This page has been archived and commenting is disabled.
A moment of silence please, as we all enjoy Bernanke's panic.
- advertisements -
Contact Information:
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. Here's our Cookie Policy.
BOO YEAHHHHH
Bernenke? Geithener? Paulson?
Fruck 'em!!!!!!!
They deserve three hots and a cot, with their cellmate being a big burley guy who thinks they are sexy.
Now that is hilarious, but the sad truth is that everyone of us here will most likely be rounded up and shot by the Rockerfeller/Rothchild mafia squad before even a speck of do-do falls on their minions.
Not to put to fine a point on it, but fuck you and your defeatist bullshit.
Durden, the entire global interweb is (im)patiently waiting with bated breath for ZH to provide the real bona fide answer to what happened today.
{Sound of fingers drumming.}
Could you please hurry up - and while you're at it, please figure out how to keep your web site up & running? I swear, I think my IQ was dropping in lock-step proportion to the DOW as a result of being exposed to some of the other "financial" blog/web sites.
To think that so many who are supposedly knowledgeable about markets simply do not understand anything about the basic foundation of our (ponzi) economic system is a sobering thought.
What it says is we are way more forked than previously imagined. Just how many people out there really understand & realize how the fuck this game is constructed?
Indeed, lots of refresh button finger injuries today.
F5...F5...F5...(this is f'n bullshite)...F5...(is this what being banned from ZH is like?)...F5...F5...(I wonder what Martin Armstrong will be telling fellow inmates)...(wonder what Karl is saying...eh, good ole Karl talking about violence; bless him)...F5...(jeez)...F5...F5...F5...F5...(CNN is bullcrap...why do I ever sink this low...)...F5...F5...(oh, Mish...eh, thanks for nothin')...Faceboooook time - F yeah!
DOW -307
125 by tomorrows close doesn't look so outlandish now..
Harry? Harry? Should I dispose of the AAPL and go long gas ovens? Harry?
We may have just seen the PPT in action. I just saw the most wack-a-lack price action since...well for a while lets' just say.
I've had a hard-on for days now, and I haven't even had a taste of Cialis.
Will pay to see it!
Are the CAPTCHAs getting easier or did they just dummy them down for me?
You saucy monkey...CAPTCHA does whatever CAPTCHA wants. We never know what it's thinking.
And why the hell does that idiotic CAPTCHA constantly give me problems like (-33) times (3) equals (Blank), and when I insert the proper answer of (-99) it tells me that my answer is incorrect? It will NEVER accept a negative two-digit answer, even when that IS the proper answer to the question! Am I the only one who has repeatedly had to deal with this?
same experience here....no negative 3 character responses allowed
:)))) ssssssssss Shalom dont worry shalom , we people can decide on our own destiny.
Why would Bernanke panic? The dollar is surging upward dispite historical episode of money printing.
Strong dollar= USA economy recovery
We can print forever.
Keep the FED secret= Keep people alive!
perhaps he knows we're next?
Ben does know.
The market for sovereign debt is collapsing, just when Treasury needs to sell a boat load next week......and the week after that.....and the week after that.........and the following week.......and..and..and.
Hello is Ben there, we need him to create some money to but Treasuries. We don't care how or through what back door, just do it.
So we will witness Ben's last act as chairman. He will just be a QE bitch. No economist theory needed here, no college degree, no expertise on the great depression, no fine tuning of interest rates, no discount window machinations, no air of superiority, just how much, and when do you need the check to arrive.
Mark Beck
- check this out,
http://www.youtube.com/watch?v=ppEJ8r7bQ2o&feature=player_embedded#!
lol. Sounds like Johnny Most
http://www.youtube.com/watch?v=u6jdcrrzJeg&feature=related
It was fun.
But, the delivery has an air of market I told you so strategy. This is not uncommon, many people who talk to their "trader / analyst" profession, myself included, as if it will have any relevency to past historical trends, is really only for the customer's peace of mind.
The reality is much different. Intelligent investing, requires an effective system to put capital to work effectively and reward careful analysis in underlying strength. We do not have this type of market or economy today.
