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Central Banks Join The Herd, Openly Buying Stocks In Record Amounts

Tyler Durden's picture





 

When tin-foil-hat wearing digital dickweed blogs first suggested that Central Banks were actively buying stocks, the mainstream media scoffed at the idiocy and un-independence of such an idea. However, it is clear the central banks themselves are now not only actively buying stocks but are activley encouraging it and propagandizing their efforts to lever this last policy tool left in the toolbox.

As Bloomberg reports, 23% of central bankers surveyed said the bank owns shares and plans to buy more. From the Bank of Japan to the Bank of Israel and with the SNB and the Czech National Bank now at over 10% allocation of reserves to stocks, is it any wonder there is an inexorable bid under the 'free' markets. Rick Santelli is rightly concerned that, "there is a danger that everyone is loaded in the same direction," asking what happens if all the Central Bank pump-priming does not work, given these equity valuations, "who gets caught holding the bag? What chairs are left when the music stops?"

 

Via Bloomberg,

Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.

 

...

 

In a survey of 60 central bankers this month by Central Banking Publications and Royal Bank of Scotland Group Plc, 23 percent said they own shares or plan to buy them. The Bank of Japan, holder of the second-biggest reserves, said April 4 it will more than double investments in equity exchange-traded funds to 3.5 trillion yen ($35.2 billion) by 2014. The Bank of Israel bought stocks for the first time last year while the Swiss National Bank and the Czech National Bank have boosted their holdings to at least 10 percent of reserves.

 

...

 

“If reserves are growing, so are diversification pressures. Equities are not for every bank tomorrow, but more are continuing down this path.”

 

...

 

The survey of 60 central bankers, overseeing a combined $6.7 trillion, found that low bond returns had prompted almost half to take on more risk. Fourteen said they had already invested in equities or would do so within five years.

 

...

 

Even so, 70 percent of the central bankers in the survey indicated that equities are “beyond the pale.”

 

...

 

Some central banks, including the Fed in Washington and the Bank of England in London, have no mandate to buy stocks directly.

 

...

 

the SNB has allocated about 12 percent of assets to passive funds tracking equity indexes.

 

...

 

“Central banks are looking at assets that I wouldn’t have necessarily expected in times gone by,”

Finally, when all the central banks have bid up all stocks to just shy of infinity using electronic monetary equivalent 1s and 0s (which can be created to precisely infinity if and when needed), will the BOJ, Fed and ECB be forced to start shopping in the JCPenney 90%-off closeout rack next?

 


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Thu, 04/25/2013 - 12:18 | Link to Comment Edward Fiatski
Edward Fiatski's picture

But... but... but... the Moral Hazard of being able to conjure a Trillion USDs and buy tangible thinges with it... Ah, fuck it - no one gives a damn; 100 years & running.

Thu, 04/25/2013 - 12:19 | Link to Comment FL_Conservative
FL_Conservative's picture

The insanity is UFB.

Thu, 04/25/2013 - 12:24 | Link to Comment toys for tits
toys for tits's picture

In the near future they will begin buying intangibles to increase GDP.

Thu, 04/25/2013 - 12:41 | Link to Comment knukles
knukles's picture

Krugman's gottabe pulling on his Great Breasted Purple Throbber like there's no tomorrow.

http://www.bing.com/images/search?q=Purple+Throbber&id=E7C6E60A3569EDBDE...

 

Seriously, I thought that there was a bird named the Great Breasted Purple Throbber and this was what was delivered....

 

Come on, what could go wrong?

Thu, 04/25/2013 - 12:44 | Link to Comment redpill
redpill's picture

"Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves"

 

These fucking fascists aren't guardians of anything.  Deliberately destroying the integrity of global stock markets is financial totalitarianism and is an act of war against the people of the world.

Thu, 04/25/2013 - 12:48 | Link to Comment fonzannoon
fonzannoon's picture

Cramer told me to embrace the fraud.

Thu, 04/25/2013 - 12:55 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Central Bank is buy stock "openly"... How to parse!? Central Bank previously buy "secret"?! This cannot is have happy ending (except at SEC when agent is restore porn through anonymous proxy).

Thu, 04/25/2013 - 13:02 | Link to Comment redpill
redpill's picture

Correct, the survey just means that 23% are actually admitting it now.

Thu, 04/25/2013 - 13:25 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Now Boris understand, 23% is admit to 25% of purchase. Nice to print money in wild abandonment and buy real asset with impunity.

Get popcorn and soda (Boris is get vodka and cabbage roll) - this is to be exciting to watch!

Thu, 04/25/2013 - 13:58 | Link to Comment BoNeSxxx
BoNeSxxx's picture

Central Bankers and 'Risk' in the same sentence?  

LOLZ... there is no risk to the owners of the printing press.

