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Financial Stability?

Tyler Durden's picture




 

As a helpful hint for the Federal Reserve - who appear concerned about "financial instability" - we thought the following chart might suggest where to look for 'irrational' investors...

 

 

Everything is instant momentum chasing - starting at the lowest time frame in the HFTs and leaking out to humans - which is producing this chaotic market which is anything but natural.

As a reminder, the Fed has signaled its concerns of complacency and investors chasing markets higher because they have been going higher... will the Fed inject some volatility back into world markets this week?

 

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Mon, 06/16/2014 - 15:10 | 4862237 papaswamp
papaswamp's picture

Decouple, recouple bitchez?

Mon, 06/16/2014 - 15:16 | 4862264 Say What Again
Say What Again's picture

"will the Fed inject some volatility back into world markets this week?"

Is this a trick question?

The Fed has been manufacturing volatility for years.  They just have not yet released their "product" to public.  They're still doing the final Q&A testing.

But be patient, its coming soon.

Mon, 06/16/2014 - 15:41 | 4862382 lordylord
lordylord's picture

Stop, stop, stop, stop writing articles like this.  The goal of the Fed is NOT to keep the economy and the markets stable.  The last 100 years is a testament to that.  The goal of the Fed is to confiscate all wealth through non-direct means and transfer it to the State. 

Mon, 06/16/2014 - 15:55 | 4862467 gh0atrider
gh0atrider's picture

Bitcoin will provide us the most financial stabability we have experienced in centuries.  It has a known and steady rate that we can accurately build real economies around.

Mon, 06/16/2014 - 16:18 | 4862548 lordylord
lordylord's picture

"Bitcoin will provide us the most financial stabability"

My bowels are pretty steady and regular.  Can you build a real economy around that?  You need to stop worshiping Bitcoin.  It has some good uses, but I doubt it will ever be taken all that seriously.  If you want a real economy, you should want real money aka gold.

Mon, 06/16/2014 - 16:44 | 4862637 gh0atrider
gh0atrider's picture

Every gold backed scheme (yes, scheme) has lapsed back into a paper ponzi system.  gh0atrider believes the kids already see the utility and brilliance in Bitcoin.  It may take a few years for "sophisticated investors" and Zeroheads a to catch up to kids, geeks and hackers.

Mon, 06/16/2014 - 15:11 | 4862240 yogibear
yogibear's picture

What a recovery! A guy in his 20's just rang the doorbell willing to work for food.

The end of the Federal Reserve's printing game will be ugly.

Mon, 06/16/2014 - 15:17 | 4862274 DetectiveStern
DetectiveStern's picture

I cant wait. The short term pain will be worth it when we can re-create the political/economic systems to work for all.

 

That's not to say capitalism or communism etc just not the current plutocracy.

Mon, 06/16/2014 - 18:44 | 4863079 BringOnTheAsteroid
BringOnTheAsteroid's picture

After the chosen ones have their short positions leveraged to infinity the rug will be pulled by the Fed. Seems inconceivable that such a system could ever exist in a democracy but then again it's marketed as a democracy. We keep calling this the greatest wealth transfer but the final act is still ahead which will probably generate the most spectacular returns for the chosen, in financial market history.

Mon, 06/16/2014 - 15:22 | 4862300 papaswamp
papaswamp's picture

Hey I've seen the reincarnation of the +50 yr old pizza delivery guy...in the wealthiest county ( median household) in FL. Its coming kids...again.

Mon, 06/16/2014 - 15:16 | 4862270 LawsofPhysics
LawsofPhysics's picture

Once again, for those slow learners...

There is no monetary or political solution to resource scarcity

hedge accordingly.

Mon, 06/16/2014 - 15:18 | 4862279 craus
craus's picture

At least Wednesday, when fairy godmother speaks, we know the market will go up in her honor as always.

Mon, 06/16/2014 - 15:24 | 4862313 buzzsaw99
buzzsaw99's picture

it was barzini all along

Mon, 06/16/2014 - 15:27 | 4862327 youngman
youngman's picture

I just heard the fed is going to charge a penalty for selling your bonds....to stop a run on bonds...lol

Mon, 06/16/2014 - 15:28 | 4862328 Dr. Engali
Dr. Engali's picture

The "fed injected volatility" purpose is to set up bear traps to squeeze this pig higher. 

Mon, 06/16/2014 - 15:36 | 4862365 AccreditedEYE
AccreditedEYE's picture

Exactly.

Mon, 06/16/2014 - 15:38 | 4862377 Eyeroller
Eyeroller's picture

If the FED really wants to inject volatility, then all the Ponzi Munchkin has to do on Wednesday is give another "6 months" blooper like she did in her first presser back in March.  The VIX jumped and the markets had a hissy fit.  Ever since then Ole Yellin has been at pains to walk that first blooper back.  Look for more of the same.

Tue, 06/17/2014 - 07:07 | 4864278 AdvancingTime
AdvancingTime's picture

It seems no suggestion of weakness no matter how subtle can exist because it may begin to unravel the already fragile consumer confidence. They don't want to enter the weekend or a holiday with a bad market. While I think the market is way to high and distorted it is difficult to time a top. More on the reason for bears to be cautious in the article below.

http://brucewilds.blogspot.com/2014/04/bears-have-little-reason-for-conf...

