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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samcontrol's picture

i' m first with nothing to say..

I' m fucked

Mae Kadoodie's picture

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

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!

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)

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.

Abraxas's picture

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

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.

spastic_colon's picture

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

LawsofPhysics's picture

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

Fuck you Bernanke!

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

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.

Bullionaire's picture

"monetary policy heroine"


Yellin?  Masters?  Reinhart?

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. 

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".

dontgoforit's picture

Dismal prospect at best.  I hope ur wrong.

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...

Law97's picture

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

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?

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!

dontgoforit's picture

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

americanspirit's picture

Another brick in the wall

Groundhog Day's picture

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

StychoKiller's picture

"Money, it's a hit!

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

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??

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.

BandGap's picture

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

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.

xtop23's picture


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. 

Bay of Pigs's picture

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

LawsofPhysics's picture


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.

Pareto's picture

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

rubearish10's picture

Yeah, that was a great Chris Farley skit!

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.

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. 

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.

samcontrol's picture

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

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).

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.


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

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...

forwardho's picture

Thus the heroic efforts of averting reality.


Iconoclast's picture

Good shout, they must think we're all a bit

Hedge Fund of One's picture

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

gmak's picture

heroin. No "e" on the end.

thelibcentury's picture

Perhaps Tyler was referring to one Ms. Janet Yellen?

Beam Me Up Scotty's picture

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