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The 34 Words That May Have Caused Today's Crash In Stocks

Tyler Durden's picture


There is much consternation about what triggered today's rapid escalation of selling pressure in US stocks. As the evening wends on and traders sip their Absinthe, it appears an embargoed record of the Fed's Advisory Panel minutes was at least a major concern as it raised the very real specter that those in charge are concerned at the monster they have created:

"There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices."

"Unsustainable bubble"? And this not from some fringe blog but... bankers?

And some bonus words, which have to be read to be believed:

Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses. Given the Fed’s balance sheet increase of approximately $2.5 trillion since 2008, the Fed may now be perceived as integral to the housing finance system.

Uhm... wow.

Full minutes below:



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Fri, 05/31/2013 - 18:37 | 3615409 max2205
max2205's picture

Wack jobs!

Fri, 05/31/2013 - 18:41 | 3615420 HulkHogan
HulkHogan's picture

Fringe Lunatics!

Fri, 05/31/2013 - 18:44 | 3615432 Stoploss
Stoploss's picture

Holy shit.  Did we finally get through?

Fri, 05/31/2013 - 19:06 | 3615494 Cult_of_Reason
Cult_of_Reason's picture

Holy shit indeed!

This is equivalent to Greenspan's "irrational exuberance" comments.

"Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?"

Fri, 05/31/2013 - 19:17 | 3615533 Jumbotron
Jumbotron's picture

"Holy shit indeed!

This is equivalent to Greenspan's "irrational exuberance" comments."

Yeah...but that was in 1996.....a full 5 years before the Tech Crash and 12 years before the Housing Crash.

I think the Elites will try to extend this freak show until @2020.  Then all bets are off as Peak Oil, Peak Social Security, Peak Medicaid, Peak Medicare, Peak Obamacare, Peak Debt, and Peak Inflation are all for all to see, brazen and clear.


Fri, 05/31/2013 - 19:20 | 3615541 King_of_simpletons
King_of_simpletons's picture

Didn't you hear... there is a fart, sorry exfart, coming out everyday and trying to convince mom and pop that the stock market is not in a bubble.

It isn't a bubble until it has burst.

Fri, 05/31/2013 - 20:16 | 3615564 Pinto Currency
Pinto Currency's picture


The break-out of inflation started in 1913.


p.s. what they really fear is a break-out in gold, so they jaw-bone.  First the 'tapering' talk, now this.  Talk is cheap - cheaper than even fiat money.

Fri, 05/31/2013 - 20:30 | 3615740 Meat Hammer
Meat Hammer's picture

More evidence that they're hanging on by a thread

Fri, 05/31/2013 - 20:33 | 3615743 nope-1004
nope-1004's picture

Maybe Bernocchio reads ZH.  F U Bernocchio!!!!

There is no stock market.  It's now become the Talk Market.  Ineffectual bankers!


Fri, 05/31/2013 - 20:40 | 3615757 Chupacabra-322
Chupacabra-322's picture

Weimar anyone?

Fri, 05/31/2013 - 22:46 | 3615984 lewy14
lewy14's picture

We are all Tylerians now.

Sat, 06/01/2013 - 00:36 | 3616117 Pinto Currency
Pinto Currency's picture


After this, we will all be Tyroleans.

Sat, 06/01/2013 - 00:40 | 3616122 Crisismode
Crisismode's picture



And now, the end is near

And as we face the final curtain,

My Friends, I'll make it clear

about our fate, of which I'm certain,

To think, we've Screwed Ourselves

and now, along the by way,

Oh no, much more than this,

we did it our way.

Sat, 06/01/2013 - 00:44 | 3616127 markmotive
markmotive's picture

Conclusion: The Fed will never withdraw.

Combine that with the controversy surrounding Rogoff and Reinhart's research on austerity and the pump isn't going anywhere.

Fri, 05/31/2013 - 21:45 | 3615879 StarTedStackin'
StarTedStackin''s picture

"now becoming", or HAS BEEN since Obama/Bernanke Put?



I mean why the fuck is anyone stupid enough to believe that Obama is not in charge of Bernanke?



If you disagree, explain why no QE occurred under "Busch".....



Fug off otherwise.......

Fri, 05/31/2013 - 22:06 | 3615900 jeff montanye
jeff montanye's picture

nice talk.  

from this:, it looks as if the growth in m2 in the latter stages of bush's administration was comparable to what it was under obama.  both greatly expanded the debt, bush having the stronger economy and better tax revenues.

the bible continues to impress this nonbeliever, courtesy of dan norcini, from ecclesiastes (seems to fit both bush and obama if read a little metaphorically): “Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”.

Sat, 06/01/2013 - 00:39 | 3616119 Pinto Currency
Pinto Currency's picture


Happy the land with dispersed power; woe to the land with Kings and leaders.

