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Sam Zell: "The Stock Market Feels Like The Housing Market Of 2006"

Tyler Durden's picture


Instead of the endless procession of "different this time", "buy-the-dip", "money-on-the-sidelines" asset-gathering, Muppet-fleecers that CNBC so typically trots out, Sam Zell graced them with his presence and the truth was allowed a voice for a few minutes. Joined by David Rosenberg, who clarifies the insanity that engulfs US equities, explaining in wonderment that it is "not surprising the market rises even in the face of bad ISMs, worse jobs, and worst NFIB data, because Japan and the US are embarking on a gargantuan quantitative easing that is the lynchpin behind the stock market." It is not about being bullish, or bearish, or agnostic, it is understanding the driver of this market - and that is not the economy, not earnings, "it is the mother of all liquidity-driven rallies." Maria B, soundbite in hand, is slammed for her "glibness" at not fighting the Fed but it is Sam Zell's brutal honesty that shocks even the money-honey. "This is a very treacherous market," Zell explains - thanks to the giant tsunami of liquidity, "the problems of 2007 haven't been dealt with," and given the poor macro data and earnings, "we are suffering through another irrational exuberance," leaving the entire CNBC audience speechless when he concludes, "the stock market feels like the housing market of 2006." 

Maria B:

"So don't fight the Fed?"


"That's a pretty glib comment for what is going on. You could have fought the Fed in 2000 and 2009 and done quite well... [thanks to the Fed] the market will tend to drift up - until something breaks."


"We're debasing our currencies around the world.. which ultimately translates into a lot of inflation."


"What we are seeing here is like a giant tsunami of liquidity."


"People look at the market and think things are better. The level of uncertainty has reached a point where people are just throwing money [at risky assets] because they don't know what else to do with it."


"I would not be adding money to the stock market. This is a very treacherous market."


"Yes, it's gone up every day. Yes, you're not supposed to fight the Fed, but sitting on the sidelines is preferable."


"In our businesses, we are not seeing strong conditions."


"The problems leading up to 2007 haven't been dealt with."


Then at 6:00

Zell:"The current stock market feels like the housing market of 2006. Everybody can't afford to miss it."


Maria B: "That's a scary comment."


Zell: "Why? Every single day it goes up. What were the headlines in 2006 - housing prices going up every day. What are you talking about every day now - new high in stocks every day!"


"We are suffering through another irrational exuberance."



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Wed, 04/10/2013 - 22:36 | 3434974 taniquetil
taniquetil's picture

We've all been waiting for this:



Wed, 04/10/2013 - 23:01 | 3435054 Key-Rick
Key-Rick's picture

Don't fight the fed!!!  As long as uncle Ben keeps printing, stocks will continue their upward explosion. Who can swim upstream against a $85,000,000,000 a month current?

Wed, 04/10/2013 - 23:36 | 3435158 markmotive
markmotive's picture

There certainly is a lot of downside risk.

But as long as Central Banks keep dropping 'carpet bombs of liquidity' - as Sprott puts it - shouldn't we just play the game?

Wed, 04/10/2013 - 23:58 | 3435219 mayhem_korner
mayhem_korner's picture

shouldn't we just play the game?


Just by saying that you are playing exactly the game they intend for you.  The only thing that matters in the game, however, is your place in line when everyone heads for the exits.  If you believe you can outrun a front-running HFT algo, my best to ya.

Thu, 04/11/2013 - 01:35 | 3435356 Pinto Currency
Pinto Currency's picture


Obama official told Kyle Bass their intention was to "kill the dollar".

They are well on their way to achieving their goal (and thus creating starvation and social chaos in the U.S.).

Thu, 04/11/2013 - 02:18 | 3435402 Rogue Trooper
Rogue Trooper's picture

Fuck this is soooooooo Ground Hog Day.

Haven't watched the clip but I assume the 'talking heads' laughed Sam off the screen?

Better to watch this (interesting version)

Into the blue again, after the money's gone 
Once in a lifetime, water flowing underground 
Same as it ever was, same as it ever was, same as it ever was, same as it ever was 
Same as it ever was, same as it ever was, same as it ever was, same as it ever was 

Thu, 04/11/2013 - 04:49 | 3435493 quintago
quintago's picture

We pay taxes to service the debt the Treasury issues, and the FED feeds. Why is there any expectation that they would pull back on the reins?

Why do you expect the FED to do anything different. If our government empowers the FED to lend and purchase debt, it will continue unabated so long as you and I continue to hustle every day to pay the taxes to service that debt.

Thu, 04/11/2013 - 06:07 | 3435529 smlbizman
smlbizman's picture

man i would love to waterboard torture her, but only use the board.....she is the perfect example of why spanish chicks are so hot and stay hot....why? ...cause i dont have a clue what the senoritas are saying...

Thu, 04/11/2013 - 09:18 | 3435618 GetZeeGold
GetZeeGold's picture



We're on double secret probation now.


Keep smiling and always keep one hand on the ejection handle.

Thu, 04/11/2013 - 11:45 | 3436661 kaa1016
kaa1016's picture

CNBC right now talking about how Sam Zell said the stock market feels like housing in 2006. Instead of debating the call itself, they instead try to discredit what he said by rolling a tape of some of his wrong calls on housing over the last few years. This ladies and gentlemen is how I know that we are at a market top.

Thu, 04/11/2013 - 05:21 | 3435505 WhiteNight123129
WhiteNight123129's picture

The Weakness is not in the stock market but in the bond market.

Thu, 04/11/2013 - 10:14 | 3436092 darrenstory
darrenstory's picture

That was a nice way to start the morning. 


But ... I can DANCE better than that guy!

