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Obama To Make Statement At 1:30 PM, Stocks Pop Then Fade

Tyler Durden's picture


With just 3 hours left in the trading day, why not up the stakes a little in the soap opera and take it straight to the star character:


What will he disclose? Perhaps this, from the AP:

The contours of a deal to avert the 'fiscal cliff' emerged Monday, with Democrats and Republicans agreeing to raise tax rates on couples making over $450,000 a year, increase the estate tax rate and extend unemployment benefits for one year, officials familiar with the negotiations said.


But with a midnight deadline rapidly approaching, both sides were at an impasse over how to handle automatic, across-the-board spending cuts set to take effect on Jan. 1. Democrats want to put off the cuts for one year and offset the so-called sequester with unspecified revenue.


The deal in the works would return tax rates on families making over $450,000 to 39.6 percent, the same level as under former President Bill Clinton. The agreement would also raise tax on estates worth more than $5 million from 35 percent to 40 percent. Unemployment benefits would be extended for one year.


A Republican official familiar with the plans confirmed the details described to The Associated Press.


The officials requested anonymity in order to discuss the internal negotiations.

Some more from Reuters:


And no mention of the debt ceiling of course, or that there are no new spending cuts, or that this is at best a stopgap to get US to the debt ceiling debate in 60 days, or how this proposal would pass Congress, 

Algos, however, as usual don't care about specifics, and are rabidly buying everything because other algos are rabidly buying everything, at first...


And then fade...


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Mon, 12/31/2012 - 13:49 | 3109445 Temporalist
Temporalist's picture

Gold is at highs for the day...silver too.

Mon, 12/31/2012 - 14:48 | 3109806 Snakeeyes
Snakeeyes's picture

Yup. Obama, Barzini and Tattaglia fake like they will get the fiscal house in order, and then do ... nothing.

Everyone loves DC spending!

Mon, 12/31/2012 - 13:52 | 3109446 ihedgemyhedges
ihedgemyhedges's picture

Slam one can of Pabst Blue Ribbon every time he says "tax" or "the rich".

You'll be drunk by 1:34pm EST...........

Mon, 12/31/2012 - 13:52 | 3109471 Selah
Selah's picture

You are assuming that he will be on time.

Mon, 12/31/2012 - 13:57 | 3109494 French Frog
French Frog's picture

The roasting of the shorts yet again (sigh).

As last Friday's drop was a 'bloodbath' (according to ZH), what should this pop up be labelled?

Mon, 12/31/2012 - 14:17 | 3109595 knukles
knukles's picture


The Illuminati and their Reptilian Overlords often bathe in the blood of innocent pre-nubile virginal girls for relaxation and Erudite Total Universal Enlightenment.

Mon, 12/31/2012 - 14:26 | 3109632 stormsailor
stormsailor's picture

my /es stop got taken out, sonofa............

Mon, 12/31/2012 - 14:04 | 3109533 Texas Ginslinger
Texas Ginslinger's picture

That upswing is a beautifull thing.

What I bought late Friday I sold this morning and made my gain for the week.

I do love volatility so.........

Mon, 12/31/2012 - 14:20 | 3109607 Doomer
Doomer's picture

I'm betting it'll be something short and sweet, like "Bend over, bitchez!"

Mon, 12/31/2012 - 14:30 | 3109657 Taterboy
Taterboy's picture

Obama: We be investin in Lotto! You gots to be in it to win it!

Mon, 12/31/2012 - 13:49 | 3109452 pods
pods's picture

The balls that these traitors have to think that they get a second crack at your accumulated capital after you die.

I say drive off the cliff, with a trunk full of nitroglycerin!  


Mon, 12/31/2012 - 13:55 | 3109486 GMadScientist
GMadScientist's picture

Seems pretty easy to shelter all but that first $5M, but if you'd rather be a drama queen and get your panties all twisted, so be it.


Mon, 12/31/2012 - 14:07 | 3109555 pods
pods's picture

Well if you don't mind getting fucked as long as the dinner is good, I am not one to judge.

Just don't apply your logic to me.


