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Market Slams Higher As Corker Repeats Yesterday's Talking Points

Tyler Durden's picture




 

S&P 500 futures (ES) jumped higher this morning, retracing a perfect 61.8% of the Friday afternoon plunge on the reiteration by Senator Corker (and perhaps some remarkably obsequious comments by Van Hollen - who has been so trustworthy in the past).

"I would bet my life that over the next very short period of time (that) 98 to 99% of people in the country are going to be rescued," Corker told CNN Chief Political Correspondent Candy Crowley.

The algos trading the futures, naturally, buy it hook, line and sinker. Only problem is this is from yesterday just as everyone was "cautiously optimistic" a deal would come from the Senate later that night, which... never happened. But hey: algos don't care about details. The bad news for Corker's numerous Wall Street sponsors is that his life may now well be forfeit should there be no deal in 15 hours, and all this "cautious optimism" was for nothing.

The initial ES ramp was a stop-run and then the algos switched to EUR to try and lever the ramp - it failed.

S&P 500 futures (ES)

 

EURUSD...ramp started later (not simultaneous with ES)

 

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Mon, 12/31/2012 - 10:16 | 3108690 fonzannoon
fonzannoon's picture

that was just a test to make sure rumors still worked. all is well. 

Mon, 12/31/2012 - 10:19 | 3108697 espirit
espirit's picture

Yep.  Johnny 5 algo up and running.

Mon, 12/31/2012 - 10:26 | 3108733 Pool Shark
Pool Shark's picture

"Open the pod bay doors, Hal."

Mon, 12/31/2012 - 10:42 | 3108782 camaro68ss
camaro68ss's picture

I got up today happy, thinking there would be a bloodbath in the market, nope. still the same ol reach around

Mon, 12/31/2012 - 11:01 | 3108841 Manthong
Manthong's picture

So what numeric value does an algo assign to “bet my life” coming from a shill politician when doing the transform for that news feed?

Mon, 12/31/2012 - 10:31 | 3108750 The trend is yo...
The trend is your friend's picture

corker: We'll shoot  few bazookas at the hull and then recue 98 to 99 % of you

Mon, 12/31/2012 - 10:18 | 3108693 EmmittFitzhume
EmmittFitzhume's picture

He's going to bet his life?  That's wonderful.  One senator down. 99 more to go

Mon, 12/31/2012 - 10:18 | 3108694 Cursive
Cursive's picture

I would really, really like him to pay up on this bet, assuming that a short period of time is at most a week.

Mon, 12/31/2012 - 10:20 | 3108702 Zer0head
Zer0head's picture

imagine if you had easy access to the American media and the ability to frontrun with impunity

 

Mon, 12/31/2012 - 10:21 | 3108703 azzhatter
azzhatter's picture

Corker is a smooth talking piece of shit. Biggest requirement to be a politician

Mon, 12/31/2012 - 15:08 | 3109961 WillyGroper
WillyGroper's picture

I didn't see a smooth talker as he questioned his God Jamie Dimon. 

I saw a bootlicking POS.

Mon, 12/31/2012 - 10:21 | 3108704 TheLooza
TheLooza's picture

Pffft. I got lucky and sold a fuckload of iwm shares i got assigned over the weekend thanksyou. Fade the fucking rally.

Mon, 12/31/2012 - 10:22 | 3108706 Dr. Engali
Dr. Engali's picture

98 to 99% of people are going to be rescued? Who in the fuck does that arrogant prick think he is? You want to rescue America you fucker?... Take yourself and the rest of Washington straight to China! Get your fascist fucking asses out of our lives!

Mon, 12/31/2012 - 10:30 | 3108744 TotalCarp
TotalCarp's picture

I particularly like the term "rescued". As in force fed another load of debt to pay off military industrial complex.

Mon, 12/31/2012 - 11:29 | 3108924 surf0766
surf0766's picture

And the welfare state debt

Mon, 12/31/2012 - 12:05 | 3109039 derek_vineyard
derek_vineyard's picture

someone take engali's guns away from him !!!!

