• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Behold The Horror Of The Sequester... In Context

Tyler Durden's picture


Behold the sheer austerity-inducing horror and pure, mortal terror of the, dum dum dum, SEKWESTER!!! Do not pass go and proceed straight to Armageddon.

h/t @Not_jim_cramer

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Mon, 02/25/2013 - 16:30 | 3274908 Ruffcut
Ruffcut's picture

The big O'Turd has given the big bird his walking papers.

Mon, 02/25/2013 - 16:36 | 3274941 Supernova Born
Supernova Born's picture

...and the mountain that dwarfs the Sequester molehill sits like Vesuvius over Pompeii.

Strike a pose when it blows.

Mon, 02/25/2013 - 16:47 | 3274969 hedgeless_horseman
hedgeless_horseman's picture



Speaking of putting whores in context, don't worry about these little healthy market corrections "...sudden evaporations of meaningful prices for many major exchange-listed stocks in the middle of a trading day."  Mary better still be on it nearly three years later.

"The absurd result of valuable stocks being executed for a penny likely was attributable to the use of a practice called “stub quoting.” When a market order is submitted for a stock, if available liquidity has already been taken out, the market order will seek the next available liquidity, regardless of price. When a market maker’s liquidity has been exhausted, or if it is unwilling to provide liquidity, it may at that time submit what is called a stub quote – for example, an offer to buy a given stock at a penny. A stub quote is essentially a place holder quote because that quote would never – it is thought – be reached. When a market order is seeking liquidity and the only liquidity available is a penny-priced stub quote, the market order, by its terms, will execute against the stub quote. In this respect, automated trading systems will follow their coded logic regardless of outcome, while human involvement likely would have prevented these orders from executing at absurd prices. As noted below, we are reviewing the practice of displaying stub quotes that are never intended to be executed."


-Mary Schapiro
May 2010

A new test appeared on January 8, 2013. Some of the more nefarious algos run tests by rapidly placing and canceling orders in a way to fool other algorithms into showing themselves, to freak humans out, or in this case to artificially create stub quotes. Stub quotes, a significant cause of bad fills during the Flash Crash, were banned by the SEC. Well, here's one way an algo can appear to meet Stub Quote requirements, but back-off the market in a way that all the benefits of stub quotes remain intact.



Feel better?

Mon, 02/25/2013 - 16:48 | 3275002 MillionDollarBoner_
MillionDollarBoner_'s picture


Mary can't come to the phone right now.

She is being spit-roasted by Gary and Bart.

As soon as they are done they will be right on it...

Mon, 02/25/2013 - 16:59 | 3275050 Pinto Currency
Pinto Currency's picture


There is no way the economy can reach "escape velocity" unless our central banks and government together continue to print and spend money that does not exist while increasing the debt.

Mon, 02/25/2013 - 18:19 | 3275448 wisefool
wisefool's picture

Sarc: The technological breakthrough we need is drones that can enforce the tax code. Not only the wet work, but also the brainwork. Think of the children! Think of Lord Maynard Keynes! Worst case:  TARP 'em and kick the can 'till it will work properly.

Mon, 02/25/2013 - 18:39 | 3275522 francis_sawyer
francis_sawyer's picture

THE SEQUESTER [narrated by Marlon Brando]


"I’ve seen horrors, horrors that you’ve seen. But you have no right to call me a murderer. You have a right to kill me. You have a right to do that, but you have no right to judge me. It’s impossible for words to describe what is necessary to those who do not know what horror means...

....Horror. Horror has a face...And you must make a friend of horror. Horror and moral terror are your friends. If they are not then they are enemies to be feared. They are truly enemies. I remember when I was with Special Forces...Seems a thousand centuries ago...We went into a camp to innoculate the children. We left the camp after we had innoculated the children for Polio, and this old man came running after us and he was crying. He couldn't see. We went back there and they had come and hacked off every innoculated arm. There they were in a pile...A pile of little arms. And I remember...I...I...I cried...I wept like some grandmother. I wanted to tear my teeth out. I didn't know what I wanted to do. And I want to remember it. I never want to forget it. I never want to forget. And then I realized...like I was shot...Like I was shot with a diamond...a diamond bullet right through my forehead...And I thought: My God...the genius of that. The genius. The will to do that. Perfect, genuine, complete, crystalline, pure. And then I realized they were stronger than we. Because they could stand that these were not monsters...These were men...trained cadres...these men who fought with their hearts, who had families, who had children, who were filled with love...but they had the strength...the strength...to do that. If I had ten divisions of those men our troubles here would be over very quickly...

