Did Markets Or Manipulations "Save The World" In 2012?

Tyler Durden's picture

Via Michael Krieger of Liberty Blitzkrieg blog,

This is a brilliant piece of propaganda.  Central Planners are trying with all their might to force people into behaviors and financial assets that are in direct contrast to their logic as well as long term financial well being.  This is the height of immorality, not to mention hubris.  In the end, there is no chance of any of this working as the reality on the ground will overwhelm all of the manipulations and lies of the corrupt oligarch class.

From the Washington Post/Bloomberg article “Almost All of Wall Street Got 2012 Wrong as Markets Saved World”:

Blankfein was more prescient. “I tend to be a little more positive than what I’m hearing from other people,” the 58-year- old CEO told Bloomberg Television in an April 25 interview at Goldman Sachs’s New York headquarters. “One of the big risks that people have to contemplate is that things go right.”

Well of course Mr. Blankfein was optimistic.  He knows he has the Treasury Department and the Federal Reserve in his back pocket and they will do whatever he says with one phone call.  Furthermore, if things go wrong you just get a bailout.  Crony Capitalism 101.  That’s how the World’s 100 Richest People Got $241 Billion Richer in 2012.

Stocks rose as Federal Reserve decisions to keep benchmark interest rates at record lows while buying more than $80 billion a month of mortgages and Treasuries boosted confidence in the economy.


“In general they’re trained to analyze the economic data, balance sheets and so on. They’re not trained to predict political decisions. These factors have ruled the lives of fund managers in a more significant manner than what used to be over the past 20 or 30 years.”

The paragraph above pretty much sums it up.  There are no markets, there are manipulations.  As for the nonsense going around yesterday about a Fed exit, this is what I tweeted:

There is a 0% chance of any FED exit ever. This entire experiment ends with civil unrest and martial law. That is the exit strategy.

Full article here.

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I think I need to buy a gun's picture

can we just get it over with already

lewy14's picture

No - that's the point. They won't let it collapse.

One way to think about it is that the bank/fed/treasury nexus has "cornered the market" on vol itself. There is no way to force it to cover its short position. So no collapse - equity, bond, currency, or other.

It will take a decade to slowly expropriate all the essential production. After years we'll all be so dependant that it won't matter if what's left of the "markets" crashes.

otto skorzeny's picture

look up the story of stalin and the chicken he tortured and then he got it to beg him for food-kind of like that

nope-1004's picture

Agree totally.  They won't let it collapse, period.  Markets are 100% manipulated.  If you don't see that, then you're either not watching, have no experience, or simply believe what you are told by the MSM.

This statement by Kreiger sums up the last decade pretty good:  Central Planners are trying with all their might to force people into behaviors and financial assets that are in direct contrast to their logic as well as long term financial well being.

The system is broken beyond repair.  The elite don't want to let it go, so we live in this middle ground of horribly high unemployment (not gov't reported number), embarrassingly huge food stamp usage, and terribly dishonest capital management.  The economy, productivity, GDP, and overall happiness are gone.  That's what happens when a 'money manager' gets control of your life - they ruin it.


Michaelwiseguy's picture

We need to nationalize the Federal Reserve Corporation and confiscate all their assets!

SafelyGraze's picture


btw .. is anybody else getting these ads on their zh page now?

I kinda like em, but nana gives me all kinds of grief when she sees them on my screen 

AldousHuxley's picture

to save the world, let real estate prices (rent seeking) settle to half of today's prices.

This just in's picture

She kindof looks like she smoked her bible.

Landotfree's picture


The Fed's job is to convince the lemmings to keep marching to the pit of doom.   The Fed has no ability to stop the collapse, as that is impossible, their job is just to assist the system into becoming as large as possible and to sustain it as long as possible.  The Fed does not have unlimited power, matter of fact they have very little power.  I have no idea what the article is referring to as far manipulation, as anytime any of us do anything we are manipulating something.   There is no fair, there is no safe, etc. those words do not exist.

Eventually the power needed to sustain the system will be overwhelming the collapse will resume and quite a few unfunded liabilities will have to be liquidated.

centerline's picture

The real power of the Fed is simply to "convince" people of something regarding interest rates, money supply, etc. and by this persuation, change is accomplished.

This is also why the shift towards hawkish the other day is somewhat tell tale to me.  The pressure is mounting and the tactics are shifting as a result.  Yield is drying up.

To me it feels like the topping process starting at least a decade ago and we now rolling over the backside.

By the way, I think the "manipulation thing" is contextual.  When viewed in the same light as the financial crimes going unpunished, HFT, flash crashes, "Corzined" funds, etc. - with the MSM being the conduit for the propoganda - the public is being moved like cattle from one field to another and closer to the slaughterhouse.  Moo.



lewy14's picture

It depends on what you guys mean by "collapse".