Mon, 12/31/2012 - 11:19 | 3108898 supersajin
supersajin's picture

How do you “rescue” a people who you placed in harms way? Kinds sounds like Obama’s plea..”it could’ve always been worse”

Mon, 12/31/2012 - 10:21 | 3108707 fonzannoon
fonzannoon's picture

"Look at the futures, what a crazy wild ride....stay tuned...looks like we are going to open FLAT"

sincerely,

tv

Mon, 12/31/2012 - 10:22 | 3108710 rubearish10
rubearish10's picture

I see no reason not to believe him. Afterall, you could make money on it! <sarc>

Mon, 12/31/2012 - 10:22 | 3108716 TheSilverJournal
TheSilverJournal's picture

Save us government save us!!

The notion that government can rescue the people is nonsense. Government has no resources. GOVERNMENT GETS ITS RESOURCES BY FIRST TAKING IT FROM THE PEOPLE.

Mon, 12/31/2012 - 10:33 | 3108756 grid-b-gone
grid-b-gone's picture

Exactly, and the corollary to Corker's statement is, "We believe only 1 or 2 percent of citizens do not require direct intervention by the Senate into their personal affairs."

Mon, 12/31/2012 - 12:04 | 3109037 Renewable Life
Renewable Life's picture

Ya that's "the theory" isn't it, but you've obviously never spent much time "inside" the government military complex have you??? To say those fuckers don't have "resources" would be insane!! They have trillions of dollars in bullets, guns, tanks, drones, fighter jets, aircraft carriers, land, etc!!

It doesn't much matter if the money you used to buy your resources was "confiscated", stolen, or earned honestly, when you have possession, you own it!!! The US Government HAS resources, brother, don't fool yourself into believing anything else!!

Mon, 12/31/2012 - 10:25 | 3108719 Albertarocks
Albertarocks's picture

That's pretty darned generous of the good senator.  He's only 60.  And to think he's willing to give up another... what, 20 years?... just to put some more bullshit spin on an already ridiculous political farce and media circus.  All of it as per the instructions issued in the Goldman playbook.  Shameful as hell.

Mon, 12/31/2012 - 10:25 | 3108729 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

You forgot to put in another arrow at approximately 6:30 AM EDT when Corker went long in the futures market.

Mon, 12/31/2012 - 10:26 | 3108732 Rip van Wrinkle
Rip van Wrinkle's picture
Market Slams Higher As Corker Repeats Yesterday's Talking Points Market Slams Higher As Kevin Buys S&P Futures

 

There, fixed it for ya.

Mon, 12/31/2012 - 10:26 | 3108734 crawl
crawl's picture

Corker is leading the way for US politicians to act more like their European counterparts.  Say anything to prop the markets, wait for slip in markets, repeat as necessary.  No action needed while words prop up the markets.

But it's fun to see the headline reading algos climb over each other to front run this thing we call a market.

Mon, 12/31/2012 - 10:28 | 3108740 Downtoolong
Downtoolong's picture

I would bet my life that over the next very short period of time (that) 98 to 99% of people in the country are going to be rescued

Such drama, such arrogance, such egos these people have. No matter what they decide, they aren't saving anyone but themselves and their Wall Street masters.

How do you become a poitical hero these days? Answer; create a catastrophe, have the Mainstream Media lap it up, then fix it in the eleventh hour.

 

Mon, 12/31/2012 - 11:11 | 3108870 MsCreant
MsCreant's picture

Up vote here if you like this comment like I did. Down vote too if you like. 

Mon, 12/31/2012 - 10:28 | 3108741 Racer
Racer's picture

Hmm, freudian slip methinks.. he states

99% of people are in NEED of rescue!

Mon, 12/31/2012 - 11:14 | 3108885 MsCreant
MsCreant's picture

I like this whole sociopathic set up: steal from the people, do what ever the fuck all you want to with their money, create a situation where you have not paid the goddamn bills and need to put it all on credit cards, then when you do find a new line of credit claim to be "rescuing the people."

I can't say here what I am really thinking. Let's just say I divorced a man who was doing the same thing with our personal finances, and not telling me, and leave it at that...

Mon, 12/31/2012 - 11:27 | 3108909 Ghordius
Ghordius's picture

did you know that lots of girls like sociopaths? did you know that we found out several HR companies in London specifically selected sociopaths for banking management jobs?

anyway, it looks from science that only 1% of the pop are sociopaths - but they can influence "mores" (morals) beyond their numbers, if allowed

it's not relevant what a criminal does - compared to the way society reacts to the deed

--------

edit: sorry to read about your personal situation, I hope my "flip" did not hurt

Mon, 12/31/2012 - 11:33 | 3108944 MsCreant
MsCreant's picture

I am in really good shape these days, that is why I can casually talk about it now and see the parallels so easily. I blindly trusted is the only thing I did wrong. It was years ago and a good lesson. He has gone bankrupt twice since the divorce. Me, I started getting out of debt the month he left (he left me with a lot of it) and I am debt free and will stay that way. 

