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Macro Collapse Pushes S&P 500 To New All-Time Nominal High And Close

Tyler Durden's picture




 

"Horrible" PMI, no problem; just add it to the list of macro data that has missed significantly in recent weeks. Bloomberg's US Macro index has utterly collapse in recent weeks - now at its worst level in 7 months but apparently if good is good, bad is better, and totally shitty is absolutely awesome. It would appear the world of nominal equity index chasers is now fully cognizant that the reality of their lemming like herding is based on one simple thing (no matter how much they kick and scream and proclaim wisdom about earnings cycles, growth, margins, transformative energy, or new AAPL products) - and that is... Central Bank promises.

And just to timestamp this, both the closing print, or right around it, and the all time nominal intraday high, coincide.

If the Fed needed any ammo for tomorrow to hint that there is a time frame longer than infinite and that there is a size of imprudence larger than infinity, then they have it... of course, there is, once gain, very weak volume on this uptick (but like everything else, that doesn't matter either.)

 

 

So what does more CB exuberance mean for Gold?

 

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Tue, 04/30/2013 - 16:06 | 3515211 Spastica Rex
Spastica Rex's picture

Reality is for pussies.

Tue, 04/30/2013 - 16:09 | 3515233 New England Patriot
New England Patriot's picture

Scary.

Tue, 04/30/2013 - 16:23 | 3515283 flacon
flacon's picture

"Let me take you down, 'cos I'm going to Strawberry Fields.

 Nothing is real and nothing to get hungabout.

Strawberry Fields forever."

~ Beatles


Tue, 04/30/2013 - 16:24 | 3515291 Kilgore Trout
Kilgore Trout's picture

I buried Paul.

Tue, 04/30/2013 - 16:28 | 3515313 shermacman
shermacman's picture

I am the walrus.

