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Primary Dealers Prepare To Invest $27 Billion In Fed Money, Levered 30x Over The Next Month, To Buy High Beta Names

Tyler Durden's picture


The forced melt up higher once again resumes with no correlation to the recently prevalent Treasury butterfly, as whatever stat arb desks have not blown up in the September move are now once again correlating stocks exclusively with the AUDJPY in yet another chicken-or-egg catch 22. For those who prefer the comfort of a catch 33, we would be far more concerned why the butterfly has collapsed even as stocks are glued to VWAP as if with a tractor beam straight from Darth Vader's toilet. Of course, ES still have to close about a 25 point gap from earlier this month, when the ramp brigade just went truly apeshit. Daily divergences will close, but the real move will be when that particular gap with both the AUDJPY and the 2s10s30s is finally closed. Until then let's just all pretend we have a market. Here some may ask what's the point in fighting the Fed's almost daily stock ramping, and they may well be on to something: the New York Fed has just disclosed it will buy $27 billion in Treasurys between mid-Sept and mid-October. Using the Basel III blessed 30x leverage, this money, once it makes its way to the Primary Dealers, should be sufficient for a $750 billion leveraged push higher in risk assets. And just to prove that point, there will be a POMO on both Wednesday and Thursday. You didn't think a politically "impartial" Fed would allow a  market crash before the mid-terms now, did you?


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Mon, 09/13/2010 - 15:28 | 579043 NOTW777
NOTW777's picture

bens in the tank - politically

Mon, 09/13/2010 - 15:40 | 579080 Calvin Jones an...
Calvin Jones and the 13th Apostle's picture

Ben's in the tank to the banksters, and they need to make their money back somehow.

Mon, 09/13/2010 - 15:32 | 579053 Boilermaker
Boilermaker's picture

Huh?  You mean a 600 point hi-jacking of the DOW and 80 handle move on SPX in 9 trading sessions isn't organic?

You know what?  Fuck it.  They can have it.  I don't care anymore.  I'm not losing anymore money.  The dickheads doing this can play with themselves to the end of days.  I don't care anymore.

Mon, 09/13/2010 - 15:41 | 579083 Spalding_Smailes
Spalding_Smailes's picture

Contrarian indicator, bear throws in towel.

Mon, 09/13/2010 - 15:44 | 579091 Gromit
Gromit's picture


Mon, 09/13/2010 - 15:47 | 579103 Boilermaker
Boilermaker's picture

Of course, because without any fundamental rationale for movement in equity values then we have to concoct some bullshit for the mental midgets to cling to.  Just the same as TA has grown so popular, the entire equity markets are now nothing more than a feeding ground for predators of idiots.  Everyone is searching for some absolutely abstract 'meaning' to it and constantly trying to invent some new 'indicator' or 'angle' on what *might* happen and why.  It's a pile of steaming shit and only seriously impaired dumb fucks don't know that.

Mon, 09/13/2010 - 17:39 | 579363 Implicit simplicit
Implicit simplicit's picture

Stick by your convictions man.

 Fuck what every day trader says. Don't be one.

 Don't be leveraged.

Short and wait and hold.

 Go to your grave with your convictions and you can hold your head high because you did what you believe in. Fuck them.

Mon, 09/13/2010 - 18:00 | 579402 IrrationalMan
IrrationalMan's picture

agreed.  if it feels good, dont do it. 


also the advice on not betting alot is key as you can average down, or up in this case. 

Mon, 09/13/2010 - 18:40 | 579459 Implicit simplicit
Implicit simplicit's picture

Irrational man. Your avatar is wise for ina an irraational world and market, it is only the irrational line of thinking that is prepared for the outlier events that truly are game changing.

I'd say we're about due for some outlier news. In this world gone beserk we are overdue.

Mon, 09/13/2010 - 18:53 | 579483 patiobeach
patiobeach's picture

ok, I'm all in now.

Mon, 09/13/2010 - 21:36 | 579747 Implicit simplicit
Implicit simplicit's picture

Hopefully short.

Mon, 09/13/2010 - 19:17 | 579524 Red Neck Repugnicant
Red Neck Repugnicant's picture

No.  Don't stick to your convictions.  That's bad advice.  And don't trade based on how you'll feel at your grave site. No one is going to give you a gold-metal before they cover you with dirt. 


Sticking to your convictions and waiting for them to be proven right is a one-way ticket to insolvency.  

Adapt or die. 

Mon, 09/13/2010 - 21:35 | 579744 Implicit simplicit
Implicit simplicit's picture

Advice is relative. I don't use leverage. I don't believe in daytrading; therefore their mantras do not apply to my investing.

I will not go insolvent because I don't invest all my money, and I am not investing anyore than I  am willing to waste on insurance like my house, car, business etc...

There is more than one way to look at investing.I believe the market will collapse, and I am willing to wait.


Wed, 09/15/2010 - 11:53 | 583327 skohiu
skohiu's picture


it's hardest to short when you're uncomfortble, but that's the time to do it.

Mon, 09/13/2010 - 17:14 | 579311 Implicit simplicit
Implicit simplicit's picture

The only towel that I will be throwing in is the huge messy bib towel from feasting on the slop made while devouring the bull.

Mon, 09/13/2010 - 15:58 | 579129 VWbug
VWbug's picture

You know what?  Fuck it.  They can have it.  I don't care anymore.  I'm not losing anymore money.  The dickheads doing this can play with themselves to the end of days.  I don't care anymore.

must suck to be wrong 90% of the time.

i'd suggest being more open minded, but we all know some people prefer to be irrational about things.



