S&P Follows Up Its US Outlook Warning With A Comparable One For The GSEs And The FHLB System

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Wed, 04/20/2011 - 15:47 | 1189614 Cognitive Dissonance
Cognitive Dissonance's picture

Ouch. That's gonna leave a mark......not.

Just look at the S&P 500 today. No one can convince me they don't want the dollar flushed to save the wealth effect. At least for now.

Wed, 04/20/2011 - 15:51 | 1189629 alien-IQ
alien-IQ's picture

What? a 200 point gap up and then flat for 7 hours...suspicious? Nooooooooooo!!!! It's like...totally natural dude.

Wed, 04/20/2011 - 15:58 | 1189671 SheepDog-One
SheepDog-One's picture

Right, typical 180 open gap up where it hovers in a few dollar range all day. Nothing synthetic about any of this.

Wed, 04/20/2011 - 16:09 | 1189732 alien-IQ
alien-IQ's picture

and dare we even mention the volume on SPY? surely something this abysmal is justification for a nearly 200 point gain right?

This is all making me a little ill...

Wed, 04/20/2011 - 16:21 | 1189794 SheepDog-One
SheepDog-One's picture

Meanwhile stocks after hours are flying up 5%. Truely bizarro world, makes the dotcom bubble look completely sane.

Wed, 04/20/2011 - 16:21 | 1189788 A Man without Q...
A Man without Qualities's picture

I don't think it's that they want the Dollar flushed, I just think they're out of alternative ways to preserve the Ponzi.  The idea the Fed has been selling equity index puts is strongly supported by their clear abject fear of anything like a correction...

Wed, 04/20/2011 - 16:25 | 1189820 SheepDog-One
SheepDog-One's picture

We'll be seeing the DOW race up daily while the dollar plunges into 60's, effectively defaulted but whats that matter, stocks are up and THATS all that matters!

Wed, 04/20/2011 - 16:55 | 1189923 Cognitive Dissonance
Cognitive Dissonance's picture

You're talking semantics here. If the only way to goose the market is to flush the dollar then they want the dollar flushed. If there were another way, that would be what they want.

When you must or want to have something everything else is dictated by that want or need. Sure they want several options to select from. They don't have several. Doesn't seem to stop them, does it?

Wed, 04/20/2011 - 18:03 | 1190181 A Man without Q...
A Man without Qualities's picture

When Rome ran out of silver, it chose to increase the amount of lead in the coins rather than not pay their soldiers.  I am sure they knew the risk they ran but it delayed the point at which the army mutinied.  However eventually the barbarians decided they no longer were willing to be paid off in debased coinage, so marched on Rome to get the good stuff and the army was not willing to defend those people who had cheated on them for so long.

I suspect things will play out the same this time...

Wed, 04/20/2011 - 15:47 | 1189615 alien-IQ
alien-IQ's picture

I guess that should send the DOW well past 14,000 judging by the impact the last "warning" had. This will surely send the $DXY below the 74.26 support level.

I remain in awe of this ponzi...it's simply mind- boggling.

Wed, 04/20/2011 - 16:12 | 1189698 thedrickster
thedrickster's picture

"I remain in awe of this ponzi...it's simply mind- boggling."

I am suffering from debilitating cognitive dissonance. Must.....buy.....Es.

Wed, 04/20/2011 - 16:25 | 1189817 centerline
centerline's picture

back away from the terminal man.  just back away slowly.

Wed, 04/20/2011 - 16:29 | 1189827 SheepDog-One
SheepDog-One's picture

Just remember the ETrade baby, when YOU buy it is probably when it all plunges straight down in minutes. I actually believe in this market if 1 actual live retail stepped in and bought something, Wall St would go all Fukushima in seconds.

Wed, 04/20/2011 - 16:29 | 1189837 thedrickster
thedrickster's picture

"I actually believe in this market if 1 actual live retail stepped in and bought something, Wall St would go all Fukushima in seconds."

That is the funniest (in a gallows sort of way) fucking thing I have read in many days.