Mon, 12/31/2012 - 12:33 | 3109140 QQQBall
QQQBall's picture

The system hates debt-free folks. Once you get rid of the debt and live below your means, it is very difficult to get drawn back into the matrix. Low IR = deperate attempt by the Matrix to keep people borrowing and to keep debtors aflot so they can service the debt. If they do "foregive everything" it will be interesting to see how many of the previously underwater borrowers start running up the debt anew.

Mon, 12/31/2012 - 10:29 | 3108743 DrDinkus
DrDinkus's picture

sitting long TSYs, short SPY...anybody with me? sanity check, no shot they get a deal done right boys? k good...trying to stay away from the noise...too early for a drink?

Mon, 12/31/2012 - 10:35 | 3108764 crawl
crawl's picture

Check those stops. Expect any hint or rumor of being rescued from the cliffy thing to cause disaster for shorts.

Mon, 12/31/2012 - 11:07 | 3108860 stormsailor
stormsailor's picture

put on a short at 1400.5 on the /es.   with a 5 point stop.  will probably get swept and drop like a rock.  my luck

Mon, 12/31/2012 - 10:33 | 3108758 Getting Old Sucks
Getting Old Sucks's picture

"I would bet my life that over the next very short period of time (that) 98 to 99% of people in the country are going to be rescued,"

 

Bet they told everyone on the Titanic the same thing before the ship went down.  Same, same, no?

Mon, 12/31/2012 - 10:39 | 3108771 yogibear
yogibear's picture

The bots take it up.

Have to end the year on an up note, can't let the 11% yearly gain slip away. 

Yearly bonuses are based on the performance and many on Wall Street spent the money already.

Mon, 12/31/2012 - 10:39 | 3108772 Brokenarrow
Brokenarrow's picture

Just like I posted yesterday, my dog, sds, and dia put positions? Toast! I was killin em this weekend:) 2013

Mon, 12/31/2012 - 10:41 | 3108779 SmoothCoolSmoke
SmoothCoolSmoke's picture

Corker is my Senator...I would not pee on him if he was on fire.

Mon, 12/31/2012 - 11:13 | 3108879 azzhatter
azzhatter's picture

I would if I could piss gasoline

Mon, 12/31/2012 - 10:43 | 3108785 caimen garou
caimen garou's picture

no loss for him when he is betting something that is worthless as the USD, Put some real money on the line, useless POS!

Mon, 12/31/2012 - 10:44 | 3108788 GMadScientist
GMadScientist's picture

You heard the man...put is head in the noose just in case.

Mon, 12/31/2012 - 10:45 | 3108791 marz929
marz929's picture

For all you guys in the Yen short trade, please read:

http://www.acting-man.com/?p=21108

 

Did anybody catch El Erian this AM on Squack? He says we need more infrastructure spending and more education spending! He says Congress is the real problem. I think he blamed Congress 3 or 4X. Never mentioned POTUS. Oh, BTW, did I fail to mention that he was appointed by Obama to something I think is called the Business Development Council. How convenient. I no longer believe anything I hear from anyone. Its all spin, manipulation and protecting one's own self interest at the expense of the country.

Mon, 12/31/2012 - 13:03 | 3109281 MyBrothersKeeper
MyBrothersKeeper's picture

I like El Erian but he does have a central bank background which makes me nervous about the PIMCO after Gross retires.

Mon, 12/31/2012 - 10:45 | 3108793 AlphaHunter001
AlphaHunter001's picture

 

they don't have to get a deal done today, as long as it gets done within the next month they can make it retro-active... which they will do.

 

neither side wants this to occur, hence the deal will get done... the question is how much is true structural long-term reforms and how much is a patch-work, short-term deal

 

if it's a true long-term deal, it's very bullish for the market and the US

Mon, 12/31/2012 - 11:23 | 3108905 MsCreant
MsCreant's picture

"the question is how much is true structural long-term reforms and how much is a patch-work, short-term deal"

There is no structural long term reform that can save this. There is nothing they can do. This is all theater. Let that soak into your bones to the marrow, let it sink into your guts, and saturate your cells. Let it run through your nervous system and become electricity jumping through your brain. I know I sound dramatic and you will probably dismiss me, but when I see comments like yours, I know I have to try. 