The glitch we had today was the result of the circuit breakers kicking in. But, this was to be expected. I have talked at great length about what people in my circles call a "trigger". It just so happended that it was Greece. But, it could have been Japan, or China flooding the market with Treasuries. Whatever the source of the trigger, the result was going to be the same. The big banks will break ranks and fend for themselves. They must take their profits or come next quarter they will look like chumps.
So really where should the market be. Well it is not based on fundamentals anymore. We do not have an investment economy. We have a government creation that is worse that a house of cards. It is a complete and utter loss of control. The market is really just a side show. A Dr. feel good index for the complacent. There is so much that has to happen to again allow capital to work that the effects will seem astonishing. During this cleansing its not if it will break, but how and in what directions.
If you sit down and go through some of the scenarios, what you find is that they are self supporting. That is, there is so much weakness built into the system, there can easily be a cascade of events. The linkage of weakness is just astonishing.
Our world has changed. Just ask the bond traders.
Mark Beck
oh, mark beck, your words are frightening and true.
Ben is that you....
All hail king JPY.
I miss Harry Numbnuts.
Classic ZH
All this carnage with only little old Greece in the headlines... Wait till France, Spain, Turkey, UK and the mighty US all get exposed.
France wont get exposed. This Greek bailout is going directly to the French banks.
Well.... not in this round. In this round, Greece and one or more neighbors eventually default, which leads to a banking crisis in the core EU countries that have loaned them all that moolah (France, Germany and England.) They have a banking crisis, then, probably no more than three years later, give or take... KABOOM - sovereign debt crisis in core EU states.
Hang on, it's going to be a bumpy ride.
Wow.. a Mercedes 500SL for the same price as a Chevy BUT that may not be so great for US exporters and manufacturers.
We hardly knew ya...
Danny Boy
http://www.youtube.com/watch?v=R_XJFp5JXpk
Watching Greece implode live on CNBC. Completely surreal. Tear gas launchings drowning out calls to BUY BUY BUY.
"BUY BUY BUY"
You called?
Can someone please explain why the Egregious Ben Bernanke will panic? I am being serious. Please. Thx.
I dont see him or Timmy scared at all.
Thanks to all. It's much appreciated. Very grateful.
Strong dollar prevents him from inflating-away our debt....
Plan A: Dollar debasement
Plan B: ?
Plan C: EVERYBODY PANIC!!!!
???
They can monetize the debt while the dollar is "strong" if they want to. The weakness of the currency is a symptom arising from monetization, not a means to it.
I won't argue with you -- I see it as "chicken and egg".
One other factor: strong dollar = more imports = fewer exports = fewer manufacturing (value-adding) jobs.
No matter what -- the Treasury loves the rush into bonds -- it defers the inevitable.
I am kinda new to this. But what I see is credit inflation, not dollar inflation, because the actual $ notes in circulation has not been jacked up. Credit inflation, on the other hand, is just ledger entries, they do not debase/devalue the dollar. For the posted collateral at the Fed, the banks have been granted additional credit that they are then parlyaing into easy 'earnings', but it is not actual $. If everyone were to demand actual $ notes for the liquidity 'pumped' into the system by the Fed, would there be enough $ notes? No. I am kinda confused at this point.
This may also explain why the ECB is attempting to limit cash transactions and requiring anything over $1500 for consumers to be through non-cash means. They know if they actually print those cash notes, then any value associated with that fiat currency is lost.
Someone advice me please.
Although "printing money is a euphamism of choice", its not really about printing actual notes in circulation.
http://research.stlouisfed.org/fred2/series/BASE
I was thinking about the same thing today. My friend and I used to call them "invisibles" in law school. The non-existent dollars you see on your bank statement. You're exactly right, they don't exist until someone asks for them. And what I see happening is that billions of invisibles were destroyed in real estate, IRAs, etc. and now the Fed is basically pumping more of them back into the system to reflate the markets back to where they were.
There's two facets of money that can succumb to inflation from what I see:
1. The actual paper currency, i.e. the amount of money actually in circulation. Which you're right, if they up those numbers will decrease the purchasing power.