Sat, 06/01/2013 - 11:07 | 3616487 sschu
sschu's picture

the bible continues to impress this nonbeliever


1 Sammuel 8 - Israel Wants a King

1 Corinthinas 1:18:25 - Wisdom of the Wise is Foolishness


Fri, 05/31/2013 - 23:43 | 3616022 WonderDawg
WonderDawg's picture

Obama in charge of Bernanke? You're naive and delusional. Obama works for the same people Bernanke works for. You think the trillionaire families that own the Fed are going to let Obama make any decisions? Would you trust your wealth to the whims of a community organizer? They installed Obama just like they installed Bernanke. Wake the fuck up. Obama is a puppet, just like Bush was, and Clinton was, etc. The people who run the show are never seen by the likes of you and I, but they pull the strings just as surely as the sun will rise tomorrow on a nation of debt slaves.

Sat, 06/01/2013 - 00:48 | 3616130 Mactheknife
Mactheknife's picture

Nailed it.

Sat, 06/01/2013 - 07:02 | 3616240 BeetleBailey
BeetleBailey's picture

Well said Dawg. +100

Ocuntus is the latest in a long line of bought and paid for douchebags who've held the office for decades.

My personal belief is we jumped the shark when Ike left office; his final speech the most telling. Eisenhower was the last good CIC.

From there:

Kennedy: The Mob, Compromised shortened term in office; assassinated by elements of the MIC and banks.

Johnson: The first modern day puppet of the MIC. He ought to be mucking stalls out in Hell for eternity for Vietnam alone.

Nixon: More senior member of the MIC puppet line up. Fucked with gold to the tune of the Trillionaires. Fucked himself. A real asshole.

Ford: A stop gap puppet. A good man...but a puppet nonetheless.

Carter: A douchebag micro-manager who fucked things up badly...he had to go so...

Reagan could get about a puppet...the anti-Obama...good talker/bullshitter...two terms and debt begins....big time...and the bubbles commence...

so we get....

Bush I....who is THE "company man"; a resume that WREAKS of CIA. MIC, and shadow Trillateral Burgermeister uber acronym horseshit power mad fuckers....but he fucked things up...and we got...

Clinton...the lucky fucker did all he could to fuck up his election, but Bush fucked up more...

The man ought to be licking Ross Perot's taint, but Perot was also a MIC diversionary plant.

Willie Monica'ed himself up....and did more damage to the US than the Japs did December 7th....and then some.

which led us to..

Bush II - a mumbling lucky sperm club fuckhead, who used 9/11 as his war platform, as he was given the role by the MIC and elite to do their bidding, with COMPANY MAN Cheney as ramrod to the entire crime scene of Iraq et. al....

8 years of that fuck, with the Saturday night global fucking of 2008, brought us...

Barry Soetero O-Cuntus.....about as "qualified" to be leader of the US as a maggot.....

No wonder we are in a state of fucking madness.....


Sat, 06/01/2013 - 10:09 | 3616400 BoNeSxxx
Sat, 06/01/2013 - 06:45 | 3616258 Go Tribe
Go Tribe's picture

Obama's nothing but a, pardon the term, house nigger. He does the laundry for the elite, cooks their meals, ensures their comforts. See how readily he scooted over to the Detroit union HQ in 2009, doing their bidding. See how he holds bankster roundtables in the White House. See how he wields the IRS against the little guy - any Wall Street banks victims of the IRS recently?

"Yes sah, massah, I be your nigga, tell me what to do."

His election wasn't a tribute to American equality, but a caustic backhand to the face of any who think they can be free.

Sat, 06/01/2013 - 10:00 | 3616389 freewolf7
freewolf7's picture

You lost me at "nigger".
Could've made your point
better without the racism.

Sat, 06/01/2013 - 10:23 | 3616422 TheMeatTrapper
TheMeatTrapper's picture

Since most of the people that use the term nigger are in fact, other niggers; are niggers racist against themselves?

Sat, 06/01/2013 - 19:09 | 3617175 NihilistZero
NihilistZero's picture

There's black people, and there's niggers.  Obama certainly qualifies as a nigger.  Black people like Thomas Sowell would confirm this off the record.

Sun, 06/02/2013 - 10:55 | 3618078 Urban Redneck
Urban Redneck's picture

Psychological conditioning is a bitch to undo, but certainly worth the pain and effort.  





Definition of racism noun

[mass noun]

  • the belief that all members of each race possess characteristics, abilities, or qualities specific to that race, especially so as to distinguish it as inferior or superior to another race or races:theories of racism
  • prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one’s own race is superior:a programme to combat racism

Sun, 06/02/2013 - 11:45 | 3618171 MeelionDollerBogus
MeelionDollerBogus's picture

While normally true in some cases there are exceptions. Harry Belafonte had no qualms about calling Rice or Powell house-niggers, and he's black (not much darker than Powell) in the Bush Era. Doin' the white man's work just to be in the plantation house. His words. He's the guy who did the "Banana Boat song" that's so famous again recently from being in Beetlejuice.

That being said, Obama's done the same as Bush so if this applies to Obama, then regardless of skin colour, Bush just as equally worked in the white-house to serve other masters and he is just as lacking in value as Obama is. The one key difference I'd imagine is that Bush Jr. had to call his own daddy (CIA chief, always connected in) Massa as well.