There is nothing they can do and they are lying to you. Get it?

Give up hope. Eviscerate it. Hope is the enemy.

Mon, 12/31/2012 - 11:52 | 3108997 AlphaHunter001
AlphaHunter001's picture

"There is no structural long term reform that can save this."

 

This is obviously a statement meant to shock and not based on realty. The truth is that it would not take much work to go from trillion dollar deficits to massive surpluses.

 

The US economy is almost a $16 trillion GDP, to produce surpluses would mean some adjustments in revenue and spending, but it's certainly very feasible. The question is will they make the long-term reforms that are necessary or just pander to voters

 

Mon, 12/31/2012 - 12:20 | 3109097 MsCreant
MsCreant's picture

The debt is too big to be repaid. You could tax everyone 100% of their wages and the debt could not be repaid. Reposted excerpts from 7/11, from another debt ceiling hike debate:

 

 

  • Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decresed on a year-over-year basis was 1960
  • 97% of today's funded debt has been accumulated since August 1971 - the end of the Bretton Woods era by Nixon, and the terminal delinking of all fiat currencies from any and all hard assets, ushered in the era of modern-day hyper-debt insolvency
  • The US government borrows 40-50 cents for every dollar it spends. A balanced budget would mean cutting government spending in half.
  • Implementing a balanced budget would not reduce current debt outstanding. It would merely stop it from growing.
  • Over the past three fiscal years US debt grew by over $1.5 trillion per year: this is more than three times the record annual debt increase in any previous year in US history
  • Last night deficit reduction targets were cut from $4 trillion to $2 trillion over the next decade, in exchange for a $2.4 trillion debt ceiling hike, which will last the Treasury until the next presidential election. Said otherwise, the Treasury needs to fund a $2.4 trillion hold over the next 15 months. Over a decade this come to $20 trillion: ten times more than the proposed deficit reduction.

And the most inconvenient truth of all:

The Global Financial Crisis (GFC) is said to have been precipitated by the Lehman failure in 2008 which froze inter-bank lending on a global basis and almost brought down the system. It is said to have been prevented by a massive and global increase in new money creation. In reality, had economic nature been left alone to take its course, there is a good chance that the world would be fast emerging from its financial black hole by now. At a minimum, most of the malinvestments would have been discounted to the point where they would no longer act as a dead weight on future savings and investment.

Economic “miracles” (so-called) have happened before. The US emerged from a deep recession in 1920-21 because the government and the central bank did NOT interfere. Germany emerged from the actual physical rubble of WW II for exactly the same reason. So, to a lesser extent, did Japan. In all these cases, debts which could not be repaid were not held on life support by central banks, they were written off. In all these cases, creditors took very severe “haircuts” indeed while many debtors literally had to start again from scratch. In all these cases, the LACK of government impediments or government largesse meant that a recovery took place in a much shorter time frame than would otherwise have been the case.

Economic distortions today are HUGELY bigger than they were then. That means that the recession will be deeper and the recovery phase possibly longer. But until it is allowed to begin, there is no way out.

 

http://www.zerohedge.com/article/several-inconvenient-truths-about-debt-...

 

Mon, 12/31/2012 - 13:01 | 3109276 MyBrothersKeeper
MyBrothersKeeper's picture

Amen

Mon, 12/31/2012 - 12:36 | 3109161 MyBrothersKeeper
MyBrothersKeeper's picture

It is possible but no way can it be accomplished on the revenue side....that's why the cliff is a total farce.  The deficit is 50% more than revenue.  How much of a tax hike would it take? Let's just say a 10% tax hike and 40% spending cuts.  10% higher take in tax revenue that only involved those over 250k...by using my rough math....would mean a 20% hike on those folks.  That's taking 20% more from the disposable income of the biggest spenders and job creators.  You don't think that will hurt GDP that's 70% reliant on consumer spending? Assuming the best and assuming it doesn't impact GDp....although it always does... than you've raised 250 B a year.

