Someone Leak Something?

Tyler Durden's picture

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trav7777's picture


Dr. Richard Head's picture

QE 3 is coming to town.  Recovery sustained bitchez.

egdeh orez's picture

OK. I don't doubt that QE3 is coming... and I don't doubt that these macro funds went mega long the S&P.

But, don't you think that's pretty stupid of them? Why don't they just go mega long gold and silver instead?  PM is a bigger beneficiary to QE3 than S&P.

arm50's picture

or maybe treasuries, smells like bs

rocker's picture

Can't they hedge that in a way to actually go short while making the crowd think they were long ?

French Frog's picture

could just be misinformation: advance warning that qe3 will NOT happen (at least not as soon as qe2 ends) so we need to make sure that some new suckers come in the market now so that we can all discreetly offload our stocks before the next+1 fomc meeting (known as the event horizon lol); as we all know, stocks are likely to tank once they are not pomo-supported so this would be the simplest way to be at least neutral (and most probably already short) by the time the event horizon is upon us

Mark McGoldrick's picture

If you're going to deliberately leak disinformation, you always want to find the biggest group of lemmings.  It's straight from the Glenn Beck Propaganda for Dummies

falak pema's picture

Q-daffy throwing in the towel? His 30 billion frozen being put to use? I smell a GS rat on a false flag exercise that will become the skull and cross bones when its time to cry "all men to starboard, grapple hooks out, take no prisoners".

Phat Stax's picture

Yes, there has been volume selling mid-day for a couple of weeks now.  Bookended by the early & late parts of the day.

I think Bernanke is more interested in self-preservation than losing what's left of his credibility.  QE3 only after & if the heat dies down.

Hook Line and Sphincter's picture

dis-information Frenchy, not mis-information

French Frog's picture

i stand corrected, apologise for this disgraceful use of the english language and hang my head in shame to boot

4xaddict's picture

so that's where PIMCO's money went?

BigJim's picture

Hey Tyler, can you please give us a hint why you take this more seriously than all other hundreds of such emails you must get every day?

Carl Spackler's picture

Excellent point, Big Jim.

Bravo !

Idiot Savant's picture

I'm betting ZH has a number of trusted sources.

TBT or not TBT's picture

I'm betting we're -all- about as wrong as I have been, but have cleverly hedged against us too.    Got lottery tickets?    Mega Millions is at 244million.   

On the other hand the math is simple on the face of it.   Our central government is in debt above its eyebrows.  Our central government knows, or at least senses, it can't get re-elected and still apply fiscal sanity.   It controls its central bank indirectly(on paper) and directly enough in reality.   It will print money beyond the end of the graph paper, then switch to log paper, if that will keep the sociopaths in power.

Michael's picture

$387 billion more QE2 extension to be announced(AKA QE3) April 10, wouldn't want to break that 1 trill magic number.

Front run the shit out of this buying Gold and Silver only.


gmrpeabody's picture

Great point!

That would add another layer of interest, wouldn't it?

Tidewater's picture

Right. How do the actions of a couple supposed "LARGE MACRO FUNDS" constitute "CONCERTED ACTION"? Why would "INFLOWS OF BLUE CHIP HEDGE FUNDS IN CONNECTICUT," even allowing that we "APPLIED 2.5 TIMES LEVERAGE," constitute proof of anything but trading?

Where's the connection to foreknowledge of monetary-policy changes, and who are the peripheral traders to whom it was "leaked," who then leaked it -- in all caps -- to Tylers Durdens?

Also: How can anything secondhand be considered a leak, absent ANY SUGGESTION OF A CONNECTION between the source and the "large macro funds."

Caps-lock makes it seem important but absent any context it's just blurb -- an empty basket of allegations. As empty as Operation Anonymous's video montages.

Sorry, but absent any such context there's nothing here. Just a breathless anonynobody with bad punctuation and a fertile imagination.

LowProfile's picture

Smells like...  Retail bait!  Hey everybody!  Go long, some REALLY BIG funds just went ALL IN, wheee!


Dr. Richard Head's picture

Stupid indeed, but then again insider information sure helps support stupid decisions in the short run.  PM would indeed, as QE history has shown, be a larger beneficiary of another round of QE.  However, when you have 300M americans as a back stop to equities, stupidity no longer matters.  The wealth effect (trickle dick down economics) must be visible to J6P as he can only add in nominal terms.

metastar's picture

The American people love being enslaved. Just keep them distracted with March Madness and other gladiatorial events.

TBT or not TBT's picture

Yep, that's flyover middle america, a bunch of sado-maso freaks obsessed with the very very short term, practically heroin addicts, coke whores, ready to die for that one last fix of QE.

nope-1004's picture

Why don't they just go mega long gold and silver instead?  PM is a bigger beneficiary to QE3 than S&P.

If you were running for President and your opponent was noble, rooted in honesty and integrity, while you weren't, would you vote for him instead of yourself?

TBTF Crankers buying PM's is a vote against their own system of defrauding the US taxpayer.  Won't happen, as logical as it is.


eddiebe's picture

Maybe part of being privvy to insider info includes a hands off or even a directive to short PM's?

