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After Q3's magic...
Q4, we have a problem...
Just keep hoping.
h/t @Not_Jim_Cramer
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Q4 looks like Q3.
Brother, can you spare a dime?
Or, indeed, ANY quarter. Start with a high projection, halve it then adjust down as necessary. But NEXT quarter will see the economy really take off. Always NEXT Quarter...the ginat hockey stick game of wait and hope, whilst promising interest rate hikes...NEXT time, of course. What a complete joke this all is BUT The Fed and the TBTF's ARE the "Markets" so it continue like this for a long time because there is nobody other than the latter to sell, and they aren't going to....
Isn't it WONDERFUL that the market will never be allowed to drop?
The disconnect has never been wider. It will continue to widen.
Reality always finds a way in. The minds set is those guessing when vs. those preparing for when, Those guessing assume the game continues afterward............
Zerohedge is cursed. There will never be a recession or a stock bear market in the US because ZH exists.
"We don't need a recession, therefore, we won't have one."
Famous quotes of dead eCONomists.
At some point in the next few years, ZH is going to throw in the towel and say, "well, everything looks great after all. I guess the bulls were right all along."
And the next day, the market will crash 50%.
Or yellen will run out digits and paper....and law of darwin(or version of the French Revolution) will visit economics
This is why it's so much fun to watch somebody think a 1950's car with fins can actually fly, as they drive it off a cliff. Yep. The market is the new economy. How else can you have socialism, with everybody sitting home waiting for a check and nobody working?
We... have a Problem ? There is no WE in FED.
Zero Hedge should do one whole day of Good news, Rosy Speculation, Fluff Dreams and Unicorn Estimates. Things would crumble then...
What could go wrong?
Rat shit, bat shit, dirty old Yellen twat.
69 banker assholes tied in a knot.
Yea, lizard shit, fuck.
It just keeps going up. Fuck.
I know that rhyme- use to say it, in the locker room, before football games at my high school.
I remember the rest of it, goes like this: ...hey team say team what we gonna do, eat some butt fuck nibble gobble chew.
Sound familiar?
I know it's absolutely ridiculous sounding- thought so at the time too. But, it was the chant to get us players fired up that had been handed down for who knows how long, we didn't create it.
We did get State Runner-up one year.
Hard to beat 'em when they make the rules.
They keep propping the speculative economy up... moral hazard. malinvestment. It's all so very sick.
As the mkt returns to near record levels consider these two stories that broke in Upstate NY -
1) Alcoa to end smelting operations and cut 487 jobs
http://www.watertowndailytimes.com/news05/alcoa-decision-to-end-smelting...
2) 600 jobs at risk from Entergy closure of Fitzpatrick nuclear plant.
http://www.nytimes.com/2015/11/03/nyregion/entergy-to-close-nuclear-plan...
I think you can draw a straight line from Fed policies to these results
* ZIRP = over investment in nat gas industry and that made an old nuke plant not economically viable
* ZIRP = global over investment in aluminum mining/refining = US company that can't be competitive.
Makes perfect sense. Eliminate jobs, shrink the company, load up the balance sheet with zero-interest debt and buy-back your own stock. Shareholders are happy. Stocks are up. Wall St is happy. The magic of QE. Who knew?
This is the fallout of Fed policy. They now get to decide who will be winners and who will be losers, and in doing so they've totally destroyed the ability to determine where one might be able to profit from an investment.
Free borrowing has extended zombies as far as the eye can see. As long as they can borrow at near zero rates their faulty business models will work, the natural market signals that should tell people that certain projects are not viable have been destroyed.
The problem with the destruction of the market though is that the free money cannot be terminated without significant pain and suffering. If rates go up the faulty models are exposed for what they are - malinvestment. Fortunately however, all things that cannot go on forever end. Every day brings us a little closer to that end point.
I am convinced the stock market is being propped up by the Federal Reserve buying stocks via their proxy primary dealer banks. Call is stealth QE. They already buy bonds, so why not stocks too? They are unaudited so there is nothing to stop them. There is no other logical explanation for these rallies based on bad economic data. This needs to be investigated.
Audit the Fed immediately !!
When you say "audit the Fed immdiately" who exactly are you talking to?
That fat cunt yellen will never get audited until that communist barry ends term.
Obviously, that's all the Central Banks know about, and Governments only ask the Central Banks how the eCONomy is going. And as long as people that don't have money have to borrow from Banks that can just create money out of thin air with no consequences or charge, everything's honkey donkey.
An excellent interview with Druckenmiller indeed. Many signs of a bear market and sentiment driving markets. CJ's take:
http://crackerjackfinance.com/2015/11/on-sentiment-how-the-market-mini-c...
A rally from a sharp correction is different than a rally from a stable base.
It is time to revisit the issue of complacency, many people have been lulled into this state by the extraordinary actions central banks and governments have taken since 2008. In what most of us view as a fast moving world many people have come to think if a financial crisis doesn't occur today or in the next few weeks it is simply not going to happen at all.
The much loved theory that we will be able to grow our way out of our difficulties and muddle through is a bit simplistic and much overused. Artificially low FED controlled interest rates are a massive "one-off" or onetime tailwind that should be considered mainly behind us. The article below delves into why such a policy is bringing diminishing returns.
http://brucewilds.blogspot.com/2015/10/complacency-in-face-of-slowing-economy.html