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Trifecta Of Economic Horror: Trade Deficit Explodes To $46.3 Billion, PPI Rises Above Expectations As New Jobless Claims Surge

Tyler Durden's picture





 

Today's economic data avalance is a trifecta of horror: the August trade balance came at - $46.3 billion (deficit, duh), on expectations of $-44.0 billion, with the previous revised to ($42.6) billion. This is the second highest trade deficit in years. This also means the Q3 GDP will be revised lower again. Oh yes, and Schumer is currently frothing in the mouth as the trade deficit with China was at a record $28 billion, as expected based on the reverse lookup from yesterday's China trade surplus (which dropped). Elsewhere, PPI came in at 0.4%, on expectations of 0.1%: congratulation Ben, you have your inflation, as the bulk of the increase was in food and gas. PPI ex Food and Energy was 0.1%, in line with expectations. Lastly, jobless claims surge from 445K to 462K, with the prior number revised higher for the 24 out of 25 times. And speaking of revisions, the prior week Continuing Claims number was revised from 4,462K to 4,511K: yes stunning, we know. Those on Extended and EUC claims plunge by 340,000 for the week ended September 25, taking away a few more pips from GDP. All in all, this further cements the economic suicide that is QE2.

 


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Thu, 10/14/2010 - 08:43 | Link to Comment Turd Ferguson
Turd Ferguson's picture

I see that the EE is going to try to paint the tape with another reversal day today. These numbers certainly won't help their cause.

Gold overnight high of 1388. Silver reached 24.95! Blythe didn't sleep too well, that's for sure. I wouldn't want to be slow to get her coffee this morning.

Thu, 10/14/2010 - 08:57 | Link to Comment eigenvalue
eigenvalue's picture

Gold and silver have been knocked down. Guess $1400 and $25 won't be breached this week.

Thu, 10/14/2010 - 09:01 | Link to Comment Turd Ferguson
Turd Ferguson's picture

It was unlikely, even last night. 

If recent history is a guide, I'd say probably Tuesday. Rangebound from 1350-1400 through next week and into the last week of the month. The next leg up should take us to 1440 or so.

Thu, 10/14/2010 - 09:07 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Pre market saw gold at 1384.... yikes, can someone call Bennie and ask him to have the boys at JPM short a little more; I'd like to add to my position one last time...

Thu, 10/14/2010 - 09:20 | Link to Comment Instant Karma
Instant Karma's picture

What do you guys make of this. I went to check my safe deposit box at a bank, and, due to a change in "filing," the bank had lost the paper I sign into the vault with. Then, they could find no record of my box on their computer, because they said that some boxes opened in the past year had been "spit out" of the system. So, there was no evidence at the bank that my safety deposit box belonged to me, at least yesterday. Fortunately, one of the tellers knew me, and I was able to remove my little stash of precious metals. Very strange. Is there a conspiracy here?

Thu, 10/14/2010 - 09:36 | Link to Comment egdeh orez
egdeh orez's picture

You look at the economic numbers posted today and you realize how harmful Ben Bernanke's policies have been.

Thu, 10/14/2010 - 09:37 | Link to Comment DollarMenu
DollarMenu's picture

 

i had a similar experience a couple of years ago with B of A.

They were closing the old vault area and building a new, smaller one.

When I came to visit my stuff at the old area,

I found that they had 'lost' all the signature cards.  

The key to my box and a driver's license established

my right to enter, and the basis for a new sig card.

Very odd, and sloppy for a bank, but sign of the times...

or something else at work here?

Thu, 10/14/2010 - 11:03 | Link to Comment FEDbuster
FEDbuster's picture

Wait till you pay off your mortgage, and you ask them to convey the deed of trust/title to you.  "You want what? A thrity year old piece of paper! ha, ha, ha, ha..."

Thu, 10/14/2010 - 11:36 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Actually, you own your property - you've got a deed soemwhere, and if not, there's one on record at the county.   Also, hopefully you have your title insurance policy somewhere gathering dust in your settlement file that insures the fact that you own the property free and clear of all liens and encumbrances other than those that are OK, such as phone, cable and powerline easements, and declarations of restrictions if you live in a planned community, and of course the first lien to the TBTF or shady mortgage outfit that originally financed your purchase of the home.

Now when you're done paying, or refi-ing, if you are following ForeclosureGate, the issue then is getting the mortgage satisfaction issued by the party that actually owns your mortgage.

Of course, that also assumes you've been making your payments to the party that actually owns your mortgage.

Thu, 10/14/2010 - 10:04 | Link to Comment Return2Sanity
Return2Sanity's picture

Speaking of bank records, we had an odd little experience too, about a year ago. We received a summary our mortgage payment history in the mail, and there was a $25 unpaid late fee listed among the transactions from 2007. Now, we never paid late, we never received any such late notice at that time, and this summary we received wasn't a late notice itself, it was just a detailed history of transactions. So, we called and asked what the deal was with the late fee and they say, “Sorry our records don't go back that far, so we'll just remove that charge.” It really makes you wonder.

Thu, 10/14/2010 - 10:44 | Link to Comment optimator
optimator's picture

No conspiracy.  I went to a local bank to negotiate a C.D., doing the math percentages in my head.  The person I dealt with dealing with told me to "Slow down, I'm not very good at math".  These days when you go to a bank to get some change you better count it. 

