Aussie Market Opens - Signals Market's Initial Disappointment

Tyler Durden's picture

UPDATE: Sure enough - *COLE SAYS MAJORITY OF REPUBLICANS TO VOTE FOR SENATE BILL

...and the market is rallying...

Following Monday's fiscal-cliff-gasm in markets in the US, the Australian stock market is the first indication of the post-cliff on-again-off-again reaction to the reality that is a stymied House and stubborn Senate. Some are noting the fact that it is 'up' as a signal of confidence - however, given its 'catch-up' nature, it is actually signalling considerably less confidence than US stocks showed at their close. Why is this important? Because all that matters is the market...

"Everyone knows once the markets open tomorrow our courage drops in direct proportion to the market fall," said one Republican lawmaker

ASX 200 indicates lagging confidence in the markets...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
vote_libertarian_party's picture

I wana see some RED in them there futures!

maxmad's picture

Dont worry you'll get your doom!  All year too!

I think I need to buy a gun's picture

 

free market capitalism is the best path to prosperity larry kudlow

fonzannoon's picture

We spent the whole year on here yelling that both parties were in fact one party, and we expect them to act as two different parties now? The only thing that surprises me is how easily this is all going through. No need for some tanks on the streets talk.

We are supposed to think the debt ceiling will be any different? They will continue to punt, and there is a lot of field left. As long as we are in a comfortable Zirp/Nirp world, punting is the plan.

Town Crier's picture

I still haven't seen any mention of the self-employment tax or the payroll tax.  They keep talking about rich people and how they should pay more.  But that is just a diversion.  The payroll tax is a separate tax (about 6%) that is paid by everybody who has a job, and an additional matching 6% is paid by every worker's employer.  Self-employed people get hit with both sides of that (about 12%).  This tax includes every worker and every employer, no matter how rich or poor anybody is.  This is what the government wanted all along.  

Town Crier's picture

I edited to correct a misspelling of "employer."

Town Crier's picture

Anyway, this tax was cut 2% by George W. Bush, and the tax is scheduled to go back up again unless the current congress keeps the Bush cut.  This is way bigger than any revenue to be gained by taxing the rich.  No mention of this.

SanOvaBeach's picture

thank god!  least it bring out the grammer-spelling police............

akak's picture

You did not capitalize the "t" in "thank" nor the "l" in "least", as you should have.

Oh, and you misspelled "grammar".

And a proper ellipsis consists of only three dots.

Carry on.

TheFourthStooge-ing's picture

He also misspelled "lest" (or just used the wrong word altogether).

Dr. Engali's picture

The thing that kills me Fonz is that people will still believe there is a difference between the two parties even after this debacle.

fonzannoon's picture

I have no idea how they could think that. I truly don't. Not now. I would love to see Rand Paul and some others officially change parties to independants and call this thing the total sham that it is. Maybe they could gain some support. But we are too far down the road probably.

El Oregonian's picture

"As long as we are in a comfortable Zirp/Nirp world, punting is the plan"

As long as the cancer in the punter's leg doesn't metastasize, I guess it's all good?

fonzannoon's picture

The only question is, when does "it's all good" turn into "holy shit what just happened".

The trend is your friend's picture

2013 the spx is going to hit 2000.  Bernanke and Obama aka Batman and Robin are going to save the world by spending our way to prosperity and incurring trillions in debt, then for a small fee GS is going to package all the debts of the world into a cdo the size of the freedom tower.  Once this is complete, Superman is going to take the CDO and hurl it toward the sun and just like the that all the world's problems will be resolved for the next 100 years.  Back at the Hall Of Justice (the FED) all the 401k's and pension accounts will be fully funded.  The End

The Justice League

Manthong's picture

Whew!.. I forgot for a moment there that we had God and the Justice League on our side.

They are all straight, aren't they?

GMadScientist's picture

Aqua Man <-> Lindsey Graham

El Oregonian's picture

"Aqua Man <-> Lindsey Graham"

Wonder Woman <-> Lindsey Graham

Fixed...

hangemhigh's picture

@ trend     311 3329

The Justice League

correct except for the final attribution....it should be The League of Shadows.........

SpykerSpeed's picture

Right.  America's fall is a process, not an event.  This "fiscal cliff" and "debt ceiling" are just the beginning of the long chain of events that lead to its ultimate collapse... hang on to your hats, folks.

Lewshine's picture

Bloomberg just used the real term for the FC vote, for the first time two minutes ago - AUSTERITY!! New payroll taxes will hit 77% of the working population. Yet, your pandering president says only the richest households.

CheapBastard's picture

"Sledgehammer" hits Australian economy:

"On Thursday, Treasurer Wayne Swan was forced to dump plans for a surplus and realign fiscal policy towards “jobs and growth” as collapsing tax revenues failed to hit budget targets.

Cash receipts to the end of October are now 3.9 billion behind budget estimates. With a fragile economy, common-sense has finally prevailed and the Government has decided not to keep cutting expenditure to match falling revenues in a race to the bottom as the Australian economy continues to deteriorate.

Swan indicates there has been a substantial broad based hit to company profits across multiple sectors of our economy."

 

http://www.whocrashedtheeconomy.com/

..................................................................................

Oh yes, there's also that little matter of house prices:

 

Australian property bubble

 

http://en.wikipedia.org/wiki/Australian_property_bubble


"The Australian Property bubble is speculation that real estate prices in Australia are (currently) valued at more than they are worth. Some people may argue that this is a real estate bubble.

