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Treasury Butterfly Collapses In Replay Of Market Plunge Action
While nobody gives a rat ass what assorted Stuxnet-infected vacuum tubes are doing with equities any more, the real drama is in the 2s10s30s, where the butterfly has just plunged by over 10% in this morning alone! This is a massive move, driven by the collapse in the 10 year, which at last check was trading at 2.37%, as the only trade is and continues to be the frontrunning of Benny and the Inkjets. The last time we had a move as dramatic and rapid as this was in the November 2008 equity plunge, and the March 2009 decade low. In other words, the bond market is now trading only based on what Pimco says the Fed will do, while stocks are pricing in mild to quite mild hyperinflation, as some administration idiot has floated the idea of $7 trillion in QE. To quote W, make no mistake - $7 trillion in QE would be the proverbial Shazam moment, where D.C. can officially change its name to Harare.
And here is what a completely broken market looks like (again). All correlations are busted now that even DE Shaw and the stat arb quants have ceased trading.
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b-b-benny and the (ink)jets! Tyler, sometimes you make my day. Ok, you typically make my day.
That broke me up too. Funny as hell.
I'm stealing that one...
It's already been stolen........
Good, I'm all in to reducing the guilt factor...
Benny and the Inkjets hit the big time 2 years ago on ZH. It's almost nostalgic now.
Not quite. I know ZH feels that old, but it's not two years old yet. I may be wrong, but I keep this link handy as a reference to "close to the beginning of ZH".
Please correct me if I'm wrong.
http://zerohedge.blogspot.com/2009_01_04_archive.html
CD,
All I can say is "Wow".
I can't even remember, now, HOW I first heard of ZeroHedge, all I know is (Tyler, I hope you read this!) it's become part of my daily routine and many of the posters and contributors almost virtual friends (Heavens above, I never thought I'd say that! Facebook etc are NOT high on my list of priorities!) - CD, George Washington, Gonzalo Lira, AND Leo, et al!
By the way, Gonzalo had a great piece with Max Keiser the other day;
http://maxkeiser.com/watch/the-keiser-report/keiser-report-83-05-october...
DavidC
lol Tyler, im adopting this one as well...
When you use it, don't forget the royalty cup, also known as donations. :>)
http://www.zerohedge.com/content/donate-zero-hedge
Good Point.
Equities are being rude...this is a pomo day for gosh sakes. Am I sensing a situation where nobody wants to be the last bag holder until the next pomo ?
Is the market snoozing?
The soothing sense of security, after a recent dose.......
Its waiting for the right mix of silences.
Just resting with a Big Mac to keep those Service ISM numbers floating pleasantly in their heads.
Looks like a sonar reading of the mariana trench.
I've seen Maryanne's trench, and it looks a lot nicer than that.
She had the same thing to say about you.
CD junked by ITG. Oh the humanity!
Even Sammy had his moments.
In a magazine. 8th grade humor at best.
"Benny and the Inkjets" - nice gallows humour.
Anyway, will their first CD be FDIC insured?
mild to quite mild hyperinflation
LOL....
Captain Marvel! I mean Ben Bernanke!
http://www.coverbrowser.com/image/shazam/13-1.jpg
100 pages for only 60 cents!
Another Golden Nugget from Tyler and Zero Hedge. This is why I get up in the morning and, after rubbing the sleepers out of my eyes, I immediately pull up ZH to see what I missed over night.
ZH is even screwing with my sex life. Oh wait, ZH is my sex life since the wife cut me off for spending too much time on ZH. :>)
While you may make jest at that occurance, I must say it is the truth of the day in my household. In fact, I think I have heard the proverbial "WTF", what are you on that ZH thing again. I am sure some type of payoff will rectify her cries of infidelity. Thankfully, I don't think I can be divorced over such an addiction. :)
Classic .. Thank goodness for ZH
http://www.youtube.com/watch?v=l9jX1KAKp78
Too bad this is on the IPod playlist at Chez Shalom
Not the same Alice, but you get the idea.
