Forbes Pulls Down China Hoax Story; Even As Dennis Gartman Is Completely Fooled

Tyler Durden's picture


Earlier, we debunked an alarmist Forbes story about halted cash transfer by PBOC decree, which was erroneous along various lines all explained previously, not in the least that the actual announcement had first appeared some three weeks ago. And despite the kneejerk reaction of some of our more fatalist readers and not to mention the general public, the reality is that China has more than enough real problems (Trust Equals Gold being at the forefront) and certainly does not need to add imaginary, made up ones, conceived only with the intention of generating conflated ad revenues through click-baiting headlines. Which is why we commend Forbes for, better late than never, pulling the story even without providing an explanation of how this story appeared in the first place. Because where the article once was, there is only a 4-0-Forbes now:

Perhaps it is not too late for Forbes to salvage some credibility.

One person whose credibility, however, was already so deep down the drain that tonight's incident barely made a dent, was Dennis Gartman, who made an impromptu appearance on CNBC China (gotta keep collecting those $200/appearance checks: after all someone's gotta pay the bills) and extolled the virtues of the now 404'ed Forbes article, preaching fire and brimstone to the 5 or so people who may have been interested in his ramblings.

To wit: "The news out of China, that they have suspended remittances of Renminbi, is even more important than the news out of the emerging markets last week...."

And so on, spinning an entire market impact thesis based on a fake story. Oh well, gotta work all night to rewrite your entire Monday newsletter, Dennis.

In retrospect, had we known Gartman endorsed this story earlier, we would have known it was a fake from the beginning.

Meanwhile, the real story regarding China, the one we broke and explained on the 16th, is only gathering steam, following an official statement from the S&P's Liao who said that there is "no legal ground for ICBC to take responsibility" adding that "a bailout could risk a shareholder lawsuit." He observed that Trust Equals Gold acts much like a bond, and a "default would raise funding costs", but is unlikely to trigger a liquidity shock for the entire system, and is "unlikely to undermine the whole banking system."

Luckily, it's not like S&P has been wrong before...

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Mon, 01/27/2014 - 01:57 | 4370401 gwar5
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That's just too funny.  Just goes to show what a hair trigger everyone has these days due to the FrankenFed global experiment.


Mon, 01/27/2014 - 02:11 | 4370424 Alethian
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Or, that something big is coming and information is leaking out.

I guess we'll find out soon enough.

Mon, 01/27/2014 - 02:35 | 4370447 Apostate2
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As they say, 'Baozi lòuxiàn er' (the bun is leaking it's filling). 

Mon, 01/27/2014 - 02:39 | 4370452 philipat
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Even as Dennis Gartman IS a complete fool??

Mon, 01/27/2014 - 02:43 | 4370457 akak
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But he is long China in pork bun terms.

Mon, 01/27/2014 - 05:12 | 4370575 Apostate2
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Lord of the buns!

(Jinping will be pissed as that's his nickname).

Buns and eels sounds like 'what's for dinner?'

Mon, 01/27/2014 - 05:18 | 4370581 philipat
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I thought it was Moon cakes?

Mon, 01/27/2014 - 06:32 | 4370618 Apostate2
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Having a laugh. But wrong festival by a few months. Having said that, moon cakes are like fruit cakes, pass it on. 

Mon, 01/27/2014 - 06:48 | 4370626 Bindar Dundat
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It would have  been  ironic if the entire system imploded because of a MSM screw up.  We would have deserved the apocalypse we created....

Mon, 01/27/2014 - 08:01 | 4370670 Apostate2
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Yes I understand your point but even the MSM is not capabile (given its nature) of moving anything beyond the 15 minute mark. Having said that, I think these scare stories may be viewed as a margin call on failed policies and financial malfeasance or may I say malfaction in our public square.

Whom to blame? At the end of the day this will not be an easy nor moral call. However, we may move forward from the blowback of our failings and when the smoke clears know that a well trodden path in it's simplicity, knows the halting places.