Sat, 06/01/2013 - 08:29 | 3616307 fuckitall
fuckitall's picture

Maybe OT, but reading this morning about Carney devaluing british pound (officially anyway, it's been devalued defacto already), it hit me how ludicrous it is to still call an unbacked paper currency "pound sterling", meaning 1 lb of sterling silver (I assume).

It's just like calling federal reserve notes "dollars".  "dollar" was a unit of weight, so much gold, so much silver.  "dollars" used to be certificates redeemable for x amount of gold or x amount of silver.    Calling unbacked federal reserve notes "dollars" is crazy.  It's not a "dollar's worth" of anything.

This knowledge has been lost in today's world.  Paper currency used to be "claim checks" redeemable for real gold or silver.  Paper currency was merely a convenience so people wouldn't have to carry physical coins around with them. 

Now here we are, paper currency still has the old physical metal type names but the physical metal aspect is gone.

OTOH maybe it's not crazy.  Maybe it's genius.

Sat, 06/01/2013 - 09:07 | 3616337 KickIce
KickIce's picture

Back to 1815, this is the year Nathan Mayer Rothschild makes his famous statement,

"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply."


He would go onto brag that in the 17 years he had been in England he had increased the £20,000 stake given to him by his father, 2500 times to £50 million.


This quote applies to any country with a Rothschild installed central bank; our politicians have ceded all their power.


Sat, 06/01/2013 - 09:59 | 3616388 Hulk
Hulk's picture

So, thats whats going on....

Sat, 06/01/2013 - 10:17 | 3616412 WonderDawg
WonderDawg's picture

Hard to believe, isn't it? If you look at a chart of US debt over the last 40 years, you'd think it made a difference if the Dems or the Repubs were in charge, wouldn't you?

Uh, wait a minute... No you wouldn't. Nevermind.

Sun, 06/02/2013 - 10:39 | 3618049 Jake88
Jake88's picture

Yeah right.  You're logic is all FUBAR dude. You shouldn't even try to reason. You're not equipped for it.

Sat, 06/01/2013 - 02:00 | 3616173 jonjon831983
jonjon831983's picture

It is only a matter of time when unregulated money gets regulated.

No way any gov't out there wouldn't put a hand on it.

Sat, 06/01/2013 - 03:11 | 3616196 balolalo
balolalo's picture

Guys,  here's a couple of thoughts that came to mind:

1.  This means that the Fed has declared itself landlord supreme.  The takeover is complete.  So why even hide it?    

2.  They are dropping hints that eventually (aka soon enough to talk about it) the sysrem will crash; major lifstyle adjustments are going to happen.  Including cutbacks everywhere (with a token drop from the top).   And since they are the lord supreme why not make the edict, there are no major challengers to question. 

Hey, they just admitted it in black and white.  

Don't be foolish and forget these FED guys all have golden parachuts, escape hatches, lifeboats, hideouts, protection and everything is plush...  they'll be MIA living in style before you even knew TSHTF.  Then they'll morph themselves into a new incarnation.  But always being our ultimate masters.  Welcome to our newly minted aristocracy.  Feudalism redux.  


Sun, 06/02/2013 - 09:53 | 3618009 MeelionDollerBogus
MeelionDollerBogus's picture

unless one of their underling minions actually turns out to belong to some anonymous branch of Occupy or worse yet, is just a really pissed off fucker who's able to use a good poker face, and offs a few of them on their way through the escape hatch.

Fri, 05/31/2013 - 22:11 | 3615912 StarTedStackin'
StarTedStackin''s picture

Why would a gold breakout be the fear, and not a silver breakout? There is 16 times more silver thAn gold, yet the G S Ratio is over 60, and gold has not the industrial demand of silver.

Sat, 06/01/2013 - 06:32 | 3616252 cnmcdee
cnmcdee's picture

The only thing they would fear *moar is equity creation without debt.. John F Kennedy issued Executive Order 11110 which allowed the Treasury to issue money without Interest.  Had that been followed we would have no crushing debt burden today..  I mean THE REPORT IS EXPLICIT.  The *only* thing the federal reserve is talking about is Debt, Debt, Debt.  Natually 6 months later JFK was shot to pieces, and decades later CIA operatives  (E Howard. Hunt) would leave death bed confessions to the crime of shooting him.

And Student Loans are even worse!!! If I want to financially CRIPPLE a population I'd give them student loans that will take the rest of their lives to pay off in an anemic economy.

The *only* thing that will ever give power back to the people is to STOP the creation of MOARRR debt!  Especially at the government level.

Fri, 05/31/2013 - 19:32 | 3615565 Cult_of_Reason
Cult_of_Reason's picture

The speech was interpreted as a warning that the market might be overvalued; followed by a 2%+ market selloff on Monday (equivalent to ~300+ Dow points plunge in 2013).


Greenspan's `irrational exuberance' comment jawbones markets down



The Associated Press

NEW YORK (AP) - Wall Street stocks opened with a thud this morning following a global plunge caused by Federal Reserve Chairman Alan Greenspan's suggestion that the markets were irrationally high.

