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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q99x2's picture

Something saved the world? I missed it. What happened?

Element's picture



OT: Looks like both sides finally realized they need to get serious and work together to get this done.


Fatah rally in Gaza marks unity bid with Hamas
January 05, 2013 12:46 AM
Associated Press
GAZA CITY: Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza Friday for the first time since they were routed from power there in 2007.
The rally, approved by Gaza’s Hamas rulers, marks a renewed attempt by the rival Palestinian factions to show unity following a fierce Hamas battle with Israel in November and Fatah’s subsequent recognition bid at the United Nations.


These two sides were so polarized and separated as to be irreconcilable, but now they obviously respect each others capacities and contributions. That outcome is a result of a protracted series of catastrophic policies from a very low-grade Israeli leadership, plus a gaggle of outmoded elites.

GMadScientist's picture

Fatah and Hamas fall in and out of love more than teenagers on MDMA and spanish fly.

One might consider it master manipulation by that low-grade Israeli leadership that has kept them in-fighting with each other for so long.

I miss Yassir; that dude was good TV. ;)

Mr. Hudson'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."

Martial law "yes". Civil unrest "yes", but any civil unrest will be squelched immediately. Look at what happened in Wisconsin. Look at what happened to Occupy Wall Street. People will protest, but it will prove to be ineffective against a tyrannical government. Americans are too divided and too scared of the government to take a serious stand against our corrupt political system.

Quaderratic Probing's picture

Good point if your already divided you are about to be conquered.

Inthemix96's picture

While I understand where you are coming from Mr. Hudson,

Just remember last year in the big apple.  New Yorks finest going after a lone-gunman who shot his ex-boss to death.  Now remember the reaction of the over-weight police officers who proceded to aprehend this criminal.

They shot the whole place up friend, they injured 11 innocent people as they fired indescriminantly all over the place, as the lone gunman calmly popped off to heaven.

You have fuck all to fear if this is the standard response to a lone gunman, much calmer and more level-headed folks could take out a fucking platoon of New York's finest if need be, (after watching this incident).

If it comes, it will come, prepare accordingly

adr's picture

I have family members who can pick off a deer cleanly from 100 yards with a hunting rifle. Not just kill it, pick it off as to not spoil an ounce of meat.

There might be one or two guys on a squad that can shoot, the rest carry a weapon and don't know how to use it.

That is why They want to take away the guns. They know they are no match for a group of angry white hunters with everything to lose.

falak pema's picture

this article hits the nail on the head. THe current trajectory of the PREVIOUS manipulation; aka the Reaganomics-Thatcherist mantra has created this Oligarchy world of short term capitalism and deregulated supply side hegemony.

Now having created this model, we are sowing what we have reaped.

So the "sin" that we have propagated, aka financialisation on massive scale and the resultant "outsourcing to cheap labour countries", is now coming home to roost.

The 2008 meltdown and the knee jerk of Oligarchs to save their wealth all based on BORROWED money, by transferring the debt on the public balance sheet and stashing their fiat/WS asset wealth in Caymanista investment vehicles, is now unsustainable.

SO this whole QE/Draghi shenanigans is nothing more than smoke and mirrors to maintain this criminal status quo. 2012 is but the outcome of a 30 year mad spree where we neglected peak OIL purposely, and stepped on the fiat accelerator like a mad driver on Route 66 to land of milk n honey; all for free! 

Why now cry about what has transpired since 2008 if you don't go back to the source of that original sin?

The hegemonial "statist" model was already then in place! Only the rest of the world suffered it, not the first world  consumers, invited to participate in the fiat debt fest. Ad Nauseum. "THe sun never sets on our NWO perpetual capitalist machine!"...Shades of thousand year Reich! 

Having had the rug pulled out from under their feet AS A RESULT OF THEIR OWN MAD HUBRIS, the Oligarchs now say to the first world people: game over. You burn, we stay safe! 

Damn right, despotism and police state coming to first world big time. Cairo and Baghdad, Saigon and Kabul are now on equal footing with Athens today, Barcelona tommorow and GOtham CIty in five years down the road.

What you sow you reap. That is history. Don't cry for me Argentina! 

And btw don't blame Keynes! He must be laffing his head off up there! 

sessinpo's picture

The world was saved?

GMadScientist's picture

Just don't look directly at the stack of derivatives, or mark anything to market, or stop QE and you'll be fine.

"They called him Mother Theresa, on account of the length of his habit."

Racer's picture

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

That's on par for stupidity with Biden's  'have to spend money to stop from going bankrupt'

eddiebe's picture

If I was one of the 100 riches with their masters of the world mind-set I would probaly try to kill off 3/4 of the world population. They don't need all of us messing up their and their childrens world and using up all the resources. 

Look out below!

Uskatex's picture

In fact, I am really surprised that the last big pandemic outbreak was the Asian flu in 1958. Since then, despite the huge increase in world population and in population concentration in large cities, we had no pandemics, at least in the form of a rapidly spreading illness like flu. AIDS is another history.

