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BHP's CEO On The Disconnect Between Reality And Markets

Submitted by Tyler Durden on 03/12/2013 15:51 -0400

"...we've had volatile times and I think while the world has on balance, poured a lot more into equities; the reality is that the underlying situation in the world has probably not changed as much as the equity markets reflect."

Marius J. Kloppers, CEO BHP Billiton

(h/t @GreekFire23)

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Tue, 03/12/2013 - 15:54 | 3323593 zorba THE GREEK

No kidding?

Tue, 03/12/2013 - 15:56 | 3323609 McMolotov

File it under "No Shit, Sherlock."

Tue, 03/12/2013 - 15:58 | 3323613 Say What Again

I was beginning to wonder if it was just me that felt that way.

Nice to get some validation.

Tue, 03/12/2013 - 16:01 | 3323620 american eyedol

another new alltime high and cnbc loves it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Tue, 03/12/2013 - 16:06 | 3323635 flacon

That quote was the understatement of the year (so far).

Tue, 03/12/2013 - 18:35 | 3324118 TwoShortPlanks

Oh dear, is this a hint that people are waking up to the rescinding of 'Supply & Demand' and the emergence of that hypothetical 'Price Is A Function Of Liquidity' Dragon....*slaps knee*....Well-I'll-be!

Tue, 03/12/2013 - 19:59 | 3324335 Spirit Of Truth

There's national security intelligence, and then there's Wall Street's irrational collective beliefs and expectations. They could never be farther apart IMHO:

http://www.secondkoreanwar.com

A source from northerly Hoeryeong in North Hamkyung Province told Daily NK today, “Before the [ROK-U.S. ‘Key Resolve-Foal Eagle’] military exercises started on the 11th, orders were handed down telling us to raise the readiness posture one step from ‘combat mobilization.’” Therefore, he added, “There will be high level drills for a week, including not just underground training but also some combined drills involving simulated enemy action.”

But most importantly, the source said he had heard from military cadres that “sometime today or tomorrow there will be an important announcement.” It is unclear when the announcement will occur or what it is set to reveal, but the source predicted that a quasi-state of war could be declared.

“There have been orders to distribute all reserve supplies to the people. The emergency supplies stored in the No. 2 Depot have been sent out to public distribution locations,” he said. “They are just waiting for the order to distribute it.”

http://www.dailynk.com/english/read.php?cataId=nk01500&num=10394

Tue, 03/12/2013 - 16:03 | 3323625 McMolotov

I've noticed those around me who never pay attention to the stock market saying "WTF?" any time they hear something about these All-Time Highs™. Not sure how long this disconnect can go on without people getting pissed.

Tue, 03/12/2013 - 16:10 | 3323646 Panafrican Funk...

Translation: "I was totally fine with this fake ass rally until my stock started cratering. Sour grapes, bitchez!"

http://www.finviz.com/quote.ashx?t=BHP

Tue, 03/12/2013 - 16:05 | 3323633 kliguy38

Bill - "Maria were going into the last hour and what are the chances we could actually finish green?"

Maria - gushing- "I don't know Bill but if we do I'm having a double Scotch an water and jumping Art tonight."

Tue, 03/12/2013 - 15:55 | 3323597 fonzannoon

Kloppers!

Tue, 03/12/2013 - 15:59 | 3323608 NoDebt

He's just bitter about that deal that came apart on him a couple years ago.

Besides, we don't need real growth or even a real economy any more. We're all going to get rich by printing more money. Done and done.

I know what you're thinking- making everyone rich by selling houses to eachother a few years back didn't work out so well. But this isn't that. This time will be different. We're actually printing real money and spreading it around. Now I ask you- how could this possibly fail?

Tue, 03/12/2013 - 16:13 | 3323660 slightlyskeptical

I'm still waiting for my free money. I check the maIl every day.

maybe i need to start looking for all these boats which have had "accidents"?

Tue, 03/12/2013 - 15:58 | 3323610 MFLTucson

And it took 14,500 on the Dow Industrial Fraud Index to wake this man up? I would fire hiim if I were on that board.

Tue, 03/12/2013 - 16:01 | 3323618 fonzannoon

these cnbc fucktards are actually trying to create suspense about a 1 point gain or loss in the dow.

Tue, 03/12/2013 - 16:35 | 3323745 kito

jeezes christmas, why do you torture yourself and drain valuable energy by continuing to support their ratings fonz!!!???????????

Tue, 03/12/2013 - 17:15 | 3323855 fonzannoon

Me? How about Tyler(s)?

Tue, 03/12/2013 - 17:23 | 3323891 kito

you promised you were done with mainstreammedia!!!!!!!!!!!!!!!!

Tue, 03/12/2013 - 17:35 | 3323925 fonzannoon

My house is under construction. I am home too damn much with the tv on. My dog ate my homework. I have not been myself lately. It's not you it's me.

Tue, 03/12/2013 - 17:57 | 3323999 kito

hows the bathroom coming along? got any more copper pipes to donate??????

Tue, 03/12/2013 - 19:10 | 3324197 fonzannoon

i want to take one and knock myself unconscious.