Mon, 09/13/2010 - 16:03 | 579148 Boilermaker
Boilermaker's picture

I'm not 'wrong' at all.  And guess what aren't 'right' either.  That's the fucking point.  But, I know an ignorant fly-covered piece of shit like you can't grasp that.  To you, it's some sort of bravado bullshit and you're probably all of 25 years old...and a eurotard at that.

In short, just in case I wasn't clear, go fuck yourself.  This kind of game is just meant for dumb shits like you.  In the end, just like all other numb nutted retards, you'll be left broke and scratching your head wondering where it all went wrong.

Mon, 09/13/2010 - 16:16 | 579183 VWbug
VWbug's picture

sometimes i am right, sometimes i am wrong, the point is, i have an open mind, unlike you.

when the market goes against my beliefs, such as today, i have no problem admitting i am missing something and i go along for the ride or stay out.

I am bearish but made out ok today.

I figure if i can survive or even make a little on a bad day, think of how good things are when i get it right.

but then, i'm just a retard, lol, who won't have to work again.

sure makes me glad i'm not super brilliant like you, lol.

Mon, 09/13/2010 - 19:55 | 579597 homersimpson
homersimpson's picture

"but then, i'm just a retard, lol, who won't have to work again" Even retards hit IPOs.. or brag about what they have on the internet - even though it can never be verified.


Mon, 09/13/2010 - 17:40 | 579356 Abiggs
Abiggs's picture

Havn't you heard that retail investors are nonexistant in this market - Hate to break it to you but you can't outsmart the automated robots nor desks upon desks of "the brightest minds" the world has to offer...

A word of advice - follow your friends out the door before you lose all of the retirement income you've worked so hard earning under the hoods of those cars you fix everyday for a living...

Stop chasing the "trade your way to freedom" pipe dream you read about in investing books and sites like this which offer an "alternative" opinion about global capital markets that you plan on "making money" off of.


Mon, 09/13/2010 - 19:57 | 579598 homersimpson
homersimpson's picture

"GROW UP ASSHOLE" - remember - Abiggs is always around during a bull run because he wants to inform ZH readers that he's always smarter than we are.

Mon, 09/13/2010 - 21:01 | 579688 VWbug
VWbug's picture

well ya see i made a living as a trader for 25 years, so i'm not exactly retail.

and, i am more often short than long these days, so no need to worry about me, i plan to make a killing if and when this market turns.

but i do well no matter which way it goes, which is the point many of you are incapable of understanding.

another difference is, when i am wrong i don't blame the fed, obama or the trilateral commission.

i'm happy you guys are dogmatic, like i said, how else would i ever get stocks sold to me at the bottom?

Mon, 09/13/2010 - 21:53 | 579763 Boilermaker
Boilermaker's picture

I have 18 inch dong.  Really, I do.  No, really, I do.

Mon, 09/13/2010 - 23:00 | 579860 milbank
milbank's picture

"well ya see i made a living as a trader for 25 years"

Typical internet B*llsh*T.

If you really were you certainly wouldn't be dicking on these dopes about what a "pro" you are.


Mon, 09/13/2010 - 16:00 | 579135 Nucking Futs
Nucking Futs's picture

Sorry to hear but you're probably not the only one hurting.  As much as I agree that with ZH fundamentally that the economics of this market is ass backwards and is in total bizzaro world, one of the perils of this website is to become a permabear.  The markets will do what they do (controlled by the puppet masters).

All this manipulation will probably come to fruition with the most glorious collapse of an economy the world has ever seen and all the bears will be able to make a trillion gazillion dollars worth of worthless paper money, but the writing was on the technical analysis wall that we'd see some sort of a rally.  The FED will do EVERYTHING they can to keep this charade up.  Stop fighting the tape and just go with the flow.

Someone on ZH said this quote but it stuck with me, "the markets will move in the direction that hurts the most people".  Trade objectively.  Good luck.

Mon, 09/13/2010 - 16:06 | 579160 Boilermaker
Boilermaker's picture

Thanks, but I'm not 'trading' anything.  I'm not interested in playing with a rigged deck, even if I 'win'. 

I appreciate the good words but, no shit, if I'm going to literally gamble, I'd rather put it on the Colts and enjoy the game or go to Vegas.

This has become truly worthless shit at this point and in my opinion.  I don't care if you're long or short.  It's fucking worthless.

Tue, 09/21/2010 - 18:39 | 595993 Mr Poopra
Mr Poopra's picture

You echo my exact sentiments.  It has nothing to do with bears and bulls but the realization that the game is rigged.  At this point it becomes nothing more than a casino without the complimentary drinks.  I fear, however, that the actual crash is being postponed until the Nov elections, don't be surprised if the markets will continue their mysteriously arbitrary gains until that time.

Mon, 09/13/2010 - 16:33 | 579220 Divided States ...
Divided States of America's picture

When the shit hits the fan, I dont think making money shorting the apocalyptic collapse of the stock market would do any good. You can have millions of dollars in your account but the bank that its held is, is FUCKED, the counterparty of the other side of the trades are FUCKED, the institutions that are supposed to insure your account is FUCKED, and the country, which is runned by a bunch of self profiting politcians, is FUCKED.


Mon, 09/13/2010 - 16:49 | 579261 Implicit simplicit
Implicit simplicit's picture

Everyone getting fucked and not even enjoying it. What the hell has the world come to?

