"QE-Off Rumor?" Bonds Down, Stocks Down, Gold Down

Tyler Durden's picture


S&P 500 futures are currently experiencing the largest intraday drop in May - seemingly set off by this which was largely a joke uttered about an hour ago...


... Which promptly escalated into a full-blown rumor that Hilsenrath is about to issue an article heralding the end or tapering of QE.


Treasury prices buckled lower, gold and silver are falling and US stocks are back at Tuesday's close...



biggest drop in S&P 500 futures in May...


Charts: Bloomberg

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Thu, 05/09/2013 - 15:08 | 3545584 W T F II
W T F II's picture

The "real" Andy Yorks or the "fake" Andy Yorks..??

Thu, 05/09/2013 - 15:12 | 3545613 spankthebernank
spankthebernank's picture

Twatter=one more way to control the sheep.

Thu, 05/09/2013 - 15:15 | 3545638 Divided States ...
Divided States of America's picture

I would love to see a currency like the EUR do a crash flash like what happened to gold a month ago.

Thu, 05/09/2013 - 15:17 | 3545645 Pinto Currency
Pinto Currency's picture



Gold rally coming.

Fed minions doing their tap routine as fast as possible.

Thu, 05/09/2013 - 15:25 | 3545702 Stuck on Zero
Stuck on Zero's picture

So true.  For at least 500 occasions the Fed has warned of deflation and it has never panned out.  You'd think that people would catch on.


Thu, 05/09/2013 - 15:26 | 3545708 Pinto Currency
Pinto Currency's picture


Blue pill / red pill thing.

Thu, 05/09/2013 - 15:34 | 3545748 Stackers
Stackers's picture

Gotta love the 200bps "noise" in the EURUSD these days too.

Thu, 05/09/2013 - 15:39 | 3545766 malikai
malikai's picture


For everyone wondering wtf is going on I'll lay it down here nice and easy.

Step 1: Print.

Step 2: Market +X

Step 3: Spillover market +Y

Step 4: Talk hawkish. <-- We are here

Step 5: Spillover market -(Y - Z)

Step 6: Market -(Y - Z - 1)

Step 7: Print more to fix Step 6.


Mission Accomplished

Thu, 05/09/2013 - 15:44 | 3545792 knukles
knukles's picture

Such Market Efficiency!
Such Depth, Breadth and Liquidity!
Such Promises of Unbounded Riches!



Musta been a slow day when dude's on the commode tweeting about BS and the market follows...


BTW, Who the Fuck is Andrew Yorks?

Thu, 05/09/2013 - 15:49 | 3545834 Ness.
Ness.'s picture

BTW, Who the Fuck is Andrew Yorks?

Isn't he the fourth Monkee?  Here we come, walking down the street...

Thu, 05/09/2013 - 16:09 | 3545948 Keynesian Mess
Keynesian Mess's picture

He's the guy that TPTB coerced into blowing up the trial baloon.  He will be soundly ridiculed while they prepare the official announcement and sell off all of their risk assets to the sheep.

Thu, 05/09/2013 - 19:43 | 3546564 optionsman
optionsman's picture

he is probably a dude who got burned multiple times shorting rates . i bet he is still short duration. dudes like that mix their political views with fiduciary and when that does not work out they talk about the diversifying nature of the duration short for the overall portfolio. i bet he is also long IG and HY (or equivalent).......DBs like this cling to the myth of "credible" Fed and that QE efforts undermine the Fed's credibility. obviously they are completely off the mark. QE is here to stay for a long time. no we are not in the 8th inning like Jeff says. IMHO we are in 3rd inning.......

Thu, 05/09/2013 - 15:27 | 3545717 nope-1004
nope-1004's picture

Gold shortage here!  Fed doing everything to facilitate a broken system, as Asia demands physical.  These take downs are done to keep the system alive, nothing more.  Maybe they'll find and capture Bigfoot tomorrow, then do a huge raid?  Worked with Obama Sin Laden......


Thu, 05/09/2013 - 15:36 | 3545764 NoDebt
NoDebt's picture

Buying gold is helping QE. 

You're purchasing coins or bars and paying with what?  Cash.  Fiat.  More gold purchases = more fiat being pumped into the system.

YOU (all of you salty bastards, and I mean that in the nicest possible way) are helping the Bernank with QE.  So knock it off already.

[I just thought of this a minute ago out of thin air and it kinda blew my mind, so I thought I'd share it.]

Thu, 05/09/2013 - 15:50 | 3545843 SemperFord
SemperFord's picture

Your father must he so proud...how is Million Dollah Bonehead?

Thu, 05/09/2013 - 16:01 | 3545910 Pure Evil
Pure Evil's picture

The money may be pumped into the system, but not exactly the way the Fed wants.

