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The Tapir Strikes Again
While the Fed would dearly love the market to believe that "tapering is not tightening," the message of today's reaction to merely the sugestion that a taper is closer than 'some' believed says it all about how boxed in the Fed really is. US equities have retraced half the pre-Yellen ramp gains, US Treasury yields had their 2nd worst day in 5 months, gold (and silver) collapsed (limit down for a while); the USD jerked higher (+0.3% on the week). VIX and credit markets had been hinting that markets were restless and while today's drop was only 0.5%, the sad psychological truth is that given realized volatility, it is significant. The ubiquitous late-day ramp saved us from a "deer" day - but nether FX carry nor VIX supported that lift. This is the first 3-day losing streak for the S&P in 2 months.
It just feels like a "deer" day... but not quite... Oops...
Some context for today's move - from when the Yellen excitement began last week... Spot The Odd One Out...
This morning's ECB negative rates comment broke the FX carry game - but the FOMC Minutes recoupled tyhat reality...
Credit remains under-impressed and over-saturated - not exactly supportive of moar buybacks...
and VIX remains bid...
Off the debt-ceiling lows, things are rolling over... led by homebuilders (and it seems financials didn't get the mainstream edia memo that higher rates are good)
Charts: Bloomberg
Bonus Chart: The last time China-US bonds were this far apart, Treasury yields hammered higher...
(h/t Brad Wishak of NewEdge)
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Give that tapir a beard and he could be Chairman of the Fed!
Is that Tapir pissing in the lake?
The Taper is a mythological creature that will NEVER be seen!
Just like Bigfoot, the Fed and others will claim they see it, but there wont be any evidence.
I think he's taking a ploopy.
That's actually just more QE being added to the monetary pond!
The fact that the Fed is sending mixed signals concerning The Taper is a designed mechanism in a feable attempt to seem as if they are managing our bubblified economy, without actually doing anything. No one knows when the Fed will taper, except those who stand to benefit the most (and they aren't talking). The Fed relies and thrives on the hyperbole that is created by noted fed watchers, pundits and the like. Take a look at the headlines concerning Fed tapering over the last number of months. You will see opportunities to trade these event-non-events, only if you are one of the owners of privately-held Fed shares and Bernanke answers to you. I can understand how JPM, Goldman and others have 91 out of 91 quarterly trading days without a loss when you are the Feds true reason for existing.
Is pissing in the pool the new taking away the punchbowl?
That's just Janet Yellin practicing to inject Fed liquidity into the market.
The Fed prefers the phrase: "Fertializing the economy!"
The Federal Reserve Tapirs.
They'll make even the most notorious perennial losers look like winners.
Out with green shoots...in with green pooh.
I badly want one of the standing Fed board members in January to throw in a vieled joke about the taper along the lines of GWB's wisdomm of the ages:
Fool me once, shame on me, fool me twice.... there is no fooling me twice.
Taper = "please stop buying gold".
<----- Bunz is a shameless prick
<----- I want to diversify my SHTF fund with free bitcoins: http://freebitco.in/?r=25727
Why don't you just stop shilling your scheme and post a comment of some value?
Or ... do the honourable thing and take out an ad on ZH.
Based on the large version of the photo (you really notice the characteristic splash formed from dropping an object into the water), it's clear that the tapir has just tapered and then tightened. One cannot tell from the single photo, though, whether or not more tapir tapering is imminent.
The duplicitous nightsoiling of formerly pristine pools of liquidity is part and package of the eternal blobbing-down nature of US 'federal reserve' sphincter-tightening taperism. Not very crusty, but still very mattering.
Ah, US 'central banksterism' banksters...
The great brotherhood of crime. Don't spill on me, I don't spill on you.
This is how it works in US 'central banksterism'.
Get your share of the crime, US 'central banksterism' banksters do not feel comfortable with honest people. Time to blend in. Bear with it.
When Bernanke says "taper" by that he meant he was swallowing obozo's cum in slow drip.
Fool the goy once, shame on the goy.
Fool the goy twice, fool the goy again.
Brown shoots!
You might be right about that Taper, but the tapir in the foto looks just like my friend who lives in the forest nearby and comes by my place once a month or so as he grazes. I see him more than I see any taper.