Within 30 minutes of the market's opening, the Dow Jones industrial average plunged 145.35 points, a decline of more than 2 percent.

Fri, 05/31/2013 - 19:34 | 3615573 fonzannoon
fonzannoon's picture

Back then they had the ability to lower rates and begin stimulus. They are toast now.

Fri, 05/31/2013 - 20:04 | 3615667 Almost Solvent
Almost Solvent's picture

Or they could go for broke and pay people to borrow money @ 0% APR.

Imagine the boost in GDP with that! $10k loan to be reapid @ 0% over 82 months, plus we'll give you $2k free for taking out the loan! Here's your $12k!

Fri, 05/31/2013 - 20:07 | 3615676 Pinto Currency
Pinto Currency's picture


Or they can raise rates, wiping-out bond holders and bail-in the rest.

Fri, 05/31/2013 - 21:04 | 3615809 kito
kito's picture

No fonz, they are not toast....the country is.......

Fri, 05/31/2013 - 21:46 | 3615882 StarTedStackin'
StarTedStackin''s picture

No Kito,



Individuals who have not taken the proper preparations are fucked. Some of us will make out better thAn the Amish!

Sat, 06/01/2013 - 07:40 | 3616281 eclectic syncretist
eclectic syncretist's picture

Only relative to those who fall further and faster, but all will fall together.

Fri, 05/31/2013 - 21:22 | 3615834 Buck Johnson
Buck Johnson's picture

I know, they can't.

Fri, 05/31/2013 - 20:46 | 3615773 lord of the flies
lord of the flies's picture

the abolition of Gold Standard  made it affordable for the banking system to be used as an infinite Credit expansion tool

the financial politics of well-fare state requires no possibility for private capital owners to protect themselves.

do you understand know why those in charge dislike the gold standard?

budget deficit is just a plan of wealth-confiscation!

gold stands in their way as the guardian of private property.

if you understand that , why not understand gold price must be supressed so that free party shall go on ?

(alan greenspan)

Fri, 05/31/2013 - 22:09 | 3615907 GreatUncle
GreatUncle's picture

The main point is as every day passes they find it harder to conceal. All bets are off already just a matter of time.

Fri, 05/31/2013 - 21:22 | 3615833 Never One Roach
Never One Roach's picture

Is "IE" similar to "QE"?


IE = Irrational Exuberance;

QE = ....well, enuff said....

Sat, 06/01/2013 - 04:05 | 3616214 dunce
dunce's picture

When QE fails is it ED?

Sat, 06/01/2013 - 19:11 | 3617178 NihilistZero
NihilistZero's picture

I prefer Firefox to IE...  Better PlugIns :-)

Fri, 05/31/2013 - 21:36 | 3615863 Go Tribe
Go Tribe's picture

Tyler thanks for highlighting the two slices of moldy, Fed bread, but you left out the rotten meat between them:

Further, current policy has created systemic financial risks and potential structural problems for banks. Net interest margins are very compressed, making favorable earningstrends difficult and encouraging banks to take on more risk. The Fed’s aggressive purchases of 15-year and 30-year MBS have depressed yields for the “bread and butter”investment in most bank portfolios; banks seeking additional yield have had to turn toinvestment options with longer durations, lower liquidity, and/or higher credit risk. Finally,the regressive nature of the artificially compressed savings yields creates pent-up demand within bank deposit portfolios; these deposits may be at risk once yields begin to rise and competitive pressures increase.


So after all these years, banks are at risk again - by the Fed's own doing. Gotta love it.

Sat, 06/01/2013 - 04:12 | 3616216 dunce
dunce's picture

They did not define the "risk" deposits would be subject to.  Would it be a run on the bank or the bank getting bailed in?

Sat, 06/01/2013 - 06:34 | 3616253 Go Tribe
Go Tribe's picture

Could be either. But probably bailed in first. Interestingly enough, Marc Faber is interviewed in Barrons this morning and says after pumping up assets being belief, creating every sort of capital misallocation, governments will turn on the wealthy through taxation and redistribution or face revolutions, notably in Europe, and also says that deposits are not safe anywhere. Bailed in fits the redistribution definition perfectly.

Sat, 06/01/2013 - 07:43 | 3616282 eclectic syncretist
eclectic syncretist's picture

Pure greed is their downfall this time around.  When you get credit free and lend it at 10%+, it's got to be easy to make a comfortable income.

Sat, 06/01/2013 - 09:45 | 3616373 KickIce
KickIce's picture

What risk?  They're purchasing real assets with imaginary money not to mention the trillions in collateral on their financial statements.

Sat, 06/01/2013 - 01:13 | 3616153 HardlyZero
HardlyZero's picture

Getting their Freak On...better sooner than later.  Maybe they figure if they start to pepper their comments that will 'relax' the perception when the press starts talking that way.  Its like preconditioning the markets for Freakshow.

