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Well That's Never Happened Before - Exhibit 1
We have never, ever, seen the US equity market so disconnected from underlying macro fundamentals.
As the chart shows, the rising stock market is shockingly divergent from the US Macro picture (the greatest divergence ever). This has happened before (in 2006/7) but on a lesser scale, and did not end well.
Charts: Bloomberg
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It's 3:30 p.m. Dop you know where your Friday """market""" jam out of nowhere is?
OT a wild thought .. Wonder if the Pacific is heating up abnormally because the Fukushima cores drifted away with the currents ? And are now somewhere in-between far away from Japan....
Its time to fudge the macro numbers! Steady as the sinking ship goes, granny Yellen!
As fucking horrible as Fukushima is (death to all eventually), I bet it was the splitting of the ocean floor that caused the quake, that unleashed huge amounts of heat with magma way down below. 9.0... really. ring of fire.
Japan shifted 6 inches west. Can anyone comprehend that?
If you have watched japanese porn, then you should be able to.
Gold Five: Stay on target.
Gold Leader: We're too close!
Gold Five: Stay on target!
But in 2009 we started playing mark to make believe right after hope and change got elected.
As the article below states, stocks will keep going higher as CB's continue to do a leveraged buyout of the investable assets in the world. The reasons we "have never seen that before" as ZH states, is because we have never seen what we are seeing today with CB's eliminating the investable assets:
http://seekingalpha.com/article/3070356-qe-the-foundation-for-continued-...
Yes, and this guy is suggesting we all buy more, that stocks are disappearing and we should all want to own some before the corporations and government buy them all up....yet he also says that this process will hollow out the consumer markets and cause corporate profits to decline. SO...if profits decline, the economy declines and government's need to QE continues, who in the fuck wants to be the last one holding the stock of a failing corporation who will be up to their eyeballs in debt from buying back stocks to keep their profits up.
I'm no economist but Jesus Christ! Is anyone here wondering if its not this exactly mentality that is driving the whole mess off the cliff? We are seriously supposed to buy shares into an economic model that we know is going to blow up?
I don't give one shit if Google, Apple and ExxonMobil buy up every fucking share outstanding. I DON"T GIVE A FUCK! If my future is reliant on jumping with both feet into a absolutely transparent Ponzi scheme, then I say fuck it all.
The whole concept is insane, and his analysis that people deprived of interest income from the stock or bond purchases harm the economy...is he mad!!! Where the fuck does this money come from? If corporations are paying dividends, that is coming out of their income, which is being paid for by their customers. If the money is interest on government bonds, then the taxpayer is coughing it up. This idea that income from investing is EARNED is BULLSHIT! Its simple redistribution and almost ALWAYS comes from the direct labor of others.
I think he seems to think it is all a bunch of BS - but the reality is, he is right. The example explains it and AZO has continued to do it. Might as well join the free ride while it's there.
In regards to interest on government bonds, actually, taxes don't pay for anything. Governments deficit spend money into existence:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625
Has the fed balance sheet ever been at $4.5 trillion before? Has the entire world been on ZIRP at the same time before? The end result will be the same, but this allows them to keep kicking the can down the road as the bubble grows bigger than the planet.
I think, I can never earn over which I paid by my precedent employer, but I was wrong, world is so large to try their fate.but now I am making $92/hr even more, can easily minimum $1700/week, on the experience everyone must try to do work online, easy way to earn, here's an example what I do... www.globe-report.com
Everything's gonna be alright, everything's gonna be alright...
As Homer Simpson said when asked about a test he hadn't studied for:: "I'm going to put my head under a blanket and hope everything comes out alright"
The road goes on forever and the party never ends.....
there is no bubble there is no bubble......repeat
If you keep saying the same thing over and over again eventually you will get people to believe it.
We will see the DOW up by 400 on Monday. BUY BUY BUY MOAR!
As Nazis said, the bigger the lie the more people will believe it
Ben, why aren't the wealth effects working? Seems like it warrants a blog post.
He's doing very well, thank you.... Now scurry back to your hovel like a good prole....
you need to buy moar stawks
He left out who gets the wealth effect.
that 401k money, just keeps coming and coming, every two weeks out of everyone's paycheck, sort of like the mail, to infinity and beyond!!!