Tue, 04/30/2013 - 16:29 | 3515317 Mark Carney
Mark Carney's picture

Ya, but BANKIA for the WIN!!!!1!!! lol 700% highs

Tue, 04/30/2013 - 16:34 | 3515335 francis_sawyer
francis_sawyer's picture

Baby You're a Rich Man [oh wait]

~~~

http://www.beatlesbible.com/songs/baby-youre-a-rich-man/

Tue, 04/30/2013 - 16:35 | 3515338 Dr. Richard Head
Dr. Richard Head's picture

Hearing of rumors of a "big boom" that was just heard in Times Square.  Can anyone confirm?

Tue, 04/30/2013 - 16:38 | 3515344 Dr. Richard Head
Dr. Richard Head's picture

Scratch that.  it was a battery from a lift that exploded. https://vine.co/v/bxYt61325ji

Carry on.....

And I'm in Ohio.  Lordy.

Tue, 04/30/2013 - 17:00 | 3515435 francis_sawyer
francis_sawyer's picture

Last time that happened, Charlie got the keys to the chocolate factory...

Tue, 04/30/2013 - 17:34 | 3515545 Manthong
Manthong's picture

"totally shitty is absolutely awesome"

sounds like a good reason for another drink to me

Tue, 04/30/2013 - 19:10 | 3515838 malikai
malikai's picture

Congrats S&P on this historic non-event! Here's today's fantastic gains priced in BTC.

http://blog.quantsig.net/2013/04/30/spbtc/

Tue, 04/30/2013 - 19:13 | 3515845 SeattleBruce
SeattleBruce's picture

Isn't that a quote from Orwell's 1984?

Wed, 05/01/2013 - 00:53 | 3516800 MythicalFish
MythicalFish's picture

More shitty news from China, MSM salivating.

 

http://www.cnbc.com/id/100692461

 

Tue, 04/30/2013 - 17:36 | 3515562 Pure Evil
Pure Evil's picture

Or, maybe Queen Bloomberg's head exploded.

Tue, 04/30/2013 - 16:47 | 3515383 Panafrican Funk...
Panafrican Funktron Robot's picture

http://finance.fortune.cnn.com/2013/04/30/mega-banks-disappear/?iid=SF_TS_Lead

Of the 28 global banks the consulting firm looked at, only three -- Goldman Sachs (GS), Deutsche Bank (DB), and JPMorgan Chase (JPM) -- will be able to remain at their current size, according to BCG.

-----------------------------------------

Color me super fucking surprised.

Tue, 04/30/2013 - 17:36 | 3515561 Manthong
Manthong's picture

cool..  one thing though..  GS as a bank  brings to mind George Carlin’s seven words and..

““tits” shouldn’t even be on the list”

Tue, 04/30/2013 - 16:24 | 3515304 SheepDog-One
SheepDog-One's picture

I'm probably the oddball on this...but I always hated the fucking Beatles. Nothing to get hungabout though I guess...WTF is that word supposed to mean anyway, I think they just made it up.

Tue, 04/30/2013 - 16:28 | 3515311 MisterMousePotato
MisterMousePotato's picture

The stuff George Harrison wrote was pretty good, though.  Too bad Lennon and McCartney wouldn't give him his due.

Tue, 04/30/2013 - 16:50 | 3515384 max2205
max2205's picture

Trend is your friend

Tue, 04/30/2013 - 19:01 | 3515806 LooseLee
LooseLee's picture

George has always been my favorite. Then the group; then Lennon

Tue, 04/30/2013 - 16:39 | 3515348 McMolotov
Tue, 04/30/2013 - 17:14 | 3515500 MisterMousePotato
MisterMousePotato's picture

Not very lyrical.

Tue, 04/30/2013 - 19:09 | 3515836 Randall Cabot
Randall Cabot's picture

But the S&P roller coaster only goes up!

Tue, 04/30/2013 - 16:14 | 3515238 Abraxas
Abraxas's picture

Saving is for dicks.

Tue, 04/30/2013 - 16:22 | 3515287 THX 1178
THX 1178's picture

The S&P is for savvy investor-kings.

 

Tue, 04/30/2013 - 16:33 | 3515333 Groundhog Day
Groundhog Day's picture

so close to the 1600 party.  I 'm getting anxious to crack open the 1984 Dom.  I thought it would be today for sure

Tue, 04/30/2013 - 16:47 | 3515378 THX 1178
THX 1178's picture

15,000 DJIA is equally close. SO. CLOSE.

Tue, 04/30/2013 - 16:20 | 3515286 Law97
Law97's picture

Broke pussies, especially, Bob.

Tue, 04/30/2013 - 16:06 | 3515212 SheepDog-One
SheepDog-One's picture

Any little drop must be immediately recorved, plus some more....the 'new normal' of the Cuckoo's Nest.

Tue, 04/30/2013 - 16:24 | 3515296 Bay of Pigs
Bay of Pigs's picture

"if good is good, bad is better, and totally shitty is absolutely awesome"

A ZH classic...nice one Tyler(s)

Tue, 04/30/2013 - 17:40 | 3515572 Pure Evil
Pure Evil's picture

Maybe they can make a new movie with it.

The Good,

       The Better,

             and The Shitty

Tue, 04/30/2013 - 16:10 | 3515218 sunny
sunny's picture

When Kyle Bass was asked how long the markets would continue to grind up, he simply said, "As long as the Fed prints."  So far this looks like the best bet going for understanding how the markets will behave.  Nothing else matters.

sunny

Tue, 04/30/2013 - 16:12 | 3515239 negative rates
negative rates's picture

You got it backwards, should be how long the Fed will grinds up, and as long as the mkt prints.

Tue, 04/30/2013 - 17:33 | 3515551 new game
new game's picture

grinding defined: separation of money for precieved gains sometime in the algo future.

separation by grinding, incremental.

Tue, 04/30/2013 - 16:08 | 3515222 TrustWho
TrustWho's picture

The Feds are flooding the market with fiat money. How can they also depress the price of GOLD? How long can they continue depressing the gold price?

Tue, 04/30/2013 - 16:14 | 3515243 negative rates
negative rates's picture

It takes a week to train the fat lady to the cemetary so, at least that long.

Tue, 04/30/2013 - 16:30 | 3515319 eclectic syncretist
eclectic syncretist's picture

I don't know how long they can keep a lid on PMs, but I know my junior miners took off this afternoon!

Tue, 04/30/2013 - 16:41 | 3515356 Abraxas
Abraxas's picture

Mine too, but to 10% of the price I paid for them.

Tue, 04/30/2013 - 16:58 | 3515418 prains
prains's picture

exactly, that's a big hill of blood to climb back up, to even see the light of day again