2. But can the insibles succumb to inflation? It seems that they're just used to value investments. And there has to be a supply of credit in order for any investment to increase in value, i.e. basically the assumption that there's enough money lying around to cash in your winnings. But if everyone cashed in their winnings? Nope.
I don't see how this can go wrong. Make more invisibles out of thin air. US debt is made out of invisibles. It all is. Basically, keep the demand for actual dollars up (petrodollar, US bonds, etc) and you don't have to worry about the debt.
Thoughts?
Bank notes in circulation are not really the mechanism of fiat change, and if my memory serves me correctly, there has not been much change in their number over the past two years.
The creation of money is linked, in a sense, to the paper notes if you try and rationalize as per what a dollar (greenback) represents in labor. Labor is the real driver of actual worth.
The IRS survives by taxing labor. However, the problem is that when used in this context, we can see the amounts being wasted cannot be reconciled by "labor". That is, our ability to tax, both in terms of what can be tolerated, and what may be construde as growth, at this point, do not exist in a form that will offset the costs. The fact is, the first use of this money, to bail out the banks, or to buy MBS, is the most we will ever see in terms of real worth.
Essentually, the fiat approach increases the costs to savers, and is progressively more inefficient as time goes by. This can never be a positive thing for the economy. Some would argue that failure is a corner stone of a fiat based money system. It is self destructive and at some point you do not want to be holding the currency.
These types of effects are well known. So who ever has first access to the money needs to convert it to maintain real worth.
Mark Beck
I found this insightful since it clarified how the FIAT money system works. A must watch.
http://video.google.com/videoplay?docid=-8484911570371055528&hl=en#docid=6507136891691870450
My objection to "dollar-debt debasement" theory is that something like 80% of that debt is inflation-indexed.
They'd better be able to do it without affecting the COLA.
NO debt is "inflation-indexed" in the USA. TIPS and many of our entitlement payments are indexed, but only to the laughably lowball CPI, which today is not reflecting even 1/3 of the TRUE rate of inflation. And who isn't willing to bet that as the rate of inflation increases, the downward manipulation of the CPI will not become even more egregious?
Err, notsofast. The on-balance sheet debt of the federal government, a rather small part, isn't indexed to inflation, but socialist insecurity benefits and so forth are indexed to inflation. Those off balance sheet entitlement debts run to 50 trillion or something. Inflating doesn't make them go away. To do that you have to legislate, or regulate, down the outflux.
No, you are incorrect, and totally missing the point.
NOTHING on the balance sheet of the USA is indexed to inflation, but only to the CPI, which is demonstrably NOT the same thing at all, and grossly and perpetually understates the true rate of inflation, currently by more than 65%.
It is patently untrue to say that ANY debt or ANY obligation of the USA is indexed to "inflation". The ONLY indexing is to the CPI, which is the government's manipulated and lowball figure that only pretends to be the same as inflation, but is not.
akak is correct
said more gently: http://www.shadowstats.com - john williams.
look for the white-paper on CPI manipulation. interesting. labor contracts are based on this too. faking CPI is a profitable endeavor.
Thats what hedonics are for.
BANG!
Id invest in "Shadow Statistics TIPS" not "FED TIPS"
Point.
Distinguish between US debt and US unfunded entitlement promises to the electorate. The first is defaulted, the second is merely a change of plans.
Ben must kill the dollar to prop the markets to re-elect the blue team.
All central bankers are sweating profusely right about now. Ben is probably particularly unhappy that the dollar is not winning the race to the bottom.
Its like a Virus in the body, activated itself and started to shake EU bones, so most G7 nations have the same virus, this means shortly afterwards same thing will happen here, so he is in panic..things are not under his control now.
His deepest flaw is he is so pathological, he never panics. Same with Barry. Caligula incarnate. Rome burns, they eat grapes.
BS has Ray of Light as his morning alarm, by the way. This song IS about currentsea debasement by the weigh. You laugh? Four people write ALL the country western songs on rotation. FOUR. Madonna did not write this song by herself.....
