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The 34 Words That May Have Caused Today's Crash In Stocks
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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To short squeeze and double the printing...
Were those minutes supposed to be secret?
skank skank skank........................i told you fonz.....they wont ruin the precious dollar...........ESPECIALLY if there is no gold in them vaults............if their only true source of power is the dollar.......they wont print to oblivion..............better to just turn to the politicians and say "well folks...weve done what we could, its on you...................
Humble pie tastes like shit.
They won't destroy the source of their own power willingly.
Precisely.
Avoid the de-dollarization trend with currency swaps between countries
A market smash would be a good way to get rid of the bloat the fed has created.
So the whole way up it's "No, no, no we aren't monetizing debt and depreciating the currency and inflating uncontrollable bubbles." Then just as you crest the peak before the big drop "YYYYYYYYYYEEEEEEEEEEEAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!!
SPLAT!!!
As long as the world is happy with the central planners creating infinite fiat out of thin air, everything is sustainable.
MAN DOWN !!!
BOOM! Head shot....
Speaking of that, where are my gold trolls today? They usually like to chirp on Fridays when gold gets monkeyhammered (like normal).
Like Eigen-manga-whoosiss? His mom's prolly making him mow the lawn.
it appears an embargoed record of the Fed's Advisory Panel minutes was at least a major concern
Why was it embargoed? Did some friends of the Fed get those minutes earlier? Enquiring minds want to know.
I sure am glad that the FED started reading ZH
That's funny, they can read..
Who's Fed?
Is he Up's bro?
Peter Schiff said it best. What the FED has to do is not pull the table-cloth out from under the dishes it has to pull the TABLE out from under both the cloth and the dishes and make them suspend in midair.
Another good Peter metaphor.
Krugman is a dick.
get it?
Ha ha ha ha ha ah ah
peter metaphor?
that's a miracle ..lol
Our house is under contract, so please don't implode till we get moved to the country a mere 5 weeks from now.
Pretty please
This is a serious question. I'm put a lowball offer in on a house for my family, $40k under asking and $120k lower than what it sold or at the height in 06'/07'.
I have little debt and am in cash and metals right now.
Wait out the eventual Bernanke induced abortion or grab this place for what will be a very manageable 30 yr mortgage payment?
Can't give you advise. Ask two questions though: 1) will mortgage rates go down from here? 2) How much equity do you stand to loose come the next correction? Good luck.
I'm not sure why these two questions mater. When I first started reading ZH I was berated for telling people to pay back their loans and that it was their responsibility to pay that loan off and honor their word. I've looked back on how foolish it was to ask people to pay their loan back when so often they were not in a position to pay it off when they got the loan in the first place. Back then it was 14 months of mortgage free living, I'm not sure where it is now. What's changed the game that makes people think they should pay their loan back?
Get the loan, get the keys to the house, and screw the bankers. I can see how having two kids might change this view but isn't this housing bubble redux? I'm having a hard time understanding what has changed. Ride the bubble and play the same way as last time, everyone else will be.
Well, to clarify: Since the answer to question 1 is, "Fuck no, rates are going up!" (good luck selling), and the answer to question 2 is, "Jesus, you could easily loose your ass!" (instantly underwater), I see no contradiction here..
Buy a piece of land with hunting and fishing, drop down a few yurts, get some goats and chickens, diesel generator, solar panels, take you kids out of school, live off the land.
Damn straight. Don't forget to Learn to trap and feed yourself while you sleep.
Sell the wife, sell the kids... Go to Vegas & go on a bender at strip clubs... Then ~ piss off a Russian named Boris & it'll all be over in an instant... [You'll die happy ~ save for the last few seconds]...
It depends I think on how much money you intend to borrow and how long you intend to live in the home. Interest rates are historically very low right now. So in some ways if you have a stable job it's a great time to borrow from the lender.
I think real estate could fall again in price but that may not matter for you if you're willing to live in it for a long while. If you are intending to flip a house for profit. You better think again. The economy is too weak to support that with even poorer job growth likely and the Fed with their hands full already.
Remember the Fed was able to rescue the banks this last time when all hell broke loose. This time they are already over their heads and any rescues will simply amount to wealth confiscations from borrowers.
rent
Sweet freedom. We had a pipe burst this week. While certainly inconvenient, how easy it was to call the rental agency and let them know we needed someone to come over and fix it.
Not so easy: Fixing any problem that crops up in *our* rental.
If rates spike to the upside, you won't have to worry: shit's gonna blow up everywhere, especially the Fed's balance sheet.