Tue, 04/30/2013 - 17:34 | 3515507 Supernova Born
Supernova Born's picture

Is there any central bank that advocates a return to a gold-backed currency?

Yet most central banks continue to buy gold.

What is the reason for these purchases?

To control the gold market. CBs own the lion's share of the world's gold and they use that gold to keep gold from becoming an alternative to their fiat paper.

Gold doesn't "back" a single major currency in the world today. Gold is far more likely to undermine baseless fiat and CBs know it.

Bernanke lied when he said it was "tradition".

CBs hold gold so they can manipulate gold when it threatens their baseless fiat monopoly.

Tue, 04/30/2013 - 17:41 | 3515569 Tulpa
Tulpa's picture

But they can only manipulate by selling it, and once buyers start demanding phys (which seems to be snowballing now) that means the more they manipulate the less control they'll have in the future.

Tue, 04/30/2013 - 17:43 | 3515580 Pure Evil
Pure Evil's picture

That's all true, but do we know exactly who they're selling it to. More than likely each other. So in all reality no physical gold moves, just adjustments made to a spreadsheet.

Tue, 04/30/2013 - 18:09 | 3515603 Supernova Born
Supernova Born's picture

The extent to which the world has flown from reality on wings of baseless fiat cannot be overstated.

They can print any amount of money. Gold has a finite price. They could buy all that was available or they could ban its sale.

Gold cannot rise to market without a sovereign backer who steps away completely from the baseless fiat table. Sovereigns presently prefer money printing.

It will take a Black Swan event to force a sovereign to prefer the reality they've earned over the fantasy the debtor world wants to preserve.

Tue, 04/30/2013 - 18:23 | 3515666 Tulpa
Tulpa's picture

But in that case they're buying exactly as much as they're selling and not having any net effect on the price. To suppress the price they have to force other sellers to lower their asking price by stealing buyers.

Tue, 04/30/2013 - 18:31 | 3515684 akak
akak's picture

SupernovaBorn stated:

CBs own the lion's share of the world's gold

But this is simply not the case --- world central banks only hold around 15% of the known world's gold reserves --- and that is IF one accepts their stated reserve values as the truth, which at least in the USA's case I believe to be laughably high.  It would not shock me in the least if the US Fed and/or Treasure did not posess 10% of the physical gold which they claim to hold.

Tue, 04/30/2013 - 18:57 | 3515787 Supernova Born
Supernova Born's picture

Central bank holdings (China's most importantly) are a "known unknown" so my making reference to what is held by CBs was erroneous.

Tue, 04/30/2013 - 19:07 | 3515830 LooseLee
LooseLee's picture

My 'cash' position has been going to select juniors for the past month. I am down to very little 'dry powder'. I'm short the NAS, RUS, and SP so when that dog finally hunts I will deploy those funds into G&S juniors. I have plenty of physical...

Tue, 04/30/2013 - 16:55 | 3515404 helping_friendl...
helping_friendly_book's picture

They can depress the price of gold with a drop in the market. If the price of gold gets to high they make the dow drop 120 points and people have to sell their gold to meet margin requirements. Then the game starts over and the market creeps up, gold breaks $1500/oz, take the Dow down, margin call to cover your market loss so you sell some gold and the price of gold drops.

Tue, 04/30/2013 - 16:08 | 3515223 Cursive
Cursive's picture

Well, I did say SPX1600 was worthy of the WTF subReddit.

Tue, 04/30/2013 - 16:08 | 3515226 Cognitive Dissonance
Cognitive Dissonance's picture

Silly Tyler.

All your broken correlations are belong to us.

Tue, 04/30/2013 - 16:11 | 3515228 negative rates
negative rates's picture

Doesn't matter until the surprises and consequences start kicking in.

Tue, 04/30/2013 - 16:12 | 3515246 SheepDog-One
SheepDog-One's picture

It's all a big party and everyone always believes it will never end, they're all having so much fun and all....then the bill innevitably arrives and everyone is all 'OMG' all of a sudden.

Tue, 04/30/2013 - 16:15 | 3515264 john39
john39's picture

except the ponzi masters all get advance notice so they can leave idiots, governments, taxpayers and pensions holding the flaming bag of shit.

Tue, 04/30/2013 - 16:35 | 3515339 Law97
Law97's picture

After the fucking the American people took in 2008-2009, my only hope is they don't let themselves get fucked again but instead make sure Wall Street finally gets its due.

Tue, 04/30/2013 - 16:42 | 3515362 Abraxas
Abraxas's picture

Dream on! Too busy watching a new reality show and getting in touch with their virtual friends.

Tue, 04/30/2013 - 19:13 | 3515844 LooseLee
LooseLee's picture

Well, their 'executions' will provide for an interesting 'twist' to this perrenial story...and believe you me, they are coming...

Tue, 04/30/2013 - 16:15 | 3515266 insanelysane
insanelysane's picture

"No one could have ever seen it coming"

Tue, 04/30/2013 - 16:24 | 3515292 SheepDog-One
SheepDog-One's picture

Each bubble implosion, everyone was convinced it could never happen again and this time was different and it will just keep going forever....this I believe lends evidence to my hypothesis that the human race is in fact on a fast downward slope to extinction.

Tue, 04/30/2013 - 16:11 | 3515229 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

reality 2.0... bigger, better and in HD!!!!

Tue, 04/30/2013 - 16:09 | 3515232 101 years and c...
101 years and counting's picture

