Chart Of The Day: Deja Boo

Tyler Durden's picture

As an update to our comment last week on the three 'F's of US fiscal-policy-making; it seems we are following the path of last year's debt-ceiling debacle ever more closely. Once again - do we need a 20% drop in US equities to spur the politicians into action? As they try and wedge a square peg of higher taxes into a round peg or spending cuts, we suspect so...



Chart: Bloomberg

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JPM Hater001's picture

"do we need a 20% drop in US equities to spur the politicians into action?"

Let's hope.  I'd even be ok with a 50% drop.

idea_hamster's picture

You know, I was gonig to make some comment about how TD had messed up the metaphor by saying the people dealing with the fiscal cliff were trying to fit a square peg into a[nother] round peg, rather than a round hole.

But really, looking at the jackass-ery going on in DC, that really may be the best description.

French Frog's picture

Looks like your chart is upside down; markets still going up


Mr Lennon Hendrix's picture

I hope AAPL goes there.  It would be funny to watch the liberals squirm that their number one money maker (after their homes) is going up in flames.

You know it is funny.  The liberals have Chief Seattle posters on the walls of their houses that say "The earth does not belong to us, we belong to earth" but they think about those houses as assets and that "their" land is super sacred to them.

They will die and they will be buried elsewhere.  Their kids will sell the land to the next duchebag.  And the cycle will go on.

TruthInSunshine's picture

Who will stand in for Hank "As The Former CEO Of Goldman Sachs, Let Me Warn That There Will Be Tanks In The Streets & Martial Law If Wall Street & My Bankster Buddies Don't Get a Blank Check Within 24 Hours" Paulson this time?

Inthemix96's picture

Dont do that mate, dont spur the fucking lunatics at all.  Everything they touch ends up fucked.

They are either criminal, or they are criminally insane, one or the other.

HD's picture

Goldman promised 1250 on the S&P...and we all know how often that works out for the muppets.

101 years and counting's picture

to tylers:  the US markets dropped AFTER the debt ceiling was increased last yr.  not before.  look at the calendar.

Village Smithy's picture

The debt ceiling increase on July 31st caused the credit rating downgrade August 5th. Then Geronimo.

101 years and counting's picture

look at aug 3 & 4th last yr.  before the US was even downgraded.

Village Smithy's picture

Do you really think that GS, JPM et al didn't know the downgrade was coming?

fwchiro's picture

So this is bullish?  /sarc off

the not so mighty maximiza's picture

Put your helmets on , we are crashing through that ceiling.

SheepDog-One's picture

He be 3rd year collidge strudent KEEP OBAMA PRESDENT!! OBAMAPHONE!

Mr Lennon Hendrix's picture

Looks like we know when the Senate will sell out of their positions and reinvest into the market then.

Bay of Pigs's picture

Goldman already advised them on the latest takedown in gold too. They'll be BTFD on that one as well.

Next to the Wall St banksters, the US Senate just might be the most corrupt institution on the planet these days.

Mr Lennon Hendrix's picture

Luckily for us they are probably using GLD.

SheepDog-One's picture

The thing is, good luck recovering 20% after losing 20% in todays markets....already nervous holders of equities and funds would mash the sell buttons if they drop it, and never come back either. Its like trying to hold them hostage with a double barrel hair trigger shit machinegun, and the barrel is pointed right at their own heads.

Double Barrel Shit Machine Gun - YouTube

Cognitive Dissonance's picture

Peak panic is still a long way off. And I ain't talking fiscal cliff panic or even debt ceiling.

<This is just pre-panic.>

wagthetails's picture

Agreed.  as much as i know this will fall apart, i'm frankly honest of the amoutn of people cheering fro an utter collapse.  they must be all self sufficient farmers with excess funds to trade in the market. 

helping_friendly_book's picture

I've been holding the SPXU. The rest in cash. That's why I cheer when I see a drop. 

Some people are short.

john_connor's picture

Or 1.62 * 20% = roughly 32% drop for a nice fibonacci scale-up

mess nonster's picture

The fiscal cliff is shuffling the money around in your wallet when the gas gauge says "empty".

Bottom line, going off the cliff is in everyone's best interests in Washington. This is an economic false flag. 

Dr. Engali's picture

Three topics that I''m sick of hearing about ...Greece, the fiscal cliff , and the debt ceiling. I wish Greece would default...we would drive off the cliff....and we would let the "market"determine the debt ceilng.

helping_friendly_book's picture

Greece defaulted last Summer. Where were you?

They gave everyone a "voluntary" haircut of 50% and extended maturities if I recall.


Schmuck Raker's picture

I urge you to seek counseling.

NoDebt's picture

Remember guys, the fundamentals don't matter any more.  We have solved the "gravity" problem once and for all.  It won't matter if we go off the fiscal cliff because the issue will at least be RESOLVED.  Good, bad, doesn't matter.  Just resolve it and fire up the printing presses.

Compare that to Europe where they have aready resolved their problems.  How's that?  Well, Greece, Spain, etc. has already been resolved by resolving to not resolve it (endless can-kicking).  That's why Europe is fixed right now, the Euro is soaring and we're drifting lower.

When you let go of sanity it stops hurting and things make sense again.


earleflorida's picture

another buying opportunity,... the big boys could give a fuck-- easy to time the bottom on this laugh, even for mindless algos

if you want to get rich... just, go over the cliff, period!

...all the casino chips will be easy picking at the wells'p[l]ump bottom? 

Jam it in... and break the M`fucker off!


one_fell_swoop's picture


woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly

helping_friendly_book's picture

WTF? What chart is that? Doesn't appear to be the S&P 500?

You could, at least, label the source of the chart.