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Hedge Fund Manager Fears "Sudden, Pervasive Loss Of Faith" In Markets; Says "It's A Truly Scary Time"

Tyler Durden's picture




 

First it was Sam Zell, warning "it's very likely that something has to give here." Then George Soros upped his market hedge drastically, followed by Carl Icahn's "worry about excessive money printing," adding that he was "very nervous" about US equity markets. "Financial markets are euphoric," warned Stan Druckenmiller, warning that "market participants are pricing in hardly any risks," and Crispin Odey explained "there are consequences to CB actions," stating that "we have front-row seats to an imminent market shock." And now hedge fund manager Andy Redleaf (who predicted "there is going to be a panic in credit markets," in 2007) has come out with the most ominous of warnings yet among the billionaire crowd... "I think it is a truly scary time."

"Sometime in the next 12 to 18 months, there is going to be a panic in credit markets,” billionaire Andy Redleaf, a 50-year-old hedge fund manager, wrote to investors in December of 2007. "The driver in the credit market panic of 2007 or 2008 will be a sudden, profound and pervasive loss of faith in the alchemy of structured finance as currently practiced." And as CNBC notes, he is worried again...

Redleaf wrote that the stimulus used to put fresh money in markets could end poorly, just like loose credit standards in housing before 2007 crushed that market.

 

"We do not know exactly where all the credit creation of this cycle has gone. Certainly money sits idly as excess reserves, but just as certainly money that would not exist but for unconventional monetary policy has distorted prices and resource allocation," Redleaf wrote.

 

He noted that the oil market—which recently crashed from around $100 a barrel to $43 today—may have been overly inflated by China "buying on easy credit" and other excess money going to oil producers who in turn increased supply.

 

Redleaf also said that stock markets may similarly be propped up by sovereign wealth funds and the Swiss central bank owning large amounts of equities.

 

"There are some parallels with the collapse in home prices which preceded the financial crisis," he explained.

 

Redleaf also is worried about the euro's drop in value..."the bullish consensus on the dollar strike (is) as one-sided as anything I can remember, but it would be quite a remarkable move," Redleaf wrote of Goldman's 0.8 by 2017 prediction.

 

That move could mean big trouble.

 

"It strikes me as completely plausible that a further decline in the euro triggers a recession in the U.S.," Redleaf wrote.

 

"The U.S. has a bear market, high-yield spreads move to 1998 type levels (1,000-1,200 [basis points]), U.S. weakness and market tightening of credit probably make the recession global."

Of course, he is not the first billionaire, and won't be the last.

Billionaire Sam Zell

"People have no place else to put their money, and the stock market is getting more than its share. It's very likely that something has to give here."

 

"I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking," he said. "If there's a change in confidence or some international event that changes the dynamics, people could in effect take a different position with reference to the market."

 

"It's almost every company that's missed has missed on the revenue side, which is a reflection that there's a demand issue," he said. "When you got a demand issue it's hard to imagine the stock market at an all-time high."

 

He also lamented about how difficult it is to call a market top. "If you're wrong on when, that's a problem." His answer: "You got to tiptoe ... and find the right balance."

 

"This is the first time I ever remember where having cash isn't such a terrible thing, despite the fact that interest rates are as low as they are," he added.

Billionaire Carl Icahn

Ironically, Carl Icahn - poster-child of the leveraged financial engineering that has overtaken US equity markets on the back of Central Bank largesse - told CNBC that he was "very nervous" about US equity markets. Reflecting on Yellen's apparent cluelessness of the consequences of her actions, and fearful of the build of derivative positions, Icahn says he's "worried" because if Yellen does not understand the end-game then "there's no argument - you have to worry about the excesssive printing of money!"

Billionaire Stan Druckenmiller

Simply put, Druckenmiller concludes, rather ominously, "I am fearful that today our obsession with what will happen to markets and the economy in the near term is causing us to misjudge the accumulation of much greater long term risks to our economy."

Billionaire Crispin Odey...

Having previously noted that "this is the best shorting opportunity since 2007-9," Billionaire hedge fund manager Cripsin Odey warns that (just as Goldman has noted) the global economy is h"eaded for recession and central banks will not be able to able to come to the rescue because they have exhausted the arsenal of policy weapons." No matter what happens, he chides, the market shrugs it off as they are "kind of relying on central banks pulling a rabbit out of a hat." They will not, "Central banks are not all singing and all dancing," and cannot avoid the consequences of what they are doing, concluding, "you and I have got grandstand seats here [to an imminent market shock]," and investors are about to "find out just how illiquid it really is out there."

 

One of the world's leading hedge fund managers has warned that global economies are headed for recession and central banks will not be able to able to come to the rescue because they have exhausted the arsenal of policy weapons.