If you were to leave today and come back in 10 years it will sure look like things had collapsed.

But the process to get there won't be one of collapse, it will be one of erosion and drift.

Critically, the Fed (and the government generally) absolutely now have the power to stifle any kind of a preference cascade, whether finanical (market crash) or political (revolution).

They do this by selling vol, printing money, controlling the news flow, datamining social networks, etc... and slowly, inexorably, co-opting and neutralizing any possible opposition by creating ever greater dependency on the government (and the Fed).

There will be no uncontrolled turnover of the current regime, for all senses of the word regime.

No, nobody has the power to prevent the US (and the developed West+Japan generally) from finding its new (much lower) level. 

But they do have the power to prevent uncrontrolled cascades. This means they get to dictate the rate (slow simmer), and the endpoint (they own everything and everyone).

So you folks who are preparing for the collapse - consider your downside risk - no collapse, just a slow grind lower. Crisis entails some opportunities and there will be no crisis (and no opportunities for the "prepared").

cranky-old-geezer's picture



Stocks rose as Federal Reserve decisions to keep benchmark interest rates at record lows while buying more than $80 billion a month of mortgages and Treasuries boosted confidence in the economy.

What?  Boosted confidence in the economy?

NO, it boosted confidence in FINANCIAL MARKETS, NOT the economy.

Why do these "pundits" keep confusing financial markets with the economy?

Financial markets are doing great thanks to trillions of (printed) dollars of "quantitave easing" poured into 'em since 2008. 

But the economy SUCKS.  And it's getting WORSE. 

And WHEN are these "pundits" gonna start calling it what it REALLY is, a freikin LOOTING SPREE?  LOOTING the wealth of the nation, WHY the economy is getting worse.

I never read "Wealth of Nations".  I already KNOW what it says.  Central banks and fiat currency are created to STEAL the wealth of a nation, quietly, slilently, merely by running their printing press and giving that new currency to cronies under the guise of "TARP" and "QE" and all that "saving the economy" bullshit.

No, they're not saving any economy, they're LOOTING economies.


YES it's a sham, a SCAM done at the highest levels of government, which is WHY it'll never be stopped.

Michaelwiseguy's picture

TV news reporters are stuck on stupid on purpose. That's why they are the #1 enemy of the American People.

CH1's picture

Soon enough the rest of the world will turn against the Fed and start selling Treasuries, etc.

Here's Jim Willie on the subject: http://www.dgcmagazine.com/jim-willie-the-coming-isolation-of-the-us-dol...

max2205's picture

Just wait IWM getting ready to go parabolic and Then we will see a bubble the fed can't control

They always fuck up the bubble

Clowns on Acid's picture

That is what they have virtually accomplished with the $17T deficit as well.

Tom_333's picture

Agree.However your etsimate of a decade is wildly optimistic.Other big experiments usually had the staying power of 70 - 80 years.

centerline's picture

They can't stop the inevitable lewy.

They can only sustain to a point - that point being unknown (too many variable).  Their goal is to sustain as long as possible.  Chances are, what most people are doing right now is exactly what they want them to do - including rising frustration at the political process (spelled "scapegoats") and buying guns like they are iPhones (hey Apple... iRifle!  I better trademark this one quick - lol).

The system requires yield.  Like a machine requiring fuel/oil/etc.  When organic yield dries up, switch to cannabalization of the working classes (akin to biofuel instead of petroleum in this analogy).  We have been there for over a decade now.  The "bubbles" and "bubbles inside bubbles" run amok on credit/leverage are part of this topping process.

They will reach a point though where cannabalization will fail.  That is when the rug will get pulled out.  We are not there yet.  Absent some sort of black swan event (reasonable likihood I think), we may have a few more years before things really get ugly.  But, we don't have decade or more.  IMO.  2013 will be tell tale though - judging by market behavior (manipulated or not, it is lens through which we can see the movement of $). 


Snakeeyes's picture

Fed manipulation, Administration manipulation, Congressional manipulation, Big crony corporationism, screwing senior citizens, etc.

The Fiscal Cliff bill was the last straw. We are officially the NEW Soviet Union. Comrade.


ball-and-chain's picture

The Ivy Leage Mafia is amazing.

These Harvard and Princeton boys can keep the Ponzi scheme going with smoke and mirrors.

I stand in awe.

Now that's how you steal!