Mon, 09/13/2010 - 16:55 | 579273 centerline
centerline's picture

Yeah - but it will be an interesting ride.


kind of like....

Mon, 09/13/2010 - 17:40 | 579364 apberusdisvet
apberusdisvet's picture

That's why you don't put your Pms in a safe deposit box; "they" can close banks with no notice, any time, any where.

Mon, 09/13/2010 - 23:42 | 579930 prophet
prophet's picture

a.k.a "max pain" 

Volume at price, open interest on options and futures, shorts, pump and dump, even predator algos, all use max pain as part of their foundation


Tue, 09/14/2010 - 00:21 | 579974 Mark McGoldrick
Mark McGoldrick's picture

@ Nucking Futs

"the markets will move in the direction that hurts the most people"

I think that was me.  Midway down.


Mon, 09/13/2010 - 16:04 | 579152 SheepDog-One
SheepDog-One's picture

I hate this world, no matter what theres always some evil there behind the curtain. Fuk it all FTW.

Mon, 09/13/2010 - 19:52 | 579592 Red Neck Repugnicant
Red Neck Repugnicant's picture

It is obvious that you hate life.  Your comments - especially the one about wishing for another 9/11 attack -  are indicative of someone who lives in total darkness. 

I think you've spent a little too much time drinking the ZH kool-aid.

If you're a pessimist and are looking for reasons to hate the world, ZH is the drug for you.

Consume with caution.  

Mon, 09/13/2010 - 21:21 | 579724 StychoKiller
StychoKiller's picture

Warm hemlock is an acquired taste...

Mon, 09/13/2010 - 19:27 | 579541 Trimmed Hedge
Trimmed Hedge's picture

Aww, Boiler...

So how much did you lose today on your ill-timed puts?

Judging by your ranting today, I'd say a good 15-20% of your capital -- if not more.

I know, I know... the market's rigged, and it's everybody's fault except for the person doing the shitty trading.

Door, ass, etc.

Mon, 09/13/2010 - 19:43 | 579568 Boilermaker
Boilermaker's picture

Uh nothing as they aren't expired and won't be until next month and again in January.

But, hey, what the fuck ever.

Mon, 09/13/2010 - 19:47 | 579576 Trimmed Hedge
Trimmed Hedge's picture

Mark-to-fantasy, got it.


Wed, 09/22/2010 - 00:26 | 596540 obelisks
obelisks's picture

I share your sentiment Boilermaker but how can you trust Put options when

TPTB won't allow this market to fall no matter how bad the news seems to be ?

Mon, 09/13/2010 - 15:34 | 579058 unwashedmass
unwashedmass's picture

ya know....just a thought.....the Fed might let the markets go before the election...just to ensure that Dems' demise is sealed, and the banks get their Republican puppets in place to stop all this nonsense about auditing the Fed and Fort Knox, and stopping the games at the Comex.

I'm not making the assumption that they want things to go smoothly ...... the ONLY reason i see for pumping the market to the moon is to make one last attempt to lure in retail and get rid of all this overpriced crap the banks now have on their books due to ramping ....

i mean, where are the retail saps? aren't they supposed to be getting all lathered up now and storming into the markets?

Mon, 09/13/2010 - 15:37 | 579060 Boilermaker
Boilermaker's picture

I think the FED is interested in protecting the FED and hiding the man-behind-the-curtain forever.  They are beholden to no party, no man, and *certainly* not the citizens of this nation.

Mon, 09/13/2010 - 15:39 | 579077 unwashedmass
unwashedmass's picture


that's exactly what i mean, and complete political disarray and President who is effectively neutered with a furious population is more advantageous to the Fed....

what are the advantages of a market ramped to the moon? other than allowing the institutions to dump their stocks at skyhigh prices on retail? if they can get them back in......Not much.....i guess you might think that some heat would come off Ben, but....probably not as the fake employment numbers and exploding states and municipalities are putting lie to everything he and Geithner say these days.

Mon, 09/13/2010 - 16:17 | 579185 SheepDog-One
SheepDog-One's picture

zlet em keep pumping, trying to create hype and panic buying! Its NOT going to work because everyone sees what a bunch of damn crooks they all are! This is DESPERATION, not an economic plan!

Mon, 09/13/2010 - 17:17 | 579318 Ben Graham Redux
Ben Graham Redux's picture

Desperation - that's exactly how it appears to me.  They saw $7.6 billion walk away last week and got scared.  This move has been on extraordinarily low volume and right into the face of a mid-term election.  It reeks of desperation.

Mon, 09/13/2010 - 19:29 | 579545 SheepDog-One
SheepDog-One's picture

Agreed. This is not a long term plan, its desperation! I dont believe they even have any idea what theyll do next week, much ess next year. Everyones abandoning their God, the stock markets, and theyre freaking the hell out.

Mon, 09/13/2010 - 17:54 | 579389 1100-TACTICAL-12
1100-TACTICAL-12's picture

i mean, where are the retail saps? aren't they supposed to be getting all lathered up now and storming into the markets?


Cashin out to pay their mortages or their kids mortage, Or buyin PM,s food, water & the like.

Just a guess...

Mon, 09/13/2010 - 15:37 | 579062 hedgeless_horseman
hedgeless_horseman's picture

Glory be!  What would we do without an elastic currency?

Mon, 09/13/2010 - 21:23 | 579727 StychoKiller
StychoKiller's picture

There is a difference between latex and Silly Putty (TM)!