Mon, 01/27/2014 - 09:59 | 4370898 Four chan
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gartman and his stupid units trades always irked me. 

Mon, 01/27/2014 - 06:57 | 4370631 The.Harmless.Who
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"Even Dennis Gartman...." 


WHO is Dennis Gartman anyway? 


Mon, 01/27/2014 - 07:16 | 4370639 Arius
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Dennis Gartman is a well established commodities analyst, the institutional investors follow him.  Unfortunately, he does not provide advice for small investors, but you can follow him on CNBC and other shows.

In general, he has been always on the point, however, tonight he seemed a bit of an alarmist.  My guess, he is stack with some gold, silver, palladium he might want to get rid of.  Thats the problem with TV or the free blogs, these guys all try to sell their books.  I wish i was on his institutional investors list though ...

Mon, 01/27/2014 - 07:18 | 4370643 GetZeeGold
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Dennis Gartman is a well established commodities analyst


Thanks time you come downstairs would you bring me a glass of milk?

Mon, 01/27/2014 - 07:35 | 4370649 Arius
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no coffee yet?

get out of the basement ... it is a whole new world out there

Mon, 01/27/2014 - 07:39 | 4370652 GetZeeGold
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Mon, 01/27/2014 - 07:43 | 4370655 Arius
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thats your best shot?

you real? dennis, amigo, has no time to argue with basement residents ...

Mon, 01/27/2014 - 07:54 | 4370659 GetZeeGold
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You did not capitalize the name of Dennis? That is heresy!

Mon, 01/27/2014 - 08:04 | 4370677 jcaz
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Dude- you decided to blow your credibility defending Gartman?

Stop reading Wikopedia and take a look at his actual performance....

BTW, he doesn't "advise institutions"-  he pens a piece of tripe called "The Gartman Newsletter",  which a couple of the more clueless banks still have a subscription to...

Gartman has been consistantly wrong on his calls for years, to the extent that one can take the opposite side of his trades and walk to the bank.....

Mon, 01/27/2014 - 03:14 | 4370485 ebear
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Or, as they say in Hungary:

"My hovercraft is full of eels."

Mon, 01/27/2014 - 08:55 | 4370740 Nom de Guerre
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No, no, no. "I will not buy this tobacconist. It is scratched."

Mon, 01/27/2014 - 02:10 | 4370425 laomei
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No, it's just gordon selling the same shit as always, and of course, not bothering to do an actual retraction, just delete and down the memory hole it goes like it never happened.

Mon, 01/27/2014 - 02:02 | 4370410 HedgeAccordingly
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oops.. just "repricing of assets"

Mon, 01/27/2014 - 02:05 | 4370414 Frank N. Beans
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so Asia markets not falling then? 


Mon, 01/27/2014 - 02:31 | 4370440 Ranger_Will
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That is EXACTLY what they would like you to believe.  This whole "hoax" or "accidental" story thing stinks like 2 week road-kill to me.

"See people! It's not THAT bad at least!"

What a crock.

Mon, 01/27/2014 - 07:18 | 4370641 BandGap
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If knowledge is power than these stories have a tremendous psychological impact.Especially given venues like Forbes and CNN (the last "hack" headline).

There will be a multitude of "truths" for certain situations. Just like Gartman reacted to this "truth" so shall people be swayed by other proclamations in the future. It is as intended, it provides time and cover. It also provides feedback on how people will react to certain news. I expect these "truths" to become more severe in the days to come. Sorting them out will become more difficult.

Trust what you actually know, question everything else. Stay safe.

Mon, 01/27/2014 - 19:17 | 4372916 OceanX
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Yes, I'm fuzzy on the details but, intelligence agencies classify there lies:  mis-information, dis-information etc...

(I think I read an abstract or something on propaganda, years ago.)


Further, a really good read: "How Real Is Real"  --I don't recall much.