Can the house be rebuild at this price? There's value in the house itself because it took materials, labor and energy to create. A house doesn't just grow on the fields.
Stability is a factor as well. Especially when you have kids. If your income situation is somewhat stable (what is stable in this economy?) and you like the house, and neighourhood which you obviously do since you put an offer in.. then I'd say buy it. Rates are low and if they go much lower it might be worth refinancing later. Can 30 yr rates go lower even?
Good house value is about 3.5 times annual earnings.
If you think there's going to be high inflation, buy now.
On the average, an American family moves every 4-5 years. Keep that in mind when you buy. Also remember the 10% costs, fees, commissions, etc of selling the Box + the joy involved of having dozens of people stomp thru your house every day.
Oh yeah, don't forget your Realtor advising you (again and again) not to clutter it up or [potetial] buyers may get the 'wrong idea.'
Go for the very manageable 30 yr mortgage payment.
That's what I'm doing.
Do NOT buy now, unless you can pay in mostly cash and/or you don't need a job to afford the payments.
C'mon, masters of finance, what happens to real estate when rates rise ? That's right, property values fall.
If you buy now, you will likely be way underwater in a few years or sooner, when rates start climbing.
Crazy to buy now; store cash and wait for a few years...you will get it at a much lower price. And you can get your property taxes much lower, as opposed to buying high and overpaying those taxes.
how's the land? south-facing exposure? slopes? quality of well water? house have good thermal mass/insulation?
food water energy food water energy food water energy
"...unsustainable bubble in equity and fixed-income markets..."
A bubble that they themselves blew up with all their gravy slathered on Wall Street and Banks!
You DUMBSHITS!!!
The great vindication for 'fringe blogs' cometh.
And the great refutation of Keynesian-ism and Paul Krugman PhD bearded potato.
Unless they do it all over again, again:
"How could this have happened?"
"If only we had done more, we shall redouble our efforts!"
"No one saw this coming!"
"We have to save the banks!"
"The financial markets are too important to be left to free market forces."
Etc.
But wait!
I want to invest in the formula factories from the white gold story earlier today before I left to work at the farm.
I want that paper to making moar paper while my goats are making moar goats.
Market. must. keep. going. Up!
"Market. must. keep. going. Up!" Umm, no, not really:
http://en.wikipedia.org/wiki/List_of_stock_market_crashes
[edit] I know you meant /sarc, but I just thought that should be pointed out anyway.
Yes. Thank u.
It will only go so far from here before change is inevitable. Prosecution may not be possible but change will take place.
2 bad this post is 30 ES points late.
To Captain Ben obvious from the low fringe of ZH:
KEEP PRINTING.
The entire report is simply a smoke screen to justify continued TBTF policies and to make it look like the banks actually have ANY accountability or transparency going forward while it is well known that they still don't have either.
There should be a note at the bottom:
"Written for the Banking Industry by The Banking Industry."
...Just to clarify that there is absolutely no conflict of interest, collusion or conspiracy taking place in the banking industry.
translation...
we are concerned, much to our dismay and surprise that the patient may not make it once the hopium is withdrawn.
now, who could have seen that coming?
translation: MOAR HOPIUM injections
proof positive no one knows where this is going; no one is looking ahead and when they do they have no idea what to do next. to print or not to print that is the question.
there's no question
PRINT
DUMP, YOU F--KERS!!!
+1
You guys need to understand the way the FAC works.
A CEO of a regional bank is assigned one of the questions for each meeting. Some of these CEOs have been critical of ZIRP and QE for years.
If the answer to a question is in the hands of a hawk, you will get a much personally overweighted response.
"breakout inflation", "unsustainable bubble", "withdraw from market", "unwind"???
Pure blasphemy! Have some of those guys been reading ZH?
some of those guys have been writing for zero hedge. They know what's up.
"possibility of a breakout of inflation" Uh, hey there Uncle Ben....have you been to Piggly Wiggly lately? Those prices are really going up aren't they? Oh yeah, I forgot...you don't have to worry about that do you? You have a personal shopper or maid or someone who goes shopping for you. I hope you are enjoying that ivory tower of yours. You really should come down more often and see how the little people live.
Here's a great video about what happens when you collapse an underwater bubble (Physics):
http://www.wimp.com/collapsebubble/
people get paid to do that shit?...
There sure is a lot of "hinting" going on with Bennie's Boys (and gals).
I wonder if the market will sell off moar on Monday.
Or, in today's world, maybe it was the close pass of the two assteroids which has wreaked mayhem.
Wack jobs? Ya, and we is getting whacked.