Lets_Eat_Ben's picture

i would bet on it. I am betting on it.

Piranhanoia's picture

a guess, that reality won't allow them to obtain anything physical being a ponzi based upon the suffering and stability that torture provides their master, and they are dead without Queen Elizabeth 3, they chose (ordered) to join the propaganda or face insolvency sooner than later. These are worse actors than ones on reality shows.  But I'm a fish and I just dig tides.

NotApplicable's picture

Because, if you front-run the Fed the wrong way, your firm will no longer be "in the know," and will be targeted for extermination/asset theft.

Crossing the biggest criminal syndicate is not conducive to remaining a going concern when you play in their sandbox.

Buckaroo Banzai's picture

Don't be silly. The deal goes like this: we give you advance notice on QE3, and you put $$$ to work in politically-correct "assets" like the S&P.

Anyways, can you imagine someone trying to buy $60B worth of precious metals? The global markets would explode.
The financial equivalent of "crossing the streams".

Dr. Egon Spengler: There's something very important I forgot to tell you.
Dr. Peter Venkman: What?
Dr. Egon Spengler: Don't cross the streams.
Dr. Peter Venkman: Why?
Dr. Egon Spengler: It would be bad.
Dr. Peter Venkman: I'm fuzzy on the whole good/bad thing. What do you mean, "bad"?
Dr. Egon Spengler: Try to imagine all life as you know it stopping instantaneously and every molecule in your body exploding at the speed of light.
Dr Ray Stantz: Total protonic reversal.
Dr. Peter Venkman: Right. That's bad. Okay. All right. Important safety tip. Thanks, Egon.


Hdawg's picture



Surely they'll need another 'unforeseen world disaster' in order to cover their tracks, no?

TBT or not TBT's picture

Freudian interpretation would hold this is about the tabou of gay sex.   Duh.

The real finality is releasing the the yin while it's inserted deeply into the yang.   Not sure if that's the better metaphor for our monetary situation though:     Think firehoses, not meager human phallic apendages.

6 String's picture

I think almost everyone here is interperting this wrong. This is just a quick trade for juice before QE II ends--with any losses backstopped by Benny.

You bet. You see, the last thing the Fed wants right now is the markets unraveling. They have to juice this fucker as much as possible as they close down QE II June 30th.

Then, once the hiatus comes, all the PD's and Hedgies will be net short. The markets will get slammed.....

Commodities, AG, will be hit the hardest. Benny Bernak then screams from the roof-tops and the economy starts to uravel:


And, then, Congress starts to beg for mercy--Puh-lease monetize the debt already.

"Okay," Benny boy says. "But, mark my words, this is your doing Congress, not mine."

And whoila! The Fed deflects blame, the PD's load up on all the hard assets they can find just before QE III is unleashed....and the great transfer of wealth continues boys.

Nothing is linear. Trust me.

perelmanfan's picture

This one makes the most sense to me.

chumbawamba's picture

Because there's not enough physical supply.

I am Chumbawamba.

RockyRacoon's picture

How much would be enough?  Give me the answer in tonnes and price/per please.  I've heard many times that there is not enough gold but I've never seen anyone put forth the numbers to prove it.  

DoChenRollingBearing's picture

Plenty of gold!  Buy from me at $55,000 / oz (April 2 - 10 only, have to give me time to get back to America)!

Hook Line and Sphincter's picture

Yep, always enough Gold. That mangy nominal/notional price would swallow 20 viagras resulting in freegold fellatio. I have trouble believing any of the oligarchs are willing to strap on kneepads anytime soon though... 

markelshark's picture

Maybe its gold confiscation time? S&P to the moon indeed.

Rikki-Tikki-Tavi's picture

Completely agree - any additonal QE will benefit ANY commodity far more than equity. Looking at the tick data for the last two days the buying has occured after 9am UK time which is highly unusual as I believe the big HF tend to make their moves in the futures market BEFORE market open and NOT as a reaction to a market displaying early signs of selling off (like we have seen for the last two days).

Also as it seems highly unlikely QE3 will be announced before QE2 ending - why on earth would "smart money" add risk at this point when we all expect the markets to collapse shortly begging BEnron for more kool-aid? To me it looks like they are setting the scene to unwind their long positions in the face of mom's & pop's inflow for 1st day of month.

So I say buy PM's and WTI and stay way clear of equities - obviously talking my book...

Henry Chinaski's picture

Does it matter what you buy as long as it isn't US dollars?

Hdawg's picture

Stocks are deliverable...Gold and Silver are not.  You'll just get worthless USD back on settlement.

FoieGras's picture

Gold and Silver futures aren't liquid enough to apply $50 bln in 10 minutes. Equity futures are deep and liquid enough.

SpeakerFTD's picture

If that MIT billion price thing is reallly 93% correlated with CPI, isn't there going to be a gigantic CPI number coming out in April?  How is Bernanke going to square more printing with that number?

Or is the government just going to lie?

[Rhetorical question]

The They's picture

hyper-inflation anyone?

Cash_is_Trash's picture

Yes, please.

I'll have the slice with the smoked mayhem and relentless social disorder please.

Thanks Time Magazine's Man of the Year!