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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Bansters-in-my- feces's picture

They are laughing at us.

Atomizer's picture

Crony capitalism & Banks are making a killing with EBT cards/unemployment. The more people that engage into program will drive higher 2013 GDP growth margins thru transactions fees.


otto skorzeny's picture

kind of like 40% of walmart's grocery sales come from EBT cards, and remind me again why ANYONE in corporate america(including the MSM) want anything to change.

otto skorzeny's picture

that slimy little hebe blankfein and a bunch of his 12 tribesman masters of the universe cashed out 65 million in stock options the last few days of 2012 to avoid the jump in cap gains-I'm sure that whole fucking charade fiscal cliff wasn't scripted.

sitenine's picture

“One of the big risks that people have to contemplate is that things go right.”

What the fuck is that even supposed to mean?

Vendetta's picture

It means there is a 0.00003% chance that all the bailouts and stuff done to 'save the system' might work.

Disenchanted's picture


“One of the big risks that people have to contemplate is that things go right.”

What the fuck is that even supposed to mean?


To me it means that if real and true justice is ever served, maggots like Lloyd 'God's Work' Blankfein will swing from lamp posts. And he knows it. "People" to Lloyd Blankfein doesn't include all of us. Things are going wrong right now, and Blankfein and his 'people' profit from that.

But I'm a twisted sumbitch so maybe I'm wrong...

btw as to Lloyd and "God's Work"

King James Version:
But you shall be named the Priests of the LORD: men shall call you the Ministers of our God: you shall eat the riches of the Gentiles, and in their glory shall you boast yourselves. ~ Isaiah 61:6


American Standard Version:
But ye shall be named the priests of Jehovah; men shall call you the ministers of our God: ye shall eat the wealth of the nations, and in their glory shall ye boast yourselves. ~ Isaiah 61:6


Ask Greece about eating the wealth of a nation...

Yen Cross's picture

  Any Questions?   global money supply 2012 - Google Search

    Mean while we are back to 2008 levels in the markets, and gasoline is/was 1.83 a gallon.


CunnyFunt's picture

They will pump the markets until their arms fall off, amigo.

All that "sterilized" liquidity works wonders.

Yen Cross's picture

 Cunny, please don't fall into the trap. <>  Q-4 earnings/ According to the Fed. their ballance sheet hasn't expanded, due to twist/

  I call bullshit, and the MBS $45b program is not ordinary bond purchasing. I think the fed. is scared. A spike of 25 basis points on T-10s on a rumor?  1.60-1.95% over a couple of weeks?

  Those lying schleps in congress are fucking everyone/

bobert's picture

Yen: Heretofore has not the Fed confined itself to asset purchases that were backed only by the good faith and credit of the US Government? And now by purchasing MBS's they are getting into collateral backed assets(?) Oh wow is me. What are we to do?

Yen Cross's picture

 bobert;  Do you think S/T bond buybacks are the answer? (reverse repos)


bobert's picture

I think the Federal Reserve should reduce purchases at every level.

I'm bothered by the manipuated low rates.

They might want to get out ahead of S&P and Moody's on this.

Yen Cross's picture

bobert, S&P -Moody's has been telegraphing this next move for months. What I see happening is one of the smaller ratings Co.'s downgrading.

  Fitch/Egan Jones.  Real ratings agencies!

bobert's picture

I can understand their hesitancy.

Remeber what happened to S&P's CEO soon after their downgrade of the US debt. Got himself fired.

I'm all for Fitch.


Yen Cross's picture

Good on you. Thanks for sharing your thoughts. Personally I'll watch credit risk VOL's and F/X flows.

GMadScientist's picture

"Heretofore has not the Fed confined itself to asset purchases that were backed only by the good faith and credit of the US Government?"

No, not even close...the world's biggest prop desk and Maiden Lane 1-3 come to mind.

CunnyFunt's picture

YC, I know they are scared. The minutes are complete ass-covering statements and they want to avoid downgrades. It will cool off when the EU takes up the headlines and then, with another Draghiesque jaw boning, it will be risk on.

BTW, did you get a hardon when you woke up on Jan. 2? I hope you made a good bet on the fiscal cliff bullshit.

