One Millennial's Letter To CNBC

Tyler Durden's picture

Reader Ryan M sends us this.

Hey guys,

I just wrote this letter to CNBC, thought I would share.

Dear CNBC,

I'm a millenial with some cash to throw around. I've dipped my toes in the stock market this past year but after today's action, I have to say I'm done. Forever. Gone. Don't count on another dime of mine in the market.

There is so much that is infuriating about this market that it's hard to know where to start. Let me start here: the total BS open we witnessed today. And lest you think this is a letter from a whiner who sold out in the open only to see stocks ramp higher, think again. I sold nothing out but I also bought nothing. What infuriates me is that average people like me are hurt both ways when the market does its best flash-crash impression since, well, the flash crash... I'm sure countless little guys had their stops absolutely steamrolled this morning only to see the big guys scoop up the shares on a discount. It's disgusting. What's more then that is that the only "people" that can really take advantage in such volatility is HFT's. Any normal human being staying at his screen seeing the Dow down over 1k has to sit and think for a minute, "What the heck is going on? Is there something I don't know about?" Ask yourself those two questions and it's too late. You are either stopped out or you miss an opportunity to buy shares at a price you could only have dreamed of. A price that likely won't come again for you anytime soon. The only "people" who can react to those pricing distortions in real time are computers. This isn't a place for small time people like me.

What might be worse than this is that most of us are stuck at small discount brokerages that had major execution issues this morning including TDAmeritrade and Scottrade. Let's assume you are a human being who doesn't ask the two aforementioned questions and just sees the Dow down 1k and decides to throw a dart in the blind and just hit the buy button. Then your brokerage house can't get you an execution cause the little guys systems don't work.

Now, what absolutely sickens me is that the problems are completely underreported on your network. Nanex recorded 4,500 mini-crash events this morning. And yet as the Dow is presently rallying you are making it out as if the market truly recovered 800 points (and we'll probably close green!). We all know that the open was nothing short of a sham of epic magnitude and yet you have the gall to act as if all was normal and the market is now just on a torrid rally after being down 1k. It's not even bearable to watch. You are doing your viewers a massive disservice.

Finally, on a different subject, one thing that this Chinese Yuan devaluation has revealed is that nobody has any idea in hell what any asset is really worth. There has been such an enormous artificial edifice built up around the markets to propel prices (not markets) forward that the pricing mechanism is distorted beyond distortion (if that's even possible). The english dictionary needs a new amplified word to adequately describe the magnitude of the distortion going on in capital markets around the world due to central bank manipulation, lack of liquidity, HFT fraud and other chicanery.

The only reasonable thing that any little guy can do is sit back and say, "Wow there is a lot of distortion going on and I can't even guess at these prices." So what is there left to do? I think all people like us can do in order to once again put money in the market is to see a very large deflation such that multiples contract and we can be confident that the edifice has collapsed and we are therefore now much nearer to true price discovery. Every valuation metric is distorted, technical analysis is distorted because countries around the world are drawing lines in the sand of FX, bond and capital markets vowing to defend them. How can anyone believe the prices? They can't!

My advice to my generation if they would like to buy various assets is to just literally say to yourself, "Don't think about the price or what other people are paying. Just ask: 'What would I pay for 1 share of XYZ, knowing it has an artificial edifice around it?'" Then take a swing while flying blind and pray you hit it.

But until that is no longer the case, count me out. Me and my entire generation.


* * *

* * *

And in other news, this:

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JenkinsLane's picture

Where the fuck is Potter and the vol selling team at the NY Fed? It's fucking 3pm already.

El Oregonian's picture

The millenial just figured out that the markets are screwed? Boy, he's going to have to grow up very quickly if he plans to survive these coming days...