Thu, 04/11/2013 - 10:12 | 3436084 optionsman
optionsman's picture

IMHO, current waves of currency war or competitive devaluation around the globe will only benefit the US even though everyone knows that one cannot win a currency competitive devaluation. Perhaps a good way to see how this currency war benefits the US is by comparing it to the arms race with the former USSR back in the day. Soviets lost, the US won. the outcome of this currency war is going to be the same. hence the US equities, USD etc. will outperform in the long run despite the fundamentals.

Thu, 04/11/2013 - 11:51 | 3436696 Thisson
Thisson's picture

That's a naive view.  Yes, the soviets went bankrupt first, but that is a far cry from saying that the US benefitted from the cold war.  The waste on both sides was incredible, and there is no way to know the outcome of the "null case" where we spent our resources on actual productive investments, research, etc instead of wasting those resources on warfare.  And all these many years later, we are still stuck with the debts and interest payments, and the "peace dividend" has been diverted to the oligarchs.

Thu, 04/11/2013 - 05:58 | 3435524 world_debt_slave
world_debt_slave's picture

IMO we should not play their game, I got out of the stock market in 2000 after the tech bubble burst b/c of the manipulation. 2004 bought some silver after reading Griffins book "The Creature from Jekyl Island".

Thu, 04/11/2013 - 09:23 | 3435895 spankthebernank
spankthebernank's picture

It's funny to watch Bartiromo be so fucking stupid, or ACT so fucking stupid.  Trying to frame the conversation with Zell to say that its ok to debase our currency for nominal gains in the stock market makes me queasy.

I feel quite sorry for any young burgeoning investors out there trying to figure out what end is up in this age of constant disinformation. 

Viva Zero Hedge

Thu, 04/11/2013 - 10:28 | 3436158 Taterboy
Taterboy's picture

Bad Zell, bad Zell! He scared Maria! Bad Zell!

Wed, 04/10/2013 - 23:37 | 3435166 mayhem_korner
mayhem_korner's picture



The only winning move is not to play.

(War Games)

Wed, 04/10/2013 - 23:53 | 3435210 RockyRacoon
RockyRacoon's picture

I watched this circus as it unfolded.  I was amazed that ole Sam didn't get the hook.

Drag him out of the building and throw him in the street for his blasphemy!

Thu, 04/11/2013 - 00:41 | 3435289 RaceToTheBottom
RaceToTheBottom's picture

Maria Bottleroma.... Stupid snatch

Thu, 04/11/2013 - 03:08 | 3435431 new game
new game's picture

i say you are an idiot if you watch this trash - do you like to be provoked by high paid spineless face socks?

i says you are not one bit better than them-oh keep watching you fucking idiot...

bet ya listem to right wing stuff like rush too. loosers...

hey try thinking for yourself. formulate an idea based on the principles like bass or dr paul craig roberts(if you have a brain that doesn't just soak water).

wrink out the spounge loosers...

Thu, 04/11/2013 - 05:05 | 3435498 Disenchanted
Disenchanted's picture

I like what you're saying new game, but your presentation needs a little work.

+/- 0


btw, I don't listen to 'left' or 'right' wing losers...

Thu, 04/11/2013 - 07:58 | 3435641 new game
new game's picture

yea, the presentation is rough(upon reread), but i am fed up with hearing about cnbc. i disconnected cable 8 years ago, never registered at facelost, and don't have a numb phone.  yea i'm in a cave, but trust me my club works just fine..

now to beat some sense into the few left standing...

Thu, 04/11/2013 - 08:50 | 3435783 samcontrol
samcontrol's picture

why live like a caveman before they take us there. You'll be long gone buddy by then.

Thu, 04/11/2013 - 15:53 | 3437855 SilverDOG
SilverDOG's picture




They will take you there, only to find those caves occupied by us. You'll be in long line and ill prepared

and assetless.

Why live in a farce, to be sacrificed during transition.

Caves are, and will remain, top dollar.

Caves are not your fear based Scooby Doo "rut ro".

You get a Scooby snack if you figure out the most blatant clue thereof.

Thu, 04/11/2013 - 09:00 | 3435817 Disenchanted
Disenchanted's picture




"but i am fed up with hearing about cnbc."


Me I can't even watch them with the sound on mute. Didn't even bother pressing play on the clip above, because I have zero interest in anything anyone says on CNBS.

I have no FB, a dumb phone and 0 apps. I also search the web/internets on my ancient desktop, not google(as in a verb).

I like my cave.

Thu, 04/11/2013 - 08:12 | 3435661 mckee
mckee's picture

lighten up Francis

Thu, 04/11/2013 - 06:23 | 3435545 spankfish
spankfish's picture

Hedley Lamarr: Wait a minute... there might be legal precedent. Of course! Land-snatching!
[grabs a law book]
Hedley Lamarr: Land, land... "Land: see Snatch."

Thu, 04/11/2013 - 04:19 | 3435460 mdtrader
mdtrader's picture

In late 2007 Wall Street analysts said the same. Don't fight the FED, they are cutting rates and banking crisis is probably a 2 quarter event! The market fell 50% next. The market feels just as complacent now. Eventually something will happen that rocks the market, whether it's a natural disaster, man made disaster, econimic disaster or an earnings disaster. The world is still full of risk despite what the stock market thinks. The trouble is when something bad happens now, the central bankers have no bullets left to fire!

Thu, 04/11/2013 - 07:21 | 3435596 BandGap
BandGap's picture

Like the final scene in The Good, the Bad and the Ugly. It's not a matter of anything other than who draws first. Then the bullets fly (unless soemone unloaded your gun).

Wed, 04/10/2013 - 23:22 | 3435116 Salah
Salah's picture

What takes out this market and the whole QE paradigm back to the 1930's will be a 'natsec event' that cascades into a series of bigger, serialized 'NATSEC' events.  As a whole they undermine the entire post Cold War world.