You have to have men who are moral...and at the same time who are able to utilize their primordal instincts to kill without feeling...without passion...without judgement...without judgement. Because it's judgement that defeats us."

Mon, 02/25/2013 - 18:43 | 3275538 Oldwood
Oldwood's picture

Was that Obama's State of The Union speech?

Mon, 02/25/2013 - 18:47 | 3275551 francis_sawyer
francis_sawyer's picture

No ~ it was when he yipped the 2 footer on 18 for the hockey stick instead of the snowman...

Mon, 02/25/2013 - 19:58 | 3275798 Big Slick
Big Slick's picture

Problem is GDP is overestimated by 35%.  That makes sequester... well, still kinda small

Mon, 02/25/2013 - 20:24 | 3275873 willwork4food
willwork4food's picture

If my 2013 bonus and 10% raise comes through next year, I'll still be able to afford the credit card's 5% minimum.

I should still have enough to go online until then.



Mon, 02/25/2013 - 20:00 | 3275807 The Thunder Child
The Thunder Child's picture

The US Dollar and most of the economy is on Fed life support and the prognosis is terminal. Once Obama signs the UN small arms treaty at the end of March they will pull the plug.

Mon, 02/25/2013 - 19:30 | 3275710 nmewn
nmewn's picture

Nah, I believe you're thinking of his "new era of responsibility" speech back in 2009...said another way...about 5.5 trillion in debt ago.

Mon, 02/25/2013 - 18:24 | 3275473 Freebird
Freebird's picture

hat tip Lol

Mon, 02/25/2013 - 16:59 | 3275004 Pinto Currency
Pinto Currency's picture

dbl post

Mon, 02/25/2013 - 16:49 | 3275005 Joe Davola
Joe Davola's picture

GIGO strikes again!

Mon, 02/25/2013 - 16:37 | 3274954 James_Cole
James_Cole's picture

I keep reading that it's no big deal at all only to have some random article appear that the sequester will be the end of western civilization as we know it, complete with quotes from .gov

It's a funny mix. 

Mon, 02/25/2013 - 16:48 | 3275000 macholatte
macholatte's picture



It's called propaganda and is designed to demonize anyone who opposes the Progressives. The concept of doing something to benefit the people is irrelevant. Controlling the sheeple is what's important.


Rhetorical Criticism 101:  Republican members of Congress are not rational, they have “dangerous” thoughts and they do “odious” things to the American people.

MSNBC, With Ex-Obama Aides, Now Almost ‘A Bona Fide Organ of State Propaganda’


Mon, 02/25/2013 - 18:44 | 3275542 Oldwood
Oldwood's picture

The thing is that Obama can make his threats come true!

Mon, 02/25/2013 - 19:58 | 3275799 NotApplicable
NotApplicable's picture

Puppets don't make threats.

Is it really so impossible for people to see through the facade?

Obama is a NOBODY, like all of the other "leaders." They appear lifelike only to the ability to respond to the pulling of the strings. ALL of them are instantly replacable, should they ever forget the fact.

Just ask JFK.

Mon, 02/25/2013 - 20:16 | 3275830 AssFire
AssFire's picture

Is it really so impossible for people to see through the facade?

To his promise- He is the most transparent, I see right through that MF.


Well, that NOBODY increased my "Negro Fatigue" worse than ever before. Never seen the country more divided, races so sick and tired of one another.

I think he has made my opinion of all Negro's ability to actually produce something of material value decrease ten-fold.

Mon, 02/25/2013 - 20:20 | 3275853 nmewn
nmewn's picture

Well puppet or not, it needs to be brought to everyones attention where this latest iteration of "can kicking" (sequester) came from.

It came from the White House.

So if we're searching for puppet masters, we would also need to know who...in the WH.