Thu, 10/14/2010 - 09:21 | Link to Comment eigenvalue
eigenvalue's picture

You still have cash? I have already put it in cotton and gold. I'm thinking of buying some silver but I have no money now. Perhaps I should sell one of my kidneys on Ebay and buy it back when I make money from silver...

Thu, 10/14/2010 - 10:19 | Link to Comment breezer1
breezer1's picture

you should have not missed that biology class.

Thu, 10/14/2010 - 08:42 | Link to Comment Goldenballs
Goldenballs's picture

When all around disaster lurks crap your pants and disappear or check your stash of Gold and Silver.

Thu, 10/14/2010 - 08:44 | Link to Comment Cruel Aid
Cruel Aid's picture

The market is blind to the horror, 10 minutes in. Maybe the market is retarded.

Edit: Challenged, sorry.

Thu, 10/14/2010 - 08:47 | Link to Comment unwashedmass
unwashedmass's picture

 

nah, its the usual....the politicians -- in their supreme wisdom, believe if the market is up, everything is alright....schmucks that they are, they believe Wall Street will game anything, except them.....they tell the truth the Congress.....

so, what we have in the markets is a private show being put on for the Congress by Wall Street.....

as long as the market is up, no one really, truly believes the country is standing on the edge of the abyss......

except retail money which is still moving out ....faster than their tiny legs can carry them...

Thu, 10/14/2010 - 08:47 | Link to Comment tunaman4u2
tunaman4u2's picture

Market is up because of dollar being CRUSHED right now... data showing that QE2 would be suicide SHOULD make USD rise. Fed already says more printed money won't help jobs.

 

 

Thu, 10/14/2010 - 12:31 | Link to Comment cougar_w
cougar_w's picture

Challenged will get you in trouble, too.

Special. As in Special Olympics.

Thu, 10/14/2010 - 08:44 | Link to Comment papaswamp
papaswamp's picture

Did you see the NSA UnEmployment number?! +75,000?! I think that is the highest 1 week pop in a decade (2005 had one of +67,000).

Thu, 10/14/2010 - 08:45 | Link to Comment A Man without Q...
A Man without Qualities's picture

Second highest trade deficit on record given the state of the economy is just fucking staggering.  I remember when people pointed out that the Greek government's stimulus program was fueling the trade deficit as they simply didn't make what people were buying.

Of course, markets still slightly higher pre-open...

 

Thu, 10/14/2010 - 08:46 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Is there any wonder why we've now had 24 straight weeks of outflows??

Thu, 10/14/2010 - 08:56 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

yeah but with news like that, Dow 12,000 by tomorrow, around 10:31-ish give a take a few pomos

Thu, 10/14/2010 - 09:02 | Link to Comment A Man without Q...
A Man without Qualities's picture

I'm still pretty long stocks (though nothing US centric, mainly miners) and yet everyday for the last month, I have felt sick to see the market rise.  Yesterday I was staring at my portfolio feeling miserable, despite the fact it had gone up enough to buy a seriously nice car.  I had to slap myself and look at the upside, but all I see is a horror story approaching fast. 

I am not American, but I know many, decent hardworking Americans and they haven't realized how badly they've been fucked by the elites.  These people think that as long as you can control the media and the stock market, they can do whatever they want behind the scenes.  

It's almost got to the stage where the best thing that could happen to the country is a military coup.

Thu, 10/14/2010 - 11:20 | Link to Comment tmosley
tmosley's picture

Convert your stocks into physical gold and silver and you will feel better.  I know I do.

Thu, 10/14/2010 - 09:05 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

So can someone please explain to me the sudden wisdom being displayed by the supposed clueless investor class? Not being sarcastic here, but the "smart" money has supposedly manipulated the "dumb" money for centuries.

Why all of a sudden has the dumb money become smart? Or is it still dumb but scared? Because if the system collapses, all "money" no matter where it is held (forget about PMs for the moment because they aren't widely held) will becomes worth a lot less than it was before it became "smart".

I don't really see this being discussed here on ZH, only that it is fleeing.

Thu, 10/14/2010 - 09:21 | Link to Comment A Man without Q...
A Man without Qualities's picture

I remain convinced that the route to hyper inflation lies through attempts to stave off the deflationary collapse.  I still think we have at least one more downwave (banks will pull liquidity as a consequence of the housing chaos) and then people need to buy assets when the Fed prints $5 trillion.  I think forget gold and silver, these have flown.  

Thu, 10/14/2010 - 09:28 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

forget gold and silver, these have flown.  

so then what, farm land, crops, and lead?

Thu, 10/14/2010 - 09:49 | Link to Comment A Man without Q...
A Man without Qualities's picture

Finest quality whisky, coal miners (thermal better than coking coal), fertilizer companies, lumber, sugar.... best things are essentials with constrained supply.... 

Thu, 10/14/2010 - 09:54 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

so then what, farm land, crops, and lead?

"Human" capital, as in slaves. Big growth opportunities, particularly if you can cut a deal with the FEMA camp commandant to fill your raw material orders cheaply.

Hey, it worked for a few hundred years so why not again?

Sadly I don't know if I'm being sarcastic or realistic.

Thu, 10/14/2010 - 10:04 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

I'm afraid to say both.

Thu, 10/14/2010 - 11:26 | Link to Comment tmosley
tmosley's picture

Slaveowners tend to be brutally killed (note this is not murder) in slave uprisings.