Thu, 04/25/2013 - 15:01 | Link to Comment francis_sawyer
francis_sawyer's picture

When you're given the franchise to print joobux for yourself out of thin air... You can buy a lot of shizz...

~~~

It's especially nice if you have a bunch of joos who control MSM & keep your eyes trained in another direction, & an otherwise joo controlled legal system who aren't interested in prosecuting fellow joos... You know ~ because there's PROFIT involved...

Junk away...

Thu, 04/25/2013 - 13:27 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

More question - sorry - Boris is forget, what is purpose of Central Bank!?

Thu, 04/25/2013 - 13:48 | Link to Comment ATM
ATM's picture

Purpose of Central Bank is to rob people of wealth and hand over to bureaucrats and autocrats, slowly at first and thena ll at once.

Thu, 04/25/2013 - 13:58 | Link to Comment SafelyGraze
SafelyGraze's picture

repeat to self: don't fight the CB . don't fight the CB

if we can persuade enough of you to front-run us on all our jawbone hints, then we don't have to actually take any action ourselves

you will do the heavy lifting for us

which is as it should be

hugs,

G20 n friends

in the meantime, we still have to buy some of the equities and stuff though.

so bear with us! pardon our dust! under construction! 

Thu, 04/25/2013 - 13:30 | Link to Comment fockewulf190
fockewulf190's picture

Phyzz. There is no other option. Get yours before it's all gone.

Thu, 04/25/2013 - 18:25 | Link to Comment mkkby
mkkby's picture

To keep kicking the can, they really have no other choice.  If stocks go down, pensions fail and gov collapses -- at the state/local level at least.

If houses don't recover, banks/fannie/freddie stay insolvent.  Therefore, they must keep bonds at zero yield.

If gold goes too high, confidence in fiat dies.  So they have to keep naked shorting it.  No choice.

Primary dealers get their guaranteed profit.  Same as any gov contractor.  How to play?  Wait for major correction.  Go long.  Never short in any amount you can't afford to lose.  They will be attacked as enemy of the state.

Thu, 04/25/2013 - 13:02 | Link to Comment Manthong
Manthong's picture

In for a penny.. in for a pound ..

But an early CB bet was in for a sheckel..

I’d be watching for sheckel exit.

Thu, 04/25/2013 - 13:16 | Link to Comment fonzannoon
fonzannoon's picture

Bob pissonmeface just making it clear that the fed and ecb are not buying stocks. just other cb's. so other cb's are now frontrunning the fed with stock purchases?

Thu, 04/25/2013 - 13:25 | Link to Comment mckee
mckee's picture

Bob pissonmeface just making it clear that the fed and ecb are not "admitting to" buying stocks. just other cb's. so other cb's are now frontrunning the fed with stock purchases?

 

Fixed

Thu, 04/25/2013 - 13:37 | Link to Comment NotApplicable
NotApplicable's picture

Of course, the word Bob's looking for is "proxy."

Who needs to buy stocks when you can create a Rube Goldberg machine to do it for you?

Just think of what you could buy if you had a magic checkbook.

Thu, 04/25/2013 - 13:48 | Link to Comment ATM
ATM's picture

Ding, Ding, Ding, Ding, Ding, DIng, Ding!!!!!!!

Sun, 04/28/2013 - 03:38 | Link to Comment Supernova Born
Supernova Born's picture

What the fuck ever goes for banksters.

Thu, 04/25/2013 - 13:05 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Didn't the democrats go beserk when W. Bush tried to let people invest a "tiny" portion of "their" social security in the stock market?   Now that Obama is president, its ok to GO ALL IN??

Thu, 04/25/2013 - 13:30 | Link to Comment HardAssets
HardAssets's picture

The false paradigm of  'right' vs 'left', 'Dem' vs 'Repub' is a fraud.

It doesnt freakin' matter what the Dems or Repubs say - all of it is b.s. and not worth following or bothering with.  There will never be any solutions coming out of D.C.

Thu, 04/25/2013 - 13:34 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Oh, I get that.  I was referring more to the average democrat sheep on the street.  The majority of J6P's were against any investment of SS in the stawk market, but this will be OK, because well, its OK.  Obama said so.

Thu, 04/25/2013 - 13:08 | Link to Comment FL_Conservative
FL_Conservative's picture

What, is Cramer looking for a hug?

Thu, 04/25/2013 - 12:46 | Link to Comment Dyhana
Dyhana's picture

It might be purple, but I highly doubt that it's big.

Thu, 04/25/2013 - 12:59 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Battery not include.

Thu, 04/25/2013 - 12:25 | Link to Comment GoldForCash
GoldForCash's picture

Buying our stocks with the money we gave them. Worst than a ponzu.

Thu, 04/25/2013 - 12:43 | Link to Comment CClarity
CClarity's picture

Jim O' niell of GS Chair fame, said he thinks its a good idea this morning. And that CentrL banks (I think he meant sov. wealth funds) should take l-t approach for good of the country's people and buy assets that are longer term in I outlook and then share the wealth gains with the people. Stocks, odd currencies, all okay by him. what next, tech inventories and ag land?
