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How The Fed 'Broke' The Markets (In 2 Simple Charts)
The next time your friendly, local, asset-gathering, commission-taking, wealth-transferer explains that "you should BTFATH because stock valuations are supported by the fundamentals" - show them these two charts.
Now - what do you think will happen when the Fed turns off the QE tap?
Source: Citi
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Broke the markets or Broke wind? which is worse?
It won't matter to me cause I got 3 years of fuel saved up, and that's a long time left to produce too.
The Fed already owns 25% of "The Market" but, as Bernie Madoff discovered, the wonderful thing about Ponzi's is that without the flow, the game is over. We should fully expect more QE, perhaps they can buy the whole "Market"?
The covers have blown off the market and now we see behind it is the aristocracy. Success depends on gaining the favour of the nobility.
http://www.cduniverse.com/productinfo.asp?pid=8511061
Turn down the QE tap, then turn up the non-GAAP accounting tap and the buyback tap . Fixed.
Welcome to the new normal.
<One look at the above charts and it is clear they won't cut off the QE tap. It will continue in some form or another.>
Explains the ramp up in preparations for "civil unrest".
Veils of illusion and dilusion
Machinations of minds that are lost. Say what? Minds that are lost. Sort of like what the the Tibetans have documented in "hungry ghosts". Sad really. When you look at a world without colour.
Oh well. Going to rake the lawn, feed the birds and do a cleanup on the fish pond.
I offer an apology DC. But what i said was right. You speak to masses of idiots and spend 70000 words stating simplicity that could be accomplished by going out and actually appreciating life,
I am frustrated by the disconnects. And million word guidelines of analysis do nothing to restore the simple fact that homo sapiens are fucked.
They all float down here. [/Pennywise]
Forever.
What I think will happen when the FED turns off the QE tap is that Brussels will BTFD.
That's why earnings are jobbed. That chart is nasty.
Gay sex will happen
With or without hamsters?
IMO The Fed is doing a test period now.
They are still jacking up indexes and think they can just do that for awhile.
I see a worse case of continued B.S. no increase in interest rates and the same old stuff next year.
Pretty soon BTFD.
Those charts look like a couple of banksters going down the rapids in a canoe... They keep telling each other not to stand-up or they'll tip the canoe over, and just sit there, like a couple of retards BTFD.
Don't get the BTFD strategy.
What happens when the D goes still LOWER than your B price?
Still just market timing, with a new name.
The D never goes below the B. That's what the Yellen is for.
Errrrrr, correction: The D never goes below the B until it does. Which will probably be an hour after closing time on the Friday afternoon of a long weekend that precedes a glorious bank holiday. The alternative is that there will never be a dip. Instead, the price of everything else will just go up a lot faster than any equity gains.
So what is it to be - Dip or hyperinflation? Imagine walking into a casino with a rigged Roulette wheel. When the majority of the money is on red, black turns up. When the majority is on black, red shows up.
Q. What will show up in the future - black or red?
A. The opposite of where-ever you put your money.
Or if you do manage to hit a winning streak by betting against the majority, you will be picked up on a technicality, forced to lose, escorted to the front door and all the while the average punter will just assume that you deserved to be booted out because either you are a cheater or a trouble maker or both.
So what do you do? Don't play in the casino. Go bowling instead.
Or shooting. Or do a survival course. Learn how to travel light. Hell, I don't know. Curry favour with the nobility? (Warning - they'll load you up with debt and then pull the rug out from under you the first time you piss them off.)
They're turning off the tap at $10 Billion/month.
I wonder what they are buying and not disclosing. Everything?
Ask Belgium...
it is not called qeternity for nothing. the next chapter is called pallets of cash and wagner. i love the smell of cash in the morning.
Foo Fighters - Breakout
http://www.youtube.com/watch?v=4eNBM17tkjI (4:18)
They will never turn off the tap. They will tell us it is off but it will never be off... Until they want it off. Now eat your peas and
get on the train
USA has the best Hopium on the planet.
To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong. An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position.
For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...
It is quite amusing that most zero hedgers/long time bears (This includes me) think the Fed will never "turn off the tap". Lets play devils advocate. The Fed is standing ready to screw the Bears twice. First on supporting the market by directly purchasing equities (this has been proven) and now by tricking the bears into BTFD as they flush it. Have you forgotten tge objective is for "them" to steal all the assets of the working/whats left of middle class?
Now is the time for fleecing. THEN the Fed to the "rescue" with Q Anabolic Steroids E.
Sadly the wealth-transfer agents (Sell-side and Media) can't read charts or balance sheets. That's the essence of being a 'BullTard'. Take a bow ye who know who ye are...
Same thing as when you turn off the Anti-Gravity force on the Enterprise: Shit goes flying.
Arm Photon Torpedoes, Sulu. And I know how much you like those things, Sulu. -Kirk out.
A premonition before dinner
There will be a little nervousness on Wall Street until the boys figure that when the Fed turned off the QE tap, they simultaneously turned on another tap (let's call it the ZH tap) which the Fed, as in most of its dealings, has the option of telling everybody about or -- as in this case -- NOT.
It's a Fed created bubble...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
ZH is killing it today! Spot on!
wow. scary charts. really scary charts.
gee i do love really good chart porn.
kudos Tyler(s).
QE till fiat burns in hell.
And it won't be hot enough to be called "Hell" unless there is lots and lots of fiat to burn. How many 1s and 0s do you need to make an inferno?