Violation of natural rights will inevitably lead to depravity and violence.

Thu, 10/14/2010 - 12:23 | Link to Comment Punderoso
Punderoso's picture

"Slaveowners tend to be brutally killed"

Really, that is funny I haven't seen any of that happen to our bureaucrats, politicians, or bankers.

Thu, 10/14/2010 - 14:30 | Link to Comment minus dog
minus dog's picture

Sadly, they don't tend to be brutally killed, often as not.  Even if they have it coming.  Things can go a long ways just on momentum.

Thu, 10/14/2010 - 16:18 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

In fairness to tmosely, he qualified his statement.

Slave owners tend to be brutally killed (note this is not murder) in slave uprisings.

Thu, 10/14/2010 - 10:27 | Link to Comment Trifecta Man
Trifecta Man's picture

The banks determine their wealth by FRNs.  So when the stock market goes up, and they channel money into it to make this happen, it increases the bankers' wealth when the stock market goes up.

I'm guessing that you are in a quandary over why the dumb money is investing in the stock market, when it based on fictional accounting and the dumb notion that less workers in the long run is equal to more profits.  What choices do they have in their 401K plans to put money into?  Bonds are in a stupid bubble and low interest paying.  Stable Value is the safest, but doesn't make up for the devaluing currency.  Real estate is in trouble.  Stocks are the only alternative, if you want a chance at a good gain.  Many company 401k plans offer nothing else.

The public is generally not aware of the potential of a currency collapse.  And the public will have their liquid investment savings in retirement plans.  They think twice before taking it out too early due to tax penalty.  So they leave the money in there and make do.  Many in stocks there are just diversifying, as financial literature and advisers constantly remind them to do.

My former company plan finally gave us a "real asset" fund.  I looked at it, and 50% of the investment is now in TIPS.  That's a crock.

I use my "dumb" stock money to invest in foreign PM miners and similar, food stocks, an emerging market bond fund, and a few Chinese growth prospects, and some minor base metal or energy companies.  I'm not traditionally diversified.

Think of this.  If the banks own stocks, and they got the politicians in their hip pocket, the only way they they get out of their position is to sucker the vast public into taking it off their hands.  And since the public is largely scared, that may not occur as soon as you expect.  Meantime there is money to be made in the right sectors.

Incidentally I'm not so dumb that I own bank stocks.  Would never do so.

Thu, 10/14/2010 - 10:33 | Link to Comment Biggvs
Biggvs's picture

Perhaps the dumb money isn't suddenly smart. Without a regular paycheck coming in, maybe they're forced to liquidate a little every month to pay the iPhone bill.

Thu, 10/14/2010 - 10:40 | Link to Comment Founders Keeper
Founders Keeper's picture

[Why all of a sudden has the dumb money become smart?]

CD.

I agree.  It is perplexing.

The outflows suggest retail investors are gripped with fear, instead of greed.  My guess, people are running out of money.

 

 

Thu, 10/14/2010 - 10:42 | Link to Comment happybob007
happybob007's picture

A certain amount of the retail money is leaving in response to prolonged unemployment and underemployment.  I suspect that is the root cause of most of the retail withdrawls.

Another possibility is that those of us who are paying attention and talking to our friends and family are actually being able to help them.  Many of these retail investors got hammered in the spring of 2009, but their portfolios are getting back close enough to the top that our telling them about the flash crash(es) and what that means in terms of them being able to get out the next time they want to sell in a hurry.

I know that these events and my explaining them helped my folks to decide to pull most of their holdings out, even without knowing where to move it to next.  Not even I like the idea of tying up most of it in short term CDs at the local credit union, but it seems like the best not-playing-chicken-with-the-Fed strategy to adopt when the people in question are in their 60s.

TL;DR: the dumb money is caching out month by month in order to continue making their house and car payments and to keep eating.  Maybe some portion of the retail investor is leaving because they can see that the game is rigged.

Thu, 10/14/2010 - 11:10 | Link to Comment FEDbuster
FEDbuster's picture

CD, I think the old saying, "Fool me once shame on you, fool me twice shame on me" explains the withdrawl of non-401K investment money.  I would like to see an age distribution chart of the withdrawls.  My guess is the 60+ crowd isn't going to go for one more ride on the rollercoaster.

Thu, 10/14/2010 - 11:46 | Link to Comment tmosley
tmosley's picture

They have given up on playing the game.  Much like Global Thermonuclear War, the only way to win is not to play.  The "dumb" money doesn't necessarily realize this.

But of course, since they don't really know what is going on, they will lose out in the end as the smart money exits via PMs rather than cash and/or goods needed for survival.

Thu, 10/14/2010 - 12:45 | Link to Comment cougar_w
cougar_w's picture

The wheels are set to come of. Everyone is feeling it, nobody is talking about it. Lots of people are acting on their gut expectations even if they aren't making a big deal about it, the latter in part because they might be wrong and in part because even if they are right they don't want to be seen as swimming against the tide and in part because it is dangerous to contemplate the end of the world as we knew it. We understand instinctively that to speak its name is to summon it.

 

It's one of those The Wisdom of Crowds moments, with a bit of black terror thrown in.

Thu, 10/14/2010 - 14:33 | Link to Comment minus dog
minus dog's picture

There is now a distinct feeling that we're slowly drifting to the other end of the bathtub, and if we squint, we think we can make out the water swirling down the drain.

