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Does This Look Like An "Adverse Scenario"?
The chart below summarizes the "unprecedented" balance sheet and income statement "stress" that the Fed envisions would occur in its draconian "Adverse Case." Ok, we give up: we seriously don't get the joke here. Can someone please explain?
and the tabular version - the red and green arrows show the actual downturns before things start to improve...
Finally, what happens in the "Adverse" case when the Fed stops printing money?
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Adverse case = STOP PRINTING MONEY OUT OF THIN AIR TO BENEFIT CRONIES... This will not be allowed to occur... If Bernanke gets cold feet, we have another jew 'Yellen' on deck to make things right for the cause...
~~~
Translation: BTF[joobuck]D
Remember these news releases are for the machines not people. HFTs understand exactly what this means - BUY BUY BUY!
So...is this for the self aggrandizement of the criminal syndicate known as Wall Street, or is this for me, to encourage me to go all in on shares of JPM?
You know...they used to at least pretend....
The Fed's Playbook has been inadvertantly revealed...
NO. BANKER. LEFT. BEHIND. EVER.
Whatever it takes come Hell or Hyperinflation... they are going to print any major dip in equities into the stratosphere...
The banks are the Fed; the Fed is the banks. It's very zen.
They're one big, happy, incestuous family, so of course they're going to look out for each other. You never take sides against the family.
Now it is extend and pretend, and at least your not a day late or a dollar short.
notice they stress for equities and home prices...but not for USTs...
Don't worry yourself into any sleepless nights over UST's...
They will buy the fucking shit out of treasuries just to keep 'market' interest rates low until whilst singing to the tune of "Go Gideon Gono Go..." the wheels finally blow off of this shitmobile 'recovery' and we all end up upside down in a feces filled ditch somewhere in Zimbabweland...
With signposts saying "Starving billionaire". Or maybe trillionaire.
Haulin' ass, gettin' paid!
https://s3.amazonaws.com/lardbiscuit/pix/idiotcash.jpg
Looks like we are behind schedule. We only have 16 trading days left to drop the dow 4000 pts.
It would fit with the theory of long registered poster ekm who is preaching a financial meltdown will happen at the end of this month. His arguments are all based around oil prices, demand and supply. He seems 100% certain of this and hasn't said anything to this extent here ever before.
THATS BECAUSE ITS THE S&P, HAHAHAHAHAHAHHAHAHAH
THEY MISLABELED IT
So......
The Intuitively Obvious becomes the New Black Swan, courtesy of a mislabeled graph.
Par for the course
(No, its not a golf joke)
I really thought your initial post in text was a joke. Of course the joke is on us.
I believe that The Onion has touched on this recently:
BALTIMORE—Economists expressed shock this week as the value of the U.S. dollar plunged by more than 98 percent after Baltimore Ravens quarterback Joe Flacco signed the NFL’s richest contract.
Flacco, who was ranked 19th in the NFL for completion percentage during the 2012 season, received a six-year, $120.6 million deal, abruptly triggering the most catastrophic collapse of U.S. currency in American history.
“Unfortunately, the discouraging reports that Joe Flacco is now the highest-paid player in the NFL have had a devastating impact on U.S. exchange rates,” said chairman of the Federal Reserve Ben Bernanke, chastising the Ravens for the disastrous and irresponsible financial mistake that severely crippled the purchasing power of the dollar. “It was an ill-advised and reckless move to pay that much money to a quarterback who has never been selected to a Pro Bowl.”
“The Baltimore Ravens have single-handedly made the dollar worthless,” added Bernanke.
The Federal Reserve confirmed the value of the dollar was pummeled by Flacco’s $29 million signing bonus, which alone made the U.S. currency less valuable than the Indonesian rupiah and the Tanzanian shilling. In addition, global anxiety over specific details of the agreement, which included $52 million in guaranteed money for a quarterback who threw fewer touchdowns in 2012 than Josh Freeman, Andy Dalton, and Tony Romo, has thrown world markets into chaos.
more here:
http://www.theonion.com/articles/value-of-us-dollar-plummets-after-joe-f...
