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FOMC Risks Embarrassment
If they don't turn around this tape in the next day or so, Bernanke and his court will be disgraced and the O-Team will be on the phone begging for more alphabet soup programs, monetizations, bailouts, nationalizations, and other assorted "Fiat Flinging" to avert catastrophic deflation.
All the 15 to 1 leveraged daytraders who bought the FOMC breakout yesterday were pretty much blowtorched with a cascade of margin call selling and liquidations. So much for the "work at home and make $15,000 a month" play.
Most of the junk chased up the last few days crashed, sending the speculators into a tailspin and the big funds dumped stocks and started "fleeing" back into Treasuries, just in time for another bond auction pulled off at rates near 40-year lows.
Cannot underestimate the willingness of our foreign creditors to lap up our AAA-rated debt no matter how much U.S. confetti they are choking on already.
And how every day, bond yields are driven down each and every day when massive amounts of new T-Bones need to be issued.
Many stocks was down today, except for a few short squeezes on Red Hat and American Greetings....
Just goes to show how Goldman can always find some big client of theirs who is short a specific stock, and jam them out of their positions anyway, regardless of how bad the overall market is doing.
Other than that pretty much most mo-mo speculators were shot by "The Terminator" aka Goldman Prop Desk:
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RIMM REDRUM.
LOL! What is happening with them? I saw a -8.5% AH print!?
Would you believe -11.2%?
Had hoped Wall Street 2 would usher in the top as the
20 year anniversary remaster did in 2007.
If we take note of Titanic commodities, gold, oil and
stocks, Gilts and dollars seem to be the few things not
being flushed down the G-20 toilet.
Could it be the 49+% real interest rates of defaulting, deflating assets?
Re "Cannot underestimate the willingness of our foreign creditors to lap up our AAA-rated debt no matter how much U.S. confetti they are choking on already."
Sarcasm?
Hard to believe surplus nations like BRICS, Japan and House of Saud/UAE really buying more bonds. Maybe Bills.
Maybe gold, until they choke on it with hidden gold
swap operations.
Sources including here yesterday say up to 80% of notes
bought by Primary dealers and sold back to Fed for more
funny money.
Mistake may be assuming that means inflation or higher nominal rates when M-3 has tightened 13% since 2008 and
various aspects of the economy including revenues, trade and wages contracted much more. 71% of the economy
who borrow and consume are tapped out. Like Rome, foreign wars and barbarians inside the gates not doing so well and consuming the seed corn. Government credit may be rapidly approaching credit Waterloo.
GS 188 post partum peak motto:
We lose a little on every trade, but make up for it
with volume...
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3251493
Ouch. RIMM may want to make their revenue estimate next time around.
The will, once their stock has bottomed for their Q3 stock distributions for insiders. Then they will play the pump the junk into Q4 for a rinse & repeat of the inside sellers dynamic.
Too bad they aren't required to report their insider trades and holdings with the SEC.
And too bad I don't get the Canadian data, either.
I've dug deep into many of their past quarters and its quite obvious they've plateaued (or are just about there). The vast majority of folk buying new crackberries are current subscribers...cannibalization anyone? With any and all exponental growth behind them they absolutely do not deserve a forward multiple in excess of 20. Then again the next "risk on" day that comes around I'm sure they'll break $100.
They are getting....
wait for it...
wait for it...
wait for it....
A real RIMM job.
I apologize, but can't restrain myself.
Yeah just imgaine the day AAPL pulls this "No infinite consumer" bullshit on the world. Krakatoa will call up and ask to have its mushroom cloud back.
Who says we have an employment problem in this country? Shoot if Roosevelt could employ millions of people digging ditches, I'm sure Obama can support rimm jobs for a good portion of folk in this country. THATs a real win-win-win.
The CEO must be dreading the conference call in a half hour.
More than $4 billion in market cap gone in one trading day. Is that a green shoot?
UR getting better at this Andy
http://www.sacredfools.org/crimescene/casefiles/s2/shipoffoolsstory.htm
guys, go read this
it is short, i promise you will love it, so relevant
nice one. interesting to note the author.
Throwing a bone to the guard dog to distract them from the robbers making off with the loot
classic. and written in 1999, no less. The more it changeth, the more it stayeth the same...
Written from prison. Ironic.
Ted Kaczynski
very funny commentary today robo.... "pretty much blowtorched"....i love that one!
Way to go Andy...like those brunettes
Businesses buy Blackberrys; consumers buy iPhones. The consumer is in denial or milking the credit card while they still can. Explains the differences in revenue thus far.
http://www.nytimes.com/2007/08/10/business/10goldman.html
Back to the future...$182 share..and Dick Bove too!
With all due respect I don't think that the Fed is sweating bullets because the market is down 1% two days in a row.
Its a shank or be shanked market.
And it looks like GS got a whole lot of shankin' goin' on.
Corcoran State Prison has nothin' over those MF'ers.
http://www.youtube.com/watch?v=qbn10i6djUM
My kinda people. ;>
Nahh. RIMM will shoot to the moon when China Telecom announces that RIMM is their only supplier.
I only had to laugh when one of my shorts, APOL announced that they would be starting a degree program in China. Yeah great. Instead of soaking suckers here for $20,000 or more per year, they will be getting 100 yuan per year from the Chinese. Good business plan. Of course the momos had lunch on me.
No more ramp jobs, the market is turning over. Bottoms (restatement of mark to market) and tops (draining of slosh)are always the result of exogenous events. Fed announcing reverse-repos amounts to taking the punch bowl away. Remember last year, it was reverse repo after reverse repo and as a result...POOF went Lehman, Fannie, Freddie, and AIG. Ignore the Fed at your own peril, the game's up.
Thats it. I'm gonna post pics of hunky near naked dudes for us ladies!