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The "Price" Of Record High Markets: $10 Trillion In Seven Years

Tyler Durden's picture


By now everyone, even CNBC, admits that the only reason stocks are where they are is due to the G-7 central banks. What many may not know, however, is how we got here, and where we will be at the end of this year. The answer, as provided by JPM Asset Management CIO Michael Cembalest in the chart below, is at the dot in the top right. This will represent the addition of $10 trillion in liquidity, or alternatively the conversion of the "planetary nebula" of central bank balance sheet expansion, in the past seven years. And considering that, as we explained yesterday, there is another $10-11 trillion in scarce "quality collateral" that has to be injected into the financial markets via central banks collateral transformations, the number in yet another 7 years will be at $20 trillion if not exponentially higher, or higher than where US GDP will be.

Cembalest's take:

The planetary nebula of central bank balance sheet expansion (last chart), which we expect to hit $10 trillion later this year, is still the most important factor underpinning an uneven global recovery. It makes sense to have some patience right now. Global equities are up 8%-9% year to date, which is a pretty good return for a time when the profits expansion is slowing, global growth is closer to 3% than 5%, Chinese growth continues to cool down despite rapid increases in the use of credit, and when it is practically impossible to disentangle how much central banks are affecting asset prices. I read a research report that showed that returns on consumer staples stocks are now correlated 75% with the returns on Treasury bonds, by far the highest level since 1929. Usually, the correlation is close to zero.... Note to Fed: uh, congratulations?

Luckily, nothing bad happened in 1929.

The difference this time, as is now very obvious, is that in the event the central banks fail at preserving the perpetual growth of what may truly be the final bubble (yes, a preposterous assumption), the central banks are already all in, unlike all previous credit, risk-asset, and housing bubbles. So who becomes the "bad bank" to the central banks when confidence in the "lender of last resort" finally gives way?

Full note here


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Thu, 05/02/2013 - 14:30 | 3523352 ziggy59
ziggy59's picture

..and then, BOOM goes the dynamite!

Thu, 05/02/2013 - 14:41 | 3523410 Martial
Martial's picture

*pressure cooker

Thu, 05/02/2013 - 14:53 | 3523454 Say What Again
Say What Again's picture

What "blows me away" is that all these dumb ass central bankers actually believe they're making thing better.  I know they have PhDs and shit, but what am I missing?

Thu, 05/02/2013 - 14:57 | 3523463 ParkAveFlasher
ParkAveFlasher's picture

You don't know that it's unintentional.  Stop spreading that.

Thu, 05/02/2013 - 15:47 | 3523693 Say What Again
Say What Again's picture

I can't tell if you're trying to funny / sarcastic or not.   But, I did not imply anything was "unintentional."

Quite the contrary, I believe the actions taken by the central bankers are very intentional. What I cannot figure out is how they believe their actions will be for the better.  What is their logic?

Thu, 05/02/2013 - 16:56 | 3523984 ParkAveFlasher
ParkAveFlasher's picture

Again, you are assuming that they believe their actions will be for the better.  That's a leap of faith that I don't believe is a safe one to make.

Thu, 05/02/2013 - 18:40 | 3524328 Mojeaux18
Mojeaux18's picture

The answer is better for who? Why do ppl assume it's for us?

Thu, 05/02/2013 - 15:48 | 3523696 Pairadimes
Pairadimes's picture

The central banksters are not pursuing this path for the putative desired results. Even a moron can see this for what it is, if they only cared to understand. This medicine is being administered to the world's economies strictly for the side effects of enriching the wealthiest asset owners, a group of which they are members. Nevermind that these bastards and their hired bureaucrat and politician arm-breakers have created the economic context for this massive fraud.

When the smoke eventually clears, this will one day be understood by our descendants as the greatest act of fraud and corruption in the history of the world.

Thu, 05/02/2013 - 14:42 | 3523414 Aeternus
Thu, 05/02/2013 - 14:31 | 3523354 W T F II
W T F II's picture

You know who...?? EVERYONE...!!