Tue, 03/12/2013 - 22:25 | 3324718 kito

lol

Tue, 03/12/2013 - 16:03 | 3323624 The Invisible Foot

Come on guys we'll be fine...just don't look down.

Tue, 03/12/2013 - 16:07 | 3323637 McMolotov

The Great Rotation isn't happening, so we're trying the Great Levitation instead.

Tue, 03/12/2013 - 16:06 | 3323634 thismarketisrigged

what a fucking joke. somehow we go positive on the day. i was actually hoping we would just so i could laugh so hard.

if we r not going to get a major sell off today, might as well have the good laugh at the plus 2 pt gain

Tue, 03/12/2013 - 16:07 | 3323636 El Hosel

BHP sells to China, China makes stuff..... BHP needs to get with the program and start selling paper.

Tue, 03/12/2013 - 16:08 | 3323640 Rayfp65

Translation=BTFD

Tue, 03/12/2013 - 16:09 | 3323642 Lady Heather...UNCLE

An example of stating the bleedin' obvious. But 85bio/month 4ever says the disconnect increases

Tue, 03/12/2013 - 16:10 | 3323649 Dewey Cheatum Howe

I think this was filed under the wrong topic and should be under tuesday humor.

Tue, 03/12/2013 - 16:10 | 3323651 EmmittFitzhume

The ZH ads went back to gold from TD Ameritrade. Hmmmm...

Tue, 03/12/2013 - 19:13 | 3324205 Clowns on Acid

Hmmm..my ZH ads went back to gold...but from "Meet Single Thai women". I already have gold....

Tue, 03/12/2013 - 16:11 | 3323653 ebworthen

Dunno, I hear equity managers say that people "would be crazy" not to buy into equities, but it appears from the data that they are not willing to get fooled again.

Equity fund manager today on CNBC actually commented that mom and pop are avoiding equities like the plague.

I'm certain CEO's would like us all to get fooled again and fund their salaries but the low volume HFT algo run FED funded Swiss cheese markets are a mouse trap waiting to be tripped.

Tue, 03/12/2013 - 16:11 | 3323657 flacon

I bought DIA puts at the closing bell today.... Perhaps tomorrow we will get a correction.

Tue, 03/12/2013 - 16:12 | 3323658 kito

hey kloppers, the world has changed as much as the stock market...........unfortunately the world has been going in the opposite direction of that acid trip known as the stock market.........................

Tue, 03/12/2013 - 16:13 | 3323664 Piranhanoia

or, "I don't know what I am talking about but I like my voice and would like to be a DJ on a radio station that plays very short songs so I can interrupt them a lot."

Tue, 03/12/2013 - 16:14 | 3323668 Lewshine

GEE...You friggin think Einstein????

Tue, 03/12/2013 - 16:15 | 3323671 orangegeek

Hey Kloppers. You have an incredible grasp of the FUCKING OBVIOUS.

Tue, 03/12/2013 - 16:17 | 3323674 SilverMaples

And how long are you going to keep giving away BHP's resssources at the future market prices at the expenses of the shareholders Mr. CEO?

Tue, 03/12/2013 - 16:18 | 3323679 wcvarones

What new highs? Deflate it by M2, gold, oil, anything tangible and there is no "rush into equities."

Tue, 03/12/2013 - 16:32 | 3323730 kito

when are you bringing back jrdeputyaccountant???

Tue, 03/12/2013 - 16:38 | 3323761 q99x2

the reality is that the underlying situation in the world has probably not changed as much as the equity markets reflect.

What year was this insight pronounced? The guys a freaking genius.

Tue, 03/12/2013 - 17:27 | 3323902 secret_sam

Equities are going to hedge against inflation better than SOME things.

Considering that the equities market is declining in *real* terms, I'm not sure why he thinks that doesn't properly represent the underlying reality.

Tue, 03/12/2013 - 19:23 | 3324244 Clowns on Acid

When the people start to wake up and understand POMO, they will have jumped CNBC's shark guppy.

Then watch the PM price and hoarding begin to rise.

Why doesn't CNBC show the POMO schedule for the month every morning so that the people can see that the Fed is printing and buying? Then show a flowchart of how the POMO $ gets into the stock market.

Cue Rick Santelli:

"When buying Bonds or MBS from banks every month (day) for a total of $85B = banks get cash = do not lend because of credit standards = so buy equities because Fed is arbitrarily and capriciously keeping interest rates negative. Crushing savers and forcing people up the risk curve.

Ok ...so they are cruching VXX as well and you can buy cheap insurance."

Tue, 03/12/2013 - 21:59 | 3324657 Nassim

Stranded hotel sign of mining bust

http://www.theage.com.au/business/mining-and-resources/stranded-hotel-si...

Wed, 03/13/2013 - 03:44 | 3325190 dunce

China is the demand driver and his company is the supplier, he has his finger on the pulse of the worlds economy. He sees the orders coming in every morning or not. He does not need to extensive data mining and analysis.

BHP's CEO On The Disconnect Between Reality And Markets

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