And now's the time for all that to happen...pick a place, pick the contenders.  More importantly, the current planetary astro-matrix is AWFUL; a fart in church could set this thing off.




Wed, 04/10/2013 - 23:55 | 3435215 candyman
candyman's picture

And from the Elliott Wave folks, long term, " Then after a Major wave 4 correction, another uptrend should follow to complete Primary III. So if we are indeed in Intermediate wave iv of Major 3, we still have three more uptrends, after this correction, before the bull market concludes in the spring of 2014." <paraphrase>

Thu, 04/11/2013 - 10:00 | 3436042 Fukushima Sam
Fukushima Sam's picture

Models don't mean much when the signaling mechanism is massively manipulated.

Thu, 04/11/2013 - 06:48 | 3435565 justinius1969
justinius1969's picture

 What a stupid CUNT...

I cant wait to her face when all this blows up...

Thu, 04/11/2013 - 08:53 | 3435793 marketexpress
marketexpress's picture

We have totally opposite situation in india we are making new lows when world market is making new highs


i think so key is

Thu, 04/11/2013 - 09:35 | 3435940 SheepDog-One
SheepDog-One's picture

Gold, minus another -28....just brutal out there for anyone with a bit of sanity left!

Wed, 04/10/2013 - 22:38 | 3434975 Mr. Fix
Mr. Fix's picture

It may be time to get out of this market,

 In fact it's been time for a long time,

 but those that are still in it when the music finally stops,  will not have much to show for it.

 The music is about to stop.

Wed, 04/10/2013 - 22:51 | 3435012 Banksters
Banksters's picture



As long as bernank prints, it seems to go up.  I'm not suggesting this is good. Data sucks, market goes up.  


We'll see.

Wed, 04/10/2013 - 23:12 | 3435079 DormRoom
DormRoom's picture

This logic is similar to the one that caused the financial collapse, namely the belief that housing prices will never go down.  Today, investors belief Central Bankers will not let the stock markets drop, so they recklessly buy up risk asset,s until the day when the Central Banks are impotent (hyperinflation, stagflation, EU collapse, thermonuclear war).  Then the financial collapse will be EPIC.

Providing liquidity into a super-structure that is unsustainable, and woefully inefficient because of prior misallocation of capital is not a sound strategy.  You're simply keeping the zombies alive when they should all die. 


Wed, 04/10/2013 - 23:26 | 3435126 Banksters
Banksters's picture

Agreed. I've kept my strategy to short on political instability and god awful news.   

I know many who have shorted off of fundamentals and gotten steam rolled.


I think the disgust goes like this:  FUCK YOU BERNANK


I feel for those folks. I really do.   

Thu, 04/11/2013 - 00:06 | 3435232 Freddie
Freddie's picture

Look - I am back to flipping condos which is obviously much safer than bitcoin.  (sarc)

Thu, 04/11/2013 - 08:55 | 3435796 samcontrol
samcontrol's picture

flipping condos is way safer than bitcoin...98% know condos, who has ever heard of bitcoin around the world...
Zh not being he world.

Thu, 04/11/2013 - 00:06 | 3435234 sun tzu
sun tzu's picture

In the stock market, investors are playing with their own money. In the housing market, investors were playing with the lenders money with zero down loans

Thu, 04/11/2013 - 00:45 | 3435292 RaceToTheBottom
RaceToTheBottom's picture

Banksters are playing with Fractional lending of free money from the fed.  That is like Inverse skin in the game....

Thu, 04/11/2013 - 16:41 | 3438077 Radical Marijuana
Radical Marijuana's picture

"Irrational exuberance" is such an excellent euphemism for runaway financial fraud.

The way that we RaceToTheBottom is paradoxically by zooming to the top of an exponential growth curve of creating money out of nothing as debts, that has become a rocket ride almost straight up ... which then must eventually result in some tipping point in the foreseeable future ... where, at that turning point, we will have OVERSHOT, and therefore, must fall back down.

Thus, we are inside an endless series of bubbles of "irrational exuberance,"  where each new bubble has the same basic driver, which is being able to make "money" out of nothing, and therefore, those who can do that find every possible excuse to do that MOAR!!!

I loved the cute turn of the phrase, that since we live inside of an "inverted totalitarianism" there is "Inverse skin in the game."


Since the mainstream pundits refuse to recognized the fundamental fraudulence of the established monetary system, they spout the superficial psychological euphemisms, like "irrational exuberance," to pretend to explain what is happening. We are actually racing to the bottom by shooting at the moon, like an arrow that must fall back down.

... exactly when and where, of course, I do not know ...

BUT, since money is actually backed by murder, since this financial fraud only works because it is backed by the force of government, when this "irrational exuberance" OVERSHOOTS AND CRASHES INTO CHAOS, THERE WILL BE MOAR MASS MURDERS TO PAY FOR WHAT HAS BEEN DONE!

Thu, 04/11/2013 - 09:35 | 3435924 Shizzmoney
Shizzmoney's picture

This is the "doomsday" scenario......however, I foresee a Japan-like decline here in the US when SHTF (starting in 2015).  The bottom won't fall off completely - the system will crumble like feta.

If you look back at the end of presidental terms since 1970, they have always ended with a crash or serious market downturn.

Nixon had the end of Bretton Woods (and the start of oil inflation...which would contagion to Ford via a Kuwait Stock Market crash in 1973, and Carter with major inflation in 1980, spurred on by the Iran conflict..which was due to oil pressures). 

Reagan and Clinton had stock market crashes based off of inflated asset prices and the fact that computers may NOT be the best way to run a market (because they can be manipulated).  Bush had the housing debacle, spurred on by Fed driven deregulation. 

And Obama will have sovereign bonds (so will other countries: UK, Japan, EZ).

This will cause politicians to react to the bond holders...and completely ignore the public. 