Doe, a deer, a FEMALE deer.....LARR means weight. So does Lira, Pound, etc, etc. The bankster think they can control the elements, the elements which are in continous continuity. Mother earth's rivers, just as a moon cycle, comes and goes. They think they can control it with their philosopher's stone. Their doe-larr.
Quicker than a Re of Light SHE is flying.........
Zephyr in the sky at night I wonder
Do my tears of mourning sink beneath the SUN
She's got herself a universe gone quickly
For the call of thunder threatens everyone
Faster than the speeding LIGHT she's flying
Trying to remember where it all began
She's got herself a little piece of heaven
Waiting for the time when Earth shall be as one
Quicker than a ray of light
Then gone for
Someone else shall be there
Through the endless years
And I feel like I just got home
And I feel
Quicker than a ray of light
http://www.youtube.com/watch?v=x3ov9USxVxY
I fear our dear Mr. Hendrix has snapped.
I went mad awhile ago. But really, knowing that the entertainment industry is controlled by the Illuminati is easier than anything. They pay homage to themselves in weird and particular ways, and I find it VERY interesting. The brainwashing of the public has been instrumental for them, and really, nothing has been a greater success.
I wonder what Monday will bring us after Greece is not saved...
don't worry - Greece will be saved... again. actually, 4th time this month
:^)
Bernanke, "The Saint Patron of Morald Hazard" cross your fingers so your experiment works out fine...
[silence] .[/silence]
Like I have been saying, something has to give.
Lead sails and paper anchors.
I'm watching tonight's riots in Greece live. As the Dow drops like a stone. Interesting contrasts.
It's real life, out there, somewhere.
maybe you guys should look at a 10 year chart. The euro ist still overvalued.
+1. But the speed from EURUSD 1.50 to here is still impressive.
Silence is golden, golden...
EXIT THE BALLOONIST:
http://4.bp.blogspot.com/_wkgIzuqJM0w/S4i1X0-S4_I/AAAAAAAACqg/BnTJC9sAKy...
LOL!!!!!! Superb.
Im not covering and I'm not writing spy puts either.....
Hey Bennie Mae -- I'm here if you need a hug.
Dow -357
-425!
5% and gaining steam Love these Thursday's. 1-800-RUN!
Damn, 5 fell fast and we're down 6 as the bid evaporates
Damn... 9pct it's a rock going down Where are all the liquidity providers? Thank goodness I am long $US and UST...
-530. Au up 32, Ag down....
High yield idx -7% intraday... see HYG
yet inv, grade up.
to me that says people are worried about refinancing risk which means they are worried about banks again... trouble.
It sucks to see my PM miners go down. However, seeing reality make its way back into the market seems to be a small price to pay.
I just took a look at all my PM bullion in possesion. They seemed to be more valuable than ever right now. The silver stuff seems to have a touch of tarnish on it the last few days, though. The gold stuff has never seemed shinier.
I tried eating some. Alas, you can't.
Edit: apparently at about 2:40 eastern, you can't eat your iPad either.
if you lose your 'taste' for any of your holdings, you can always count on a few of us here to help you dispose of it... :^)
(hold steady - this correction will be followed by another counter correction. hold steady, captain)
I've been 80 percent cash now for a week. I almost pulled the trigger on some more miners. Just have to be patient.
I have been looking for rolls of peace dollars all week. Apparently, no one is willing to lower their prices on those yet.
and that, my friends, is where the real market lies. cheers
The only question is...when does gold get taken down?nonconfirm by silver is not a good sign unless you're lookingto pick them up cheaper
$1200.90
I hear you on the silver though.
i think silver is playing the commodity side right now (commodities are all getting it in the pants right now). gold seems to be taking the 'hard money' course.
i'd hate to be on a prop-desk right now. there must be some sweating goin' on.
look at that usd-yen curve - ouch.
I've told this to people a dozen times. I'll tell it again. When markets crash the first time the people playing have gold, lies, and bullshit. When it crashes the second time they don't have any more gold. Gold WILL NOT behave like it did the first crash. If you are counting on that to still be true and relevant you will have to learn something.
The YEN has absolutely exploded!!!!
