"Black Monday" Brings Global Market Rout, Investors Mourn The Death Of Central Bank Omnipotence

Tyler Durden's picture

Another day in ignoropia...

And a second clip - because we can - that seemed a perfect analog for mainstream media in the middle of today...



It started in China...


Continued in Europe...


And then catastrophied in The US...


The crash in stocks at the open appeared as much driven by a collapse in USDJPY - JPY carry unwinds - which ripped back and lifted stocks...


Cash indices ripped back off the lows and Nasdaq 'touched' unchanged on the back of AAPL... before it all fell apart again...


As the end of the day loomed, chatter of QE4 (hope) and PBOC RRR Cut (hope) managed to ramp stocks... dragging S&P minis back to VWAP... (on heavy volume)


Some context for the drop today...


Everything is red post-QE3...


Energy stocks crashed, catching down to energy credit markets...which hit another record wide today...


"Inconceivable" - US financial stocks collapse to credit...


VIX explodeder...


Catching up to credit...


Treasury yields plunged as stocks collapsed but as the PPT stepped in and rescued AAPL, so bonds got hit (with the long bond yield soaring to +4bps from -11bps at one point)... then as the weakness re-accelerated, yields plunged... 10Y traded with a 1 handle once again... and 30Y went out with a higher yield


The USD drooped most in 5 months today back to 7 month lows...


Despite USD weakness, commodities were all lower as we suspect margin calls necessitated widespread selling in everything...


Crude was utterly monkey-hammered back to a $37 handle...


One final thing... China opens in a few hours!!


Charts: Bloomberg

Bonus Chart: Blood On The Streets Of The World...

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The man with pointy horns's picture

Fire and brimstone BITCHEZ!

Edit: In one day the muppets get fucked thrice. First with the flash crash in the morning, then the rebound which collapsed from midday onwards, and lastly -- just to really, really rub it in -- the Fed did the usual stick save only for that to collapse 15 minutes later.

Big Beta Bill's picture

Look out cow girls, I got this. 


What are inflation expectations doing? 

Captain Debtcrash's picture
Captain Debtcrash (not verified) Big Beta Bill Aug 24, 2015 3:15 PM

I’m certainly not surprised we saw a huge drop today, nor am I surprised that the PPT was in high gear. I was surprised to see something new. Major discrepancies between the level of the market indices from different outlets at certain times. Shown here.

BC6's picture

Is that a dual round trip today of around 3500 points? 

bigkahuna's picture

I would say short it - but you would not be able to close your position - so fuck it.

DaddyO's picture

Wow, Tyler's chart porn addiction has really deepened with all this market turmoil.

I may have to find another outlet, all this chart porn has left me in a hopelessly excited state...


A Nanny Moose's picture

Was that the fastest dead cat ever, or what?


Oh the Humanity!!!!

J S Bach's picture


We don't live in "interesting" times... we live in insane times.  This period of history will some day be looked upon as a period of utter decadent insanity by whomever is lucky enough to survive the coming vortex of economic retribution.  I only pray that the instigators of this incalculable lie are brought to full justice.


DaddyO's picture

Don't count on any justice this side of eternity!

History is replete with times just like these. Robespierre anyone?

The best we can hope for is that a large enough contingent of rational, liberty minded individuals can band together on the other side of this epoch and rebuild. Unfortunately, this hope may not occur in my lifetime. The depth and breadth of this insanity is biblical in nature and size. This only leaves room for a solution from a being far greater than our current collective.

My personal belief and bias are bent towards the messianic return and a thousand year peace...anything else pales in comparison as a solution.


IRC162's picture

The real fun starts with Asian Market opening bells in a few hours.  This is better than watching NFL at this point.  Wonder if the ChiCom gov will want to kickoff or receive...

J S Bach's picture

I hear ya, DaddyO, but I disagree on the hopelessness of it all.  I know I used the word "pray", but in truth... men caused this mess to arise in the first place - by their obsequiesneous and their neglect - so they can surely rectifiy the situation with sound reason and a touch of morality.  I know - I can hear the groans of the pessimists - but I do believe in the pendulum theory of history.  No matter how debauched people are now - the hardships to come will transform them into men and women again.  That is - mentally mature adults.   THAT is what is lacking today.  Everyone is a child in mind and spirit.  Sloth metastisizes from generations of prosperity and a lack of vigilence by the present "adult" citizenry.  When that weakness is targeted by a manevolent alien body of usurers and pervayors or vice - no good can come of it.   Take heart... nature WILL reclaim the upword path.

DaddyO's picture

I too have optimism rooted in the hope that hardship does indeed bring about maturity. The Great Depression my grandparents and parents lived through did indeed bring about a maturity in my immediate family. That's probably why I hold to a more conservative approach to life, liberty and the pursuit of happiness. I long ago abandoned the "If it feels good, do it, if it feels very good do it a lot" mentality. Somewhere in and around my 25th year, things in life began to take on new meaning. I quit partying like it was 1999 and began to change my circumstance and my family tree in the process.