Ahem, the Fed is not of the people for the people. It is for its bank members.

Thu, 04/25/2013 - 13:03 | Link to Comment rqb1
rqb1's picture

They love ag land.

Thu, 04/25/2013 - 13:30 | Link to Comment NoDebt
NoDebt's picture

Central banks are bond guys, at heart.  Now they're just going to start buying equities like they know what they're doing?  Good thing they have a printing press in the basement- they're going to need it.

"what next, tech inventories and ag land?"

Good point.  Yes, I think would be the answer to that question.

Thu, 04/25/2013 - 13:34 | Link to Comment astoriajoe
astoriajoe's picture

Its all just spreadsheets and DCFs. what could go wrong?

Thu, 04/25/2013 - 13:51 | Link to Comment ATM
ATM's picture

Why wouldn't the CBs just go buy everything? They have the money.

Thu, 04/25/2013 - 13:53 | Link to Comment fonzannoon
fonzannoon's picture

and why wouldn't you front run them knowing they were going to?

Thu, 04/25/2013 - 15:08 | Link to Comment NoDebt
NoDebt's picture

Exactly.  That's where I think this bull market has been getting it's endless bid.  Nothing's stopping it.  Not bad news and worse yet, not GOOD news.  This has to be at least in part front-running the central bankers on their equity purchases.

Would make sense since this behavior by central banks is RECENT.  Like in the last six months, perhaps.  Curiously, around the time the market starting pulling up off the November lows last year and hasn't looked back.

If you're powerful and connected all you need to do is ask your "inside guy" and the Fed (or elsewhere in the central bank world) what they're buying and selling and do the same.  The rest of us have to read what they did months later on ZH, scratching our heads why things were moving so strangely in the previous quarter/half/year. 

Thu, 04/25/2013 - 13:27 | Link to Comment Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

Blackrock is behind this - ad infinitum

Thu, 04/25/2013 - 13:35 | Link to Comment dontgoforit
dontgoforit's picture

Amen G-f-C! 

Too big to fail, grown large on notes of Bernank,

They hang us on a cross with our own nails - and rustily we sank.

They wipe our blood with fiat, rag-papered we expire,

They blame our demise on us, those dirty rotten liars. 

Thu, 04/25/2013 - 15:43 | Link to Comment ejmoosa
ejmoosa's picture

Buying our stocks with the money we have yet to earn and will one day be expected to repay...

Thu, 04/25/2013 - 12:39 | Link to Comment smlbizman
smlbizman's picture

i am proud to be associated with the digital dickweeds.....

Thu, 04/25/2013 - 12:55 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

ZH should issue PhD's based on number of comments and up votes.  I could finally be called a real doctor then.

Thu, 04/25/2013 - 13:33 | Link to Comment Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

A heirarchy would be nice.  I.E. someone like Disabled Vet would get the title Resident Dickhead for garnering over 200 down votes in a week, you'd have your troll classifications too, then we'd have McMolotov and the others Prime Chancellor, Chief Sno-Cone Provider, ad nauseum et al. 

Thu, 04/25/2013 - 13:53 | Link to Comment thecoloredsky
thecoloredsky's picture

Is it ok if I cruise to the PhD by using comments like "Fuck you Bernanke!" and the like? If thats cool, then I'd like to kickstart my career with.... wait for it....

FUCK YOU BERNANKE!

Thu, 04/25/2013 - 12:47 | Link to Comment Stoploss
Stoploss's picture

According to the COT for bonds, and gold's reaction, it would appear it is about to get ugly.

But hey, this time could be different!

Thu, 04/25/2013 - 12:53 | Link to Comment Gringo Viejo
Gringo Viejo's picture

Somebody got to buy 'em. Everybody else tryin' to keep the cockaroaches from eatin' they food stamps.

Thu, 04/25/2013 - 12:37 | Link to Comment smlbizman
smlbizman's picture

you heard it...its over for gold...that most intelligent woman on cnbs says so......since thats that when  i take my metals up to the county recyling plant do i have to seperate or just dump them in with the water heaters?

Thu, 04/25/2013 - 12:17 | Link to Comment sansnobel
sansnobel's picture

Hang all Central Bankers of the world!!!!!!  Fucking theives!!!!!

Thu, 04/25/2013 - 12:22 | Link to Comment Ghordius
Ghordius's picture

do me a favour and lead by example before lecturing foreigners what to do or not to do

Thu, 04/25/2013 - 13:27 | Link to Comment Apocalicious
Apocalicious's picture

What part of "All" do you fail to understand? I see no reference to "ours" versus "yours" or "domestic" versus "foreign."

 

Noped, checked again - "all central bankers."

Thu, 04/25/2013 - 12:34 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

soon the hofjuden will print enough judefetzen to purchase not only all tangible assets but our own living asses as well

Thu, 04/25/2013 - 13:31 | Link to Comment assumptionblindness
assumptionblindness's picture

No need to worry. I am confident that all of their positions are safely hedged.

Just one question....aren't central banks only allowed to buy AAA govt. bonds?

