Knight Research' Stunning Call: "The Game Is Over"

Tyler Durden's picture

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Rahm's picture






SMG's picture

After the all important GM IPO.

Whizbang's picture

Even if nobody else picks it up, the PD banks who are underwriting the IPO will buy it all. This offering will go off without a hitch. Obama will/have/has saved the country. That has been and will be the spin for the rest of history.

Ripped Chunk's picture

More worthless paper traded for more worthless paper (and both parties record a gain!)

Complete and utter FICTION

SheepDog-One's picture

All just a bunch of paper shuffling fiction.

nope-1004's picture

Utter nonsense if you're a gold bug.

Makes complete sense if you're not.


maddy10's picture

30-40 trillion$ monetary assets under institutions as of June2010

They have to go somewhere

Sure , big money has realised it is time to go back to preservation of capital now that easy money has been made

PM markets total 100 billion[0.3%] and cannot sustain the huge capital inflows

Therefore Dollar assets aka treasuries and soforth will rise along with 300-400%rise in PMs

Lookout for huge windfalls in CAD,AUD

66Sexy's picture

nothing new here. we already knew the china model was based on empty GDP; fuzzy numbers that originated from non essential production like building empty skyscrapers,deserted cities, and overemployment.

but that still leaves the question of where does the money go? in this scenario described, its not bullsih for the dollar; it implies a currency disrpution if there is a flight from emerging markets. it implies a defacto commodities based system, at least temporarily, set to replace the fiat credit and growth system that is now waning. industrial metals, oil, key commodites become the new trade instruments, and the method of trade would have to be material.

as much as globalists would like nationalism and soverignty to die, it will not. and with a re-emergence of nationalism (brought on by the "envy" of the US's monetary creation option), we would see a collapse of the euro, european countries returning to their own currencies, and a major set back for one world government initiatives. 

Mr Lennon Hendrix's picture

I take it history ain't lasting too much longer.

NOTW777's picture

just wait til they announce they are out of koolaid

Problem Is's picture

Green Shots Lime is really hard to find anymore...

High Plains Drifter's picture

All I want to know is if they cleared this article with Leo first before posting it?

Eternal Student's picture

Or the Gonzo economists, or FOFOA? The rally in the dollar is what I was referring to back in September, when a lot of folks were predicting hyperinflation via a collapse in confidence in the dollar. Oh well.

It will indeed come, as I said before. Just not now.


Spitzer's picture


will it last as long as the rally did in 08 ?

jeff montanye's picture

dang good question.  quite the trading opportunity.  i had been waiting to reduce tsys on equity weakness/tsy strength.  may not happen quite like '08 this time (maybe more like '87 -- bond sell off to stock sell off with overnight huge bond rally after)?

Eternal Student's picture

I see you haven't changed your view since calling for "hyperinflation" via a dollar crash as soon as last September. The ongoing saga in currency wars has left no impression, I take it?

To answer your question,  it will be an ongoing race to the bottom, with everyone trying to cheapen their currency, and things zig-zagging as this tug-of-war goes on. The real question is how long can that game be played? Ask the Bond Markets for the answer to that one.


MeTarzanUjane's picture

I'm not sure about Leo, but I think Reggie at BustedBlogGoesBoom predicted this when he exited his moms womb.

EvlTheCat's picture

You mean Reggie from the virgin birth?  Yes, I am sure he told you that.

Realist's picture

Well, if Knight Industries Research says it's so, it must be:

Capsaicin's picture

Impressive depth on their website. Reminds me of the light switch in grandma's log cabin.

Bonesetter Brown's picture

If K.I.T.T says the game is over, then the game is over

spartan117's picture

I can't believe Tyler would post junk from these people...

Pondmaster's picture

Agree . It read like junk as well . The gypsy fortune teller at the county fir could do a better job of convincing . Pooorly written , un professional. 

SilverIsKing's picture

I've asked Tyler if he'd be willing to let you screen and approve all topics before he posts them on the ZH site.  I'll let you know what he says.

Howard_Beale's picture

I already know the answer you will get. It will be no response or no.

I think the article was more than worthy of being printed. And I've been a very long time. Too bad the commentors are one sided these days preaching conspiracy and gold bitchez.

Once upon a time ZH was a great blog.

vegaspilot03's picture



and Jim Cramer has a nicer site...

MeTarzanUjane's picture

No you missed it by this much. Nice little raccoon. As Scooby would say; Ruh-roh Raggy, Rorots.

"Knight's Algorithmic Execution Strategies Win Buy-Side Technology Awards"

Popo's picture

Funny, but it's here:

More interesting however, is that their banking sector analysis is mostly positive:

Which would suggest that they believe the game is in fact, not over.



toathis's picture

restart? it already did! The event happened in 2008. Now the worst is over. Nothing else is coming!

Turd Ferguson's picture

This article is bullshit. Well reasoned and insightful but bullshit nonetheless.

One day soon, this scenario will play out but NOT YET. Give it another 12-18 months and then we'll see.

SpeakerFTD's picture

I like the term "echo bubble".    Reminds of that great band Echo and the Bubblemen.


Calvin Jones and the 13th Apostle's picture

And there is always the splinter group: Bennie and the Bubblemen.

Pondmaster's picture

I thought it was the "Bunnymen" ?

alex_g's picture

Saw them in New York in '87 or '88.  Actually a great show

TruthInSunshine's picture

Sounds painful!

That POMO thing... is up with that lately?

NOTW777's picture

does this mean the summer of recovery is canceled?

what about hope and change?

I Am The Unknown Comic's picture hope has been's not called hope anymore...

HomemadeLasagna's picture

It has been replaced with grope for change...