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Citi Calmly Explains Why "Fundamentals Haven't Mattered For 2 Years"
Simply put, warns Matt King - as the taper continues - "markets stopped following fundamentals about two years ago." Leaving the question... when does that change?
Stocks...
And Bonds...
But the feedback loops are becoming ever more fragile...
But things are starting to change, one asset class at a time...
Source: Citi's Matt King
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these guys are fukkin geniuses...they figured it out!
Yeah wow! They should win a Nobel prize in economics for it.
they better prey to god fundementals dont come back into style
Fundamentals stopped mattering about 30 years ago.
In a world where almost everything's price is manipulated, two ideas for financial preservation stand out:
1) Diversify your assets
2) Spend less & stay out of debt
That's all you need to know!
As the FED continues taper (done by Oct?), fundamentals and especially debt load will be come all the rage (real rage). The rates go up and the fleecing begins. Still not sure how the big banks are going to survive the coming recession (due before 2017). It almost seems like they are trying to destroy the USA and their banks along with it. Have we all been put up as collateral?
we are all collateral, put up as collateral in 1933. Research it, and welcome to the matrix.
Don't forget the Nobel peace prize.
"when does that change"? cmon, seriously
I know right; didn't anyone tell them? This time is different.
Tyler, Please get rid of the jim cramer pop up adds!
I hate that asshole,and cnbc!
Firefox with Ghostery = No ads.
I'm almost tempted to turn off Ghostery and bang the ad a few thousand times.
Either of you notice any slowdown problems with Ghostery? I really liked it, but had to quit using it.
Still stickin' with NoScript.
It's all about AdBlock Plus....BITCHEZ!!!
Never seen an ad on ZH due to NoScript (but the best reason to use is it is security IMNSHO -- helps greatly to avoid malware-laden scripts). For those who don't get it: why devote any CPU cycles to ads?
lol...like minds..
Install ad-blocker. Recommended!
Tyler, now how do I get puke off my screen?
I think it's very funny. Cramer pays Tyler money, what an idiot.
Agreed - or Tyler, post a face of Redd Foxx from Sanford and Son!
It's funny how they are just now figuring it out like it's some sort of grand fucking enlightenment. We knew this shit years ago and we didn't need some "analyst" to tell us. The truth is fundamentals haven't mattered for five years.
"Deficits don't matter!"
Who needs legitimate fundamentals when accounting fraud is in full force ?
Alibaba shouldn't even be allowed to IPO in the USSA due to Chinese accounting fraud endorsed by the Big 4 accounting firms.
http://www.bloombergview.com/articles/2014-05-07/does-the-sec-have-the-guts-to-tank-alibaba-s-ipo
Citi hasn't gone bankrupt yet?
Yes, several times over.
Frankfurt issues first bond backed by Chinese currency | Business | DW.DE | 02.05.2014
Completely fucking flood the world with printed fiat to cover bad debts from insane decisions. Do everythning you can to decrease money velocity, that is keep it in the hands of a few in order to slow the inflation factor, then flush it all into equities so those few can initiate stock buy backs and call it profit for as long as possible. What could possibly go wrong?
Nothing that a few billion hollow-points can't fix.
fuk cramer
Arrest Janet Yellen.
Fuck Cramer. That fucker keeps attacking me from the ZH website. What's up dudes? Bitchez M'Fers.
Cramer's paying for those ad clicks so I say we give him what he wants. Let's run up his tab!
No No dont do it you will miss the brazillian bikinis
It doesn't matter waht post it is or what context - it's ALWAYS 100% right to say - "FUCK YOU OBAMA AND FUCK OFF US Government".
To NSA Spies reading this: "FUCK OFF".
This can't be true, every financial headline I read makes a point of telling me how the US recovery is on track, now that the weather's improving. Since the market's are booming, I have to take this to mean that all those economic stats are just lagging a little, and that SUPER FANTASTIC TIMES must be just around the corner. In any case, I hold the companies largely to blame - surely they have qualified accountants who can paint better pictures with their financials...