Maybe I am just confusing the OLD rules with the NEW rules. My bad ;-(

Thu, 04/25/2013 - 12:26 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

"there is a danger that everyone is loaded in the same direction," asking what happens if all the Central Bank pump-priming does not work...

It's a circle jerk!* followed by a pump-and-dump.

 

 

 

* I was on the fence about posting this very inappropriate pic, versus just a link, as it is so fucking appropriate

Thu, 04/25/2013 - 12:26 | Link to Comment toys for tits
toys for tits's picture

A bunch of classless lowlifes.  

Not one of them has their pinkies raised.

Thu, 04/25/2013 - 12:41 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

"who gets caught holding the bag?

I don't know about scrotums; it sure looks to me like everybody is going to get ass-fucked before it is all over, with Bernanke providing the liquidity.

What chairs are left when the music stops?

Chairs, Rick?  Not sure, but everyone's stool will be pushed in. You can thank President Obama and his huge stimulus package!

Thu, 04/25/2013 - 12:46 | Link to Comment knukles
knukles's picture

Oh....
my....

It's only 0940 and ....

 

<crickets>

(Where the fuck did he find that picture?  There's something terribly wrong...)

Thu, 04/25/2013 - 12:50 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

“diversification pressures...more are continuing down this path.”

So, gay is, or is not a choice?  What say you, Draghi?

Thu, 04/25/2013 - 12:54 | Link to Comment knukles
knukles's picture

If you want gay, have gay, by all means.

But now you've got me thinking....
Are they buying individual gay stocks expecting additional juice through alpha or the San-Fran Bathhouse Diversified Index?

 maybe that pic is why the Marines have outlawed tattoos.....
 must be Navy

yes, seamen

Thu, 04/25/2013 - 13:23 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

70 percent of the central bankers in the survey indicated that "equities" are “beyond the pale.”

70% are liars!  Come out of the closet, it is 2013 for crying out loud. 

Has all of Congressman Barney Frank's hard work and embarrassment openly taking it long and hard for banks been for nothing? 

Get behind this great man, stand tall, and do not be embarrassed to give it your best!  Others have and have been well rewarded.

Thu, 04/25/2013 - 16:11 | Link to Comment knukles
knukles's picture

Hedge, you've got me speechless...
Quite frankly, I'm not too sure what to do the rest of today, now...

 

Thu, 04/25/2013 - 13:49 | Link to Comment Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

I think Obama should grow a cock-duster. 

Thu, 04/25/2013 - 13:41 | Link to Comment NotApplicable
NotApplicable's picture

I believe the bag holder is none other than the US Treasury.

Thu, 04/25/2013 - 13:10 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Not one of them has their pinkies raised.

The Ann Landers of homoerotica? ZeroHedge you attract the diversiest of the diverse and that's why love you.

Thu, 04/25/2013 - 15:39 | Link to Comment Disenchanted
Disenchanted's picture

A daisy chain (def. #1) pic (NSFW) would have been a better option...besides that's not a circle.

Thu, 04/25/2013 - 15:19 | Link to Comment q99x2
q99x2's picture

That's from awolmarines. There about 5,000 (no exaggeraton) homosexual marines in sexual acts on that site. Bobby Garcia a gross gay mexican paid them to be in his movies down at Camp Pendleton. The marines are treated so poorly and they have families that have so very little money it was not hard to get them to prostitute themselves.

I thought that during the Iraq war that Hussein would start dumping the videos on the troops to lower moral.

Thu, 04/25/2013 - 12:19 | Link to Comment fonzannoon
fonzannoon's picture

The survey of 60 central bankers, overseeing a combined $6.7 trillion, found that low bond returns had prompted almost half to take on more risk. Fourteen said they had already invested in equities or would do so within five years

 

5 moar years 5 moar years!!!!!!!!!!

Thu, 04/25/2013 - 12:28 | Link to Comment toys for tits
toys for tits's picture

What happens when CB's participate in irrational exuberance? 

 

 

Now they'll never be able to spot it.

Thu, 04/25/2013 - 12:32 | Link to Comment fonzannoon
fonzannoon's picture

That guy whiteshadow was right. They will crash this market up. up up and up. You will be mesmerized by it. You won't be able to hold back. You will buy into it. It will be glorious. Then it will be over in an instant.

Thu, 04/25/2013 - 12:44 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Stock portfolios went stratospheric in Weimar Germany.

Obama is a young man still.

Thu, 04/25/2013 - 12:46 | Link to Comment centerline
centerline's picture

A blow off top like no one has ever seen.  Everyone will be cheering right up into the "oh shit" moment.

Thu, 04/25/2013 - 13:42 | Link to Comment dontgoforit
dontgoforit's picture