SAT 800's picture

just a note to say I shorted the ESH3 today on the CME; from 1459. that's the March '13 contract for the S&P 500. I think the stock market people are carried away with animal spirits, or some kind of spirits, and the chart looks ridiculous; so I sold two contracts; $100/pt. going down, and we'll see how this works out. As Mike Tyson said, "Everybody has a plan until they get punched in the face". If I get punched in the face, you'll be the first to know. I feel strongly enough about this trade to recommend it; but you know I'm not always right; just most of thime. Cheers.

RopeADope's picture

Good luck with that. Now all you need is politicians and central bankers to keep their prevaricating selves hidden long enough or your face will get ripped off.

Jack Burton's picture

The world's richest 100 people may have gotten 241 billion dollars richer, but they earned it and created millions of jobs in the process.

Who would argue that?

The Federal reserve has taken it as a new mandate to maintain equity share prices in the markets, to always be there to prop up the markets at any sign of a correction. To inject liquidity as necessary to boost share prices and to maintain ZIRP to try and force savers into equities.

This is all part of the free market. The 100 richest people in the world realize this and invest accordingly. Thus they made 241 billion dollars and proved themselves to be smarter and harder working than any others. The free and open markets reward hard work and enterprise. These 100 people prove that hard work pays. Bernanke is a hero, he has saved the world. Where would we be without Bernanke and the free, fair and open markets he supports?

bobert's picture

Sincerely funny aren't you?

CPL's picture

Didn't even need to put a /sarc tag it was that good.

EnslavethechildrenforBen's picture

That talent is too good to waste, should be working for CNBC...

nope-1004's picture

MDB changed his name.  Junked too many times under the old monicker.


SAT 800's picture

The fuck are you talking about? man rich people in that level don't do anything for anybody. cheez; louise. get a grip. oh, I see; you're just joking. ha. ha. had me going there for a  minute.

AldoHux_IV's picture

*drinks whatever alcohol is available* 2013 is the year the status quo goes all propaganda on dat ass-- not good for sanity, temper, nor logic.

Babpfefingesicht bitches

Jack Burton's picture

No chance. Jack Burton [of "Big Trouble in Little China"] , is no Million Dollar Bonus, though I appreciate his ability to use sarc to show how absurd those who hold the beliefs he pretends to hold are.

Most of my posts are straight up what I think and believe. But I admit the "full on sarc" is somethimes the best way to approach things like the 100 richest people in the world cashing in to the tune of 241 billion dollars at a time of financial and economic crisis. It shows that the cnetral bankers can reward their pals even as real economies tank.

There is always a risk in sarc. SOme will not get it and adding a sarc tag seems to defeat the purpose. As MDB never uses that sarc tag, many attack him not getting where he is coming from. MDB is really someone you have to "get", or it all goes past you.

Dionysus's picture

MDB is Zero Hedge's Stephen Colbert.  His "sincerity" as he parrots the economic propaganda spread by the corporate media in the US illuminates its absurdity, particularly when juxtaposed to the publications of Zero Hedge, and he is always in character.

Element's picture



Can we leave the TV freak-shows and their phoney false-hero hosts out of it? They are all reading scripts, and when script guidence changes, so will they. They sell commercial air-time for corporate mass-media for a living, and they love doing it.

It's as simple as that.

The Shootist's picture

I want to punch that dipshit colbert in his retarded face.

Jack Burton's picture

Yes, just so. That is MDB for sure!

GMadScientist's picture

brown_hornet -> more brown, than hornet.

Dr Benway's picture

So to save our world they destroy our children's world?

EnslavethechildrenforBen's picture

Save our world?

Have you looked outside lately?


A Lunatic's picture

I don't know if I can handle being constantly saved much longer...............

Conax's picture


Cool Hand Luke: "I wish you'd stop being so nice to me, boss."

LeisureSmith's picture

Drop Napalm to save the village. Just common sense.

SAT 800's picture

I think the actual quote was, "We had to destroy the village to save it"; and it is one of those quotes that defines a new age; as Dorothy's said to her little Dog, "We're not in Kansas anymore".

TruthBeforeAll's picture

Or as the Nazi mass executioner replied when asked "How can you do this?"...

"How can we not? Look at them, they just stand there awaiting their fate. We are doing them a favor."

GMadScientist's picture

To save themselves, they're pretending to save our world, and you are destroying your children's world by letting them.


tooriskytoinvest's picture

The Difficult Part Is Still Ahead: Analysts Just Sharply Scaled-Back Forecasts For Tech And Financial Results For Q4 2012, Debt Ceiling Fight Will Add Fuel To The Fire, And Many Wall Street Experts Expect The Bond Bubble To Burst Very Soon



bobert's picture


Re; The bursting bond bubble. Have you considered investments that can do well if this happens?