Thu, 05/02/2013 - 15:15 | 3523533 Variance Doc
Variance Doc's picture

Exactly!  Still not enough real assets to cover the paper, though.  Not by a long shot.

Get out of the system!

Thu, 05/02/2013 - 14:31 | 3523359 Bearhug Bernanke
Bearhug Bernanke's picture

Damn you, Calvin Coolidge!

Thu, 05/02/2013 - 15:10 | 3523520 prains
prains's picture

damn you akak! <unsee  unsee  unsee> dude i can't find the unsee button on my keyboard

Thu, 05/02/2013 - 14:32 | 3523364 Boston
Boston's picture

So who becomes the "bad bank" to the central banks when confidence in the "lender of last resort" finally gives way?


Sill question---WE DO. When all of our deposits get Cyprused.

Thu, 05/02/2013 - 14:33 | 3523366 Cognitive Dissonance
Cognitive Dissonance's picture

"We've only just print." - G7 central banks drinking song.

Thu, 05/02/2013 - 14:40 | 3523405 Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

I got a third of the way through that video before my ears started bleeding.


 Don't do that again.  Now I've got to leave my office and go drink to get that shit out of my head.

Thu, 05/02/2013 - 14:48 | 3523440 max2205
max2205's picture

Global Devaluation and haircuts coming to accounts far and wide

Thu, 05/02/2013 - 15:07 | 3523511 NoDebt
NoDebt's picture

It's occurred to me recently that "far and wide" doesn't cover enough territory.  It implies there's still somewhere left to hide.  I think it's one of those things like "The Big Bang" where it happened everywhere simultaneously.  There was no place that you could stand and watch it happen from "outside".

Thu, 05/02/2013 - 15:10 | 3523521 new game
new game's picture

10 seconds

drive a 10d thru that one...

Thu, 05/02/2013 - 15:20 | 3523558 Cognitive Dissonance
Cognitive Dissonance's picture

Well..........most of the G7 central bankers are in their 50s and 60's. :)

<Would you like that 10d galvanized or not?>

Thu, 05/02/2013 - 14:33 | 3523373 debtor of last ...
debtor of last resort's picture

"so who becomes the bad bank when confidence in the lender of last resort finally gives way?"

I guess that will be the debtor of last resort.

Thu, 05/02/2013 - 14:33 | 3523374 insanelysane
insanelysane's picture

Let's see, Fed spends $85B/month X 12 months = $1T.  US tax receipts are about $2T.  Cut taxes in half tomorrow and you have instant recovery.

We can't have that because the power wealth would be distibuted outside of Banksters and Politicians. 

Thu, 05/02/2013 - 14:36 | 3523388 Cognitive Dissonance
Cognitive Dissonance's picture


Thu, 05/02/2013 - 15:09 | 3523513 Widowmaker
Widowmaker's picture

Politics is dead.  There are no politicians, only friends of power.

Perform fellatio during campaign season, get a presidential post on merit.    Merit with nothing to do with anything but money.

Thu, 05/02/2013 - 15:11 | 3523525 NoDebt
NoDebt's picture

No, then you'd have TWO trillion a year in deficits so the Fed would have to do TWICE as much QE.

Er..... um...... wait a minute.  Oh, I see what you did there.  OK, you win.  Let's do that.

Thu, 05/02/2013 - 14:34 | 3523378 Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

  Just waiting for a group of investors to pull from the equities markets, the algos kick in and recover the stocks with false money -- the world gets wind of it and yanks all its money from the markets and we get a collapse.


  When that happens I fully expect the Durdens to publish a news feed that reads, "I told you so" in size 96 font.

Thu, 05/02/2013 - 14:42 | 3523415 Dr. Richard Head
Dr. Richard Head's picture

That will be the day that ellicits the biggest smile from me ever. 