Thu, 10/14/2010 - 16:36 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

We understand instinctively that to speak its name is to summon it.

I often think about this idea. By speaking of "it", we begin to break down the denial of "it". Collective denial of the real possibility of collapse keeps the collapse at bay for much longer than most people think possible. Perception is reality and people won't act like the end is coming if they don't admit the end is coming. This concept is so foreign to people that it's ignored or rejected, but it's still practiced on a daily basis.

Wasn't it Goebbels who said that the state will exist as long as it can shield the people from the consequences of the states actions? And the manner in which it does this is through mind control aka propaganda and psyops. WW2 Germany was defeated long before it surrendered. The state was successful in shielding that reality from it's people for a long time. Once they could no longer do so, the state collapsed in days.

So to admit that this way evil comes is to then begin to act as if this way evil comes. This precipitates the collapse by precipitating a change of behaviour, thus reinforcing the belief that if only we thought happy thoughts, the evil would never have shown up.

Of course, being rigorously honest and open in all our affairs would go a long way to ensuring that are affairs stay in order. But that would also mean the powers that be surrender the only effective weapon of control they posses, that of the application of fear and our acceptance of that applied fear.

I always am amazed how pervasive in our society is the concept that people make you angry or the boss makes to upset or the girlfriend makes you happy. No one makes you do anything. But thinking this way excuses us from responsibility for our emotional state and by extension excuses us from changing our emotional state and  our circumstances and well being.

Victimization institutionalized and control surrendered.

Thu, 10/14/2010 - 08:49 | Link to Comment Dagny Taggart
Dagny Taggart's picture

No, it will be different this time. <sarc, maybe?> Its never different, until it is. Exponentially.

Thu, 10/14/2010 - 08:46 | Link to Comment UninterestedObserver
UninterestedObserver's picture

Black swans bitchez

Thu, 10/14/2010 - 08:47 | Link to Comment Goldenballs
Goldenballs's picture

Rationality,honesty,fear and common sense play no part whatsoever in the markets.They are banned by official decree forthwith.

Thu, 10/14/2010 - 08:47 | Link to Comment Thunder Dome
Thunder Dome's picture

Buy whiskey!!!

Thu, 10/14/2010 - 08:51 | Link to Comment papaswamp
papaswamp's picture

Buy a still and make your own. That is my next purchase.

Thu, 10/14/2010 - 09:09 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

http://www.coppermoonshinestills.com/

Get in (the very long) line.

Thu, 10/14/2010 - 09:25 | Link to Comment papaswamp
papaswamp's picture

Yep that is the place..I almost bought one last year...kicking self. there are a couple on e-bay, but low quality.

Thu, 10/14/2010 - 09:38 | Link to Comment Hulk
Hulk's picture

Build your own

http://homedistiller.org/

Thu, 10/14/2010 - 09:56 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I remember many moons ago that you mentioned you had just completed your own.

How have the hangovers been? :>)

Thu, 10/14/2010 - 08:52 | Link to Comment tmosley
tmosley's picture

I'm trying, but it disappears as fast as I buy it.

Must be sleep-drinking, because every morning I wake up and look at Zerohedge, I want to throw up. 

Thu, 10/14/2010 - 09:11 | Link to Comment Sudden Debt
Sudden Debt's picture

FINALLY SOME GOOD AND SOUND ADVICE!!

 

Thu, 10/14/2010 - 09:43 | Link to Comment frankTHE COIN
frankTHE COIN's picture

In prison Bernanke can make toilet wine.

Thu, 10/14/2010 - 10:31 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Bernanke will die in the bunker with the other top stooges and front men.

A few minor officials and talking heads will be put on trial to soothe the few savage beasts who can find the strength to wander from the bread lines to witness the trials live and in color on the TeeVee.

Brought to you (or course) by GE. "Where good things are brought to light".

Thu, 10/14/2010 - 08:48 | Link to Comment MarketTruth
MarketTruth's picture

And CNBCBS will say at 4pm, as the market closes ~1% up for the day, that the market shrugged of the bad numbers as they see promise in the continued improvement in the economy.

The system in not broken, it is totally manipulated with out of control by the PPT and the Federal Reserve with their retail arms JPM, GS, etc. Dollar 'value' to the gutter and Dow to 14,000.

Thu, 10/14/2010 - 08:48 | Link to Comment dashingdwl
dashingdwl's picture

Rally on folks.  Ben is guaranteeing that he is going to buy shit paper from the $140B dollar men later this Fall.  Bank on it.

Thu, 10/14/2010 - 08:52 | Link to Comment Chris Jusset
Chris Jusset's picture

Bernanke is the root of all evil.

Thu, 10/14/2010 - 09:56 | Link to Comment Miss Expectations
Miss Expectations's picture

Love of Bernanke is the root of all evil.

Thu, 10/14/2010 - 10:53 | Link to Comment doomandbloom
doomandbloom's picture

my twin ..!

Thu, 10/14/2010 - 09:06 | Link to Comment SheepDog-One
SheepDog-One's picture

The surprise is there will be no Q/E2.

Thu, 10/14/2010 - 08:49 | Link to Comment Sean7k
Sean7k's picture

Tyler, maybe the Simpson's can do something with this title for their halloween spectacular?

