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This Is What The Entire World Frontrunning The ECB Looks Like
The market has had nearly two months in which to frontrun the preannounced ECB QE, and as DB summarizes "record European equity inflows this year ($30bn) have been driven by both domestic and foreign investors."
And this is what record central bank frontrunning - with Draghi not yet even lifting a finger to buy bonds (which as we reported last week may not even be there) looks like:
Leading to the following valuation disconnect, which doesn't need any comment.
And this time, with every central bank now throwing everything it has at the problem as direct CB interventions in 2015 are set to surpass all records (yes, including Lehman) it really is different.
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Apparently, the really is a sucker born every minute.
Here, hold this bag for me...
Buy the bag manufacturers. Their stock will be rising.
Better yet. Buy the knock-offs...better margins. ;)
Just let us say: it is in the bag.
The problem is that nobody ever wants to SELL their stocks. If one had bought S&P back at "666" they would be up a tidy penny at "2100" today... but one has to "cash out" in order to realize those gains. But it doesn't look like anyone is doing that - they are just buying MOAR!!
That's right, nobody has made a dime until they sell and realize their gains, and they realize them in the form of fiat, fiat which they will need to find a home for. So, anyone who does cash out is stuck with the problem of what to do with fiat. Some have plans for it, like a condo on the beach or something like that. Others?
Well the USD is up HUGE against other currencies and against gold and silver. ... just sayin'...
the cleanest shirt in the dirty laundry
The least smelly piece of poop
CB's are rocking the lifeboat side to side with increasing vigor! surely if they rock their hardest the liquidity will stop it from sinking...
Selling at the higher price requires the greater fool, yes? While I do believe in the laws of supply and demand is it possible to run out of greater fools?
is it possible to run out of greater fools?
No, compliments of the USSA Department of Education. We are creating a new group of greater fools everyday.
So, if the bonds aren't there for the ECB to buy, WTF is everyone buying?
And if there is so little liquidity, perhaps that explains why prices are reacting this wildly, which also suggests there might not be much volume behind the buying.
If Draghis jawboning got the assets bought, I guess that saves him the trouble of firing his bazooka. Well played.
If they sell, they have to buy more bonds at a negative rate or put the funds into accounts with negative rates. The other option is to buy MOAR stocks. Perhaps that explains why the EU member stock indices are hitting new highs.
All you have to do is margin those stocks and walk. No taxes on cap gains and good luck finding me in the backwaters of the Earth.
Sure, I will hold it for another 10K Dow Points. No problem.
Calling the top? Okay, we will hold you to it.
Yeah, 10K Dow points on the DOWN side you fucking moe-ron!
Yep, I know a lot of people saying that when the Dow broke above 10K back in 2010 and 12K in 2011 and 14K in 2013 and 16K in 2014. But this ime it will be different. /sarc
Yep, history teach us that everything last forever.
/sarc
You will probably be right on this one. Consider that the stock market is priced in nominal terms, and it's a lot easier to understand.
Yep, you will be right, now about the "price" of that loaf of bread...
"winning"...
Confetti is really popular.
Fuck making it rain, Make it hail! Now there's a party!
Getting close the same amount of central bank interventions since Lehman? Takes a lot to keep pushing that string.
The only lesson they learned was to keep it quieter.
Thanks to our Fed for this template. The road to Hell is well-paved nowadays.
Its called a "team effort" and its in a good cause : Keep the Nasdaq on its ballistic route! As thats a sign of the times to come...
When interest rates hit -3% on G-bonds you know the Oligarchy has to fund government projects based on unlimited money supply it controls. No other route once the consumer base is made bankrupt.
It'll then signal the end of the banker's cabal and the return of governments. Those governments who ONLY live by being crony to a frayed and old paradigm will then fall with the bankers. As the asymptote is a relentless wall.
It'll occur all over the world first EXCEPT in USA where the Oligarchs own the private FED. Also, via the City and the petrodollar skitty-titty they own the UK government in London town. But for how long? The last citadel to fall.
So, today all banks fight to save financial armageddon by printing "easy CB money". Its in their crony interests.
Tomorrow, when thieves fall out, " they" --the politically wiser ones-- will nationalise (or CB control) all private money lenders playing at the casino and that will allow the world to avoid WW3.
But, it won't solve that OTHER problem : peak energy and RM limits and eco destruction of awesome magnitude.
That is a bigger challenge than the petrodollar oligarchy scam of ballistic paper empire now heading for a rough ride.
As where the growth is there is need for investment even in paper money as long as the oligarchs who hold the banks in their hands play along.
The new Medicis! Until their banks go belly up and state picks up all the chips on the casino table.
That's how it finished during the real Medicis era! They lost, the nation states won (over all Italian city states, the most innovative oligarchies of that age, as well as over the Habsburg universal empire, the equivalent of the US political cum NSA bureaucracy of today's Spanish Inquisition).
The Medicis ALWAYS allow the world to change, just like Rothschilds made Pax Britannica hegemon for ONE century; and JPM/Roths did the same with the Greenback and subsequent Pax Americana age of today; until they become unnecessary under it, and this shows in their diminishing returns for over leveraged imperial plays...
Its what going to happen to the US oligarchy that built this current neo-Medicis empire.
you could factor in what world wars are for, depopulation is certainly one of the reasons, and the future holds the super massive cluster .... of a depopulation wave that goes along with their future model they are working towards.
Now that they are chasing negative interest rates the future is hopelessly bright....
All that money shooting around like a loose cannon on the deck of ship. I seem to remember a quote from the First Great Depression about that.
