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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.
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The MS media is now playing a tune that rhymes with super bull revivalism bigtime on world stage and the inevitability of current Oligarchy victory world wide; template to a new dawn of US hegemony.
like here :
http://www.lemonde.fr/ameriques/article/2013/05/31/le-declin-des-declini...
When a respectable european journal now says game over to the contrarian bears, it puts ALL its intellectual and information nest fed eggs in the basket of QE and its miraculous cures; to this TEMPORARY BLIMP we call "crisis of capitalism" à la 2008.
like here :
http://www.businessinsider.com/the-top-1-now-controls-39-of-the-worlds-w...
The story here is game over for "we the people" meme.
Who can fight a juggernaut on which reside the powerful of ALL nations of the world; which controls 40% of CUMULATIVE wealth today, (135 T), and 80% of world wealth accrual TO COME?
These guys are unbeatable, so goes the rationale and we the people are toast!
Like those guys getting hosed in Istanbul.
All aboard this gravy train, as Erdogan is going neo-ottoman and has huge plans for Turkey under the Islamic gun; totally COMPATIBLE with the neo-feudal world oligarchy plan!
Whoopeee...ZH is now soooo dépassé!
Contrarians, gold bugs and Pax Americana declinists are like the dinosaurs and Dodos.
Krugmanism will lead us to Mars! Unless...thieves fall out!
Ah here, wtf are you Americans playin at?
Paul fckn Krugman is on Irish state radio this morning, praising his old college buddie Draghi and flippin tellin us that "austerity" is the wrong policy,
I nearly choked on me black puddin, so I did,
TAPER.......... ASSHOLES TAPER TURDS SO THE ASSHOLE WONT SLAM SHUT...
OT but a story that's been well covered here at the Hedge, if few other places: Saudi vs. Qatar for control of Syrian rebs
http://news.yahoo.com/insight-saudi-edges-qatar-control-syrian-rebel-support-165943953.html
Amazing. The Fed finally put into clear statements the obvious repercussions of their manipulation, something that has been said here for years.
"[T]he Fed may now be perceived as integral to the housing finance system."
= Equals =
Government Bail-out
Scotty, we need more power!
Scotty: Kiptin she kinna take nae moor, we could lose tha warp core!
Cap'n Bernanke: Warp core? Oh, we switched that out at the last stop.
Scott: SAE WHA?
Cap'n BernanQE: Ya, this guy who looks remarkably like hercules said he had these nova-bomb thingies that his tech or some other black market dude turned into engines. It was only 200 quatloos, I can't pass up a deal like that.
Interesting read. I also especially liked the part where the big banks admit that holding leveraged government-guaranteed mortgage bonds is their "bread and butter" and they don't like the Fed coming in, buying up the supply and depressing yields.
Also interesting to compare the generally soft description of consumer credit demand here with other reports of a sharply dropping savings rate driving consumption despite fiscal drag. Perhaps the consumer spending boost is actually coming from the big wave of refinancings? Which has peaked ...