Thu, 05/02/2013 - 14:36 | 3523380 Solon the Destroyer
Solon the Destroyer's picture

Took, what, 15 years of printing and 2-3 asset bubble collapses before the big one blew in 1929?  We lost one major country along the way to hyperinflation before the industrialized world got its deflationary takedown...

Wonder how long it will take these students of economic history, these ivory tower academics, to actually pick up a history book and "discover" that inflationary printing actually causes unemployment?

But then again The Big Bernankster never met a string he wouldn't push.

Thu, 05/02/2013 - 15:00 | 3523471 Solon the Destroyer
Solon the Destroyer's picture

Apologies for the long quote...

From Andrew Dickson White's Inflation in France, p. 1896 (that's how long we have known about this shit):


The government now began, and continued by spasms to grind out still more paper; commerce was at first stimulated by the difference in exchange; but this cause soon ceased to operate, and commerce, having been stimulated unhealthfully, wasted away.


Manufactures at first received a great impulse; but, ere long, this overproduction and overstimulus proved as fatal to them as to commerce. From time to time there was a revival of hope caused by an apparent revival of business; but this revival of business was at last seen to be caused more and more by the desire of far-seeing and cunning men of affairs to exchange paper money for objects of permanent value.  As to the people at large, the classes living on fixed incomes and small salaries felt the pressure first, as soon as the purchasing power of their fixed incomes was reduced. Soon the great class living on wages felt it even more sadly.


Prices of the necessities of life increased: merchants were obliged to increase them, not only to cover depreciation of their merchandise, but also to cover their risk of loss from fluctuation; and, while the prices of products thus rose, wages, which had at first gone up, under the general stimulus, lagged behind. Under the universal doubt and discouragement, commerce and manufactures were checked or destroyed. As a consequence the demand for labor was diminished; laboring men were thrown out of employment, and, under the operation of the simplest law of supply and demand, the price of labor—the daily wages of the laboring class—went down until, at a time when prices of food, clothing and various articles of consumption were enormous, wages were nearly as low as at the time preceding the first issue of irredeemable currency.


The mercantile classes at first thought themselves exempt from the general misfortune. They were delighted at the apparent advance in the value of the goods upon their shelves. But they soon found that, as they increased prices to cover the inflation of currency and the risk from fluctuation and uncertainty, purchases became less in amount and payments less sure; a feeling of insecurity spread throughout

the country; enterprise was deadened and stagnation followed.


New issues of paper were then clamored for as more drams are demanded by a drunkard. New issues only increased the evil; capitalists were all the more reluctant to embark their money on such a sea of doubt. Workmen of all sorts were more and more thrown out of employment.  Issue after issue of currency came; but no relief resulted save a momentary stimulus, which aggravated the disease. The most ingenious evasions of natural laws in finance which the most subtle theorists could contrive were tried—all in vain; the most brilliant substitutes for those laws were tried; "self-regulating" schemes, "interconverting" schemes—all equally vain.  All thoughtful men had lost confidence.  All men were waiting; stagnation became worse and worse. At last came the collapse and then a return, by a fearful shock, to a state of things which presented something like certainty of remuneration to capital and labor. Then,and not till then, came the beginning of a new era of prosperity.


Just as dependent on the law of cause and effect was the moral development. Out of the inflation of prices grew a speculating class; and, in the complete uncertainty as to the future, all business became a game of chance, and all business men, gamblers. In city centers came a quick growth of stock-jobbers and speculators; and these set a debasing fashion in business which spread to the remotest parts of the country. Instead of  satisfaction with legitimate profits, came a passion for inordinate gains. Then, too, as values became more and more uncertain, there was no longer any motive for care or economy, but every motive for immediate expenditure and present enjoyment. So came upon the nation the obliteration of thrift. In this mania for yielding to present enjoyment rather than providing for future comfort were the seeds of new growths of wretchedness: luxury, senseless and extravagant, set in: this, too, spread as a fashion. To feed it, there came cheatery in the nation at large and corruption among officials and persons holding trusts. While men set such fashions in private and official business, women set fashions of extravagance in dress and living that added to the incentives to corruption. Faith in moral considerations, or even in good impulses, yielded to general distrust. National honor was thought a fiction cherished only by hypocrites. Patriotism was eaten out by cynicism.