The problem with bubbles is quite easy to understand for anyone not an Econ PhD from an Ivy League school.  Here it is:  To realize gains, you need to sell.  There, I said it.

Tue, 04/30/2013 - 16:12 | 3515234 thismarketisrigged
thismarketisrigged's picture

tomm is the most important data of the month, the fed minutes.

 

that is the only thing that can move the market down, that is if they said they would possibly unwind qe sooner than expected, but not likely to here that.

 

jobs, pmi reports, philly fed, dallas fed, etc, housing sales, u name it, it means nothing whatsoever. all this means nothing, absolutley nothing. 

 

in a normal market it would mean a lot, but with the fuckers in the fed feeding their wall st banker friends unlimited funds, fundementals mean nothing.

 

that is why when i hear on tv how big market movers coming up, whether in economic data or earnings, i laugh because it means shit,

 

even if a company misses on top and bottom line, u know within a week or 2, the stock will be at the previous price or above from which it sold off

Tue, 04/30/2013 - 16:15 | 3515251 SheepDog-One
SheepDog-One's picture

The only thing that actually 'means' anything is when the central banksters pull the rug out again. 

Tue, 04/30/2013 - 16:10 | 3515240 pods
pods's picture

Looks like they pressed that final button in the Wonkavator?

OT, and since nothing really matters anymore, has anyone ever wanted to spontaneously bust out the Oompa Loompa song and dance at work, a funeral, or while doing the Policia's roadside Olympics?

Just a thought.

pods

Tue, 04/30/2013 - 16:20 | 3515284 ParkAveFlasher
ParkAveFlasher's picture

I'm with Pods, trying to make some sense of all this through humor.  These ZH guys like Slaughterer and El Indio who trade in and out of a counterintuitive pricing space that seems a purely semantic exercise akin to 300 sperm whales conversing over great distances in obscure language in a vast ocean, I admire them.  Over my head. Me, the only way to wealth is solid daily work in an environment that I understand and am understood, and can effect others to achieve, dealing in products that I can put my hands on that have real demand by real people living real lives.

Tue, 04/30/2013 - 16:25 | 3515312 thelibcentury
thelibcentury's picture

tan trench coats, for example?

Tue, 04/30/2013 - 16:31 | 3515323 ParkAveFlasher
ParkAveFlasher's picture

Black socks, with straps.  Yes, absolutely, long those.

Tue, 04/30/2013 - 16:13 | 3515242 mattdubz86
mattdubz86's picture

none of this market analysis matters, until one day it does.

Tue, 04/30/2013 - 16:14 | 3515244 TheSilverJournal
TheSilverJournal's picture

Bernanke's stated goal is to create a wealth effect through asset bubbles. Once these asset bubbles pop, the entire system implodes...so they'll never be allowed to pop. Instead it will be the dollar that pops as all prices continue to the moon and beyond.

Tue, 04/30/2013 - 16:17 | 3515272 SheepDog-One
SheepDog-One's picture

No, the central bankers goal is to monetize the debt, thats been going on full speed now for a few years and unfortunately for all those unaware it's the last act of all failed nations/currencies/empires whatever. Anyone who actually BELIEVES 'theyre trying to creat da wealth effect' is Extinction Level Event ignorant to whats coming next....and it will NOT 'just go on forever' at all either, not by a longshot.

Tue, 04/30/2013 - 16:31 | 3515334 TheSilverJournal
TheSilverJournal's picture

That's true, it's his stated goal and he has many stated goals that sound good but have nothing to do with his true goal. His true goal is to keep the world fiat monetary ponzi from imploding for as long as possible so the central planners can suck the resources out of the economy through the printing press and redistribute to their liking. Fortunately, the ponzi is soon to end and there will be an opportunity to return to real prosperity as the printing press will soon be rendered worthless with the amount being printed about to head towards infinite.

Tue, 04/30/2013 - 16:39 | 3515346 Law97
Law97's picture

And it's no wonder the top 1% have gotten nearly 100% of the recovery gains, because they own virtually all of the stocks and stocks are the only thing the Fed has been able to push back up.  While the rest of us get hosed with zero-percent interest (on savings) and inflation.  The Fed is only serving its masters.

Tue, 04/30/2013 - 16:18 | 3515250 ekm
ekm's picture

You guys have to understand something.

 

Primary dealers are the ones with all the money in the world. They no longer need any more money to push up DOW.

 

There's so much money available in reserves, hence by use of LEVERAGE, any cent more will make no difference as far as DOW or S&P.

Tue, 04/30/2013 - 16:19 | 3515281 fonzannoon
fonzannoon's picture

ekm whether they need it or not, they are getting it, and it looks like they will be getting it right up until the end.

Tue, 04/30/2013 - 16:28 | 3515305 Dr. Engali
Dr. Engali's picture

We are getting it right up the end while the bankers laugh....well all the way to the bank.

Tue, 04/30/2013 - 16:26 | 3515314 ekm
ekm's picture

PDs get money from the Fed in exchange for bonds (how much left??) with the left hand and pay that money out with the right hand to the swap winning parties.

 

Those guys pile up on crude oil with that money, what's left goes back to US treasuries into....reserves.

PDs buy stocks and the rest.....in reserves.

 

Result: No energy hence economy has died (as chicago PMI showed, and do not forget it's gov data, which means that it's way worse than that).

 