A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterised by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline."

ForTheWorld's picture

House prices sink for a second year in Australia:

http://www.smh.com.au/business/property/house-prices-sink-for-a-second-y...

If you were Australian, you'd be wondering how this is possible, because we've always been told that house prices double every seven years.

Dr Benway's picture

Aussie house prices are still massively, ludicrously, prepostorously overvalued. Teetering on the brink, with the shills going all out trying to fool the young/dumb/FOC to enter.

ForTheWorld's picture

Some figures I've seen suggest the median dwelling price in the country is almost $500,000, and the average gross yearly income is $57,000. I know when my parents bought their house, it was $64,000, and they were earning $25,000 gross per year. The house price/income ratio has just ballooned out in a ridiculous fashion, but no one notices.

Dr Benway's picture

Yup that's pretty much it. Plus the net rental yield has fallen almost to zero, i.e. the only reason 'investors' (actually speculators) buy is for the expectation of capital gain, with the gov policies fuelling this with policies that increased the importance of CG over yield.

A very illuminating chart is plotting total mortgage debt over the last 25 years on the same chart as house prices. Both have gone up several times (of course debt quicker than prices as banksters must get their cut)

Basically, people were promised that would get 10% CG each year if they borrowed and bought houses, even though incomes only rise 1% a year. TPTB then instituted laws that ensured this for long enough that TPTB could benefit. But it takes but a moment to realize this is a chain letter.

ball-and-chain's picture

The Ponzi Scheme will continue to roll on.

The markets got exactly what they wanted.

Wall Street and London rule the world.

Business as usual.

Move along.  Nothing to see.

http://www.angrysinner.blogspot.kr/2013/01/yesterday-dragon-lady-made-beef-and-egg.html

Karlus's picture

Im guessing this should spike gold, but in Alice in Wonderland markets, it will drop on a deal.

disabledvet's picture

The Fed's raising taxes and cutting spending is bad for growth. Even if we only get half of that...which is all that was voted on...that's bearish for growth. In fact about the only thing that is bullish for the economy is the cycle itself. Interest rates "at or near zero" is clearly priced in. So is any "Inflation Trading" that has been RAMPant three years running now. "Now it's the Banksters turn to smile." Consumers of debt are legion in this environment...but who is buying any one "thing"? I'm still sticking with my core belief that liquidation everywhere and always represents the most effective solution to a debt crisis. the debt must be EXTINGUISHED in order to "recreated"...not "leavened." Now only the asset rich can grow the economy...and they don't borrow money to begin with. "Fiscal Agreement here we come!" http://www.youtube.com/watch?v=N_5kv8QeBBc

buzzsaw99's picture

One algo to rule them all. [/Lloyd of the Rings]

devo's picture

Am I missing something--why aren't futures open?

 

rehypothecator's picture

Because it's new year's day, except in Australia, where it's already tomorrow? 

akak's picture

It must really suck to live in Australia, where it is never today, and the sky is always below you, and Christmas comes in July.  Not to mention how they don't even have a clue on how to speak proper English.  It's all just wrong.

Water Is Wet's picture

And how have they not fallen off the planet already?  What the hell?

akak's picture

It's those special velcro slippers they wear.

My theory is that all that blood rushing to their upside-down brains is why they speak so strangely.  The bizarre desire to put slices of beets (BEETS!) on hamburgers is an associated and unfortunate side effect.

knukles's picture

Water swirls backwards there, too!

akak's picture

I once had the opportunity to flush a toilet exactly on the equator.

The results?  After taking a good while to get the pattern established, it swirled clockwise around half of the time, and counterclockwise the other times.  I was hoping to see it all just go straight down in one seemless sucking action (like our current economy).  Color me disappointed.

Jena's picture

What color is that?   

Cheers,

Jena

ForTheWorld's picture

Haha... proper English. Americans are rather defensive of the tongue of the motherland :P

akak's picture

At least we Americans don't maniacally torture our vowels.

Phonemic waterboarding ought to be a crime.

ForTheWorld's picture

Well, Northerners might not, but I've had trouble understanding the drawl that comes out of a southerners mouth from time to time when I've travelled through the southern states.

akak's picture

OK, agreed, you got us there!

I worked with a Texan once, nicest guy in the world, but we practically needed a translator between us to communicate.  For example, it once took me several minutes to grasp that what I thought were his references to "poplin" were actually to "PIPELINE"!

nmewn's picture

lol...wut?

Is there a difference between you'ze and ya'll?

Never mind...the games on.

ForTheWorld's picture

Regarding correct language use, there isn't. Plus, they're used by culturally similar kinds of people.

GMadScientist's picture

I've been informed that "y'all" is actually a singular form and "all'z'y'all'z" the equivalent plural.

akak's picture

Given the lack of a generally accepted second person plural in English (such as the "y'all" of the US South), I happily have adopted the latter, but give it the more "correct" formation of "you all".

nmewn's picture

"Phonemic waterboarding ought to be a crime."

No kiddin...lol.

Proper english gave us some real crazy shit like write, right? And a knight riding his horse in the night.

Makes for real problems for a red to understand what was actually read ;-)

akak's picture

Agree, written English is an utter abomination.  I say throw out the whole rotten written language and start over from scratch.  I've always pitied the poor SOBs who have to learn all the insanity of written English as a second language!