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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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Tue, 06/28/2011 - 10:22 | 1408633 slow_roast
slow_roast's picture

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

Tue, 06/28/2011 - 10:26 | 1408634 gdogus erectus
gdogus erectus's picture

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

Tue, 06/28/2011 - 11:19 | 1408880 Rylie
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.

Tue, 06/28/2011 - 10:24 | 1408640 SheepDog-One
SheepDog-One's picture discretionary retard stocks.....must all time

Tue, 06/28/2011 - 10:38 | 1408712 Cdad
Cdad's picture

The cross current scalping in that group is quite noteworthy.

Tue, 06/28/2011 - 10:23 | 1408641 qussl3
qussl3's picture

Flash smash instead of flash crash?

Maybe the market is sane and pricing in hyperinflation?


Tue, 06/28/2011 - 12:26 | 1409129 TumblingDice
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.

Tue, 06/28/2011 - 10:24 | 1408644 Dr. Engali
Dr. Engali's picture

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

Tue, 06/28/2011 - 10:58 | 1408803 LongBalls
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.

Tue, 06/28/2011 - 12:19 | 1409158 Mr Lennon Hendrix
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.

Tue, 06/28/2011 - 10:29 | 1408654 Dismal Scientist
Dismal Scientist's picture

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

Tue, 06/28/2011 - 10:29 | 1408656 101 years and c...
101 years and counting's picture

something very bad around the corner?

Tue, 06/28/2011 - 10:26 | 1408660 zorba THE GREEK
zorba THE GREEK's picture

 Nothing like negative interest rates to give one confidence 

 in the economy

Tue, 06/28/2011 - 10:30 | 1408661 shushup
shushup's picture

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

Tue, 06/28/2011 - 10:27 | 1408665 MadeOfQuarks
MadeOfQuarks's picture

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

Tue, 06/28/2011 - 10:29 | 1408674 6 String
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...

Tue, 06/28/2011 - 10:34 | 1408699 SheepDog-One
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.

Tue, 06/28/2011 - 10:55 | 1408773 6 String
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. 

Tue, 06/28/2011 - 11:37 | 1408974 HowardBeale
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.

Tue, 06/28/2011 - 10:44 | 1408714 plocequ1
plocequ1's picture

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

Tue, 06/28/2011 - 10:40 | 1408731 SheepDog-One
SheepDog-One's picture

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

Tue, 06/28/2011 - 10:46 | 1408756 qussl3
qussl3's picture


Sorry couldnt resist.

Tue, 06/28/2011 - 10:50 | 1408758 6 String
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. 

Tue, 06/28/2011 - 10:34 | 1408678 Don Quixotic
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."

Tue, 06/28/2011 - 10:35 | 1408702 Waterfallsparkles
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.

Tue, 06/28/2011 - 10:39 | 1408718 Don Quixotic
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.

Tue, 06/28/2011 - 10:47 | 1408759 narapoiddyslexia
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?

Tue, 06/28/2011 - 11:03 | 1408820 infinity8
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.

Tue, 06/28/2011 - 16:51 | 1409983 RockyRacoon
RockyRacoon's picture

That Kayla Tauche chick on CNBS is BFU!

Tue, 06/28/2011 - 11:01 | 1408813 Don Quixotic
Don Quixotic's picture

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

Tue, 06/28/2011 - 10:32 | 1408689 zorba THE GREEK
zorba THE GREEK's picture

 Gold and the dollar just sharply changed directions.  

 Something is going on.

Tue, 06/28/2011 - 10:35 | 1408706 treemagnet
treemagnet's picture

thats what I was thinking - how does that work?

Tue, 06/28/2011 - 10:43 | 1408736 6 String
6 String's picture

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

Tue, 06/28/2011 - 10:33 | 1408693 spongeBOB
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?

Tue, 06/28/2011 - 10:39 | 1408703 HelluvaEngineer
HelluvaEngineer's picture

hey - you're not supposed to notice that

Tue, 06/28/2011 - 10:38 | 1408716 SheepDog-One
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.

Tue, 06/28/2011 - 16:53 | 1409985 RockyRacoon
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.

Tue, 06/28/2011 - 10:40 | 1408726 6 String
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.....

Tue, 06/28/2011 - 10:38 | 1408697 treemagnet
treemagnet's picture

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

Tue, 06/28/2011 - 10:37 | 1408710 TradingJoe
TradingJoe's picture


Tue, 06/28/2011 - 10:45 | 1408717 Re-Discovery
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.

Tue, 06/28/2011 - 17:00 | 1410001 RockyRacoon
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.

Tue, 06/28/2011 - 10:39 | 1408719 truont
truont's picture

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

Tue, 06/28/2011 - 10:40 | 1408725 Village Smithy
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?

Tue, 06/28/2011 - 10:47 | 1408735 SheepDog-One
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.

Tue, 06/28/2011 - 10:44 | 1408740 Cassandra Syndrome
Cassandra Syndrome's picture

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

Tue, 06/28/2011 - 11:03 | 1408822 Piranhanoia
Piranhanoia's picture

it isn't money, it is religion.

