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TYZ Bloodbath Commencing In 5...4...3...
The only chart that may matter until the end of the year... And no, this is not Portugal.
Furthermore, in extolling the virtues of the administration's trading record, one should be objective and point out that with a DV01 of $1,000,000,000, the Fed's SOMA is sitting on $20 billion in intraday losses today alone. (Don't forget that the Fed is the biggest hedge fund in the world currently).
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the real reason is. as bond yields rise this translates into real interest rate rises which will kill the US economy. one of the reasons bond holders are dumping, is the price of gold is rising. so, to get the yields down they have to kill gold which they are currently doing.
Bruce feel free to write as much as you want about this ;)
Seconded.
Thirded. BK is one of my favorite guest posters.
Cooter
I am hoping that Tyler and Bruce run as a ticket for '12.
Fourthed!
Ben's an idiot. The truth comes out.
Nonsense. Ben will just have Interpol arrest the market on some charge like sex crimes or something. Locked up without bail it is no longer a threat to society.
It seems the 30yr is having sex without a condom with those new bagholders of worthless toilet paper bonds. I don't know, how this will end... correction it will end in war.
LOL, exactly. We joke, and yet that is exactly why this sh*t is so serious, is because this is how the seeds for civil wars and world wars are sown.
I vote Civil.
+1
I'm sure there will be many to testify they have been raped by the market.
ROTFLMAO!
+10
Not Interpol anymore - now they are called the Dating Police:
Julian Assange Captured by World's Dating Police
http://www.huffingtonpost.com/naomi-wolf/interpol-the-worlds-datin_b_793...
Speaking of which, Naomi earns a huge shout-out for balls of integrity the size of fucking boulders for this one. Feminists could have gone either way, and she's an icon.
Likewise for the cursedly liberal HuffPo. Credit where credit is due, I say.
Another entry in the Urban Dictionary coming right up ...
What, boulder balls? Balls of integrity? Laughing, I dig Naomi. (you don't think she's really rockin' balls, do ya? Oh noes...) ;-)))
Think of it as a transexual compliment (no, there's no allusion to the SEC in that.)
This will certainly take care of over population.
eeeewww, you posted a link to hufpo and didn't warn me to put on my digital protections. (yes, double bagger).
I'm pushing option 329 on the interpol crime reporting phone tree. You're gonna pay, buster.
- Ned
<oh and /sarc>
If this is not contained, this will open up a whole new level of pain, for the economy. BAC is toast. Toast. Toast.
Really? Down by 1 cent isn't exactly "toast".
even with the fraud.. its pretty unreal. today wont look good on the charts though, I take comfort in that.
hey harry... Take a look at BAC's 6 month.. get back to me..
You're right, pay no attention to the fact that BAC is trading just above 52 week lows after a huge injection of cash from the Fed.
so whats with that rumor that the Fed would convert their bond holdings to preferred, did I miss something there? you were suggesting something like that, including market volatility, or was that just a side rant.
Yes, we are all eagerly awaiting your autopsy results...
If they crashed equities, the Treasury sell-off could reverse in a heartbeat.
Think of 2008.
+ $14 trillion @ 10%
How many army divisions does the market have?
FWIW TYH is front month, but price action is the same...
So how are they going to sell this?
We naked shorted the fuck out of silver to suppress it's price. Assholes rose the price on us. So now we have these huge losses that the taxpayer has to pay for.
This is going to get funny as hell as they try to treat everyone like public wallets.
man Turd admonished me and told me to relax....that was when it was 29.72...he's my dude but how u gonna witness this type of shit and not get pissed...i mean, throw that technical shit out the window, how the fuck else do u explain the type of moves in Silver today except for manipulaton???? im just sayin....
I'm just saying. You're on the fed's side against your will. They are already dragging out bullshit stories about profits from the "bailout".
There is going to be another "emergency" and another emergency bailout round. They are prepping it. It's noticeable. As Bruce said. Bernanke can't fight this. This is going to be lie's thrown at people who had better have their make sense and tell the whole story speeches written or they are going to be so in the dark about what is going on.
The brothers Hunt are asking, "where's my bailout"?
Yes that's rigth banks get what they want not what they deserve..........
No, you can't always get what you want
No, you can't always get what you want
No, you can't always get what you want
But if you try sometime, you just might find
You get what you need
He said one word to me and that was, "dead."