There must be and end to lunacy. I still think Obama has the executive order on his desk to be signed at any time to crap the whole thing, as Bush did in 2008.

Tue, 04/30/2013 - 16:41 | 3515355 helping_friendl...
helping_friendly_book's picture

You can rest assured that executive order will never be signed, and this lunacy will not end, as long a as Bernake is ChairSatan. 

The minute bubbles steps down then they will push down on the flush lever.

Two week bank holiday to get everyone tuned up and cashed out of the market and then say hello to oblivion.

If you don't have 10k under the mattress, or all your savings if your smart, you will be fucked and letting me hold grampas gold wedding ring as collateral when I lend you a 100 dollars at a vig of 25 points a week.

I figure with a reserve of 1000-Franklin's I'll be raking 25k a week. 

Tue, 04/30/2013 - 16:15 | 3515253 LawsofPhysics
LawsofPhysics's picture

There is no fucking "market", there is 85 billion per month, that we know of, indefinitely.  fuck you Bernanke!

Tue, 04/30/2013 - 16:16 | 3515255 Zen Bernanke
Zen Bernanke's picture

There is only one trade when THE BIG BANK is telegraphing their play.   Buy stocks as they're being repriced to an increasingly worthless dollar.    I'm just amazed they've been able to keep it so focused in stocks. 

Tue, 04/30/2013 - 16:16 | 3515256 Ham-bone
Ham-bone's picture

what awful report or horrible economic indicator is coming up that will be the one to put us over the top...and allow the S&P to run above 1600 in green pastures forever and ever and ever...

Tue, 04/30/2013 - 16:25 | 3515299 pods
pods's picture

Wall Street is like the mood slime in that horrible Ghostbusters sequel.

pods

Tue, 04/30/2013 - 16:16 | 3515257 davhay
davhay's picture

what the HELL is going on? USA into 2nd day of celebrating because some guy admits he likes taking it up the ass. what the FUCK happened!!!! GOD help us.

Tue, 04/30/2013 - 16:21 | 3515275 SheepDog-One
SheepDog-One's picture

Huh...well maybe they're all excited that he'll become a bankster soon? They're looking for a new Fed chairsatan I hear.

But yea, 'america' is totaly fucked over at this point, swirling the bowl for sure.

Tue, 04/30/2013 - 16:34 | 3515337 Dr. Engali
Dr. Engali's picture

We are celebrating because he joined the rest of merika taking it up the ass. We don't want anybody left out.

Tue, 04/30/2013 - 20:07 | 3516002 lotsoffun
lotsoffun's picture

what was that motto 'no children left behind?'

Tue, 04/30/2013 - 17:05 | 3515454 Meat Hammer
Meat Hammer's picture

I'm going to set my time machine to 1990 and go tell some people that the President is a brotha and that yesterday he called an NBA-player brotha to congratulate him on ass-fucking otha brothas.  I'll bring my Polaroid for some pics of WTF? facial expressions.

Be right back....

Tue, 04/30/2013 - 17:45 | 3515259 sitenine
sitenine's picture

What's wrong with bubbles? I hear Buffet loves bubbles:

http://www.zerohedge.com/news/buffett-says-european-banks-have-asked-him...

The Bernank doesn't even seem to think there is a bubble:

http://www.zerohedge.com/news/2013-02-22/bernanke-there-no-bubble

To all the banksters:

http://www.liveleak.com/view?i=447_1367351170

Tue, 04/30/2013 - 16:16 | 3515262 pine_marten
pine_marten's picture

The echo I get off this is some equaly drastic "feelings" with the global elite as well.  This work until "it doesn't"  idea is frightening considering how wild the ride could get.

Tue, 04/30/2013 - 16:18 | 3515263 W T F II
W T F II's picture

I really believe that the Chairman drops this mess on it's head. Then Draghi exacerbates matters...and the rest is history

Tue, 04/30/2013 - 16:16 | 3515265 Dr. Engali
Dr. Engali's picture

Yawn..another up day. Maybe  part of Obama's "remaking of America" is to bore market participants to death.......Yep another up day....my statement is up another 5% this month. Let's see what's on teevee 

Tue, 04/30/2013 - 16:20 | 3515282 sitenine
sitenine's picture

Obama: 'Maybe I Should Just Pack Up and Go Home. Golly.'

http://www.youtube.com/watch?feature=player_embedded&v=bQwILZFGsd4

Tue, 04/30/2013 - 16:16 | 3515271 IridiumRebel
IridiumRebel's picture

Data shmata......I'm all in....I'm buying houses in detroit, Facebook on the rise. I got Zinga and anything PE/1000+

I'm straight balling! Pass the cocaine.

Tue, 04/30/2013 - 16:48 | 3515350 Quinvarius
Quinvarius's picture

I have a theory that they choose useless tech website types of stocks because they make nothing and do nothing.  The are perfect paper asset bubbles in a Keynesian world.  They just employ some people and consume no resources.  They want to encourage this kind of business over a factory or a mine that would use resources and affect their commodity price targets or compete with something they have already chosen to be a winner or a monopoly.  Kind of liek ho wthey attack the crap out of ethanol because they think it competes with oil, even though it is only a fuel additive that replaced another additive which was totally unsafe, for the most part.

Just a theory.

Tue, 04/30/2013 - 17:14 | 3515487 ParkAveFlasher
ParkAveFlasher's picture

+1 I think their manipulations could totally evolve along those lines.  It's really hard to eff with the valuation of a company that can show you exactly how big its balls are, real, machine-tooled balls making profitable goods with real physical demand and keeping real inventory.  They can literally walk the investor into the factory or warehouse, sit in on meetings with customers, etc. 

The other ones, with soft service-oriented business, that can be reckoned or reasoned or rationalized by analysts and agencies.