Mon, 12/31/2012 - 14:08 | 3109560 fonzannoon
fonzannoon's picture

they will need a special dept to monitor boating accident.s

Mon, 12/31/2012 - 14:17 | 3109596 GMadScientist
GMadScientist's picture

Best of luck continuing to both have and eat that cake.

Mon, 12/31/2012 - 14:21 | 3109610 fonzannoon
fonzannoon's picture

LOL as if 3.5 mil or 5 mil applies to me. I will sit here with my crumbcake.

Mon, 12/31/2012 - 14:00 | 3109509 walküre
walküre's picture

You don't really own it unless you hide it. If you don't hide it, the world knows about it.

The more things change, the more they stay the same.

Just ask Russians, Chinese, Greeks, Italians, East Germans and so on...

Central planning and central banking go hand in hand when they fail.

Mon, 12/31/2012 - 14:24 | 3109621 tango
tango's picture

You could also say that central planning inevitably leads to authoritarian states under the phony guise of "fairness".    It is absolutely astounding that ANYONE would think these extra taxes will go toward debt reduction - a case of intellectual dishonesty of the first degree.  What a sham!

Mon, 12/31/2012 - 14:45 | 3109786 Lewshine
Lewshine's picture

@ Tango,

And notice how the collective interest on Capital Hill has all but disappeared when it comes to the spending side - Poof!

Now, the whole focus from these clowns is getting more heroine to the junkie, while avoiding public riots like Greece & Spain...Which was the whole purpose of the "fiscal cliff" argument to begin with. 


Mon, 12/31/2012 - 14:26 | 3109635 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

And if even 1 other human knows about it, it is *not* hidden.

Mon, 12/31/2012 - 14:31 | 3109661 pods
pods's picture

Yep, two people can keep a secret as long as one of them are dead.


Mon, 12/31/2012 - 14:57 | 3109880 walküre
walküre's picture

Let me preface by saying that this discussion is hypothetical. For the benefit of the goons at NSA and all other various alphabet government spy agencies

It is not betrayal when even your closest loved ones are uninformed rather it is for their own protection. I know what I know and what I know is what I can defend to my grave.


Mon, 12/31/2012 - 14:02 | 3109521 Renewable Life
Renewable Life's picture

They are NOT getting this shit thru the House, what is everyone excited about????

Did I miss something here, the fucking House sure as shit didn't send them a bill to pass and the Preident can sign this shit into law!!

Boehner is a dead man as the speaker if he puts this up for a vote, plus not 100% of democrats are going to vote for this shit either, lookout Wednesday!!!

Mon, 12/31/2012 - 14:09 | 3109561 GMadScientist
GMadScientist's picture

The TeaPotDome Express' Last Hurrah!


Mon, 12/31/2012 - 14:09 | 3109562 Fish Gone Bad
Fish Gone Bad's picture

I have jury duty so I will have a lot of time to just sit and "get informed".

Mon, 12/31/2012 - 15:09 | 3109963 Lewshine
Lewshine's picture

I share your frustration, but...Don't be an embecile, you speak as though the markets move based on something other than where they are directed. Even as you watch equties move up on not one shred of evidence on any deal at all thus far!  If they can do that (and they do almost everyday, as they did in Europe for two years) - what can't they do in the midst of a nuke holocaust?? The last 5 down days were designed to get cheap calls regardless if whether cliff issues are even addressed! AND, the "fiscal cliff" WAS NEVER A REAL ISSUE. It was manufactured as a slight of hand, keeping us taking sides (Dem/Rep) while our government imposes europe like tax burderns - Can you say: AUSTERITY??? Can we all agree we are slightly shaper than your average media pundit?...THINK!!! 

Mon, 12/31/2012 - 15:20 | 3110031 Renewable Life
Renewable Life's picture

I hear you, but if you think 39% top tax rate is Austerity, you've got a big surprise coming, that shit is just 1996, the fucking austerity hasn't even begun to be whispered about yet!!!!

Mon, 12/31/2012 - 15:16 | 3109998 Renewable Life
Renewable Life's picture

That fool can talk until the cows come home, no ones fucking voted yet!! If those cocksuckers were so sure they had it done, then vote assholes, preferably while the market is still open!!!!!!

Ya, that's what I fucking thought!