I have had a small position in FXY for the longest time and when I looked at the ticker today, I did a double take. GaryNorth has recommended long the YEN for a while as a post China bubble pop currency. Lots of people have doubted him, but today I realized it may be true.
Interesting! What's the theory behind it? Japanese interest rate can only go up and they're nearing the end of how much the can Quantatively Ease?
Dow -490!! Harry's not buying hard enough, obviously
IMO - GS and JPM are selling the world to avoid the Audit the Fed amendment vote
Total market breakdown!
Tongue-tied Trichet and Bubble Ben want the euro to fall. It's all part of the master reflation/ inflation plan. KABOOM!!!!!!!!!!
Sell Baby Sell!
whoa...feels like I've gone back in time about 18 months
SHIT HITTING FAN, DUUUUUUUCK!
I can't take my eyes off it!!!
Dow -538. surreal.
How low does it go bro?
-847
-900? OMG
edit - dow hit 1059 off yesterday's close at bottom. ef-n-A
edit 2 - so far... there it goes again.
what the f was that limit order at 9900 - did someone save the world and lose their job?
fuck me
Now it's starting to feel like September 2008! All out panic!!!!!!!!!!
Who are you, and what have you done with Leo Kolivakis?
quote of the day
It finally begins
Now THATS a dead cat bounce for ya!
So what is the ETA for them freezing the market for power outages?
Done. Easy when you have unlimited $ to buy index calls.
At least we know the exact time Lloyd broke the pols will.
Greatest post ever!
Still an hour to go.
PROSHARES ULTRASHORT QQQ doens't work anymore! When from +16% to -60% and back...
Day High 20.43
Day Low 2.50
That happened to several of them...that was some weird *hit going on.
What the LIVING FARK just happened?!?!? Down almost 1K pts (in like 1/2 hour), VIX mad spike???
Who just imploded?
TRICHET WINS THIS YEAR'S DON QUIXOTE AWARD:
http://williambanzai7.blogspot.com/2010/05/jean-claude-trichet-receives-...
back up to only -400, someones buying..
Harry? that you?
Reuters.......
Harry Wanger, well known around the rouge Zero Hedge web site as a market genius, saved the world from oblivion today when he stepped in to provide liquidity when no one else would. At the height of the panic, Harry Wanger, a tall handsome man with flowing golden locks and a strange glow, waded into the NYSE pits taking all offers in an effort to stem the tide and part the red sea. Grizzled 40 year Wall Street veterans were seen caressing Harry's hand as they profusely thanked him for saving their asses.
Harry reportedly was calmly discussing the remarkably strong jobs report this morning as an indication of a strong rebound in corporate hiring and the need to buy AAPL before the 50% run up. Once the market had stabilized, Harry was no where to be found. Some say he simply floated away while others claim his bare feet barely touched the trading floor as he quietly slipped away. This reporter will keep you up to date as new information is received.
LOL, +1000 Very nice writing
The Wanker was BB's last hope...and we killed him....
He was just trying to take us to his ponzi heaven and we KILLED HIM. Waaahhhh. It's so sad!!!
St. Harry de Wanger! Praise be thy name. Gold Lord Above, we will concecrate this holy ground upon which said Wanger did provide his divine liquidity! We will close these pits, this trading floor, from this day forward to be a shrine.
/ the tears are falling like rain here over Harry, he was so abrasive but he had a heart of gold, and he redeemed us all this Thursday in May./
/Peace./
A Post for the Ages.
I can imagine his wife reading it to him now, as she tries to coax him out from under the bed, where's he's been lying, curled in a fetal position, for quite some time now.
I think you mean the "fecal position", don't you?
He's been sitting on the toilet since early this morning, providing "liquidity" and "positive growth" figures to the bull(xxxx) market, as it swirled around the bowl beneath him.
LOL, that was good.
RIP, shill Wanker
+++
What was that? Dow was off 1000 pts in matter of a min?
Holly cowwwww..
I can't wait to see TD's analysis of what happened between -1000 and then right back up to 500. Someone at Federal just hit the nuclear buy button.
+100
Plunge Protection Team on the move now.
What was that? Dow was off 1000 pts in matter of a min?
Holly cowwwww..