There are only two thousand and five hundred---it is estimated---of the mountain tapir left on the planet. Their habitat has been taken up by 'you-know-who', and also hunted nearly into extinction.
Like your Taper, the tapir(ta-peer) is another prime examples of human folly----and wishes no ill will towards other species------just a simple easy-going dude trying to get by on this planet.
thanks for the lead-in
"Its a Liger"
- Napoleon Dynamite
http://www.youtube.com/watch?v=pkg7DPcMZ-s
Does a bear shit in the woods?
I cant' EVEN begin to tell you how true and NASTY that tapir picture is.
At our zoo....we have a tapir exhibit where you can look at them from above then go underground and look at them at ground level and a little below the water line of their pond. And 3 of these things were just swimming around all happy and stuff.....when one stands ups and shits in the water while the others are still swimming around.
And to make matters worse....it's tail was just swiveling around like mad spraying that shit all around like some shit aerator.
I lost all respect for that animal. Besides....looks like a mad scientist's experiment gone bad....where he tried to cross a pig with a hippo and an anteater.
EPIC FAIL.....just like Ben Bernanke...or for that matter Janet Yellen
Thank you for the apt description of what we can expect a Taper to do to the economy.
"... swiveling around like mad spraying that shit around like some shit aerator."
Gotta mark your territory!
.
Manbernankeaterippopig
red w/ comment:
Who goes to a zoo---see one in the wild---completely different dude.
Burn that zoo down----or live in it yourself and see what happens with your toilet habits----
good luck to you and your family in what's coming
Tapir? Double down on QE soon.
These guys are morons... they saw what happened to treasuries the last time they talked about taper... any talk about taper is simply a negative feedback loop which sends treasury yields higher, and in turn continues to put pressure on the new housing bubble, which would then make them want to do more QE--- OHHHHHHH. I see.
"California's got the most of them."
http://www.youtube.com/watch?v=Z40YnJHVCR0
+1 if you added to the stack today!
Does yesterday count? Sold 2.3 BTC, bought 1 oz gold ($260 left over). Both transactions with local dealers.
Dow 16,000 hat can be mothballed
Dow 10,000 hat needs dusting off
Collateralized Tapir Obligations, here we come!
And the Gold graph is the odd one out.....going down with Yellen.....NOT...for someone who is going to print and print more and more...it should not be going down....to me its a raid before December deliveries...or lack their of....they don´t have the gold to deliver...so drop the price far enough so no one wants it anymore...kill the demand....I hope enough people see this and ask for the order anyway....lets kill them now...get it over with...that is why Gensler and blondie..and Bernanke quit......they want out before the crash
China and others are very happy to relieve the West of their heavy burden...at reduced hauling fees too..
Funny.
Even the mention of possible taper based on 6.5% unemployment "targets" and infinitely fungible data points pushes equities down and rates up for markets that supposedly are not being propped up, inflated, floated, and spun with FED cotton candy.
What does this tell us?
If the FED does taper multiply these rumor amounts by 10.
DOW down 660, 10 Year Treasury up to 3.8%.
Fuck it. I'm going to watch some cat videos and be done with it.
Ancona,
Yours is the best comment of the day
Congratulations on seeing cat videos----better than reading goldbugs view of things
thanks
The paperbug view of things. Now I really have seen it all!
I'll add you to the list of icanhasconverts.
http://www.youtube.com/watch?v=gLR5lVLcWrM
I feel the market is more like this....
Dude, where's my VIX rally?
where's the bitcoin chart?
Look here:
http://www.youtube.com/watch?v=nYydAsM2SXw
If nothing else, I recently discovered the best new music I've heard in years.
Thing of Gold http://www.youtube.com/watch?v=eZBlRkF0-to
i must see this live!
This whole album is a live performance, and it sounds as good as any studio recording. Here's another with them backing vocalist Lalah Hathaway.
http://www.youtube.com/watch?v=0SJIgTLe0hc
That was pretty good! Thanks!
A turd in the puchflow?
Gold and Silver on sale again today! :)
I am telling my friends and family to take their Christmas present money and just buy Silver. Boycott the retail consumer holiday madness and hedge your future, it's really a no brainer.
For weeks silver has refused to budge below $20... until today.
It's not exactly at fire-sale prices yet, but I really want a 100oz bar and I can certainly forego the toxic made-in-China shit.