MOAR GEWBERMINT!!!!!!!!!!!!!!!!
In keeping with the times, shouldn't that be "MOAR GRUBERMINT"?
I already have my "NASDAQ 5000 - I bought at the top!" t-shirt
Pretty amazing the Central Banks are even playing in this game....why???? Just to get mike time...TV interviews...stardom...
it's the leather
That European inflow graph looks exactly like an out-of-control process control loop : the peaks and throughs are becoming larger at every cycle. This will end BAD.
This will end BAD.
Yessir. Yes, it will.
Moar IPOing of worthless companies are needed to complete this financial fantasyland.
IPO some more food vendor trucks for 100's of millions each.
yeah....I love Roach Coaches
But they have gourmet grilled cheese sandwiches.
It's a joke when we call these markets, markets where trading is all influenced by built in Manipulation by Central Banks. Since 2008, we have undergone one of history's epic front runs, the front run of years of Fed QE, intervention and money printing.
If ever there was a case for Mass Hangings . . . .
Every morning i wake i spend 20 minutes or so searching for a door to a parallel universe that resembles reality.
Nothing left to buy?? What about gold.... .
True dat, but I think this time around folks actually want the metal delivered. Trust is dissolving fast.
cui bono? every fund manager charging fees on percentage of AuM, every bank with a prop or swap book, which is pretty much anyone in the square mile equivalents across Europe.
who loses? anyone saving for a pension or paying insurance, which is pretty much everyone on the high street, same as for the US.
Like an ice-cream truck in S. Carolina in Aug., gotta anticipate where's it's gonna be to get the goodies
So the USD rally is over and the EUR rally is beginning? I don't think so...
They will not let a market crash happen under dear leader.. All good communists stick together...
https://www.youtube.com/watch?v=4RhFvwe7xrc
Feudalism & Gravity
As you can see, the nation/state economy, as measured by bank, runs exactly backwards, because the majority runs backwards, historians looking backwards to project the future, assuming that tomorrow will be much the same as today and yesterday, until it isn’t. Funny, giving free money to government confirmed monopolies and then increasing the minimum wage increases rent relative to wages, because none of the ‘money’ is earned and all gets pissed away on make-work, discharging real wealth in growing boom and bust cycles.
Yellen has no idea who to give that money to in order to reboot the economy, and Wall Street is the tail wagging the dog. Another restaurant with 65 units and no growth record shouldn’t have the same valuation as one with 3000 units and a growth record, but, by Fed magic, directed margin leverage, it does. Apple distributes i-phones in a positive feedback loop with credit, to the end of capital control, a function others do much better, but the critters are all in because they are all in to Silicon Valley as the prototype for the future, increasing income inequality and collapsing infrastructure.
When you go into that office, you are a bull in a china shop. Don’t touch anything by accident, until you find the source of the common, the critical path. With a little experience, you will identify the gatekeeper in question the first time across the organization, every time. The rest is just algebra, and there are many mathematical tricks depending upon the application to reduce. After that it’s just prepping your exit, to be destroyed in the empire world.
The majority is reflected out at the mirror, not absorbed into the future, because it doesn’t care about the future. Black voters don’t vote Democrat 90% of the time because they expect a democrat in DC to help them, and they do not represent all blacks. All majorities view their world as a game of Survivor Island, regardless of social event horizon. A moment of thought tells you that equal rights and affirmative action puts real marriage at the greatest possible disadvantage, which is exactly what you don’t want, unless you want distillation to quantum advance.
What you were taught about the Great Depression and WWII in History books is backwards, like everything else in the empire. America, like all nation/states before it, has defined work as stupid over time, a cost to be avoided by employing others. Computer Science is just another form of work, with your mind instead of your hands. Forget the engineering. Similarly, you don’t need a physical brake for Maglev, but you might not want to let the manufactured monkeys throw a wrench into it.
Welfare is like a vice from the bottom and top. If you think about a bucket of water, you will see that pressure is felt from the middle out. Fusion/fission works the same way. The critters only want to see gravity, to confirm themselves. Think about what you learned about investing. Have your children when the majority fears to do so and stop when the majority no longer fears to do so. Feudalism doesn’t work, has never worked, and will never work, but it has its uses.
Family Law is the problemsolution, the law following behavior, the path of least resistance, creating resistance, heat loss, in time. You are not going to penetrate that mirror by joining the herd, or preying upon it, on a ponzi escalator of slave and master steps, all heading to a tax cliff, the empire fountain of automatons. As a young person, you want to focus on jumping time, because once you are married with children there is no time for reflection. Do as the Romans do, with no more than 10% of your time, as habit.
Labor gets married, has children and goes to work. The empire gets a job, marries power and has children only to preserve the chain, surprise. Priorities, trust, is something you earn, only by doing. Assuming that what you see is the universe is ridiculous. The stupid forces of SMART technology will always be arrayed against you, but only in the domain of empire.
A few of you have made it through the Fed’s filter and have an interview coming up, to enter the 1%. The lives of all kinds of people, whether they know it or not, most of whom view you as the enemy, cutting the lead off and placing it in back for propulsion, to maintain the status quo, will depend upon you. What do they want to see?
I was raised of, by and for Navy, but you will have your own perspective. Respect the work and the gate will present itself. Just step forward, with faith earned by doing, when everyone else steps back. The police state is only the hero on empire TV. Building the communication bridge isn’t for everyone.
JBTFDYFI;http://www.zerohedge.com/news/2015-01-29/janet-yellen-saves-day-stocks-s...
#motherfuckingwinningmotherfuckers