What is the US but just another open air PRISON on earth? So are all the other so-called "countries" (in reality Bankster COLONIES).
What difference does it make if we show up for work tomorrow? Our pay compared to what the guys at the top are raking in is a mere pittance. It's quite possibly just slightly better than being a slave.
Earn 30k p.a. vs 3.5 billion
What the fuck are we still doing to play along with their rules? The rules have changed in 2009 and this is now a free for all. Stealing is totally accepted. Let me have that Maserati or I'll scratch it.
About time we start making sense again.
yet more propaganda for the unwashed...zzzzzz
It’s changing? Baloney! The Fed moves the market and then explains why, anything will do.
The core of this mobster stock market casino is rotten, all the regulatory groups either controlled or bought off by its “owners”-- all structured to serve the cartel.
Ronald L. Ray writes in Proof: Markets Rigged: High Frequency Trading, Dark Pools and One Company’s Solution, based in part on the notoriety of how the big boys attempt to bury competition as revealed in Michael Lewis’ Flash Boys:
“Deception, distrust and dirty tricks are the long-standing rules governing many traders’ efforts to beat the other guy out of a buck. And in the past decade or more, developing technology has raised the practice of cheating to an art form. Foremost in the field is Goldman Sachs, which controls as much as 70% of stock market activity.”
You know, the GS that runs the Federal Reserve Bank of New York, the real governing power of the Fed – Janet’s boss?
The “hope,” says Ray, “for honest and just trading recently has been reborn in the efforts of...Investors Exchange (IEX)” that went live in 2013. Which perhaps is why GS "finally placed a significant trade" in the IEX in December.
US Government is he BIGGEST TERRORIST and Organized Crime organization on Earth.
Well, a part of that organisation, yes, true...but just a part...
I think the right term would be 'a sub-division' of that organisation....
You mean un-organized
Don't forget it's the biggest prepper as well.
Either Americans turn the tide, pronto, and sink the Fed or the elite insiders’ plot to destroy the United States to attain total global control will be finalized after these 100 years and the last chapter on freedom writ.
Of the powerful factors that “have contributed to the demise of democracy and accountable government in the US.” and created a "gangster state," says Paul Craig Roberts, “is the concentration of the US media in a few hands. During the last years of the Clinton regime, a formerly diverse media with significant independence was concentrated in five mega-corporations.”
In addition, says Roberts, “a corrupt Supreme Court has invented a “constitutional right” for corporations and oligarchs to use their vast financial resources to form a government of their choosing.
“The court ruled that it is merely an exercise of free speech for oligarchs to purchase the US government (Citizens United v. Federal Election Commission and McCutcheon v. Federal Election Commission).”
Continues Roberts:
“Private interest groups in the US are so powerful that they can purchase immunity from law. On March 27 a retiring Securities and Exchange Commission prosecutor, James Kidney, said that his prosecutions of financial criminals at Goldman Sachs and other giant US banks were blocked by SEC political appointees who ‘were focused on getting high-paying jobs after their government service.’”
As Ed Griffin says, the Fed using its created money (out of nothing) is able to buy power to control influence groups from the media to the politicians to the boy scouts.
"The conclusion is inescapable that the US is a gangster state," concludes Roberts. " Indeed, the US is worse than a mere gangster state. The US is a shameless exploitative tyranny.
http://www.lewrockwell.com/2014/05/paul-craig-roberts/gangster-state-2/
What The Fuck is a fundamental?
Is that some kind of charity party for mentally challenged, gay liberals who like to spend other people's money on shoes and hand bags?
.........Not that there is anything wrong with that.
fundamentals: a Jerry Lewis telethon to raise $ for the mentally handicapped.
Bullish handbags and shoes??
Bubbles appear at first as exponential then towards the end go parabolic?
Who's all in for the parabolic blowoff top? I am going to wait for confirmation of a parabolic chart then time the collapse.
On second thought...