SafelyGraze's picture

what companies need to go ahead and do is, is issue more shares when the public loses confidence because of the devaluation of the share price

if that logic is not clear to you, don't worry

"Beijing ... is planning to flood its banking system with new liquidity to offset effects of its recent surprise currency devaluation, according to Chinese officials and advisers to the central bank."

let that sink in

a surprise devaluation followed by a flood of new "liquidity"

if your cash is devalued, print more of it

that will increase the value, since there is more of it

if your stock is devalued, issue more of it

that will increase the value, since there is more of it

OrangeJews's picture
OrangeJews (not verified) SafelyGraze Aug 24, 2015 2:18 PM

This shit's getting fun!  I'll be a little sad when it finally ends though... good times.

eatthebanksters's picture

Big company algos and HFT's running the day.  Wonder how profitable the dark pools are today...guessing they are making a fortune while everyone else gets their asses handed to them.  Will be very interesting to see if any if the HFT's have a break in their string of 'profitable days'....if not then you know something is really really wrong.

Tom Servo's picture

I have never seen such gyrations in the market, either that or my feed is having data issues...


boattrash's picture

Yep, we may soon see a rash of bloody sidewalks beneath some high-rise buildings...

aVileRat's picture

Betterment and Vanguard better lube up. It took 40 years for fund flows to eclips the volume adjusted heyday of the 1929 passive investing AUM's.


hailhillary's picture

" miss an opportunity to buy shares at a price you could only have dreamed of. A price that likely won't come again for you anytime soon."

Don't you worry little buddy.  That price will be back again, and again, and again before it ain't....

ZeroPower's picture

Work in S&T (general HFT sphere), morning had no liquidity, i agree, but that's all there is to it. FWIW, market is coming back down now, so don't let the 1000pt swing off the lows fool you... Noone forces anybody to invest in stoxxx.

Skateboarder's picture

Ryan M has made a very important distinction, something most "investors" do not understand about the current equities markets.

"This isn't a place for small time people like me."

Thank you sir for stating that point in the letter.

edit: still don't understand about the current equities markets. Sigh...

EscapeKey's picture

i frankly don't know why he bothers. cnbc are fully complicit in this outright fraud.

was it my stream, or did I really just see the DJIA rally 250 points off 700 in the space of a minute or two on the back of absolutely no news? i mean, seriously?

words really do fail me. how can anyone come to any other conclusion but someone at the PPT deciding to "rescue" the market again?


chubbar's picture

His letter is already a "fail" in my book and my bet is that in fact he will be back. Go back and read his final premise to this letter. He basically feels this was a "buy the dip" moment, not an opportunity to sell out on the ramp back up. That shows me that he thinks there is money to be made in the market being long. He is basically lamenting he can't buy stocks when they crashed this morning. He should be selling the shit out of this market and fuck what happens, even if it goes up 200% from here because of what he pointed out but didn't have the savvy to actually understand. The market is being propped up and valuations are unknown and largely unreasonable given what is happening in the world economy. Christ, I recommend he go back and read what he wrote.

Counterbalance's picture

Yup, I thought the same thing.

'Everyone else is getting rich for free and it's no fair I wasn't invited (but if you invite me, I'll come)'

Don't bet in the casino gulag, get out there and MAKE something. Quickly.

Skateboarder's picture

I quite enjoyed reading a ZHer comment that went along the lines of "the 'market' is a place where they update some numbers at random in some tables for a few hours a day."

Large sums change hands on extra-special-crony days like these.

Oldwood's picture

Why do we continue to refer to it as a market, as though we are going to buy somethng of ultility value or to consume, when it is anything but a market. It is a casino, a gambling hall, where people buy in with cash to buy plastic tokens of zero value used to demoninate their bets. Unless you have a stock that pays dividends, you own nothing but a gambling token that you hope some fool will pay more for than you did. If lying and deceiving are called for to get this done, it is still all the same. To pretend that there are rules and morals in this game is as silly as suggesting that there is honor amongst thieves. Thieves have no honor beyond what violence they can bestow on their betters. 


Buck Johnson's picture

This market is so rigged that even CNBC is being used for cover.



Lore's picture

Re: "CNBC are fully complicit in this outright fraud."  <-- Agreed. You might as well bitch to the driver for trucking booze across the border during Prohibition.

FUCK CNBC.  Cramer in particular needs a piano to land on his head. (Still accumulating BQI shares, you shitstained psychopath?)