Tue, 04/30/2013 - 16:21 | 3515276 kito
kito's picture

isnt america grand!!!! tptb invest the sheeps money into the leveraged stock market, while they themselves run to buy houses with cash!!!!!..........

Tue, 04/30/2013 - 16:23 | 3515290 fonzannoon
fonzannoon's picture

Exactly.

Tue, 04/30/2013 - 16:31 | 3515310 Dr. Engali
Dr. Engali's picture

yuze spelt merika rong.

Tue, 04/30/2013 - 19:51 | 3515967 lotsoffun
lotsoffun's picture

but kito - let's point out the most IMPORTANT point.  they rushed to buy houses to rent them because they know the general public

won't have any money to BUY!!  yippee.  screwed us again.  all the money to them and no asset accrual to citizens.

 

Tue, 04/30/2013 - 16:30 | 3515285 MichiganMilitiaMan
MichiganMilitiaMan's picture

I can just see the news articles in 10-20 years:  

Remember when all the major equity indicies peaked at record, all time highs, during Barak Obama's Presidency.  What a great time that was!

Obviously socialism/marxism works!  The major equity indicies peaked during the presidency of our most marxist president.

Sarcasm off BTW!

Tue, 04/30/2013 - 16:40 | 3515352 Bunga Bunga
Bunga Bunga's picture

In Soviet Russia interest rates fixed central bank too.

 

Tue, 04/30/2013 - 16:32 | 3515327 css1971
css1971's picture

You can't invest sanely in this environment.

I don't trust commodities; including gold & silver

I don't trust bonds; corporate or sovereign

I don't trust stocks; not growthy nor dividend

I certainly don't trust property; commercial or residential

And finally, I don't trust cash in a bank account or as paper.

 

Tue, 04/30/2013 - 16:44 | 3515374 Ham-bone
Ham-bone's picture

trust...confidence, credence, ahhh FAITH...yes, faith is the right word.  This is now a pseudo-religious experience and you must have faith in a higher power for it holds nearly all your net worth, your assets, your employment, your ability to provide for your family, your society to function is all in it's hands...forget trust and go with faith (or maybe just hope for the best)

Tue, 04/30/2013 - 16:47 | 3515382 SunRise
SunRise's picture

Faith is only as secure as it's object.

Tue, 04/30/2013 - 16:46 | 3515381 RSBriggs
RSBriggs's picture

I do not trust you, Sam I Am.

Tue, 04/30/2013 - 17:05 | 3515445 tenpanhandle
tenpanhandle's picture

Well that just leaves you with your dick in your hand.

Tue, 04/30/2013 - 17:10 | 3515466 Meat Hammer
Meat Hammer's picture

I don't trust my dick either

Tue, 04/30/2013 - 16:39 | 3515357 CDNX fan
CDNX fan's picture

May will be a crash month...too many bulls.

Tue, 04/30/2013 - 16:59 | 3515431 MichiganMilitiaMan
MichiganMilitiaMan's picture

Even with nearly daily POMO scheduled in May by the NYFR?

Tue, 04/30/2013 - 17:15 | 3515358 news printer
news printer's picture

hello world

Tue, 04/30/2013 - 16:43 | 3515361 realtick
realtick's picture

step back, take a deep breath and consider the big picture - the multi-trillion dollar recovery is nothing more than a dead rat bounce

this thing cannot be manipulated higher forever

the manipulation went into overdrive before the election to get obama reelected and has continued up until now to make the charade look real, and very soon it will come to an end

Leading The States To Slaughter

http://chartistfriendfrompittsburgh.blogspot.com/2013/04/leading-states-...

Tue, 04/30/2013 - 16:44 | 3515364 q99x2
q99x2's picture

It is a conspiracy and they are obviously preparing to kill us.

Tue, 04/30/2013 - 16:45 | 3515377 OpTwoMistic
OpTwoMistic's picture

Well the pump has driven up stawkes, but where is the income.

You going to sell before the crash.  When is that?

Tue, 04/30/2013 - 17:55 | 3515620 Law97
Law97's picture

No benefit to the little people, yet they bear all the cost.  Hell, even corp revenues are down, but the money lining the pockets of the masters is UP, and that's all that matters.

Tue, 04/30/2013 - 16:52 | 3515390 ebworthen
ebworthen's picture

Must be time for me to work more hours and contribute more money to a diversified portfolio of stocks I hold for a long time so my spirit can be crushed all over again.

Tue, 04/30/2013 - 16:58 | 3515409 John Law Lives
John Law Lives's picture

I just got my renewal notice for my health insurance policy from BlueCross BlueShield.  The annual premium on my same plan is increasing by more than 11% starting on July 1 (and I haven't filed a policy claim in many years).  So much for that 2% inflation rate the Great Chairsatan talks about as he continues his policy of wealth transfer to Wall Street banksters.

Great Chairsatan = FVCK OFF

Tue, 04/30/2013 - 16:57 | 3515413 Sutton
Sutton's picture

This gangster regime(O,Ben Yellen etc) will Never tighten, in any way.

Wed, 05/01/2013 - 15:03 | 3515433 falak pema
falak pema's picture

A virulent attack at the heart of the "free market" and capitalist meme where anything and everything is a marketable product including democracy and the electoral process :

http://www.marketwatch.com/story/capitalism-is-killing-our-morals-our-fu...

A terrible diatribe against neo liberal Reaganomics/big bang and deregulated capitalism.

Libertarians on ZH should read this and digest its message. Hard stuff, so take it in little gulps and chew hard on it. 

Tue, 04/30/2013 - 17:05 | 3515459 polo007
polo007's picture

http://useconomy.about.com/od/monetarypolicy/f/fed_monetizing_debt.htm

Question: How Is the Fed Monetizing Debt?

Answer: The Federal Reserve is monetizing debt anytime it buys U.S. Treasuries. The Federal government borrows from individuals, corporations and even foreign governments when it auctions Treasury bills, bonds and notes. When the Federal Reserve buys these Treasuries, it doesn't actually have to print money to buy them. It issues a credit, and puts the Treasuries on its balance sheet. Everyone treats the credit just like money, even though no actual cash is printed.