Who's the one guy who's got the pin ready to prick the bubble?  That one guy (or group) will make a killing and our blood will be their feast (our dough will be their muffin) - (our years of work they will have for a farthing).

Thu, 04/25/2013 - 14:01 | Link to Comment Meat Hammer
Meat Hammer's picture

Mass suicides and 401k statement-induced stroking out will greatly reduce the cost of Obamacare.

Thu, 04/25/2013 - 13:44 | Link to Comment NoDebt
NoDebt's picture

Toys- I'm less worried about them seeing or not seeing a bubble (they have been utterly blind to them thus far) and more concerned with this question: 

Since when did the purpose of Central Banks become earning some risk-adjusted rate of return?  That isn't their purpose.  They have no business building portfolios like they're some sort of giant hedge fund.

Thu, 04/25/2013 - 12:54 | Link to Comment HardAssets
HardAssets's picture

central banksters "taking on more risks"  ?

Thats like saying Mafia Vegas casino owners take on more risk

Thu, 04/25/2013 - 12:19 | Link to Comment dracos_ghost
dracos_ghost's picture

Nope. Nothing can go wrong with this. Absolutely nothing. Nosiree Bob. Nosiree Jimmy. Nosiree Benny.

Thu, 04/25/2013 - 12:19 | Link to Comment maskone909
maskone909's picture

imagine if all of that CB money went to the people instead????

would be super sweet

oh well

Thu, 04/25/2013 - 12:22 | Link to Comment css1971
css1971's picture

It does... The people in their country club.

Thu, 04/25/2013 - 13:02 | Link to Comment HardAssets
HardAssets's picture

These evil criminals calculate it differently than we do.

'people' (like you & me)  =  milk cows/ sheep/ viruses - - - at best, toys to play with

banksters = God 

 

Imagine being in a place where all your life you have been given anything and everything you ever wanted. Your family has billions. So now all there is left is stroking your ego and power tripping. And you feel 'entitled' to get whatever you want and care about no one else.

Thu, 04/25/2013 - 13:44 | Link to Comment dontgoforit
dontgoforit's picture

Good summary, HAssets!  I've never run in those circles - don't want to.  It's a sickness.

Thu, 04/25/2013 - 13:43 | Link to Comment NotApplicable
NotApplicable's picture

What's so sweet about people getting money that is just an IOU from the same people? It's still a wealth redistribution scheme, and as such, could never amount to anything positive.

Circle jerk indeed!

Thu, 04/25/2013 - 12:19 | Link to Comment RaymondKHessel
RaymondKHessel's picture

<--- Hyperinflation

<--- Default

Thu, 04/25/2013 - 12:20 | Link to Comment fonzannoon
fonzannoon's picture

where is the option for both?

Thu, 04/25/2013 - 12:54 | Link to Comment THX 1178
THX 1178's picture

Yeah whats the difference? Default or Default? Shit if'n we Hyperinflate who seriously thinks we ain't fitna pay awf our debts with useless terlet paper? Default is default.

Thu, 04/25/2013 - 12:25 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Nope, just more BIflation. Today a Citi analyst commented about the "shocking" uncoupling between the real and the financial economy. He was commenting about Spain with its 27% unemployment record. (Noce goong!) It's the end result of current central bank policies.

Thu, 04/25/2013 - 12:33 | Link to Comment fonzannoon
fonzannoon's picture

I saw. They said the underlying economy was a bullish sign. Orwell just did another backflip.

Thu, 04/25/2013 - 13:13 | Link to Comment HardAssets
HardAssets's picture

IMO, now it has little to do with 'economics' at all.

Catherine Austin Fitts said one time that if one really wanted to learn how the system works, go to the store and buy some popcorn. Then go and rent the complete Godfather movie series. Spend the weekend watching all the movies one after another and you'll have a good education on how things really work today.

Michael Corleone: "All my life I was trying to get up in society... where everything is legal, but the higher I go the more crooked it becomes."

Thu, 04/25/2013 - 13:44 | Link to Comment MachoMan
MachoMan's picture

That IS what economics is...  the political system is beholden to the economic system.  The economic system is an incredibly convoluted version of the jungle.  In the end, the economic system is beholden to the law of the jungle (albeit possibly rewarding different traits/attributes), regardless of the economic system we attempt to employ.  All of our descriptions, theories, philosophies, etc. are all directed towards describing pinpoints of time (e.g. capitalism), but virtually never the overarching mechanisms and trends.

The Godfather series actually addresses the nature of economics...  or, at the very least, our default state, which is often returned to given anything else requires cooperation, diligence, and intelligence (things humans can only seem to collectively muster in spurts).

Thu, 04/25/2013 - 13:38 | Link to Comment MachoMan
MachoMan's picture

Bi-flation is merely cost push inflation...  and all of the symptoms of "bi-flation" eventually give way to inflation or deflation proper...  this is just a temporary stop on the timeline...  though, lube would be nice.

