Tyler Durden's picture


Finally, the market realizes that it was the patsy all along. This is what a real cliff looks like:

Of course, none of this news to any of our readers. From November 13:

Once again, it will be up to the market, just like last August, just like October of 2008, to implode and to shock Congress into awakening and coming up with a compromise of sorts.

But please listen to all those "expert" political journalists, reporters and pundits, who said all is well and not to worry about anything. After all they had pretty slideshows and lots of clickbait to make you believe they know stuff

The good news: ES can only drop 5%, or limit down, on Sunday night when the market gets more of the same.

The better news: SPY is open late tonight, long after ES closes.


And it is different this time (from the debt ceiling debate of last year) as investorsd have been herded into risk assets en masse by an over-zealous Fed head...


Where it likely is not at all be different, is how much further the market will have to plunge to "extract" a deal from Congress... roughly another 15-20% lower. Which with a near record margin debt on the NYSE will become quite a sight to see.

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Fri, 12/28/2012 - 20:08 | 3103673 10044
10044's picture

you can sleep till 2017? 

Fri, 12/28/2012 - 20:16 | 3103695 michigan independant
michigan independant's picture

Yes, nothing to see here today. Animal farm players are excited today on the global plantation. Middle management bag holders have to make a decision? When the lead cannot be shot out at something then it's game on.


Fri, 12/28/2012 - 20:18 | 3103702 surf0766
surf0766's picture

What happens when "the market" realizes is cannot be fixed?

Fri, 12/28/2012 - 20:27 | 3103722 michigan independant
michigan independant's picture

Depends on the rate of change 

Fri, 12/28/2012 - 20:26 | 3103723 michigan independant
michigan independant's picture

Depends on the rate of change as to 8 billion or to 6 billion tax units for these political animals. Even the smart kids see this.

Fri, 12/28/2012 - 20:49 | 3103781 Goldenballs
Goldenballs's picture

Bailout Bonanza as usual,you know we are insolvent,we know we are insolvent however make us insolvent and all those CFSD,s come into play,we all know everything is insolvent unofficially but once officially insolvent then the whole world financial system is toast,basically we are bankers,we are too efficient to work and we do not give a shit so give us the bailout and we,ll be off then until next time.

Definition - Organized Crime Protection Racket.

Only answer is take the bastards down and take the cash back until this occurs your always up shit creek.

So Politico,s grow some balls before you learn to do the lampost shuffle without any rehearsals.

Fri, 12/28/2012 - 21:00 | 3103804 blunderdog
blunderdog's picture

"The market" can't realize anything, and the participants realized this can't be fixed years ago.  If you're patting yourself on the back about how smart you are right now, you're probably the sucker.

Fri, 12/28/2012 - 20:49 | 3103779 surf0766
surf0766's picture

The marxist/socialist have wanted this cliff since 1875. There will not be any deal.

Fri, 12/28/2012 - 21:07 | 3103815 I am a Man I am...
I am a Man I am Forty's picture

12,9xx is nothing, can will get kicked at last minute as we all know, dems and pukes acting all tough until last second compromise in order to "save" the economy.  They aren't going to let this market go anywhere.  Keep on wishing for doomsday scenario, not going to happen in this centrally planned world.  The printing press will remain fired up.

Fri, 12/28/2012 - 21:10 | 3103820 Racer
Racer's picture

yeah by 1 sec to midnight it will all be swimmingly beautiful again and the algos can go wild killer attack on shorts that dared

Fri, 12/28/2012 - 21:11 | 3103823 fiftybagger
fiftybagger's picture

Don't worry, CBS Marketwatch is all over it:

Stock futures turn higher after hours

By Carla Mozee, MarketWatch


1 comment:


Maybe you should pull this article. LOL


Sat, 12/29/2012 - 12:56 | 3104603 Money 4 Nothing
Money 4 Nothing's picture

It's not Monday yet..

Fri, 12/28/2012 - 21:16 | 3103834 Goldenballs
Goldenballs's picture

Even the Alien Space Lizards don,t bother with worthless Fiat Toilet paper,

Where did all of these stories come from? The earliest reference I've come across is from a Los Angeles Times news story from January 29, 1934, which is available from the Los Angeles Times archives. Geophysical mining engineer G. Warren Shufelt had been using "radio x-ray" and had discovered subterranean labyrinths beneath the city of Los Angeles, including pockets of pure gold, and taken x-ray pictures of many of the chambers. Somehow Shufelt met with a man named L. Macklin, said to go by the Hopi Indian name of Little Chief Greenleaf. Macklin told Shufelt of a Hopi legend of Lizard People, an advanced race, who built the city beneath Los Angeles to escape surface catastrophes some 5000 years ago. Their history was kept on gold tablets. It sounded like Shufelt had struck paydirt — almost. He still had to dig it up. Shufelt's crew dug a shaft 250 feet deep, well below the water table, which of course promptly filled with water, and that's where the story came to an end.