...and they reach their lows at 3pm then promptly start to bounce back. Thank god for buy algos or the world would actually reach a fair value.
http://www.google.com/finance?q=INDEXAMEX:AXTHR.X
http://www.google.com/finance?q=INDEXAMEX:AXTEN.X
Noticed that as well. ZH is becoming a contrarian indicator. Whenever something is posted it immediately turns in the opposite direction, whether it be equities or bonds.
Note how your equities have dun
gone south, Wanker, as bonds
have blown up and QE2 begins its
epic fail.
Late day rumor more insider trading issues looming ...
Huh??? Indices are challenging 2 year highs, what exactly are you talking about??
Just like Zimbabwe
Nominal gains bitchez!
Cooter
dont confuse harry with words like "nominal" cooter, will make his tiny brain explode
Indices challenging 2 year highs? OK, remove all POMO and raise that rate just up to a measely 2% and see what your indices are pushing then, pushin up daisies is what theyd be doin.
To be perfectly fair, The Wanger did say equities were challenging "2 year," and not "12 year" highs.
Because they are flat on the 12 year.
I don't get it Harry seem's like a smart person. I'm not a trader, but even I relize this sucker is on life support....
Scroll up to Akak's post at 16:44, he explains it all...Harry is a troll on a social experiment to antagonize genetic "perma-bears".
Harry supports criminality. Those who oppose it are utopian in Harryland. Harry is why things are so fucked up.
Harry is a cunt.
Two can play the game -- start jerking his chain by posting the most dire pictures of doom and gloom you can think of (mark the end with </HW>) :>D
Don't forget mark2myth Sheepdog...it's all unicorns and rainbows.
Measuring a plank of wood in inches that are smaller than conventional inches does not make the board longer.
And that's why gods and kings have been charged with maintaining standard weights and measures. But not so much anymore.
That's what she said.
Right, it's working well for 18 months....
Are you still mad about us using you as a contrarian indicator all last summer. Are you pissed we won't reciprocate for ya?
http://www.youtube.com/watch?v=gL_0g4onX1k
No you're just turning more bulltard by the minute. You didn't learn a damn thing before or after May 2010. I don't know why someone is even bothering to ask you for advice on what you think on APPL and some other overpriced stock. A broken clock is...
Just think how ugly this chart would look if the FED wasn't sucking up $8 billion per....
Indeed.. Was thinking the same thing.. Thank you BB.. We should all take a collection to fuel his helicopter.. :)
It is a PERPETUAL MOTION MACHINE, dontcha know?
It is a PERPETUAL MOTION MACHINE, dontcha know?
He's one of those voodoo magicians!!!
http://www.youtube.com/watch?v=3vlAdMeZSfw
This is what Ive been wondering for awhile: what does the Fed do with their book once it all goes south? Can they just bury the losses forever?
the Fed offloads it onto Treasury, unless the Tea Party stops them. Basically Fed and Treasury are the same thing. If somehow they firewall the Fed's bad paper, then the system crashes, (again) and the political class with it. I sorta think a younger Geo Soros might be behind something like this, and he is working with Palin.
Tea Party? Oh theyre busy doing a backroom deal to pass the 'Dream Act' as we speak.
they're trying to kill UI, which would be a hit to GDP, 70% consumer spending. But if they blow up the tax cut extension, (you see the Republicans are like China and North Korea) in this case the Tea Party might blow up the GOP victory, unless of course they agree to toss them a few bones (comm seats, stuff like that)
Um.. wrong party. You mean the 'Crats, libbies, or whichever party needs a vote from an illegal. The Tea Party is generally not associated with the DREAM act passage..
Wait a minute, the Fed offloads, what is to them, an asset onto the Treasury, the entity to whom these obligations are liabilities. This asset/liability distinction is one reason it’s careless to conflate the Fed w/the Treasury. The Fed is essentially a cartel of bankers who presumably want to be repaid. The Treasury is the borrowing and cash management arm of the USG. What does the UST give the Fed in return for said offloaded Treasury securities? Yellowstone NP? An F-18?
