What Did Bernanke Do To World Markets?

Tyler Durden's picture

Before the US equity (cash) markets open this morning, we thought it might be useful to survey the reaction of the world's markets to Bernanke's words last night. It seems, for now, that FX markets have given back the biggest portion of the shift with the USD having retraced around half of its losses post-Bernanke. Gold, Stocks, and Bonds are all flatlined from the knee-jerk higher and overnight volumes have been very thin as European bonds and peripheral stock markets did not enjoy the same level of exuberance (and Japanese stocks are well off overnight highs).




and overseas...


Charts: Bloomberg

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CH1's picture

Left is right.

Up is down.

Black is white.

And so on.

The Juggernaut's picture

Currency wars durning a global recession.  Got Gold?©

BLOTTO's picture

Maybe its left, right, left, right, a, b, a, b, - start.


And wala - unlimited free money...err men.

Cult_of_Reason's picture

All Ponzi schemes eventually do fail, and this one will also fail.

SheepDog-One's picture

The amazing part is in just 5 years, they've so changed the world so that the worse things are, the better it is now.

I never would have believed such a diabolical plan was possible. That shows I made a big mistake and underestimated the greed and suicidal nature of Homo Sapiens. If I can have a comfortable time, I don't give a shit if everyone dies tomorrow. Such a species is not long for survival.

Divided States of America's picture

With bernanks speech last nite, basically the markets want bad data more than good data. Guess theres no more need to fudge further economic data anymore because they already are truly atrocious.

This recent rally that started a few days ago reeks of someone knowing what the bernank was going to say. The last few days have had no selling whatsoever. So today will be the sell on the news day for those exclusive ppl in the know....offloading to the sheeps as we speak.

SheepDog-One's picture

I hope so....we'll soon see.

These days I just assume it all keeps going up day after day, equity losses are simply not tollerated. 

ATM's picture

We know things are not going to get better but we do know that nominal asset prices are going to continue to rise because of the money printing.

We also know that the currencies that asset prices are denominated in will eventually implode (or explode depending on your POV).

What we will be left with are real things as the debt that backs almost everything else is extinguished. 

Grab what you can, hang on tight and hope they don't come and steal it from you, and by they I mean governments and eventually the starving hordes who I will help as much as I can.

gjp's picture

Yet gold is stuck down 30% or so this year while stocks are up 15%.  How does that make sense in a rising-nominal-assets-because-of-money-printing framework?  And oil down today?  There are more shenanigans than simply printing going on (although the printing may be enabling those shenanigans too ...)

Herd Redirection Committee's picture

How does that make sense?  New to ZH?

Its called manipulation in the gold markets.  Either someone (like a CB) is selling their gold at the moment, or its purely a paper gold phenomenon.  Which again, is to be expected, as it had been speculated for A LONG TIME that paper gold /= physical.

PT's picture

Divided States:  Suggested starting point:  Who's got the NSA contract on Bernanke's phone and net?  Think you could put in a cheaper quote ? ...

lakecity55's picture

In other words,


NOTW777's picture

he has ensured more poverty and killing

he has heaped up wrath and judgment

look at those celebrating fraud 

masterdjm's picture

the markets got another hit of (potential/more) QE and they loved it! Gold included!

francis_sawyer's picture

USD "peak" <July 2013> correlates to "peak" <July 2010>... A 6 week 'front-run' [for tribe members], of Jackson Hole [QE2]...

thismarketisrigged's picture

jim cramer just said '' bernanke is doing the right thing''





krispkritter's picture

Hint: turn off the dweeble box. Stop staring into the dull glow of stupidity...



Divided States of America's picture

Of course cramer is applauding bernank, they both tribal members. I am sure you will also see larry fink do a cameo today along with some more cheesepopes touting bernank as the Savior.

playnstocks's picture

Attitude goes with paycheck..... hes getting richer,,, hes loving it!

Cursive's picture


Yes, and when the worm turns, he'll be found on the floor with an empty bottle of sleeping tablets.

stinkhammer's picture


RideTheWalrus's picture

What if Bernake just had boners for graphs and charts and never really considered the implications?
I think i just blew my mind.


Atlantis Consigliore's picture

Cancel Cramer the FED Pimp chimp next. 

yogibear's picture

Bernanke and the Fed members know the US dollar should drop a lot further.

Now the plan is to drop the US dollar further and boost stocks again.

ATM's picture

Of course that's the plan. It is a race to the bottom for all fiat currencies. Govts have to pay on their debts, they need to try to create cheaper exports to try to create employment or eventually face angry, poor, hungry citizens. Those end up being very dangerous to bureaucrats when the free beer runs out.

If you are a bureaucrat cheapening the currency buys you time and gives you cover from blame. You can point to bankers, hoarders, profiteers, greed, etc and not one man in a million will be able to see the real culprits. 