Why should everyone argue over valuations in the stock market when the value of the currency underlying it is dubious?
because it is incorporated in the stock value?
whether it is dubious or not...
Are you saying that inflation and devaluation of currency is making the market just, "look" like it is rising exponentially?
Great Statement intric8! Look for more doubt on the currency if China does what may be necessary over some unexpected or at least unplanned debt. Xi may well have to raise a lot of cash quickly. He could sell his gold (No Way) OR, he could sell some Treasuries of other Countries!! Guess Who? There is a 70% probability! Good Call!
We already know how the evil guys play their game: "privatize the gains, socialize the losses" to the collective.
It is just too easy, unsuspecting and relatively unpainful hence unnoticeable at any moment in time to spread the losses to the collective over a long enough period of time. Add propaganda and most of the masses won't even know what hit them and who the real targets/causes are.
No thank you. I don't want to be forcefully included into ANY collective especially any one as large as a state (government). The bigger the collective, the bigger the target for socialized losses.
Yellen's POMO skank whores have actually allowed AMZN to fall well below the 10 week MA. Been a while. just a little signal along with the Russy suggesting the lipstick being applied to Spooz might be one of the last things left trying to maintain the perception of this Crameresque booyahhhhh utopia.
Cut to the chase, please.
Is their prop desk buying? or selling?
What is "fundy mentals"?
In South African English it refers to the word "fundi" which is an expert or guru in a certain subject. Mentals refers to someone who is absolutely Insane, so I guess Fundy Mentals is an expert in insanity…..hope this helps.
'When does that change?' Well, of course, 'never'. The sheeple will just keep playing the game and then when they get fleeced by the Wall St crooks next time, they'll demand their MyRA's etc get bailed out, by you.
Look for China having to raise serious money quickly for some domestic issues. They won't sell Gold! They may sell a lot of Treasuries from other countries! Guess who? 70% probability. Good possibility for more dollar damage.
As a "pro" trader watching this farce from behind my Bloomberg terminal, all I can smell is fear tainted with adrenaline, or perhaps it's the other way around. But the longer this market treads water here, the more I'm convinced we're likely to see a cascading sell off a la 2009. The reason we haven't seen it just yet is that Big Money hasn't been able to offload enough of their bloated inventory [read: P/Es of 650] to the next dumbest "investor". Once it has been determined that 1900 is not in the cards, OR, they attain 1900+, one of the big boys is going to give the signal and dump it - all of it. With a break of 1900, more dumb money will step to the plate convinced 2100+ is in the cards and the great distribution will be underway. If 1900 is not breached soon, I think the call is made to liquidate and katy bar the exits. Honestly, it's what I'd do.....
fundies don't matter where the books are cooked and where insider trading and moral hazard are basically unpunished.
Then there's the spying by the NSA [which gives all its raw data to Israel] and Israel [which does more spying than any one, then cries "antisemite" even when a Jewish writer at a Jewish managed and owned magazine writes an article about it: http://www.newsweek.com/israel-wont-stop-spying-us-249757 ]
Bitches.
They're not interested in your penchant for busty MILFs. They're interested in your patent applications and other confidential info.
The fact nutty-yahoo can actually deny Israel spies at all [hahahahahahahhaha] AND that the accusation is "anti-semitic" is batshit crazy, even for that murderous evil fuck.
After even established economists working in big banks publicly admit the degree to which the fraudulent financial accounting system has overwhelmed all other relatively objective facts about the economy, it is NOT a surprise that most of the comments posted on Zero Hedge add their insight how to BAD it is that Fraud IS the Fundamental.
The mainstream morons who had been previously successful while operating inside of the sovereign power's "rule of law" are now squealing as they gradually realize that Fraud was Fundamental, because fraud was symbolic robbery, and Robbery was Fundamental. The majority of middle class people were conditioned to believe in the biggest bullies' bullshit social stories, while that benefited them, in ways which they did not have to understand, in order to nevertheless still enjoy. However, the established systems of enforced frauds, where money is measurement backed by murder, had structures which required always more, due to the basic design of those social pyramid systems. Therefore, the runaway social robbery system has been working its way down through the list of easiest targets.