Sat, 06/01/2013 - 15:08 | 3616827 daveO
daveO's picture

No, it may mean that the banks have unloaded all their junk loans onto the FED; therefore, QE can end. Banks made record profits in the 1st quarter.  

Sat, 06/01/2013 - 08:48 | 3616321 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"Fringe Lunatics!"

There's nothing "fringe" about these lunatics!

Sat, 06/01/2013 - 09:52 | 3616381 PiltdownMan
PiltdownMan's picture

The report didn't cause any damage. Most of the bad started on May 2nd. Since then, it is has been bad news for Treasuries and MBS.

Fri, 05/31/2013 - 19:27 | 3615558 Fish Gone Bad
Fish Gone Bad's picture

I can't believe that I picked yesterday to stop smoking.

Fri, 05/31/2013 - 19:39 | 3615581 Black Swan 9
Black Swan 9's picture

Lol. Similar boat.

Fri, 05/31/2013 - 19:53 | 3615627 Cdad
Cdad's picture

I increased from one pack per two. 

Fri, 05/31/2013 - 23:05 | 3616017 Breezy47
Breezy47's picture

I quit cigarettes 20 years ago...but I just finished smoking a Fuente Hemingway Signature 20 minutes ago and my dick is still plump...

Sat, 06/01/2013 - 06:53 | 3616261 Go Tribe
Go Tribe's picture

Try the Gurkha Grand Reserve (Monica's cigar).

Fri, 05/31/2013 - 23:05 | 3616018 Breezy47
Breezy47's picture


Fri, 05/31/2013 - 19:52 | 3615622 Randall Cabot
Randall Cabot's picture

At least you didn't cover your shorts and go long...right?

Fri, 05/31/2013 - 19:55 | 3615633 Cdad
Cdad's picture

I added to a short from the DOW

Fri, 05/31/2013 - 20:10 | 3615681 Awakened Sheeple
Awakened Sheeple's picture

Cock. (Congrats) I btfd at the 20dma. Maria Parrotiroma hypnotized me.

Fri, 05/31/2013 - 20:26 | 3615727 howenlink
howenlink's picture

I'm hoarding nicotine gum to barter WTSHTF.

Fri, 05/31/2013 - 21:47 | 3615884 StarTedStackin'
StarTedStackin''s picture

Quantos anos tiene?

Fri, 05/31/2013 - 21:59 | 3615897 WmMcK
WmMcK's picture

Quantas anus - fixed it.

Fri, 05/31/2013 - 22:12 | 3615915 StarTedStackin'
StarTedStackin''s picture


Sat, 06/01/2013 - 00:42 | 3616124 TheReplacement
TheReplacement's picture

Why quit?  The end is nigh.  Do you really think it'll be so great living through to bloodbath to come?

Smoke 'em if you got 'em.  

Fri, 05/31/2013 - 21:25 | 3615838 Buck Johnson
Buck Johnson's picture

Those last paragraphs are exactly what I've been saying over the course of a few years.  They can't get  out of this game because they have gone to far.  We will have to take  the pain and they are coming around and realizing it will happen.  There problem is how much will it hurt.

Sat, 06/01/2013 - 08:54 | 3616328 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"We will have to take  the pain..."

Why is it that we always take the pain and the fat banksters get to walk away with their (our) stolen TRILLIONS unscathed???

Somehow we need to make it hurt more for them than for us.

We need a more permanent solution for our problem!

Sat, 06/01/2013 - 00:45 | 3616128 TheReplacement
TheReplacement's picture

Clever ploy to make it seem as if the who charade was not intended from the start.

"Oh noes.  This isn't working right!" 

Translated as:

"Mwahahaha, our plan is almost complete."

Next Act:

Even more invasive action by TPTB. 

Sat, 06/01/2013 - 09:01 | 3616334 B2u
B2u's picture

Here's what happens when the market tanks.  The recent tornadoes may be fortelling what is going to happen in the markets.

The tornado headed in the wrong direction than it normally goes. Look of terror around the 1:40 mark. 

"We're gonna die..." about the 3:48 mark. 




Sat, 06/01/2013 - 09:27 | 3616356 stant
stant's picture

hindenburg omen 2

Sat, 06/01/2013 - 11:40 | 3616526 emersonreturn
emersonreturn's picture

more orchestration to serve the bankocracy's greater good.  the bankocracy eons ago learned to move minions, minnows and lemmings.  tgfg (thank god for gold)  

Fri, 05/31/2013 - 18:38 | 3615413 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

This should be bullish...what up?

Fri, 05/31/2013 - 18:59 | 3615488 TeamDepends
TeamDepends's picture

QE to the moon

Let me swing among those stars

Let me see what spring is like

On Jupiter and Mars

In other words, hold my hand

In other words, baby, kiss me

-Ben Sinatra

Fri, 05/31/2013 - 21:56 | 3615892 LaoTzu60606
LaoTzu60606's picture

try this one



Fri, 05/31/2013 - 22:13 | 3615918 StarTedStackin'
Fri, 05/31/2013 - 19:19 | 3615539 resurger
resurger's picture

On Monday the Bloomberg and CNBC shills will say that this was a "Healthy Correction" and the S&P will resume the climb to 3,000 in 2 years time....