No vote, it's all bullshit!

Mon, 12/31/2012 - 13:49 | 3109454 azzhatter
azzhatter's picture

Is he on The View today?, David Letterman? Jay Leno?


Fuck You Bernanke and Fuck You Obama

Mon, 12/31/2012 - 13:57 | 3109491 Taterboy
Taterboy's picture

Which rap/hip hop station will he be on?

Mon, 12/31/2012 - 14:10 | 3109565 GMadScientist
GMadScientist's picture


Mon, 12/31/2012 - 14:20 | 3109605 knukles
knukles's picture

He said "rap", not "crap" as in Nancy Pelosi Radio

Mon, 12/31/2012 - 13:49 | 3109457 PAWNMAN
PAWNMAN's picture

The politicians are going to save us all with a last minute deal! NEVER would have saw this one coming!

Mon, 12/31/2012 - 13:52 | 3109458 Boilermaker
Boilermaker's picture


Get ready for BLAST OFF!!!  Time to get the New Year's Eve party rockin' early for the 401(k) masses!!!


It's so funny to read the 'market is going to sell off' comments here.  Like, this wasn't fucking predictable as all hell.  Yea, they're going to have a massive flush on NEW YEAR'S EVE with everyone watching.  Fucking please.  Stop it.

Mon, 12/31/2012 - 13:50 | 3109460 magpie
magpie's picture

What European index will be best to short during the cliff dive

Mon, 12/31/2012 - 13:50 | 3109462 khakuda
khakuda's picture

and the market celebrates what we knew would happen all along: more taxes and zero spending cuts.

Mon, 12/31/2012 - 14:35 | 3109677 NoDebt
NoDebt's picture

Bingo.  Been saying that around here for weeks.  Taxes will go up, spending will not go down.

I wonder if politicians even realize they aren't really in control of things any more than the "great unwashed" like ourselves.  They're just higher-ranking employees. 

Now dance for your dinner, bitchez!

Mon, 12/31/2012 - 15:09 | 3109962 Renewable Life
Renewable Life's picture

Ohhhhhhhhhh my god, if we didn't avoid the cliff, 800,000 employees at the pentagon would have been laid off!!! Ohhh the horror!!

I have two thoughts about that.....

1. There's 800,000 employees at the pentagon that could be laid off and the place could still function???? Are you fucking kidding me? That should scare the hell out of any American itself!

2. That sounds like the greatest thing I've ever heard!!!!

Mon, 12/31/2012 - 13:50 | 3109463 Joe moneybags
Joe moneybags's picture

So much for Friday's article describing the after-hours bloodbath, and the forced margin selling from the bulls.  Hopefully, the traders here faded the usual prediction of doom.

Mon, 12/31/2012 - 13:53 | 3109477 Boilermaker
Boilermaker's picture

PSSST:  It's all fucking bullshit.  If you don't have the playbook, and you don't, then you don't know jack shit either.

Mon, 12/31/2012 - 14:20 | 3109608 knukles
knukles's picture

I knew Jack Shit

Mon, 12/31/2012 - 13:50 | 3109464 azzhatter
azzhatter's picture

We went off the cliff awhile ago just waiting to land

Mon, 12/31/2012 - 14:30 | 3109656 tango
tango's picture

Exactly azzhatter.   We crossed the Rubicon (as Paul stated this week) some time ago.  The only question now is how we handle thecatastrophe that will inevitably follow.  This is why I don't go ballistic, scream about killing bankers or hating the 1% - it's not their fault we reelected the same bozos time after time, especially when the politicians were quite open about what they were going to do.    All this phony rage against strawmen is misplaced - they're simply following the script decided on by the American voters in our urge to have it all here and now (and let others pay for it).  The day of reckoning draws nigh.

Mon, 12/31/2012 - 15:12 | 3109981 Renewable Life
Renewable Life's picture

I love your analysis! I can tell your ready to survive this shit coming down the pipe, because your calm, not clouded with emotion, and clear about the shit you face!

I feel the same, good luck!