Tue, 06/28/2011 - 10:44 | 1408730 monopoly
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.

Tue, 06/28/2011 - 11:26 | 1408943 Kayman
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.

Tue, 06/28/2011 - 10:46 | 1408733 RobotTrader
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.

Tue, 06/28/2011 - 10:48 | 1408743 SheepDog-One
SheepDog-One's picture

I like that Tyler revoked your chart and picture posting he should go the extra step and ban your worthless ass from posting at all.

Tue, 06/28/2011 - 11:06 | 1408816 lizzy36
lizzy36's picture

Why is he factually incorrect? NO.

He actually makes some strong points.

And while he may not be agnostic on the sustainability of the stupidity that is the equity market, he is trading what is in front of him, on his timeline and making money.

We are not an echo chamber. And perish the day we ever become one.

Tue, 06/28/2011 - 11:44 | 1409008 Ethics Gradient
Ethics Gradient's picture

We? Makes this place sound like some sort of organised club. Do 'we' need a slogan?

Were you thinking of something like this?:

We are the Zero Hedge Continuum. We are not in agreement. We will probably never remember. Persistence is futile.

Maybe not.

Tue, 06/28/2011 - 13:05 | 1409237 lieutenantjohnchard
lieutenantjohnchard's picture

by his own admission robottrader doesn't trade. he buys and holds stocks such as hd, vz, and mo.

Tue, 06/28/2011 - 11:18 | 1408868 Joeman34
Joeman34's picture

What's with your holy mission to discredit Robo.  Everyone knows he's a TD plant whose purpose is to stir-up controversy. 

Don't you realizes RoboTD never responds to existing posts or engages in discussion?

Tue, 06/28/2011 - 12:14 | 1409130 Biosci
Biosci's picture

I totally disagree.  Robo used to post some very nice pics.

Tue, 06/28/2011 - 11:01 | 1408794 Cdad
Cdad's picture

XRT now about $1 away from making new highs.

Which means that the puke bucket [XRT] is raised , the vomiting of underlying stock is well engaged, and prices on the underlying stocks in that ETF are entirely fleeting.

Thanks for pointing it out.

Tue, 06/28/2011 - 10:48 | 1408742 Dismal Scientist
Dismal Scientist's picture

Euro Libor yielding less than the ECB base rate. Which means there's a lot of cash parked which is too scared to do anything else. No wonder we're ripping...

Tue, 06/28/2011 - 10:49 | 1408750 SheepDog-One
SheepDog-One's picture

All that trapped gas....we'll see a Hindenburgh replay one morning soon.

Tue, 06/28/2011 - 10:51 | 1408760 Cassandra Syndrome
Cassandra Syndrome's picture

Didn't the flash crash last year happen because the market was too illiquid and what was there was toxic?

Tue, 06/28/2011 - 10:49 | 1408746 Cassandra Syndrome
Cassandra Syndrome's picture

Skynet has become self aware...

Tue, 06/28/2011 - 10:49 | 1408747 lizzy36
lizzy36's picture


3/31 SPX @1325.......6/30 13(SOMETHING?).

Which means that through all the this is "LEH2.0" shit that was Q2, a sputtering economy heading into outright contraction, and the end of QE2, the market on the quarter is likely to be down a whopping 2%.

Yeah for something. (LULU for being up 30% since 6/6)

Tue, 06/28/2011 - 10:50 | 1408751 RobotTrader
RobotTrader's picture

I guess that a 5-yr. yield at 1.50% justifies a PE ratio of 58 for LULU??

I suppose that if the 5-yr. yield drops to 1.25%, then that will justify a PE ratio of 70, which would send LULU up to $160/share.


Tue, 06/28/2011 - 11:14 | 1408874 6 String
6 String's picture

Indeed, Robo. I'm gonna leave the computer for the day. When I check in tonight I'll bet the R2K it up 1.5-2% on the day with all the stellar news in the market. A 1.5% yield should at least get the R2K p/e up to 30x. We've got a ways to go in this massive bull market....

Tue, 06/28/2011 - 12:19 | 1409138 TumblingDice
TumblingDice's picture

I'm never really sure if you are a raving lunatic, a massive troll or just a philosophical jester trying to apply his craft to something practical. Maybe all of the above.

Did I miss it when they uneartherd the correlation between rates and P/E?

PS care to give me a hot stock tip, maybe one that deals with redundant shit rich people buy?

Tue, 06/28/2011 - 13:05 | 1409241 Manthong
Manthong's picture

Louis Vitton's up nealy 4% today.

Time to move fiat reserves from the money market to the wife's handbag.

Happy days are here again.

Tue, 06/28/2011 - 11:32 | 1408971 downrodeo
downrodeo's picture

I'm waiting for the day when the chart resembles the Jolly Roger I drew on my SAT answer sheet. Then we'll know the time is up...

Tue, 06/28/2011 - 12:18 | 1409154 hungarianboy
hungarianboy's picture

What is this? Pls explain.

thanks in advance.

Tue, 06/28/2011 - 17:04 | 1410011 RockyRacoon
RockyRacoon's picture

Means you're screwed.

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