Herd Redirection Committee's picture

The other choice being budget cuts, and we all know that shit will get you killed.  Cronies don't want to see their piece of the action taken away!  They paid good money for that piece of action!

thismarketisrigged's picture

hey tyler, can you run for the head of the fed, and take over bernankes job in jan?


that would be amazing. you or rick santelli. anyone else and we r fucked.

semperfi's picture

Tyler, Fed chief, day 1 task list:

1. shut down Fed

2. throw party

3. back to running ZH  (day 2)

juangrande's picture

Shiiit! That party would last longer than a day!

Dollar Bill Hiccup's picture

Bonds are not as jubilant as equities. Considering TLT's 20 day volatility is higher than the SPY's, it is downright muted.

Hmmm. If Chairman B. can't put the smoke back into the bong with this latest theatre, look out below in price.

semperfi's picture

SHANGEX soon to surpass COMEX & LME - deal with that Bennie boy, if you can (hint:  he can't)

Imminent Crucible's picture

The market doesn't know the rules any more. Is good still bad, or is it good again? Is bad news bad, or is it wonderful? We can't tell; Bernanke speaks with forked tongue.

And that's what matters; Central banking is a confidence game, and Bernanke just blathered market confidence into tatters. He doesn't know what to do: If he says Taper Is On!, bonds and stocks crater. If he says Just Kidding! the dollar plummets.  So he tries to say both at the same time. It only makes things worse:

Ben: We always told you we can't monetize to support the markets forever....


Ben: ...but we can monetize for quite a while yet...

Market: YAY! BUY, BUY, BUY!

Ben: ...but we're not going to...

Market: SELL! SELL! SELL!!!!

Ben: ....unless we really have to....

Market: BUY! BUY! B---

Ben: ...but we don't have to because the recovery is coming along nicely....

Market: AIEEE!! SELL, SELL--

Ben: ...although unemployment remains above our 6.5% target...

Market: BUY! BUY--

Ben: ...at the same time, our unemployment target is very flexible....


Ben: ...and we reiterate that Tapering does not mean the end of Accommodative Monetary Policy....

Market: WHAT THE HELL!??

Ben: ...it just means that we're being accommodative at a slightly less irresponsible level...

Market: Let's go home. Hello? Is anyone still here?


semperfi's picture

Just a different set of rules now, collectively known as "The New Normal"

Debeachesand Jerseyshores's picture

WTF!!!!! Even Bernanke is doing a Corzine.....

nickels's picture

I just wish Peter Sellers was still around to play Bernanke when they make the movie.

ATM's picture

I was thinking more Chris Farley.

Enki Ea's picture

CRIME/TERROR/WEAPONS Bank in South America...


The outfit in question is Banco Paulista and its controlled subsidiary broker/dealer SOCOPA.


This little bank, owned by a very traditional "Paulistano" family (the Vidigal family) has turned itself into the go to bank for money laundering, black market currency, corrupt politicians accounts, etc.


They are even taking deposits (turned into cash usually within 48 hours) from known terrorist groups, known drug dealers, arms dealers, pirated/contraband goods dealers, etc.


± USD 400 Million per month comes from the triple frontier of Brazil/Paraguay/Argentina and into Banco Paulista in Sao Paulo. From there, they cash this money on a weekly basis and deliver it to the owners "Casas de Cambio" to keep on moving. The bank is charging between 3% and 5% to cash out moneys and 20% to launder moneys.


The Bank also charges a 3% flat feet to accept hard cash deposits of any source.


Now the real deal is the black market currency exchange (known in Brazil as Doleiros).


The bank uses its license to purchase official US Dollars from the Brazilian Central Bank (to the tune of US$ 10 million per day) therefore at official exchange rates and than sells the  same dollars in the black market (via fraudulent forex contracts). The focal point of distribution for the hard cash (both dollars and reais) is SOCOPA's main office at Rua Funchal, 129  - 5º floor in Sao Paulo, Brazil.


The person in charge of handing the cash over there is Mrs. Maria Jose


There are 7 main "culprits" in this criminal activity:


Alvaro Augusto Vidigal

Alvaro Augusto de Freitas Vidigal

Marcelo Pereira

Tarcísio Rodrigues

Nilma Kodama (previously involved in financial/criminal scandals)

Antanos Nour Eddine Nasrallah (known drug/arms dealer along with brothers link to hezbollah)

Hwu Su Chi Law

Flavio Guimaraes (ex. Socimer Bank/Andres Group)


There are several companies involved:


Industrias Mangotex Ltda.

Esclimont Participacoes S/C 




If one keeps an eye out on any regular day, they will see politicians, businessmen, regular people, criminals, etc., all going into SOCOPA to get their packets of cash.


The authorities in Sao Paulo don't care or at least pretend the issue does not exist and the local media is nowadays almost like in Venezuela (no reports involving politicians).