Mon, 12/31/2012 - 13:51 | 3109467 fonzannoon
fonzannoon's picture

Sounds like a good deal. The repubs should pass it and swear to use the spending cuts in the debt ceiling debate. Then when the debate comes the Repubs should fold and nix the spending cuts at the last minute. Then the repubs should change their party so it  is just one big democratic party. In the meantime the middle class can get the AMT rammed up their ass and not notice any of this.

Mon, 12/31/2012 - 13:53 | 3109475 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

This market ... Tourette syndrome.

Mon, 12/31/2012 - 13:53 | 3109476 DrDinkus
DrDinkus's picture

a hangover does not mix well with this price action.

Mon, 12/31/2012 - 13:53 | 3109478 cdude
cdude's picture

Oh, the sky isn't falling after all?  Up, up and away!  

Mon, 12/31/2012 - 13:59 | 3109480 Waterfallsparkles
Waterfallsparkles's picture


Mon, 12/31/2012 - 13:53 | 3109481 Bastiat009
Bastiat009's picture

That is precious. More debt, deeper deficit, more poverty, more taxes and the value of companies go up ... stop working, your company is only valuable because your children will give to the government most of what you earned during your lifetime.

Mon, 12/31/2012 - 13:55 | 3109482 dogfish
dogfish's picture

The market is playing follow the douchebags.

Mon, 12/31/2012 - 13:55 | 3109484 asteroids
asteroids's picture

You folks think this is good government? It's a zoo where monkeys fling poo at each other. Any deal may initially sound good but it'll be a mess. Most last minute deals usually are.

Mon, 12/31/2012 - 13:57 | 3109496 Quinvarius
Quinvarius's picture

It is right on schedule LOL.  They milked it for maximum TV time. 

Mon, 12/31/2012 - 13:56 | 3109485 dwdollar
dwdollar's picture

Fucking algos... If they had a deal, they wouldn't be talking about it in front of the press. They'd be voting on it right now. The casino down the road can make better predictions than this circus.

Mon, 12/31/2012 - 14:01 | 3109516 Spastica Rex
Spastica Rex's picture

Drama is an art that's thousands of years old. Plays are written long before they're performed. I doubt that this is improv.

Mon, 12/31/2012 - 13:55 | 3109487 ebworthen
ebworthen's picture

"Rabid" seems to be the operative word in this soap opera.

Mon, 12/31/2012 - 13:56 | 3109490 Calidreaming
Calidreaming's picture

is there such a thing as a negative algorithym



Mon, 12/31/2012 - 14:00 | 3109511 GMadScientist
GMadScientist's picture

innumeracy and illiteracy in one fell swoop.


Mon, 12/31/2012 - 13:57 | 3109495 PAWNMAN
PAWNMAN's picture

The Prez is going to make his speech in front of a group of "middle class americans". I think I'm going to be sick!


Mon, 12/31/2012 - 13:58 | 3109498 Dollar Bill Hiccup
Dollar Bill Hiccup's picture


We SCREWED the not really but kind of RICH, yay!

The REALLY RICH will get around this just as they have all else.

And We're still SPENDING like throwing money out a car window, yay!

And we don't have to make any decisions again for a while.

We left it to two guys to do that anyway.


Mon, 12/31/2012 - 14:33 | 3109672 devo
devo's picture


Mon, 12/31/2012 - 13:59 | 3109499 CrashisOptimistic
CrashisOptimistic's picture

As best I can see this is 

120B Payroll Tax Rate Increase

60B Tax on the Rich

120B Sequester

Sums to 300B 2013 hit on GDP.  That's about 2%

Mon, 12/31/2012 - 13:59 | 3109500 CrashisOptimistic
CrashisOptimistic's picture

As best I can see this is 

120B Payroll Tax Rate Increase

60B Tax on the Rich

120B Sequester

Sums to 300B 2013 hit on GDP.  That's about 2%

Mon, 12/31/2012 - 13:59 | 3109501 Yen Cross
Yen Cross's picture

  Boehner to make statement @ 2:00 p.m. /sarc

Mon, 12/31/2012 - 14:06 | 3109549 GMadScientist
GMadScientist's picture

Bring Kleenex.

Mon, 12/31/2012 - 14:11 | 3109570 Meatballs
Meatballs's picture

Weeping Cheeto time again...