Mon, 09/13/2010 - 15:38 | 579065 Ragnarok
Ragnarok's picture

We all knew nothing will happen until after elections.  Also, if this takes 2-3 years to play out so be it. I could use the time to become more financially independent, plant multiple banking and electronic flags globally and purchase more of that barbaric relic at a Fed subsidized discount.  It will collapse, just not tomorrow.

Mon, 09/13/2010 - 19:05 | 579497 unununium
unununium's picture

"Something" happened before the elections in 2008.  "It" could happen again.

Mon, 09/13/2010 - 15:38 | 579066 HedgeFun
HedgeFun's picture

Noone is mentioning the decline in 30y yield while the market melts up and dollar melts down...

Mon, 09/13/2010 - 15:41 | 579084 DavidC
DavidC's picture

Karl Denninger picked up on it earlier.


Mon, 09/13/2010 - 16:01 | 579139 TooBearish
TooBearish's picture

USD devaluation saves all USD assets, handing foreign "investors" a double bagger, thats Ben's desire

Mon, 09/13/2010 - 16:21 | 579196 Spalding_Smailes
Spalding_Smailes's picture


Mon, 09/13/2010 - 16:13 | 579180 LooseLee
LooseLee's picture

I noticed it, too, and was (and still am) puzzled by it all. Is this to be subtly ignored or is it a canary in the coal mine?

Mon, 09/13/2010 - 15:38 | 579067 traderjoe
traderjoe's picture

Looks like they are going to ramp them into the close...

Mon, 09/13/2010 - 15:38 | 579069 Pillage
Pillage's picture

Bernanke  is a republican

Mon, 09/13/2010 - 15:43 | 579087 Boilermaker
Boilermaker's picture

Bernanke is partyless.  He's well above that shit as are his cronies and masters.

Mon, 09/13/2010 - 19:10 | 579505 unununium
unununium's picture

Bernanke is clean.  He was chosen for his unwavering propensity to print.

Mon, 09/13/2010 - 16:08 | 579166 SheepDog-One
SheepDog-One's picture

Um, no...Ben Shalom Bernanke is a ZIONIST! Theyre ALL Zionists and laugh at the 'Demican/Republicrat' control system THEY designed for the stupid flock of sheep to make them think they have 'a choice', omfg laughable.

Mon, 09/13/2010 - 16:18 | 579193 SheepDog-One
SheepDog-One's picture

Fuking losers cant handle the TRUTH!

Mon, 09/13/2010 - 17:15 | 579315 BlackChicken
BlackChicken's picture

Hey SheepDog, at least you can spell loser, I had a problem with that last week...LOL.

Mon, 09/13/2010 - 19:26 | 579536 SheepDog-One
SheepDog-One's picture

Hey if they cant handle it, fine with me. Probably a couple random permabull 'tards, or Leo's fanboys theyre always flagging me since I give him so much crap for his 'Chinese solar stock boner charts' thats OK theyll be shrieking in protest soon enough anyway.

Mon, 09/13/2010 - 23:09 | 579877 milbank
milbank's picture

Speaking of which, has anyone ever told you you are the definition of the word "transference"?

Mon, 09/13/2010 - 15:39 | 579073 gookempucky
gookempucky's picture

Consider the SS account and track. Currently at 2.5 trillion in Treas and growing..

Follow the flow upstream and downstream--evry nickel recieved via SS is for one thing only---- purchase treasuries. Want transparency? never as cusip will never be open.

Swim at your own risk.


Mon, 09/13/2010 - 15:40 | 579076 DavidC
DavidC's picture

Just a thought - if the Fed ends up owning everything, what is the value of an asset if nobody else wants it? Presumably, zero?

Russel(l?) 2000 pushing on 2.6% move today - strange.


Mon, 09/13/2010 - 15:41 | 579081 Ancona
Ancona's picture

This asexual creation of money directly from nothing is so completely absurd that I refuse to allow the information to sink all the way in.

Mon, 09/13/2010 - 15:45 | 579099 hedgeless_horseman
hedgeless_horseman's picture

Does that work?  Not the asexual part, but the refusing?

Mon, 09/13/2010 - 21:26 | 579733 StychoKiller
StychoKiller's picture

Ancona is frustrated, inhibited and nobody understands him/her!

Mon, 09/13/2010 - 15:40 | 579082 Segestan
Segestan's picture

It's a catch 22... saving the system means there is no system, letting the market system run free , unleases credit collapse = Hyperinflation. 

Mon, 09/13/2010 - 15:41 | 579086 Boilermaker
Boilermaker's picture

AND....BOOM a Saturn V exposion into the close just for fuck sake.

Whatever.  Honestly...what-the-fuck-ever.

Mon, 09/13/2010 - 15:45 | 579097 Village Idiot
Village Idiot's picture

"AND....BOOM a Saturn V exposion"

Boiler, are you asian?  Just curious. ;-)

Mon, 09/13/2010 - 15:48 | 579109 Boilermaker
Boilermaker's picture

Nope, I'm just a garden variety round eye....caucasion too.

Mon, 09/13/2010 - 15:44 | 579089 unwashedmass
unwashedmass's picture


Hey guys, don't miss what JPM is doing to silver into the close.....if you wanted it below 20, now's the moment.

Mon, 09/13/2010 - 15:44 | 579094 Fazzie
Fazzie's picture

 This is why the Fed dosent have to personally buy futures etc. They can get the PDs to goose the market easily.