So, POMO this Tuesday? Are we still on for the weekly round of Tuesday Morning Longs?
"Concerned", thats nice ... After 5 years of rigging all of the markets the Fed is now concerned, please make a note of the "transparency".
$5B POMO today went limp, I'm expecting the smart money to sell into the dumb money Tuesday ramp attempt.
May be is this?!...
{ S U R P R I S E !…
C/P:Russia will make The United States reflect
upon what they allowed Rothschild to do to their own country. So when you see protests against Vladimir now, keep in mind it is probably staged by The Rothschild’s trying to control Russia once again.
Convicted Felon George Soros
Putin Issues Arrest Warrant for Financial
Terrorist George Soros!!
Financial terrorist and Hungarian bank dick,
Convicted Felon George Soros… Russian Intelligence has fingered Soros for using cross-collateralized compounded Swedish and Danish foreign currency derivatives for the purpose of an attack on the Russian stock market..
Soros’ use of these cross-collateralized compounded derivatives utilizing Luxembourg banks violates the terms of the
Basil IIEuropean Union banking agreement.
http://politicalvelcraft.org/2012/03/23/breaking-united-states-new-hero-vladimir-putin-russia-issues-arrest-warrant-for-rothschild-henchman-leftist-savior-george-soros/
http://beforeitsnews.com/alternative/2013/05/cgi-vladimir-putin-russia-issues-international-arrest-warrant-for-rothschild-henchman-leftist-savior-george-soros-2666938.html
Hola! Wheels are coming off when gloves are coming off! Mr. Putin is taking his gloves off! Syria, Israel and now Soros. Go Vlad!
Putin is a patriot, father of the FSB, and no friend of hateful money grubbing oligarchs in his land or anyone else's.
McCain consorting with al-CIAda terrorists in Syria is an affront to all civilisation, and an offense against honest troops of the USA.
The internationalists/globalists want to ruin every nation, every person, for their Trilateral Commission agenda of a new world order, dominated by central banks, served by indoctrinating academia like Krugman, and wasting the blood of innocent ordinary people including trusting troops.
David Rockefeller and Henry Kissinger are traitors to the USA. Arrest them. Their nouveau riche ways killed many, and hates the Constitution, Declaration of Independence, and Bill of Rights.
Secretary Kerry stated earlier today that there are between 1500 and 2000 American citizens fighting in Syria. A real bad case of minimization - try doubling or tripling that number.
Rothchild's
False Flag.. Thread complete . Next !
You forgot: * BitGold bItChEz!
What is their status on red shield banks?
Did Putin throw them out?
If only some old KGBs would get ahold of that nazi bastard, it would be great.
Soros. Barf.
Excellent news.
Ah, the ever trusty news source, Beforeitnews.com!
They are leaders , they are optimistic. How many are baby boomers?
How many warnings do people need that they are pulling the plug on non cabal banks and coming for people's savings? The Cyprus template gave them a full on robot destruction boner. They want to do it. And after they steal everything, they will start printing again because it still won't be enough.
"Current low bond yields are disruptive to management of fixed-income portfolios, retirement funds, consumer savings, and retirement planning. They may encourage unsophisticated investors to take on undue risk to achieve better returns. MBS purchases account for over 70% of gross issuance, causing price distortion and volatility in the MBS market. Fixed-income investors worry that attractive mortgage-backed securities are in very tight supply. Higher premium coupons carry too much exposure to prepayments, potentially led by new government support programs for housing. Many are concerned about the Fed’s significant presence in the market. They have underweighted MBS in favor of corporate, municipal, and emerging-market bonds. 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." "disruptive" no kidding
Come Monday morning, futures will be up, the market will finish the day strong and Friday will be long forgotten. We are not going to have two or three or more strong down days in a row. There are just too many lemmings chomping at the bit to buy at any price. QE is not going away anytime soon and there are just too many bulls in the bunch. I here them all day long on CNBC telling us we are in a new demension. Anyway you slice and dice it, this episode of Benny Sterling's Twilight Zone is now on steroids and picking up steam. Dow 66,000 by the end of the decade.
yes, there will be many cantors singing this weekend in praise of printing and 'recovery'. i just wonder how they rig next friday's unemployment numbers.
but - it doesn't matter. if it is flat or down a percent - then QE is working and has to continue unabated, and if it is up (fat change) = time to ramp up.
win, win. besides, unemployment is good for the consumer economy, more time for people to drive to the mall and shop for things with
money they don't have and things they don't need.
oh come on
you want to do it
LET'S SHORT THIS BITCH INTO THE STRATOSPHERE
Dow moves 200 in one day....zzzzz. I want to see some real action.