Yen Cross's picture

 I have to admit , I was leaning towards that trade. You have to consider sequesteration in February, and Q-4 earnings. ( macro issues)

  Then we move into PIIG's bond paybacks in 2013.

CunnyFunt's picture

I'm looking for a near-term pullback in the DXY. If it has enough effect for me to dump my February longs, then I'll be happy. All the CBs have to keep in line.

Yen Cross's picture

Huge Cunny/ Look @ the H-4 chart.   Dealers are caught short/ Your trade S/T is sweetness. DON'T GET GREEDY

CunnyFunt's picture

I try not to be greedy, that's why I've programmed my sell orders.

I'm scaling back on trading this year, only low-hanging fruit now. Last year, my doom trades got hammered. I think I got caught up in all the 2012 bullshit.

Any views on natty?

Yen Cross's picture

 Need moar macro B/S. Cunny/ The rubber.band is getting stretched. Those LTRO notes are more than 1/2 way in to maturity.

  If the Fed want's to talk about pulling (supply) back in, then they need to discuss OIS lending to European banks, and liquidity.

 Tyler was correct when he discussed euro repatriation in December.

ActionFive's picture

What is a H-4 chart? Four hour?

Vendetta's picture

I disagree, I don't think the Fed is scared of anything ... if it ends of failing ... they'll just shrug.  The individuals connected with the Fed have probably been stacking hand over fist in various locations around the world since Sept 2008

WTFx10's picture

They are afraid of Americans with still legal right to own weapons.

Guns don't kill banksters, Debt slaves with guns kill banksters.

The ass kissers of the inbred royals have been stripped of their weapons but they have been conditioned to be loyal subjects for hundreds of years. There was never a violent revolution to dispose of these elite criminals. Just a transformation of how the people think they are being governed. Wipe the royals and their bankers and the banksters puppets from the earth, the feudalism, fascism, socialism, elitism, all the isms the owners keep us fighting over will finally end?   100,000's of thousands will die in this cleansing of the criminality and exploitation of the planet. Will it save millions from dying in another world war of their making? Will something better evolve from that? Who the fuck knows?

It will end violently when ever is starts, because it always has. Its the finish I like to think will be better but it won't. Exploitation by the owners is better than evolving for the rest of us because they do not want to be like the rest of us. They will orchestrate the murder of millions and still own all they have stolen,exploited and subjugated.

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." John Dalberg Lord Acton

bobert's picture

S&P 500 and gas at the pump are somehow bifurcated. Will these two correlate again?

TheSilverJournal's picture

In nominal terms, they'll both go to the moon, but it in real terms, oil will dramatically outperform the S&P 500.

SAT 800's picture

Exactly. Keep this right in the front part of your mind. it happens just barely slowly enough that people adapt and bitch and then it becomes the new normal; basically what the Muslim bought us so far is double the price of gas and no job; but there's more fun comin, fer sure. The analogy of boiling the frog by turning up the heat so slow he don't notice it's not a hot tub until he just nods off and takes a permanent nap, is an excellent one.

disabledvet's picture

I had a lawyer one time who was convinced his mail was being read. Having friends who worked in that place I had to tell him "they're too busy to do that." They really are...and so are the so called "Central Planners." The idea that they have any idea what they're doing vis a vis "economic implications" is assigning motivation WAY beyond they're pay grade. The only thing The Chairman is doing is ramming interest rates "at or near zero" in order to finance (illegally i might add) an out of control Federal Government. PERIOD. Anything happening to do with "it" just "happens to be." And that's it folks!

bobert's picture

(The girl in the "Bad Idea Tea Shirt" ad at the left of my screen as I type this is driving me crazy.)

Anyway...what I was goin to say Vet was: Perhaps you are correct, or perhaps they at the top are not completely unified yet.


khakuda's picture

...damn it, now I'm getting Christian dating ads. Going to hell.

khakuda's picture

I love the girl in the t shirt ads on ZH. I try and surf as much porn as possible prior to reading ZH just to prime the google ad servers

bobert's picture

Must of been my kids.

Honest I didn't do it.