   No GOP candidate will point out the Fed bankrolling the TBTFs gambling habit either.

 Its more important to maintain the status quo and keep the racket going.

 Lately it hasnt even been necessary to argue about anything, the Dems slipping in the polls equals automatic GOP win.


Mon, 09/13/2010 - 15:45 | 579096 CorrelationTrader
CorrelationTrader's picture

Help wanted whats the calculation for the 2s10s30s fly in Bloomberg that Tyler has in his cchart?

Mon, 09/13/2010 - 16:05 | 579156 hdunn2
hdunn2's picture

(USGG10YR Index - USGG2YR Index) - (USGG30YR Index - USGG10YR Index)


Hope this helps!

Mon, 09/13/2010 - 15:46 | 579101 nmewn
nmewn's picture

Hey did I miss anything?

Mon, 09/13/2010 - 15:47 | 579102 Every Third Word
Every Third Word's picture

I will tell you where the retail went with their cash, it's not rocket science but I have not seen this anywhere else...

They took their cash to:

1. Pay down certain debts

2. Buy ShitPads

3. Pay operating expenses.


Consumers are exactly like businesses: They overlever they either place capital or sell assets for liquidity. And the consumer has sold equity to raise liquidity.

Think about it: If the consumer used the equity in their home to pay bills, take vacations, pump up GDP, they still need funding from somewhere even if the homes can't provide it... so they raid 401ks etc....

A certain segment of the consumer is pay check to pay check, more than anyone suspects. And when they are forced to retire by choice or circumstance, they will have two choices since they have NO savings to support their lifestyles nor social security to support their lifestyles: These people either move in with kids -OR- they get in to government housing and the government imputes rent, utilities, etc so we fix the long term cash needs of Social Security cause Uncle Sam takes out the imputed rent, utilities, health care, food etc once you live under "his roof"... Plus with govt health care we can medicate them so they can't understand the next step... Which thanks to A-Cup Burnett's rants, is clearly laid out: Uncle Sam will limit medical expenses in the last year of life to make way for the next round of retiring Boomers cause what is the real RoI of keeping you alive that lasy year before death, or 18 months, or 3 year, or 5 years before death? ... Great endings the Boomers will live: Live in communal housing, smoke dope courtesy of Uncle Sam so you're docile to the end.... Nice job Boomers.

Mon, 09/13/2010 - 17:11 | 579303 Eureka Springs
Eureka Springs's picture

Already there. 1 in 7 Americans now live in poverty.

Mon, 09/13/2010 - 18:27 | 579443 Turd Ferguson
Turd Ferguson's picture

this is already priced in and the street was expecting 1 in 6.9, so, what's the problem?

Mon, 09/13/2010 - 20:53 | 579674 AccreditedEYE
AccreditedEYE's picture


Mon, 09/13/2010 - 15:48 | 579105 jbc77
jbc77's picture

For me, today in particular really marks the "it's pointless" juncture. I mean haven't bet short in months. I finished with it. The fed is in total control of the market.

Whats scary, short covering, a natural stopper in declining markets has essentially been eliminated and wiped out. I wish the fed the best of luck trying to keep thing glued together when they have to stop QE'in. Fuck it, maybe they'll never stop.

Mon, 09/13/2010 - 15:50 | 579110 Boilermaker
Boilermaker's picture

Amen.  You have to know when you've crossed over from absolute bullshit to absolutely fucking pointless.

TA - DAH.  I'd rather watch professional wrestling than even bother with this shit anymore.

Mon, 09/13/2010 - 16:05 | 579137 Turd Ferguson
Turd Ferguson's picture

In surreal world where we currently reside, I'm disillusioned as well. I feel like Tom Cruise in Vanilla Sky, where I'm standing in Times Square and its empty.

(at the 2:20 mark)

I look around and expect others to see what I see. Its so obvious. But yet, no one does. The few kindred souls I have here at ZH are the only other people on the planet that seem to "get it".

Oh well. I've tried. I've insulated and protected myself and my children. What more can i do. We are truly doomed. Of this, I am certain. Before the end, however, many will be flogged on the altar of the Fed. I, for one, will not.

Mon, 09/13/2010 - 16:12 | 579176 PlausibleDenial
PlausibleDenial's picture

I hear you...  My girlfriend gives me the evil if someone asks a question about the market/economy.  And, I know that many consider me to be Dr. Doom, but damn, I can read.  However, this is how I am suppost to make a living so I am trying to figure something out besides outright "black ops" against these bastards.

Mon, 09/13/2010 - 16:52 | 579266 centerline
centerline's picture

Amen brother.  I have been fighting the same fight for so many years now I can't even remember how far back it goes.  Everyone seems to think there is some magic way of doing things that is better than the "logical" way.  Mass delusion fostered by over a decade of easy money (err.. leverage).




Mon, 09/13/2010 - 16:06 | 579159 VWbug
VWbug's picture


now who am i going to get to sell me cheap stocks?

i'm still looking for some at 5% dividend yields, and still dreaming about 10%, but that would be a bad investment right?



Mon, 09/20/2010 - 20:12 | 593543 Kayman
Kayman's picture

I think Madoff was offering  a 10% dividend.  That is, you got 10% of your money back and he kept 90%.

Mon, 09/13/2010 - 16:12 | 579178 SheepDog-One
SheepDog-One's picture

Apparently every day now it will be all indexes up +- 1%...fuk it I'd rather watch midget wrestling and when it all inevitably comes unglued I'll be far away from Geithner and Bernankes little hooked claw hands!