P&G dropped 25% in 10 seconds. Gotta be a computer error. Dow only down 400 now. No need to panic more than usual.
/facepalm
OK, if by "computer error" you mean "fundamental feature of the high-frequency trading systems that now dominate our market, and cannot be eliminated or fixed without a fundamental regulatory overhaul," then yes, I agree ... it was a "computer error."
I urge you to read Tyler's latest update immediately: http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-fr...
Five bucks says we close up 35 points for the day.
It's a great opportunity to Buy Buy Buy Just ask Harry and Bloomberg
Wow, that Dow Jones guy is quite the guy - How did they do that? Oh, yeah - "Managed Economy".
And as the machines gobble up all the bargains, we melt back up to -300.... No manipulation here at all, because we know a 900 point panic sell ALWAYS reverses itself in 7 minutes as headlines scroll new reasons to panic.....
Wow down 1k now down 350-450. Bouncing all around. Wow.
Excrement hit fan.
CNBC blaming, especially Cramer, that the machine's are breaking down. Software issue.
Perhaps, but for a reason, everyone was selling.
No wait.. down 527 points now.
[machine's are breaking down] If that's what he's saying then he's a liar; he cannot have that kind of inside knowledge, and it makes no sense under the sun. Broken machines do not trade.
Granted, there are probably some algos dumping assets like crazy. But that's called "an exit strategy" and I personally wouldn't write a algo that didn't have one.
Looks like someone threw a kill-switch at 1:45. Then yeah, machines were broken.
Cramer is fucked up.
cramer just opened chris matthews, let's play hardball.
repeating those very same lies, and matthews was buying into.
my sister is buying into it. i swear if my sis (thinks the stock market is coming back) believes cramer,
this whole country has gone to hell in a handbasket.
Ms. Handbasket, there's a nice spot over there with just a little less of the brimstone odor.
Anyone any ideas really about what just happened? wooowsers, was fascinating for ten minutes as everyone felt the end of the world had arrived..Come on, once again please
WHAT IT WAS:
-A technically-induced slump caused by the end of the April bubble. The toppiness in the last week of April was obvious, and it was obvious every day since May 4 that the bubble was ending.
-A reaction to the spiraling sovereign debt crisis in Europe.
-A reaction to the spiraling oil leak situation in the Gulf of Mexico.
-Bullish trading algorithms hitting their stops by 1:00, leaving bearish trading algos as the only ones left in the market. They collectively hit their profit targets at 2:46, covered their shorts, and shut themselves off, turning all the bullish trading algos back on simultaneously.
WHAT IT WAS NOT:
-Caused by a trader hitting the wrong button.
-Caused or resolved in any way by Jim Cramer.
CNBC was real quick to inform us that it was a fat finger trade.
"Someone hit the B as in billion instead of M as in million."
Right, and I'm a 55 year old virgin. Well, I am a virgin but that's beside the point. Blaming this mess on a fat finger trade is so ludicrous as to actually be funny. Yet the explanation was immediately gobbled down by some of my clients and even my next door neighbor.
Nothing to see here except a fat fingered trader, move along. I can't wait to see how many retail customer want to stick around the market over the next few weeks now that their accounts are within 20% of the high. See ya baby.
If nothing else we've seen just how fragile this "recovery" is. The market has a hair trigger.
The yen carry is getting nuked! Send in the body bags!
miles, i can't find howard beale. i have a funny idea for your zazzle ZH store.
if you could, carry a battery operated vibrator? (girl's best friend)
i think it would be a big seller, especially if it had a smart ass graphic or statement printed on it.
I was getting excited about the beginning of the end of the world. Now I'm embarrassingly excited about something else.
I am sure the option for a multi speed and water proof versions would need to be considered. The store and the energy behind it are all Howard's, I just instigate. So send Howard a message at the store and work with Howard on the idea. I am sure your ideas would be far more creative than my own previous attempts.
http://www.youtube.com/watch?v=ZkKyAzzAWgg
once (when it was working) scared the shit out of me, when it went off in my drawer. couldn't figure it out for a while†
doesn't need to be water proof, though. small, like the one the kid had.
tidy up