708 SkySavage
SkySavage's picture

No more QE...can't do it.  We'll get a little "we will stay vigilant to future threats to the economy" in an attempt to try to keep people guessing on QE3 and that's probably it.

Tue, 04/26/2011 - 21:25 | 1209835 slewie the pi-rat
slewie the pi-rat's picture

don't burn yerself, tyler! 

this could be sumkinda benocidal discounting where the "economy" shoots off skittle shitting unicorns after shalom shuts up.  

prob not, huh?  just sell the news, again, right?

saw some nice coins, today.  no eagles!  deal going down for sterling silverware.  ka-ching!  silver heading to smelter. 

 

Tue, 04/26/2011 - 22:05 | 1209943 MiningJunkie
MiningJunkie's picture

The threat to the future of the Zimbabwe-esque U.S. economy is housing. When housing turns, policy will turn. When policy turns, the commodity trade will reverse and that includes stocks. Until the Case-Schiller turns up, Benji will continue to print because the Wall St.-owned FED owns all of the toxic real-eatate-related sludge that can't get off the FED balance sheet until housing turns.

Watch Case-Schiller for the key to policy.

Tue, 04/26/2011 - 22:32 | 1210013 Iam_Silverman
Iam_Silverman's picture

I thought that Greece was going to blow up this last weekend.

What happened?  I expected a very busy holiday weekend where all sorts of deals were being worked out while bondholders lined up for their turn in the barbers chair.

Then, nothing - except some profit taking in the PM international markets and some grumbling from China.  I want some excitement!

Wed, 04/27/2011 - 00:14 | 1210200 Bansters-in-my-...
Bansters-in-my- feces's picture

I hate to break it to you Rocker......

BUT....The Bernanke is a Joo.

Just like most the whitehouse.

Wed, 04/27/2011 - 00:22 | 1210212 Bansters-in-my-...
Bansters-in-my- feces's picture

You have to wonder...Whats the odds of JEW running the Federal Reserve.? (Non Federal No Reserves) Private for profit Corporation. I wonder if many are in the Whitehouse,and is there a larger than NORMAL percentage ?

Is Timmy Giethner a Joo,Too.....

Don't tell me so.

Wed, 04/27/2011 - 08:01 | 1210730 longorshort
longorshort's picture

Ok, This idiot deserves a ban by IP/MAC.

Do NOT follow this link or you will be banned from the site!