Since the vast majority of people are Zombie Sheeple, who continue to be misled by Black Sheeple, regarding what the "solutions" should be, we are NOT going back to any better dynamic equilibria between the different systems of organized lies, operating robberies, because the bullshit that somehow the economy was not an entropic pump is practically universally believed, because people want to believe that. Furthermore, they were deeply assisted to believe in a bullshit view of the "fundamentals" by being taught to think of entropy backwards.
Ironically, the longer people can stay within believing their preferred delusional fantasy culture, the better they believe things are. While the Real Fundamentals of the Economy ought to be based on relatively object facts of that operating as a general energy system, the paradoxical ways that works are that enforced frauds are what actually control systems, which are able to surround themselves with fantasy cultures, that there were other fundamentals which somehow explained how the economy worked.
The real fundamentals are that human realities are always organized lies operating robberies. Economics always fit inside of that overview, because economics is a science in the same way as warfare is a science. However, most people were able to operate inside of that reality by believing in the biggest bullies' bullshit world view, whereby everything could be perceived backwards to the way it was. Thus, the problem is that we never left the real fundamentals behind, but rather, most people were delusional regarding what the fundamentals actually were, because they stayed within the mistaken impression that the sovereign power that backed up the rule of law as a sane and stable entity, rather than merely going through phases of the rise and fall of systems of organized lies, operating robberies.
The more comfortably the mainstream morons are able to live within taking for granted the ways that the biggest systems of organized lies, operating robberies, are giving them nice little slices of the economic pies, then the less they care to think about the bigger background facts, and then, the more able they are to continue to believe in some "nice" sounding "fundamentals" regarding what the economy is supposed to be based upon.
There have been a series of articles recently in Zero Hedge about how the American middle class have recently lost their status as number 1 in the world, while the Canadian middle class have risen above them. Therefore, more mainstream American morons are being forced to start thinking about how and why things are going wrong, and thus, the relative rise of the American Black Sheeple exhorting the American Zombie Sheeple to go backwards to better "fundamentals." Hah! As if more intensely believing in the same old-fashioned bullshit is really a workable "solution!"
Meanwhile, in Canada, the mainstream morons there are more content, and therefore, less interested in thinking about what is really happening, regarding what are actually the fundamental processes, and how those processes will eventually turn against them too, in ways similar to how they have turned against others.
http://www.youtube.com/watch?v=HpYHrbz6V4c#t=11
OUTRAGEOUS Canadian Base Currency Expansion
- Mike Maloney
Proportionately speaking, compared to population size,
Canada has been creating three times as much money
as the USA during the ~previous decade, on another
exponential growth curve, which means that they
were, proportionate to actual population sizes,
creating even more fiat money than China!
No wonder Canada is still inside its bubble
that some 'experts' expect may continue
for another year, or so, into the future?
And no wonder the social polarizations
were getting dramatically worse there.
However, since an overwhelming vast majority
of Canadians WILL deliberately ignore all that,
and the main "opposition" offers even WORSE,
there is no practical point to learning about it.
And Canadians need to keep in mind that of the world’s total military expenditures of $1,756,000,000,000 in 2012, US taxpayers picked up $682,478,000,000, or 39%, of the tab – 4.4% of US GDP.
Canadian taxpayers contributed $22,600,000,000, or 1.3% of their GDP; Ukraine's less than $5 billion (2.7% GDP) on its military was counterbalanced in part by the $5 billion (visible) from Victoria Nuland et al., over the past two decades to subvert Ukraine’s government.
http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures
Speaking of the military, Radical, this is the message I get when I go to Jim Quinn’s The Burning Platform:
TBP UNDER ATTACK
To all the TBP shit throwing monkeys, I have a few messages:
“I shall return.”
“I have not yet begun to fight.”
“I should have ducked.”