Acid Bubble !!!!
http://www.youtube.com/watch?v=GpmHg00Z_9k
Intend obsolescence
Built into the system
Hey, thanks for the link! Don't listen to "Modern/Alternative" rock any more since it so long ago ceased to be either modern or alternative, so I hadn't heard this.
They changed their groove . . . I like it, change is good. Reminds me of the kinda change Smashing Pumpkins showed in Adore (my fav).
Current sound is more like an evolution from Jerry Cantrell's solo effort "Degredation Trip" which I highly recommend. I don't know what "Modern/Alternative" rock is. Maybe I should get an iPod so I can learn how to categorize music better?
In other news .. some folks take five .. Cool Breeze which coat closet are yaz in now?
http://www.youtube.com/watch?v=BwNrmYRiX_o
Miles, thanks for the links to both vids. Never will be anyone like Layne or Brubeck again (Dave still going at age 91!).
Sad but good that trolls are junking this little side trip concening music instead of politicts & finance. Some of the junk is a personal vendetta but I have allot of people that hate my ass. And I am glad they do.
Pleasure. Never shave too closely, some folks might get confused. Which is exactly what is happening in the 2/10/30 space.
http://www.youtube.com/watch?v=0RqJEcgoktY
http://www.youtube.com/watch?v=dYfDIs4LdSA
A walk down memory lane. Where is my Thorazine I mean Geritol.
Again has just a massive hook (among so very many by Cantrell). One of my favorite AIC tunes.
I do like Alice!!
No finger prussick (AKA a Chinese handcuff) on this future anchor yet? wow
I'm sure those panties got tossed.. lemmie check with the roadies... - Layne
dup
Now there's a picture I am going to tape to my monitor, you can keep the beard.
Thanks for the junk ITG.
In the past week or so I have really come to understand what a juvenile little troll with nothing useful to contribute you are.
I have no idea why you keep addressing me, I don't even read your ridiculous comments much less waste time junking you. You and Cognitive Incontinence post tens of comments per thread, with nothing to say. I just scroll past them, FYI.
Now you are a grown up? But grown ups lie don't they? Some even move than juveniles.
Good Lord, you really are a child, aren't you?
Your post is a perfect example of the un(der)developed prefrontal cortex in action, taking someone's name or ID and twisting it in an effort to hurt or demean. Na na na na. I can't hear you.
Ouch, that's gonna leave a scar.
CD, what was the middle part?
Your posts are generally of the 'Tyler is so cool/funny' asskissing variety. Feel free to write a long-winded treatise (or five) as a reply. Stay the course.
Doubt it. I may have addressed Tyler directly twice in the past year and thanked him for posts I liked maybe 4 or 5 times in that time frame. But keep making shit up if that works for you.
This is the same issue I have objected to concerning you in the past. You make up this shit and believe it to be true without any factual basis what so ever and you post it.
Cool is not an idea or concept that I understand or relate to.
Sorry ITG, you were not addressing me. Good idea.
For someone who just passes by my posts how would you know what I say in them?
See, if you're going to lie you need to be consistent.
For trolls like ITG it is ok to lie when you are anonymous behind a keyboard right? This fucking guy is like a cartoon.
http://www.howtonotsuck.com/viewarticle.php?id=29
Thanks for the refresher course. I for one certainly need it.
I had the same problem. I got her to start reading it as well. She bookmarked it, now she says "did you see X article on ZH." "No, but I'll read it Dear."
Now I get ZH, peace, and p***y. Like a sore dick, you can't beat it.
The word/concept we're all looking for is "death-throws" ... not of the butterfly, but of the economy and sanity.
I could NOT believe that guy said $7trill on CNBC. I mean ... c'mon!
ps: Pancake? Yumyum, but gonna get FLATTER!
The word/concept we're all looking for is "death-throws" ... not of the butterfly, but of the economy and sanity.
I could NOT believe that guy said $7trill on CNBC. I mean ... c'mon!
ps: Pancake? Yumyum, but gonna get FLATTER!
Shazam Moment followed by a big Ka-boom
Your killing me Tyler! Benny & the Inkjets, now touring a printing press near your.