So the question before the House remains, “Can they [the Fed] just bury the losses forever?” I’ve been struggling w/this one too. On first glance it looks like they could. They can simply print money to monetize debt purchases (and if need be, to cover losses), right? However, the creation of money (for the Fed) is the creation of a liability. So when they purchase bonds with newly created money (usually bank reserves), they create assets and liabilities equally and the Fed’s Balance Sheet grows.
Then the assets fluctuate in value, adding to or subtracting from the Fed’s capital (yes, it has capital just like an ordinary bank). In a rising interest rate environment, those asset values fall. When the Fed’s capital account is depleted, then what? They can’t just paper over it with more money creation in the form of either currency or bank reserves because issuing, what would be for them, more liabilities is not the same thing as raising capital. Can they dun their 4,000 member banks for an additional capital infusion? And should the Fed become insolvent, what then of the dollar and its familiar manifestation in the form of Federal Reserve notes? Is that game over, or do they have a reset button?
PS You can bet in that trillion dollars of MBS they're holding, there's at least 5% that aint coming back no matter how long the Fed holds them. Hmmm, Fed capital is about $50billion.
In terms of assets and liabilities, the Fed can always issue more liabilities (money) that can't be paid back. If the value of assets at the Fed fell to zero, the Fed would issue more liabilities to buy more assets. The amount of liabilities has long outrun the amount of assets at the Fed. As long as someone will take liabilities from the Fed in payment for assets, it may be technically bankrupt but nothing will change -- it is the people holding liabilities from the Fed who are holding the bag with an 'asset' that has no inherent value and inherently yields no return. Every dollar in your pocket, while technically a liability for the Fed, is really just a promise to pay you... nothing.
every dollar in your pocket is a liability you owe to them. since there is no collateral behind any of this. The Prechter explanation to the monetization process, the Fed operates as the middleman, offering banks reserves (which in the fractional reserve system as nearly infinite) against Bonds the Treasury issues, but no collateral is served up. So lately the Fed is trying to mop up some of this excess, since banks aren't lending anyway. BOJ went so far as to place money in MM accounts. Their zombie banks system being well acknowledged.
Should the Feds balance sheet be permanently impaired, no doubt the bonds would be cancelled, sent back to Treasury, and the Treasury would have to either reduce the money supply, create inflation, (good thing, right?) or print new bonds and roll them over, which is what California did a few years ago, refinance the debt at longer terms probably, because that is what the market will accept, since Fed/UST is the biggest player and control the market through supply. If that happens we'll have 50 and 100 yr bonds, at near zero interest. Just like Japan.
Presto Chango!
Bernanke's a magician who can turn tungsten into gold!
How dare you raise such an inquisition of him!
*I think they just pass the losses onto the sucke....err...taxpayers, if you catch my drift. So, they don't bury "THE" losses forever, but they do bury "THEIR" losses forever.
Hey look everyone! A North Korea and a Bristol Palin!
Now THAT'S what I call Dancing with the Stars!
That's what china does. Fed meet china
Can't lose on bond if you hold to maturity (assuming no default)
Ever heard of 'Inflation'?
Hey bonds! Meet bloodbath!
TBT TLT
Nearly a 6% move today. You don't see that too often.
And now?
Let's get yields up there with Portugal folks.
Just what we need.
3.14 %
Fed= :))))))))))))))
In the immortal words of Scooby-Doo: Ruh-roh!
Beware this bond move could cut PM prices off at the knees
Everything diving to its true value! -0-
Yikes. Look at silver! VERTICAL! (down)
I said it Sunday, The Bernank's little CBS show betrays his pre-concscious feeling that he is losing control of the situation. This bond selloff is a reflection of loss of confidence since Bernank and others still insist that DEflation is the imminent risk (and they will continue to be blind until the day they recognize that Biflation is a legitimate disease, created by their policies)
They know it already.
Wait until gas is $15/gallon and a McMansion costs $50,000.
I'd buy a McMansion for $50K
Or 5 ounces of gold, which ever comes first.
Biflation bitchez!
Its those damn Exomatrix talking bears again!! 100% that shit, Bernank!
can someone comment on silver
fraud...no need to expound...
yes, I already know that much. wish i had money to buy the dip
Read this blog carefully every day:
http://jessescrossroadscafe.blogspot.com/
Why is ZHers always see fraud when AG goes down, but nothing but purity and justice when AG goes up?