Thus was the history of France logically developed in obedience to natural laws; such has, to a greater or less degree, always been the result of irredeemable paper, created according to the whim or interest of legislative assemblies rather than based upon standards of value permanent in their nature and agreed upon throughout the entire world. Such, we may fairly expect, will always be the result of them until the ñat of the Almighty shall evolve laws in the universe radically different from those which at present obtain.


And, finally, as to the general development of the theory and practice which all this history records: my subject has been Fiat Money in France; How it came; What it brought; and How it ended.


It came by seeking a remedy for a comparatively small evil in an evil infinitely more dangerous. To cure a disease temporary in its character, a corrosive poison was administered, which ate out the vitals of French prosperity.


It progressed according to a law in social physics which we may call the "law of accelerating issue and depreciation." It was comparatively easy to refrain from the first issue; it was exceedingly difficult to refrain from the second; to refrain from the third and those following was practicallyimpossible.


It brought, as we have seen, commerce and manufactures, the mercantile interest, the agricultural interest, to ruin. It brought on these the same destruction which would come to a Hollander opening the dykes of the sea to irrigate his garden in a dry summer. It ended in the complete financial, moral and political prostration of France—a prostration from which only a Napoleon could raise it.

(Final emphasis mine)

Thu, 05/02/2013 - 15:40 | 3523667 Pool Shark
Pool Shark's picture



No apologies needed.

Should be required reading for all school students,... and central bankers...


Thu, 05/02/2013 - 16:58 | 3523992 mkarolusa
mkarolusa's picture

Execellent repost :-)  Those who do not learn from History... God save our children!

Thu, 05/02/2013 - 15:01 | 3523479 Edward Fiatski
Edward Fiatski's picture

The current Roaring Twenties are coming to a close.

I find this historical correlation most fascinating; nothing ever changes, even today the biological lifespan of one generation remains 70 years.

Thu, 05/02/2013 - 15:05 | 3523498 Keynesian Mess
Keynesian Mess's picture

No, no, no.  It's different this time.  The Krugidiot says MOAR debt is not a problem.

Thu, 05/02/2013 - 14:35 | 3523383 101 years and c...
101 years and counting's picture

bush's fault.  jk.  its all clintons.  seriously.

Thu, 05/02/2013 - 14:35 | 3523386 Bunga Bunga
Bunga Bunga's picture

C'mon, no new conspiracy theories here, it's just a coincidence.

Thu, 05/02/2013 - 14:36 | 3523390 ParkAveFlasher
ParkAveFlasher's picture

We are now in August, 2008, and we are going to $18T on this chart in the coming months.

Thu, 05/02/2013 - 14:36 | 3523391 Waterfallsparkles
Waterfallsparkles's picture

Just WHO is going to pay for this?  Unfortunatly, the least of us all.  The Middle Class thru their Income Taxes and eventual austerity.

Thu, 05/02/2013 - 14:46 | 3523430 Cognitive Dissonance
Cognitive Dissonance's picture

"You can pay me now or you can pay me later. Doesn't matter much to me cus you're gonna eventually pay." - Overheard in the GS executive washroom.

Thu, 05/02/2013 - 14:59 | 3523466 Poetic injustice
Poetic injustice's picture

Who is this "middle class" guy you are talking about?
Have not met one in years...

Thu, 05/02/2013 - 15:00 | 3523476 Bunga Bunga
Bunga Bunga's picture

Tax is an interest payment you can't avoid.

Thu, 05/02/2013 - 15:07 | 3523505 Keynesian Mess
Keynesian Mess's picture

... and what they don't tax, they will "Cypress".

