STUNNER: S&P REVISES US OUTLOOK TO NEGATIVE

Tyler Durden's picture

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aVian's picture

and the dollar is up...like WTF? 75.390

bankrupt JPM buy silver's picture

they bought it up triggered some stops, trading 101.

 

www.silvergoldsilver.blogspot.com

Fish Gone Bad's picture

That deer in the headlights photo is killer funny.

Ray1968's picture

That deer is me!!! All my S&P puts EXPIRED ON FRIDAY!!!!!!

muthafuckers

Mr Lennon Hendrix's picture

The President's Working Group on Financial Markets is being forced to liquidate their respected portfolios, as to stabilize the markets.  Sell that SLW Bernanke, sell those miners Geithner, sell that equity Shapiro!

http://www.archives.gov/federal-register/codification/executive-order/12...

redpill's picture

Look at the market maggots scramble today, suddenly worried that the festering corpse of the US economy that they've been feeding on might actually have something wrong with it.

Justifying QE3 is going to be way easier for Bernank than I thought.  Couple little theater events like these and you'll have bankers swearing the world will end without it.

TruthInSunshine's picture

If one former fiatski (USD, Euro, Yen, whatever) now equals .75 or .50 or .25, one former stock certificate for 95% of equities = .10 to .000001.

Companies have been diluting the stock pool (and corporate bond/debenture pool) like never before.

LULZ.

reinhardt's picture

about the size of it

u of t is benefiting a little

hey redpill, drop me an email

r

disabledvet's picture

Russian KGB say "never have coup on Monday" and this is no exception.  "Sorry about your trading losses but our traders are more important than yours."  Entry point for buyers (or short sellers apparently), nothing more as "downgrade had exact opposite effect of words."

TruthInSunshine's picture
Fisher just basically stated Bernanke perjured himself (which we all knew, anyways). LULZ. Epic.
Mae Kadoodie's picture

though it looks as if that deer is standing in the woods not in the middle of the road.  which begs the question, does a deer shit in the woods?

jus_lite_reading's picture

Classic!!!!

Women and children first... man the lifeboats. The RMS European Titanic is going down and the US Olympic with it! Time to bail out!

StychoKiller's picture

That picture would have lots moe "impact" if the deer were actually in the middle of a road!

TruthInSunshine's picture

30 Best (i.e. most idiotic) Quotes of The Bernank (the guy who is going to save the economy - good luck and God bless):

http://www.theburningplatform.com/?p=14138

  • THE BEST OF BEN:

    The following are 30 Ben Bernanke quotes that are so stupid that you won’t know whether to laugh or cry….

    #1 (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”

    #2 (On 60 Minutes in response to a question about what would have happened if the Federal Reserve had not “bailed out” the U.S. economy) “Unemployment would be much, much higher. It might be something like it was in the Depression. Twenty-five percent.”

    #3 (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

    #4 (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”

    #5 (When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) “The Federal Reserve will not monetize the debt.”

    #6 “One myth that’s out there is that what we’re doing is printing money. We’re not printing money.”

    #7 “The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”

    #8 (November 21, 2002) “The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.”

    #9 (March 28, 2007) “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

    #10 (July, 2005) “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

    #11 “Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.”

    #12 (February 15, 2007) “Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”

    #13 (October 31, 2007) “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

    #14 (On the possibility that the Fed might launch QE3) “Oh, it’s certainly possible. And again, it depends on the efficacy of the program. It depends on inflation. And finally it depends on how the economy looks.”

    #15 (November 15, 2005) “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

    #16 (January 18, 2008) “[The U.S. economy] has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself.”

    #17 “I wish I’d been omniscient and seen the crisis coming.”

    #18 (May 17, 2007) “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well.  Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”

    #19 “The GSEs are adequately capitalized. They are in no danger of failing.”

    #20 (Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) “They will make it through the storm.”

    #21 (September 23rd, 2008) “My interest is solely for the strength and recovery of the U.S. economy.”

    #22 “Economics has many substantive areas of knowledge where there is agreement but also contains areas of controversy. That’s inescapable.”

    #23 “I don’t think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.”