Thu, 04/25/2013 - 12:47 | Link to Comment madcows
madcows's picture

hey, wow, I was able to vote for both.

Thu, 04/25/2013 - 14:31 | Link to Comment Overfed
Overfed's picture

First one, and then the other.

Thu, 04/25/2013 - 12:19 | Link to Comment firstdivision
firstdivision's picture

This is bullish.  It makes me have total confidence in the markets.

Thu, 04/25/2013 - 12:20 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"Central banks, guardians..."

LOLOLOL

Thu, 04/25/2013 - 12:19 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

Breaking equity markets hurts the lowest 80th% of listed companies. The alpha predators benefit. It's another wealth transfer.

Humans are batteries for the machines.

Thu, 04/25/2013 - 12:20 | Link to Comment css1971
css1971's picture

Bonds/Stocks I don't see how you lose.

 

Oh wait. hold currency. Like your ordinary person.

Thu, 04/25/2013 - 14:09 | Link to Comment Umh
Umh's picture

Then don't do that.

Thu, 04/25/2013 - 12:23 | Link to Comment fonzannoon
fonzannoon's picture

paging ekm....paging ekm...please pick up the white courtesy phone.

Thu, 04/25/2013 - 12:22 | Link to Comment orangegeek
orangegeek's picture

Some June Puts should do the trick.

 

Hopefully the premiums aren't up in the tens of thousands.

 

LMFAO!!!!!  Moar gongshow please.

Thu, 04/25/2013 - 12:24 | Link to Comment youngman
youngman's picture

I wonder if they have a HFT Computer????  Do they short too????   this is the end game....they will be the last player..but what will it do to CNBC...will Bernanke be the only guy on TV every day interviewed as he is the only buyer left...and what about all those analists????? what will they spew about and where????? 

Thu, 04/25/2013 - 12:26 | Link to Comment bonzo112358
bonzo112358's picture

At some point fundamentals do catch up.  Safeway(swy) is a good example today of what happens when reality meets momentum.  Of course I didn't have the nerve to pull the trigger on puts yesterday but if anyone did congrats on a great trade.

Thu, 04/25/2013 - 13:47 | Link to Comment NotApplicable
NotApplicable's picture

All the winnings in the world won't amount to anything when your account gets Corzined.

The only "great" trade these days is OTC.

Thu, 04/25/2013 - 12:27 | Link to Comment Dr. Engali
Dr. Engali's picture

If all this shit doesn't prove that the market is about to be vaporized nothing will. I pity the sheep still in this thing when it's gone.

Thu, 04/25/2013 - 12:29 | Link to Comment fonzannoon
fonzannoon's picture

Doc they sparked a gun debate and sent every gun and ammo flying off the shelves. They smashed gold down and sent every ounce flying off the shelves.

Do you get the feeling they want us armed to the teeth and in a total panic when they pull the plug? They could hang back in hiding with their munitions while we massively rectify the population bubble ourselves.

Thu, 04/25/2013 - 12:46 | Link to Comment Dr. Engali
Dr. Engali's picture

Fonz beyond a doubt there will be a great die off as the golden hordes exit the major population centers. My thoughts are that they have sufficiently divided the population to the point where we will wipe each other out then they will come in and mop up the rest....or at least they will try.

Thu, 04/25/2013 - 12:55 | Link to Comment centerline
centerline's picture

Self-liquidating unfunded liabilities.  Just need a crisis to make it happen.  Anything that hits electronic systems like EBT and ATM cards would do... a banking crisis, cyper attack, etc.

 

Thu, 04/25/2013 - 12:50 | Link to Comment centerline
centerline's picture

Fonz, great questions.  I really have had to step back and wonder if the public is playing right into this.

The only other plausible explanation is just pure stupidy.  But, I have a hard time swallowing this because it is just too stupid.

 

Thu, 04/25/2013 - 12:58 | Link to Comment fonzannoon
fonzannoon's picture

I just watched Mark Cuban on CNBC. I have no idea why but I like Mark Cuban a lot. He seems extremely intelligent and pretty sincere. He said every excess dime he has right now is shorting the yen. To see him just playing along makes me think this will just go on and on. But then articles like this solidify how it is going to end, and it will be awful.

Thu, 04/25/2013 - 13:05 | Link to Comment centerline
centerline's picture

Nothing scares me more than seeing a vast majority line up on one side of anything. lol.

Thu, 04/25/2013 - 13:08 | Link to Comment rqb1
rqb1's picture

Do you remember when he called WS a ponzi scheme?

Thu, 04/25/2013 - 13:46 | Link to Comment dontgoforit
dontgoforit's picture

I envision it like a slo-mo train wreck happening just up the road.  You can see it coming, folks on the train are having a big time, but you know the end is just a cling-clang away.  Oh NO!

Thu, 04/25/2013 - 12:28 | Link to Comment GoldForCash
GoldForCash's picture

OH WOW REALLY.....I'M SELLING EVERYTHING AND PURCHASING STOCKS.....

Thu, 04/25/2013 - 12:29 | Link to Comment fuu
fuu's picture

Check kiting writ large.

Thu, 04/25/2013 - 12:29 | Link to Comment Temporalist