11 touchdown passes... ZERO interceptions... Winner of a ROAD playoff game in EACH year as an NFL pro & 'winningest' ROAD playoff QB in NFL history [at the age of 28]...
~~~
Eat that Peyton Manning, Tom Brady, Andrew Luck, & Colin Kaepernick... [& Drew Brees, Aaron Rodgers, or Joe Montana... for that matter]
Congrats on your 'Pro Bowl' invites...
Glad to see that you're arguing with the substance of an article published by The Onion. Presumably too many of their writers are Jews.
The VIX wouldn't stay mid 50's for quarters at a time, it's in its nature to be "spikey"
I don't have a clue what the charts mean, but I do know we're all fucked no matter what they do or don't do.
Funny, that was said at the last Goldman Partners meeting at Lew's Coke and Hooker Quickie Stop
ok...sell now and buy in june, if everyone does it this scenario will play out....also everyone will be filthy rich in 2015
I love the smell of Napalm burning on Treasury bonds in the morning.
It's a crooked smiley face!
It has all the sober, intellectual honesty and rigor of Colin Powell's presentation to the United Nations about Iraq's weapons of mass destruction.
THEY SHOULD HAVE ADDED A ZERO...YOU KNOW, MAKE IT REALLY FUNNY
The chart stops 10 sigmas too short. The Chart should top out at $25 Trillion. Never let a parabolic(vertical) curve show an implied endpoint.
Just kidding. I see support under 10k, so the adverse scenario implies a mid 4000's market value.
If I don't participate, will I be considered an enemy combatant on US soil?
"Thank you sir, may I have another!?!"
All of us here at Fight Club are considered combatants.
So what they're saying is, go all in in December 2013 and in two years I will have more than doubled my money.
WOW, IT'S SO EASY EVEN A 16 YEAR OLD SLUT CAN DO IT!!!!!!!!!
How about a stress test where the market drops 10% AND banks actually have to mark to market instead of altering FAS rules to ensure they pass?
shit crashes Oct 87 style?
"...Finally, what happens in the "Adverse" case when the Fed stops printing money?..."
oh ye of little faith.....the fed will never stop printing, and if it comes to that, the cia and state department will instigate a war someplace - oh on american soil , perhaps, against alleged combatants for which it will buy fleets of drones.....
Nice move from 7200 to 15000 in two years. Wonder how many trillion more the Fed will need to create in order to pump that move?
if we drop from 14k to 7k, trillions will have been wiped out in the casino
carte blanche for the Fed to restart the game and this time w/o the derivative gorillas
Not sure How I feel about paying for that 74 page report. Couldn't we have bought another drone or two for that?
Armed drones sound familiar.
Dow Jones Total Stock Market Index, not Dow Jones Industrials ?
http://www.djindexes.com/totalstockmarket/
DJ US Total Stock Market Index is currently about 16K, so at least that would explain the "adverse scenario part", if not the huge gap down.
The footnote on Scribd page 40/74 (numbered page 34) says "U.S. Dow Jones Total Stock Market Index", so that's probably the explanation:
http://www.scribd.com/doc/129176508/DFAST-2013-results-20130307
ZH is missing the point here. The adverse scenario was designed to mimic a rates shock. In any case, equities risk is pretty meaningless at any bank compared to credit and rates risk.
Huh?
Their scenario projects the DOW to recover from 7,000 back up to 15,000 by Q4 of 2015?
That would be over twice as fast as 2009-2013.
Do they have $14 Trillion of QE5-9 on tap?
This must be the plan.
RUN!
Looks like a CYA projection so what ever happens, they can say we didn't know. However, perhaps there is some truth hidden in there that they do know will happen?
.
2013 Dow 15000 calls
its a telegraph. It's just looking at the Baltimore Raven's superbowl playbook only Benny is putting out for the "buds" to see.
is it FRY-DAY yet?
I think it means that while things may look a little gloomy at the moment just around the corner something wonderful is going to happen.
Just you wait and see Mr grumpy Gus.
that's the apple-facebook-linkedin-groupon composite index