I hope this lack of pandemics may last, but I too, if I were one of the "masters" - with no ethics - would seriously consider "clean" ways to reduce world population. Let's be prepared...

max2205's picture

The world was saved. Except 52% oF Americans and a shitload of Euro people are poor as fuck

But the world was saved, right?

falak pema's picture

Concerning a subject that ZH has often treated here aka the US car manufacturing industry spike and "channel stuffing".

THe statistics for 2012 are out and they tell their own story. Sale of vehicles is up  by 13.4 % in 2012. Total sales in US now eqaul 14.5 million vehicles. Out of this GM has 17.9 % share (down from 19.6 in 2011) and Ford has 15.5 (down from 16.8 in 2011).

Toyota comes in third at 14.4 % with Chrysler 4th at 11.4%.

This does not sound like channel stuffing. This is solid growth, unlike in Euro zone which is in meltdown. 

Also, for 2013 onwards the prediction is volume will increase back to over 16 million vehicles; going upto to 15.3 Milln this year.

REminder 2005 high was 17 million vehicles. The industry looks like becoming a cash cow again.

Any comments on this? 

falak pema's picture

GM playing at Fannie n Fred??

ekm's picture

Hyundai and Kia are selling under cost in France. French found out about it because Peugeot and Renault were not selling.

GMadScientist's picture

How many had more than 0.5% down at purchase? ;)

Also...how many of those are fleet purchases from gubbamint block grants for who knows what?

"Jesus, fire up the Escalade; it's time to deliver your friends here to the ICE detention center"

dark pools of soros's picture

Once the gov'ment steps in they don't step out...  the UAW will be allowed to slowly die (new hires are screwed) while the top brass will just dine with the lobbyists to keep the contracts rolling in and the loose loans for the unwashed


AynRandFan's picture

The fact that Fed manipulation has worked for 4 years running is fueling the perception that nothing can ever go wrong with the government in control of the economy.  A good example is the idiocy of bailing out NY and NJ with $60 billion we don't have.  What Chuck Shumer calls "unconscionable" if we don't.  That's the kind of arrogance that will take us down eventually.

GMadScientist's picture

He's the Senator from NY, WTF did you expect him to say?!

D'you think he's the one that loaded the bill with unrelated pork?

Don't get me wrong. I fucking hate Chuckie "Where's My Check?" Schumer and consider him a disgrace to the senate floor, but trying to slam the guy's rhetoric in defense of his state? That's just libertarded!

AynRandFan's picture

I'm slamming the guy's rhetoric because it is a good example of the arrogance that's taking this country down.  He could have argued from the standpoint of the inability of his state to provide the needed infrastructure and other improvements.  But, instead he argued that it was "unconscionable" to deny any amount of money those states asked for, as if there is an unlimited supply of money at the federal level and we are greedy bastards if we don't give it to them.

Get it?

dark pools of soros's picture

it is because all balance sheets have to be ran at a negative since holding money is a sin via ZIRP.  So of course when disaster strikes the hands come out for beggin as 'it's not their fault that bad things happen'

spend everything you can and when anything bad happens, say 'how could anyone of known?' and get in line for a bailout

polo007's picture


The people who came to Wall Street in the 1960's had always been – and expected always to be – winners. They had been presidents of their high school classes, varsity team captains, and honor students. They were bright, attractive, out-going and ambitious. They were willing to work hard and take chances because our society had given them many and frequent rewards for such behavior. They had gone to Yale and the Marines and Harvard Business School. And they were quick to recognize that the big Winner's Game was being played in Wall Street.

It was a glorious, wonderful, euphoric time. It was a time when almost anybody who was smart and willing to work hard could win. And almost all of us did.

The trouble with Winner's Games is that they tend to self-destruct because they attract too much attention and too many players – all of whom want to win. (That's why gold rushes finish ugly.) But in the short run, the rushing in of more and more players seeking to win expands the apparent reward. And that's what happened in Wall Street during the 1960's. Riding the tide of a bull market, institutional investors obtained such splendid rates of return in equities that more and more money was turned over to them – particularly in mutual funds and pension funds – which fueled the continuation of their own bull market. Institutional investing was a Winner's Game and the winners knew that by playing it faster, they would increase the rate of winnings. But in the process, a basic change occurred in the investment environment; the market came to be dominated by the institutions.

In just ten years, the market activities of the investing institutions have gone from only 30 percent of total public transactions to a whopping 70 per cent. And that has made all the difference. No longer are the "New Breed on Wall Street" in the minority; they are now the majority. The professional money manager isn't competing any longer with amateurs who are out of touch with the market; now he competes with other experts.

DR's picture

"The market value of global equities increased by about $6.5 trillion last year"


Ok, if the hedge funds didn't buy into the stock market and Ma & Pa are pulling out of stock mutual funds and the retail investor has been absent, who the hell bought into this market to make it go so high?


Oh wait, I see that name Blankfein mentioned in the article. Could it be that the Primary Dealers are levering the sh$t out of the stock market using the funds of QE generosity?

Man, its like 2008 never happened.

orangegeek's picture

Volume has been in a steady decline since 2011 as shown on the SP500 weekly.




Every last tactic is being used to pull buyers in before the turn down - including blatant misrepresentations (lying) of economic data.

resurger's picture

"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"

Summed nicely