And here the BIS explains broken markets so easily, even a Janet Yellen can get it:

Financial markets have been exuberant over the past year, [...] dancing mainly to the tune of central bank decisions. Volatility in equity, fixed income and foreign exchange markets has sagged to historical lows. Obviously, market participants are pricing in hardly any risks.

Growth has picked up, but long-term prospects are not that bright. Financial markets are euphoric, but progress in strengthening banks’ balance sheets has been uneven and private debt keeps growing. Macroeconomic policy has little room for manoeuvre to deal with any untoward surprises that might be sprung, including a normal recession.

So now we have five billionaires and the BIS all flashing warning signals which can only mean one thing: stocks are undervalued so buy, buy, buy ahead of tomorrow's "impatient" Fed.

 

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Tue, 03/17/2015 - 17:55 | 5899839 world_debt_slave
world_debt_slave's picture

scary for who?

Tue, 03/17/2015 - 17:59 | 5899849 OldPhart
OldPhart's picture

My sudden, pervasive loss of faith in markets was in late 2008.  Still have no trust, let alone faith, in any financial instrument peddled by government, banks or wall street.

Tue, 03/17/2015 - 18:05 | 5899878 bania
bania's picture

These paper shufflers can all go f$&k themselves

Tue, 03/17/2015 - 18:38 | 5899957 Publicus
Publicus's picture

We are living in the End Times.

Tue, 03/17/2015 - 19:11 | 5900140 NoDebt
NoDebt's picture

"In a surprise announcement the Fed today launched what they are calling a continuation of their recently paused QE3 program.  'We are not calling it QE4, we never called an official end to QE3, we merely taperd to a then-appropriate zero purchase level and clearly indicated we could restart such asset purchases as economic conditions warranted,' said Fed Chairwoman Janet Yellen.  Markets have immediately reacted by swinging from flat on the day to a 600 point gain in the Dow by the close of trading.  After hours futures contracts are showing an additional 200 point gain"

Just a little glimpse of one possible future headline.  Don't say you weren't warned.

 

Tue, 03/17/2015 - 19:16 | 5900162 TruthInSunshine
TruthInSunshine's picture

Market?

WHAT'S A PHUKKING "MARKET?"

I keep seeing references by those in the financial sector commenting on something called a "market?"

What's that???

Tue, 03/17/2015 - 19:28 | 5900195 Manthong
Tue, 03/17/2015 - 19:42 | 5900229 bwh1214
bwh1214's picture

Great intro of how we got here for anyone who's new or for someone you want to introduce to the mess we're in:

http://debtcrash.report/entry/history-and-introduction

Tue, 03/17/2015 - 20:42 | 5900377 Karlus
Karlus's picture

>>continuation of their recently paused QE3 program

Why wouldnt they do this? What does QE4 actually cost?

 

Besides, dont we have an inevitble election coming up? A market crash is only necessary if the wrong "guy" is winning

Tue, 03/17/2015 - 22:41 | 5900735 TruthInSunshine
TruthInSunshine's picture

The wisdom of Seinfeld on markets in addressing Eileen or Kramer's naivety:

"KEEPING/RETAINING your money is the goal."

Tue, 03/17/2015 - 20:43 | 5900380 smlbizman
smlbizman's picture

ah yes,...the cnbc wall of worry....everyone into the pool....

Tue, 03/17/2015 - 19:37 | 5900216 Gambit
Gambit's picture

I down voted you NoDebt, cuz that would mean the charade goes on, time for it to end so we can start healing.

Tue, 03/17/2015 - 19:54 | 5900264 NoDebt
NoDebt's picture

It doesn't happen on our schedule, Gambit.

Tue, 03/17/2015 - 20:25 | 5900341 Greenskeeper_Carl
Greenskeeper_Carl's picture

He was saying 'one plausible scenario'. While I don't happen to think he scenario is likely tomorrow, I think it is almost assured at some point in the future. If you don't think that can happen, you must not have been paying attention for the last few years.

Wed, 03/18/2015 - 10:44 | 5901994 thecrud
thecrud's picture

Combine this with nutty politics and social unrest caused by things like shaking down motorist for the funds to run cities

No telling where Libritarinism is taking us but it wont be pretty and the cost off all will be paid in a DOW 1000 I have lived through several DOW collapses with out all this strife the difference this time will be no return to business as usual.

And I think this is the actual plan.

 

Tue, 03/17/2015 - 19:13 | 5900154 new game
new game's picture

you or i could make a shit ton but not see a dime of it. if the shtf do you think the brokers/bankers are going to let you get your loot from them?

Tue, 03/17/2015 - 19:52 | 5900260 p00k1e
p00k1e's picture
Update:NWO's Project Blue Beam and the real reasons for Chemtrails!

 

https://www.youtube.com/watch?v=peUkPNx9DSU

Wed, 03/18/2015 - 06:50 | 5901267 SMASH THE CONTR...
SMASH THE CONTROL MACHINE's picture

BABYLON THE GREAT FALLS IN ONE HOUR!!!!And the kings of the earth, who have committed fornication and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning,10Standing afar off for the fear of her torment, saying, Alas, alas, that great city Babylon, that mighty city! for in one hour is thy judgment come.