The overwhelming nature of the current financial apocalypse that looms on the horizon is just too large and engulfing right now to always see the small tree of liberty under the storm clouds...


FreedomGuy's picture

Liberty requires reasoning and effort. That puts us behind. Most people want the "Big Man" to save them with his superior ideas and intellect. 

FreedomGuy's picture

Was anyone else amazed at the bound-and-rebound? The 1000pt drop at the beginning was impressive but I will say not altogether unexpected. Listening and checking in during the day it was about an 8 or 900 point rebound and then the final slide. 

I was asking myself, "Who the hell buys into a drop this big on a magnitude large enough to move the market 800 points?". I know the greater fool theory and I understand individual's cherry picking some good individual stocks but not a wholesale rebound.

All I could come up with are HFT algo's that got past their programming and read the whole market at a "Buy, now!" signal and activated themselves. This would be followed by real human traders going, "Oh, shit!" and quickly trying to reprogram and unwind the trades. 

It's a crazy time and nothing makes sense. 

bigkahuna's picture

I was thinking the same thing - who buys into this?

Only people using other peoples' (or ctrl p) money for sure.

Stares straight ahead's picture

I kept thinking, "what is the cost of this 'rescue' to my children?"

KnuckleDragger-X's picture

Another CNBC special tonight, should be WWE caliber trash talk.....

Squid Viscous's picture

Are they gonna drag Krudlow out of the Chelsea gay bars for this one? Oh I forgot he's a fine upstanding Catholic now...

Winston Smith 2009's picture

I watched their special last night. Imagine that, financial programming on a financial news network! I don't plan to watch tonight, more useless blather from people who, if they told the truth, "I have no f'ing idea what's going to happen. I've been wrong most times before." would rightfully lose their jobs.

I used to have an international financial news channel on my cable system that was far better than CNBC, but it is no more. I guess people stopped watching/wanting it during the "nowhere but up" fantasy markets. Investing was so simple, just buy moar stocks!!!

Lore's picture

Canada has a show, "Michael Campbell's Money Talks."  Same kind of bullshit.  Two weekends ago I think the message boiled down to "Buy American equities, buy the USD."  A week later, you could hear a pin drop about the USD, but "Ohhh, we all saw this (crash) coming."  And then they go to some guest who waxes eloquent about how "X could go up, or it could go down, and we'll know because of our proprietary indicators."  And everybody has a newsletter or some other damned product to hawk, and Campbell follows them all, hell he doesn't even sleep for weeks at a time, he studies them all so hard, and he's a perfect retroactive trading and investment genius...

Cadavre's picture

Cramer did it again!

What a fudgepacker .. he lectured the 4 viewers tuned in, "not to confuse the market with the economy".

That's all fine and dandy providing another round of bailouts or worse yet, "bail-ins", don't make us pay for the gaming addiction of the white shoes tap dancing on the exchange floors.

He uses frothy rhetoric and circular logic to make a pointless point, and then blames China. WTF. The FED fucked the planet, not China.

"But that said", our belching warehouse of useless information, the Cramer, advises, "to invest gingerly". The Cram is telling his 4 viewers to buy into the lows (can you believe that fucking shit).

Cram boy closes with his message, "not to confuse the economy with the markets" - like both ain't been deep sixed since the 2009 bailout.

We let it go this far. We deserve low-end a-wipes like the Cramer shorting like they're being fed an IV laxative.

Sin stocks and autoparts stores - and 1 oz Mexican Libertads - there is no hedge.

Barclays is betting the FED rate hike ain't gonna happen until spring 2016, Then, the CNBC gaggers threw out that HFTs are playing against each other. Low volum. Fat indexes and a lot of derivatives that may or may not be betting notional principal.

ajax's picture



Invest everything you've got in "healthcare" stocks: the only game left in town now is to prey on the sick and the inevitably soon to be sick. Go ahead, go full-on Vampire Zombie and take your profits while your teeth are still sucking at the neck. GO !!!



The Financial World is Utterly Sick.

NoDebt's picture

My central premise since joining ZH was that we were all going to turn into Japan.  As I always pointed out, the only thing not lining up with that theory was a persistent bear market in equities.

What's that?  1200 Dow points in two days?  On NO NEW NEWS.  

Hey, if you've enjoyed the crash so far you're really going to like the multi-year slow grind lower that follows it.

Bay of Pigs's picture

Its been a long wait for some of us NoDebt.

To see the bulls utterly crucified will be heartwarming to me.