Like this?
http://video.adultswim.com/robot-chicken/shazam.html
That will do nicely, thank you T
So looking at 2003 through 2005, I see we are about half way there with similar slope. SPX 1600 must be right around the corner.
-profd
Your comment makes no sense.
His comment does make sense. Looking at the chart while it was falling throughout the early part of the decade, it led up to SPX 1500+. I believe he's being sarcastic.
difficult to make the comparison as the correlations have changed since 2008
http://www.zerohedge.com/article/guest-post-feds-distortion-butterfly
How anyone can compare anything today with anything in history is beyond me. All bets off, paradigm has radically shifted, bitchez.
In many senses yes, but the basics are just the same old. The risk is high as accidents waiting to happen are at an all time high.
Unprecedented action in the markets portend new things but over time things unfold similarly.
There is also this: if you believe things are so radically different then perhaps fiat money is not doomed (all money is fiat, but that is for another day), and the outcome of all this will be just ducky.
Appreciate the comment, but yes and no. Shifting paradigms are the norm now, i.e. the only thing that is constant is change.
-profd
Benny and the inkjets. Best razz ever!
You have to wonder what the cash calls at Illinois Teachers Pension Fund are like today.
+1
HAHAHAHAHAAAAAAAA!
Yeah, selling shorts against the Fed -- with Teacher's Pensions -- Their brains are HUGE! HAHAHAAHAAAA!
The very definition of "Sophisticated Investor". heh
lol shazam moment. Man i cant wait to hear the words 7trln in QE, if i can stop myself puking from laughing, i might just place a few trades.
p.s speaking of puking and laughing, Wall Street 2 is now on pirate bay for anyone who cant stand cinemas.
Stick with the original Wall Street movie. The sequel is wanting.
I suppose we need to give Ben and the Boys a break.
I mean when Nancy and Barney ask for a couple of trillion.
Who can say no?
+Gazillion = +1 Leveraged xGazillion, the way of the world. Best rant yet!!!
Had to look up Harare
http://en.wikipedia.org/wiki/Harare
From the article:
______________________________________
Residents are exposed to a variety of sources for information, though almost all of their sources are controlled by the government.
essential services such as rubbish collection and street repairs have rapidly worsened, and are now virtually non-existent.
a "sunshine city-turned-sewage farm".
In 2009, Harare was voted to be the toughest city to live in according to the Economist Intelligence Unit's liveability poll.
This caused a sharp reaction in the international community because it took place without prior warning and no advance plans were made to provide alternative housing.
...to reduce the likelihood of mass action against the government by driving people out of the cities. The government claimed it was necessitated by a rise of criminality and disease.
______________________________________
This is what $7 trillion gets us? What a bargain.
That sounds a bit like Athens, Greece.
dupe
The current yield on 5 yr. TIPS has been negative for the past week. Mild inflation????
Prestidigiflation. Don't stand behind the magician.
"$7 trillion in QE would be the proverbial Shazam moment, where D.C. can officially change its name to Harare." Good one Tyler.
I guess I should say be careful what you wish for but really, at this point there is no wishing involved.
Thanks for the junk whoever you are (ITG). I am working on my merit badges and they really help.
Where's robo cop with some charts. I's like to see CRM, VMW, NTAP, EQIX, FFIV. I wonder if they're going up today because I have no other source for charts.
.
Ah who cares, just go rent a movie - NFLX -$7.68
Word is that the Treasury will soon replace all existing debt instruments with a meta-instrument called the North American Promise to Pay You (NAPPY). Like other types of nappies these will end up being backed by loads of shit, will give you a shit yield and do shit-all for your portfolio. Later they will morph into a toxic asset called a CSO (collateralised shit obligation) and those mega-banks caught holding this crap will receive some form of tax payer bailout in the future.
The derivative of NAPPY will be CRAPPY.
CRAPPY = Can't Really Afford Promisin' Payin' Ya
Crappies (CRP) will be issued en masse to avoid defaults on the NAPPY.
1 CRAPPY = 10,000,000,000 NAPPY
And it will all be merged in an AAA tranche and shipped to China. Free shipping.
Crappies boom, nappies bust. Namaste!