Thu, 10/14/2010 - 08:49 | Link to Comment lizzy36
lizzy36's picture

Up 2% today on QE2 being a Krugman like $5T (to be fair Krugman would like QE2 to be $8-$10T because apparently the Nobel commitee gives prizes to Zimbabwesque PH.d Economists)

Definity and Beyond.

Thu, 10/14/2010 - 09:00 | Link to Comment AccreditedEYE
AccreditedEYE's picture

+1  I'm getting really sick and tired of these bearded fools pushing us into economic suicide. I would normally ask "when will these fools realize the end doesn't justify the means", however I now believe they know exactly the kind of economic terrorism they are promoting.

For God's sake, just bring the One World Government and let's be done with this.... BS.

Thu, 10/14/2010 - 09:49 | Link to Comment SheepDog-One
SheepDog-One's picture

Yes... ALMOST makes you conclude theyre doing it on purpose all along? Planned economic destruction in order to bring in 1 world govt, 1 world currency....NAH thats just 'kook theory', lol.

Thu, 10/14/2010 - 09:34 | Link to Comment Shameful
Shameful's picture

Krugman is playing it smart, he takes the biggest craziest number he thinks anyone might use then doubles it.  It means that when it falls flat on it's face he always has the argument "it wasn't big enough".  He's a con man but he's not stupid.

Thu, 10/14/2010 - 11:45 | Link to Comment FEDbuster
FEDbuster's picture

The Robert Mugabe Prize for Economics is awarded to Paul Krugman today.  The paper chained necklace features a hand carved wooden image of President Mugabe.  When asked what the z$100 Trillion dollar prize money means to him? Dr. Krugman replied, "No comment".

Thu, 10/14/2010 - 08:49 | Link to Comment HedgeFun
HedgeFun's picture

Coming soon to a theatre near you...."Trifecta Of Economic Horror"

Ticket:  $2,375 each
Popcorn:  $1,275 (small)
Something to do while out of work:  Priceless

Thu, 10/14/2010 - 08:50 | Link to Comment doolittlegeorge
doolittlegeorge's picture

and right on time comes "recovery."  See ya' later Benny and the Printo-crats.

Thu, 10/14/2010 - 08:50 | Link to Comment deez nutz
deez nutz's picture

negative feed back loop?  seek the cheapest cost and don't worry about tomorrow

Thu, 10/14/2010 - 08:50 | Link to Comment Caviar Emptor
Caviar Emptor's picture

As the crumbling continues all around, only gold shines out like a ray of sun in the darkness.

Thu, 10/14/2010 - 08:50 | Link to Comment strenue
strenue's picture

Now what, Bennie?

Thu, 10/14/2010 - 09:01 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

More steam! Give me more steam.

Bring the rest of the boilers on line. I want to make NY by daybreak. Damn the icebergs, full speed ahead.

Thu, 10/14/2010 - 10:03 | Link to Comment Miss Expectations
Miss Expectations's picture

The sad story of Frederick Fleet, the man who saw the iceberg:

http://www.webtitanic.net/fleet.html

Thu, 10/14/2010 - 11:29 | Link to Comment FEDbuster
FEDbuster's picture

The classic and missed Harry Chapin:

http://www.youtube.com/watch?v=KwlYjmtshJU

Thu, 10/14/2010 - 08:51 | Link to Comment crzyhun
crzyhun's picture

Add to this the horrible atmosphere for the $$ and well the stock market will rise, it has to. But once the QE II comes in watch the profit taking.....

Thu, 10/14/2010 - 08:52 | Link to Comment monkeyfaction
monkeyfaction's picture

If I were Ben Bernanke I would wait until November and then anounce just 1 million dollars of QE2 quantitative easing, Dr Evil style.

A potential comedy moment like that only comes once in a lifetime.

Thu, 10/14/2010 - 09:01 | Link to Comment Goldenballs
Goldenballs's picture

Even better I,ve lost my cheque book and pen,QE2 cancelled.

Thu, 10/14/2010 - 15:19 | Link to Comment Troublehoff
Troublehoff's picture

ROFL

Good one monkey...

'One Million Dollars!'

Not good for the Gold mind :(

Thu, 10/14/2010 - 08:52 | Link to Comment Movermike
Movermike's picture

Actually, we have has trade deficits above $60 billion.  This is not a record or even close.

Thu, 10/14/2010 - 08:53 | Link to Comment HedgeFun
HedgeFun's picture

Hahaha...dr evil style.  Nice one

One millllllllllllion dollars.   I mean...I hundred billion dollars.....

Thu, 10/14/2010 - 15:25 | Link to Comment Troublehoff
Troublehoff's picture

Actually, that's quite worrying now I think about it. One hundred Billion Dollars was meant to be an obscene amount of money (and is) when that film was released.

If Bernanke announced 100 Billion Dollars of QE people would laugh at him.

Thu, 10/14/2010 - 08:53 | Link to Comment Goldenballs
Goldenballs's picture

I think Disfunctional is the correct term as in not reflecting reality in any way possible,Scarey stuff,on top of Scarey stuff on top of even Scarier stuff.Bit like playing Poker with a crap hand,the pot getting higher and higher,knowing that when the pot reaches unaffordable proportions someone is going to call your bluff.

Thu, 10/14/2010 - 15:27 | Link to Comment Troublehoff
Troublehoff's picture

'Can the game last indefinitely?' 

Is the question.

