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Stocks Bounce But Credit & Crude Continue Slide
Hope abounds once again this morning. Stocks are up (albeit off their overnight highs) thanks to AUDJPY and the Ruble is 'stabilizing'. However, the two crucial factors for recent volatility - crude prices and credit spreads - continue to slump. WTI crude is back below $55 (trading as low as $54.60 this morning) and HY credit spreads have pushed back to their wides around 406bps (disagreeing with stocks modest bounce).
Crude continues to slide...
As credit spreads widen...
But stocks want to rebound for now...thanks to AUDJPY
Well it is FOMC Day after all.
Charts: Bloomberg
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Stockz r up!
Thanks to Bubblez R Us, aka the United States Federal Reserve.
We all scream for equities.
Two times in the last week the Fed has ramped the heck out of stocks in the morning only to lose it by EOD. The BTFDers are getting nervous. I they can't pull off a V bottom soon there will be a real exit into no liquidity.
Here. We. Go. Again.
They even ramped up oil futures on Monday, and the rally didn't last.
That must have been very confusing for the BTFDers.
The sheeple are starting to doubt the Fed.
Very interesting to see what the Ponzi Munchkin will say today, although I will wait for the transcript because I can't stand to hear that bitch speak.
In a nutshell, the Federal Reserve - an unelected, unsupervised, never audited private entity, will now proclaim something which will affect US and World stock markets. Markets where perceived gains in stock value are a sign of economic "health". Where taxpayer money, without direct oversight, is used to prop up the whole circus tent.
Got it. Can't wait for the proclamation.
When does the thing called "reality" kick in?
Fuck this.
We're starting to get a dose of reality with oil's slide. The Fed can't control that. For the first time, the BTFDers see that the Fed is not omnipotent. Once the muppets no longer have faith that the Fed can prop the markets up, then reality will kick in.
Like Pavlov ringing the bell. Except one time it wont be food but a butchers knife.
So France downgraded Friday, Efsf downgraded last night , France are 20% of that and today French Bonds NEW ATL 0.868%
This is torture...
Dick Cheney would disagree with you.
Feinstein has gotta be digging this crap.....stocks have been berry berry good for her.
She's also a closet gun nut.....don't tell anyone.
Whatever his politics may be, and I could care less, Dick Chaney looks like an angry, resentful shrivelled up old asshole. I think his transplant came from the fucking Grinch.
He's not the guy I would trot out in front of a camera to sell anything. Well maybe septic services or rat poison, but it would be limited.
BankGap,
Could not care less. This is a message from the grammar police.
Soft landing ad infinitum
The CNBC syndicate propaganda organ has not succeeded in sucking enough dumb money in yet before the syndicate pulls the plug and leaves the donkeys holding the bag.
I'm starting to think this whole "Crude is going to $0" craze is some epic head fake.
I knew we should have stored all those clunkers that we paid cash for
QE4 by next June.
18 trillion reasons Fed will never increase interest rates.
Can't Congress say 'no' to QE4? Pardon my ignorance, but I have read lots of articles that say Congress has the power to audit and even break them up. Would the Ponzi Munchkin have to get permission for another QE? I know there's not much difference between R and D, but for the most part, Rs seem to be against QE.
This would make a perfect fall guy scenario: Stocks look like crashing in early 2015, Yellen proposes QE4, Congress says no, stocks crash, then Republicans get the blame.
Have no fear, they will get this shit-show up by taking Vol to poundtown til close on Christmas Eve close.
When you put all your eggs in one basket, the result is a fragile system built on hope. There is nothing else left but faith in Fed. The Fed has to try to restore confidence that limitless money printing cannot fail. With stocks plunging and housing continuing downward, millions will be left with nothing. No savings, no jobs and no hope things will ever get any better. The oligarchs will go to great lengths to preserve social calm. They don’t want hundreds of Fergusons. If people lose their McMansions, SUVs, and toys, there will be big trouble ahead. The ‘New Normal’ is now almost 100% dependent upon Fed intervention and largeness. People must be led to believe moar debt is good, keep borrowing and spending. FedEx results say the party is about over. A month ago they were falling all over themselves making insane predictions of shipping growth. “The lemmings will buy more than ever this year and we are hiring thousands!” Been in a mall lately? Doesn’t even look like X-Mas. Maybe people will finally stop shopping for crap they don’t need and can’t afford? We can only HOPE.