Meanwhile Over In Rates Land....

Tyler Durden's picture

The schizophrenia is now complete.

Buy this window dressing, but that window dressing, buy insolvent currencies, buy New Jersey, buy T-Bills at negative rates. Just buy.... on margin if possible.


And General Collateral now at 0.01% only adds to the fun.. THE FUN

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slow_roast's picture

Reality?  We don't need no stinkin' reality!

gdogus erectus's picture

Please!  Take my money!  I'll pay you!

Rylie's picture

The last time this happened dubai almost went bankrupt

My guess is someone just went bankrupt again as the peasantry we will find out over the long weekend. when no one is paying attention.

SheepDog-One's picture discretionary retard stocks.....must all time

Cdad's picture

The cross current scalping in that group is quite noteworthy.

qussl3's picture

Flash smash instead of flash crash?

Maybe the market is sane and pricing in hyperinflation?


TumblingDice's picture

Low interest rates mean the opposite thing: people are willing to lend out at a very low return in the future because they think the currency being lended will retain its value. It is not a bet on hyperinflation but rather a bet against near term inflation.

The market is rarely sane though, so in a twisted way, by taking the opposite of what you said and saying "the market is insane" and "market is pricing in low inflation" you still come to the same conclusion which you premumably came to which leads to having inflation.

Can't say that I agree with that conclusion though.

Dr. Engali's picture

 I think I'll buy some more gold today. Definitely not on margin though.

LongBalls's picture

Gold is going lower with the rest of the commodity complex next month if the market slides. Keep an eye on it. July may be one of the last fire sales we see in gold for a while.

Mr Lennon Hendrix's picture

Gold leads all markets.  You are thinking about it backwards.  If gold falls, the markets slide, not the other way around.  And gold is going higher here in a minute, and it is very cheap at $1500 per.

Dismal Scientist's picture

Suckers are now paying the largest insolvency candidate in history, to lend them money. Truly the world has gone mad...

101 years and counting's picture

something very bad around the corner?

zorba THE GREEK's picture

 Nothing like negative interest rates to give one confidence 

 in the economy

shushup's picture

I think I'll buy all high beta stocks at their all time highs.

MadeOfQuarks's picture

Chalk one more up for gold, at least the yields on it aren't negative.

6 String's picture

You gotta admit, Bernanke is kicking ass right now. It looks like the end of QE2 will be the ultimate dog that never barks...

SheepDog-One's picture

Sure, we just go from $8 billion daily injections to -0- and it all just hums along smoothly from here on out. Yea sure.

6 String's picture

Well, I must admit I'm feeling totally caustic and sarcastic in these completely deranged, manipulated, and non-free markets. But I don't think it'll go without a bark. My thesis is that Beranke needs things to go well--somewhere in QE2--before it ends and the next round starts. So, TPTB are fighting tits right now to get stocks higher before QE2 ends and rates low. 

That way, when the shit hits the fan, the Federal Reserve will look awesome to the sheeple when they can claim their success under printing money and why the next round will also save the day. There is just no way the debt doen't ultimately need to get monetized. 

But leading up to that, let me tell you, is a painful thing to watch. 

HowardBeale's picture

They need the stock market higher so that they'll have plenty of takers when the debt ceiling gets raised and the $200+B of bond issuance hits the market in a frantic effort at catchup.

plocequ1's picture

Bitch slaps abound for all who try to fight Dr. Bernank. Thank god my financial advisor is Joe Weisenthal.

SheepDog-One's picture

Im not fighting Shalom Bernank, just piling up gold (the OTHER Swiss currency) and waiting for the obvious endgame.

qussl3's picture


Sorry couldnt resist.

6 String's picture

Even if you are right, you will be wrong when TJCTFR. Wonder what the VAT will be if you're right? We live in tyranny and fascism. You can't win. 