How does this monetize the debt? It turns the debt into money. It takes those Treasuries out of the open auction, which decreases the supply of Treasuries. This means the remaining Treasuries are bid up higher. Treasuries that are more valuable don't have to pay as much in yield to get buyers. A lower yield drives down interest rates on mortgages. The net effect is that it is as if the Treasuries bought by the Fed didn't exist.

But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the Federal government more money to spend and increased the money supply. This is called monetizing the debt.

The Fed only monetizes debt in an emergency, like a recession. It helps the Treasury increase government spending to stimulate the economy without raising interest rates, which would depress the economy. When the economy improves, then the Fed can reverse the transaction, get the Treasuries off of its balance sheet, and remove the credit from the Federal government's operating budget.

Tue, 04/30/2013 - 17:08 | 3515470 Lewshine
Lewshine's picture

Yeah, but which one of you meatballs has had the nads to layer into this manufactured pikes peak? I got 105 June P contracts layered in since the q's hit 68.80 and Spy hit 158.8 If she backs up 5 pts between now and June 10 - Party boat that sinks at midnite.

Tue, 04/30/2013 - 17:26 | 3515482 silver surfer
silver surfer's picture

Yngve Slyngstad head of the Norwegian Government Pension Fund Global is warning politicians in Norway about great challanges ahead. 

In a recent hearing in the Norwegian parlament Slyngstad said that they cannot make money on obligations with negative real rates and all the money printing. He also primed them for a worst case 30% decline in the funds total holdings.

From the introductory statement:

"The safest investment alternative will provide a return after inflation below zero. Many countries are heavily indebted and monetary policy implies low, and in some cases negative, real interest rates ahead. Moreover, today’s favourable stock market conditions may be based on expectations that do not materialise."

Things are not looking great when big money officials talk like that!  

Tue, 04/30/2013 - 18:33 | 3515688 Tenshin Headache
Tenshin Headache's picture

Those favorable stock market conditions are based on expectations that the Fed will print and print and print, which have already materialized.

Tue, 04/30/2013 - 17:14 | 3515498 Downtoolong
Downtoolong's picture

of course, there is, once gain, very weak volume on this uptick

That's what happens when the Fed is the only one buying.

Tue, 04/30/2013 - 17:32 | 3515541 devo
devo's picture

Sunday, Monday, Happy Days.
Tuesday, Wednesday, Happy Days.
Thursday, Friday, Happy Days.
The weekend comes,
My cycle hums,
Ready to race to you.

These days are all,
Happy and Free.

Tue, 04/30/2013 - 17:59 | 3515625 Zola
Zola's picture

Nonono TYLER!!! You have it all wrong!!! QE eternity is only to infinity based on the infinity of integers !!  You should know that Bernanke still has many options left!! He could announce the QE infinity to all irrational numbers!! BIGGER!! And finally there is also that of the Real numbers !! Lets not forget any further powering up left!! So you see , there is a whole INFINITY OF INFINITIES LEFT!!!

Tue, 04/30/2013 - 18:26 | 3515674 Tenshin Headache
Tenshin Headache's picture

I note that you did not include imaginary numbers, no doubt because those have already been fully deployed.

Tue, 04/30/2013 - 18:33 | 3515695 akak
akak's picture

The Bureau of Lying Statistics is especially fond of imaginary numbers, also "Hooked on Hedonics".

Tue, 04/30/2013 - 18:18 | 3515659 Der Wille Zur Macht
Der Wille Zur Macht's picture

Makes my tummy hurt. =(

Tue, 04/30/2013 - 18:42 | 3515723 orangegeek
orangegeek's picture

"...good is good, bad is better, and totally shitty is absolutely awesome. ..."

 

Fuck Tyler, you said a swear!!!  Good for you!!!

Tue, 04/30/2013 - 19:44 | 3515940 lotsoffun
lotsoffun's picture

from parliament/funkdelics - ' a world where good is bad, bad is good, and bad is as good as you can possibly get'.  (or something like that, it's a long time).

Tue, 04/30/2013 - 19:20 | 3515867 yogibear
yogibear's picture

Bernanke and the Fed are doing it for the pension Funds.

Tue, 04/30/2013 - 19:38 | 3515925 Yen Cross
Yen Cross's picture

   China PMI coming up here @ 01:00 gmt. A bad print should be enough to blow out ES 1600 barrier tomorrow morning. (a good number is anyones guess)

Tue, 04/30/2013 - 20:35 | 3516081 BaggerDon
BaggerDon's picture

$$ Message for Ben Bernanke and Larry Kudlow, Why not have a IPO for Social Security ??

Tue, 04/30/2013 - 20:39 | 3516093 polo007
polo007's picture

http://www.stanford.edu/~mckinnon/papers/Beggar%20thy%20neighbor%20interest%20rate%20policies.pdf

Why was it a mistake for the Fed to flood the system with so much liquidity that short term interest rates were driven toward zero? In line with textbook economic theory, the Fed focused mainly on the shortfall in aggregate demand rather than on the underlying supply constraint on credit availability. However, starting from a position where interest rates are already very low, say 2 percent as in early 2008, reducing them to zero has only a second-order effect on expanding aggregate demand. But going from 2 percent to zero has a first-order effect of tightening the credit constraint on the supply side. Although in 2010 the economy may show a “dead cat bounce” from supercharging aggregate demand through fiscal policy, leaving the fed funds rate at zero makes it impossible for the resumption of normal bank credit to support investment growth in future years.