SAT 800's picture

damn; that's a good excuse for surfin porn. I wish I was so lucky; I got picture of that goddam indonesian half-bastard hand puppet of a "president" on my left half. fuckin makes me want to barf.

bobert's picture

Yeah, what link have you been clicking on?

On second thought never mind :)

It's going to be a long four years isn't it?

G nite.

Vendetta's picture

"It's going to be a long four years isn't it?"

The 'bright side' will be that by the time BO's 4 years are done, it is highly likely this farce-n-fraud economy will be so wrecked even his supporters will be cursing him.  His 'legacy' will be spit for all of time and his kids will be hearing it for the rest of their lives.

ArkansasAngie's picture

And ... with uncle Benny making the trend line positive 99% of the time ... well ... he's made it impossoble for shitheads like Goldman and BOA to hardly ever have a losing day.

Talking about money laundering!!!!!!!

May they all rot in hell

GMadScientist's picture

Now now, they're perfectly capable of toddling up to the discount window themselves now that they're all holding companies; they can manipulate just fine without The Sacko / The Henry, but they'd rather pump up those reserves with Ben so they need never stress over stress tests.


"May they all rot in hell"

Pretty much what they wish for the American people.

MarkTwainsMustache's picture

"The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it." 
Adam Smith

khakuda's picture

It is hard to imagine that Ben Bernanke does not go down in the history books as THE man that pushed the dollar, the reserve currency of its day, over the edge into a major currency crisis with his infinite money printing. The dollar will lose reserve status as a result of his policies and, try as they will, they will only have themselves to blame.

economessed's picture

Best quote of the decade: "It's not a market.  It's a crime scene."

adr's picture

While the market soared my business soured as I found out the Hliday 2012 sales numbers. Getting to see the Dec EDI report across my sector, including the results of about 100 other companies, was rather eye opening.

You want to hear the numbers from Walmart, Target, etc? Do you really want to know? You might not like it.

30% of the ordered inventory sold, including pre Christmas markdowns. From a buy that was already cut 40% in August.

30% OF THE INVENTORY SOLD. Pathetic does't even cover it. There is no cash to buy new inventory for 2013. 2012 RETAIL WAS A TOTAL JOKE. Every reported number by a publicly traded retailer might as well have come from the BLS.

But remember US auto sales were the best since 2007, hahahaha with almost 900k cars left on GM lots at the end of the year.

SAT 800's picture

No shit; those are some serious numbers. If this is a fuckin recovery, I'd rather be sick, thanks anyway.

ekm's picture

I thank you for sharing these numbes with us.

Your posts are quite realistic and I always learn something.

Thx again.

adr's picture

Thanks for the compliment. I just try to give a glimpse into the world of selling into the ticker symbols that seem to behave irrationally based on what I see. It's like being in the infantry, having a general sitting in Washington telling you the battle is going well, and you're watching everyone get blown away. Then you watched the field commander that led 1000 soldiers to their death get promoted.

I should add that I will be getting updated numbers next week on the clearance sale. Much of the temporary display inventory gets sent back to the vendors because it was bought using guaranteed sale terms.

Items on the shelf are put on clearance at Target. Walmart just ships back to vendors, or sells the inventory off to international wholesalers. Sometimes Walmart will just leave inventory in the store for years at full price. Target did sell the majority of their Christmas seasonal inventory post holiday, however they did so at 50% off and then 75% off. I won't get this breakdown until next week.

The #1 toy at Target this year by volume was Lego sets. 75% of the inventory sold during the BOGO 50% sale.

I guess the story is that the American consumer will no longer buy anything unless it is on sale. I think JC Penney proved that.

WhiskeyTangoFoxtrot's picture

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

No offense to Mike Krieger, but NO SHIT! Anyone with half a brain could see this coming. Now we shift to figure out how to deal with it.

Yen Cross's picture

 Markets are 2007 levels. (4 trillion dollars) and 100% increase in commodites later. Dark inventory and shadow banking are just the same.

  That Mother Fucker John Corzine has a trading license, and I can't buy a "Big Gulp" in Shitsville.

R we better off Bitchez?