So now let's go to spending side. You are still 900 B short from balancing the budget and stopping the bleeding (ie adding to the deficit) even after increases taxes on the 2%. Even if you agreed to wipe out the budget deficit over 10 years you'd have to knock approx 100 B a year off spending...permanently!  By then you'd have a balanced budget but in the meantime you would have added 5.5 T in new debt. If a 1-1 deal was done it would require 250 M is spending cuts but we know that won't happen.

Here is how the wealth tax has worked in UK in it's first year:

“As taxes assume a leading role in U.S. policy debate ... the first receipts on a new wealth tax in the U.K. have brought disappointing results to British Treasury officials. ... Some observers, political conservatives among them, are taking the recent experience in the U.K., which last year raised its top rate on high income earners from 40% to 50%, as a demonstration of the ineffectiveness of a tax-the-rich policy.

“Britain’s Telegraph newspaper reported that the U.K. Treasury — in the first test of the wealth tax policy introduced last year — received 509 million pounds less for January than the same month in 2011. The Treasury had projected that monthly revenues would actually increase by more than 1 billion pounds.”

2 big issues:  You've just knocked 2% a year off GDP  with those 2 things... with the biggest jump coming by taking money out of the more efficient private sector and putting iut into the less efficient govt sector ( a 1-1 deal would take 3% off gdp from get go).  The 2013 GDP forecast is 1.5-2%.  So 2% off gdp effectively put the US in recession.  Again that is assuming there is no residual damage to gdp by taxation even though there always is as evidenced above in UK. Secondly, funding of national debt interest and entitlements was 250B in hole in fiscal 2012.  10,000 new people are added each DAY so your hole grows worse by the day (not to mention interest on debt grows by the day as well) and unfunded laibilities just passed 122 trillion. Finally, you have Obamacare and it's plethora of new taxes, regulation that is killing small business (limiting  credit etc).

Yes it can be fixed by structuring the economy for growth and cutting the government by 50%....but we are doing the opposite.  The "best" fix will require a lot of short term pain but it will put US on a path to solvency because capital would be returned to the more efficient private sector, which would create growth, jobs, more tax revenue etc.  But there is no political will to cut ANY spending....much less the 50% needed.  The whole debate is a bamboozlement exercise on those who can't do basic math.

Mon, 12/31/2012 - 13:37 | 3109398 AlphaHunter001
AlphaHunter001's picture

 

"It is possible but no way can it be accomplished on the revenue side....that's why the cliff is a total farce.  The deficit is 50% more than revenue."

 

I completely agree, spending needs to be cut. Total revenue for 2013 is estimated to be $5.6 trillion. Deficit around $1 trillion... I think it's very reasonble to cut some spending and raise some taxes to produce a surplus in the forseeable future

 

My question, how 'bad' was the economy in 1999-2001 when the US ran budget surpluses?

1998 $70 billion surplus nominal ($97 inflation adjusted)

1999 $125 billion surplus nominal ($173 inflation adjusted)

2000 $237 billion surplus nominal ($315 inflation adjusted)

2001 $127 billion surplus ($165 inflation adjusted)

 

I'm not suggesting it's easy , just that the possibility is certainly there and not 'impossible' as some would sugest

 

Mon, 12/31/2012 - 10:45 | 3108796 Threethreethree
Threethreethree's picture

Apple,

 

you must have it,

 

you must, you must,

 

you must have the Apple...

 

Please Eve, just one bite, and you shall have all you need.....

Mon, 12/31/2012 - 10:46 | 3108797 adr
adr's picture

maybe add more gasoline? Or maybe put him out and then light him up again.

Mon, 12/31/2012 - 10:49 | 3108803 Samsonov
Samsonov's picture

Corker?  Never 'eard of 'im.  A nobody, as his remarks that caused the market to "slam higher" had a 1 pt. affect on the S&P.

Barney Frank was just on CNBC, and he actually blamed the fiscal cliff crisis on the voters.  He stuttered and stammered as usual and flitted to something else almost immediately, but he basically said, "you voted for us, so it's your fault."

Mon, 12/31/2012 - 11:56 | 3109014 MyBrothersKeeper
MyBrothersKeeper's picture

Haa Ha....Or more recently the movie "Ted" where the bear convinces the guy at the party to allow the bear to use his fingers in the fast knife trick.  He stabs the guy in the hand and the guy is bleeding all over and freaks out.  Ted the bear says "you should have never trusted me, I'm on drugs!"