Thu, 10/14/2010 - 08:53 | Link to Comment john_connor
john_connor's picture

QE 1 aftershocks are now busting thru the manipulated data.

QE = higher input costs, higher unemployment, trade wars, and then world war

Thu, 10/14/2010 - 08:54 | Link to Comment I am more equal...
I am more equal than others's picture

Watch Zombieland and get the new rules of engagement for the life that awaits us all. 

Save those twinkies!

Thu, 10/14/2010 - 08:54 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Dear Ben: Send check $7.5 Trill, yours sincerely, Bankster Asscn of America

Thu, 10/14/2010 - 08:57 | Link to Comment bada boom
bada boom's picture

"Nothing is fucked up here, Dude."

Thu, 10/14/2010 - 08:59 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Said the man with a knife in his back and the unfinished frontal lobotomy. :>)

Thu, 10/14/2010 - 09:46 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Thats hillarious

 

Thu, 10/14/2010 - 08:59 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

At this point in the game only hyperinflation would drive up the price of real estate. Household income determines the average price of a home, not liquidity. Bernanke is freaking clueless. 

Thu, 10/14/2010 - 09:04 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Hyperinflation and hyperventilation

Thu, 10/14/2010 - 10:15 | Link to Comment aheady
aheady's picture

Seriously.

Thu, 10/14/2010 - 09:10 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

I want to know if Bernanke is an alien.

It is the only reasonable explanation left.

Thu, 10/14/2010 - 09:06 | Link to Comment Boilermaker
Boilermaker's picture

Futures are UP!

Evidently...nobody gives a fuck!

Thu, 10/14/2010 - 09:10 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

That's gonna be one hell of a rush to the exits when they suddenly do give a fuck.

You know that's gonna happen, right? It always does. The illusion stands only for so long before collapsing. And then it's replaced with the next.

Thu, 10/14/2010 - 09:12 | Link to Comment SheepDog-One
SheepDog-One's picture

No one IN the markets except big dumb Bennie and his Inkjets. Their plan was to pump and pass off to retail. Not happenin. I dont care what anyone says, THIS was not how they thought their hand wringinly evil plot would turn out, AT ALL! No, the FED never imagined it would be sitting on about $5 trillion worth of stocks and MBS garbage with no one to dump it to. USA now on full blown false flag diversion alert.

Thu, 10/14/2010 - 09:48 | Link to Comment Boilermaker
Boilermaker's picture

I would have preferred "mustach twisting sinister plot"...but

Thu, 10/14/2010 - 09:20 | Link to Comment Bob
Bob's picture

They play it all the way up (except for the insiders who continue to liquidate their shares in mindboggling numbers) and the banks position themselves to short it when the plug is pulled. We've seen it before.

Don't think for even a moment that Big Money doesn't  care.  They just await the memo from their buddies at the Fed. 

Thu, 10/14/2010 - 09:25 | Link to Comment SheepDog-One
SheepDog-One's picture

Short it to whom? 

Thu, 10/14/2010 - 09:49 | Link to Comment Boilermaker
Boilermaker's picture

FRBNY.

Thu, 10/14/2010 - 10:20 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh, well that'll surely help them dig out of their hole by digging it far deeper.

Thu, 10/14/2010 - 10:30 | Link to Comment Boilermaker
Boilermaker's picture

Well, they have to care about the depth of the hole first before they attempt to 'dig out'.

Thu, 10/14/2010 - 11:56 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

"shovel ready projects"

Thu, 10/14/2010 - 09:10 | Link to Comment Eldo
Eldo's picture

Bernanke like an actor that wandered off set and finds himself in the real world -- Tropic Blunder.

Thu, 10/14/2010 - 09:13 | Link to Comment SheepDog-One
SheepDog-One's picture

LOL, good one!

Thu, 10/14/2010 - 09:12 | Link to Comment Sunshine n Lollipops
Sunshine n Lollipops's picture

"the bulk of the increase was in food and gas."

 

So what. There's no reason people can't carpool to the grocery store. Plus, shoplifting in groups works so much better.

At least in my experience.

Thu, 10/14/2010 - 09:19 | Link to Comment bada boom
bada boom's picture

Yeah, and we can also eat are own shit.

Thu, 10/14/2010 - 09:14 | Link to Comment system failure
system failure's picture

WTF THE RECESSION ENDED IN JUNE 2009, at least that is what they said. HOW CAN THIS BE????? LOL

Thu, 10/14/2010 - 09:42 | Link to Comment Sudden Debt
Sudden Debt's picture

didn't you got the memo?

 

Thu, 10/14/2010 - 09:15 | Link to Comment BurningFuld
BurningFuld's picture

I'm going with the forward slash shaped recovery.    \  

Note: In this analogy "forward" should not be taken to mean anything positive.

Thu, 10/14/2010 - 09:16 | Link to Comment system failure
system failure's picture

TRIFECTA HORROR = AND THE FREAKING MARKET WILL BE UP UP UP UP UP UP UP UP UP UP UP UP and AWAY.........

Thu, 10/14/2010 - 09:19 | Link to Comment tom
tom's picture

actually gas prices fell in september. that increase in "food and energy" was all due to a sharp increase in food prices. which, of course, is nothing anyone who sets economic policy should worry his pretty little head about.

Thu, 10/14/2010 - 11:35 | Link to Comment SoCalBusted
SoCalBusted's picture

The October numbers will be very interesting.  Gasoline is up around 15 cents/gal here in just a couple of weeks.