Mon, 12/31/2012 - 13:58 | 3109503 Gunga
Gunga's picture

Whoever has the duty at the Gold Suppression Desk right now must have nodded off. The Kitco Daily chart just went vertical.

Mon, 12/31/2012 - 13:59 | 3109506 YesWeKahn
YesWeKahn's picture

Bernanke is rapidly buying sperms. he is out of manhood.

Mon, 12/31/2012 - 14:01 | 3109515 Dineroguru
Dineroguru's picture

I bet the reason why stock got happy is that some central bank somewhere slosshed some funds into the futures mkt.....that is all it takes these days.  Why wouldn't a central banker do that?  What wouldn't they do??

Mon, 12/31/2012 - 14:02 | 3109517 Seasmoke
Seasmoke's picture



Mon, 12/31/2012 - 15:08 | 3109954 Seasmoke
Seasmoke's picture

official time 144PM.....which is not OVER 144PM

that means , house wins, everyone else is a loser.....thanks for playing

Mon, 12/31/2012 - 14:02 | 3109522 TerminalDebt
TerminalDebt's picture

Time to use the market hammer.

 a bit of blame throwing and a flash crash coming after he reads the teleprompter.


Mon, 12/31/2012 - 14:02 | 3109524 GMadScientist
GMadScientist's picture

"The Federal deficit 'fell' to $1.1T dollars"

"The 'deal' would generate $600B in revenue" (or...$60B over ten years)

Governance FAIL.

Mon, 12/31/2012 - 14:02 | 3109525 scatterbrains
scatterbrains's picture

oh this is going to be spectacular next week. Hoping there are no shorts left with levered longs balls deep when the wheels come off this pig next week.

Mon, 12/31/2012 - 14:03 | 3109528 DavidC
DavidC's picture

"And now the fade..."

Damned well hope so, they're pathetic.


Mon, 12/31/2012 - 14:03 | 3109529 MFLTucson
MFLTucson's picture

Could shorten the headline to read, "The liar will be back on TV at 1:30"

Mon, 12/31/2012 - 14:04 | 3109530 Cone of Uncertainty
Cone of Uncertainty's picture

Where in fucks name is that sewer rat sludge slurping cocksucking piece of putrid festering shit Corzine?

Mon, 12/31/2012 - 14:16 | 3109589 pods
pods's picture

The world is a big place. I can tell you where he isn't?

Next to Madoff in prison.


Mon, 12/31/2012 - 14:04 | 3109531 Everybodys All ...
Everybodys All American's picture



Mon, 12/31/2012 - 14:05 | 3109532 Cone of Uncertainty
Cone of Uncertainty's picture

ANd where the fuck is my AR-15?

Mon, 12/31/2012 - 14:04 | 3109538 jmcadg
jmcadg's picture

This is retarded. And they're not slamming gold and silver? Fuck off, just fuck off. 

Cunts. I had a cheeky New Years Eve put on each of the Dow, S&P and Gold.

I just saw a 3 for 2 offer on Hoegaarden (large bottles). That'll be 6 bottles then.

Mon, 12/31/2012 - 14:05 | 3109540 Pool Shark
Pool Shark's picture



They've worked out a "deal"?

Wake me up when it passes the House.

[just call me Rip Van Winkle...]

Mon, 12/31/2012 - 14:05 | 3109541 azzhatter
azzhatter's picture

Gold has popped a nice little chubby this morning

Mon, 12/31/2012 - 14:05 | 3109542 10044
10044's picture

Au/ag flying

Mon, 12/31/2012 - 14:26 | 3109631 Conax
Conax's picture

Well it's all psychotic today. I saw it go up a few minutes ago, you said it took off, went back and silver is faltering.. What a mess they've made of everything.

I still think they will throw the kitchen sink at silver before the day is done.

Mon, 12/31/2012 - 14:07 | 3109550 fonzannoon
fonzannoon's picture

but but but apple....

Mon, 12/31/2012 - 14:07 | 3109554 Son of Loki
Son of Loki's picture

A deal is near is The Rumor.



Mon, 12/31/2012 - 14:23 | 3109615 Pool Shark
Pool Shark's picture



Well, technically speaking, as time passes, any deal will be 'nearer'... 