Mon, 01/27/2014 - 11:50 | 4371208 CPL
CPL's picture

Meh, who cares. LOL

...HOWEVER now everyone knows what type of trigger words it'll take to get the HFT's to jump through hoops by reading headlines and where they read them.  Memes are interesting things.  The trouble with them is figuring out the combination of keywords and total lack of cultural awareness to make HFT's and pit traders slobber when the dinner bell is rung.  However, the truth of the matter is it's an actual news article just released a little early. 

And early is just as bad as late.  Why is this important?

Imagine if you will that you are playing hockey.  The opposing team has the puck buried in their end of the rink and their goal is waaaaay over on the other side in your keep.  The goal of your team on defence is to get them to let go of the puck so you can make an opportunity happen. 

So you harass the shit out of them as the rules in the book say you are allowed to.  You don't need to put them in the boards or hurt them, just need to spook them so they misfire or drop their shot wide.  You continue doing this to each player on the opposing team for the first half to figure out how they think, move, watch, play and panic

If this were a hockey game, they'd have scored on themselves about a dozen times already while randomly bringing their own team mates into the boards and filling the penalty box with themselves.  There really isn't much to do in that type of game but stay out of their way, make some noise when they score on themselves and play by the book.  Eventually they'll all black card themselves from a combination of losing their shit on each other and injuring themselves.  Once they are all neatly tucked in the penalty box, then you let your two fastest forwards on the ice and make the goalie sweat by running them around the net with all the gear on.

Keep in mind this is hockey, so you are going to get beaten up the first half while learning who's on the opposing team and how they play.  Some lie.  Some cheat.  Some steal.  Some attempt to murder you.  But you stay on the blades and play by the rule book.  If one comes in close, give them something to remember you by but the end goal is to bury the puck in their net and put a another number on the board.  Might come off the ice covered in your own blood, but you played well and you win.

Then you shake hands and see who wants to go for drinks and snacks.

Mon, 01/27/2014 - 02:12 | 4370419 LMAOLORI
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F?icháng bàoqiàn

Ugh I posted that story in the comments so pile on. It got Market Watch too lol though they said they couldn't immediately confirm it.

Mon, 01/27/2014 - 02:24 | 4370435 Apostate2
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Meiguanxi (perhaps you mean daoqian it's more sincere! :)

Mon, 01/27/2014 - 02:09 | 4370420 Johnny Cocknballs
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Never trust anyone offering financial advice or market forecasts on China who doesn't know when the Chinese New Year is.

It's kind of a big deal.



Mon, 01/27/2014 - 02:13 | 4370427 laomei
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For some odd reason, I entirely expect someone to come over and start taking pics of all the shuttered storefronts and empty streets claiming that China is over or something.

Mon, 01/27/2014 - 04:28 | 4370542 Leraconteur
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He is rightfully pointing out that FX transfers are not going through the entire week.

The banks are NOT closed that week. They will still accept deposits *cough*.

To repeat: China does NOT have 'bank holidays' like this as a norm.

This is new and different.

Banks in China are open nearly every single day of the year INCLUDING most holidays and most weekends.

Banks are almost ALWAYS open on Saturday and Sunday in China. They rarely, if ever, close. 

Mon, 01/27/2014 - 04:34 | 4370544 Johnny Cocknballs
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Yeah, you're right.  Good point.

Mon, 01/27/2014 - 06:38 | 4370623 disabledvet
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"Feed the beast...even if it means 10-12% inflation."

Mon, 01/27/2014 - 02:12 | 4370426 Yen Cross
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" That Gartman video"make's me feel violated!

Mon, 01/27/2014 - 02:20 | 4370432 LMAOLORI
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How about this one with Chang in it then lol he's still kind of sticking to his story (video at site)...


Is China really running out of cash?



"For his part, Chang isn't convinced by Citigroup's explanation.

"I know in the past they've had similar notices from the PBOC (People's Bank of China) before Chinese New Year. But they haven't been in the time of a credit crunch and therefore that's the critical difference," Chang told CNBC."