Why would gold be down?
It's only paper gold that is down. My physical gold is still up and is not for sale for any amount of fiat unless there is something real I need to exchange my gold for in which case fiat is simply a temporary state until I buy what I really need.
What an embarrassing question! I don't think you're allowed to ask that on Zero hedge. And whatever you do, don't mention that gold is down 17% year-to-date, while the Dow is up 15% YTD. Heads would explode.
--bks
Sell everything you have and put it in the market.
Sell everything you have and put it in the market, marked "for sale".
Gold is down because there is just as much threat of severe deflation as of hyperinflation. Fasten your seatbelts!
Gold is down because [they want to make cheesepope loving Keynesian sychophants to think] there is just as much threat of severe deflation as of hyperinflation.
~~~
There ~ fixed it...
supply and demand
It really is quite funny when you read the words UNSUSTAINABLE BUBBLE. I mean, are there any sustainable bubbles?
Depends how long it has to last to be considedered sustainable. 1 political term? 2?
They sold their stock .... and May went away !
What's the Fed's real balance sheet numbers?
Let me know when their balance sheet is $10 trillion dollars.
Fed's going full retard. They will let it get completley out of control. You can be sure this is not your grandfather's fed. Back in the 50's and 60's there was some swnse of fiscal responsibility.
Murmuring sweet nothings to begin the reset.
Umm, WTF?
traders sip their Absinthe
Since when do traders drink absinthe?????
Absinthe is a bubble .... you have to smoke a couple of joints with it to feel anything .... wormwood my ass !
You need to drink it in a certain way to get the full effect.
Also, Drinking absinthe is a ritual, it's not just some "drink" like you get a at a bar. The ritual is half the reason to drink it to begin with.
I wanted to believe .... I even bought a one pound box of C&H sugar cubes .... my Green Fairy absinthe came from Chechoslovakia .... they proudly proclaimed they had never stopped production .... even under the Communists .... it was 150 proof .... etc. .... it was pleasant .... I still have half a bottle .... I believe the ritual is nice .... they even sent me a little history pamphlet and the famous slotted spoon .... but, let's face it .... it's active ingredients we're looking for .... I'll give it another try .... it just didn't take me to lala land .... yet ?
Wow I didn't know they make Absytnhe in Chechnya
no they dont
Absinthe: "Strong green liqueur flavoured with wormwood and anise"
sounds like some peeps been reading too much Zerohedge - if that were possible.
Easy monetary policy is prone to create economic bubbles. Who would of thought?! Even if if the policy is for the purpose of "curing" deflation with inflation.... ...... .....
The dollar has to die and be reborn. Triffin's Dilemma. The masters who give the Fed orders are ramping into a transition to the next monetary order. "Currency wars" and "competitive devaluation" are nonsense terms - what is happening is central bank coordination and collusion. We are seeing a planned implosion, a controlled demolition of the financial system. It will inflate and inflate and inflate - and then there will be a restructuring, a shuffling of wealth to be locked in.
Keep stacking.
I thought for a moment you said "Triffid's dilemma".
This I agree with completely. There is no way that some of those pulling the strings did not foresee this day.
Whatever didactic conclusion from the awakened you subscribe to, some shit is going down, and soon.
ZH you hot sh*ts. Great catch.
Thanks.
Didn't they play that Bernanke QE game? You can create a lot of money without letting the inflation monster loose.
You "learned" just what they wanted you to "learn" from that game ;)
sorry morons 0 interset rates prevents money moving into the economy a loser goes to the bank once the bank paid him interest now loser gets nothing; the velocity of monety is at 60 year lows ben prints for winners only thus no inflation morons
Exeter Corned Beef Up 12.2% from 6 weeks ago. Now fuck off CUNT!
Who probably stole the idea from ZH.
Until the lever on the VIX is unleashed and volatility can flow freely, I think we are either range bound for a few monthes in the major US indices or wildly bullish. Things could get interesting if the USD/JPY breaks 100 and continues to fall. Market stress is still Japan based in my opinion.
Mrs Watanabe weighs her options. Every mother loves her son. Central banksters beware.
Obama has to create a crisis situation and blame it on the Republicans, in order for the democrats to win the House and afterwards allow Obowel to claim a third term.
Clarence Thomas will get pushed down a big set of stairs or something........damn, a democrat is crawing up my leg (I.E a bloodsucking TICK).........I'll have to pick it off and burn it......
Flush the Obowel Movement Now, before it's too late.......
When Clarence Thomas rejects Monsanto, then I will believe he loves people, and justice, not money.
