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The World Reacts To The US GDP Miss (Or Spot The Odd Market Out)

Tyler Durden's picture




 

The worst miss for US GDP since September 2011 was greeted by financial markets around the world in a variety of ways. Gold surged; the USD weakened (with JPY surging in an anti-Abe way); and Treasury yields plunged (amid increasing growth concerns. But the one market that anyone in power cares about, the US equity market, did nothing, absolutely nothing. We have two words for what the monetary policy heroine has done to our once useful 'markets', comfortably numb. It seems the bad-is-good, moar-QE trade is on in every asset class except stocks (for now).

 

 

JPY strengthening...

 

Charts: Bloomberg

 

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Fri, 04/26/2013 - 09:26 | 3501998 samcontrol
samcontrol's picture

i' m first with nothing to say..

I' m fucked

Fri, 04/26/2013 - 09:26 | 3502004 Mae Kadoodie
Mae Kadoodie's picture

Hello, is there anybody in there?  Just nod if you can hear me..

Fri, 04/26/2013 - 09:27 | 3502010 samcontrol
samcontrol's picture

alo alo ,je suis la..

can we have an article on MINERS or the guy in the weelchair in BOSTON...the rest bores me, nod if you understand!

Fri, 04/26/2013 - 09:40 | 3502072 Abraxas
Abraxas's picture

Here's your article on miners: THEY SUCK!!! Stay away from them!

I lost small fortune on these fuckers but I learned to keep my fingers safe.

If you have extra dough just go for the physical (and no, miners are not physical, no matter what KWN says)

Fri, 04/26/2013 - 12:19 | 3502740 samcontrol
samcontrol's picture

i can't get physicall, not here in Argentina, i have lost some on miners but really loading the boat now, since i can,t have an accident with it.

Fri, 04/26/2013 - 12:25 | 3502774 Abraxas
Abraxas's picture

I still own shares in this mine in Argentina (owned by Canadian company). Good luck!

Fri, 04/26/2013 - 14:28 | 3503318 samcontrol
samcontrol's picture

paas?

Fri, 04/26/2013 - 22:34 | 3504811 Abraxas
Abraxas's picture

Si.

Fri, 04/26/2013 - 09:45 | 3502088 smlbizman
smlbizman's picture

here you go...wheelchair guy with great explaination

http://educate-yourself.org/cn/bostonbombingdidyouthink20apr13.shtml

Fri, 04/26/2013 - 10:25 | 3502246 Randall Cabot
Randall Cabot's picture

That leg sure looks like a prosthetic-look how straight the"bone" is and how smooth his knee is, and I don't

know if it's my computer color or what but that blood sure looks too red for real blood.

http://educate-yourself.org/cn/leg1edit1200w.jpg

Fri, 04/26/2013 - 09:36 | 3502057 spastic_colon
spastic_colon's picture

dont worry europe has our backs today and will end green in order to help the US do the same.

Fri, 04/26/2013 - 09:28 | 3502003 LawsofPhysics
LawsofPhysics's picture

Time to find out the real cost of capital?  Probably not, 85 billion per month, indefinitely, bitchez...

Fuck you Bernanke!

Fri, 04/26/2013 - 09:29 | 3502007 Groundhog Day
Groundhog Day's picture

Why not just make it 850b a month and be done with it.  Stocks will soar and everyone will be happy.  The End

Fri, 04/26/2013 - 09:30 | 3502025 LawsofPhysics
LawsofPhysics's picture

Why not?  Simple, because then the true "transmission channels" for all that hot money would be even more obvious.  Obvious to the point that it would be clear a reletive few humans are enriching themselves.  As essential commodities head to the stratoshpere, any sort of government control would be lost.  Money is really irrelevant, this is all about power and control, nothing else.

Fri, 04/26/2013 - 09:53 | 3502129 Spastica Rex
Spastica Rex's picture

New Feudal World Order

Fri, 04/26/2013 - 10:54 | 3502345 Bullionaire
Bullionaire's picture

"monetary policy heroine"

 

Yellin?  Masters?  Reinhart?

Fri, 04/26/2013 - 10:04 | 3502168 yogibear
yogibear's picture

"true "transmission channels" for all that hot money would be even more obvious. "

They don't seem to care anyway. The few that are enriching themselves don't care as long as they have it all.