11And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more: 12The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble, 13And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men. 14And the fruits that thy soul lusted after are departed from thee, and all things which were dainty and goodly are departed from thee, and thou shalt find them no more at all. 15The merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing, 16And saying, Alas, alas, that great city, that was clothed in fine linen, and purple, and scarlet, and decked with gold, and precious stones, and pearls! 17For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off, 18And cried when they saw the smoke of her burning, saying, What city is like unto this great city! 19And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas, that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

Wed, 03/18/2015 - 12:27 | 5902441 Enceladus
Enceladus's picture

The end of these times...

and thank God

Tue, 03/17/2015 - 18:30 | 5899879 Chuck Knoblauch
Chuck Knoblauch's picture

Mine was in 1998 when I bought stock after a sell side analysts rec.

Never again.

Tue, 03/17/2015 - 18:54 | 5900066 Harbanger
Harbanger's picture

It's easy to make money once you understand the psychology of the herd.  Bet against them, it's a sure win.  Buy when People have given up on something, they'll surely come around to the same stupidity once again.

Tue, 03/17/2015 - 18:15 | 5899921 Fukushima Fricassee
Fukushima Fricassee's picture

I am way past "loss of faith" and have entered the rage and anger phase.

Tue, 03/17/2015 - 18:29 | 5899969 junction
junction's picture

Why the sudden loss in confidence by this motley group of liars, thieves, extortionists, bankruptcy fraud criminals and cokeheads?  The USA has in charge now about the same bunch of satanists, perjurers, crossdressers, dope dealers, rapists, conspiracy murderers and pedophiles as ten years ago.  Probably Cokehead-in-Chief Obama and his New World Order handlers are shaking these guys now for even more money in protection payments to avoid indictment for their numerous unsavory crimes.  The USA now really is like Chicago in the 1920s, with mob killers running the show.

Tue, 03/17/2015 - 20:56 | 5900400 Ness.
Ness.'s picture

I was in Chicago in the 1920s.  What we are witnessing is nothing like Chicago in the 1920s.  In the 1920's the bad guys ended up floating in the Chicago river with two shots to the back of their head.  

This is much, much worse.

 

Capitalism is the legitimate racket of the ruling class.

I am like any other man. All I do is supply a demand.

“It’s a racket. Those stock market guys are crooked.”

~Al Capone.

Tue, 03/17/2015 - 21:01 | 5900443 Usurious
Usurious's picture

 

 

Anthony Migchels writes....

''Capitalism is Usury. Its defining belief is ‘return on investment’. This is an extension of the ‘time value’ of money, which is the central tenet of modern economics. Capitalism is unthinkable without banking and banking is institutionalized Usury. ''

https://realcurrencies.wordpress.com/2014/06/05/capitalism-is-jewish-usu...

Tue, 03/17/2015 - 21:17 | 5900493 TeethVillage88s
TeethVillage88s's picture

This is much, much worse wow I'm kinda scared.

You're quote is scary, applicable and a leading indicator.

This thread accurately looks at power, mafia, organized crime, and typical conversation in any military boot camp.

Tue, 03/17/2015 - 18:28 | 5899977 semperfi
semperfi's picture

2000 for me - "tech bust"

Tue, 03/17/2015 - 18:39 | 5900027 I Write Code
I Write Code's picture

You, me, Alan Greenspan and Ben Bernanke.  The problem is, what do you do instead?

Tue, 03/17/2015 - 18:02 | 5899863 Burt Gummer
Burt Gummer's picture

The markets are fucked, buy gold.

https://www.youtube.com/watch?v=OqLb_GSvwXA

Tue, 03/17/2015 - 20:57 | 5900424 RmcAZ
RmcAZ's picture

If everyone in the markets perceives there is no risk, then is there any risk?

Tue, 03/17/2015 - 21:21 | 5900508 FMOTL
FMOTL's picture

That baby looks like he,s just seen a circumcisionist cult member with a sharpened thumb nail

Tue, 03/17/2015 - 17:56 | 5899840 dimwitted economist
dimwitted economist's picture

AAAAHHHHH!!!!! We're ALL Fucked!!!!!! AHHHHH!!!!!

Tue, 03/17/2015 - 18:54 | 5900085 long-shorty
long-shorty's picture

this article is confusing. do I BTFD or not? why would I not BTFD?

Tue, 03/17/2015 - 19:15 | 5900166 new game
new game's picture

keep reading

Tue, 03/17/2015 - 20:00 | 5900282 Model T
Model T's picture

No, you don't buy the dips; you sell the tops. You buy dips in a bull market, you sell tops in a bear market. I've been shorting these fantastic S&P500 rally tops for the last several cycles. Short now again from yesterdays high' already in the money today; sooner or later you'll participate in a big move, in the meantime you maintain familiarity with the behaviour of the beast and book profits.