Because credit is an input into working capital, a credit constraint acts very much like a supply constraint on physical capital. In either case, dumping more liquidity into the system does not increase output. But why should congestion in the wholesale interbank market constrain banks who see good retail lending opportunities? Why don't such banks just raise their interest rates to final (retail) borrowers enough to maintain their profit margins and willingness to lend? This is an important and not generally understood point. Retail bank lending involves making risky forward commitments, much like transacting in forward markets in foreign exchange. For example, a bank might open a line of credit to a corporate customer that could be drawn upon over the next year. But below some well-defined maximum, the customer chooses when to draw it down, and by how much.

This is an important and not generally understood point. Retail bank lending involves making risky forward commitments, much like transacting in forward markets in foreign exchange. For example, a bank might open a line of credit to a corporate customer that could be drawn upon over the next year. But below some well-defined maximum, the customer chooses when to draw it down, and by how much.

The willingness of banks to make such forward commitments to lend to nonbank firms and households depends very much on the wholesale interbank market. If the wholesale interbank market works smoothly without counter party risk at positive interest rates, then even currently illiquid banks can make forward loan commitments to their retail customers. If such a bank happens to be still illiquid when a corporate customer suddenly draws down its credit line, the bank can cover its retail commitment by bidding for funds in the wholesale market at close to the "risk-free" interest rate. Because the riskiness of making forward retail loan commitments is thereby reduced, the bank’s willingness to do more retail lending increases. (Otherwise, without participating in the interbank market, each commercial bank would have to hold much higher liquid reserves against its potential retail lending opportunities.)

Now suppose some upsetting event, such as a crash in home prices makes all mortgage related assets on bank balance sheets suspect. Then counter party risk becomes acute, and banks become less willing to lend to each other unsecured. Because LIBOR interbank loans in London are unsecured, one very rough measure of counterparty risk from the U.S. housing crash is the difference between the federal funds rate, which is fully secured by repo agreements based mainly on Treasury bonds as the collateral, and the unsecured LIBOR. Figure 6 shows that before mid 2007 (when the crisis began), the one-month LIBOR rate closely tracked the fed funds rate. Then after mid 2007, LIBOR began to edge above the federal funds rate before spiking sharply in late summer and fall of 2008 to more than 200 basis points above the fed funds rate. With the benefit of hindsight, we know that this was the most acute phase of last year’s financial panic when interbank trading dried up. Thus, in 2008, the main constraint on interbank trading was counterparty risk.

Governments everywhere responded to the panic by pumping more equity into banks, greatly expanding the ambit of their deposit insurance, and opening up various central bank discount windows for distress borrowers. Among large banks trading with each other, this gigantic effort seems to have reduced counterparty party risk and the fear of bank failure. Figure 6 shows the one-month LIBOR rate coming down close to the Fed funds rate, now near zero, by mid 2009 and staying there through 2010.

In 2009 -10, however, with counterparty risk in abeyance but not completely vanquished, the zero interest rate policy became an important supply-side constraint on the resumption of normal interbank trading. Positive rates of interest at all terms to maturity are necessary for normal borrowing and lending in the wholesale interbank market. Only then will banks that are liquid, i.e., have excess reserves but no good future lending opportunities at retail, lend to those that are illiquid—i.e., those with good retail lending opportunities in domestic or foreign trade but no excess reserves. But if the risk-free federal funds rate is close to zero, banks with excess reserves will not bother parting with them for a derisory yield.

Tue, 04/30/2013 - 22:20 | 3516378 dragoneyes74
dragoneyes74's picture

The next three or four trading sessions will be very revealing of the market's intentions.  The Commercials in equities are near extreme levels, we've had several spike downs in the last month with low volume pushes back up, allowing the Commercials to average up their short position.  Macro data has been bad, and mometum indicators have been diverging from price for awhile now.  At some point the Commercials will end this trend and start a 5-10% correction.  We do live in Bernanke's universe, so none of this probably matters, but I'll be watching for a spike to new highs that gets sold into, or green to red action after a gap up, or the relentless selling algos kicking on.  I won't be surprised in the least if we bull through all of this and hold, but if there's ever a time to turn the tide, it is this week, or shortly thereafter.      

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