You see for these people, I know of a couple of them. They never have enough. They want it all.

Eric Holder said he cannot procecute the big players. He's telling the muppets this in a speech. 

Fri, 04/26/2013 - 10:11 | 3502180 LawsofPhysics
LawsofPhysics's picture

Please, I have two brother-in-laws in venture capital. Here's the thing, eventually "the club" starts shrinking and someone with access to real power and resources gets stabbed in the back, then and only then might you see a real effort to change things.  Outside of that, change will only come once the majority of wage earners can't make ends meet, control will be lost as the world becomes Afghanistan and the remaining few local power brokers become "warlords".

Fri, 04/26/2013 - 13:28 | 3503093 dontgoforit
dontgoforit's picture

Dismal prospect at best.  I hope ur wrong.

Fri, 04/26/2013 - 09:44 | 3502079 Sudden Debt
Sudden Debt's picture

If you would give every American 250$ just for the heck of it each month, I think the economy would be in better shape than it is now.

no... they print 250$ each month, give it to the non-paying billionaires, and tax the Americans for it...

it makes all the sense in the world...

Fri, 04/26/2013 - 10:29 | 3502173 Law97
Law97's picture

It isn't about helping the economy.  It is all about entrenching the new Feudal Overlords.

Fri, 04/26/2013 - 13:33 | 3503106 dontgoforit
dontgoforit's picture

Isn't that the point, though?  Legal robbery.  How else can you fleece America and the rest?  This is quite literally the easiest way to do it.  If we were to call them on it, that would be called an insurrection.  And other than Bernanke and a few others, do we even know who the kingpins of this yarn mill are?

Fri, 04/26/2013 - 09:59 | 3502156 Ban KKiller
Ban KKiller's picture

Won't all those derivatives on the banks books save the day? I mean we all buy derivatives, right? The derivatives must be good things because the banks claim them as assets? Meanwhile...stack!

Fri, 04/26/2013 - 13:32 | 3503108 dontgoforit
dontgoforit's picture

Nothing like 'over-inflated' value of inventory to allow borrowing beyond the hilt.

Fri, 04/26/2013 - 09:29 | 3502006 americanspirit
americanspirit's picture

Another brick in the wall

Fri, 04/26/2013 - 09:31 | 3502016 Groundhog Day
Groundhog Day's picture

Hey! Teacher (Bernanke) leave those kids (zero's and one's) alone

Fri, 04/26/2013 - 09:46 | 3502105 StychoKiller
StychoKiller's picture

"Money, it's a hit!

Don't give me that goody-good bullsh!t!"

Fri, 04/26/2013 - 09:29 | 3502008 Beam Me Up Scotty
Beam Me Up Scotty's picture

Who would want to buy Yen?  Just other central banks in the biggest circle jerk mankind has ever seen??

Fri, 04/26/2013 - 09:28 | 3502012 Cursive
Cursive's picture

This is not a novel thought and is shared by many here but...I fully believe TPTB are still holding overpriced equities and haven't been able to offload it on the so-called "dumb money."  I don't think TPTB will succeed in offloading shit equities on the "dumb money" crowd.  So, every day that TPTB wait for the handoff is another day that their shit equities rot even more.  TPTB will have to eat their shit equities this time.  Of course, by that time, unless there is a major political sea change in Amerika, we will all be living in a van down by the river.

Fri, 04/26/2013 - 09:34 | 3502047 BandGap
BandGap's picture

Greed knows no bounds. There has to be a time when the cost of holding outweighs the cost of folding.

Fri, 04/26/2013 - 09:46 | 3502098 Abraxas
Abraxas's picture

I agree with you guys 100%, but I don't think they (TPTB) will have to eat up the shit they created. I'm afraid that honor belongs to the rest of us.

Fri, 04/26/2013 - 10:01 | 3502161 xtop23
xtop23's picture

+1 

They'll dump it on the public sector again. Dodd-Frank be damned.

Legality is merely a formality requiring a brief phone call to D.C. 

Fri, 04/26/2013 - 09:34 | 3502048 Bay of Pigs
Bay of Pigs's picture

As long as we have some cheese to eat we're good.

