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

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/17/2010 - 16:54 | 735530 Rahm
Rahm's picture






Wed, 11/17/2010 - 16:59 | 735562 SMG
SMG's picture

After the all important GM IPO.

Wed, 11/17/2010 - 17:23 | 735700 Whizbang
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.

Wed, 11/17/2010 - 17:44 | 735813 Ripped Chunk
Ripped Chunk's picture

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

Complete and utter FICTION

Wed, 11/17/2010 - 17:58 | 735883 SheepDog-One
SheepDog-One's picture

All just a bunch of paper shuffling fiction.

Wed, 11/17/2010 - 19:22 | 736176 nope-1004
nope-1004's picture

Utter nonsense if you're a gold bug.

Makes complete sense if you're not.


Wed, 11/17/2010 - 22:46 | 736655 maddy10
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

Wed, 11/17/2010 - 23:57 | 736794 rocker
rocker's picture

Good thought, Maddy.

Thu, 11/18/2010 - 00:32 | 736834 66Sexy
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. 

Wed, 11/17/2010 - 18:32 | 736034 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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

Wed, 11/17/2010 - 18:33 | 736040 NOTW777
NOTW777's picture

just wait til they announce they are out of koolaid

Wed, 11/17/2010 - 21:04 | 736413 Problem Is
Problem Is's picture

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

Wed, 11/17/2010 - 17:16 | 735662 High Plains Drifter
High Plains Drifter's picture

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

Wed, 11/17/2010 - 17:57 | 735879 cosmictrainwreck
cosmictrainwreck's picture


Wed, 11/17/2010 - 18:00 | 735885 Eternal Student
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.


Thu, 11/18/2010 - 00:50 | 736854 Spitzer
Spitzer's picture


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

Thu, 11/18/2010 - 05:06 | 737166 jeff montanye
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)?

Thu, 11/18/2010 - 16:54 | 737985 Eternal Student
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.


Wed, 11/17/2010 - 21:13 | 736438 MeTarzanUjane
MeTarzanUjane's picture

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

Wed, 11/17/2010 - 22:29 | 736592 EvlTheCat
EvlTheCat's picture

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

Thu, 11/18/2010 - 02:28 | 736962 Pozzo
Pozzo's picture

+1 trillion

Thu, 11/18/2010 - 02:27 | 736959 Pozzo
Pozzo's picture


Wed, 11/17/2010 - 17:42 | 735802 Realist
Realist's picture

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

Wed, 11/17/2010 - 17:52 | 735857 Capsaicin
Capsaicin's picture

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

Wed, 11/17/2010 - 18:41 | 736070 banksterhater
banksterhater's picture

+1000 !

Wed, 11/17/2010 - 18:12 | 735948 Bonesetter Brown
Bonesetter Brown's picture

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

Wed, 11/17/2010 - 18:34 | 736046 spartan117
spartan117's picture

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

Wed, 11/17/2010 - 21:08 | 736422 Pondmaster
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. 

Thu, 11/18/2010 - 00:25 | 736823 SilverIsKing
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.

Thu, 11/18/2010 - 02:42 | 736971 Howard_Beale
Howard_Beale's picture

Double post.

Thu, 11/18/2010 - 02:38 | 736974 Howard_Beale
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.

Wed, 11/17/2010 - 19:48 | 736238 vegaspilot03
vegaspilot03's picture


Wed, 11/17/2010 - 19:45 | 736241 vegaspilot03
vegaspilot03's picture



and Jim Cramer has a nicer site...

Thu, 11/18/2010 - 01:16 | 736884 RockyRacoon
RockyRacoon's picture

Ooops.  Missed it by t-h-i-i-i-i-s much....

Thu, 11/18/2010 - 06:00 | 737187 MeTarzanUjane
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"

Thu, 11/18/2010 - 05:23 | 737170 Popo
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.



Wed, 11/17/2010 - 20:40 | 736370 toathis
toathis's picture

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

Thu, 11/18/2010 - 02:15 | 736944 Turd Ferguson
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.

Wed, 11/17/2010 - 16:55 | 735534 SpeakerFTD
SpeakerFTD's picture

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


Wed, 11/17/2010 - 16:58 | 735556 Calvin Jones an...
Calvin Jones and the 13th Apostle's picture

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

Wed, 11/17/2010 - 17:03 | 735594 jimijon
jimijon's picture

And the derivative group... Bennie and the inkJets

Wed, 11/17/2010 - 17:05 | 735597 SpeakerFTD
SpeakerFTD's picture

^^ Beat me to it.

Wed, 11/17/2010 - 17:19 | 735684 f16hoser
f16hoser's picture


Wed, 11/17/2010 - 21:09 | 736426 Pondmaster
Pondmaster's picture

I thought it was the "Bunnymen" ?

Wed, 11/17/2010 - 23:16 | 736721 alex_g
alex_g's picture

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

Wed, 11/17/2010 - 16:55 | 735536 TruthInSunshine
TruthInSunshine's picture

Sounds painful!

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

Wed, 11/17/2010 - 16:56 | 735543 NOTW777
NOTW777's picture

does this mean the summer of recovery is canceled?

what about hope and change?

Wed, 11/17/2010 - 17:08 | 735622 I Am The Unknow...
I Am The Unknown Comic's picture hope has been's not called hope anymore...

Wed, 11/17/2010 - 18:10 | 735932 HomemadeLasagna
HomemadeLasagna's picture

It has been replaced with grope for change...

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