I think 401k's have been the biggest rip off of the working class, and gift to the Wall St thieving scum, EVER!! I realized a few years back that I would never collect that money and stopped contributing, in spite of the fact that my employer offers a fairly decent matching program. I still have a year and a half before I can withdraw from the program, so yeah, it will definitely be all gone by then......even if the .gov doesn't steal it first. My pathetic retirement funda are heavy, shiny, and either whitish or yellowish in color. Fuck the banksters and their political do boys!!!
FOOL
Hey, diversity is a good thing right?
there has never been a better time to buy!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
100 point reversal in the last 30 minutes...
wow, what a bargain...
And as per usual SLV is down.
So what's the problem?
The Almight FED can do anything. It can walk on water. It can disappear and re-appear right before your eyes. It can print unlimited amounts of electronic credits or actual paper and trade it for real things. Magic. Those guys are the best magicians I have ever witnessed. I have no reason, based on recent performance, to doubt their prowess. Long live the Almighty FED ! USA USA USA
"BTFD, you stupid idiot!" One of ZH's best videos, evah!
Quiet Comrade!
Nyet prior nor since Lehman.
Vodka to be served on the FEMA trains.
Drink and be well.
Dosvedanya.
UVXY finally had a good day. I saw some people had some buys on this yesterday : )
All the dumbasses should have taken their money out of equity markets a long time ago and counted their lucky stars (assuming they weren't significantly invested in stawks prior to 2000 or 2007), and white knuckled their gains while heading for the hills.
Stupid fucking sheep herd about to be led to slaughter by the outfit that is Inside Wall Street/TBTF.
The dumbest money of all, entities such as CalPERS, contra-signals the tops & bottoms.
There is no "market", period, there was still a little left in 2008. Unfortunately, none of the fraud was prosecuted... ...and the same criminals that destroyed (and profited) the market now own the government.
tick tock motherfuckers...
So true....
they own the CIA and all its hired hitmen
they own the IRS and all its auditors
they own the DOD and all its fancy weapons
they own the NSA and all its cameras and assorted listening and tracking devices
they own the FBI and police depts
they own just about everything else
so what's there to worry about? they got you covered
and the good news is that the fed will wink to the bankster cartel when it is about to end it's support (patience) so they can jam the short positions and buy up the market at a discount with the proceeds. has that ever happened before?
THE FED NATIONALIZED THE BIG BANKS IN 2008 !!
what haven't they nationalized? pretty soon they'll own everything
Exactly!
You don't buy me out. I buy you out. [/Moe Green]
They suspended markets, but as always, markets reassert themselves.
Short all the things from Shanghai to Rio to New Yawk to EU.
I was at the Levy Seminar (the one Bullard gave the opening address at on Wednesday), and I was flabbergasted at the shit being spewed out by him and Paul McCaulley.
I went up to Bullard to ask why he felt oil price declines were unambigulously positive and he just mumbled something and scurried off.
Larry Summers would have farted, then fallen asleep.
Probably would have "accidentally" had is fly open too.
QE and ZIRP financial scams were going on to drive the S&P higher.
Fundamentals and free market be dammed !!
Does that suggest US macro will bounce up now?
Martingale madness.
Feds got printers and a magic keyboard, BITCHEZ!
All that chart says is that the Algos will see that there should be a massive V shaped recovery in a few months, hence why they run the stock market ever higher. Hal/WOPR only sees the patterns and what it sees is the BIGGEST COMIN RECOVERY EVA!!!!!
While the end result may be the same, we seem to keep losing sight of the trillions in QE thrown at system. What seems to not make sense, actually makes perfect sense.
Cue the Magical no volume grind up through the summer.....then watch out in Sept....
Haven't you bitchez been paying attention??
What's in the macro basket?
So it IS different this time-only in a very bad way.
The "Macro Basket" is a triple-decker burger with monster sized fries and a 42 oz. drink! :-P
This is a very sloppy article since "US Macro" is not defined. Or are we just supposed to accept that "US Macro" is an accurate representation of the US macro-economic environment?
I did a search on Bloomberg, the source for the chart given in the article, for "US Macro" and got no hits.
I was looking for that macro chart and what it's determined by also. No luck. Without a source and definition this means absolutely nothing.