Here is your explanation...if interest rates are going higher, than PMs should go down, as you don't earn any interest from a PM. Low, low nominal interest rates and negative real interest rates work well for PMs, but if interest rates are eventually headed for double digits, as I believe, PMs are going to get massacred.
It really depends on just how hard you think Bernanke is going to fight to keep IRs low.
"Why is ZHers always see fraud when AG goes down, but nothing but purity and justice when AG goes up?"
because markets and or assests which divorce themselves from irrefutable economic axioms, specifically supply/demand thus genuine price (value!!!) can not be geunine or logically explained minus artificial influence....hope that helped
If interest rates hit double digits, there is no way in hell we can service our debt and ZERO way that mountain of HY can roll over starting in 2014......baring MASSIVE inflation. Pretty much, the jig would be up.....We all better hope he can keep kicking that can down the road .
shit - there's no way we can service it at even 5%......no, wait, Bernank's on the phone...wait...oh, OK - he assures me it's 100% just fine, no prob
It doesn't need to go to double digits, we can't service the debt now
Interest Rates at double digits without any austerity measures will equate to Federal/State/Local Government DEFAULT, which wil destroy the value of the US Dollar, and hence put Gold/Silver pass the Moon, somewhere near Pluto, the ex-planet.
This is where I think everyone is wrong. I don't think it destroys the value of the dollar. I think it destroys the value of dollar-denominated assets.
Those are two very different things. It means cash is king, and everything is an asset waiting for a bid from that cash.
SpeakerFTD, even suggesting that interest rates could be taken to double-digit values under the current federal fiscal regime without resulting in complete monetary and financial collapse due to the massive (and ballooning) US federal deficit puts your credibility somewhere very close to Uranus.
I think you will see a collapse. In asset prices. As everything is indexed in one way or another of the underlying IRs.
But as each of that assets is liquidated, it's shadow value (M3) disappears, but it's liquidation require actual cash (M2). There is no nearly enough M2 to handle an M3 liquidation. So, actual cash should be king, just like the Great Depression, when eventually assets were trading for pennies on their peak dollar value.
i think you're confusing price with value. here's an article that articulates it better than i could.
http://fofoa.blogspot.com/2010/12/value-of-gold.html
here's an exerpt
Akak,
Correct, the current federal fiscal regime will not "take" IR's to double digits, but double digits will come nevertheless. TPTB know they can't perpetuate this forever, they kicked the can to buy some time to position themselves appropriately. It should be a very interesting 12-24 months. BTW, my city gov just laid off ~10% of the work force then turned around and bought land for a public park b/c it was just a steal at these prices. Wonder how those fire(d)men feel.
http://tfmetalsreport.blogspot.com
thanks for putting that up!
Look. We are going to hit a point in this game where they will bluff.
They will jack up rates, they will crash gold and silver. They instantly dejack interest rates.
This bluff is called we are rich again and we are sharing the wealth. This bluff was pulled in the 30's. When they dejacked the rates after jacking them twice. It was a punch in the vagina and set off great depression part 2 as everyone jumped back out of the fail boat and back into PM's with a frickin vengeance.
how soon do you think we could see that?
Theft mechanics of the depression says 2 to 3 years in. You run the ponzi too long you have to steal too much and it becomes to blatant. This is going the same way. They didn't steal enough during the 80's recession. They barely got any loot during the dot com crash and they have to steal a fuck load to be back in charge and back in make an offering to the king/temple and he will share his wealth with you mode.
They can't create fuck for jobs because their silly asses are broke. They can't steal much money because it requires about a 4X inflation spike which people won't accept. They can't even hook enough movie stars on heroine to make enough.
I fully expect to see the spike in interest rates late this month heavy in january with a just fucking kidding pullback towards 0 interest rate policy by the end of january. With a very focuses very determined grab gold and silver and copper population up in their face all next year. Around 11/11/11 it will become painfully and brutally obvious that they aren't going to be able to steal it back.
Yep. Buy the dips..
I think the correct phrase is "Buy the dips you idiot." I heard on TeeVee.
my comments on silver is that i'm pretty sure i didn't lose anything. i didn't bother to count them but the box is still stuffed full. i managed to make it to my dealer before he closed and when i got home i crammed another 126 oz in. i think i need a bigger safe.
thank you jpm
I'm with you, none of my physical disappeared either.