Keep stacking physical ...



Fri, 05/31/2013 - 19:29 | 3615563 asteroids
asteroids's picture

These fucking asshat have had almost 5 years to come out with a plan to unwind this mess. This document tells you they have no fucking clue what they are doing. And yet, the Japanese are going full retard. I guess they have an even smaller clue. Yup, this ends well for everyone on the planet.

Fri, 05/31/2013 - 20:20 | 3615713 Poor Grogman
Poor Grogman's picture

They always knew they had no plan.

They just didn't want to tell everyone straight away...

I Was always curious when economists spouted their drivel about an agrarian economy becoming an industrial economy then changing into a "consumer economy" as it "matured". What was conspicuously absent was any discussion about what happens AFTER the consumer economy.
My point is that the predictive ability of the economics profession is close to zero, they should just stick to what they do best which is re-interpreting history through a rose colored Keynesian magnifying glass.

Sat, 06/01/2013 - 07:40 | 3616194 francis_sawyer
francis_sawyer's picture

What happens after a "consumer economy" is a "pre-agrarian economy"...

Sat, 06/01/2013 - 09:13 | 3616344 Rusty Shorts
Rusty Shorts's picture

Bingo, Hunter - Gatherer...Economic collapse, the end of Man...There have been 4 jobs or activities which Man has engaged in throughout the centuries: Hunter/Gathering, Agriculture, Manufacturing, and Services. What's next? What category can you imagine in which billions of people will be working in the future?

It turns out that there is a final category. It is known as Unemployment.

Fri, 05/31/2013 - 21:14 | 3615825 SpiceMustFlow
SpiceMustFlow's picture

I want to release a documentary in 10 years called:

Full Retard: When States and Banks Lose Their Shit

Fri, 05/31/2013 - 23:31 | 3616057 suicidalpsychologist
suicidalpsychologist's picture

their only plan is to take care of their asses and families, not yours.

Fri, 05/31/2013 - 18:39 | 3615415 UP Forester
UP Forester's picture


Fri, 05/31/2013 - 18:55 | 3615471 LetThemEatRand
LetThemEatRand's picture

"No one could have seen that coming.   Black swan."

Fri, 05/31/2013 - 19:23 | 3615546 Theta_Burn
Theta_Burn's picture

Sell the rumor, buy the news?

Yay a new scandle, that Holder, and IRS plead the fifth bullshit was weak.

Now this... seriously the only way they can 1 up this is Israeli missle strikes on Russian cargo.

Fri, 05/31/2013 - 19:46 | 3615606 Fish Gone Bad
Fish Gone Bad's picture

The last time Israel got in a fight (with Jordan), all kinds of bad shit came out of the woodwork.  The Russians, Chinese, and Indians are probably not too keen on the United States taking over the world.  Look for all kinds of help to come to Syria.  Israel is certainly tough, but it can not stand against Russia even with the US's help.

Fri, 05/31/2013 - 19:57 | 3615641 noless
noless's picture

What's the naval situation regarding Japan post fukushima?

Fri, 05/31/2013 - 20:00 | 3615653 Not Too Important
Not Too Important's picture

USS Reagan is nuclear scrap:

'USS Ronald Reagan measured 0.6 mR/hr direct gamma shine from clouds 130 miles from Fukushima Daiichi'

Fri, 05/31/2013 - 22:50 | 3615992 Rusty Shorts
Rusty Shorts's picture


Check this>>>>>>

Fri, 05/31/2013 - 22:06 | 3615903 Mr. Saxby
Mr. Saxby's picture

In this case, I believe it will be known as a Brown Swan.

Fri, 05/31/2013 - 22:21 | 3615933 StarTedStackin'
StarTedStackin''s picture

Do you mean a Brown Trout?

Sat, 06/01/2013 - 01:17 | 3616155 HardlyZero
HardlyZero's picture

Trouser Trout.

Fri, 05/31/2013 - 18:42 | 3615427 walküre
walküre's picture

Is this the first time, they officially mention "bubble" in the context of the financial system? They are responsible which means they are creating all bubbles. Apparently they seem adverse to that.

When central planning comes full circle, all prices are fixed and yields are mandated in a 10-year plan. Central planners in the past have reacted to their own policies and realized that in hindsight, their policies let a free market spiral out of control. Hence the need for more controls by central planners.

Real central planning does not allow for the creation of bubbles.

I thought it was a good day until I'm reading this. They are going full tilt and head on into a centrally planned fascist system.

Fri, 05/31/2013 - 18:45 | 3615431 random shots
random shots's picture

1996. Irrational exuberance. Greenspan


Fri, 05/31/2013 - 18:58 | 3615479 walküre
walküre's picture

oh boy! the S&P more than doubled when those words were uttered!

Fri, 05/31/2013 - 22:22 | 3615934 StarTedStackin'
StarTedStackin''s picture

+1 for knowing diff bt. than and then!