Mon, 09/13/2010 - 19:23 | 579533 SheepDog-One
SheepDog-One's picture

Somebody actually JUNKED that post? What a jackass.

Mon, 09/13/2010 - 15:51 | 579112 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Basel III clears up everything for Europe since the banks can wait 8 years to recapitalize (how much in a dog's life?) but then again the USDCHF is almost at par and EURCHF back down below 1.30 again ... glad to see there are no worries in Europe so full steam ahead.

Mon, 09/13/2010 - 15:55 | 579122 unwashedmass
unwashedmass's picture


and by the grace of god and 30x leverage, they will rebuild their balance sheets over the next nine years of no civil unrest, no terrorist attacks, no counterparty defaults and a population looking at the resulting hyperinflation and docilely still buying bonds....

yup. that's gonna happen.

Mon, 09/13/2010 - 16:02 | 579141 SpeakerFTD
SpeakerFTD's picture

This is the fundamental problem, imo.  The market is so unstable at the moment, that should a true black swan occur, the resulting makret violence may rival anything we have ever witnessed in modern times.

In the absence of such an event, the Fed can keep this going for the foreseeable future. 

My hope, which I actually think has a delta larger than most might believe, is that when the Fed is finally dragged in front of the Supreme Court next year, they flex their power of judicial review and declare the wholly criminal edifice unconstitutional.


Mon, 09/20/2010 - 20:15 | 593548 Kayman
Kayman's picture

Why wait 8 years ? Implicit in Basel III is all European banks are overleveraged.

It all comes down to printing money now.

Mon, 09/13/2010 - 15:54 | 579121 Jason T
Jason T's picture

Now just imagine the anger and hatred in Germany 1923.

Mon, 09/13/2010 - 16:00 | 579133 Mad Mad Woman
Mad Mad Woman's picture

The answer to their problems....churning out ever more money and sprinkling it like fairy dust all over the markets. Hey Ben, I'll take some of that cash off your hands and invest it better than you & your PD's ever can or ever will. I'll take $100 million please. Call me soon, ok Ben?

Mon, 09/13/2010 - 16:19 | 579194 breezer1
breezer1's picture

the increasing number of government workers will be enough to keep the system going. they do pay taxes you know. we should hire more of them. they will keep the money circulating until the private sector picks up the slack. in the meantime we should all be given food cards like that guy in south america is giving out to all the citizens. we could have a food card czar. i'm in.

Mon, 09/13/2010 - 16:33 | 579223 Mad Mad Woman
Mad Mad Woman's picture

It could be a long time till the private sector picks up the slack. I'm not so sure that hiring more govt workers that pay taxes will do the trick. The govt would have to hire millions of workers to make it work.

Mon, 09/13/2010 - 17:23 | 579331 nmewn
nmewn's picture

Government workers are paid through taxation of private enterprise.

Well, until they just print money to pay wages. Then we are talking about a completely different system of government& economy.

I believe Castro just announced that way ain't workin out so well ;-)

Mon, 09/20/2010 - 20:18 | 593554 Kayman
Kayman's picture

government workers recycle your (private sector) taxes.  It is a negative multiplier for taxation.

Mon, 09/13/2010 - 16:02 | 579138 lizzy36
lizzy36's picture

Bernie Ebbers should be pardoned and hired by the NY Fed.

Mon, 09/13/2010 - 16:08 | 579140 plocequ1
plocequ1's picture

But, But what about the Baltic dry index, The Hindenburg Omen , The Death cross and all those other Photoshop creations?

Mon, 09/13/2010 - 16:02 | 579143 Dismal Scientist
Dismal Scientist's picture

I think I'll wait a little longer to buy some VXX. Its getting absolutely hosed. Bond equity decoupling today as well. If its any consolation, not many people I know are having any fun at all with this market at all.


Mon, 09/13/2010 - 16:12 | 579177 Spalding_Smailes
Spalding_Smailes's picture

I bought at $17.78 today.

I need a book burning or a moody downgrade ... something.



Mon, 09/13/2010 - 16:18 | 579191 Dismal Scientist
Dismal Scientist's picture

Wish you the best of luck, am going to try next week. Think option expiry is going to mess everyone's plans up this week. Its triple bitching, sorry witching, ie: death to put buyers.

Mon, 09/13/2010 - 16:25 | 579206 Spalding_Smailes
Spalding_Smailes's picture

Thanks gulp ....


Mon, 09/13/2010 - 16:26 | 579210 nmewn
nmewn's picture

Well we'll have something to enjoy or commiserate on...I was early bought Friday...$18.54.

Tomorrow is retail sales before the open...we'll see how it goes.

Mon, 09/13/2010 - 16:38 | 579239 Implicit simplicit
Implicit simplicit's picture

The shit hits the fan before the end of the weak, as soon as the last weak hand shorts crater; then it will be the long squeeze down and time for the bulls to panic.

Mon, 09/13/2010 - 16:58 | 579276 nmewn
nmewn's picture

Probably so. They can see ours while we can't see theirs & they of course use our own money against our position (long or short) with impunity.

I look at it like this...LOL.

Mon, 09/13/2010 - 17:03 | 579285 Implicit simplicit
Implicit simplicit's picture

Nice sketches. Two of my kids are art majors in college.

Mon, 09/13/2010 - 16:42 | 579247 Spalding_Smailes
Spalding_Smailes's picture

Still a good price. All time low ...

