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"Freely Traded Markets Are An Anachronism; Fundamental Rules No Longer Apply"

Tyler Durden's picture




 

Submitted by Lance Roberts of Street Talk Live,

March Spending Driven By Surge In Services

 

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Mon, 04/29/2013 - 17:56 | 3511453 hugovanderbubble
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Vaya farsa de mercados...."MARKETS FULLY RIGGED" 

 

La única página web financiera del mundo que merece la pena es ZEROHEDGE. 

 

Un abrazo a todo Zerohedge desde España

 

Hugo

 

I hate to fight Central banks each day of my life...but i prefer to have honor and dignity rather than be part of the scam rigged manipulated markets

 

 

 

Mon, 04/29/2013 - 18:01 | 3511476 kliguy38
kliguy38's picture

Then you should just buy physical gold and silver and take possession.....don't play their ETFs........they're a ponzi......stay out of the casino as Taibbi said its all rigged

Mon, 04/29/2013 - 17:56 | 3511454 Cursive
Cursive's picture

Hmm.  Did not know that .gov tracked "clothing repair."

Mon, 04/29/2013 - 17:59 | 3511469 prains
prains's picture

and everyone is still going to the movies for their "education"

Mon, 04/29/2013 - 18:19 | 3511525 astoriajoe
astoriajoe's picture

I just figured it was the SEC working overtime...

Mon, 04/29/2013 - 17:56 | 3511455 Encroaching Darkness
Encroaching Darkness's picture

Real-world families and economics rarely coincides with academic economics - listen to stories about the Great Depression, and contrast with what we're seeing now.

Mon, 04/29/2013 - 17:57 | 3511470 TeamDepends
TeamDepends's picture

Speaking of freely traded markets (ha),  have metals found their bottom or will they get smacked down tomorrow and Wednesday in a last gasp full-retard all in move?

Mon, 04/29/2013 - 17:58 | 3511475 Debeachesand Je...
Debeachesand Jerseyshores's picture

Hmmmm, after utlities,the next highest service item is net foreign travel.

Last vacation fling before declaring bankruptcy.

Mon, 04/29/2013 - 18:03 | 3511491 Encroaching Darkness
Encroaching Darkness's picture

Setting up their own private Galt's gulch, like Simon Black in Chile, Porter Stansberry in Nicaragua and Doug Casey in Argentina?

Or just arranging to have their "boating accidents" where metal detectors aren't common?

Mon, 04/29/2013 - 18:05 | 3511483 Stuck on Zero
Stuck on Zero's picture

The only services money that people on the Left Coast increased in March was for tax preparers.

 

Mon, 04/29/2013 - 18:02 | 3511486 Yen Cross
Yen Cross's picture

    You might as well throw technicals out the window, while you're at it...  All that matters is Chair Satans, endless (POMO) rampfest.

Mon, 04/29/2013 - 18:08 | 3511501 noless
noless's picture

Easy solution, sell inflated paper assets now to invest in the real economy. #isthatthegoal?

Mon, 04/29/2013 - 18:11 | 3511504 buzzsaw99
buzzsaw99's picture

Where is the column for wall street banker expenditures on hookers and cocaine?

Mon, 04/29/2013 - 18:18 | 3511521 Yen Cross
Yen Cross's picture

    I was thinking the same thing when he mentioned the {outsized services portion} of the gain.

Mon, 04/29/2013 - 18:10 | 3511509 asteroids
asteroids's picture

This endless FED intervention is causing problems with the correct pricing of goods and services. It's causing distortions. They'll get worse as time goes by. They are creating multiple bubbles. Odds are they'll all pop at the same time. What fools.

Mon, 04/29/2013 - 18:32 | 3511559 khakuda
khakuda's picture

Distortions?  Did you mean:

A decade plus of free money under ZIRP, a stock market rising at a 30% annual rate accelerating higher on bad news, record low junk bond yields, oversubscribed high yield funds, leveraged bond funds, massive buy to rent programs in real estate, student loan forgiveness removing the pressure to lower tuitions OR retail getting back into the stock market, FHA home subsidies, mortgage cramdowns, robosigning lawsuits, cash for clunkers, energy efficiency tax credits, healthcare tax deductibility, mortgage tax deductibility, fictitious inflation, GDP, employment statistics, 15% carried interest subsidy, HAMP, HARP, TARP, OMT, QE, Central bank equity purchases, Syphillus, etc?