Mon, 12/31/2012 - 11:14 | 3108882 azzhatter
azzhatter's picture

that's not stuttering, it's hard to talk with a cock in your mouth

Mon, 12/31/2012 - 10:47 | 3108804 SheepDog-One
SheepDog-One's picture

Oh HOORAY! We're about to be 'RESCUED' by da gubment! WHEEEE everyone pop some corks!!

Mon, 12/31/2012 - 10:47 | 3108806 Threethreethree
Threethreethree's picture

All the worlds indeed a stage,

and we are merely players,

performers and portrayers...

Mon, 12/31/2012 - 10:50 | 3108817 SheepDog-One
SheepDog-One's picture

USA now just a big hostage situation....many suffering from Stockholm Syndrome.

Mon, 12/31/2012 - 10:53 | 3108826 insanelysane
insanelysane's picture

No one is suffering.  Who do you think has been buying weapons and ammos like crazy for the last few weeks?  Those weren't bought using EBT cards.  The makers are armed and the takers need to tread carefully or better yet, don't tread on us.

Mon, 12/31/2012 - 11:43 | 3108938 SheepDog-One
SheepDog-One's picture

You either mis-read my comment or dont know what Stockholm Syndrome is I guess.

See below for prime examples of what I'm talking about. 

Mon, 12/31/2012 - 10:50 | 3108820 Smuckers
Smuckers's picture

The US economy is one big teetering game of Jenga...and nobody wants to take their turn pulling on the next wooden brick.

 

Mon, 12/31/2012 - 10:51 | 3108821 yogibear
yogibear's picture

Delay spending cuts, then delay again in 2015.

LOL.

A QE to infinity Can kicking production.

Just like Japan.

Mon, 12/31/2012 - 11:43 | 3108962 SmoothCoolSmoke
SmoothCoolSmoke's picture

True.  But does everyone in Japan live in a cardboard box and eat cat food?   Hmmmmm. No. I'm not saying kicking the can is good....but it obviously can work for a very, very long time.

Mon, 12/31/2012 - 11:04 | 3108847 SuperDeDuper
SuperDeDuper's picture

Don't be stupid.  Short the market today.  Make millions. LOLZ

Mon, 12/31/2012 - 11:04 | 3108850 SmoothCoolSmoke
SmoothCoolSmoke's picture

F'n BTFDers win again.  Any doubt they would? Over the past 5 years, in terms of the markets, can-kicking has never failed to work.  Hate it all you want, but it has never failed to work.

Mon, 12/31/2012 - 11:36 | 3108951 SheepDog-One
SheepDog-One's picture

Well thats the illusion anyway, or if you're just a buyer of an 'index'....many have been wiped out over the same period on individual holdings where you say nothing has failed. Many things have.

Seeing the DOW and S&P and saying 'all is well there's no failure anyway' is what my previous comment on Stockholm Syndrome meant.

Mon, 12/31/2012 - 11:09 | 3108867 billybobtx
billybobtx's picture

So the 1.5% down bloodbath didn't continue?

Mon, 12/31/2012 - 11:39 | 3108955 SheepDog-One
SheepDog-One's picture

Yea the certain market drop that never happened..oh sorry, market 'correction' I meant.....because they dont give a fuck. And why should they? They OWN the indexes now and will do what they feel like.

Mon, 12/31/2012 - 11:47 | 3108976 LouisDega
LouisDega's picture

Looking at Market watch and seeing the indexes are green, I would have to say no

Mon, 12/31/2012 - 11:19 | 3108900 Aurora Ex Machina
Aurora Ex Machina's picture

Rescued by what exactly?

Mon, 12/31/2012 - 11:28 | 3108923 GoBadgers
GoBadgers's picture

More like rescued from what?

Mon, 12/31/2012 - 11:30 | 3108934 Aurora Ex Machina
Aurora Ex Machina's picture

Yes, I like that take better.

Mon, 12/31/2012 - 11:24 | 3108914 Sovereignbeing
Sovereignbeing's picture

Regardless of any deal that is cut and then celebrated as if they saved the world from disaster, the debt remains and continues to grow. No problems are fixed. They solved nothing.

Mon, 12/31/2012 - 11:38 | 3108954 SmoothCoolSmoke
SmoothCoolSmoke's picture

Have you learned nothing the past 5 years?