AIG will be selling (for sophisticated investors only) a washington insured promisory exchange (WIPE) instrument in the event the NAPPYS cant hold their marked value.
All of your WIPES can be transferred to Transparent Oligarchy Instruments Leveraged Exchange Trade Promissory And Payable Extreme Rate Swaps, or TOILET PAPERS.
We could do this for days...
Bravo to all of the above! LMFAO
The government could help secure investor confidence in these new instruments via a program of Federally Assisted Repurchase Transactions. Would sure get my vote.
thanks to all you creative folk above, genuine laughter invoked - on a day when my sense of humour was runnin' on empty. . .
Thought my sense of humor was gonna be crappy today too, but strangely, I've been in a really good mood all day. I think it's the "stress of waiting for something to happen is worse than the something happening".
bullseye
browneye
Collapse to a sub 150 2/10 hahahaha
Meanwhile, Cramer's best picks on the planet are starting to see the writing on the wall. Check out proverbial analyst fave CRM - nice 10% plunge today.
Interested in your thoughts on CTXS, kind of a nonsensical drop, no?
They plan to drive mortgage rates below 3% but it won't matter because no-one intends to make the payments anyway.
lololololol
At least most of that paper will have been rewritten, preferably into FRE/FNM 15 yr and the 1-2T realized recycled by then to help keep the party going another few hours. That is IF the RRE/CRE title issues can be resolved.
Nice call Buzz on the sub 2.5 10.
Really why not try to get a higher interest rate, that way you don't make the payments, but write it off on your taxes anyway!
i know its like refi will fix a market that needs a 20% haircut on face value... lol
Oh dear, I'm afraid I am that idiot, and I learned about it 3 months ago and, I think, reported it here (or was it another blog?). Yes, it's $7 trillion with, I'm afraid, another $5 trillion in the pipeline. Well what can I say? That's the road we're on.
I find the market action a nice predictor for a coming 20-40%+ correction in equities. Otherwise, why would any fool put money into Treasuries yielding less than the annualized rate of inflation? Something wicked this way comes, again......
I guess Obama will be right that he'll be able to cut the US deficit by 30% by 2012!!!
WAY TO GO OBAMA!! HE MADE IT EVEN LOOK LIKE HE DIDN'T YET KNOW THAT HE WOULD DO THIS 12 MONTHS AGO!!!
YES HE CAN BITCHEZ!!
“The IMF came out and warned about the dangers of currency wars starting that can do long term damage and hinder any recovery – no kidding?
“And yet we continue to make money from nothing and hand it over to the banks buying up their worthless debt ‘assets.’ They then take that money and run up equities, commodities, and bonds, taking short term profits for themsleves and leaving the debts behind for everybody else. Not only are they leaving the debts behind, but they are destroying the value of the dollar, thus robbing the people every time they make a purchase with dollars they are forced to earn, unlike the banksters who have created their own laws.” – Nate today on Nathan’s Economic Edge.
http://economicedge.blogspot.com/
Sell TAP now!
I'm going on the wagon.....
Hey kids, plug into the faithless
Maybe they're blinded
But Bennie makes them ageless
We shall survive, let us take ourselves along
Where we fight our parents out in the streets
To find whos right and who's wrong
Turd talks his talk and walks his walk.
I followed through on my short-term trade this morning. Sold all my 1300-1400 and 1350-1450 gold spreads (at Dec10 1349) and bought 1130 ES puts (at DecES 1155. Planning (hoping) to reverse these trades on Friday morning, around 10:00 edt. We'll see. So far, so good.
hey, what're ES puts? (I get the put-part)
E-mini S&P 500
Wow watch out placing those E-mini trades, you might cause a 1,000 point crash in the DOW!
I just knew Turd was guilty of something.
Shit. It didn't work. I'll go buy another put and see if I can crash it before the close.
thank you kind sir. ;)))
Crash, bitchez!
Not allowed. Just this measly 12% retrace from yesterday.
POMO still out there to deploy.
Then what?
More POMO.
THEN what?