Come on, there are no distortions.  Everything is fine.  Somene forgot to take their prozac this morning....

Mon, 04/29/2013 - 19:25 | 3511736 Winston of Oceania
Winston of Oceania's picture

I only need it when I think of those things together.

Mon, 04/29/2013 - 22:07 | 3512306 MisterMousePotato
MisterMousePotato's picture

khakuda ... did you 'riff' extemporaneously?

Mon, 04/29/2013 - 18:16 | 3511515 yogibear
yogibear's picture

Just keep in mind Bernanke, Evans, Dudley and Yellen cannot stop. There is no way out for the Fed.

Currency wars until the US has a currency crisis.

Bernanke and the Fed may step up debt buying. LOL, Fed's missing 9 trillion.

http://investmentwatchblog.com/9-trillion-dollars-missing-from-federal-reserve-fed-inspector-general-cant-explain/

 

While other countries are silently dumping US dollars, the FED and government as BSing until the US dollar implodes.

Mon, 04/29/2013 - 18:17 | 3511526 astoriajoe
astoriajoe's picture

So "other services" isn't Hookers & Blow?

Mon, 04/29/2013 - 18:35 | 3511527 khakuda
khakuda's picture

Central Bank Playbook

Phase 1:  Create bubble

Phase 2:  Deny existence of said bubble

Phase 3:  Stand by and watch implosion of bubble

Phase 4:  Claim NO ONE, maybe just 4 people or so who will be investigated, saw said bubble

Phase 5:  Blame someone else and create next bubble

Mon, 04/29/2013 - 19:10 | 3511674 1C3-N1N3
1C3-N1N3's picture

I have a theory on this "services" spike.

Small businesses are now more than ever switching to "contractual non-employees" and 1099ing them instead of the traditional route of signing them on as employees and paying all the shit that goes along with it. The end result is that these "independent contractors" are not having taxes withheld from their compensation. They're spending the extra up-front cash on utilities and entertainment.

Look for some serious recoil next tax season when all these "independent contractors" haven't socked away enough to cover their self-employment taxes.

Thoughts?

Mon, 04/29/2013 - 19:22 | 3511729 Winston of Oceania
Winston of Oceania's picture

They would typically contract with an agency rather than risk the liability of going one on one with who knows who.

Mon, 04/29/2013 - 19:45 | 3511780 1C3-N1N3
1C3-N1N3's picture

I see what you mean there. But I'm talking even smaller than that. For example, recently I worked on a tree farm where there were only a few of us employees, except this time around we weren't employees. We were contractors, from a legal perspective. So taxes weren't withheld from our checks.

I'm willing to bet that this is going on all over the place, and that a lot of these new "contractors" either don't know they're supposed to stash away money for self-employment tax, or they have immediate needs (like utilities) that effectively force them to dip into their reserves and spend that money, and that's what's showing up in the "services" spike.

It is that phenomenon that made me draw the connection to the increase in the demand for "services" among consumers. And if that's what's going on, that alone (all the other problems notwithstanding) will lead to a whole lotta broke people this time next year.

Mon, 04/29/2013 - 20:12 | 3511885 Vidar
Vidar's picture

This could possibly be a very positive development if all the new "contractors" simply do not file tax returns next year since they didn't pay anything in and so are not due a refund. Mass refusal to file tax returns, along with removal of money from the banks, would be a long step toward the needed revolution.

Mon, 04/29/2013 - 20:16 | 3511908 1C3-N1N3
1C3-N1N3's picture

That may very well happen, without even the notion of refusal, but by accident.

Mon, 04/29/2013 - 20:15 | 3511898 rosiescenario
rosiescenario's picture

I do not believe the figures for "movie theatres"....with all the crap that is being released now who would waste their time or money on it? Must be some sort of excel spreadsheet error....for sure.

Mon, 04/29/2013 - 20:55 | 3512048 Pinefox
Pinefox's picture

How about accounting fees for tax preparation?

Mon, 04/29/2013 - 22:45 | 3512442 Dyhana
Dyhana's picture

Hah, thought so. I read some lighthearted article today about how everybody is spending merrily even though their salaries are stagnating so I tweeted the author and asked "is this DISCRETIONARY income being spent? how does it break down?" he never did answer me and I didn't think he would. But just as I suspected, and these charts point out, people are not buying frivolity for the most part (depending on what "other services" are of course. LOL).

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