If this gets the media it deserves, it has the power to bring down some top figures in the Financial World of Brazil and also some heavyweights from the political arena as well. Let's not forget known/wanted criminals. 


This little bank is a true "Atomic Bomb."









Banco Paulista e sua controlada e a corretora SOCOPA.


Este pequeno banco, de propriedade de uma família muito tradicional "Paulistana Quatrocentona" (a família Vidigal) transformou-se em um banco para lavagem de dinheiro, abastecimento de doleiros, e "mutretas" do PSDB em São Paulo.


Recebem dinheiro vivo e também TEDs (transformados em dinheiro geralmente dentro de 48 horas) de grupos de traficantes conhecidos, traficantes de armas, pirataria / contrabando de bens e até de grupos terroristas, etc. O PCC usa o banco para lavagem de grana e para saques milionários para compra de drogas.


± 400 milhões de dólares por mês, vem da tríplice fronteira do Brasil / Paraguai / Argentina direto para o Banco Paulista, em São Paulo. De lá, eles sacam o dinheiro semanalmente e entregam à vários doleiros para manter o mercado negro funcionando. O banco está cobrando entre 3% e 5% para sacar dinheiro e 20% para lavagem de dinheiro.


O Banco também cobra um fee de 3%  para aceitar depósitos em dinheiro vivo de qualquer fonte. Sem perguntas, é só pagar!


Agora o grande negócio do banco é o dólar paralelo e os doleiros.


O banco utiliza sua licença para comprar dólares oficiais do Banco Central do Brasil (no valor de $ 10 milhões por dia), e vende os mesmos dólares no mercado negro (via contratos cambiais fraudulentos). O ponto focal de distribuição para o dinheiro vivo (dólares e reais) é o principal escritório da SOCOPA na Rua Funchal, 129 - 5 º andar, em São Paulo, Brasil.


A pessoa encarregada de entregar o dinheiro lá é a Sra. Maria José


Quando os volumes são grandes, eles entregam onde você indicar!


Há sete principais "culpados" nesta atividade criminosa:


Alvaro Augusto Vidigal

Alvaro Augusto de Freitas Vidigal

Marcelo Pereira

Tarcísio Rodrigues

Nilma Kodama (anteriormente envolvidos em escândalos financeiros / criminoso)

Antanos Nour Eddine Nasrallah (traficante conhecido / contrabandista de armas, juntamente com os irmãos)

Hwu Su Chi Law (Esposa de Law Kin Chon - contrabandista)


Existem outros envolvidos:


Lúcio Funaro (doleiro)

Flávio Guimarães (ex Banco Socimer)

Joseph Nour Eddine Nasrallah (foragido da justíça, traficante, membro de facção criminosa)


Se alguém fica de olho em qualquer dia da semana, vai ver políticos, empresários, pessoas comuns, criminosos, etc, tudo indo para SOCOPA para obter os seus pacotes de dinheiro ou uma vez por semana vários caminhões levando dinheiro para os doleiros.


As autoridades de São Paulo não se importam ou pelo menos fingem que o problema não existe e os meios de comunicação tradicionais, não relatam este crime diário!


Este pequeno banco é uma verdadeira "bomba atômica" e ameaça nossa vida diariamente ajudando os assassinos, traficantes, corruptos que assolam nossa nação.

Cheeseus Sonofdog's picture

Why listen to a man that only has six months until he reitires? Half of the Fed board will still be there and they think its time to pull back. All Ben said was he will keep printing. We already knew that. He didn't tell us how much he will be printing. $1 less is a taper.

Herd Redirection Committee's picture

$1 of QE now does not equal $1 of QE when Ben started.

In that sense, yeah, if they don't keep upping the dose, keeping the dose the same is equivalent to reducing the dose.

yogibear's picture

Bernanke will replace Jim Cramer next year with a show called:  "It's Mad, Mad Money Printing".

Father Lucifer's picture

Biggest circle jerk in history.

Duc888's picture

You guys got it all wrong. Drudge headlines now at 10:15 AM "Ben Saves the day" then the link goes here... http://www.cnbc.com/id/100879524 ....and that's that.

Yen Cross's picture

    I knew the $ would have to retrace some of it's loses. A weak $ on strong equities meme won't work for Japan carry(farce)trade.

 Equites are blowing out and the risk currencies are getting hammered. LMFAO!  aud/jpy aud/usd getting taken to the woodshed.

eddiebe's picture

Yep, the PTB know how to paint charts. Every now and then they let the market act like it wants or normally would, just to let all those pundits think thy actually know something or that market fundamentals mean something. 

Does anyone here doubt that Bens statement yesterday could not have been countermanded by the puppetmasters and gold, for example, have been knocked down $50. just as easily? 

macambaman's picture

I hope /ES fades back to 1600 the next few days.

macambaman's picture

Banks and brokers are not reacting higher, what's up with that?