Fri, 05/31/2013 - 21:10 | 3615820 MiltonFriedmans...
MiltonFriedmansNightmare's picture

@ Walk.....I do believe that is and has been the plan all along. Full frontal fascism. They are tipping their hand ever so slowly.

Fri, 05/31/2013 - 18:42 | 3615428 random shots
random shots's picture

Aren't these the same guys who said everything was fine in 2007?

Fri, 05/31/2013 - 22:04 | 3615901 tsx500
tsx500's picture

Yup ! Subprime is contained ! No worries !

Fri, 05/31/2013 - 18:44 | 3615429 fonzannoon
fonzannoon's picture

Translation: Handoff to retail complete. Banks are now short bonds and short equities (and long gold?).

Except for the one or two banks caught off guard and will now be led to the alter.

Funny. Goldman was saying the selloff in bonds is real. UBS said it was not.


Fri, 05/31/2013 - 18:45 | 3615435 ekm
ekm's picture

Handoff to retail - absolutely not


Handoff to hedge funds - probably

Fri, 05/31/2013 - 18:49 | 3615448 fonzannoon
fonzannoon's picture

ekm trust me, many a 401(k) has moved into equities recently. You are right about hedge funds as well. But there is 17 trillion in retirement plans and they are learning right now that bonds and stocks may hurt at the same time.

Fri, 05/31/2013 - 18:52 | 3615458 ekm
ekm's picture

That is not retail.

People  holding those pension funds have no other choice, do they?

Portfolio managers make the decision, or not?

Fri, 05/31/2013 - 19:06 | 3615499 BlackChicken
BlackChicken's picture

That is indeed retail, as they do have a choice; take the tax hit and get what you have left out of the casino.

We always have choices EKM, some just suck more than others.

Fri, 05/31/2013 - 19:08 | 3615504 ekm
ekm's picture

Well then.....ok


But pension funds are usually considered institutional investors.

Fri, 05/31/2013 - 20:46 | 3615772 Meat Hammer
Meat Hammer's picture

Tomato/Tomahto.  A huge number of innocent people are going to be royally FUCKED.

Sat, 06/01/2013 - 03:22 | 3616199 francis_sawyer
francis_sawyer's picture

I'm usually prone to taking the side of the "innocent people", but in this case, FUCK 'EM...


Any person with two marbles left in their head has seen what's coming for, at minimum, over a decade now... Sure ~ there were two choices...

1. BAD


But if you were too much of an idiot to not accept the BAD, then you WORSE is what you'll receive... I don't want to paint too broad a stroke here but my interpretation of most "401k" holders, anyway is the "white collar" version of fat cops eating donuts for 20 years & then retiring on a full pension...

Fucking BLOW ME... Or, to borrow a line from "Animal House"...

"Face it, You fucked up, you TRUSTED us"...

Fri, 05/31/2013 - 20:04 | 3615665 Fish Gone Bad
Fish Gone Bad's picture

We always have choices EKM, some just suck more than others.


Not making a choice is also making a choice.

Fri, 05/31/2013 - 21:56 | 3615895 WmMcK
WmMcK's picture

If you choose not to decide, you still have made a choice.
You can choose from phantom fears and kindness that can kill;
I will choose a path that's clear
I will choose freewill.

- Rush

Sat, 06/01/2013 - 09:26 | 3616355 Its Only Rock N Roll
Its Only Rock N Roll's picture

Clearly retail got roped into this bullshit:

They were taken in my the myth that past performance IS a reflection of future results. 

They will get monkey hammered in stocks AND bonds.   Whatta' balance.

Fri, 05/31/2013 - 19:06 | 3615501 ekm
ekm's picture


Chhart: Disposable personal income dipped 0.1 percent in April
Fri, 05/31/2013 - 18:54 | 3615465 BlackChicken
BlackChicken's picture

And who puts their money in hedge funds and mutual funds ?

Fri, 05/31/2013 - 18:55 | 3615470 ekm
ekm's picture

I'd say $1 million + put them in hedge funds.


Mutual funds are for middle class suckers

Fri, 05/31/2013 - 20:42 | 3615750 AssFire
AssFire's picture

I started to think about the plans to export cng out of Freeport and then thought about the pot stirring in Syria... You think maybe we get the sunni and shiites in a big conflict to sell our resources at a premium?  Oh, of course, we would demand USD for the trade/exchange. Russia would also appreciate the price hike as well, not that they would prop up the opposition for such a gain.

Fri, 05/31/2013 - 22:07 | 3615904 ekm
ekm's picture

LNG from Freeport is going to Japan.

Japan is a US Military Protectorate and needs help. They are energy starved.


USA helps in exchange for Japan saying ...yes... all the time.


Fri, 05/31/2013 - 18:52 | 3615453 BlackChicken
BlackChicken's picture

The handoff cycle has indeed completed or is nearing completion; excellent observation Fonz..!

This whole game/circus is about as accidental as the launching of the space shuttle. Buckle up...

Fri, 05/31/2013 - 18:53 | 3615463 ekm
ekm's picture

Never accidental.