They'll threaten to haircut pensions and 401Ks if Congress doesn't "compromise" to cut Social Security and other programs.  It will be legislation at gunpoint, like in 2007 (this is incredibily easy to manipulate because of our bought off Congressional system). 

Basically, if the political hacks don't do what the banks and corporations want: they get no cash.  And Cash > Votes (because cash = more votes).

Broken windows will result.  Maybe for a long time.  It won't be fun.


Wed, 04/10/2013 - 23:14 | 3435089 Sabibaby
Sabibaby's picture


Because the value of what is being printing goes down. 

Just because you're earning more money doesn't mean you're doing better if at the same time the price of gas, food, and common utilities goes up.

Wed, 04/10/2013 - 23:24 | 3435124 Almost Solvent
Almost Solvent's picture

Whoa there.

Drop the truth stick and sloooooowly back into buying AAPL.

Wed, 04/10/2013 - 23:41 | 3435180 Sabibaby
Sabibaby's picture

What's the point of existance with out an iPhone? 

People would be blowing there brains out if there were ever a "peak iPhone"

Thu, 04/11/2013 - 00:19 | 3435250 Freddie
Freddie's picture

I saw 5 kids around early high school age walking the other day. 4 girls and a boy. All the girls were staring at their cell phone. There is no personal interaction among them.  I see this everywhere.

Thu, 04/11/2013 - 00:58 | 3435312 Prometheus418
Prometheus418's picture

Just so you know, and I can retain my status as a guy who doesn't do drive-by junks, I down voted you for the backhanded Bitcoin support comment, but gave you an "up" for this one.

It's been too long a day, so I don't care to comment further- just letting you know that my vote was a net of zero.

Thu, 04/11/2013 - 02:17 | 3435396 Ratscam
Ratscam's picture

it already happened twice to me. In shock I had to slam full brakes because some walking teenager starred at his/her smart phone then swerving into the middle of the street while typing a text and listening on head phones to iTunes.

Thu, 04/11/2013 - 07:22 | 3435598 NoDebt
NoDebt's picture

Digital Darwinism?

Thu, 04/11/2013 - 08:55 | 3435800 samcontrol
samcontrol's picture

you are ten years late on that comment.

Thu, 04/11/2013 - 09:44 | 3435978 Shizzmoney
Shizzmoney's picture

Douglas Rushkoff notices this as well (he is a media communications analyst). 

When he now enters a room of people, he feels as if he's in a room separated by numerous walls (with the amount of people who have their heads down in their phones/devices)......even though they are right next to him.

People are becoming like the government and the corporations that run it: impersonable, distracted, and they have no idea what is coming.

For example: today at my job, guy who is super stressed out.....cuts his wrist, yelling, "I can't do it anymore!" (we just bought a new company and there is high pressure to meet unreasonable deadlines to merge data into our system.  Senior Management is doing this so they can save cash on taxes, obv).  

Everyone circles around his desk, wondering what is going on. 

We also have one guy at my job who is legally blind/deaf; he's the only one walking around having completely NO idea what is going on.

However, I find irony in this....because as this guy gets carried off on a stretcher and shit dies down, the rest of the workers will go back to their desks, not knowing they, in fact, are the blind ones.

Wed, 04/10/2013 - 23:46 | 3435193 mayhem_korner
mayhem_korner's picture



Time is the only variable left to the outcome.  Stopping the presses will cause a rapid collapse of the Treasury market and spiking yields - Ben knows this and therefore he CANNOT stop the printing.  The only tool left in the box then is sleight-of-hand to defer awareness. 

We all know that Ben is going to print +/- $80-100 billion/month in perpetuity.  Since there is no alternative, there's no real reason not to "pre-print" the next 3, 4, 5 years of commitments - i.e., print up $3-$6T or more tomorrow.  Now if he did that, the markets would come unglued.  So he prints in stealth to keep cadence with the deficits.

Slow boiling frog, nothing more.  But the frog will die (and they don't taste very nice, do they precious?)

Thu, 04/11/2013 - 00:02 | 3435220 RockyRacoon
RockyRacoon's picture

This could be one slow boil.  Using Japan as a template, we could be at this for quite a few years.  We are mirroring their fate, just lagging in time.  Watch what happens there for clues... if Europe doesn't burn to the ground first, or if the Norks don't fry the peninsula, or if Egypt ignites a firestorm in the ME, etc., etc......

Exogenous black swans.  You know the drill.

Left to our own devices, we will auto-asphyxiate on fiat currency s-l-o-w-l-y.  That makes the experience all that much more enjoyable!

Thu, 04/11/2013 - 09:07 | 3435831 Winston Churchill
Winston Churchill's picture

Japan is not a template for anything.

While the dollar remains the GRC we are in uncharted waters here.

Only after the dollar loses that status would it be a template,but

at that point there will be much bigger problems to deal wuth.

Tick tock, 2014 looks likely for us to find out.


Thu, 04/11/2013 - 09:38 | 3435951 centerline
centerline's picture

Being the Reserve Currency is key.  And, we can print.  Europe cannot.  At some point the EU is going to crack.  I wager it cracks first.  Before Japan.  As soon as the sparks start flying, capital is going to run scared.  I figure it is going to land in the US first.  

I figure late this year or 2014 is when the EU implodes and we are looking at 2015-2016 for things to really get ugly in the US.  Between now and then, the slow boil will continue. 

Thu, 04/11/2013 - 09:58 | 3436026 Winston Churchill
Winston Churchill's picture

Europe can print, if zee Germans let them,

Once the September elections are over, we will see how committed Merkel is

to the euro.

As always the key is Saudi .I don't know huch much longer they are going to take trash

for oil.The Saudi's are actually very pragmatic in business.Once an alternate is up,tried and tested for

a year, they will switch to something else.I'm expecting something big in Moscow this September at the

G20 meet.Take that  forward 12 months,and we are looking fall of 2014.Just an educated guess, my timing

has only been really good once in 2007.