Bernoulli's picture

As a dear fellow poster said earlier today:


greenskeeper carl's picture

it has been a long wait, ive often said the same thing. No big, dramatic crash where everything goes to shit(not that it couldn't happen at some point in the future) but a long, slow slog downwards. Prices for things we need keep going up, of course, and most people have a lower standard of living. Govt debt keeps going up, and eventually the fed will own most outstanding bonds, like the BOJ does now. They will try all sorts of things, but the market will never surpass the highs set on the 'blow off top' which may very well have been the highs we just set. We are already back to end of QE3 levels, proving once again that without money printing, stocks go nowhere but down

Oldwood's picture

Delusion's greatest enemy is truthiness. Truth is becoming more popular if not also more hated, and this will let the air out. People know its all fake but they choose to ignore that fact as long as they think everyone else will do the same. After all, why not when their economic gains are at stake. Reality always wins however and that inevitability is what people hear ringing in their ears.

Montani Semper Liberi's picture

Everyone around me is a total stranger
Everyone avoids me like a cyclone ranger
That's why I'm turning Japanese
I think I'm turning Japanese
I really think so.

 -The Vapors-

gaoptimize's picture

Do you know what the song is about?

Tall Tom's picture

And how do you like your open air prison?


Do you know what your life is about?

Ness.'s picture

the song is about jacking off.  Good Lord. Has everyone lost their fucking minds?  He squints (no round eye) when he cums... get it?  

Montani Semper Liberi's picture

 Yes, I know what the song is about. NoDebt's post put it in my head. I regret making such a frivolous post that ended up just below a comment that linked to the Bataan Death March. I had no idea that post was on the board. My apologies to all.

Tall Tom's picture

You are a PARTICIPANT in a Global Battan Death March.


The Cental Bankers and Governments are acting as the Japanese Troops.




And then you apologize..for being subjected to oppression, torture, and possible eradication?




You do NOT KNOW what that song is about.

Montani Semper Liberi's picture

I usually use my own words in a comment and not copy and paste, but here is the wiki reference to this song. I don't know exactly what set your ass on fire and start your rant. I was apologizing to anyone who may have lost a loved one or even lived though the Bataan Death March that was forced upon soldiers by the Japanese army. I thought my post's location was unfortunate and hence my apolgy.

From Wiki:

"Turning Japanese" was believed to euphemistically refer to masturbation—i.e. the act causing the man to squint and therefore resemble a Japanese person's eyes[1] or possibly, referencing the British slang word "Jap's eye" (the urinary meatus) and the act of turning referring to the process of masturbation—but the song's author Fenton denied that claim in an interview on VH1. "It could have been (turning) Portuguese, Lebanese, anything that fitted with that phrase. It has nothing to do with the Japanese...The first time the idea of masturbation came up was when we were touring America. It was written about that 'turning Japanese' was an English phrase for masturbation, which it wasn't. Guitarist Rob Kemp went on to say, "It's a love song about somebody who had lost their girlfriend and was going slowly crazy, turning Japanese is just all the cliches of our angst... turning into something you never expected to."


Tall Tom's picture

Look. We are living through a Death March.


Look around the globe.


The US Government is killing people...in droves.


It will soon happen DOMESTICALLY.


The Central Bankers policies are created so that the Bankers and Industrialists will PROFIT from this Death and Debt paradigm.


You are in JAIL. It is an open air prison with all of your rights suspended. You have NO RIGHTS according to your dictators and controllers. You are a Tax Slave.


The song is about JAIL. I do not care about the Wiki article.


You had best WAKE UP.

Montani Semper Liberi's picture

  How on earth do you get the idea that I'm unaware of all the points you are making in your post?

 Is it because I don't liberally use profanity and all caps in my comments? Perhaps it's because I don't use the command LOOK to start my comments and then make another command at the end that I had "best WAKE UP."

 You can color civility "weakness" if you like. I'm done with this thread.




DaddyO's picture

Wow Tall Tom, hope you didn't hurt yourself jumping to conclusions extrapolating MS' comments.

As a long time participant here on the hedge, I've followed your comments and regularly read them in their entirety.

This was not your best effort and you surprised me with the shallow and assumptive response.


MartyFlesh's picture

Snapping One Off :) Marty

GhostofBastiat's picture

The silicone chip inside her head gets switched to overload...

And he can see no reason
'Cause there are no reasons
What reason do you need to be shown?

Tell me why?
I don't like Mondays.

The Boomtown Rats

A pleasant little song about why mondays suck...

Not My Real Name's picture

Multi-year slow grind to be preempted this time by a currency crisis -- and then reset.

gatorengineer's picture

I cannot see how this is possibly going to go slow.  Another day or so and Hedgies will start blowing up.


The only news is for the move there was no volume.

TeamDepends's picture

Agreed. Simple non-Common Core math tells us we have forty or so -400 days before we hit the mythical Keynesian rock bottom.

J Jason Djfmam's picture

Can you please explain how you got your answer?

TeamDepends's picture

40 x 400 = 16000. DOW is currently 15,871. We explicitly said NON-Common Core.

TeamDepends's picture

Whu whuddayamean there is no such thing as non-Common Core math? Must have got off at the wrong stop. Everything looks weird here. Don't panic (run!!!).