Mon, 01/27/2014 - 02:40 | 4370454 philipat
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Listen, it's a BANK HOLIDAY all week. I would have thought that was fairly self-explanatory?

Mon, 01/27/2014 - 02:16 | 4370431 Mentaliusanything
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It would appear there is some fear of "Tomorrow" brewing.

Everything closes for Chinese New Year.... Its the year of my birth... The year of the Horse, and that means quick change of normality. 

but something is brewing and its not my home made beer :

Mon, 01/27/2014 - 03:17 | 4370451 Harbanger
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They've adopted the Gregorian calendar for official record keeping, like in birth dates.  Chinese calendar is used for tradition.  That leap month in their lunar calendar threw things off a little.

Mon, 01/27/2014 - 02:24 | 4370434 Wait What
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what is this CNBC crap that Tyler keeps referencing? i am truly flummoxed that it exists, but is completely useless... save maybe that santelli guy.

Mon, 01/27/2014 - 02:26 | 4370437 Youri Carma
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There a bit Wu-Wu crazy at Forbes sometimes. Not good for their credibility. I hardly ever quote Forbes so maybe skip it all together.

Mon, 01/27/2014 - 02:34 | 4370449 Dr Benway
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Hmm. In the other thread, posters living in China claimed this is not normal process around holidays?

Interesting times 

Mon, 01/27/2014 - 02:49 | 4370461 Skateboarder
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Commenters' experiences tend to be the most truthful datapoints for forming an aggregate opinion on most issues. Some things are gutted in feel - you know they're not gonna blow it just yet, etc.

Mon, 01/27/2014 - 03:28 | 4370502 phaedrus1952
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Ya know, Skate, I'm not a finance guy, but I follow along and understand/evaluate best as I can ... That being said, I've followed this site for many years - back when it was hosted by blogger or whatever - and there is something strange going on with these stories, the comments ...  Don't know what to make of it, but my  spidey senses are going into overdrive.

Mon, 01/27/2014 - 04:50 | 4370559 tip e. canoe
Mon, 01/27/2014 - 02:37 | 4370450 philipat
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Apologies, duplicate.

Mon, 01/27/2014 - 02:48 | 4370459 Yen Cross
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   The same Gartman that's long yen in gold terms?  net short usd

  I hate the little prick, but?

Mon, 01/27/2014 - 02:52 | 4370464 Johnny Cocknballs
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off topic -

has anyone else, especially in good faith, ever tried to sign up over at daily kos?  I had 3 comments removed basically right away, none of which were anything I would ever imagine would be a problem on a politics site, mainstream or alternative.  In essence, I'm in the penalty box for suggesting that it's hypocritical nonsense to protest bush for doing stuff, then stop protesting it when obama continues doing it, and to not only stop protesting but to shriek that all the criticism of Obama is nothing more than racism b white republicans who are of course all racist...    I no kidding figured there's be a minority of reasonable people and I could avoid the namecalling, but that appears to me to be a fucking insane cult that brooks no dissent or even a modest adherence to the ideals of free speech and the exchange of ideas.

Jesus, Glenn Greenwald said as much the same thing about progressive hypocrisy as to Bush/Obama. 

I'd rather the religious right have power than the "progressives"  - they are ouright fuckin' fascists.

Edit: in looking up the Greenwald article for the few that might want to read the link, I discovered daily kos had responded to it.

.......sorry to threadjack, just wondering, honestly - nothing I wrote was offensive or shrill or swear-laden, just basically saying it's dishonest to claim obama's critics are racist.  Some of us didnt like what Bush did, and kept not liking it even when a black guy was doing it. 


'moving the goalposts' comes to mind...


Mon, 01/27/2014 - 03:12 | 4370483 Harbanger
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Why are you surprised? The Daily Kos is a very liberal/leftist website.  If you haven't noticed, they all moderate and delete comments that don't tow the same line or even suggest an alternate point of view.

Do NOT follow this link or you will be banned from the site!