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Pre-FOMC Market Update: Chaos
ADP "beat" sent stocks and USD up, bonds and gold down. GDP "miss" sent stocks and USD down, bonds and gold up... and now the Fed's emergency meeting has sent all asset classes into a Tapering-the-taper frenzy as chaos hits markets sending stocks up to highs of day (less Taper), Bond yields to lows of day (low growth less taper), USD tumbling (less taper, moar QE vs ECB), and Gold jumping higher (less taper, more QE)... correlation is crumbling everywhere as the Fed's calming communications cause chaos...
Chart: Bloomberg
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JP Morgan says US Q1 GDP could be revised to zero.
If you take out the intangibles they now include when they calculate GDP , we actually had a negative print.
This is what a market based on Ponzi-finance looks like -- no one is in the theatre to see the movie, only to eat free popcorn while trying to figure out whether that smokey smell is coming from the popcorn maker or something more sinister....
Told them once and I'll, tell them again. Foreward guidance particularly based upon hard numbers leads to a clusterfuck.
Emergency meetings not withstanding.
And if this was so "Emergencyish" why the fuck was not the whole board in attendance?
Sounds more like the luncheon menu discussion.
Which would be exactly the Reality of Onion like news events these days.
Haven't you heard? The other board members don't exist ... yet. Congress hasn't seen fit to do its job
Soooo... do the machines need to be turned off, back on, or both?
Communications policy is a powerful tool to give guidance to the market.
http://www.youtube.com/watch?v=airT-m9LcoY
This is how the market knows "Who gets the money".
Smell?..... I smell new highs TODAY
The November election may just get down right interesting
leave no incumbent in office
Can we nuke the place and start over? Maybe in Colorado where they located the new CIA headquarters, or in Utah with the new NSA facility. Strange placement of these new sites.... curios.
i guess it's more secure near Yellowstone than the NE coast..... sounds like war placement to me.
Yeah, kind of like they either know the east coast is where you don't want to be, or that they're worried the west will break away and want assets pre-placed there...
No wonder these fucks are so eager to jump into Ukraine. They will replace investment to boost GDP with the lives of American soldiers. Step right up. Uncle Sam wants your blood to keep this dog shit economy afloat.
Bad world economy = foreign unrest = BTFWWIII.
Dr. Engali
Vote up! 11
Vote down! 0
If you take out the intangibles they now include when they calculate GDP , we actually had a negative print.
Back out inflation and what do you got? Shit is what...
it would be laughable, it it weren't so sad, how rigged this shitt really is...
Moar you Whore's! Keep pumpin that shit like synthol!
Coming soon, Janet yellen debuting 24 inch pythons filled with pump n pose.
LOL.
Oh great! As soon as I read that the image of moe yellen wearing a bikini style that all female bodybuilders do just made me vomit a bit of my morning yuengling up(:-(
Thanks Canada!
Time for another secret emergency meeting before the regularly scheduled meeting.
The markets aren't rigged. Mary Jo White assured us of that fact. She even baked us some cookies to make us feel better.
"If I would have known this shit was gonna happen, I would have stayed in England."
--The Forefathers
Could be the post of the year.
Almost tempted to open another account just to upvote that again.
I did it for ya'.
Tee-hee...silly "investors"! That's what they get for ignoring fundamentals and chasing dollar-denominated yield for so long.
JUMP, YOU F-----s!
Some have been known to jump when they're down to their last $50 million lol. No way possile one could live off that for the rest of their lives lmao.
Emergency!!! The erasers are worn out!!!
Just a huge complex mess of shit that can't be held up anymore and an entire society built on digital zeros and convenience what could possibly go wrong?
I sure wish I had diversified into more foodstuffs than fucking spam.
Emergency!!!! We're not hitting new highs everyday!!!! Why is that!!!!
The ramp wasn't due to the "emergency" meeting. It was due to an insanely big beat on Chicago PMI.
Gold and silver negative on a weak dollar makes all the sense in the world.
Sharps-Pixley headline: JP Morgan says "Gold will never see $1300 again"...go figure where they got THAT "forecast"
The CBs simply HAVE to be just about OUT of real gold.
Actually that's Morgan Stanley. My take is that they are looking to buy.
They say that "the gold price" is "the dog that doesn't bark". But my bet is that that dog is barking and barking, loudly somewhere, and we are being kept from hearing it.