Thu, 05/02/2013 - 18:17 | 3524266 Alpha Monkey
Alpha Monkey's picture

Depends how long it takes for us to take to the streets... and I don't mean in our designated protesting zones, I mean in the fucking streets.

Thu, 05/02/2013 - 14:37 | 3523393 Dr. Engali
Dr. Engali's picture

As you can see the numbers all go up to 11 ....What we do is if you need that one little push over the cliff we go to 11.

Thu, 05/02/2013 - 14:44 | 3523413 Cognitive Dissonance
Cognitive Dissonance's picture


On the other hand they are just rock and rollers. Bankers do it much better because they can go to 100 Quadzilliondillion. :)

Thu, 05/02/2013 - 14:45 | 3523427 ParkAveFlasher
ParkAveFlasher's picture

Two words: shit sandwich.

Thu, 05/02/2013 - 14:59 | 3523469 centerline
centerline's picture

without the bread.

Thu, 05/02/2013 - 15:11 | 3523524 prains
prains's picture

hold the muppet sauce

Thu, 05/02/2013 - 14:46 | 3523429 Dr. Engali
Dr. Engali's picture

I hope we don't have to wait that long. 

Thu, 05/02/2013 - 14:55 | 3523456 Cognitive Dissonance
Cognitive Dissonance's picture

"You're gonna wait and you're gonna like it Damnit." -

Thu, 05/02/2013 - 14:43 | 3523420 FoeHammer
FoeHammer's picture

That clip always makes me laugh

Thu, 05/02/2013 - 14:50 | 3523444 Cognitive Dissonance
Cognitive Dissonance's picture

The vacant look on his face along with the pregnant pause as he digests what was just said, then points out once again that they go up to 11 is priceless.

System crash. Revert to basic programming. "These go to 11."

Thu, 05/02/2013 - 15:19 | 3523555 NoDebt
NoDebt's picture

I know too many people who would get that same look and have that same response if they were in that situation.  We check in on people like that from time to time, make sure they haven't accidentally hurt themselves with complicated devices like televisions and garden tools.

Thu, 05/02/2013 - 15:24 | 3523589 Cognitive Dissonance
Cognitive Dissonance's picture

Computers aren't the only complex systems that have a default BIOS (Basic Input Output System) loaded into ROM on their motherboard.

Thu, 05/02/2013 - 14:38 | 3523397 bagehot99
bagehot99's picture


Thu, 05/02/2013 - 14:39 | 3523400 Cognitive Dissonance
Cognitive Dissonance's picture


And eventually bye bye.

Thu, 05/02/2013 - 14:39 | 3523403 Waterfallsparkles
Waterfallsparkles's picture

All of Americas Wealth is being systematically transfeered to the Bankers and the 1%.

What happens when Americans cannot pay this enormous Debt plus Interest? Looks like "they" (the ones that have been GIVEN all of this Money)  will buy and OWN our Country.  Lock Stock and Barrel.  As they will be the ones to buy everything for pennies on the Dollar.

Thu, 05/02/2013 - 14:48 | 3523432 Hohum
Hohum's picture


Right on the first paragraph.  QE is not inherently inflationary (where's the velocity?) but it is inherently redistributive.  Only when the elite need to put their wealth in another place besides stocks will stocks fall significantly.  Either that or when there's nothing to redistribute upward.

Thu, 05/02/2013 - 14:40 | 3523404 mayhem_korner
mayhem_korner's picture



It's only the final bubble of this cycle.  In another few hundred years, provided the world hasn't ended (that's an open question), it will be repeated.

Thu, 05/02/2013 - 15:18 | 3523550 new game
new game's picture

in reality, gold by valuation compared to the dow average puts you okee doe kee(if owned pre 07).