    #24 “We’ve been very, very clear that we will not allow inflation to rise above 2 percent.”

    #25 “…inflation is running at rates that are too low relative to the levels that the Committee judges to be most consistent with the Federal Reserve’s dual mandate in the longer run.”

    #26 (June 10, 2008) “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

    #27 “Not all information is beneficial.”

    #28 “The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.”

    #29 “Similarly, the mandate-consistent inflation rate–the inflation rate that best promotes our dual objectives in the long run–is not necessarily zero; indeed, Committee participants have generally judged that a modestly positive inflation rate over the longer run is most consistent with the dual mandate.”

    #30 (October 4, 2006) “If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.”

redpill's picture

They were all laughably ironic until #30, which just makes me want to punch him in the face.

undercover brother's picture

Excellent post.  Why anyone would trust anything the bernanke says is beyond me.  Either those in power either lack the mental capacity to confront him or they simply realize Ben's their fall guy for when the house of cards comes tumbling down.

The Real Fake Economy's picture

excellent top 30!! Ben is def the fall guy.  when TSHTF this guy's toast. 

Roger O. Thornhill's picture

I made a pared down list that is utterly egregious and also added the dates for some quotes that didn't have any. I also added #7 - this was a Q&A on 60 minutes from 2009 that was mocked by Jon Stewart - it really needs to be there to see that the Bernank just lies all the time.


21 Best (i.e. most idiotic) Quotes of The Bernank! (I trust everything he says - he has such a great track record!)

THE BEST OF BEN:

The following are 21 Ben Bernanke quotes that are so stupid that you won’t know whether to laugh or cry….


#1 (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”

#2 (November 15, 2005) “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

#3 (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

#4 (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”

#5 (When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt - June 3, 2009) “The Federal Reserve will not monetize the debt.”

#6 (December 4, 2010 - 60 minutes) “One myth that’s out there is that what we’re doing is printing money. We’re not printing money.”

#7 (March 15, 2009 - 60 minutes)

       Bernanke: To lend to a bank…it’s much more akin, although not exactly the same, as printing money than it is to borrowing.

       Q (60 minutes): You’ve been printing money?

       Bernanke: Well, effectively.

#8 (December 4, 2010 - 60 minutes) “The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”

#9 (November 21, 2002) “The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.”

#10 (March 28, 2007) “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

#11 (July, 2005) “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

#12 (February 15, 2007) “Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”

#13 (October 31, 2007) “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

#14 (On the possibility that the Fed might launch QE3) “Oh, it’s certainly possible. And again, it depends on the efficacy of the program. It depends on inflation. And finally it depends on how the economy looks.”

#15 (December 4, 2010) “I wish I’d been omniscient and seen the crisis coming.”

#16 (May 17, 2007) “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well.  Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”

#17 “The GSE's (i.e. Fannie/Freddie) are adequately capitalized. They are in no danger of failing.”

#18 (Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) “They will make it through the storm.”

#19 “I don’t think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.”

#20 (June 10, 2008) “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

#21 (October 4, 2006) “If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.”

hazenyc's picture

I'm pretty sure you had delayed quotes, when the news came out at 9:03am EST the DXY index sold off quite a bit

DarkMath's picture

The reason the Dollar is rising is the Finns are finished with the EU. Portugal bailout is in jeopardy and that is bad for the Euro, Dollar benefits on flight to quality.

tmosley's picture

Flight from frying pan into fire.

Popo's picture

Geithner is going to use this as ammo to convince uneducated Congressmen to raise the ceiling.  Even though it's the rising ceiling that prompted the downgrade.

 

trav7777's picture

the dollar is not quality.

At this point the Euro is.  They are actually going to impose austerity and make the PIIGS bitches pay back the core EU bankers the money they invented out of thin air plus interest.

The core nations are going to try to bust out the periphery...this trend will eventually fracture the EU

Boilermaker's picture

LOL...yea, the EUR is where it's at.

Sure.

fredquimby's picture

Glad you edited out that gratuitous abuse, it does not become you.