I am currently hunkered down in a bunker beneath TBP Central as predator drones circle overhead waiting for me to show myself. The website has been under a relentless denial of service attack since Thursday afternoon. The site is being inundated with over 3 million hits per day that make it impossible for anyone, including myself, from getting onto the site.
I’ve been at the mercy of incompetent IT help desk drones from my server company who have failed to solve my issues. They are unable and unwilling to take the necessary steps to protect my site from attack. I have been put in touch with some very helpful, like-minded people, by fellow liberty loving bloggers who believe in free speech and dissent.
I’m currently having the site migrated to a private server run by someone who values the truth and believes we can’t let the evil bastards win. We should have TBP back up and running sometime this week. If you think I was pissed off before, wait until I come back. Anyone who would attack my site for this long must not like what I have to say. That means I’m hitting a nerve. Ideas matter in this world. If we can change enough minds, we can take this country back. The establishment will continue to try and censor the truth and subvert any website that dares to challenge the status quo.
I’m just a guy with no IT skills, limited financial resources, and a keyboard. I won’t be surrendering to these bastards without a fight. But in the meantime, in the immortal words of Warren Zevon:
I'm a desperate man
Send lawyers, guns and money
The shit has hit the fan
http://www.theburningplatform.com/
Thinker here. I put up a temporary site so we can gather and share info on what Jim's going through: http://temporary-burning-platform.tumblr.com/
Yes, Jim Quinn does matter and Jim Quinn is a threat to the status quo. He has some of the most insightful revelations and materials on financial and social subjects unavailable anywhere else. And he’s well-known to Zero Hedge readers by the material he provides.
I will be very interested to know what he has to say upon his returns. Interesting that this comes along at the same time Drudge and others are being threatened:
FEC chair warns that conservative media like Drudge Report and Sean Hannity face regulation --- like PAC |Washington Examiner | MAY 7, 2014
Paul Bedard writes:
Government officials, reacting to the growing voice of conservative news outlets, especially on the internet, are angling to curtail the media's exemption from federal election laws governing political organizations, a potentially chilling intervention that the chairman of the Federal Election Commission is vowing to fight.
“I think that there are impulses in the government every day to second guess and look into the editorial decisions of conservative publishers,” warned Federal Election Commission Chairman Lee E. Goodman in an interview.
“The right has begun to break the left’s media monopoly, particularly through new media outlets like the internet, and I sense that some on the left are starting to rethink the breadth of the media exemption and internet communications,” he added.
Noting the success of sites like the Drudge Report, Goodman said that protecting conservative media, especially those on the internet, “matters to me because I see the future going to the democratization of media largely through the internet. They can compete with the big boys now, and I have seen storm clouds that the second you start to regulate them, there is at least the possibility or indeed proclivity for selective enforcement, so we need to keep the media free and the internet free.” …
http://washingtonexaminer.com/fec-chair-warns-conservative-media-drudge-hannity-face-regulation-like-pacs/article/2548163
Thanks for the link, TBP'er.
Yeah, JR, I read about that on the Doomstead Diner Web site, some of whose people used to be partners with Jim Quinn.
Quinn's Web site now says that "It's Alive." However, it is obviously going to be getting harder and harder for alternatives to survive the increasing suppression of the Internet. The survival of any freedom on the Internet will be one of the most important symbolic battles in the foreseeable future, for as long as civilization continues to be able to sustain such a phenomenon!
When the stock exchange is totally dissociated with the real economy it is supposed to represent; when the free money ride by the CBs feeds the beast that led Maddof to the pen; while we all celebrate what the CBs do as defending the economy, all the while they truly be Madoff's mad, king sized clones; we are in a topsy turvy world and Citi is the prime example of those happy few whom these CBs defend, and whose money they revere like the Holy Grail.
Not us the people
The further down the road we go the harder the fall when Rome of WS burns.
Unless they cross the Rubicon once more.
Not as many suckers in this rigged market as last time.
Poeple are beginning to learn.
A casino is no place to plan for the future.