Thu, 05/02/2013 - 14:43 | 3523419 polo007
polo007's picture

According to Canaccord Genuity:


We have been anticipating a correction over recent weeks, and we see no reason to change that view. Our reasons for expecting a pause in the upside remain tactical in nature because the fundamentals that have driven the rally since the 2009 low continue to be in place. We expect a correction because (1) the equity market is near-term overbought and somewhat extended above its 200-day moving average, and (2) the current move higher is the second longest without a 5% correction since the 2009 low. A 5% correction from the recent peak of would bring the SPX very close to our 1500 near-term correction target. As you all know, we believe the intermediate-term fundamental, historical and tactical framework command buying the equity market on any correction – especially one that is +/- 5%. Our 2013 target remains 1760, which assumes a 16 multiple on $110 EPS for the SPX.

Definition of insanity. Before we convince you there could be a 5% correction, we need to convince you the backdrop remains so favorable for domestic equities that any weakness should be used as an opportunity to add exposure. Remember that corrections are only natural, normal and healthy until they actually happen. The definition of insanity is doing the same thing over and over, but expecting a different result. The fundamental drivers of the equity market have not changed throughout this entire cycle, yet many continue to find reasons they won’t work. Those favorable drivers have been:

1. Low core inflation (Figure 1),

2. Historically accommodative monetary policy as seen in the real Fed Funds rate (Figure 2),

3. Improving money availability and steep yield curve (Figure 3),

4. Slow but positive economic activity,

5. Directionally positive EPS and upward trend in valuation levels.

Investing is not an academic study. Is it a cause for concern that the Fed is artificially keeping rates lower than where they should be? Not based on the past four years. Continued deceleration in core inflation is giving the Fed cover to keep rates abnormally low, which improves the availability of money that leads to positive growth for the economy and therefore corporate America. The very smart-sounding counter to these factors are weak domestic economic and employment growth, a meaningful slowdown in growth in China, and the recessionary environment in the Eurozone. These factors are real, and over the past few years they have caused corrections, but have not been the ultimate driver of stocks – the guys printing the money have. We try not to get wrapped up in whether that is right or wrong because it just is what it is – practically positive for domestic equities.

Thu, 05/02/2013 - 14:43 | 3523423 eclectic syncretist
Thu, 05/02/2013 - 15:37 | 3523656 NoTTD
NoTTD's picture

...hit and run transmission...

Thu, 05/02/2013 - 14:52 | 3523449 NaiLib
NaiLib's picture

Impressive that SNB is not represented there. Not neglectable.

Thu, 05/02/2013 - 14:53 | 3523453 mayhem_korner
mayhem_korner's picture



OT...the Chicken Little girl with the red shirt and Kevin Durant glasses is not up to Snorgtees standards.

That is all.

Thu, 05/02/2013 - 14:58 | 3523465 Edward Fiatski
Edward Fiatski's picture

All going to plan.

Babylon shall emerge from the Ashes of the Old World. :)

Thu, 05/02/2013 - 15:03 | 3523486 Inthemix96
Inthemix96's picture

Chin up bitchez.  Another thread jack here.

Just been down to vote in the local county council elections, mine was just mayoral like, and found out that the big three liblabcon, were the only fuckers on the ballot.  As I vote UKIP it was a small problem so I  asked the lady sitting with the ballot papers wheres UKIP?  I know I'm not fucking daft.

She said allsorts of bollocks regarding democracy and the three big ones so I gave her a few pearls of wisdom she will never forget, and told her that these fucking thieving, child molesting, lying  fucking swines wouldnt ever again be recieving a vote from 96 again.  To say she was dumbfounded could be an over statement, and then I have just promptly destroyed my ballot paper and told them to politely go fuck themselves.

These fucking imbeciles the use to count the vote are a ploy in my opinion, they couldnt tell up from down and for that reason I believe the vote could be rigged.  One of the daft fuckers thought that clegg was a fantastic choice to run my mayoral consituancy???

Yes folks, thats true, and some fucking imbeciles think its real life round here.  I am shocked that the deputy prime minister is nearly my mayor????

Thick fucking clot lugged imbeciles round here.