They want you buying worthless iCrap, houses, cars, stocks, etc., not gold/silver.

Thu, 05/09/2013 - 16:14 | 3545961 Lore
Lore's picture

Yeap. The psychopaths really and truly LOATHE gold, because it draws your attention away from their toxic, hypothecated shit.

You could at least do them the courtesy of buying gold FUTURES on MARGIN. Be a good boy and eat your toilet paper.

Thu, 05/09/2013 - 16:55 | 3546065 Jack Napier
Jack Napier's picture

If buying gold helps QE that means that higher gold demand -> prices help QE. That QE money is being used to prop up gold eh?

Thu, 05/09/2013 - 17:50 | 3546250 NoDebt
NoDebt's picture

All Riiiiiiiight!  One up arrow for my fantastic revelation that buying gold = QE.

(I don't count the down arrows.  Don't count anything bad.  A little trick I picked up from the BLS.)


Thu, 05/09/2013 - 16:08 | 3545942 hairball48
hairball48's picture

"[I just thought of this a minute ago out of thin air and it kinda blew my mind, so I thought I'd share it.]"

@NoDebt...Blew your mind? What mind?

Thu, 05/09/2013 - 16:17 | 3545955 Cobra
Cobra's picture

I inquired about this recently on a forum, and basically what happens when PMs are bought is it trickles down to the miners so moar can be brought to market. Just like when you buy iStuff, it rolls into more iStuff (and offshore accounts, of course!)

EDIT: That's the extra simple explanation. There are dealers, and realistically borderline slave labor in there in both instances. - just sayin.

Thu, 05/09/2013 - 16:38 | 3546020 WeekendTrader
WeekendTrader's picture

You may want to take a banking 101 class.

you have money in your account. The bank lends it out and it gets multiplied by 10 through fractional reserve lending. Now you take your money away from the bank and buy gold. The gold dealer now puts it in his/her bank. That bank will now lend it out 10X.

Who, or which bank has the demand deposit is completely irrelevant - you exchanging $ for gold does not alter the amount of $ in the system - it just changes the ABA and account number associated with a certain amount of $$.



Thu, 05/09/2013 - 16:55 | 3546068 Cobra
Cobra's picture

The gold dealer has to spend it to re-supply, though... So it moves down a line of dealers, eventually to a mine... And yes, I'm sure everyone involved profits a little, but not on the same scale as banking.

Thu, 05/09/2013 - 16:58 | 3546083 WeekendTrader
WeekendTrader's picture

The dealer will (for example) spend the money on gold purchases and salaries. The salaries are deposited in a bank of the employee, and the $ related to replenishing inventory are deposited in the bank of the miner/refiner. At the end of the day the $ are still in the banking system, no matter who holds them.



Thu, 05/09/2013 - 17:05 | 3546107 Cobra
Cobra's picture

I understand, not trying to argue... The money still circulates. It just circulates in a different direction, away from those who would rather not hold it.

Thu, 05/09/2013 - 17:37 | 3546207 WeekendTrader
WeekendTrader's picture

My point to the OP - not you - was that when you spend money (on gold, or anything for that matter) it has very, very little to do with the fed and your money (directly at least) is not used for QE.

In QE the Fed creates dollars out of thin air and uses them to purchase assets. Your dollars have nothing to do with it, although one can argue that creating too many dollars will dilute the value of the dollars you hold. If at some point QE gets reversed, whether it be through portfolio runoff or outright sales, the dollars will be "uncreated" and in theory reverse any dilutive effect they had. (emphasis on "in theory" mind you).



Thu, 05/09/2013 - 18:39 | 3546409 Cobra
Cobra's picture

+1 Sorry about that.

EDIT: I didn't intentionally upvote myself... Misfire.

Thu, 05/09/2013 - 21:07 | 3546738 SnobGobbler
SnobGobbler's picture

maybe buy some silver; gold is for big-boys....remeber that...no need to be envious...



Thu, 05/09/2013 - 21:10 | 3546741 SnobGobbler
SnobGobbler's picture

or better yet, gimmie your fiat and ill buy it on-sale.

Thu, 05/09/2013 - 15:58 | 3545892 resurger
resurger's picture

yup.. i dont buy this bullshit

Thu, 05/09/2013 - 15:18 | 3545650 nugjuice
nugjuice's picture

lol. Buy every QE taper 'dip'

Fed can't exit QE. They're funding the deficit. You don't have to worry about QE going anywhere until they fix the deficit. And with the idiots in Washington I don't see that happening anytime soon, unless flying unicorns and magical 8% gdp growth are right around the corner

Thu, 05/09/2013 - 15:44 | 3545799 max2205
max2205's picture


Thu, 05/09/2013 - 15:27 | 3545718 css1971
css1971's picture

Well JPY just did.