Thu, 04/11/2013 - 09:49 | 3435998 Shizzmoney
Shizzmoney's picture

The only thing saving us as a backstop is the military, and the fact we have the 2nd Amendment. 

Our dollar, in the end, is backed by blood.

Thu, 04/11/2013 - 21:23 | 3439139 NeedtoSecede
NeedtoSecede's picture

We had a Second Amendment. Reid, Feinstein, Obummer and a bunch of pussy Republicans are going to kill it.

Thu, 04/11/2013 - 02:52 | 3435425 dunce
dunce's picture

Some say buy the dips, but what i have been doing is selling the peaks and waiting for the crash. Traders buy dips, fund managers buy and sell on corrections, but i think investors buy after the crash. Sold BCE, VZ, VOD, FTE, SID, and KKPNY today.

Thu, 04/11/2013 - 04:22 | 3435467 Awakened Sheeple
Awakened Sheeple's picture

That was my plan.... 2 years and 4k dow points ago.

Thu, 04/11/2013 - 08:57 | 3435808 samcontrol
samcontrol's picture

you sold fte???

wow after such a runnup...

Wed, 04/10/2013 - 22:37 | 3434976 Jacque Itch
Jacque Itch's picture

Nothing matters except the monthly $85 Billion.  All the talk of stopping it or slowing it down means nothing.  In fact, I would bet they will increase that amount before they decrease it.

Wed, 04/10/2013 - 22:46 | 3435000 lunaticfringe
lunaticfringe's picture

Excellent. I regret that I can only hit the upper once.

Wed, 04/10/2013 - 23:03 | 3435060 yogibear
yogibear's picture

And what does Bernanke and the Fed do if nothing is perceived as getting better?

They do a Krugman and increase QE from $85 billion/month to $170 billion/month!

Bernanke and the fed are very predictable. Japan and he US have a joint financial suicide pact. 


Wed, 04/10/2013 - 23:52 | 3435209 toys for tits
toys for tits's picture

And then if the $170B a month doesn't work because of monetary saturation, they can fight China over some shitty islands.

Thu, 04/11/2013 - 01:17 | 3435334 Odin
Odin's picture

...and when they do increase it, gold and silver will make new highs!!!...oh wait, sorry I forgot we now live in bizarro world with a purple Ben Bernanke and where a Russian news agency is the only voice of reason in TV media...

Thu, 04/11/2013 - 12:09 | 3436796 Thisson
Thisson's picture

The thing is that gold doesn't need to make any new highs.  Gold will be a winning investment if it just preserves its purchasing power in a world where many other financial assets are destroyed.

Wed, 04/10/2013 - 23:56 | 3435214 mayhem_korner
mayhem_korner's picture

And what does Bernanke and the Fed do if nothing is perceived as getting better?


Imagine being stranded on a deserted island with your pet dachsund.  No matter how beloved the dog is, he will be made into a stew within 72 hours.

The perception of things getting better will not stop the printing.  Indeed, perpetuating the perception (lie) is what is enabling the printing to go on "below the radar" of the underinformed sheeple.  But Ben has NO CHOICE.  He MUST eat the dachsund.

Thu, 04/11/2013 - 03:56 | 3435453 new game
new game's picture

there will be a few winners and YOU won't be one of them.

YOU will not find out till it is too late-think stawk holiday as YOU watch it plummet and YOU can not sell...

and then YOU will find out the insiders were selling while YOU were locked out of the market. funny stuff eh?

Thu, 04/11/2013 - 07:15 | 3435588 A82EBA
A82EBA's picture

that's scary..has that happened before in US?

Thu, 04/11/2013 - 08:18 | 3435675 new game
new game's picture

on the ride down to 666 every morning it opened pre-premarket down huge(insiders selling huge blocks).

if they can steal your money from your bank account in cyprus why not here?

they can shut down the exchanges lickety split-has it been done? every day stocks are locked out around the world. bank holiday/stock holiday/broker account frozen all the same.

pending news or scandle-china dot rev merger scams. when the top quits spinning it is too late. chairs gone, music goes off.

punch bowl get watered down and nobody getting a buzz. lights out.

the dream turns nightmare.

today is a good day to buy that first once and withdraw from the sleep aids...

yea zell understands, but he will be ignored by many to many...

Wed, 04/10/2013 - 23:50 | 3435206 chubbyjjfong
chubbyjjfong's picture

Given the economic environment, everyday they keep pumping printed money into the stockmarket, the bigger the resulting mess will be. With global macro's in the toilet new jobs and green shoots have no hope of materializing, therefore printing will continue. That means we are waiting for some outside catastrophe that no one can predict to bring this down. You simply cannot have money exposed to the stockmarket in this insane environment unless you are prpared to lose the majority of it. Everyday this continues the worse it becomes.

Thu, 04/11/2013 - 06:22 | 3435540 Ned Zeppelin
Ned Zeppelin's picture

Absolutely true - the only question: are they printing?

Wed, 04/10/2013 - 23:03 | 3435065 RafterManFMJ
RafterManFMJ's picture



No, don't worry about it. It's probably just a flight of B-17s coming in from the mainland.

Thu, 04/11/2013 - 06:04 | 3435526 Go Tribe
Go Tribe's picture

I doubt it. Consider the source.

Wed, 04/10/2013 - 23:10 | 3435078 Croesus
Croesus's picture

Yes it is!!! 100% True!!

The Gold backed Yuan is coming.

You may find an earlier comment of mine interesting, in the context of your post:

"Gold is changing from mark-to-model, to mark-to-market. The great "unmasking" as it were, is that the paper gold price will cease to be relevant.