Mon, 12/31/2012 - 14:08 | 3109558 SmoothCoolSmoke
SmoothCoolSmoke's picture

Boner, McConnell, Biden, Reid, Obama:  "Will kicking the can work?"

All: "Let's see, Greece, Italy, Spain, Ireland, Portugal...........Dow over 13K. Alright then.......kick away!"


Mon, 12/31/2012 - 14:09 | 3109564 djsmps
djsmps's picture

Obama is the George Costanza of negotiating.

Mon, 12/31/2012 - 14:14 | 3109586 Meatballs
Meatballs's picture

It made me laugh but I had to junk you anyway. Get real, Washington is overflowing with Costanzas.

Mon, 12/31/2012 - 14:14 | 3109584 Threethreethree
Threethreethree's picture

No Deal.


Obama to assign blame.


The Rebublicans caused this mess


The Right Wingers specifically


Damned those Tea Party Patriots.



Mon, 12/31/2012 - 14:21 | 3109606 f16hoser
f16hoser's picture

We have a spending problem. Not a Tax problem. Can we call it what it really is?

Mon, 12/31/2012 - 14:24 | 3109617 Threethreethree
Threethreethree's picture

No deal.


Obama to assign blame


it is the Republicans fault


and the Tea Party Patriots



Mon, 12/31/2012 - 14:24 | 3109618 Threethreethree
Threethreethree's picture

No deal.


Obama to assign blame


it is the Republicans fault


and the Tea Party Patriots



Mon, 12/31/2012 - 14:24 | 3109619 Inthemix96
Inthemix96's picture

Friends, collegues, gentlemen, and hope + changers,

I have been sent here before you this afternoon, on this last day of December 2012 to inform you as to why I am well informed.  The promter of tele has informed me that you are owned, we own you.  We own you lock stock and barrel.  From the minute you left you're mothers minge you have been owned, you will work like a dog, in a job you hate, till the day you die to afford me and the likes of me, and especially the bankers in the comfort we so deserve.

We will tax you till the pips squeak your whole working life and when you may be done, and on deaths door itself, we will take the rest.

And this my fellow friends is how it is, I was going to give a speach on how we have sorted the cliff but thought why bother?  Lets just give the fuckers the truth straight up.  Oh, and in the new year of 2013, we is coming for your guns.

Chin up bitchez

Mon, 12/31/2012 - 14:24 | 3109620 Tom Green Swedish
Tom Green Swedish's picture

There will be no compromise.  Bill Gross already called it by saying stocks will go nowhere next year. 


They want taxes to go up. This is an act.  When neither side can agree on anything it makes both look bad but not one or the other.  If Barack cannot compromise its his fault, but also Republicans.

Mon, 12/31/2012 - 14:25 | 3109627 Pool Shark
Pool Shark's picture



Looks like gold is going to beat-out the DJIA for the 9th consecutive year...


Mon, 12/31/2012 - 14:27 | 3109637 rqb1
rqb1's picture

we have a no term limit problem

Mon, 12/31/2012 - 14:29 | 3109646 virgilcaine
virgilcaine's picture

Selloff to commence in...

Mon, 12/31/2012 - 14:32 | 3109663 Temporalist
Temporalist's picture


Mon, 12/31/2012 - 14:30 | 3109653 lakecity55
lakecity55's picture

Barry: I had to destroy Amerika in order to save it.

Minion! Where's my mirror and new uniform from Fashions by Idi?

Mon, 12/31/2012 - 14:30 | 3109659 JSD
JSD's picture

He's going to announce that Hillary Clinton has been hospitalized.

Mon, 12/31/2012 - 14:42 | 3109693 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

He's going to state that for the good of the country he will be dropping the ball this year, with Harry Reid's help, but only because Dick Clark won't be able to make it due to other commitments.

Mon, 12/31/2012 - 14:37 | 3109702 DutchR
DutchR's picture

Probly a statement on his handicap......

Mon, 12/31/2012 - 14:38 | 3109714 Cone of Uncertainty
Cone of Uncertainty's picture

Or where Moochelle is going to vacation next.

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