Tue, 03/17/2015 - 21:04 | 5900451 Ness.
Ness.'s picture

Volume is to the downside. The rally's are illiquid and driven by buybacks/desperation/Algo spoofing.  

 

I'd rather be two years too early than two minutes too late.

Wed, 03/18/2015 - 07:29 | 5901329 messystateofaffairs
messystateofaffairs's picture

Now now now, remain calm and carry on.

Tue, 03/17/2015 - 17:58 | 5899843 venturen
venturen's picture

Ho-Hum market will go up 500 points crushing all those who don't believe in the power of money printing.

In other news this headline from NYT 

 

"Could Obama Bypass the Supreme Court?"

 

The absurdity just keep coming

Tue, 03/17/2015 - 18:06 | 5899883 Hohum
Hohum's picture

You said something?

Tue, 03/17/2015 - 18:46 | 5900051 TheReplacement
TheReplacement's picture

Ever try reading the comments on articles like that?  Sometimes I jump in but it is like explaining the internal combustion engine to a hungry chicken.  Cluck, cluck, cluck...

Tue, 03/17/2015 - 17:59 | 5899847 Bay of Pigs
Bay of Pigs's picture

These markets are FUBAR...

When gold and silver start to rise you'll know when the worldwide stock collapse has begun.

 

Tue, 03/17/2015 - 18:24 | 5899956 deflator
deflator's picture

 When you see the dollar going parabolic is when you know big players are front running a stock collapse. 

 

Tue, 03/17/2015 - 18:08 | 5899855 nmewn
nmewn's picture

Everyone got their trailing stops locked in?

/////

Two don't so far, suckers ;-)

Tue, 03/17/2015 - 18:00 | 5899856 allinwood
allinwood's picture

someone just shit the diaper!

Tue, 03/17/2015 - 18:02 | 5899858 swmnguy
swmnguy's picture

It might be hard for Serbs or Somalis to hear it, but letting Finance off the leash was the most destructive and evil thing Bill Clinton did as President.  NAFTA etc. was a part of that too.  The two milestones that, even at the time, told us we were going to be uck-fayed were the repeal of Glass-Steagall and the "Securites Modernization Act of 2000."

Of course the billionaires are worried, but not about a crash.  Who do you think pulls out the rug periodically, causing these crashes?  Whomever is positioned to make a fortune into a nutty cuckoo super-fortune, that's who.  Them, in short.  What they're worried about is that us pigeons might get wise, and not be there to be plucked when they decide the time is right.

Tue, 03/17/2015 - 18:13 | 5899909 Fish Gone Bad
Fish Gone Bad's picture

the most destructive and evil thing Bill Clinton did as President

considering how well the Clintons emerged after creating so very many enemies one would think "someone in power" was watching over the Clintons.  Does anyone honestly think our presidents really are all that clever to write all this give-away legislation and let the banks run amuck?

Tue, 03/17/2015 - 18:16 | 5899924 Thirst Mutilator
Thirst Mutilator's picture

Can anyone say Bob Rubin?

Tue, 03/17/2015 - 18:39 | 5900025 Wahooo
Wahooo's picture

That's the one. What's he doing (to people) these days?

Tue, 03/17/2015 - 19:13 | 5900156 e_goldstein
e_goldstein's picture

Figuring out new and complicated ways to fuck them:

http://www.cfr.org/staff/b292

Tue, 03/17/2015 - 18:19 | 5899935 swmnguy
swmnguy's picture

Again with the Italics!  I wanted to give you some greenie for that one.

Yes, the Clintons and all the rest of them are very dutiful employees.  They should be, given the intense vetting involved in the hiring process.

The worst thing is these Democrats of the past few decades really seem to think all there is to an economy is stock markets.  Must come from having grown up feeling inferior to wealthy people, and being eager to please authority figures for personal benefit.  So it's not at all hard for them to let the bankers tell them what to do.  At least the Reagans were absurdly and slavishly fawning over the most vulgar of the wealthy.  It was right there on the surface.  But still they understood that business, and the overall economy, have relatively little to do with the second-hand trade in stocks in a healthy environment.  The Obamas, Clintons and their ilk have no such clue.

Tue, 03/17/2015 - 18:26 | 5899962 Fish Gone Bad
Fish Gone Bad's picture

The whole Mena affair (running cocaine) happened during the Reagan administration's Iran/Contra program.  There was a mountain of dirt enough to get on a lot of people's clothes.  A lot of people died, and a lot of people got really really rich.

Tue, 03/17/2015 - 18:34 | 5900002 blindman
blindman's picture

Hillary's Brother Landed Rare Gold Mining Permit in Haiti
Friday, 06 Mar 2015 11:32 AM
By Melanie Batley
Former Secretary of State Hillary Clinton's brother was on the board of one of only two companies that received a "gold exploitation permit" in 2012 from the Haitian government — a first in over 50 years.