Don Quixotic's picture

Who's Government Investment Pool is this? Can someone provide some clarity on this? I'm not 100% sure what the takeaway is here other than the fact that someone somewhere can pay people back less money than they borrow? Who is this and where are they? Is this really the T-Bill rate? If so, what maturity? Someone please help me out here, because I can't make heads or tails of just "GIP."

Waterfallsparkles's picture

Maybe you can pay back your Debt with less Money but your Money will be worth less also.  Kind of a wash. Don't you think.

Don Quixotic's picture

That's not a wash, that's a double whammy for whoever is lending... also, who is going around junking every post indiscriminately?

But I digress... That still doesn't answer any of the above questions. Does anyone have any insight on this? Tyler? Anyone? Help me out here.

narapoiddyslexia's picture

There should be a drop-down list on the junks, itemizing the poster-persona of each  junk. TD? Please? Without that, is there any functional utility?

infinity8's picture

I don't really understand it either and would appreciate some enlightenment but it looks as goofy and smells as fishy as everything else does these days.

and it seems there are 1 or 2 serial junkers that have been on board for at least a week.

RockyRacoon's picture

That Kayla Tauche chick on CNBS is BFU!

Don Quixotic's picture

So, nobody knows anything about this. Ok, just checking.

zorba THE GREEK's picture

 Gold and the dollar just sharply changed directions.  

 Something is going on.

treemagnet's picture

thats what I was thinking - how does that work?

6 String's picture

Beware of ALertist warnings. Remember Chris Martenson: This is it! when the Fuk happened. Soothsayers are so dead.

spongeBOB's picture

Could somebody explain to me how the the hell is the XLF staying green when all the major banks that make up the ETF are red?

HelluvaEngineer's picture

hey - you're not supposed to notice that

SheepDog-One's picture

Well how the hell do we get day after day of depression-confirming data, and markets unfazed by it? All fake, thats all...and on top of that something very wicked this way comes.

RockyRacoon's picture

China buying U. S. stocks, just like they're buying up Europe.

Per previously arranged circumstances.   All the big guys are in on the Ponzi.

6 String's picture

It's the true magic wand of the Bernake. What I've noticed, unless you have a ridiculously high conviction idea, there is no reason to go long or short any individual names since everything is correlated 1:1. It's why long/short funds are closing, it's why guys like Klarman are sending money back to investors, it's why beating manipulated markets is short periods of time is painfull and heartbreaking.....

treemagnet's picture

Gotta love "the fun...THE FUN!" line.

TradingJoe's picture


Re-Discovery's picture

As I learned long ago . . .

Hope ain't a Plan.  (The crash will be epoch.)

. . . and just for the record, Wall Street is now cheering Greek police busting heads in the streets in the same manner that people were killed last year.  Wonderful world.

RockyRacoon's picture

Hope is not a plan, to be sure, but it was the last thing left in Pandora's box.

Other than Mr. Pandora, of course.

truont's picture

Treasuries have a negative yield?
Something wicked this way comes...

Village Smithy's picture

It just goes to show the ridiculous amount of free unproductive money that is sloshing around in the system begging the TBTF to put it somewhere. Why aren't real capitalists, you know the kind that actually make things, pounding the table and asking when this crap is going to stop?

SheepDog-One's picture

They had their chance to protest when all this free bailout crap started, but decided to take the free theyll pay the ultimate price.

Cassandra Syndrome's picture

Because we need Mediums to summon Henry Ford and Thomas Edison.

Piranhanoia's picture

it isn't money, it is religion.

monopoly's picture

Some idiot is junking all the posts. What a poor excuse for a human being. And yes, negative rates, that is real positive moving forward. Keep adding to AMZN.

Kayman's picture

Some idiot is junking all the posts

The baby is frustrated that his momma hasn't cleaned out the yellow package in his diaper.

RobotTrader's picture

XRT now about $1 away from making new highs.

Barely sold off during this correction.

Looks like its "Animal Spirits" once again, and any fund manager who doesn't show an outsized position in NKE, LULU, CMG, AZO, etc. will surely be fired.