Wonder if there is a series of Tunnels from The Fed and Fort Knox.

Fri, 12/28/2012 - 22:39 | 3104008 Almost Solvent
Almost Solvent's picture

Too bad they didn't use pumps to keep the shafts dry.

Maybe I'll swing out to LA with my sump-pump and backhoe . . .

Fri, 12/28/2012 - 21:30 | 3103856 devo
devo's picture

Dow will break 14,000 on Monday lol

Fri, 12/28/2012 - 21:34 | 3103861 Rathmullan
Rathmullan's picture

Come on, this was the cheap way for the primary stealers to send a message to dc. What did this  move in "minis" cost 'em? blankfeins annual helicopter expense?

Fri, 12/28/2012 - 21:51 | 3103902 Goldenballs
Fri, 12/28/2012 - 22:52 | 3104026 Grand Supercycle
Grand Supercycle's picture

Wile E. Coyote...

Reminder ~ the Wile E. Coyote scenario awaits – no matter what eventuates with the fiscal cliff.

Fri, 12/28/2012 - 22:52 | 3104027 Threethreethree
Threethreethree's picture

The stage is set.

Obama will parade around all weekend saying he feels a deal will be made (a deal that does not raise taxes on the middle class).

He will have the senate vote on a deal that will be passed over the weekend. It will be a party line vote. There will be no Obama concessions in that plan.

The media will Rave about the Obama/Senate plan.

It will be presented to the House.

The House will reject it.

The "right wing" will be blamed, with the tea party bearing the brunt of that blame.

The market will fall. Taxes will go up. Fear will be rampant.

Than Obama will "not let a good crisis go to waste" (Rahmism).

He will "hang" the Republicans in the court of public opinion and the media will be a willing participant.

A simple, and well planned, consolidation of power.


Sat, 12/29/2012 - 00:10 | 3104149 Ookspay
Ookspay's picture

Yep, you nailed it.

Sat, 12/29/2012 - 00:12 | 3104150 Ookspay
Ookspay's picture



Sat, 12/29/2012 - 07:31 | 3104359 hooligan2009
hooligan2009's picture

remember, the sequestrations and tax increases are part of the solution..not the problem.

the correct perspective is that trillion dollar a year deficits are the fiscal cliff...handing out/extending tax cuts and pork barrel spending embedded in the current fiscal position are part of the problem

any deal to reinstate tax cuts and carry on with existing spending plans accelerates the move to CCC rating..then of course D (selective or otherwise)

Sat, 12/29/2012 - 09:04 | 3104401 S5936
S5936's picture

+1 on that & the imbeciles while swallow it hook , line and sinker

Sat, 12/29/2012 - 00:11 | 3104151 Mike Cowan
Mike Cowan's picture

Don't over think this situation. Sell.

Sat, 12/29/2012 - 00:47 | 3104184 helping_friendl...
helping_friendly_book's picture

It is about time this farce collasped. Sorry about your 401k. I put all mine in MM and I hope it doesn't break the buck.

I have been short the S&P 500 for ovet 16 month's....since QE2 was announced......getting my face ripped off....I know the end is near I just don't know the fractal dimension exponent.

I wish I would have known about fractal series when I was in University.....could could have studied something relevant.

Sat, 12/29/2012 - 01:10 | 3104200 thedrickster
thedrickster's picture


Sat, 12/29/2012 - 01:13 | 3104201 The Heart
The Heart's picture

Not really knowing or caring about anything related to markets and the money changer business other than what one can learn here, and thank you all for being such good teachers and way-showers, but there is one thing that pics the interest mode so these questions beg to be answered please.

What was it like during World War Two in the stock markets and other related assorted money changer and commodities rackets? Is there by chance anyone here that can speak from experience, and relate to the two time periods, and any differences between then and now?

One has to suppose that the entire city, er state could get blown off the map at any time during such a world war, so, would that matter?

Thank you in advance for your education and experienced answers should anyone offer up some Light on this.


Sat, 12/29/2012 - 02:05 | 3104237 pfairley
pfairley's picture

WW2 had QE from the Fed, & increasing taxes on everyone; corporations even had an 'excess profits tax'.  BUT increasing wages vs declining wages now...and a 25% savings rate then vs low savings now. These savings were said to kick start USA out of 1946 recession and hi unemployment from returning soldiers.  The nation during WW2 generally had a 'pay as u go' spirit....vs make only the rich pay as we get more entitlements now.  31% of USA did not have running water during WW2...but perhaps complained and begged less and was more willing to work.

