This page has been archived and commenting is disabled.
Submitted by John Bougearel of Structural Logic
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
Question: The June NFP report had clearly been kited with seasonal and birth/death adjustments. Why didn't they do it in the July NFP report? Were they afraid that suddenly CNBC and the rest of the state run media would catch on? Hardly.
Just as Q2 was an engineered rally, this is an engineered crash. Having people optimistic about their 401k's isn't as important as selling people Treasury-brand toilet paper.
I'm guessing by the July NFP report you mean the NFP report for June. The birth/death model added 185,000 jobs.
Jobs have been adjusted by a minimum of 114K since Feb
Corn is looking to open at new 2-year lows. Wheat is even weaker. Whoops for reflation.
Fertilizer is being skimped/skipped in places. After everyone on CNBC stops pumping their Ag book, it'll be time to look at the story here.
<
yay the PPT steps in AGAIN
yay more PPT action...same old sh1t going on http://is.gd/HGYt
John's economic and market observations are spot on.
However his French is a little shaky.
He should have stated "C'est tout on a besoin de savoir" to mean "that is all one needs to know".
.
Sorry, your French is even worse. The phrase is "C'est tout dont on a besoin de savoir".
Thanks for giving me shit, and for the corrections. I looked at that google translator and said, you know, that don't quite look right from what I could recall of my two years french in 1982-83. I tried a few other varioations, and none of them seemed to improve the sentence structuring
ZH took so long to load I thought the GS heavies had found you!
The end is coming to the global credit market system for one reason, math. The current global credit system is built on the fact that it must expand or collapse. However, the problem is humans have no way to exponential expand forever.
http://2.bp.blogspot.com/_dtY0VOFMWMM/R-xPyhz9uXI/AAAAAAAAAvY/mppP65HLTq...
(Chart to show exponential growth working within the current global credit market system)
Failure to expand is the death of a credit market system, the system needs unlimited amounts of expansion to stay alive forever.
The US credit market system was expanding by $1.3T ($5.2T annualized) in Q3 2007 by Q1 2009 that number is down to $371B ($1.48T annualized) of which the Federal government accounted for $465B so without the Federal government the US system would be negative in credit creation in Q1 2009 of the tune of -$95B.
The system was unsustainable when it was created, it is completely unsustainable today. The next shoe to drop will not be pretty, looks like you have enough momentum to get into 2010, 2011 is suspect and the end of 2012... well, good luck.
Right now based on Q1 2008 credit creation the system is short about $3-5k per person in the United States to just pay the servicing amount to sustain the credit system.
Yet another day of wild action in the casino as the Keno Tables are tilted regularly by huge funds trying to game whatever is going up and short whatever is going down.
Robots are now rotating out of the Chinese internet names and are now piling into the food and beverage sector. Makes no sense really, but whatever is "holding up" in today's market is piled onto with a vengeance.
http://clearstation.etrade.com/cgi-bin/bbs?post_id=9082671
They will continue to do this until the entire S & P 500 is being held up by the only 5 or 6 stocks which are going up.
Meanwhile, bonds remain well bid as our foreign creditors continue to lap up this AAA-rated oatmeal like sub-Sahara refugees.
I suppose that the "O-Team" crashed stocks on purpose in order to keep the feeding frenzy alive for the bonds.
The "Perpetual Motion Machine" seems to be working perfectly.
Any time stocks sell off, money flees into dollars and bonds and a blank check is given to the Treasury department to float billions in new fiatcos for new spending, stimulus, deficit financing, or whatever.
Then once bonds get overbought, then money flows out of fixed income and starts chasing green-shooting stocks, and the administration can point to the jobless recovery and claim their plan is working.
If it doesn't work, then stocks fall again, interest rates go down, and more money is printed at absurdly low yields and the cycle starts all over again.
After today's reversal, no doubt we'll see some fantastic moves out of the IBD Top 100 in the next three days as the daytrading Riverboaters start gunning for O'Neil's "leading stocks" with "earnings momentum" which have reached "buy points".
Wanna bet that SNDA, FUQI, NTES, etc. will be thrown out of the list this week? They will be replaced by the food stocks, probably.
O'Neil would probably be a good general manager of an NFL or NBA team, horsetrading players like he substitutes stocks on his Top 100 list.
Yet another Michelle-Caruso Cabrera "Nipple Bottom" on the NYA, DJUA, and various assorted Cramer Horsemen like AMZN, BIDU, GOOG, AAPL, etc.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=nya&sid=0&o_symb=nya&freq=1&time=7
OMG I thought i had seen it all until today they pumped and pumped even after hours to get an even 900 s&p. This market is so manipulated it is just crazy. Can stocks be bought knowing the ppt will keep it at 900 or will reality set in s&p earnings 50usd max = 600-750 s&p? Opinions please.
Simple explanation.
Goldman rules the markets.
They made a statement today, as to "who the boss" is.
Look at how brilliantly they u-turned the financials.
Every chart reading black box will use this as a "signal" as a "bottom" and buy stocks hand over fist tomorrow if we open up.
Goldman purposely shanked all of its own clients who sold and/or shorted when the 50-day broke on Thursday.
Yet another haul for another fab weekend at the Hamptons.
good articles... http://kl.am/tsc
http://bacn.me/7gy