Tony Rodham served on the board of VCS Mining, a tiny North Carolina company, along with Bill Clinton's co-chair of the Interim Haiti Recovery Commission, former Haitian Prime Minister Jean-Max Bellerive.
Special: Does Obama Belong to This Secret Society? (Shocking)
The revelation has emerged in a forthcoming investigative book by bestselling author Peter Schweizer, Breitbart reported.

The deal with VCS created tension in the Haitian Senate after it was revealed that the royalties to be paid to the Haitian government were at least half the standard rate at 2.5 percent. It also came with the privilege of being able to renew the mining project in Morne Bossa for up to 25 years.
.
The book, entitled, "Clinton Cash: The Untold Story of How and Why Foreign Governments and businesses Helped Make Bill and Hillary Rich," investigates the connections between the Clintons' wealth, the Clinton Foundation, and decisions Clinton made as secretary of state that benefited foreign donors, governments, and companies.

"Schweizer's scrupulously sourced and exhaustively researched book raises serious questions about the sources of the Clintons' sudden wealth, their ethical judgment, and Hillary's fitness for high public office," said HarperCollins editor Adam Bellow.

Schweizer coined a new term — "Clinton blur" — to describe the way the Clintons' political, personal, and philanthropic interests overlap, Breitbart reported.
.
http://www.newsmax.com/Newsfront/Hillary-Clinton-Tony-Rodham-Haiti-gold-...

Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Newsfront/Hillary-Clinton-Tony-Rodham-Haiti-gold-...
Urgent: Rate Obama on His Job Performance. Vote Here Now!

Tue, 03/17/2015 - 23:07 | 5900793 TeethVillage88s
TeethVillage88s's picture

But I still need to know more about the Clinton Male Whore.

Did I spell that Right?

Non-Partisan, look up the skirt, for the sake of Christians, for our Federal Patriots, for our Orthodox US Policy, for our NGO Funding, for our National Campaign Coffers, for the love of God...

What happened?

Tue, 03/17/2015 - 23:47 | 5900908 ceilidh_trail
Tue, 03/17/2015 - 20:26 | 5900342 Usurious
Usurious's picture

 

 

Monica was a honey-pot..........Clinton sold his soul and his country for $100 million.........one only needs to look at the time line from Gramm-Leach-Bliley Act backwards to understand what happened.......

Tue, 03/17/2015 - 18:16 | 5899926 Bay of Pigs
Bay of Pigs's picture

Yes, and then we had the TARP and the nationalizations of Fannie and Freddie in 2008, which sealed the fate of the country. The next maket crash will ten times worse than either of those events (bursting of the dot.com and housing bubbles).

Tue, 03/17/2015 - 19:09 | 5900138 IndianaJohn
IndianaJohn's picture

A few will have taken flight.

Tue, 03/17/2015 - 18:01 | 5899860 Mandel Bot
Mandel Bot's picture

Gold is really cheap today

Tue, 03/17/2015 - 18:03 | 5899870 Chuck Knoblauch
Chuck Knoblauch's picture

Your fault.

Tue, 03/17/2015 - 18:19 | 5899939 dimwitted economist
dimwitted economist's picture

Silver is FUCKING SUPER CHEAP right now...  Crazy Cheap!

Tue, 03/17/2015 - 19:03 | 5900115 IndianaJohn
IndianaJohn's picture

That "poor man's gold" (silver) was even more affordable in March 2002 @ $4.65 out the door! 

Tue, 03/17/2015 - 19:00 | 5900104 IndianaJohn
IndianaJohn's picture

And Gold was even more affordable when I bought my first Gold Buffalo early in 2002

Tue, 03/17/2015 - 18:02 | 5899864 Chuck Knoblauch
Chuck Knoblauch's picture

And it's going to be all your fault.

Gods never take responsibility for their faults.

Tue, 03/17/2015 - 18:03 | 5899869 Augustus
Augustus's picture

Seems that Bibi beats Barry.

 

No surprise.

 

Barry loses to everyone.

Tue, 03/17/2015 - 18:13 | 5899901 swmnguy
swmnguy's picture

Israel wins, if you define "Winning" in the Charlie Sheen sense of the term.  Everybody with any sense in Europe, the Middle East and the US has had it with Netanyahu.  Only the Republicans and Democrats dumb enough to get elected still cower to AIPAC.  Even "Bibi" isn't stupid enough to tangle with Hezbollah yet again, after the ass-kicking the IDF took last time.  And as the Brzezinski game plan continues to founder due to its fundamental misunderstanding of what power is and is not, Iran's historic influence in the region will only grow.  If Israel wants to counter that, they're going about it bass-ackwards and will lose without Iran's directly firing a shot.  