Greece - nothing fixed; Markets up.

Italy - nothing fixed; Markets up

Spain - nothing fixed: Markets up.

Mon, 12/31/2012 - 11:39 | 3108957 SheepDog-One
SheepDog-One's picture

And remember, all that matters is 'market indexes'!

Mon, 12/31/2012 - 11:54 | 3108983 SmoothCoolSmoke
SmoothCoolSmoke's picture

Sheep Dog, you are beginning to sound like someone who is more focused on the 4 unearned runs the TPTB gave up in the 7th inning..............on the way to winning the ballgame.

The scorboard is the DOW and TPTB know that.  Check the scoreboard. 

Mon, 12/31/2012 - 14:32 | 3109188 SheepDog-One
SheepDog-One's picture

They 'won' what? Didn't get jack fuck-all from me pal!

'The Scoreboard' to me shows same levels as 10 years ago....and someone 'won' something? This must be the Special Olympics.

Mon, 12/31/2012 - 11:50 | 3108988 MyBrothersKeeper
MyBrothersKeeper's picture

I would take it a step further to say all that matters is that the populace believes that everything is under control.  Rising stock indexes, manipulated data points are just fodder they point to so as to make you believe so.  Once the polulace believes that everything is not under control than they panic.  But reality is a trailor and most of the damage will have been done by the time the real truth comes out.  Just like 2008. So when the populace starts to believe that everything is not under control, the politicians/bankers rush out with a "plan" or "promise of a plan" to restore confidence.  This is why I said on Saturday a "deal" of some sort would be done....no matter how meaningless.  The VIX is already down 9% today.  As I also said Saturday, the big fly is Republican votes in the house.  If they can't get things through the house...you will see a real panic but I doubt that happens and probably caused those playing the game to short the VIX.

Mon, 12/31/2012 - 14:30 | 3109658 SheepDog-One
SheepDog-One's picture

'Rising stock indexes' which are at ten year ago levels....gee, seems most people are real impressed with the illusion of motion while in obvious reality we're stuck in the mud up to the axles.

Mon, 12/31/2012 - 11:55 | 3109009 Sovereignbeing
Sovereignbeing's picture

Greece, Italy and Spain are still smoldering, off the radar of the USA news cycle. The big explosion is yet to come. An explosion so big that it will kick out the foundation of confidence that still keeps these indices up.

Mon, 12/31/2012 - 12:05 | 3109041 AlphaHunter001
AlphaHunter001's picture

 

btw: the WSJ has a cool calculator that one can add/take away to determine how difficult/easy it would be to eliminate the deficit (depending on one's perspective)  http://projects.wsj.com/my-deficit-plan/#sel=53007800-0-0

 

I think that the gov't does need to cut a lot, but some of these deductions are crazy. Why is there even a mortgatge deductability? That's so stupid, why encourage people to get bigger mortgages?

 

Eliminate that right away and the fairest tax is a consumption tax. Having a sales tax makes sense since the wealthy can't evade those taxes. Someone buying a $100k car would pay a lot more in sales tax than someone buying a $35k car.

 

A few changes like this plus cuts to useless areas of the gov't and the deficit would be eliminated extremely quickly

Mon, 12/31/2012 - 14:25 | 3109622 De minimus
De minimus's picture

So you're pretty much advocating that a consumption tax be imposed as well? Because we know that none of the other taxes will ever be rescinded, you no doubt realize this do you not?

Brilliant!

Mr. President, is that you?

Mon, 12/31/2012 - 15:05 | 3109944 AlphaHunter001
AlphaHunter001's picture

 

 

actually I'm in favor of taxing people by consumption as opposed to income, since wealth people can't evade a consumption tax. I think a small income tax combined with a consumption tax makes the most sense - since a small income tax would not make it worthwhile for the rich to evade

 

the thing that worries me is that spending needs to go down, but everytime the gov't gets their hands on new revenue they find ways to spend it... basically we need a system that prevent politicians from making short-term decisions... there should be a way to automate a lot of this through computers... we do need some gov't spending, but less than is currently being spent

Mon, 12/31/2012 - 12:45 | 3109200 loveyajimbo
loveyajimbo's picture

Corker vs. the Porker.  What is that fat, lying slob still doing on TV??  She is about one eclair away from a massive colonic explosion... it will not be pretty.

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