The Tapir is really Bernakenstein and the pond is the U.S. middle class being shit on...
Tapir = Deeper Depression
Its always about the flow of The Spice...
That Tapir didn't make that.
It must be about the ongoing desperate, mythical need for "yield"...otherwise, why would GOLD "collapse" on BAD news???
LOL. How long did you search before you found an image of a tapir dropping a deuce? LOL
The chief losers in America’s decline won’t be the rich; the real losers will be the new poor, America’s former middle class.
“They are the victims of the negative compound interest penalty (ZIRP) that high taxes and ‘free’ benefits impose on future living standards – it is their capital that is being sucked “into the black hole of income redistribution” both to Wall Street bankers and to the lower 48 percent.
As for the coming economic train wreck, it has only been postponed because the Fed chose to deflect its printing to debt infinity with ZIRP. Either way, the ultimate end will be a worthless dollar.
As for solving the problem other than through greed and crony fraud and QE with ZIRP, the former president of Peru, Alberto Fujimori, said in the 1990s while solving Peru’s financial crisis, that bad economic policies are an inherent feature of a representative political system, i.e., a democracy. Nine times out of ten, he said, the politician who promises ‘free money’ to his constituents under “representative government” will get reelected.
For “it is an ancient insight,” wrote Clarence Carson in the Freeman, “that democracy is mob rule.” (It was the selling of democracy in the latter part of the nineteenth century and in the twentieth century that connected America’s limited government to “representative” government , culminating in WWI bloodletting that “made the world safe for democracy.")
It is now culminating in full-fledged socialism.
Bankruptcy is the future of this welfare state because her politicians and central bankers will refuse to downsize until the nation is nothing but a graveyard.
Adding fuel to the debt fire with ZIRP, Benanke and Yellen are trying to overcome market forces by playing with matches. It's like fighting the last war with an illusion that the Fed can pump money into the system and overcome the resulting inflation...with more printing. But it’s not working..it is impoverishing America's middle class.
In short, the Fed's magicians are buying up bonds that no one else wants using the magic of ZIRP to create a false reality. What the Fed really is fighting under the table are the bond traders whose ultimate power can veto both presidents and the Fed. James Dale Davidson of Strategic Investment Limited Partnership described it in 1995 as the final crisis of a welfare state:
“Bond traders aren’t elected, and they answer to nobody. But they possess knowledge about market prices around the world. In the new Information Age, bond traders can move trillions of dollars at the speed of light. And that makes them very powerful.
“At the first inkling that the government is trying to reflate the economy by pumping funny money into it, thousands of bond traders will dump hundreds of billions of dollars in U.S. bonds. Interest rates will shoot up like an Apollo booster: slowly at first, then with unbelievable power and speed.”
And should the interest rate spike, Davidson warned, “the interest on the national debt (in 1995) would be four times what it is now… greater than all the rest of the budget combined. And there wouldn’t be a penny of tax money left for anything else, from Social Security to the Weather Services.
“It would take an Argentine-scale inflation to get out of this. The government wouldn’t be able to borrow again for a generation. The value of money would be totally destroyed, and with it most of the middle class.”
Added Davison: “Every major government that ever tried the inflation option ended up falling from power, usually in bloody revolutions. Our government is not going to try this.”
Instead, the bankers are sipping ZIRP, opting for the agony of a slower death. No one could have predicted America would face nine years of ZIRP, of course; but then, no one would have predicted that in its greed the Fed would be willing to destroy America.
JR,
fuck the middle class-----they had it all and could have quit while they had enough to live out the rest of their lives COMFORTABLY,
but, NO---they couldn't do that because a few pennies might fall on the ground
I see them down here all of the time, now
boomers and doomers, each telling the same sad tale to each other the same, same day after day
400 pound couples stuffing their faces and talking bad about everyone
fuck'em-----they can stand to lose some weight, anyway
How do you know those fatties are middle class, otto? EBT card holders are getting hard to spot, driving SUVs and buying their groceries on the middle classes' dime. The stimulus is wealth redistribution going to the lower classes for their votes and to the banker class for its yachts and estates, the latter and their corporations being the beneficiaries of stimulus spending. The losers are the middle class; they are the ones in “poverty”; you won’t be seeing them blocking the store aisles.