Dollar falling fast, yen still in the clouds, iran, irish banks,muni debt...

Six weeks ago everyone was talking double dip. This thing is not running much past s&p 1220.00 without the chart guys giving pause ...



Mon, 09/13/2010 - 17:04 | 579288 nmewn
nmewn's picture

I think so too.

The 1120-1130 area on the S&P has rejected it back before...even with the higher previous low...I think it's way over due for a pull back.

Bonds advancing with stocks...give me an effing break.

We shall see comrade ;-)

Mon, 09/13/2010 - 21:16 | 579718 VWbug
VWbug's picture

i think we could see 1160/70 easily, but above 1200 will be difficult.

i am quite sure we'll be testing 1040 before long, but for the life of me i can't think of what bad news will trigger it...

doesn't matter though, i will stick to trading the range, it looks like it could go on for years.

Mon, 09/13/2010 - 16:33 | 579222 Implicit simplicit
Implicit simplicit's picture

This smells like a good time to short and hold long term like people use to buy and hold.

 Been buying small amounts of VXX for the past few trading days.

 I understand about the contango and theta burn, but even with that, I'm confident unleveraged.

Mon, 09/13/2010 - 16:03 | 579149 RobotTrader
RobotTrader's picture

Epic breakouts in India and China funds....

Emerging market bears must be sweating.....


Tue, 09/14/2010 - 00:31 | 579983 Fast Twitch
Fast Twitch's picture

Almost time for bears to hibernate...

Mon, 09/13/2010 - 16:04 | 579153 Pez
Pez's picture

If we could some how off-shore The FED to India we may have a chance of recovery. (and save money)

Mon, 09/13/2010 - 16:06 | 579155 RobotTrader
RobotTrader's picture

ZION up 7%, JCP up 5%, XRX up 8%.

They are buying any and all junkers to "make their year".


Mon, 09/13/2010 - 16:27 | 579213 reading
reading's picture

JCP...another 51% and it'll be back at the april high...

Zion just 30% off the April high

XRX best of the lot only 19% to go to april high..

Hell of a "market" to want to own any of this for more than 5 minutes.

Mon, 09/13/2010 - 16:06 | 579161 unwashedmass
unwashedmass's picture


JPM did a swell job of ramming silver down for the close. Under 20 now for anyone who wants  to jump on board.

Mon, 09/13/2010 - 17:58 | 579396 liberal sodomy
liberal sodomy's picture

looks like chris pia may have gotten another job.

Mon, 09/13/2010 - 16:07 | 579163 HEHEHE
HEHEHE's picture

Warren Bufffet says all is well today too.  They got the whole team working today.

Mon, 09/13/2010 - 16:09 | 579170 unwashedmass
unwashedmass's picture


that's cause things are getting dicier by the minute. You see that Harrisburg PA is going under? Saved at the last minute by the FED/state...but Harrisburg? Hello? How many others are teetering? How do we save them all?



Mon, 09/13/2010 - 21:34 | 579745 StychoKiller
StychoKiller's picture

How many plates can be spun before you forget about one??

Mon, 09/13/2010 - 16:11 | 579172 nmewn
nmewn's picture

S&P up 1.11% and UUP is down -1.08%.

Down is up...up is down ;-)

Mon, 09/13/2010 - 16:11 | 579174 Dadburnitpa
Dadburnitpa's picture

The music is still playing, but I'm already in my chair.  Somebody big is going to get butt fucked (probably due to silver) and that unwind panic is going to have everyone fighting for a chair (preferably one that does not already have a pile of shit on it.)

Mon, 09/13/2010 - 16:16 | 579184 Spalding_Smailes
Spalding_Smailes's picture

The Cocca king in the UK should be blowing up soon, not much of a bang but still fun to see a guru get the cross over cornhole ...

Mon, 09/13/2010 - 16:17 | 579190 unwashedmass
unwashedmass's picture


someone big is in there dishing it right up for JPM and ramming it down their throats.

good. i'd like to see JPM take it up the rear .... preferably overnight  with silver roaring to 25.....


Mon, 09/13/2010 - 16:27 | 579212 breezer1
breezer1's picture

big money in germany buying physical and china as well. silver could do it.

Mon, 09/13/2010 - 16:39 | 579242 silvertrain
silvertrain's picture

 Exactly correct sir..It will be silver and the demand without the supply thats going to be the sucker punch thrown from out of nowhere thats going to knock out the lights..

Mon, 09/13/2010 - 16:26 | 579208 Bankster T Cubed
Bankster T Cubed's picture


it is as simple as that

Mon, 09/13/2010 - 16:29 | 579216 john_connor
john_connor's picture

Market is at same level it was in November/December 2009.  Sigh.

Mon, 09/13/2010 - 16:32 | 579221 ColoradoNugget
ColoradoNugget's picture

CNBC is in on the plot.  Theire meme all day has been "the charts are pointing to a breakout" in stocks.  Hmm.  Why all of a sudden is CNBC pumping the market, at a time when we are pushing the upper end of the trading range?  Ya think MSFT may also be playing this game, or was the story of their borrowing money to pay for dividends and buy back stock, timed in the final hour of trading, just a coincidence?

Me thinks some very large powers-that-be are going to make a concerted effort to gun the S&P to the CY highs by Election Day.  All aided by the media, CNBC in particular.  Could work.....or could fail spectacularly.