Wed, 04/20/2011 - 15:52 | 1189617 bob_dabolina
bob_dabolina's picture

Bro, no way, let's hit the back nine and shoot some hoops instead. We can talk this over at the Willow Smith concert at my crib. This is a simple mistake, you just underestimated the innovation of our bureaucracy.


Wed, 04/20/2011 - 15:47 | 1189618 plocequ1
plocequ1's picture

Too late. Retard mode in full progress.. Apple in 10 minutes.

Wed, 04/20/2011 - 16:03 | 1189677 SheepDog-One
SheepDog-One's picture

Timmay want to go to Hawaii! Yeaaaaayyy!

YouTube - Hawaii yaaaaaayyyyyy

Wed, 04/20/2011 - 18:35 | 1190289 andybev01
andybev01's picture



R.I.P., Greg The Bunny

Wed, 04/20/2011 - 15:49 | 1189632 slaughterer
slaughterer's picture

S&P avoided GSE topic in conference.  Now they turn on the blast faucet.  But wasn't this obvious?

Wed, 04/20/2011 - 17:53 | 1190059 Urban Redneck
Urban Redneck's picture

Wasn't the sub-prime meltdown obvious? (this is S&P we're talking about)

Wed, 04/20/2011 - 15:54 | 1189641 long juan silver
long juan silver's picture

Reat Bastids! Why cant they just leave us alone?

Wed, 04/20/2011 - 15:54 | 1189646 astartes09
astartes09's picture

BTFD til the end.

Wed, 04/20/2011 - 15:55 | 1189651 ml8ml8
ml8ml8's picture

Only makes sense that the guaranteed party gets downgraded after the guarantor is downgraded.

Wed, 04/20/2011 - 15:55 | 1189653 SWRichmond
SWRichmond's picture

Spending a lot of time munching and spectating lately.  Time for the giant economy size:




Wed, 04/20/2011 - 16:06 | 1189672 RobD
RobD's picture

You can do 300lbs of yellow popcorn for the price of two of those. Ends up being 9 5gal pails or one 55gal drum. But if you arn't a do it yourself kind of guy that would be the way to go.

Wed, 04/20/2011 - 15:57 | 1189660 Sudden Debt
Sudden Debt's picture

Fannie & Freddy... they should make a movie about those 2 companies.

Didn't it all start with those 2 fuckers?



comming to a theatre near you this summer!!


Wed, 04/20/2011 - 15:59 | 1189674 long juan silver
long juan silver's picture

Is AAPL out yet?

Wed, 04/20/2011 - 16:04 | 1189684 Misean
Misean's picture

Man, those bureaucracies are stuffed to the gills with high quality papaer, where's the love?

Wed, 04/20/2011 - 16:04 | 1189685 long juan silver
long juan silver's picture

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Wed, 04/20/2011 - 16:11 | 1189748 long juan silver
long juan silver's picture


Wed, 04/20/2011 - 16:05 | 1189686 alien-IQ
alien-IQ's picture

and just like that...the /ES hits a new HOD of 1330....amazing...simply...amazing...

Wed, 04/20/2011 - 16:25 | 1189806 SheepDog-One
SheepDog-One's picture

Look at the pandemonium over at Yahoo finance on some of these tech stocks right now, QCOM up 5% after hours, Apple up $5 after hours and hasnt reported yet....this is all like some insane carnival on bad acid.

Wed, 04/20/2011 - 16:46 | 1189889 alien-IQ
alien-IQ's picture

and let's not forget the sheer idiocy of the DOW now being up 100 point from where it was BEFORE the S/P warning.

This is fuckin insane man.

Wed, 04/20/2011 - 16:04 | 1189694 SheepDog-One
SheepDog-One's picture

And still, no one at all involved has been arrested, or even charged with anything. Ben just shifts printing presses into 6th gear and floors it.

Wed, 04/20/2011 - 16:09 | 1189715 Silver Bug
Silver Bug's picture

I can't believe they are defying their puppet masters like this. Things must be even worse than we think behind the scenes.