Sat, 12/29/2012 - 02:09 | 3104239 IridiumRebel
IridiumRebel's picture


You must be missing a decimal. If not my head will burst.

Sat, 12/29/2012 - 03:07 | 3104259 alfbell
alfbell's picture

The USD will still be good for a long time. Best to stay in cash and keep amassing more and more cash and down the road transfer it all into tangible hard assets (farm land, income properties, etc. but not gold because when the time comes it will be confiscated and repriced).

The deflationary forces, de-leveraging, defaults, diminished consumerism, asset values dropping, etc. will balance out the supposed inflation and the dollar won't be debased quickly and lose purchasing power.

Under the guise of reducing unemployment and boosting exports, Bernanke is pushing ZIRP and his monetary policies, but that is to create more expensive imports (inflation) in an attempt to get people to buy and consume now because "prices are going up" so he can kick start the velocity of money.

No velocity of money for a long time. I'm making my cash make more cash through lending and making my businesses earn and amass lots of cash. Down the road... farm land and income property.

Sat, 12/29/2012 - 03:08 | 3104260 dark pools of soros
dark pools of soros's picture

Ben hasn't stopped printing.. so BTFD

Sat, 12/29/2012 - 03:38 | 3104276 metalismoney
metalismoney's picture

Sp 500 knocking on 200dma.

As a retired institutional trader, this is the make or break point.

If you look at the last time the sp 500 was at this price while at the 200 dma was

june 2007. The Bernak cant lower rates, throwing money at it clearly has been exhausted.

There is a reason there is a term Bear and bull. Somehow the oligarchy cant accept that fact.


Sat, 12/29/2012 - 04:16 | 3104291 MRSAP
MRSAP's picture

It's all just theater. Somehow will agree. And if not, perhaps, not a bad fall a "saving" of these wind flag or the word "consolidate" again.

Sat, 12/29/2012 - 07:33 | 3104361 hooligan2009
hooligan2009's picture

agreeing to go deeper into debt (beyond broke) by extending the "living beyond means" philosophy that goes for mobocracy is not is fraud..

Sat, 12/29/2012 - 08:05 | 3104375 slackrabbit
slackrabbit's picture

(mean while in congress)

Boner: Cmon boys, pray to Ben

Congress : QE5 QE5 QE5

Sat, 12/29/2012 - 08:14 | 3104377 I am Jobe
I am Jobe's picture

QE6, QE7 QE to Infinity.

Bend Over and swallow cum is what Congress and the Whorehouse telling the great voters of Amerika.


Sat, 12/29/2012 - 08:47 | 3104393 dcb
dcb's picture

I re did a bit of s and sp purchase right before the close, still have my shorts that have been up for 2 weeks now. it we gap down bit on mondays open, by the chart we shall cover most of that gap to the upside on moday.

also my program is showing markets open tuesday (new years? )

Sat, 12/29/2012 - 09:55 | 3104432 Dan The Man
Dan The Man's picture

watch out for the bull cross...coming soon...hehe

Sat, 12/29/2012 - 10:26 | 3104446 Frankie Cokeupt...
Frankie Cokeupthenozza's picture

Had to try out this new avartar. Apologizes in advance.

Sat, 12/29/2012 - 11:08 | 3104475 Ned Zeppelin
Ned Zeppelin's picture

For House Republicans this is simple:

Pre- Dec. 31 "Tax Increase"

Post Dec 31 "Tax Cut"


Sat, 12/29/2012 - 11:10 | 3104476 Lost Wages
Lost Wages's picture

Market prolapse imminent.

Sat, 12/29/2012 - 11:20 | 3104479 retiringteach
retiringteach's picture



Sat, 12/29/2012 - 12:22 | 3104539 Brokenarrow
Brokenarrow's picture

Few have lost as much money as me shorting this market.


But, everytime zh comes out with a piece, like this, the market rallies 4% and kicks me in the balls.


I wont be selling this market mon. either. Benny the ball can print a lot of cash out of thin air and buy the e minis with impunity all day long. And, I guarentee you: he is not ready to give up quite yet.


AFraid to be long. AFraid to be short.

Sat, 12/29/2012 - 14:37 | 3104826 MsCreant
MsCreant's picture

Then get out, friend. Don't play the game. 

Sat, 12/29/2012 - 14:11 | 3104759 Mad Muppet
Mad Muppet's picture

WHEEEEEE! I allus loved a slide, ever since I was a kid.

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