Fri, 04/26/2013 - 09:35 | 3502050 LawsofPhysics
LawsofPhysics's picture

Cursive,

If it's a van down by the Hood River it might not be so bad.  This is about power and control, period.  The relative few that have been enriching themselves know damn well that if the price in fiat for essential commodities is beyond reach for the vast majority, they will lose all control as people resort to barter and black markets. Once that happens en mass, these same people will no longer have a transmission mechanism to continue the looting or their power and control.  Pakistan and Afghanistan are already there.  India as well.  Russia to a lesser extent.

Fri, 04/26/2013 - 09:44 | 3502096 Pareto
Pareto's picture

"Ricky.....whats a shit equity?"

Fri, 04/26/2013 - 09:52 | 3502137 rubearish10
rubearish10's picture

Yeah, that was a great Chris Farley skit!

Fri, 04/26/2013 - 10:44 | 3502311 mendigo
mendigo's picture

Or maybe in this case it will turn out the the fed is the dumb money - Ben can't make j'hole because he's busy packing his bags and will disappear in Venezuela. Perhaps retail is sneaking out the back-door early this time - leaving the real smucks holding the bag...oh wait, that's us!Will be one week of entertainment followed by years of suffer - will keep a 6-pack of Anchor Steam Porter or Smutty Nose Ale on-hand for to enjoy. I picture them chasing Dimon and Corzine at low speed in white Bronco.

We are having the Wile Coyote moment - off the cliff and don't know it yet.

Fri, 04/26/2013 - 09:31 | 3502015 Iconoclast
Iconoclast's picture

As you pointed out yesterday; when central banks are buying equities, in order to push the whole charade to new heights, it'll take something nuclear to stop this secular rise. 

Fri, 04/26/2013 - 09:31 | 3502018 kensdad
kensdad's picture

I don't care that the permabulls keep buying and stock prices keep rising (this will eventually end badly), but I wish that they would STFU about the improving economy.

Fri, 04/26/2013 - 09:34 | 3502035 samcontrol
samcontrol's picture

but but that is the whole idea, to feed everybody bs.

Fri, 04/26/2013 - 09:38 | 3502060 BandGap
BandGap's picture

With the labor participation rate in the toilet and 20% of America on Foodstamps, they need a beacon.

Never mind that most Americans don't own stocks (anymore).

Fri, 04/26/2013 - 09:37 | 3502067 SKY85hawk
SKY85hawk's picture

-          The effectiveness of monetary policy was last discredited in the 1970s. The persistent attempts to revive growth with easy money led to stagflation.  The real world has turned to be opposite to the favored positions of the economics profession: the financial market is not only inefficient but systematically bubble-prone. 

Trying to bring back yesterday through monetary growth will eventually bring inflation, not growth.  This is what the Gov’t wants/needs in order to ‘pay off the Debt’. 

Remember 1969 thru 1981?

Recall the politician's responses.

It was also a time of Stagflation. 

The 'Bob Hope" generation had entered their 'spend less-save more' life stage.  OUR Parents!

It should be clear that the baby-boom is in the same life-stage.

Not one Politician will admit they are helpless to restart Economic Growth! 

They will wait this thing out, just like before.

We must demand cuts in Government spending, to match cuts in government revenue.

 

Fri, 04/26/2013 - 09:43 | 3502089 Debugas
Debugas's picture

the solution then was found - consumer credit !!!

today we are back to the same problem but this time consumer is in high debt

Fri, 04/26/2013 - 09:48 | 3502119 LawsofPhysics
LawsofPhysics's picture

It's a bit more complicated.  Energy is required to actually do anything.  Growth in paper-pushing bullshit, sure, that's easy.  However, in the real world, real growth, more jobs, requires an increase in the energy resources available to humanity.  Has the energy available humanity increases substantially?  The number of human beings is still growing, if the available energy isn't, then guess what happens to everyone's quality of life?  Now, if a few billion people were to suddenly get vaporized, well, then yes, jobs and a higher standard of living would be available to those left...

Fri, 04/26/2013 - 10:06 | 3502171 forwardho
forwardho's picture

Thus the heroic efforts of averting reality.

 

Fri, 04/26/2013 - 10:47 | 3502327 Iconoclast
Iconoclast's picture

Good shout, they must think we're all a bit dense...oh...er...