Temporalist's picture

I'd like to recommend that they buy IPET. 

"Hey, if we all buy the price will only go up!"

Thu, 04/25/2013 - 12:29 | Link to Comment bnbdnb
bnbdnb's picture

Disappearing debt, coming to a Central Bank near you.

Thu, 04/25/2013 - 12:32 | Link to Comment kito
kito's picture

wow, so cbs are buying gold and stocks hand over fist.....what a fubar-ed world we live in......................

Thu, 04/25/2013 - 13:49 | Link to Comment NotApplicable
NotApplicable's picture

Well, somebody's gotta put a little velocity behind those "reserves."

Thu, 04/25/2013 - 12:32 | Link to Comment rosiescenario
rosiescenario's picture

Makes complete sense....when you are TBTF all the risk you take either results in a profit for your bank or a problem to be born by everyone else.

 

If you were running a TBTF, you'd be stupid not to take that "gamble"....hell, you can bet on anything, but stocks are where you can lay down those really big bets and at the same time garner political approval from those folks that will make sure that you do never lose.

 

I sure would not do any shorting in this market, unless you are a Congressional aid and have some really good inside information....

Thu, 04/25/2013 - 12:46 | Link to Comment forwardho
forwardho's picture

Yes.

Its not their $$

Why would they not gamble?

All they have to loose is the bonus if it fall apart.

Human nature unbridled from ethics.

Thu, 04/25/2013 - 12:32 | Link to Comment youngman
youngman's picture

Do you think they will have any political pressure is what stocks they buy ..like GM and GE is okay...but Smith & Wesson is not????  green Solyandra/ Fisker is good...but Exxon is not...

Thu, 04/25/2013 - 12:37 | Link to Comment Everybodys All ...
Everybodys All American's picture

community organizing ...

Thu, 04/25/2013 - 12:45 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

absolutely. See gun stocks getting crushed despite blowout earnings last quarter (and don't give me that 'buy rumor sell news' crap, as the gun companies have incredible demand/backloads, and need more investment if anything). And I suppose RGR's having no debt is a red flag, too, since they are not playing along with the Fed's induce-leverage game.

Thu, 04/25/2013 - 13:47 | Link to Comment MachoMan
MachoMan's picture

There was a short list of stocks that were bought in the 08/09 crash/fiasco...  harley davidson and mcdonalds come to mind.  Merica

Thu, 04/25/2013 - 12:33 | Link to Comment Temporalist
Temporalist's picture

So now every company that the CBs own is too big too fail right?  I mean, they would never pick a loser and if they did...just buy more stock right?  Bail outs?  Is it raining motherfucking unicorns outside?

Thu, 04/25/2013 - 12:35 | Link to Comment earleflorida
earleflorida's picture

so, the free market system is by all standards officially DOA?!

Thu, 04/25/2013 - 12:36 | Link to Comment William Murderface
William Murderface's picture

You had me at "tin-foil-hat wearing digital dickweed blogs..."

 

Thu, 04/25/2013 - 12:35 | Link to Comment Central Wanker
Central Wanker's picture

The only asset class that is able to maintain its value without Fed's assistance seems to be precious metals.

Thu, 04/25/2013 - 12:39 | Link to Comment kito
kito's picture

not true. if the world was run in a volker-esqe way (which it cannot at this point-impossible), gold would not be shining so bright...people are buying gold as a direct result of the fed's insanity...as protection from their belief hyperinflation will rear its ugly head............................

Thu, 04/25/2013 - 12:41 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Correct Kito

Thu, 04/25/2013 - 12:50 | Link to Comment fonzannoon
fonzannoon's picture

Kito you still think they are going to save the dollar?

Thu, 04/25/2013 - 13:05 | Link to Comment kito
kito's picture

yes fonz, i do....the dollar means more to bernanke than the people.....there is no way out of this......no matter what they do, it wont work....so if the country goes down in flames one way or the other...why would bernanke take the dollar with it??? why destroy the currency along with the country????.....i believe the dollar itself wont be detroyed, only all assets that are fed by the dollar...a massive repudiation of debt that will leave physical cash longed for....although im starting to think gold will hold up if the farce that is comex actually defaults in plain view......along with everything else..................where is FRANCIS SAWYER, he had a question for me that i didnt answer....

Thu, 04/25/2013 - 13:12 | Link to Comment Dr. Engali
Dr. Engali's picture

I'm willing to bet a ham sandwich that the dollar will be toast as it currently exists when this is all said and done. Of course I don't know how I'll collect short of us meeting for a beer and you paying with some pieces of silver.

Thu, 04/25/2013 - 13:12 | Link to Comment fonzannoon
fonzannoon's picture

Assuming I can grow a fucking cucumber, put me down for a cucumber. I'm in with doc.

Thu, 04/25/2013 - 13:19 | Link to Comment kito