Looking forward, I expect an announcement from China that revises their stated reserves much higher. Also, the BRICS answer to the IMF may very well incorporate Gold into its settlement structure, both of which will prove to be extremely bullish for physical Gold, and very bad for the Fed, and paper gold holders."


Central Banks will use Gold as a reserve asset against fiat issuance, right around 15%. This should give you an indication of where I feel the gold price will eventually be. I expect this to be the case by June, 2015.


Thu, 04/11/2013 - 01:12 | 3435329 lasvegaspersona
lasvegaspersona's picture

news flash...The ECB already marks it's gold to market and has since day one. It already backs it's fiat with gold. Not at any ratio however. It lets the market decide the price of gold and therefore the value of the Euro. The ECB sinply states how much gold it has (10,000+ tons) and the value of it's currency can be decided by the holder. Question...what is the value of the Euro if the dollar goes to zero? hint the Euro would be backed by only gold but at infinite dollar price...

This is quite fofoa if I may say so.

Look for all currencies to be structured this way when the dollar bites it.

Thu, 04/11/2013 - 12:14 | 3436818 Thisson
Thisson's picture

The amount of gold the ECB has is irrelevant because the euro cannot be redeemed at the ECB for gold.  The ECB's gold is there as a backup for the case where faith in the currency is lost and they need to offer gold redemption to rehabilitate the use of fiat.

Wed, 04/10/2013 - 23:47 | 3435201 Real Estate Geek
Real Estate Geek's picture

The tits? No, they're fake. But nicely done.

Thu, 04/11/2013 - 00:08 | 3435235 chubbyjjfong
chubbyjjfong's picture

That same story surfaced way back in January. 

Thu, 04/11/2013 - 00:27 | 3435267 Hulk
Hulk's picture

This would help explain the physical that is flying out of the comex.

Stock up Bitchez !!!

Thu, 04/11/2013 - 03:40 | 3435445 fijisailor
fijisailor's picture

If PM premiums do not sky rocket there will be no product to sell and the PM sellers will simply go out of business.  How's that for a stimulus to the physical price?

Wed, 04/10/2013 - 22:40 | 3434986 Yellowhoard
Yellowhoard's picture

The US market won't roll over until the Japanese carry trade ends.

Kyle Bass thinks the Yen could drop to 250 to the buck.

So, until then, let the puffery roll on.

Wed, 04/10/2013 - 22:55 | 3435025 andrewp111
andrewp111's picture

As long as the BOJ is willing to buy the entire JGB issue, the carry trade can not end - not  unless the Yen falls quickly enough to be effectively worthless. If the BOJ is holding rates at zero and the Yen is depreciating, you can still borrow in Yen at near zero and always pay back the loan in cheaper Yen. It is only if the Yen becomes worthless that your Yen loan won't buy anything - then the carry trade doesn't work anymore. So, until the Yen goes the full Zimbabwe, carry on!!!

Wed, 04/10/2013 - 23:07 | 3435075 yogibear
yogibear's picture

Both the BOJ and Federal Reserve are on the financial road to Zimbabwe.

First we get to see the future of the US with Japan. 

The US Federal Reserve has been advising Japan for years. When Japan impliodes we will see the future of the US except a larger explosion.

Wed, 04/10/2013 - 23:39 | 3435172 perchprism
perchprism's picture


I spent the summer of 1984 in Yokohama.  It was around 240 yen to the dollar back then.  Everything was booming along pretty good.  I had a Japanese girlfriend, Chiako Chiba.  I fucked her once in a side street at around 4:30 in the morning.  Usually we went to one of those "love hotels".  It was expensive back then for a 24 year old.  I got into 3 fights with Japanese men over Chiako.  Of course I beat the shit out of all three. 

Chiako had an 8th grade education, which was considered OK for many professions at that time, when women were expected to quit work anyway when they got married.

In Japan, at 4 am in the summer-time, it's beginning to get light outside.  By 8am. it's positively hot.  I'd walk to work early, and there'd be these immense spans of spider webs across irrigation canals.  The spiders were huge.  Ditto all the other bugs.  Cockroaches had wings and were several inches long.

I left a tip at a restaurant once, and the proprietor came running out after me all huffy-puffy and pissed off, to return the tip.  It's considered an insult.

Ah, to be young again.  I wonder whatever happened to Chiako.



Thu, 04/11/2013 - 06:05 | 3435528 Go Tribe
Go Tribe's picture

She's absolutely glowing.

Thu, 04/11/2013 - 07:49 | 3435628 Tango in the Blight
Tango in the Blight's picture

You'll hear from her soon when she googles herself and finds your post about you fucking her.

Thu, 04/11/2013 - 09:05 | 3435826 gaoptimize
gaoptimize's picture

The kind of short story I like.  Keep healthy, live to ~2035, and be young again when the Kurzweil Singularity brings the technology.  Then go find Chiako and help the Japanese  demographic problem by filling up a house with children.

Thu, 04/11/2013 - 12:15 | 3436832 Thisson
Thisson's picture

"The spiders were huge.  Ditto all the other bugs.  Cockroaches had wings and were several inches long."

The whole Godzilla thing makes a lot more sense now!

Wed, 04/10/2013 - 22:43 | 3434987 AssFire
AssFire's picture

If my aunt had balls, he'd be my uncle.. and if this market had life it wouldn't be receiving intensive care treatment.

Wed, 04/10/2013 - 22:42 | 3434991 q99x2
q99x2's picture

DHS must be close to final preparations.

Wed, 04/10/2013 - 22:51 | 3435016 Stuck on Zero
Stuck on Zero's picture

Ammo. Check.

Detention camps. Check.

Internet shutdown switch. Check.

Domestic drones. Check.

Militarization of police. Check.

Zombie courts. Check.