"The president and Lew had this wrong. My extensive reporting for my book “The Price of Politics” shows that the automatic spending cuts were initiated by the White House and were the brainchild of Lew and White House congressional relations chief Rob Nabors — probably the foremost experts on budget issues in the senior ranks of the federal government."


Suuurprise, suuurprise, suuurprise.

It's Jack Lew (who will be voted in as the new Treasury Secretary tomorrow) and Gomer Pyle's distant cousin ;-)

Mon, 02/25/2013 - 20:24 | 3275870 tip e. canoe
tip e. canoe's picture

i have the suspicion that Hagel was nominated solely to divert attention from Lew's confirmation so that he could fly under the radar.

Mon, 02/25/2013 - 21:16 | 3276051 nmewn
nmewn's picture

I think you're right...these guys are great at distraction and they don't mind being caught red-handed in their lies so their short term plan can succeed. But this course of action doesn't have much of a shelf life, as the lies pile up, another distraction is needed to divert attention from the last lie instead of their long term plan...just like debt and dams...it piles up against them with no relief in sight...but to tell yet another lie or distract.

People begin to become concerned with the integrity of the dam ;-)

Mon, 02/25/2013 - 21:48 | 3276147 tip e. canoe
tip e. canoe's picture

funny, was just having the same conversation with a local Dem party chair this weekend.   (don't worry, our get together was completely unrelated to politics.)   based on that conversation, have a strong feeling that the cracks are beginning to be noticable to even the ol' faithful.   still may take awhile to fully break the cogdis, but the tide is a'risin fo sure.

also had a lively discussion about the hidden similarities between the hippies & the rednecks.  you woulda enjoyed that one!

Mon, 02/25/2013 - 22:53 | 3276360 nmewn
nmewn's picture

lol...I was a democrat for years...still consider myself (liberal)...don't tell anyone ;-)

But anti-progressive to the max as you've noticed, which is statist-Marxist.

They lost me on gun rights, fiscal responsibility and the ever growing federal state. The other side talks a good game but when it comes right down to it...they want to be re-elected in order to spend other peoples money the way they want to spend it.

They don't say..."Look at the money I stole from someone else"...which is true. They say..."I brought your tax dollars back home."...which is mostly false depending on where you live.

Such tripe.

Why send the dollars away from "home" to DC in the first place? So, the feds can get their cut?...what a racket.

Its a devolutionary process, reverse engineering, we're working on it...don't believe everything you hear about TeaBaggers...lol.

Mon, 02/25/2013 - 23:12 | 3276414 tip e. canoe
tip e. canoe's picture

as someone who identifies as a halfbreed of the two, i choose to strongly believe that if the hippies & the rednecks ever learned to respect (not necessarily resolve) each other's differences, they would create a political & cultural force so strong that they could wipe out the statists, fascists & parasites in relatively short order.    this is most likely why so much time & energy is spent in keeping them at each others' throats.  

(note to nsa: i'm speaking in spiritual terms, not physical ones, so put your drone back in your pocket)

Tue, 02/26/2013 - 19:12 | 3279676 nmewn
nmewn's picture

Well, you're right tip, people are predisposed to pigeon-holing other people...hell, I'm guilty of it...we're only human.

Being born in the South, I have natural inclinations, toward fishing, hunting, football (college), independence to the point of jealously obsessing over it. Being a "freak" as we called ourselves back in the day (same as a hippy, just without the Marxism) and a beach bum it starts getting pretty hard to do it with "my kind".

Native Floridians have always been a little hard to understand/relate to...we really don't mind smugglers (of all types) because its in our blood...same with booze taxes.

The biggest clashes used to be between hippies and rednecks...and rednecks & bikers...not so much anymore. As the generations move by the "old rednecks" die off replaced by their son's & daughters...me & you...and we realize we have more in common than our parents might have had.

And we're not hung up about saying so ;-)

Mon, 02/25/2013 - 16:35 | 3274931 RockyRacoon
RockyRacoon's picture

Nice images. 

It's a hoot to watch the MSM get all hyperventilated about the newest Warshenden DC brou-ho-hum.

It won't get serious until... well, when it gets serious-er.

My newest acquisition, a nice roll of ASEs, is giving comfort in these tumultuous times.