kito's picture

alright, you are both on!!!!............................now...when you say dollar as it is, please explain....we need some parameters in this bet..............

Thu, 04/25/2013 - 13:23 | Link to Comment fonzannoon
fonzannoon's picture

Kito the good news for you is that if me and Doc are right the chance of this bet getting settled is pretty slim.

Thu, 04/25/2013 - 13:30 | Link to Comment kito
kito's picture

no way dude.....its on......i will walk to long island from new jersey if need be.....or at least take my bike....whats better?? throgs neck or whitestone????

Thu, 04/25/2013 - 13:33 | Link to Comment fonzannoon
fonzannoon's picture

Canoe.

Fine...I have a massive cyber attack shutting down the banking system. When the dust settles we have a new paper backed currency. My only question is, is this a global thing? One (developed) world currency? I'm not sure. In either scenario...it won't be the good old USD

Thu, 04/25/2013 - 13:58 | Link to Comment kito
kito's picture

my guess is SDRS will become the worlds reserve currency...comprised of the currencies now plus gold and perhaps your cucumbers..........................

Thu, 04/25/2013 - 13:59 | Link to Comment fonzannoon
fonzannoon's picture

so where is your usd?

Thu, 04/25/2013 - 14:08 | Link to Comment kito
kito's picture

safely tucked away in the bank where i have faith in the FDIC....hahahahahahahahahahahahahahahhahahahahhaha.......................

 

Thu, 04/25/2013 - 14:01 | Link to Comment kito
kito's picture

you do realize there arent too many ways off your long island????? you have an escape pod???? its not really where id want to be if all hell breaks loose.......although there is plenty of fish nearby....................

Thu, 04/25/2013 - 14:03 | Link to Comment fonzannoon
fonzannoon's picture

There are fish on the north and south shore and plenty of farms out east. but with you bringing me cucumbers it makes it that much easier.

Thu, 04/25/2013 - 14:24 | Link to Comment Meat Hammer
Meat Hammer's picture

so if the country goes down in flames one way or the other...why would bernanke take the dollar with it???

 

IMHO, the BRICS will take the dollar down and THEN the country goes down in flames.

Thu, 04/25/2013 - 12:37 | Link to Comment bnbdnb
bnbdnb's picture

Anybody else watch that series Continuum, and you were perplexed as to whose side you were supposed to be on?

Thu, 04/25/2013 - 12:38 | Link to Comment XRAYD
XRAYD's picture

Central banks will also be bying "royalties" futures of movies which are now going to be made part of GDP. The more they buy, the greater the GDP.  

Mission accomplished!

Thu, 04/25/2013 - 12:39 | Link to Comment fonzannoon
fonzannoon's picture

I can't get it to play...but here it is, your moment of Zen

http://www.thedailyshow.com/watch/wed-april-24-2013/the-golden-rage

Thu, 04/25/2013 - 12:40 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Those who know the effects of money printing will take money off the table from the stock market and spend on goods and services, short treasuries and buy soft commodities index and hard assets (including Gold) and go on the beach. At that point the Treasuries entre bear market and if enough inflation is created, game over, the cash has to be spent period or you lose it in your deposits.

For a while PIMCO and Fed were allies (to shape the curve in a way which helps banks and housing stabilize). At some point they will be enemies because the fed wants to organize and orderly inflate away with an orderly Gov bonds bear market in the style of Great Britain post world war II.

 

Thu, 04/25/2013 - 12:40 | Link to Comment e m m
e m m's picture

There you have it, your central bank - government - corporations - money printing - taxation circle jerk.

Thu, 04/25/2013 - 12:40 | Link to Comment khakuda
khakuda's picture

Central Bank equity purchases should be called by their real name:  COMMUNISM.  The government owns the means of production.

Print "money" out of thin air and buy up all the assets people worked for and created.  Then, dole out the vallue based on political factors, not individual contributions.

Thu, 04/25/2013 - 12:39 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

Anyone hear about how the Israeli Central bank's position in AAPL worked out LOL!

 

http://www.zerohedge.com/news/next-leg-ponzi-revealed-central-banks-begi...

Thu, 04/25/2013 - 12:41 | Link to Comment devo
devo's picture

I think the "trade" here is to buy stocks, convert profits to pms, and lose them in a boating accident.

Thu, 04/25/2013 - 12:41 | Link to Comment yogibear
yogibear's picture

No more real markets.

When will Obama, with the help of the Fed copy China?

Rebuild Detroit and other crumbling cities? Create more debt and have the Fed buy it up?

Then the Fed makes the debt disappears and wipes it off it's balance sheet.

 

Thu, 04/25/2013 - 12:42 | Link to Comment DavidC
DavidC's picture

Well, as central banks are PRIVATE institutions, I don't really care if they go tits up.

DavidC

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