Ckierst1's picture

Bullshit!  People are on a treadmill to preserve wealth because of inflation and fiat currency.  For many folks, particularly those with retirement accounts, stocks are a significant component of their palette of investment options.  It's a crying shame that the customarily accessible markets are so manipulated.  I quit trading the markets more than 5 years ago and started becoming real cautious for the 5 years before that when it was evident that ETFs and the PPT were altering the behavior of the equities markets profoundly.  Went physical and haven't looked back.  I can sleep like a baby at night.  Call me when the nail guns are empty and the lamp posts need ornaments.

Mintcoin's picture

Who uses stops in this 'market'?

Dethrone The Banksters's picture

well he still woke up; which is still better than 95% of the muppets out there 

slimycorporatedickhead's picture

I'm a millenial too. Don't cry on behalf of an entire age group just cause you gambled and lost. f off bud

laomei's picture

Figured that out already.  It's only worth playing when you have an inside.  I'd rather take my savings and dump it into actual investments.  fuck the market.

Headbanger's picture

Wasted effort writing the letter

Cause CNBC gets cancelled in a year.

Or even less.

HelluvaEngineer's picture

I'd take the other side of that bet.  Most networks operate at a loss.  They are kept going via the pentagon black budget.

TheReplacement's picture

The Ministry of Truth disapproves of your posting.  You have been put on the list.

HelluvaEngineer's picture

Sorry to burst your bubble but I'm already on it.

Divided States of America's picture

yeah well most people like Ryan didnt do jack the entire day...but the people in the know (Goldman prop desk) sure having a field day....(buy at 9:31....and dumped in the afternoon and shorted in the afternoon)

Its good Ryan finally figures out something I have been preaching for years...without sheeps like us, this market cannot function without the wolves trying to bite off one another.

Herd Redirection Committee's picture

That was probably discussed in a couple NY synagogues on Saturday, I bet...

bania's picture

Thankfully i didnt sell my Dow 15,000 hat at last year's garage sale.

MSimon's picture

Did you ever consider the the Joo this and Jew that was a false flag to cover the real criminals?


Well it worked in Germany 1933 to '45. Why not again?

mtl4's picture

Sad part is after we get a headfake downward later this fall and the market continues to make new highs after that you watch this poor chap eat his words and jump in for fear of missing out.

Unfortunetly in the end that is also how market tops are made and he'll be struggling to get out GW's famous quote......

“There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again.”
SheepRevolution's picture

Damn right Jenkins. I'm getting impatient over here as well...

Yohimbo's picture

boo fucking hoo the wittle millenial doesnt have mommy around to buy and sell his stawks for him and wipe hi wittle chin. 


boo fucking hoo



bnbdnb's picture

Better question to ask yourself. What are the power and money hungry sociopathic central planners doing with THEIR money? Act like them.

detached.amusement's picture

What did Smaug do with his?  Fuggin slept in it and killed anything that got close to it.


not a single coin

stant's picture

Glad I sold my Ashly Madison and sandals and bought Jim beam

Big Corked Boots's picture

Ryan gets it.

So few people do.

NoDebt's picture

That dude reads ZH.  No question about it.

bnbdnb's picture

Well obviously. He sent the letter to ZH.

NoDebt's picture

Yes, he sent ZH's first 4 morning stories to CNBC.  At least he transcribed them correctly.  I'm pretty sure CNBC already reads ZH, though.  They gotta know what to deny, ridicule and denigrate while they're on air during their day.

Mintcoin's picture

CNBC doesn't care. Entertainment only.

Solio's picture

Like the 60 cycle hum.

detached.amusement's picture

I kinda suspected that after reading the opening phrase!

KnuckleDragger-X's picture

Damned if you do and damned if you don't. It's a sad state of affairs.....

RawPawg's picture

CNBC losing that "street cred" faster than a PPT member losing all that back-up money.

Mike Honcho's picture

By the time this letter meets a mind worth comprehending the content, a lackey at that fiction factory will have tossed it.