Mon, 02/25/2013 - 16:58 | 3275047 Harbanger
Harbanger's picture

Our Press and Prez thrive on fear mongering.  It empowers them, it's crisis management 101.  if we don't do xyz, then it's all over, the children will starve.  That's how they fool the fools into geting in line.

Mon, 02/25/2013 - 16:34 | 3274938 redpill
redpill's picture

And yet somehow the first things that must be cut are veteran healthcare and aid to the poor, right?


Mon, 02/25/2013 - 16:40 | 3274955 RockyRacoon
RockyRacoon's picture

Naturally, that's what stirs the innards of the common folk.  Gramma getting hosed will work every time, or our "brave heroes in uniform".

Taxes on the rich won't "Fix" the problem in its entirety, so we can't do that.

Stopping meals on wheels won't fix it either, but that's what gets proposed.

I say throw every one of them under the nearest bus: Rich, poor, granny, wars.... everyone.

Got any better ideas?  IF not, just watch while Nero fiddles and DC burns.   I kinda like the whole idea.

Mon, 02/25/2013 - 16:46 | 3274992 redpill
redpill's picture

Let's list out all the things we spend money on and have a national referendum on what percentage of funding they should each receive.  What percentage do you think overseas drone warfare is going to get in a popular vote?

Mon, 02/25/2013 - 16:50 | 3275006 blu
blu's picture

Well that depends. Are there any oil contracts put at risk from not flying the drones?

Mon, 02/25/2013 - 16:50 | 3275008 Joe Davola
Joe Davola's picture

Are we talking actual votes, or reported votes?

Mon, 02/25/2013 - 17:46 | 3275287 A82EBA
A82EBA's picture

if only we controlled the us

Mon, 02/25/2013 - 18:16 | 3275440 toothpicker
toothpicker's picture

MOAR trickle down effect!! It works so good. Pour champagne on the rich so they can piss on us

Mon, 02/25/2013 - 19:09 | 3275619 Everybodys All ...
Everybodys All American's picture

Overseas. How about the one straight up over our heads?

Mon, 02/25/2013 - 20:00 | 3275806 NotApplicable
NotApplicable's picture

That sure is a LOT of blue pill talk, there.

Mon, 02/25/2013 - 16:50 | 3274994 FEDbuster
FEDbuster's picture

Never cut the Obama's staff and travel budgets.  Maybe they don't need a projectionist on staff 24/7 at the White House, or the $100K+/yr presidential dog handler?  Give me a fucking break.  Moochelle "don't let them eat cake" Obama's personal staff of 60+ people, come on.



Mon, 02/25/2013 - 17:27 | 3275199 ForTheWorld
ForTheWorld's picture

The interesting thing is that the British Royal Family only costs the British taxpayer $60 million a year. I wonder how many other income streams they have.

Mon, 02/25/2013 - 19:58 | 3275795 FEDbuster
FEDbuster's picture

I would venture to guess the Windsors are founding, dividend receiving shareholders of the US Federal Reserve Bank. 

Mon, 02/25/2013 - 20:18 | 3275848 Richard III
Richard III's picture

Upon the founding of the Federal Reserve in 1913, the Ancestral House of the ruling Family was known as Saxe-Coburg and Gotha -- The Great War and King George's familial relation to the Kaiser made them...the "Windsors."

Mon, 02/25/2013 - 18:55 | 3275580 Overfed
Overfed's picture

And as any prog will tell ya', they're worth every penny!

Mon, 02/25/2013 - 19:10 | 3275623 Everybodys All ...
Everybodys All American's picture

Do you realize that Obama and Michelle think they are JayZ and Beyonce. Can't cut the staff. Can't.

Mon, 02/25/2013 - 19:33 | 3275728 nmewn
nmewn's picture

Can't touch dis!

Mon, 02/25/2013 - 20:04 | 3275812 NotApplicable
NotApplicable's picture

Obummer and JayZ both wanna be each other, as they are both pretenders looking to be great. Beyonce is the only one of the four with any skills worth having.


Mon, 02/25/2013 - 20:15 | 3275847 ncdirtdigger
ncdirtdigger's picture

When did being a fat ass become a talent?

Mon, 02/25/2013 - 20:25 | 3275877 tip e. canoe
tip e. canoe's picture

too bad she sold her soul to the devil.

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