Wed, 04/10/2013 - 23:10 | 3435083 prains
prains's picture

military "contractors" outside of legal system. Check

Thu, 04/11/2013 - 07:45 | 3435620 icanhasbailout
icanhasbailout's picture

foreign troops being trained on US soil - check

Wed, 04/10/2013 - 23:12 | 3435085 McMolotov
McMolotov's picture

And go look at Drudge — apparently Nappy Janet the Cunt had DHS buy bagpipes to play at our funerals.

At least we can get a send-off like Spock.

Thu, 04/11/2013 - 00:06 | 3435230 uplicidlit
uplicidlit's picture

OMG - that was funny!


Thu, 04/11/2013 - 01:11 | 3435330 kurt
kurt's picture

"Ship... allright?"

Thu, 04/11/2013 - 04:29 | 3435476 S5936
S5936's picture

3,000 mine proof urban assault vehicles. Check

Wed, 04/10/2013 - 23:10 | 3435082 yogibear
yogibear's picture

Did the DHS take delivery of their 1.6 billion rounds yet?  

Wed, 04/10/2013 - 22:48 | 3435007 lunaticfringe
lunaticfringe's picture

If SZ keeps up that truth telling shit, CNBC is going to feed him his answers on the telepropmpter or he won't get invited back. 

It's gottta be a little fun to stick one up their ass once in awhile. Fuckers.

Wed, 04/10/2013 - 22:49 | 3435010 Debt Slave
Debt Slave's picture

Everyone where I work is enthusiastic about their 401(k)s. They hated me for getting out in '07 when everyone got screwed out of 40% a year later. Now (5 years later) they are gloating and saying "See? I told you so. Go long!"

It's a sure sign to me that they are going to get ass raped again in '14.


Wed, 04/10/2013 - 22:58 | 3435040 RafterManFMJ
RafterManFMJ's picture

Explain to them real, and nominal numbers.  Illustrate with the increase in the price of gas, food, cars, etc.  Then show the market would have to be up to 1.5X where it is, to be equal to where it was during the peak. Enjoy some popcorn.

Wed, 04/10/2013 - 23:06 | 3435068 Key-Rick
Key-Rick's picture

In real numbers he's down 40 percent  Who's ahead here?

Thu, 04/11/2013 - 06:07 | 3435530 Go Tribe
Go Tribe's picture

Do they all drive new cars, too?

Thu, 04/11/2013 - 07:17 | 3435594 Debt Slave
Debt Slave's picture

Do they all drive new cars, too?

How did you know that?

Thu, 04/11/2013 - 11:39 | 3436622 Go Tribe
Go Tribe's picture

Because they're lousy at money management.

Wed, 04/10/2013 - 22:54 | 3435024 eatthebanksters
eatthebanksters's picture

Who's gonna get the blame when this balloon pops?  The little retail investor with irrational exuberance?  WHAT A FUCKING JOKE!

Wed, 04/10/2013 - 22:56 | 3435039 Seasmoke
Seasmoke's picture

Being in this market is like dealing drugs. You keep saying you are going to stop but the cash is too good and way too easy. You never stop until its too late.

Wed, 04/10/2013 - 22:57 | 3435045 moneybots
moneybots's picture

"Sam Zell: "The Stock Market Feels Like The Housing Market Of 2006"


It is.  Alan Greenspan is telling the public to buy stocks, just as he told people in 2004, to get adjustable rate home loans.


IBD has recorded 6 distribution days in the last few weeks.  Greenspan is looking for bag holders for his banker freinds.



Thu, 04/11/2013 - 00:18 | 3435245 uplicidlit
uplicidlit's picture

Greenspan = what a complete fuckwad whore that guy is. Why does anyone listen to that guy?

Look at the still image of his mug here:

He looks like Woody Allen's older brother. Shit, that explains alot!

Thu, 04/11/2013 - 04:35 | 3435481 S5936
S5936's picture

Damn that's a truly repulsive pic. Looks like he just crawled out of a jar of formaldehyde . Creepy fuck ain't he !!!!

Wed, 04/10/2013 - 23:19 | 3435107 cliffynator
cliffynator's picture

Best part is when Sam Zell says, " what are you talking about every day now? Stocks going up every day." Below him flashes: "CNBC News Flash: Best 3 Day Rally of 2013" Poetic justice?

Thu, 04/11/2013 - 00:03 | 3435226 Intoxicologist
Intoxicologist's picture

Best 3-Day Rally of 2013

"Just what the Sam Zell is going on here, anyway?"

Wed, 04/10/2013 - 23:23 | 3435114 devo
devo's picture

"The current stock market feels like the housing market of 2006."

Feels more like André René Roussimoff with a bad case of cryptosporidium

Wed, 04/10/2013 - 23:24 | 3435123 chump666
chump666's picture

F*ck the Fed.  Of course you don't fight the a-holes....yet. But all glory is fleeting and arrogance is a curse.

Lay in wait. 

Thu, 04/11/2013 - 15:39 | 3437795 MrSteve
MrSteve's picture

Francis Marion, the Carolinas Swamp Fox:

He who fights and runs away lives to fight another day.


Sound advice!

Never go to war with your banker, they have all the money. Seize the money first, then go to war; you have do things in the proper order.

Wed, 04/10/2013 - 23:32 | 3435147 Dogbert
Dogbert's picture

Obama meets with big bankers (no details forthcoming).

Wonder who's ass got chewed? If it was them instead of stupids we would of heard all about it by now dontcha think?

Wed, 04/10/2013 - 23:32 | 3435149 FranSix
FranSix's picture

We ARE there:

Thu, 04/11/2013 - 00:03 | 3435228 Jumbotron
Jumbotron's picture

WOW !!! .......just... WOW !!

Thu, 04/11/2013 - 04:40 | 3435488 S5936
S5936's picture

S&P March 2009 low 666 ... Just say'in.

Wed, 04/10/2013 - 23:35 | 3435160 Jam Akin
Jam Akin's picture

Is it safe?   ZELL!!!!