Thu, 05/09/2013 - 15:17 | 3545641 Pinto Currency
Pinto Currency's picture



Thu, 05/09/2013 - 15:30 | 3545722 thepigman
thepigman's picture

Hilsenrath knows we're going to sail through the 6.5% unemployment

rate on part-time jobs. GS knows same.

Thu, 05/09/2013 - 15:14 | 3545629 vmromk
vmromk's picture

The day SCUMBAG Bernanke stops QE is the same day I will eat shit directly out of his asshole.

Thu, 05/09/2013 - 15:43 | 3545653 Cult_of_Reason
Cult_of_Reason's picture

Not to end QE, but to announce a symbolic QE tapering, so they can say (pretend), "we are carefully weighing the risks and benefits of QE at each meeting".


In addition, the Fed hinted this in the statement, "prepared to increase or reduce the pace of its purchases".

Contrarily to the media spin, the latter (prepared to reduce) is more significant than the former (at least in English language).


Thu, 05/09/2013 - 15:19 | 3545657 Punct
Punct's picture

I would like this to happen just to see you do it. 

Thu, 05/09/2013 - 15:33 | 3545741 tenpanhandle
tenpanhandle's picture

Personally, I have no need to watch.


To me, this all shows how spooked and close to the edge the so called markets are.  I'd hate to think what would happen if bennie sat on a whoopie cushion.  No doubt a big deflation scare.


Things are so close to coming completely unglued.

Thu, 05/09/2013 - 15:24 | 3545691 Ignatius
Ignatius's picture

Personal pride would forbid me, but we get the point.

Thu, 05/09/2013 - 15:29 | 3545697 xtop23
xtop23's picture

Right? Getting seriously tired of watching the inflate/deflate, pump/dump, bullshit.

We KNOW the central banks can never stop printing without a complete implosion. There is NO gradual unwind coming. It's extend, extend, extend, and when the timing is right / appropriate measures in place, total detonation.

How did we get so far from fundamentals?...... global slowdown, rampant unemployment, spiraling debt, war, and ..... nothing.

Then a cockroach farts in Quebec, and the market goes to new highs for the 19th time...... in a row.

2 words are pretty much all I require to sum up my feelings toward the market;

incredulity and nausea.

Thu, 05/09/2013 - 17:39 | 3546216 Ms. Erable
Ms. Erable's picture

Seriously, pull the QE-IV and start the party by crashing this fucker. The patient's been dead for years; moving its arms and feet for it ain't foolin' anyone (at least 'round these parts). Besides, I'm about as prepared as I can be - to have another boating accident.

Thu, 05/09/2013 - 15:30 | 3545732 akak
akak's picture


The day SCUMBAG Bernanke stops QE is the same day I will eat shit directly out of his asshole.

I've got news for you: you are doing so already.

As are we all.  For years now.

Thu, 05/09/2013 - 16:06 | 3545932 TheSilverJournal
TheSilverJournal's picture

I ate shit for quite awhile but changed my diet a couple years ago and no longer shovel in what comes out of Bernanke's ass. I'm not too proud to say that I once thought Bernanke's shit tasted like rainbow sherbert and central planners achieved their position through smarts and had my best interests in mind.

Unfortunately many don't want to be seen as being taken and can't admit their folly, therefore actively supporting the perpetuation of systemic harm as they support their own actions. The power of denial...

Thu, 05/09/2013 - 16:37 | 3546022 outamyeffinway
outamyeffinway's picture

Not even the skittles?

Thu, 05/09/2013 - 15:33 | 3545743 fonzannoon
fonzannoon's picture

Unfortunately I think we will eat shit out of his asshole everyday until he stops. Then things get bad.

Thu, 05/09/2013 - 15:50 | 3545839 kito
kito's picture

wait fonz, so you are saying they will destroy with a deflationary collapse.....and then hyperinflate????

Thu, 05/09/2013 - 15:59 | 3545876 akak
akak's picture

Tell me, what exactly does a deflationary collapse look like?  There being of course not one historical example of such an occurence from which to draw any lessons or parallels (in contrast to the hundreds if not thousands of inflationary and hyperinflationary economic and monetary collapses in the historical record).

Thu, 05/09/2013 - 16:46 | 3546042 kito
kito's picture

may be true akak, but when i say deflationary, i mean the collapse of all qe fed bubbles which leaves us back to 2008....but this time there is no chance the banks get bailed out by the govt....it will just be plain ol'confiscation of depositers.........that is not hyperinflationary.....................

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