YOU may think the Euro is toast, but really, you have no idea, only your opinion.

http://fofoa.blogspot.com/2010/05/open-letter-to-emu-heads-of-state.html

 

 

redpill's picture

Why fuck with any of the big 3 at this point?  USD is obviously in a long painful death spiral, the Euro is going to be a rollercoaster as the fate of the EU hangs in the balance, and the Yen is going to be a mess as Japanese manufacturing is derailed and a quarter of their country and food supply is irradiated.

Large banks have no choice but to do a round robin with these currencies because they are the only ones that can withstand the daily flows that they need.  But for the rest of us, why get any where near them?  Fiat is still fiat, but you might as well pick one that hasn't completely gone to silly town.

A bank account in Singapore, in Singapore Dollars, is looking like a mighty fine hedge at this point.

bigkahuna's picture

Look out - the IRS seems to be catching onto the foreign bank deposits

 

I would like to hear from some people from Europe. This article is not saying anything that awakened people in the US do not already know. Do you in Europe buy any of the Dollar/Euro normalcy talk in this article? The article appears to be written to throw off people outside the US so that they might think it ok to invest in dollard or dollar denominated assets....?

redpill's picture

I was not suggesting the funds be hidden from the IRS.  Breaking tax law at this point is unnecessary and just puts a target on your back.  As these guys get increasingly desperate, the last thing you'll want is a target on your back.

My suggestion is to have such a bank account as a hedge and declare it to the IRS as you're supposed to.  It's not about hiding, it's about putting your money somewhere they can't easily get it in a currency they can't devalue.

centerline's picture

This next act in the theater of the absurd is to bake in some deflationary fear.  Gross is effectively long USD, correct?  S&P downgrade just puts a finger in the administration's eye to do something to get it's house in oder, which we all know is deflationary.  The blame being passed onto the politicians.  Of course, the taste of deflation is aimed at justifying the next round of QE.

Dr. Richard Head's picture

The one thing this, and many past, administrations don’t seem to grasp is that trying to fight off deflationary forces in discretionary is directly correlated to nondiscretionary inflationary force.  Fucking morons they are indeed.

Ray1968's picture

They can fix this problem with a couple of FBI raids on the S&P headquarters.

Nothing like a team of black-clad, MP-5 toting, jackboots kicking in your door to sway opinion on a credit rating.

Its what the mafia would do.

Ricky Bobby's picture

+1 S&P just impaired the US national secuiry, Homeland Security and Justice will have to investigate.

alpha60's picture

putin did it. and oh my, the fear, when your private jet door is broken in.

http://www.khodorkovsky-movie.com/

 

 

 

BrobamaReds's picture

S&P is not factoring in that Billionaires and Millionaires will pay more, don't they get it?  lol

Thomas's picture

Dollar is up because the US is "backed by a strong track record of prudent and credible monetary policy."

Blew a snot bubble when I read that clause.

mt paul's picture

securtize 

that snot bubble

slaughterer's picture

While the entire market is stunned by the S&P outlook negative, sinister things are happening in the corners it is not looking at.

Cindy_Dies_In_The_End's picture

Dear President O:

 

Frak you. We're voting for Trump.

Sorry about the whole negative outlook thingy.

 

Love,

 

S & P

Robot Traders Mom's picture

You should probably edit that. I think you accidentally said "we're voting for Trump."

Cindy_Dies_In_The_End's picture

Nope, wrote it on purpose for sarcastic effect, hoping folks would see the irony of electing a guy whose companies went bankrupt.

 

drink that coffee, people!

oogs66's picture

went bankrupt multiple times and is super rich, on tv all the time, bangs hot chicks, and probably could run for president!  maybe greece, ireland, and portugal could learn from him.  and he went into these things knowing he could go bankrupt and protected himself, yet we think out crap doesn't smell. 

 

 

Mr. Denny Kneel's picture

Your premise is incorrect. He went bankrupt in order to transfer the invested monies into his offshore accounts. Pretty easy, and legal way to rob your investors blind... Also, have you seen him bang those hot chicks? I wouldn't assume that the plumbing works.

Mr. Denny Kneel's picture

as  in "I am fired" or were you implying that the firing now is in my possession?

blunderdog's picture

When Trump says it, he's actually saying "your fired."

Not too smart, that fella.