Thu, 05/02/2013 - 15:07 | 3523508 Edward Fiatski
Edward Fiatski's picture

I think Democracy has prevailed here: One Man with balls makes a majority.

Thu, 05/02/2013 - 15:20 | 3523561 Inthemix96
Inthemix96's picture

I do my bit friend.

Make sure you do yours.

Thu, 05/02/2013 - 15:13 | 3523530 Keynesian Mess
Keynesian Mess's picture

Could be worse.  You could live in New York Gulag.

Thu, 05/02/2013 - 18:29 | 3524306 EverythingFubar
EverythingFubar's picture

I'm with the Silly Party


No one parodied UK politics better than Monty Python


Thu, 05/02/2013 - 15:04 | 3523494 Widowmaker
Widowmaker's picture

This is only a small part that can be quantified.

Corruption, institutionalized fraud and decay of civil society are  parts that can't.

Don't fool yourself, USA, you are an empire in dramatic decline, sponsored by fraud-government and bastardized justice Inc.


Thu, 05/02/2013 - 15:04 | 3523497 buzzsaw99
buzzsaw99's picture

so then the stock market has nineteen trillion liquid in it? [/sarc.]

Thu, 05/02/2013 - 15:31 | 3523564 new game
new game's picture

waiting patiently for the ups delivery today...

hedge the bitch, bitchezz

edit:15 lb hedge has arrived...

safe and sound

Thu, 05/02/2013 - 15:22 | 3523581 NoTTD
NoTTD's picture

OK, Ok already - I'll do it.


NoTTD's Really Bad Bank now open for deposits from all CBs.

Thu, 05/02/2013 - 15:23 | 3523584 JJ McApe
JJ McApe's picture

dow 15k in reach, dax 8k in reach

holy moly shmoly.... this will not end well :o

while stock markets are rising like there is no tomorrow around the world unemployment rates are going up, buying power is lost, the middle class is bleeding to death (gasoline, rent, food, cost of living in general is up approx 30% or more) and everyone is telling me we have no inflation... stealth inflation is here.

once a week some guys say eu economy is healing, next day ecb is lowering interest rates. what the hell is this shit. this economy has nothing to do with reality. companies are hoarding money and are not hiring at all. everyone is just waiting in the twillight zone for the final crash. which is inevitebale. some day reality will kick in.

but as long as the central banks keep printing, everyone (at least the stock markets) are doing fine. i wonder what their plan b is. keeping interest rates near zero for 4 years ... lol is ridiculous.

Thu, 05/02/2013 - 15:35 | 3523643 new game
new game's picture

good chance it will not end well. but then again, if you are not directly involved and prepared it will be just onther financial storm that passes and life will carry on...

keep converting to durable assets...

Thu, 05/02/2013 - 15:34 | 3523627 polo007
polo007's picture

Federal Debt: Total Public Debt as Percent of Gross Domestic Product (GFDEGDQ188S)

2012:Q4: 103.58438 Percent of GDP

Quarterly, Seasonally Adjusted

Updated: 2013-03-29 10:01 AM CDT

Thu, 05/02/2013 - 15:37 | 3523654 new game
new game's picture

update:we are more fucked today than yesterday.

conclusion:fuck the fuckers that are fucking us over...

Thu, 05/02/2013 - 16:28 | 3523872 dognamedabu
dognamedabu's picture

So the lesson is keep accumilating silver and gold but kiss your spy puts goodbye. Unless 24 year old kid get the chicken pox and doesn't pomo for the week. I get it I get it..You can't ever be short ever.. In New York after a long dayat the NYSX  they go out for cocktails and some rouge idiot goes "oh hey I shorted xyz" They all smile yet wait until he is wasted and take him out back and beat the shit outta him. 

Thu, 05/02/2013 - 18:59 | 3524368 Aurora Ex Machina
Aurora Ex Machina's picture

There is no plan B.

Do NOT follow this link or you will be banned from the site!