If "Bibi" had any brains he'd fly to Teheran, Begin-style, and come away with a blueprint for peace in the Middle East.  But that's way beyond his proven capacity as a man and a leader so he can't and won't do that.  He has fallen into the self-delusion so common among politicians, that anyone else in the world gives a shit about their internal domestic partisan antics.  Which is why he makes such a great cat's-paw for the US.  Our politicians share the delusion.

 

Tue, 03/17/2015 - 18:38 | 5900018 Wahooo
Wahooo's picture

On the other hand, if he nukes Iran, who the hell would care? There would be no repercussions.

Tue, 03/17/2015 - 20:45 | 5900385 swmnguy
swmnguy's picture

Well, I doubt Israel would get nuked back, but I wouldn't say "no" repercussions, and I wouldn't say nobody would care.  A lot of people live downwind, and would most certainly care.  It's questionable even the US, Saudi Arabia or the Gulf despotisms would do anything but impose a complete quarantine on Israel, with no travel, trade or communications.  The elites of the US Empire hate Iran, and the Saudis and Sunni despotisms do too, but nobody else does.  To the extent that it was necessary to invade and occupy Afghanistan all this time, and keep a low-graade war bubbling, to prevent the construction of a pipeline from Iran to China.  Nuking Iran would be too dumb for even Netanyahu to do.

Tue, 03/17/2015 - 19:52 | 5900257 TheReplacement
TheReplacement's picture

Did Barry lose or is the whole thing a smoke screen?

Tue, 03/17/2015 - 18:04 | 5899872 max2205
max2205's picture

Blah blah blah blah 

Tue, 03/17/2015 - 18:05 | 5899876 SpasticGramps
SpasticGramps's picture

It's just the weather. Steve Liesman told me so.

Tue, 03/17/2015 - 18:12 | 5899907 davidalan1
davidalan1's picture

LOL,,,, dayaaam.. lost my trust wihen nixon closed the gold market. I must be getting old waiting for the collapse of this great experiment....

So i spend my retired days watching the military channel showing scenes of trench warfare, iwo jima, quada canal, german refugees thinking im pretty fucking lucky...so far. ALL of us..

 

Cheers.

Tue, 03/17/2015 - 18:20 | 5899942 Fish Gone Bad
Fish Gone Bad's picture

Randy Pausch (living while dying) recalled a tough time he had in graduate school.  His mother said to him, "When your father was your age he was fighting the Nazis".  Yes, we are all quite fortunate.

Tue, 03/17/2015 - 18:23 | 5899954 davidalan1
davidalan1's picture

Thank you for that response. Its SO true compared to what others have gone/been through,  the past fifty years has been a friggin party, but of course all debt expanse related....Sex, drugs, rock n roll..

"its a hard rain a gonna fall" - Dylan

Tue, 03/17/2015 - 18:14 | 5899914 polo007
polo007's picture

According to Natixis:

http://www.ge.tt/5osnEOC2/v/0?c

March 13, 2015

What are the differences in economies where debt ratios are very high?

Debt ratios (public, private and total) are at present extremely high in a vast majority of OECD countries. How does this change the functioning of these countries' economies?

• Fiscal policy becomes more restrictive and can hardly become very counter-cyclical due to high public debt ratios;

• The private sector deleverages, and monetary policy can no longer use the credit channel;

• Central banks have an incentive to conduct expansionary monetary policies to facilitate deleveraging.

In countries where debt ratios are very high, we can therefore expect to see:

• Weaker growth (a restrictive fiscal policy, private-sector deleveraging);

• Deeper recessions (lack of counter-cyclical capacity of fiscal and monetary policies);

• And yet a sharp rise in asset prices (equities, real estate), due to expansionary monetary policies and long-term interest rates that are lower than growth rates.

Paradoxically, excessive debt ratios can be positive for equities and real estate.

Tue, 03/17/2015 - 20:04 | 5900295 Thisson
Thisson's picture

Paradoxically, excessive debt ratios can be positive for equities and real estate.

Until they're not.

Tue, 03/17/2015 - 18:17 | 5899922 blindman
blindman's picture

sanctified and massive, systemic,
fraud has been know to have that
kind of effect, yet, no one could
have imagined it or seen it coming.
.
curious and very scary.
.
perhaps we need more fear, terror
and darkness?

Tue, 03/17/2015 - 18:26 | 5899963 semperfi
semperfi's picture

moar woar

Tue, 03/17/2015 - 18:22 | 5899947 Seasmoke
Seasmoke's picture

Buy physical Gold !!!! or are you not allowed to by your fucking corrupt Tribesman. 

Tue, 03/17/2015 - 18:25 | 5899959 Oldwood
Oldwood's picture

But I thought having faith in something intangible like religion or economy was wrong. I thought we could only have faith in real life deity like Obama.

Tue, 03/17/2015 - 18:32 | 5899995 will ling
will ling's picture

the house of cards is wobblin' and the first coupla nuke flashes will signal it's down.