Fri, 04/26/2013 - 09:32 | 3502022 Hedge Fund of One
Hedge Fund of One's picture

Another piece of evidence how little trust is placed in economisseds projections.  

Fri, 04/26/2013 - 09:31 | 3502033 gmak
gmak's picture

heroin. No "e" on the end.

Fri, 04/26/2013 - 09:38 | 3502071 thelibcentury
thelibcentury's picture

Perhaps Tyler was referring to one Ms. Janet Yellen?

Fri, 04/26/2013 - 09:46 | 3502106 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'd rather wish it was Lindsay Wagner's Wonder Woman! 

Fri, 04/26/2013 - 09:48 | 3502103 i-dog
i-dog's picture

I think he was referring to the Bernank's well-known penchant for cross dressing.

Fri, 04/26/2013 - 09:32 | 3502039 ilovemilken
ilovemilken's picture

If the world ended tommorrow there would still be buyers of stocks.

Fri, 04/26/2013 - 09:34 | 3502044 ilovemilken
ilovemilken's picture

Regardless of the sour econonmic news as long as companies keep posting solid earnings this bull market will be sustained. There is no longer any correlation w/the econonmy on the stock market.

Fri, 04/26/2013 - 09:38 | 3502053 SheepDog-One
SheepDog-One's picture

'Solid earnings'? Serious Coke bottle rose colored glassed are required to see that.

Fri, 04/26/2013 - 09:35 | 3502051 Racer
Racer's picture

HFTs playing superfast hot potatoes again today to bump the hype, uh, Dow and SPits higher

Fri, 04/26/2013 - 09:37 | 3502065 rsnoble
rsnoble's picture

Time to blow up another country and take all their shit it's looking like.

Fri, 04/26/2013 - 09:37 | 3502066 PUD
PUD's picture

DOW WENT RED FOR A TERRIFYING 30 SECONDS THERE

Fri, 04/26/2013 - 09:46 | 3502092 Sudden Debt
Sudden Debt's picture

yeah... I had to take a crap when I saw that one... it was like all Armegedone style...

Fri, 04/26/2013 - 09:40 | 3502075 thismarketisrigged
thismarketisrigged's picture

fuck the fed , obama, and wall st, i hope every single person involved in this scam suffers a terrible fate.

 

can they at least pretend there is some fundementals involved and at least have a sell off today because of a bad gdp number?

 

this is so fucking insane, ive never seen a market so disconnected to the economy, this is historic.

Fri, 04/26/2013 - 09:48 | 3502120 forwardho
forwardho's picture

The chart shouts one message.

We are in conrol.

Fri, 04/26/2013 - 09:52 | 3502136 Awakened Sheeple
Awakened Sheeple's picture

At least during Weimar, people were working.

Fri, 04/26/2013 - 09:47 | 3502097 Sudden Debt
Sudden Debt's picture

GALAXY 2

APPLE 1

That's the ratio of sold smartphones. It's like Azia is taking over the Apple of the American economy!!

Fri, 04/26/2013 - 09:54 | 3502133 Temporalist
Temporalist's picture

The US just needs moar defense spending.  It so obvious you ZH whiners can't see the silver lining in this report that the US will just expand the military (maybe another 50,000 drones) as a result of the low GDP number and everything will be positive again.

Fri, 04/26/2013 - 09:52 | 3502134 ilovemilken
ilovemilken's picture

Stagflation Part Deux?

Fri, 04/26/2013 - 09:57 | 3502147 geewhiz190
geewhiz190's picture

gold up 8 bucks-surge?

Fri, 04/26/2013 - 10:07 | 3502175 jubber
jubber's picture

large POMO in 10 minutes , and also more  Monday and Tueday, should be comfortably over S&P 1600 by Wednesday

Fri, 04/26/2013 - 10:09 | 3502176 yogibear
yogibear's picture

Until it implodes, larger and larger amounts of QE. Like the drug addict. In excessive amounts it become a toxin.

Collects in the organs (stock market) until it kills the patient.

Fri, 04/26/2013 - 10:06 | 3502178 BullyBearish
BullyBearish's picture

Check here at 2p on April 30 for the next installment of "Where Your Money Went":

http://www.newyorkfed.org/markets/tot_operation_schedule.html

 

Fri, 04/26/2013 - 10:12 | 3502181 yogibear
yogibear's picture

Bernanke, Evans, Dudley and Yellen are steering the Titanic right into an iceberg at full speed.