Mon, 06/16/2014 - 15:28 | 4862331 economessed
economessed's picture

When you're blowing bubbles, sometimes you get some real wobbly monsters who hang there in mid air, and other times you get a lot of small ones that float up and around before they break.

Mon, 06/16/2014 - 15:41 | 4862395 Eyeroller
Eyeroller's picture

I vote big and wobbly.  And when they pop everyone gets sprayed.

Mon, 06/16/2014 - 15:38 | 4862356 pakled
pakled's picture

Note: TruthDig.com has a fine Chris Hedges essay today that makes an excellent read. In a tribute to Noam Chomsky, Hedge's performs an articulate summary of the course of civiization since the industrial revolution.

 

Here is an excerpt:
We live in a bleak moment in human history. And Chomsky begins from this reality. He quoted the late Ernst Mayr, a leading evolutionary biologist of the 20th century who argued that we probably will never encounter intelligent extraterrestrials because higher life forms render themselves extinct in a relatively short time.

“Mayr argued that the adaptive value of what is called ‘higher intelligence’ is very low,” Chomsky said. “Beetles and bacteria are much more adaptive than humans. We will find out if it is better to be smart than stupid. We may be a biological error, using the 100,000 years which Mayr gives [as] the life expectancy of a species to destroy ourselves and many other life forms on the planet.”  

The essay goes on to catalog how well the power elite has adopted to controlling the masses ever since forcing the populace off the farm and into the workplace in a form of slavery known as 'wage labor'.

 

 

Tue, 06/17/2014 - 07:04 | 4864273 AdvancingTime
AdvancingTime's picture

Just over a year ago I stumbled upon a blog on WordPress .com written by Gerry Spence who was born and educated in the small towns of Wyoming where he has practiced law for almost fifty-five years. As a  nationally known figure in the legal system Spence  has spent his lifetime representing and protecting victims of the legal system from what he calls The New Slave Master: big corporations and big government. Below is a disturbing take on society put out there by Gerry Spence and the idea that we have become no more than slaves.

http://brucewilds.blogspot.com/2012/02/we-are-all-slaves-interesting-tho...


Mon, 06/16/2014 - 15:35 | 4862359 AccreditedEYE
AccreditedEYE's picture

It is summer trading and almost quarter end. Fundamentals are tied up and stuffed in the trunk of the car that Central Banks are driving. Don't kid yourself into thinking this market goes in any other direction than "gentle drift up".

Mon, 06/16/2014 - 15:40 | 4862391 sandhillexit
sandhillexit's picture

And all three humans who still work in the trading room are in front of the TV feed watching the World Cup.  great time to pick off the mispriced LATAM crosses.

Mon, 06/16/2014 - 15:37 | 4862371 disabledvet
disabledvet's picture

Dollar nuclear detonation dead ahead.

Can't wait for the War Crimes Trials.
"Nuremberg dead ahead."

Mon, 06/16/2014 - 15:46 | 4862423 pakled
pakled's picture

"Dollar nuclear detonation dead ahead"

Not a dig on you at all friend, but I don't really understand how so many ZHr's can make such declarative statements. ;>

 

I wish I had such certainty in my beliefs. Yeah, the dollar should detonate at some point. But when? How? To what degree? What position is the dollar domino in the grand chain of events? We are traversing an uncharted ocean in another dimension where traditional navigational tools are useless.

 

Next stop: The Twighlight Zone (hint: we are at the next stop).

Mon, 06/16/2014 - 16:04 | 4862503 Cthonic
Cthonic's picture

 "Next stop: The Twilight Zone (hint: we are at the next stop)."

Sounds about right, considering that the last stop was The Outer Limits.  Odd how we keep shuttling between the two...

Mon, 06/16/2014 - 18:14 | 4862976 FranSix
FranSix's picture

A very good example would be to follow the history of the British Pound, if you want to ascertain whether we are in for a "Roman" collapse or a "British" collapse, and really how unbelievably long the devaluation of the pound took:

http://coppolacomment.blogspot.ca/2014/02/the-long-decline-of-great-british-pound.html

Mon, 06/16/2014 - 16:39 | 4862615 Notsobadwlad
Notsobadwlad's picture

Question: If you had the ability to create all of the fiat currency you could ever possibly use and had a choice of not creating fiat currency and creating massive amounts of fiat currency and use that fiat to purchas controlling interest in all of the world's most productive assets, what would YOU do?

Well, that is not a fair question, because it questions YOUR morals and ethics.

The better question is: What would the world's controllers of all of the world's central banks do?

Tue, 06/17/2014 - 06:58 | 4864267 AdvancingTime
AdvancingTime's picture

Interesting theory! It calls into question what anything is worth but at the same time we should highlight the difference between tangible and intangible investments. What we are seeing happen is very evil.

Tue, 06/17/2014 - 06:56 | 4864268 AdvancingTime
AdvancingTime's picture

 What do stock markets around the world have in common with "girls gone wild" the video of college girls on spring break? The answer is both are crazy out of control. We have grown very complacent as money around the world has continued to flow into intangibles and promises.

Currently the market is all a twitter and locked in a "greed and stupidity loop." The loop can be explained as follows, stocks are rising so why get out, not getting out is causing the stocks to rise. When stocks do pullback it is a buying opportunity. Yes, we are indeed experiencing a double down and let it ride mentality. I don't have to explain the greed part. More about this subject in the article below.

http://brucewilds.blogspot.com/2014/06/stock-markets-and-girls-gone-wild...

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