So it's OK if Obama murders him?
Can't ascribe motives to other people -- C. Thomas
Breathing Through an AquaLung.....
Four Concrete Walls No Place To Run
LightBulbs Can't replace the Sun......
When Will It End.............................?
googling that will do you no good, unless Tessalations has been published on the interwebz.......
When? I'm more into the "how" of the matter.
Based on economic forecasts, and in light of ongoing economic weakness, continuing fiscal policy restraint, and the recent downturn in inflation, it is likely that current policy accommodation will continue for one to three years. When policy accommodation ends, the Fed’s actions are likely to be linked to improved economic activity, which will serve to cushion fallout. The Fed is expected to communicate its intentions to the markets to helpavoid sudden shocks
The Fed will communicate to a room filled with zombies. Then eventually, the zombies will kill and eat the Fed-communicator, cause thats what zombies do.
Do you suppose it might be possible that Ben Bernanke sometimes locks the door to his study, puts on a dress and lipstick, and types out articles for Zerohedge as one of the Tylers?
Le Locataire Extraordinaire
A big down day on a friday? This is certainly interesting.
What a waste of space. I will tell you what it all means in three simple words. ZIRP 4 EVAH BITCHEZ
That was 4 words.
no, technically '4' is a number
Brought to you by the letter THREE
rrhhm big bird, 3 is a number
Fuck the title to this article.
"....today's crash in stocks"
Fuck you.
Everyones been conditioned to the upside so much that it seemed like a crash lol.
I wouldn't even condider a gradual decline to 13k or so a crash. If we make it one day then ok.
reporting from turkey.... something unbelievable is happening here. it's 5:30 in the morning here and tens of thousands of people are in the streets fighting the police force of the turkish dictator. unbelievable. the media is completely censored, the only means of getting news is thru social media over the internet. the secular people and the jobless youth seem to be fed up with the current dictatorship.
Seriously? 530am? Everyone in the US will be hungover at that time.
#turkey resulted in this tweet pic
https://twitter.com/Iman84NL/status/340663422054182912/photo/1
and this facebook video
https://www.facebook.com/photo.php?v=10151685267098245&set=vb.516488244&...
apparently #occupygezi is the trending hashtag for what's going on
RT has some pics and updates: http://rt.com/news/istanbul-park-protests-police-095/
Keep the news flowing to us.
We're there with you in cans spirit. https://pbs.twimg.com/media/BLmn1C4CIAAmgcv.jpg
Good God! Not another despotic Islamic dictator in our midst. They're popping up like zits...!
Obama must get NATO to bomb Erdogan from one of the Turkish air bases...after all, we're told it's about democracy.
meh. rebalancing.
... but Chairsatan claimed he could control inflation in 15 minutes...
FedFUBAR.
What we now see, those of us with eyes to see and minds that are clear, are but the physical manifestations of a great spiritual battle that is drawing close to its nadir. Mammon and his disciples on one side, the sheep in the middle and the Lord on the other. They will, as they have ever done create order (their will imposed) out of chaos (their circumstances created). It says it right on the dollar bill. What the Fed is doing is communicating to the sheep that the chaos is coming. Preparing the sheep for what will come. What the world needs now are a bunch of sheepdogs to guide those who can be saved through the chaos to come. To show love, courage, bravery and mercy to those who may not be completely lost. Heads up, butts down, slow and steady wins the race. No matter what, we all just passing through this world on our way to the next, with any luck we'll arrive with some great stories to tell of how we looked the guy who finally got us in the eye and said I forgive you just as he pulled the trigger. The fact that we were laying on a grenade with the pin pulled was to help the others get away and was not strictly speaking motivated by vengeance. :-)
yeah right. These 36 break it down:
In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
I'm all out of Ink
I'm so lost without you. . .
I knew I was wrong
Believing for so long...
We're calling a 1.36% drop in the Dow and a 1% drop in the Nasdaq - A CRASH???
REALLY????
More on the way. ZH is just ahead of the crowd.
Double the numbers, because we're told that the mrket will rise by your numbers due to famous QE-POMO.
looking at oil the last 3 days... At the pump I need to pay 2% more compared with 3 days ago. Funny, funny.
POP!
And just as Japan was trying to reach take-off speed....
http://nipponmarketblog.wordpress.com/
Fuck it.
Buy stocks and print money.
Wealth for all equally.
"QE2" nearly ends all life on Earth! Think what QE3 will do! http://www.guardian.co.uk/science/video/2013/may/31/qe2-asteroid-pass-earth-close-range-video
we come in peace! we are your friends!