Wed, 04/20/2011 - 16:15 | 1189773 alien-IQ
alien-IQ's picture

it's just a ploy to confuse the pleabs. STFU and BTFD.

Wed, 04/20/2011 - 16:15 | 1189722 Mercury
Mercury's picture

It seems ridiculous to think that the USA (or it's direct entities or even arm's-length agencies) would ever technically default since they can (and are obviously cool with) simply printing more money (or some such jazz that amounts to the same thing).  Those principal and coupon payments may be in near-worthless $US but that still doesn't a default make.

That said, why have countries like Russia defaulted if they could have just printed more of their own currency too?   Do they simply reach a point where they'd rather stiff debt holders than devalue their currency?

Wed, 04/20/2011 - 16:13 | 1189759 alien-IQ
alien-IQ's picture

let's pretend that you are a landlord. I rent a place from you for $1000 per month. At the end of the month I deliver to you 1000 pounds of shit...technically...did I default?

Wed, 04/20/2011 - 16:18 | 1189781 Argonaught
Argonaught's picture

This works for devaluing existing debt.  But do you think you can sell new debt while doing this to existing holders?  It turns out, in reality, yes...until you can't.  Then you eat the shitburger and default.  

Wed, 04/20/2011 - 16:29 | 1189824 bingaling
bingaling's picture

It is argued that the FED is the only buyer of debt now . Read Whipsaw Wednesday by ilene. Look at the chart after the video showing the price of gold in Marks - then look at the price a year later etc. Scary shit .

Wed, 04/20/2011 - 16:10 | 1189738 Hedgetard55
Hedgetard55's picture

AAA toilet paper, a unique concept.

Wed, 04/20/2011 - 16:18 | 1189777 the not so migh...
the not so mighty maximiza's picture

S&P will soon be classified as a terrorist organization.

Wed, 04/20/2011 - 16:44 | 1189872 thedrickster
thedrickster's picture

Will FEMA camps have Bloomberg?

Wed, 04/20/2011 - 16:31 | 1189841 digalert
digalert's picture

Shhh, my government says we don't talk about fanny or freddy.

Wed, 04/20/2011 - 16:56 | 1189922 SwingForce
SwingForce's picture

The GSEs need attention, they have been buying rotten mortgages and saying they are "performing". I stopped paying Suntrust in March 2008 and on Dec 30, 2008 they sold my mortgage to FNMA. This is while in the possession of $4.85 BILLION from TARP. Why use Tarp funds when you can sweep everything under the rug to a GSE?  They can lie even better than a publicly traded company. The American Taxpayer is being fucked so many ways that he doesn't even know about yet, but the real question is who will repay ALL THIS DEBT?

Wed, 04/20/2011 - 16:59 | 1189938 SwingForce
SwingForce's picture

Tyler, you are often accused in MSM as being overly sceptical and sarcastic. I say not enough so, often you need to revise your opinion further outboard. You are Right On! Keep it up!

Wed, 04/20/2011 - 17:55 | 1190150 Rainman
Rainman's picture

Skepticism is a blessing from nature. Sarcasm requires true talent and practice, practice...

Wed, 04/20/2011 - 17:17 | 1190009 sudzee
sudzee's picture

Is this System Reset Weekend? Dollar about to go off a cliff, gold and silver relentless increases, us housing still headed lower, inflation smacking everyone worldwide who makes less than goldmanites, giddy stockmarket not able to get above inflation adjusted high of a few years back, 4 day weekend , LMBA closed monday, pm roll tuesday, china no longer willing to finance the budget deficit. The shit just goes on and on.

Four days should be enough to reset everything. I'm really interested in seeing where everything digital or paper finishes tomorrow. 


Wed, 04/20/2011 - 17:42 | 1190087 thedrickster
thedrickster's picture

Granted I have certain proclivities toward apocalypse but I can't help wonder the same.

Wed, 04/20/2011 - 18:38 | 1190306 andybev01
andybev01's picture

"and on the third day..."

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