What Happens Next?

Tyler Durden's picture

What goes up (via free money and practically infinite leverage and rehypothecation) must come down (when the flow slows)... the dominoes are falling...


First Emerging Markets, then US High-yield credit, then US Stocks, and now European stocks...


and remember - this "selling" overseas does not mean "buying" domestically as the majority of these hot money flow trades are credit-funded and merely extinguish the debt at the margin...


h/t Bloomberg's Chase van der Rhoer

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Groundhog Day's picture

looks like a buying oppurtunity.  Bob doll and A joseph cohen told me

Headbanger's picture

The term "collateral damage" comes to mind here watching these markets starting to drop like a dumb bomb!

WarriorClass's picture

CT Collectivist Gun Grabber Ruthlessly Exposed By Sipsey Street Irregulars


TruthInSunshine's picture

The bottom could be a long way off, and I won't be buying any more Herbalife shares until Jimmy Jam Cramer has a public meltdown whilst chiding Mrs. Janet Debtfire, Doug Kass talks about his bottom on cnBSc or Obama says that "it may be a good time to buy some stocks" while speaking into the microphone at the Rose Garden podium/teleprompter.

Boris Alatovkrap's picture

Tax and investment strategy is distraction from creation and preservation of wealth. America must is demand restoration of constitutional republic, or resort to barter economy. Like Poland and Hungary, you are eventually surrender all retirement saving in name of "National Emergency". Better you are have good stock of toilet paper in cellar.

Dr. Engali's picture

"Better you are have good stock of toilet paper in cellar"


I do. They are called Federal Reserve Notes.

Dugald's picture

Cor! aint your engrish improved sum ting wonderful!!!!

greatbeard's picture

>> you are eventually surrender all retirement saving

I've got less than a year before I can start tapping mine.  I've got enough in there to sustain me for four years at my current burn rate.  It might not be the best tax strategy, but I'm going to burn what's in there before touching anything else.  Unless, of course, things all look rosy on the confiscation front, then I'll have a more tax friendly controlled descent.

Dimons jock's picture

I'm long corn cobs ... bring it 

slaughterer's picture

Normally, I woudl trade this, but now I am just going to bed.  Wake me up when we are under ES 1700.  

zorba THE GREEK's picture

Desperate people will take desperate measures. TPTB have control over central banks and they

will print infinite amounts of money to protect their wealth. But central banks can"t print gold

or silver. Therefore buying physical PMs is safer than shorting the stock or bond markets. Live long

and prosper ZHers.

HyBrasilian's picture

Ctrl+P [But not until MOAR consolidation in to FEWER hands]

Boris Alatovkrap's picture

Where is Ctrl+Z (Command-Z on Macintosh personal computer)!?

semperfi's picture

and my popcorn's a-poppin!

Dr. Engali's picture

No offense, but if I had a nickle for every time I read that over the course of the last four years I would be Kyle Bass.


Edit: I did not junk you btw.

Spastica Rex's picture

If I had a nickle for every nickle I have, I'd have two nickles.

Overfed's picture

Then you could rub 'em together! ;-)

Moe Howard's picture

Don't have a pot to piss in however.

Pool Shark's picture



When someone offers you 'a penny for your thoughts'; and you throw in your 'two cents,' what happens to the extra penny?...


Keyser's picture

It goes to pay the debt for when the 1st penny was created. No debt, no money. 

halfawake's picture

now four!! i think that's rehypothecation or something.

vie's picture

Isn't that how they want it?  You've heard it so many times you ignore it when it's actually going down?

My theory is the Fed is too stupid to be stupid.  They know exactly what they're doing.  If that's the case, what are they doing...  I suspect, as we've all heard, trying to force a global currency reset.   If they can crash the world economy, that would set them up pretty well for a reset, wouldn't it?  Problem-Reaction-Solution.

We know they like to change hands in the middle of these things so it looks like idiocy and accidental fumbling instead of precise planning.  We know they like the set expectations to be the opposite of the reality they intend, otherwise they wouldn't get people to fall for it.  If Janet is an uber-dove, everyone expects her to print more to get out of it and reverse the taper so they BTFD as we've been trained to do.  My bet is she will "reverse the taper" but the market will still crash (either now or later) as we see a series of bull traps, while we see massive deflation in assets.  