Even 1987 was not accidental.

Fri, 05/31/2013 - 21:50 | 3615885 Treason Season
Treason Season's picture

"...To get the ball rolling, Paul Warburg gave the official warning to the traders to get out of the market. In his annual report to the stockholders of his International Acceptance Bank, in March, 1929, Mr. Warburg said: "If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country." During three years of "unrestrained speculation", Mr. Warburg had not seen fit to make any remarks about the condition of the Stock Exchange. A friendly organ, The New York Times, not only gave the report two columns on its editorial page... ."

Sat, 06/01/2013 - 03:27 | 3616201 francis_sawyer
francis_sawyer's picture

The only time the 'cheesepopes' ever publicize their deathbed revelations about dire consequences to humanity is when they've already positioned themselves on that side of the trade...


It's a subtle variation of the Hegelian Dialectic...

Fri, 05/31/2013 - 18:56 | 3615472 Everybodys All ...
Everybodys All American's picture

tell Pimco the selloff was not real.

Fri, 05/31/2013 - 19:38 | 3615579 knukles
knukles's picture

"Yo fucknuts.  'Snot real."

Fri, 05/31/2013 - 22:24 | 3615939 StarTedStackin'
StarTedStackin''s picture

Just wondering where you picked up the "Translation:" thingy




Was it from the Translator?  

Fri, 05/31/2013 - 18:43 | 3615430 CrashisOptimistic
CrashisOptimistic's picture

Why is there talk of traders this and traders that when HFT is 80% of volume?

Fri, 05/31/2013 - 18:45 | 3615433 francis_sawyer
francis_sawyer's picture

Fear Not!... No cheesepopes were harmed in today's action... Resume your customary grazing & pay no attention...

Fri, 05/31/2013 - 18:45 | 3615434 johngaltfla
johngaltfla's picture

Funny thing is, the housing market is primarily the same hedge funds the Fed has been bailing out since 2008. I just wonder what happens when they run out of renters and flipping DVDs to pawn off on the terminally stupid.

Fri, 05/31/2013 - 18:46 | 3615438 shovelhead
shovelhead's picture

...When the red light comes on...JUMP!

Fri, 05/31/2013 - 18:47 | 3615441 insidious
insidious's picture

i can't find those words in the minutes.

Fri, 05/31/2013 - 20:15 | 3615696 Ham-bone
Ham-bone's picture

Third to last and last paragraphs of last page.

Fri, 05/31/2013 - 22:23 | 3615935 insidious
insidious's picture


Fri, 05/31/2013 - 18:47 | 3615442 BurningFuld
BurningFuld's picture

Let me translate: Ben we so love skimming all that free money that flows by. Please please don't stop!

Fri, 05/31/2013 - 18:49 | 3615446 Cacete de Ouro
Cacete de Ouro's picture

Question: How many US Commercial banks have gold custody accounts at the FRBNY?

Hint: The answer is non-zero....

Another Hint: Morgue

Fri, 05/31/2013 - 18:50 | 3615450 fonzannoon
fonzannoon's picture

the question is, why would they say this?

Fri, 05/31/2013 - 19:01 | 3615489 Everybodys All ...
Everybodys All American's picture

IMO. You are giving these little central planning idiots far too much credit. What scares the hell out of them is simple. Japan. Abe is so out of control with Japanese monetary policy that the Fed Reserve is becoming irrelevant and will have to pause just to bring him back down to earth.

Fri, 05/31/2013 - 20:03 | 3615659 Not Too Important
Not Too Important's picture
'Prof. Takeda “3/31/2015 is the last day of Japan”'

"Prof. Takeda Kunihiko from Chubu university roughly estimated anyone can no longer live in Japan after 3/31/2015.

According to his explanation, the yearly dose will reach 5mSv/y (External dose and the slight internal dose) in 3 years and 4 months from January of 2012."

There is much to worry about with Japan.

Fri, 05/31/2013 - 20:12 | 3615691 Fish Gone Bad
Fish Gone Bad's picture

Fukushima is going to do more than just kill everyone in Japan.

Sat, 06/01/2013 - 23:21 | 3617614 MeelionDollerBogus
MeelionDollerBogus's picture

that Singapore is looking nicer every day.

Jim Rogers is happy with it.

But look at maps of the known ocean conveyor currents and look at where Singapore is relative to Japan and those currents.

Fri, 05/31/2013 - 20:07 | 3615662 Ness.
Ness.'s picture

It's like a game of Texas Hold'em to these fuckers. TARP was the ante.  QE1 was Benny betting his hole cards.  QE2 was Benny betting the flop, hoping everyone folds.  QE3 was Benny betting the turn.  Abe calls.  Here comes the river and Abe is going "all in".  



Me?  I'm poppin' some corn and crackin' a beer.

Fri, 05/31/2013 - 21:32 | 3615855 WmMcK
WmMcK's picture

Ben has Abe covered.  This is a virtual cash game - really No Limit.

Price of rice is about to go up.  No balls, no blue chips, etc.

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