When your boat is Titanic sized, things break at different times as the wreck propagates. It seems Au/Ag are not destined to be coal mine canaries in our global collapse, which flies in the face of history, but (in terms of insanely low prices for a duration past all reason) may also be the greatest gift your government never really meant to give...
Hey TYLER..SLV acts like shit on really good volume......what up
It's a paper tool to manage physical silver?
As long as the GDP of the Elysium Class and the Elysium Support Class economy is increasing, it's all good.
Clearly, my definition of "chaos" is considerably different...
at least its not snowing,
But we are still good, right? Full steam ahead all that?
Why am i sooooooooooooooo confused?
Why am I reminded so much of this?
http://www.youtube.com/watch?v=MX7Yo0tWDgk
DavidC
I say 5bln taper this time
Cock suckers are ripping Singer on bloomberg right now. Pathetic
Time for Yellen to find a new dealer to CHANNEL STUFF. Belgium's lot is becoming quite full.
The Fed got the logical outcome. The targeted an upward moving market. So all money allocators (which means all businesses) were given a free put option on the market. This means they are being rewarded to take unrisk rather than risk. Allocators did what they should. They allocated money to the financial market where the risk was nil and the return was high. Essentially the Fed robbed fixed investments for the past 5 years to prop up the market. This is the most basic concept of resource allocation. They got the result their system was designed to achieve.
Well, ignoring all the new debt that was created, yes, you are correct. Unfortunately, there is a very real cost for capital (remember money is not capital) and it will be paid one way or another.
Talk about shooting yourself in the foot.
The American economy slowed drastically in the first quarter of 2014, as wintry weather depressed corporate spending and housing sector activity, while smaller additions to inventories by farmers and businesses also held back growth. At an annualized rate of 0.1 percent, the pace of expansion in January, February and March was the weakest since the fourth quarter of 2012, when output barely grew at all. It also represented a sharp deceleration from the level of growth recorded in the second half of 2013, when the economy expanded at a 3.4 percent rate. The first-quarter pace also fell well short of the 1.2 percent rate of growth expected by Wall Street economists before the Commerce Department announcement Wednesday morning. READ MORE »
http://www.nytimes.com/2014/05/01/business/economy/us-economy-barely-grew-in-first-quarter.html?emc=edit_na_20140430
Auntie Em! It's a twister It's a twister!!
Someone short silver to $18! Whoot whoot!
if so, time to stock up the slipper closet?
AB SO LUTE LY
The relationship's become where
financial strategists are like little
puppies looking up at a master.
What do you have to feed us
today?
Once the food chain's privatized
it's how much in food stamps do'
you have for us today, and it's the
same in any sector, with the
controlling firms getting the
richest "gives" in each case.
To think interest rates
should remain near 0 is to think
there should be no business cycle.
TBTF aggravates cycles cause of the
immunity from risk.
The emotional and analytical
motivations can be better informed
so as to reduce cyclical behavior,
if it's too extreme, but
0% off onto the horizon for safe
money returns implies little
investment value in the dollar
and an economic future on hold.
(But cash hoarders know that
as soon as rates rise it'll take
less money for comparable payout.)
Washington should be looking at
ways of publicly taking on non-
sovereign debt so as to cancel
it, including using banking
authority and legal theories for
reducing it in whole classes,
particularly student debt.
Bankers do that every day of the
week when they cancel out
pensions, invade Social Security,
cause 401(k's) to lose value, etc.
More non-sovereign loss taking/
debt default, with depositors
walled off safely, and more investment
for public purposes, would reverse
serving a nation in debt or prison
in favor of using debt for worthwhile
ends, and enabling people instead of
imprisoning them.
One way to reduce the impact
of debt's increased burden upon
the rise in interest rates is
publicly taking on, so as to
cancel, parts of non-sovereign
classes of debt, such as student debt,
with investors accepting that
banking authorities acting in the
public interest deem it bad debt.
There're obviously many Resolution
Trust type scenarios.
The precedent is loss sharing
in mortgage mod's, but that's simply
about holding borrowers' feet to the
fire while supply released in a manner
supporting bank owners' asset values.
We couldn't have this level of market manipulation without the Fed.
The USD is going straight down, the fix is in. More QE and higher prices for stawks.
We don't need no stinkin GDP up up and away!