AND NEITHER DID ANY OF MY PURCHASING POWER WITH IT.
This is often ignored by many people, but the purchasing power of a zero counter-party risk asset remains mostly constant.
Sure, the fiat price of my silver went down, but so did other things, oil specifically.
Silver is all explained if you look at a 10 year chart. The upper boundary of the trend was reached yesterday which is a signal for profit-taking and short selling. The trend relies on fundamentals, reflecting silver once again being recognised as money, however, because of its vulnerability to the weight of money (on the short side provided by the bullion banks) it is a volatile trade.
There are a number of excellent blogs.
Harvey Organ, Jim Sinclair and the latest and greatest, our own Turd Ferguson's Along the Watchtower.
no worries, the metals are going much higher and the sheep will not participate
the people who will make the big coin are the very smart money and a seedy band of gold bugs
I am proud to be part of that band
and the definition of smart money in Decmber 2010 is gold hoarders and agricultural land owners
i notice this fall the price take downs are very short lived
am raising cash for any big move down next year, because after that this shit goes to the moon Alice!
Ho She Bang is shakin'...
Bang Dae Ho, also...
Don't forget about Hung Lo.
"Not this again."
-Bang Dat Ho
Maria is confused. Dow up 8 points and "for some reason, the market is seeming to lose it."
Yes sweetie, your equity bulls are being skullf*cked by BOND VIGILANTES!!!!
LTNS boys, about time y'all showed up to the party.
While yes its normally true steeper is better for banks, take a look at the belly
Well. At this writing it looks like Mister Market is modestly to quite modestly displeased with Mister Tyz. And they've been getting along so well of late, too. Pity, that.
Modesty is the best policy.
I keep saying, Mr market died in March 09. Maybe he's been revived just like Ben is working on reviving AIG. "It is alive!!!!"
100% certainty all wheels falling off of everything! Monetize that, Bernank.
heh, heh, at least we know they've
given up on any housing revival.
Fug it, says the bernank.
Luzer; I told you 6 months ago to go long lug nuts. Now the wheels are falling off bet you wish you had. I'm so fucking in the money right now I might have an aortic aneurysm from the sheer pleasure.
God but I need a whore right now.
/sarc <---- um do I really need this? seriously?
In a world of Universal Deceit, clarifying the intent of electronic communication via the use of tags -- couldn't hurt too much...
Oh good. I was worried I would look like a dork for tagging. People get so touchy around here, you know?
Just don't blame us if you can't read your monitor through all the spray paint! :>D
BUT, but, but i thought you said to wait till the nuts fell off!
No no it was specifically trade lower if the nutz break resistance on a head and shoulder deep throat cluster with a 1.6 fib retracement against the wheels falling off. See my blog.
Look, if you can't do basic clusterfuck technical analysis then go back to trading the VIX.
+1
love ZH
Bill
ITS A BULL SHEEPENER!
Market to Obama "Keep the tax cuts or we're gonna sell...you better keep 'em...we mean it..we're gonna dump our holdings....we've got our finger on the 'Sell Everything Button" and gonna tank the market...you better hurry"
Obama to Market "Alright, alright...here's your fucking tax cuts."
Market to Obama "Thanks Dumbass. We were going to sell anyway...now we get to sell and keep our tax cuts. But just for you, we'll kick PM in the nuts on the way out the door"
LOL, great post.
3 reprice's today at our bank. Full Moon Rising!
hee heee dumb and dumber
And just like that, all solidly built certain FED long term policies get their doors blown off in a half hour.
I am 100% certain of this.
perhaps this is just the markets reaction the tax cut deal, BABs is not going through, rates will find a more natural level. just trying to be rational.
'Tax cut deal' was yesterday mornings news though, why 48 hours later? Also, no taxes were cut, just $5 trillion in debt added, that was immediately deemed 'no big deal' of course but hey $5 trillion here, $5 trillion there and soon youre talkin about some real money!
All this so we can raise our spending limits before the new crowd gets into congress.
HEY BERNANK:
DID YOU KNOW YOU SHAVED YOUR BEARD?
Ben B. pulls a Brittney and shaves it all? That would definitely get me to turn the Television on.
Be even better if the Bernank glued all the clippings onto the top of his head -- look ma, a Chia pet!! :>D