Currency crisis straight ahead.

Watch the Fed be in panic mode as their currency becomes what it deserves to be. 

Fri, 04/26/2013 - 10:17 | 3502196 WarPony
WarPony's picture

did you exchange

your walk on part in the war

for a lead role in a cage?

Fri, 04/26/2013 - 10:15 | 3502201 NoTTD
NoTTD's picture

"Comforably DUMB" seems more appropriate.

Fri, 04/26/2013 - 10:23 | 3502223 Falconsixone
Falconsixone's picture

If I didn't care more than words can say
If I didn't care would I feel this way?
If this isn't love then why do I thrill?
And what makes my head go 'round and 'round
While my heart stands still?

Ink Spots

Fri, 04/26/2013 - 10:30 | 3502254 red_pill
red_pill's picture

"Did they expect us to treat them with any respect?
They can polish their medals and sharpen their
Smiles, and amuse themselves playing games for awhile.
Boom boom, bang bang, lie down you're dead.

Safe in the permanent gaze of a cold glass eye
With their favorite toys
They'll be good girls and boys
In the Fletcher Memorial Home for colonial
Wasters of life and limb.

Is everyone in?
Are you having a nice time?
Now the final solution can be applied"

'The Fletcher Memorial Home" from Wish You Were Here

Fri, 04/26/2013 - 11:29 | 3502497 gjp
gjp's picture

From Final Cut actually.  Love Pink Floyd

Fri, 04/26/2013 - 10:31 | 3502261 red_pill
red_pill's picture

"Big man, pig man, ha ha charade you are.
You well heeled big wheel, ha ha charade you are.
And when your hand is on your heart,
You're nearly a good laugh,
Almost a joker,
With your head down in the pig bin,
Saying "Keep on digging."
Pig stain on your fat chin.
What do you hope to find.
When you're down in the pig mine.
You're nearly a laugh,
You're nearly a laugh
But you're really a cry."

'Pigs' from Animals

Fri, 04/26/2013 - 10:32 | 3502274 red_pill
red_pill's picture

Now in darkness world stops turning
Ashes where the bodies burning
No more war pigs have the power
Hand of God has struck the hour
Day of judgement, God is calling
On their knees the war pig's crawling
Begging mercy for their sins
Satan laughing spreads his wings
Oh lord yeah!

"War Pigs' by Black Sabbath

Fri, 04/26/2013 - 10:32 | 3502275 orangegeek
orangegeek's picture

GDP misses by 22% (2.5% instead of 3.4%).

 

Dow Jones up 38 points.

 

Makes good fucking sense to me.  LMFAO!!!!

 

In these markets Enron/Worldcom would have never happened.

Fri, 04/26/2013 - 10:49 | 3502330 Itgoestoeleven
Itgoestoeleven's picture

I am tired of the conspiracy stuff. It ls all speculation. Many credible sounding pundits have conflicting theories; they can't all be correct. Here is my conspiracy theory . Most people are unble to run themselves let alone an entire country. Combine bad decisions, hubris and a little greed and you have a recipe for our current disaster. I believe hubris and ineptitude sealed our fate many years ago. What we are witnessing now is a smash and grab operation before everything goes to hell. It does not matter what method or accident led us the the edge, because no mater what, one must always have: shelter, water, food, security and love. Please prepare accordingly.  To paraphrase Ayn Rand "do not attribute tragedy to some dark conspiracy when ineptitude will suffice".

 

Fri, 04/26/2013 - 10:57 | 3502363 The Invisible Foot
The Invisible Foot's picture

DON'T TAZE ME BRO!

Fri, 04/26/2013 - 12:33 | 3502809 realtick
realtick's picture

shouldn't it be called Gross Homeland Product?

Real Gross Homeland Product

Fri, 04/26/2013 - 12:51 | 3502911 monad
monad's picture

Boycott chinese goods. Send it all back.

Fri, 04/26/2013 - 14:33 | 3503334 Golden_Rule
Golden_Rule's picture

The market got to see what it wanted; more pain and misery for the working class, more stimulus for the investment class.

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