Thu, 10/14/2010 - 18:13 | Link to Comment ToddGak
ToddGak's picture

Yeah, so those Social Security recipients who didn't get COLA increases shouldn't be upset, since they don't need to eat...oh wait...

Thu, 10/14/2010 - 18:23 | Link to Comment Judge Smales
Judge Smales's picture

And if the price of cat food goes up, they're really f*cked.

Thu, 10/14/2010 - 09:20 | Link to Comment Heroic Couplet
Heroic Couplet's picture

There was a recent bill in Congress to end tax breaks for corporations that send US jobs offshore. Republicans voted against it, so don't get too excited about jobless claims. Just ask any Republican to go to the smallest of small towns in their states, where they won't be recognized, and look for jobs. Take Faux News, and show us how long it takes.

Thu, 10/14/2010 - 09:27 | Link to Comment SheepDog-One
SheepDog-One's picture

Whoa, now we've got Huffington blog political whores on zerohedge? That signals peak pump. Get out now.

Thu, 10/14/2010 - 10:26 | Link to Comment GoingLoonie
GoingLoonie's picture

Common SheepDog-One let's be honest here.  The Dollar index was 121 in July 2001 and smart people started buying gold because W announced a strong dollar policy.  The decline started by Daddy (GHWB) continued.  The index spent most of 2008 at 73 until pumped up to a formidable 79 for the election.  And Gold?  Suggest you see the 10 year graph of Gold on Kitco.com (tried to place it here but was unable.)  But, basically gold went from about $280 a troy ounce in 2000 to about $1000 in 2008.  For simplification we will call this a 4 fold increase.  

Now let's sum it up.  In 8 years of W the stock market dropped about 40%, The dollar relative to gold dropped about 75%, and for the "we love fiat group" the dollar relative to other "western culture" currencies dropped 40%.  Now what do you not get about the 8 years from hell W?  Now to make you feel better I will add, it is no better now.  We (those of us naive enough to believe in our Government voted for change.)  Yet, we got no change the baton march of dollar destruction continues unabated with the full knowledge of the "money changers" in power.  That is why I am going loonie.

 

Thu, 10/14/2010 - 14:29 | Link to Comment Cull Morgan
Cull Morgan's picture

I hear ya', but don't you worry about what the bursting of the Canadian housing bubble will do?

Thu, 10/14/2010 - 10:33 | Link to Comment GoingLoonie
GoingLoonie's picture

Common SheepDog-One let's be honest here.  The Dollar index was 121 in July 2001 and smart people started buying gold because W announced a strong dollar policy.  The decline started by Daddy (GHWB) continued.  The index spent most of 2008 at 73 until pumped up to a formidable 79 for the election.  And Gold?  Suggest you see the 10 year graph of Gold on Kitco.com (tried to place it here but was unable.)  But, basically gold went from about $280 a troy ounce in 2000 to about $1000 in 2008.  For simplification we will call this a 4 fold increase.  

Now let's sum it up.  In 8 years of W the stock market dropped about 40%, The dollar relative to gold dropped about 75%, and for the "we love fiat group" the dollar relative to other "western culture" currencies dropped 40%.  Now what do you not get about the 8 years from hell W?  Now to make you feel better I will add, it is no better now.  We (those of us naive enough to believe in our Government voted for change.)  Yet, we got no change the baton march of dollar destruction continues unabated with the full knowledge of the "money changers" in power.  That is why I am going loonie.

 

Thu, 10/14/2010 - 11:58 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

News flash, Dems still control both chambers.....

Thu, 10/14/2010 - 09:43 | Link to Comment Trifecta Man
Trifecta Man's picture

The $1 trifecta paid $18.90.   You need to put more longshot predictions into your bets.

Thu, 10/14/2010 - 09:43 | Link to Comment sbenard
sbenard's picture

Economic Horror? What do you expect!? It's Halloween this month!

Thu, 10/14/2010 - 09:45 | Link to Comment SheepDog-One
SheepDog-One's picture

Indexes down or at least flat, dollar still collapsing. Peak BS reached, its near diversion time.

Thu, 10/14/2010 - 09:45 | Link to Comment jbc77
jbc77's picture

Is anyone surprised the market is now green? I mean, heck, with all that good data this morning.

Thu, 10/14/2010 - 09:51 | Link to Comment Boilermaker
Boilermaker's picture

I was so surprised I half-cocked open an eyelid before falling back to sleep. 

Isn't SportCenter on?

Thu, 10/14/2010 - 09:53 | Link to Comment SheepDog-One
SheepDog-One's picture

I guess Id be mildly surprised if markets were up, but theyre not.

Thu, 10/14/2010 - 10:10 | Link to Comment Boilermaker
Boilermaker's picture

Go take a dump and come back and look.  They'll have had a shot of adrenaline by then.  It's pretty clear, already, that they are going to not let it fall.  They'll end up.

Thu, 10/14/2010 - 10:18 | Link to Comment SheepDog-One
SheepDog-One's picture

Well, they BETTER prop the crap up, because theyre going to need about 100 DOW points just to tread water above the toilet bowl swirling dollar decline! Get busy Bennie and the Inkjets! Chop chop!

Thu, 10/14/2010 - 11:40 | Link to Comment FEDbuster
FEDbuster's picture

Maybe the HFT super computers lost reverse gear?  All that is left is 1st, 2nd, 3rd and overdrive.