Thu, 04/11/2013 - 01:05 | 3435324 kurt
kurt's picture

Shatner "Khan!"

Thu, 04/11/2013 - 07:29 | 3435606 SmallerGovNow2
SmallerGovNow2's picture

classic dustin hoffman movie...

Wed, 04/10/2013 - 23:42 | 3435189 maskone909
maskone909's picture

There is a starman waiting in the sky
Hes like to come and meet us
But hel probabably blow our minds

Wed, 04/10/2013 - 23:47 | 3435200 ak_khanna
ak_khanna's picture

The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.

While executing their regular business if they do end up making a loss, their friends, the elected politicians are always there to bail them out with tax payers funds and even if that is not sufficient they can always borrow more. The debts taken in the name of the country will have to be borne by the rest of the population in the form of higher taxes and austerity measures.

Long Live Nexus of the rich and the politicians to loot the rest of the population till they wake up, understand the nexus and break it up.

Thu, 04/11/2013 - 00:20 | 3435248 Atomizer
Atomizer's picture

We are suffering through another irrational exuberance 


Bubbles are best identified by credit excesses, not valuation excesses. And there's no bigger credit excess than in China.

-James Chanos

See the irony?

Thu, 04/11/2013 - 00:23 | 3435256 chump666
chump666's picture

Pressure on China continues from Japan for the false flag moment:


Thu, 04/11/2013 - 06:11 | 3435532 Go Tribe
Go Tribe's picture

Now we're talking - three nations fighting over a good fishing hole. At least that war will be justified.

Thu, 04/11/2013 - 00:46 | 3435294 Mr. Hudson
Mr. Hudson's picture

The goyim are being set up for the slaughter.

Thu, 04/11/2013 - 00:55 | 3435309 They Tried to S...
They Tried to Steal My Gold's picture

MOT spot on...there will be shabbitz boy blood in the streets....

Thu, 04/11/2013 - 00:49 | 3435299 FIAT
FIAT's picture

Everyone in that fucking jersey studio should be raided and arrested under the RICO act.

This kike shit has gone on for YEARS.

LIESman, cramer, ira ross sorkin, faber, greenberg, kaminsky, rovell, finerman, kudlow the born again "Christian", boorstin, melissa francis, "zach" karabell, jane wells, stephen weiss, wapner, boddiwomo the barren philo semite "married" to the gay son of criminal saul steinberg

such a mitzvah everyday on englewood cliffs, itz!!!!!!!!!!!!!!!!!!!!!

Itz almost as if they are in place running/protecting a criminal enterprise (fellow "jews).   The public relations branch of a jewish crime syndicate.

Thu, 04/11/2013 - 00:57 | 3435313 lasvegaspersona
lasvegaspersona's picture

meanwhile GLD is being drained of gold. Inventory is at 1185 tons, down from 1350 tons in January. Why and where is it going? Who is taking the physical? and...(sinister music) what does it mean?

Thu, 04/11/2013 - 01:16 | 3435333 ebworthen
ebworthen's picture

Thanks Tyler.

Saw this live this afternoon and it was so funny how Maria blinked (<blink-blink>).

Sam Zell is spot on, and without the FED the whole Ponzi house of cards would not have been built.

Thu, 04/11/2013 - 01:17 | 3435336 Oligarch
Oligarch's picture

1987, the market has a tendency to repeat itself ...

Thu, 04/11/2013 - 07:00 | 3435571 Zer0head
Zer0head's picture

just ask Marty Zweig (rip)

his late penthouse


his early 1987 market call


not necessarily in that order


Thu, 04/11/2013 - 01:45 | 3435370 mightydog
mightydog's picture

You know something is a little off when the S&P and Nasdaq were led higher by tech stocks including Microsoft and Intel over the past 2 days culminating today with the biggest decline in PC sales in history.

Thu, 04/11/2013 - 01:46 | 3435371 chump666
chump666's picture

Hell yeah Celente, love that accent...

Thu, 04/11/2013 - 06:14 | 3435535 Go Tribe
Go Tribe's picture

His news desk is a bar - love that!

Thu, 04/11/2013 - 07:23 | 3435602 SmallerGovNow2
SmallerGovNow2's picture

He's great, never seen him quite that angry...

Thu, 04/11/2013 - 01:48 | 3435373 dolph9
dolph9's picture

You have to remember that you are dealing with fanatics.  That's key.  You were all lied to when you were told the Muslim goat herders were fanatics.  They may be, but they are nothing compared to the bankers and financiers.


Remember that nothing is ever good enough for them.  The market HAS to go to infinity.  They HAVE to turn a billion dollars into a trillion dollars.  You HAVE to keep consuming shit your entire lives.

If they lose the ability to do that, they threaten you with starvation and death.

So what are you doing to do about it, American sheep?

Thu, 04/11/2013 - 03:05 | 3435429 mach777
mach777's picture

Oh you think consumng is a terrible way to live? You are still taking way more than you give. Try the other side of that for awhile, give more than you take, like the people assembling your iphones, or making your clothes.

You really want to go back to that place where that could go on forever, and all this bold talk about hating a system that keeps you alive, that you really love, the system that is all you know...

Come on, what do you think will happen if the givers stop giving? You're back in the 60's? You were taking way more than you put in back then too.

Try the middle ages with a 100 times more mouths to feed.

Thu, 04/11/2013 - 07:07 | 3435575 SmallerGovNow2
SmallerGovNow2's picture

Agree with your thesis dolph, but what are you doing about it?

Thu, 04/11/2013 - 09:47 | 3435987 therearetoomany...
therearetoomanyidiots's picture


Thu, 04/11/2013 - 01:52 | 3435378 hejss
hejss's picture

I see lots of angry people chasing men in nice suits down the street...


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