Tue, 03/17/2015 - 20:03 | 5900293 Kprime
Kprime's picture

god I hop the first flash catches the full congress in session listening to Ofukumericansbama.

Tue, 03/17/2015 - 21:16 | 5900489 will ling
will ling's picture

ditto.

Tue, 03/17/2015 - 18:33 | 5899998 Wahooo
Wahooo's picture

Where has all the credit gone, you ask? Well, to the banks. And what are they going to do with it? Dividends and buybacks.

Tyler, you give these hedgies valuable online space. At least ask them to reveal their current investments.

Tue, 03/17/2015 - 18:38 | 5900012 Wild Theories
Wild Theories's picture

5 billionaires and the BIS, ok

now I'm more interested in what a bunch of guys in a San Diego conference 2 weeks from now will be saying

Tue, 03/17/2015 - 18:40 | 5900030 Bunga Bunga
Bunga Bunga's picture

Don't worry, this time it's different.

Tue, 03/17/2015 - 18:46 | 5900052 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Money junkies always opt for their fix of monetary heroin no matter what the long term prospects of getting moar monetary heroin are. The name of the game is MOAR because the last fix has nothing to do with their need to get their next fix today. Neurobehavioural dependency has already set in when we are dealing with chronic abusers addicted to MOAR monetary heroin. Furthermore, money junkies are never satisfied with less when neurologically driven dopaminergically relevant neurotransmitters always respond best with MOAR due to habituation at lower dosage levels of monetary heroin. In brief, we are dealing with monetary heroin junkies that have no intention of cutting back on their addiction to money anymore than a glutton thinks about going on a diet or a two-pack-a-day cigarette smoker thinks about cutting back. The similarity between the glutton, monetary heroin junkie, and cigarette smoker, is the high they experience when they over-indulge in their preferred substance of choice, or neurobehavioural dependency. Either way it is impossible to get junkies to quit dope if they don't want to.

 

NOTE: It's GAME OVER for Crony Casino Capitalism no matter what the Hedge Fund managers worry about.

Tue, 03/17/2015 - 18:47 | 5900054 stormsailor
stormsailor's picture

korea wasn't a damn picnic neither but those vets are disappearing by the hundreds every day too.  if we have to do any real stand up fighting god help us

Tue, 03/17/2015 - 18:51 | 5900060 citizens divided
citizens divided's picture

Cmon, really...the plunge protection put has Yellen quantitatively easing "the many" right into a conquered enslavement.  Democracy as it's historically been defined, well uh, bye-bye. 

Well done big finance cartel, you have plastered-over a systemically fraudulent global financial system for the sake of sustaining a grotesque self-indulgence, on behalf of the few.  Quite a short-sighted, unstable, feeble leadership-ed  accomplishment.

 

 

Tue, 03/17/2015 - 18:53 | 5900063 Jstanley011
Jstanley011's picture

I'm not a trendline trader, but if you draw one on the ES from the Oct 15 low to Feb 2 low, we touched it again yesterday. It will be interesting to see if we violate that line tomorrow, should the FOMC spur a selloff rather than a rally (a 50-50 bet that it's best to stand well away from.) Twenty points or so would do it.

More importantly, we have tested within 10 points of the Dec 16 lows two times -- on Jan 16 and Feb 2 -- without violating it. If that 1961.23 level gets breached in a downdraft, the markets may be in real trouble, down into the 1800-1850s.

I don't trade on bare price levels either (I scalp on fibs), but they and trendlines are good "big picture" types of info to take note of on background, as it were. If for no other reason than a lot of traders do trade off this stuff.

"Real trouble," I guess, but actually the 1800s would not be bearish, technically speaking. A lot of bulls would see a 10 percent selloff as healthy...

Maybe their write (don't bet the farm, Maybell...)

Tue, 03/17/2015 - 18:55 | 5900089 Don Sunset
Don Sunset's picture

It took me years to lose faith in the markets.  I lost faith in 2009.

Tue, 03/17/2015 - 19:01 | 5900101 khakuda
khakuda's picture

Who needs the advice of billionaires?

All you need to know that we're so fucked is that interest rates are still at 0% seven years later and they are shitting their pants pondering how they're going convey that they might, eventually, raise them to 25 basis points.

Fucked doesn't even begin to describe it.

Tue, 03/17/2015 - 19:04 | 5900118 Smiley
Smiley's picture

It is scary when people realize you are full of shit, who knew?

Tue, 03/17/2015 - 19:06 | 5900128 Herdee
Herdee's picture

Richard Russell has been warning of this for some time now;

http://kingworldnews.com/richard-russell-central-bankers-move-to-protect...

Tue, 03/17/2015 - 19:15 | 5900167 homiegot
homiegot's picture

You mean, fundmentals aren't the bedrock indicator for investors? It's just faith?