Thu, 10/14/2010 - 09:48 | Link to Comment pile of poop
pile of poop's picture

The fact that the Fed strips out food and energy onyl reinforces the argument for total destruction of the dollar.  By the time inflation spills over into the "core" rate, it'll be way too late.

Thu, 10/14/2010 - 09:49 | Link to Comment hugolp
hugolp's picture

Stagflation here we come!!!

Thu, 10/14/2010 - 10:18 | Link to Comment Lord Blankcheck
Lord Blankcheck's picture

negflation

Thu, 10/14/2010 - 09:56 | Link to Comment sbenard
sbenard's picture

Whew! I'm soooo glad we can just PRINT prosperity!

Thu, 10/14/2010 - 10:04 | Link to Comment Kina
Kina's picture

Excuse me Mr Bernanke, there is somebody here to see you..

 

http://www.blackswanfarm.net/EntranceBlackSwanfarm.jpg

 

Thu, 10/14/2010 - 10:11 | Link to Comment -Michelle-
-Michelle-'s picture

I'm feeling very uneasy and have had nagging thoughts for the past week.  The spot prices pre-market did not help. Another trip to the coin shop is in order.  I'll have no peace until it's complete.

Thu, 10/14/2010 - 10:20 | Link to Comment Common Man
Common Man's picture

Remember remember the 5th of november

CM

Thu, 10/14/2010 - 10:29 | Link to Comment Biggvs
Biggvs's picture

So with 1.5% yoy core inflation, which seems not too far off the Fed's target, and with 4% yoy headline price rises, and with still being on a ZIRP, does this diminish the chances for QE2? Or is Ben going to fire up the printers anyway? Must be sitting on a massive stockpile of ink cartridges at this point.

Thu, 10/14/2010 - 11:14 | Link to Comment Wyndtunnel
Wyndtunnel's picture

Like all Global conflicts the livelihoods of the masses are being demolished as collateral damage in a war that is nothing more than a grudge match between the world's global rich elites. Relative peace can only exist between these factions so long as THEY feel that none of their ilk is getting much richer at THEIR expense. Up until recently the American super rich were making money hand over fist but the credit crisis and subsequent system paralysis that has plagued their wealth extraction schemes has their backs against the wall. They do no give a flying fuck about the small people. In the same way that WW1 and WW2 seemed "inconceivable" to economists and ground level observers, the present global conflagaration will likely grow into something that defies logic...but only for people who think that the Global Elite have any compassion for their fellow humans. They don't and neither would most of the commentators on this site with that kind of money and power at their disposal. I have worked on enough filmsets with hollywood stars ad know from first hand experience that people who earn 10s of millions of dollars per year simply because they are "talented" at pretending to be other people think that they are really extremely special and by divine right are to be treated like royalty. They are never to be told they are wrong and every whim of theirs, no matter how ludicrous or outrageous, is to be met short of which tantrums are to be expected. These are the ways of the super wealthy and even a good part of the wealthy. The only opinion that they care about is that of peers and people richer than they. The American Dream has become the American obsession: to become rich enough to get whatever you want by paying for it with complete disregard for the law or any other sense of morality and to send the middle class trash and the poor to Hell for their inability to cross over into the realm of the super rich which is clearly indicative of their inferiority as a class of subhumans not worthy of any compassion. Is it by a lark that the appearance of the New Testament is coincident with a reset of TIME itself as the civilization for which it was crafted collapsed into oblivion? Will Googles, Facebooks, Twitters and other of their ilk yet imagined be the churches of the Internet God that rule the future civilizations that rise from the ashes of our own? What plans do the National Social(ist) Networks have in store to help save the world from the horrors of fiat currency? It would not surprise me in the least that years from now the Fed will have been replaced by a digital equivalent owned and operated for the benefit of network aggregating agencies such as Google who will control digital money backed by a basket of PMs, rare earths and energy commodities that they control and exploit. Google's Atlantic Wind Connection is just the beginning. http://mashable.com/2010/10/12/google-wind-farm-offshore/

Thu, 10/14/2010 - 10:39 | Link to Comment Jim B
Jim B's picture

Who needs food?

Thu, 10/14/2010 - 11:55 | Link to Comment Downtoolong
Downtoolong's picture

Is anyone surprised the market is now green?

What else, in a world where Wall Street always and completely trumps Main Street, even the one in Disneyland.

 

 

Thu, 10/14/2010 - 13:43 | Link to Comment Stuck on Zero
Stuck on Zero's picture

The "Free Trade" globalist money suckers say that we must not resort to protectionism.  Isn't that what the border patrol is about?  The military?  Laws?  Constitution?  Police?  Guns?  I like protectionism.

"Free trade" is a concept like "Free Love".  Great in concept.  Unworkable because humans are involved.

 

Thu, 10/14/2010 - 15:36 | Link to Comment Nacho.Libre
Nacho.Libre's picture

My guess is Zerohedge and the internet happened.

Thu, 10/14/2010 - 21:43 | Link to Comment Buck Johnson
Buck Johnson's picture

It seems like they don't want the market to have any triple negative day whatsoever.  It might start a stampede out of stocks and the market.  This negative news should have had the market down past one hundred.

Tue, 11/16/2010 - 10:39 | Link to Comment daniel
daniel's picture

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