Mon, 09/13/2010 - 21:24 | 579729 VWbug
VWbug's picture

yeah could be a worldwide conspiracy to manipulate the market higher, involving all major media, polticians, CB's, etc.

Or could be a lot of bad news is already out and some people decided to go long.

take your pick.

Mon, 09/13/2010 - 16:33 | 579225 cocoablini
cocoablini's picture

Read the writing on the wall.
iF there are record retail outflows and
IF people are pouring into treasury funds
Then that process is giving the government all they need to keep the hologram projected. All they needed was the dumb congress to prime the pump in 2008 with TARP. It's like a siphon- the tarp money started the bond/ cash pump and it's been running since. Auction bonds- print money- buy toxics-trade in for treasuries- sell treasuries for cash during POMO- spend cash on stock market and risk assets.
In fact, With Basel 3 and toxic monetization the FED is created a helluva lot more money than the original quantitative easing Indicates.
I don't know why they even bother telling us about quantitative easing intentions- it's obvious they are ALWAYS monetizing all kinds of debt and toxic obligations. Offshore, through primaries, dark pools.It's their system, it's their money not YOURS.
So if the stocks are ramping it's because that's the bargain and stocks are probably better than 1 cent on the dollar derivatives.
If Wall street has to lay off staff because no one is investing except Uncle Sam via proxy, it's their own fault.
Like everyone else, we need to vote with our actions:
1- do not buy and trade anymore. You are just generating fees
2- buy metals or assets you are confident in that will have real value in the future - not because they say it has value
3-don' t vote for Republican and Democrat trash anymore...ever.
4- move your money to a smaller regional bank
5- pay off your debt as fast as possible and hence remove principal from banks and this hurts their reserve requirements.
6- Don't borrow money
7- vote against all municipal and state bonds as they just generate money supply for the banks and government
8- buy local foods and goods as much as possible- in cash
9- barter and pay in cash. Do what the Greeks do- offshore transactions off the radar.

The system is corrupt, deserves none of your labor or hard work and time.
Keep in mind the system will destroy your savings and hoarding however it can. Do not depend on being able to retire on savings or hoarding cash and gold. They will "get it" no matter what. You just have to succumb to European socialism and it's caste system. You can affect the system by a person at a time.

Mon, 09/13/2010 - 16:59 | 579277 Implicit simplicit
Implicit simplicit's picture

Sounds like a good plan. May I suggest Credit Unions rather than small reg. banks though.

Mon, 09/13/2010 - 16:40 | 579237 Internet Tough Guy
Internet Tough Guy's picture

Gold doesn't even move, it's been pinned there for 2 weeks. The market is skying on POMO money. Bonds are a rollercoaster. It's crazy time. No way this game goes through the end of the year, no way.

Mon, 09/13/2010 - 19:20 | 579526 SheepDog-One
SheepDog-One's picture

The decided wisdom is 'it goes on forever', I agree with you I dont think it goes on much longer at all. This is illusion for a much bigger thing they have planned, the rug will be pulled out soon.

Mon, 09/13/2010 - 16:41 | 579248 digalert
digalert's picture

Glad the PPT is at work. I like predictable markets.

Mon, 09/13/2010 - 17:11 | 579300 Thunder Dome
Thunder Dome's picture


Mon, 09/13/2010 - 17:48 | 579381 Fearless Rick
Fearless Rick's picture

Think options for the week. All activity is focused on short term gains.

Might I add #10 avoid taxation as much as possible, especially those "contributions" to SS and Med.

I'm with many others here: Out of the market and happy for it. Try yoga and/or gardening. Good for the soul and soil.


Mon, 09/13/2010 - 19:06 | 579498 Pseudo Anonym
Pseudo Anonym's picture

that's some funny shit tyler: "even as stocks are glued to VWAP as if with a tractor beam straight from Darth Vader's toilet" and "the ramp brigade just went truly apeshit". That's some pretty good comedy. Have you considered writing for sitcoms? That's what I want to know.

Mon, 09/13/2010 - 19:40 | 579558 nmewn
nmewn's picture

"That's some pretty good comedy. Have you considered writing for sitcoms? That's what I want to know."

He does write about sitcoms...everyday...LOL.

Mon, 09/13/2010 - 22:13 | 579793 Tipo anónimo
Tipo anónimo's picture

I haven't seen a TV for 7 months, haven't watched.  This show is way more interesting, plus I can take in the conversation at the speed of my eyes, rather than some dim lightbulb reading a script in real-time.

Mon, 09/13/2010 - 20:25 | 579645 Eric Cartman
Eric Cartman's picture

My thinkorswim prophet chart really fucked me on this trade. Is a bloomberg terminal the only way to successfully execute this trade? I understand how to do it but I'm afraid my software is not comparable with a fantsy Bloomberg terminal (and I can't afford the monthly payments right now). 

This can't be the only way. Has anyone else had success with the trade without a Bloomberg terminal? 

Mon, 09/13/2010 - 20:55 | 579677 Eric Cartman
Eric Cartman's picture

So basically the markets for wednesday and thursday will likely be in the green? 

Mon, 09/13/2010 - 22:08 | 579785 Tipo anónimo
Tipo anónimo's picture

Bernanke is the central banker, thus has only one true allegience "Hear o Central Banker, the lord thy Mammon is one"


Anything else is window dressing.

Mon, 09/13/2010 - 22:43 | 579840 Tense INDIAN
Tense INDIAN's picture

So Tyler, we should not be waiting for any significant downside move till the elections are over....right??

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