Speaking of plunging over 10% today, the momo names are crashing... lots of them more than -10%, as I noticed gold starting to show signs of weakness earlier today. This morning was the first time I've felt like fear is finally starting to creep (and I don't mean the run to gold fear, more like liquidate everything that's gone vertical fear).
They just moved on to FCX.
Some observers have argued that balance sheet changes, even if they influence longer-term interest rates, will not affect the economy because the transmission mechanism is broken. This point is overstated in my view. It is true that certain aspects of the transmission mechanism are clogged because of the credit constraints facing some households and businesses, and it is true that monetary policy cannot directly target those parties that are the most constrained. Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be. It seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions.
-- Executive Vice President Federal Reserve Bank of New York Brian Sack
Mine is all your money!
I heard that Bennie's gonna kill a fatted calf tonight so you better stick around...Bennie's got electric boots and a mohair suit, you know I read it in a magazine.
Tyler, good article. Vacuum tubes haven't been in computers in over 40 years though. It is silicon based!
Um, you do realize........
Tyler was just......
Maybe you........
Never mind, carry on.
Nice try...
Vacuum tubes haven't been in computers in over 40 years though. It is silicon based!
Well, for some. For others the path beyond silicone is being blazed.
Carbene......
$7T . . . is this where the Fed goes down on the MBS market--all the way down--and swallows??
Just lay back and enjoy yourselves, Bankster Boyz.
<The Citibank or Citigroup guy with the red tie said something about hyperinflation being either prevalent, persistent or mild, and Asia was also involved>
http://www.theonion.com/articles/something-about-tax-cuts-or-earnings-or-money-or-s%2C18169/
Reminded me of this.
Combined US market cap now up $500B from Jul peak and $1.4T from the August trough. hmmmm those numbers sound familiar
FAZ is green? Oh, the humanity!
Yes and very cheap. Hmmm $12.58 now. Was over $2,018 in November 2008. We just need one bank to have something go really wrong... (JPM, Ally, BofA, anyone?)
At least Zimbabwe has great music....
http://www.youtube.com/watch?v=r5CoGUsR0aQ
It USED to have good music starting with:
http://www.youtube.com/watch?v=076idz3U5Ok&feature=related
This sets off a damaging dynamic, described first by my former colleague Ted Truman, as "competitive non appreciation." - Tim Geithner
enough said
So, this is bad, right?
Within Temptation -- Our Solemn Hour
http://www.youtube.com/watch?v=FMSS3pW_GLw&feature=related
Too soon?
"mild to quite mild hyperinflation"
awesome
What do they say about a drowning person?
3 times up, then out?
So ends third peek above mid Bollinger.
(The one at open was just the fall overboard.)
Wow, another AAPL VZ deal reported on WSJ headline and AAPL spiked taking the entire market with it. Then promptly sold off, taking the entire market with it. Very funny indeed.
Dude..............
I don't think I've ever seen someone lift something from an article and then post it in the comment section of the very same article.
WB7, I suspect you'd make a good pickpocket. :>)
BTW what software do you use to make your magic?
Blankfein just junked me :-)
Shit he got Lucas to do it too
Too bad Elton's glasses would cover Bennie and the Jets.
Nice 1 Will.
Who would junk this? A disgruntled Elton John fan? A Federal Reserve board governor? Seriously, WTF?
You are a gallows-humor lightworker Senior William de guapo de magnifico Banzai.
See what ya get for not partaking with those that suffer from temporary loss of coordination... even when you are temporarially light?
http://www.youtube.com/watch?v=DWEKcOA9G5Q
Awesome!
Didn't the term "yellow brick road" actually refer to the gold standard? If I recall in the original, Dorothy's shoes were silver (changed to ruby slips for the famous movie). They wanted silver to be used alongside gold - or something like that. The symbolism was Dorothy with the silver being lead down an evil path of gold.
Mr Banzai: The fact that someone actually "junked" your art is proof, once and for all, that TD needs to remove the junk button.
Meh, who cares about being junked. Just because an opinion is popular doesn't necessarily make it right.
Chart: Gold
Top..."bitchez."
http://99ercharts.blogspot.com/2010/10/gold_06.html