Tue, 03/17/2015 - 19:16 | 5900168 Unix
Unix's picture

kerplunk, and that is all...when faith is lost all that is left is capitulation. One day soon we will get there....I lost my faith in these markets a long time ago!

Where is my shocked face?

Tue, 03/17/2015 - 19:37 | 5900218 Who was that ma...
Who was that masked man's picture

All times are "scary times".

Tue, 03/17/2015 - 19:40 | 5900222 T-NUTZ
T-NUTZ's picture

move to all time highs imminent

Tue, 03/17/2015 - 20:00 | 5900280 Fun Facts
Fun Facts's picture

A loss of faith in a malevolent criminal gang dressed in suits and peddling nothing but IOU's that can never possibly be repaid?

Say it isn't so.

Tue, 03/17/2015 - 20:06 | 5900301 pupdog1
pupdog1's picture

That baby just learned that Bibi has beaten the Rabid-Lite party.

Tue, 03/17/2015 - 20:08 | 5900306 iofera
iofera's picture

Tomorrow equities will soar again and gold will - like every day - find its way to the bottom of the toilet bowl.

Tue, 03/17/2015 - 20:10 | 5900312 razorthin
razorthin's picture

When you got a demand issue it's hard to imagine the stock market at an all-time high."

 

What if that demand is simply for stock...at any price?

Tue, 03/17/2015 - 20:40 | 5900371 _SILENCER
_SILENCER's picture

Wall street being ravaged by cruise missles would be pretty sweet, grab that shit at 4K with about twenty cameras

Tue, 03/17/2015 - 20:43 | 5900378 rsnoble
rsnoble's picture

Would be funnier than hell if the DOW goes to 12k and then stops going down.  It will be preached as the end of the world but when it got to 12k just a few years ago it was the best thing ever.  Fk all this crazy crap.

Personally I think it's going to blow up big time, everything, I was just citing an example of something I think would be humorous.

Tue, 03/17/2015 - 20:57 | 5900402 q99x2
q99x2's picture

BTFD. Its software stupid.

There will be some turmoil during the exit of the hedge funds and others but eventually the banks software will own everything.

I mean that was the fear of giving some entity the ability to create fiat currency is that they would use it to take over all the assets. They've taken over the US government and there is nothing to stop them from taking over the rest. They will buy up the entire market system, own everything and then shut it down.

Kind of obvious that at this point you want to be BTFD.

The United States of America has been taken over and it no longer exists.

Tue, 03/17/2015 - 21:07 | 5900463 Ginsengbull
Ginsengbull's picture

What goes up, must come down.

Wed, 03/18/2015 - 04:19 | 5901159 TheRideNeverEnds
TheRideNeverEnds's picture

There is no gravity in the market. It's a grave error to think that or the inverse; "it's never been so cheap so it's gotta bounce back at some point".

The farthest things can go up is infinity. That's a large number....

The farthest things can go down is to zero, a known number.

If you run a risk analysis on that even without the positive skew of the market over time you come up with buy buy buy every fucking time.

That's why despite what they say these people are still loaded to the gills with long assets and are buying more net net every day.

Tue, 03/17/2015 - 21:08 | 5900466 weburke
weburke's picture

food is a the next financial bubble? 

Tue, 03/17/2015 - 21:15 | 5900487 Playtime's Over
Playtime's Over's picture

This has got to be the most anticipated meltdown in history. My emotions are way past anxiety. More like calm postal at this point. Bring it.

Tue, 03/17/2015 - 22:26 | 5900699 virtualInsanity
virtualInsanity's picture

The market will not be allowed to crash. Only a nuclear war will do that, and that is exactly what they want because that would destroy the databases that store the entire debt based system. Oops, no more debt to repay! Long live SkyNet

Wed, 03/18/2015 - 00:40 | 5901003 Magooo
Magooo's picture

THE PERFECT STORM (see p. 59 onwards)

The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf

 

 

In other words... enjoy whatever is left of the industrial age while you can ... life, for unlucky who surive what is coming, is going to be nasty, brutish and short lived.

Wed, 03/18/2015 - 04:13 | 5901157 TheRideNeverEnds
TheRideNeverEnds's picture

If these fucks believed the shit they were spewing either equities would be down hard or the VIX would be twice as high and more likely both because they ARE the market. They are instead net buyers of stocks and bonds.

They are talking out their ass so if the market does go down in the next few years they can say I told you so.

Wed, 03/18/2015 - 05:09 | 5901185 zipit
zipit's picture

Anyone remember Sam Zell's Christmas video in 2007 (I think it was): "Capital is Raining on My Head"?

Wed, 03/18/2015 - 06:11 | 5901219 Batman11
Batman11's picture

When modern markets reacted to the new internet in exactly the same way as markets reacted to the new tulips in 1600s Holland, it should have indicated there is nothing sophisticated about modern markets.

The writing has been on the wall for 15 years.

 

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