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Tepper Unwinds The "Tepper Effect"... And Then Some
It is somewhat ironic that the only thing that can undo the Tepper "Balls to the Wall" effect is.... Tepper.
Below is the +17 point boost from September 24, 2010, the time the Appaloosa manager made his first TV appearance prophesying the non-binary outcome of QE2.
And here is what happens when Tepper says the market will need to plunge (where have we heard that before) before QE3 is activated: -20 (so far)
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Bernake- "all acording to plan" deflation bithcez
2008, during the meltdown...and scene....
Paulson: Look, Lloyd & Jamie, I'll scare the ever living shit out the morons in Congress, and get a blank check for you guys to load up on what will be a big pump cometh, but this is going to be a 2 to 3 year deal, so when you bank those easy profits, make sure you store the cheddar somewhere very safe. You will get a clear heads up.
Jamie D: What about this toxic shit sitting on our balance sheets?
Paulson: I told you we'd take care of that. That's free money without any strings coming your way. We're going to have to kill off Lehman to get Congress afraid enough to pass TARP, though. We will take care of it.
Geithner: Right, we just need to maintain the illusion that when the fiscal and monetary stimulus dries up, we can go get Congress to do it all over again, get Main Street to think the ground rules have been set, and that the next time, they'll be able to share in the easy money pump profits by buying in.
Paulson: Yes, the economy will have deteriorated substantially by then, so Joe Q will be even more desperate to buy some into some momo.
Bernanke: I think everyone knows what to do, now. This will be the best period to make an absolute killing on a completely taxpayer funded and risk free moonshot, but it will be transitory, so you've got 2...maybe 3 years max to bank.
Paulson: But feel free to short the shit out of it, obviously, as it tilts of the side of the cliff. That'll be some easy money, too, but that won't be us, that will be gravity, capiche?
just one minor correction on the Geithner dialogue:
ummmm.....ummmmm....i like to eat the red play-do.....ummmmm
Tepper = the "new" Jamie Dimon / Bill Gross / Lloyd Blankfuck?
His pimp hand is strong
Dese aint da ho's you lookin' fo'...
Yeah, *except* that these 4 have nothing, literally NOTHING in common (save Tepper and Blankefien who worked for GS, Tepper runnign HY desk, Blankfein commodities [i think)]. Except that, you're completey right.
His balls now back in his pants?
Looks like balls have been nailed to the wall now.
but its ok, God said they could do whatever they wanted and we should just go along. /sarc off.
Junked for being off topic.
Tepper claims that if the spooz drops 20% or so, then maybe QE3 will be back on the table as an option.
I'm just speaking to what he told one of the bobble head financial 'networks' this am, and I'm not claiming he's correct or incorrect.
I would say that the big unknown is whether a 20% correction is enough to get Bernankincide back in the game with the box he is feeling on all sides, whether 20% is the floor (or even close to it) given the margin out there and economic fundamentals once the fugly stick falls, and finally, whether QE3 -- in any size or batch -- would be impotent; impotent as an 85 year old man in a deli complaining loudly that his soup is too cold.
Hey, maybe the % of Americans with 401(k)s "borrowing" against them will rise from 30% to 50% or 75% soon.
an impotent 85 year old man would do alright if he knew a lady with parkinsons!
I would say that the big known is whether a 20% correction is enough to get baby boomers out of the game.
++
Gee, wonder what Monday will look like??? QE3 inducing crash or Miracle Monday??? Both seem equally likely?
monday is a century away...we are dealing in miliseconds now, where humans are not smart enough to trade and computers take over....
glad LiesMan came to the rescue. phew...that was a close call...
Maybe NATO US can double dip in the Qadaffi funds which are now apparently being tapped for war funding...
http://www.nationalpost.com/news/Anti+Gaddafi+countries+pledge+millions+rebels/4733394/story.html
burn the tape
at todays close ..?
wtf just happened? ES skyed 10 pts in 30 seconds
looks like a shorting opportunity handed on a silver platter...unless there is some news behind that move...which at this point I do not see.
but yeah..wow...where the fuck did that come from?
Bank reserve ratios lowered...or something
that can't possibly be true....please tell me you're just fuckin with my head.
Think so. Think the Fed just lowered them, or ignored some scheduled increase. Listening to a web audio feed, but think they said 2.25%. GS apparently went nuts.
yeah I saw that GS move.
It seems somewhat insane if not borderline suicidal to lower bank reserve requirements at this point...
I don't see this pop holding for long.
borderline suicidal about sums it up.
http://blogs.wsj.com/marketbeat/2011/06/10/banks-stock-market-rescued-so...
If it is true, then it is an opportunity to relaod shorts. Since excess bank reserves are at record highs, a reduction in required reserves will have NO effect.
http://research.stlouisfed.org/fred2/series/EXCRESNS
I'll second that. And it probably means they've detected lots more small/medium sized banks that are about to deplete FDIC.
Fed put out a press release via Liesman re SIFI buffers being 50bps ahead of expectation but below the "worst case." Apparently the WaPo puff piece didnt inspire confidence..little wonder with lines like "Geithner recounted for colleagues what his teenage daughter told him: If you were in Iraq, people would at least understand you were trying to help the country."
http://www.washingtonpost.com/business/economy/geithner-finds-his-footing/2011/05/24/AGY0CSLH_print.html
goldfarb apparently finds the episcopalian tg appealing.
I was going to sell my ultrashorts before the we got too deep into the afternoon, to avoid the last minute bump from daytraders covering their shorts. I saw that instantanous climb so I canceled my sell order. This market is broken and there is more downside.
Gold/silver exchange rate still holding up well.
Looks like huge bids coming into XLF.
I'm closing out all shorts right now.
you mean the shorts you never held? go long(er), dear robo!
ooopppsss....
Monster block trades, millions of shares per minute, he's right on this one.
You don't have any shorts or longs either. You just have charts of old news. Oldest trick in the book and not foolin anyone with a 25 IQ.
Shorts on what...placed when?
Poor Robo...can't even keep up with its own lies anymore...
No one can top the Tepper.
Spikes such as the one we just saw are to be expected given that SPX was off over 7% off its recent highs. I was driving before the spike but if I got in before I would have bought some long 2X at the lows. Markets dont go down in a straight line just watch any bear market the relief rallys are constant and dangerous to shorts. For example look how many times the SPX spiked as it came down from the all time high in Sept of 2007. There were numerous bear market rallys. Unless we get some terrible jobs data over the coming months dont expect too severe of a down draft.
TSX dropped as money went back to us exchanges
RoboMomo gonna get raped!