The truth is, the American middle class built this country and it is they who are being robbed of their labor, their heritage and their culture.
According to The Heritage Foundation in 2010, here are the facts regarding persons defined as “poor” by the Census Bureau:
“Overall, the typical American defined as poor by the government has a car (31 percent own two or more cars), air conditioning (80 percent), a refrigerator, a stove, a clothes washer and dryer, and a microwave. He has two color televisions, cable or satellite TV reception, a VCR or DVD player, and a stereo. He is able to obtain medical care. His home is in good repair and is not overcrowded (more than 67 percent of ‘poor’ households have two or more rooms per person).
"’Poor’ American children eat more meat than higher-income American children and average protein intake 100 percent above the recommended levels. Obesity is the predominant health hazard to America's ‘poor’ children. ‘Poor’ children in this country grow up to be on average one inch taller and 10 pounds heavier than the average G.I. who stormed the beaches of Normandy in World War II.”
There are two main reasons that American children are poor, says Heritage: “Their parents don't work much, and fathers are absent from the home. In good economic times or bad, the typical poor family with children is supported by only 800 hours of work during a year.”
JR,
These fatties talk about their gold and silver that they bought with the proceeds of a QE facilitated real estate transactiion, and how taxes are so high in the US!
What else do fatties do? this is how they got those big asses that take up two places-------'working' for the .gov/mic and if what any of them did was really work----well, how did they get those big asses? Ex prison guards, police, retired double dipping military, etc. because they happened to have been born the right color-----------------------------who cares about 'justice for all, anyway?
The so-called 'poor' of the census dudes should have their debt forgiven because they were the 'economic growth' that could not have existed except for the un-repayable debt that the banks allowed knowing that the taxpayer is on the hook in some form of QE or other-----forget moral hazard when the banks are underwritten by the public weal and treated as 'special persons' under the tax law----it is all bull shit and should be thrown back to the banks.
I could go on with the rest, but I am not going to---you know the same things that I know so it is redundant to go over them anymore.
The Heritage Foundation is a joke of the extreme right all white christian segment of the population and their dope is not exactly un-biased in their favor, so I cannot, in all honesty, discuss this using such a one-sided view. With all due respect, we would have to come up with more honest data.
I like capitalism very much, I don't like the poor, the ignorant, or the middle class, but we are stuck with so many of these strictly as a result of the overpopulation required by the 'growth model' of the last fifty years or so. Now there is no need for so many, as a result of the technology and we rag on them all of the time. I don't have many friends among these folk, but it is not my problem to either feed them or eliminate them-----it is the business/.govt. order that received most of the gains-----they are the fatted calf---not we savers.
thanks for the reply and i apologize for this late response
"If you like your QE, you can keep your QE".
Oh wait.
I look forward to charts, I love technical analysis and "shorting" this market, has been PAINFUL!...However, never been one to say/do: "can't beat'em, join'em!! (CRIMINALS)
Oh, MY MAIN MAN, is still #1 and obtaining the PRECIOUS is forever on my mind.
Gold was "limit down for a while" as reported both in this and another post, eh Tyler?
That's really saying something for a contract that doesn't have a daily price limit! Only ZeroHedge could be so retarded. I suppose now you're going to tell me that the "stop logic" events are somehow the same thing as "limit down"? Sorry, not even close - completely unrelated concept.
As per normal, ZH excels in so many areas, but all things Precious Metals related on this site continue to be 100% misinformed bullshit.
Go ahead, losers, vote me down. Show your loyalty to the goldbug retards, and celebrate your ignorance of such basic concepts as no-limit futures contracts being "limit down for a while". Go ahead, make my day. It amuses me to watch retards express themselves here.
xPat
xPat, +100
Well said. I could only give you green, so I thought that i would 'top-off' with a thank you for calling the hand
Plus, if we still had 'limit-down' no one could sell the manipulation gag to the 'good ol' boys'
limit down five days at five hundred or so in '79-----that was a real market and fun to play
thanks again
The 10 yr chart is scary.
Over 100 bps in less than 6 hrs. How long ya think that can go on? I tell anyone who will listen, watch the 10 yr bond yield, it represents the point at which reality bisects fantasy.
I created this fucking meme.
A Tapir tapering one!
That Tapir in the water is a congressman passing a bill, polluting everyone downstream.