How else are they going to suck up the worlds wealth?

redpill's picture

I don't think most people realize that because of leverage the majority of the absolute volume never really existed.

Winston Churchill's picture

A mirage projecting a mirage. Money instead of an oasis.

Those paper fortunes have a habit of disappearing via

spontaneous combustion.

Keyser's picture

or margin call. One way or the other. 

DIgnified's picture

Im ready.  Let's get this over with. 

mayhem_korner's picture



What's next should be some liquidation to cover margin calls, n'est-ce pas?  Personally, I'm going to mortgage Marvin Gardens and the railroads.

fuu's picture

Oddly enough Marven Gardens is the only property on the board that is not in Atlantic City. Parker Brothers apologized for the spelling error a few years ago.

NOTaREALmerican's picture

I'm ready to buy the dip.   

The opera's not over until the fat lady dips.

Sudden Debt's picture

so deflation on a massive scale... I like that!

halfawake's picture

they'd never allow deflation, b/c then average joe's spending power would (technically) increase, and that can't be allowed. they have to progress the chasm between haves and havenots else the havenots are less likely to choose servitude.

B.J. Worthy's picture

She's on hold with IT about her paper jam.

jughead's picture

Is it time for me to have my wife cash-out her 401k yet?

ThroxxOfVron's picture

He who panics first panics best...

Spastica Rex's picture

Panic early and panic often.

falak pema's picture

its called precocious shorting...in the financial world.

NOTaREALmerican's picture

Investors taking profits...

Stocks flat on light trading...

DebtSlaveZombie's picture

VWAP...VWAP...VWAP  Watch it.  The selloffs are much stronger than the buying volume.  Its like a slow motion sink...like sinking in quick sand.  The volume tips the next surge downward then a low volume bounce... then back into the cellar again.

Winston Churchill's picture

Expect heavy selling into the close.

Its what I would do if I was in this casino.

DebtSlaveZombie's picture

Agreed.  Big Big sell pressure into close.  Easy money right here.  This thing is gonna roll over and finish down 20 points.  Then tomorrow and friday could get real ugly.

Winston Churchill's picture

If double POMO cannot close it green ,it will be frugly into the


Its actually acting like a real market except for the PM suppresion.

Has the Fed PPT lost it ?

DebtSlaveZombie's picture

Not sure.  But I air-balled my short.  The market is dead into the close.  I'm holding my short overnight and may get stopped out early tomorrow but I'm pretty sure we'll gap down tomorrow morning. 

Ban KKiller's picture

You were right until 58 seconds to the close when the HFTs kicked in to save the day! Why? Because they HAD to.

Sufiy's picture

CNBC: Thomas Demark Calls For Risk of 60% Crash In S&P 500

Thomas Demark is calling that the next two - three days will be critical and if the markets go down they can unravel very quickly. If today's weak ADP report can be taken as any guidance the coming up Jobs Report can be weak as well. We think that his call is very extreme, but Taper Pause is becoming the reality with every sell off in the market. Thanks to Bernanke, Janet Yellen has her FED Chair Crisis right at the start of her reign. Gold is fighting the gravity and market manipulators at the $1270 level and once it will close above it the mother of short squeeze in Gold will arrive.



NOTaREALmerican's picture

Re: Thanks to Bernanke, Janet Yellen has her FED Chair Crisis right at the start of her reign.

Well, when Janet took over the controls, Ben had to slide over while keeping his foot on the gas peddle as Janet took his seat - but he probably couldn't quite keep it depressed all the way and there was a bit of deacceleration.   I'm sure we'll be back to full power shortly.

enloe creek's picture

is momma short squeeze related to long tall sally 


lasvegaspersona's picture

Gold and the stock market are dependent upon the mood of the Fed. What happens next is up to the FED. If things are to 'improve' however we will have to see them reverse taper. Otherwise there isn't enough liquidity for more 'fun'. Want to know what happens next? Ask Janet.

And forget the 'markets'...they have nothing to do with anything.

gwar5's picture

1929 was not a good year for suckers.