US Equity Collapse Erases All Post-QE3 Gains As FANTAsy Stocks Plunge

Tyler Durden's picture




 

But, but, but... it's not a market-driven only by The Fed, right?

 

All major US equity indices (except Nasdaq and its FANTAsy stocks) are now deep in the red since The Fed stopped QE3...

 

Since the start of December stock have been dumped...

 

But FANTAsy stocks are collapsing so far in 2016...

 

As once again, the S&P 500 catches down to The Fed's balance sheet...

 

But it's the fundamentals right?

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Wed, 01/06/2016 - 10:01 | 7004488 LawsofPhysics
LawsofPhysics's picture

We do just fine. Most people do not understand the concept of "no risk no reward".

(unless of course you can simply print or get a bailout).

Eventually the moral hazard of the blatant fraud will catch up with the world and it will be a real motherfucker.

hedge accordingly.

Wed, 01/06/2016 - 10:21 | 7004559 orangegeek
orangegeek's picture

Cool.  

 

I really don't think there is anything left you can hedge with / perhaps some short term "options insurance"/PMs.

 

And yes, it's going to be riots in the streets.  Ammo (as well as hedge) may also be helpful.

Wed, 01/06/2016 - 09:44 | 7004398 holgerdanske
holgerdanske's picture

As long as the FED can print money at will, and as long a people will accept that, they will manipulate the stockmarket.

It will only stop when people revolt.

Wed, 01/06/2016 - 09:47 | 7004417 potemcam
potemcam's picture

You clearly don't understand how the Fed works if you believe that it can 'print at will.' All funds must be loaned out, and those loans must be backed by assets, assets which are convertible into any other asset class.

The money doesn't simply get printed and then get thrown around like it's confetti. 

Wed, 01/06/2016 - 10:01 | 7004487 holgerdanske
holgerdanske's picture

No, it is not thrown around like confetti. It is given to the pillars supporting the status quo and they get the use of it at the cost of the rest of society.

The inside information and the privileged treatment they get is worth millions, on top of that.

 

 

 

 

 

 

 

 

 

Wed, 01/06/2016 - 10:05 | 7004502 potemcam
potemcam's picture

It is given to the pillars supporting the status quo and they get the use of it at the cost of the rest of society.

Could you possibly give me some more ZH babble and double-speak that is completely non-sensical and opinion based? It's amazing how quickly a ZHer's argument disintegrates into nothing but childish conspiracy theories upon even the simplest of challenges.

Wed, 01/06/2016 - 10:28 | 7004589 Rapelomacy
Rapelomacy's picture

Let me help you understand what the fuck he is saying.

 

Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is exercised by its board of directors. 12 U.S.C. § 301. The directors enact by-laws regulating the manner of conducting general Bank business, 12 U.S.C. § 341, and appoint officers to implement and supervise daily Bank activities. These activities include collecting and clearing checks, making advances to private and commercial entities, holding reserves for member banks, discounting the notes of member banks, and buying and selling securities on the open market. See 12 U.S.C. §§ 341-361.

Wed, 01/06/2016 - 10:01 | 7004490 jakesdad
jakesdad's picture

"those loans must be backed by assets, assets which are convertible into any other asset class"

 

& this is enforced by whom?  and/or quantity/value of said assets audited by whom?  I mean granted, the banking industry has such impecibile credibility when it comes to legal compliance & asset valuations so those must seem like ridiculous questions...

Wed, 01/06/2016 - 10:19 | 7004551 potemcam
potemcam's picture

this is enforced by whom? 

 

For the most part, it's difficult walking into a bank and asking for a million dollars without an asset to offset the risk of loaning the money. However, your point is salient. If people give money away without backing a loan with any equity, the system will break down.

 

Wed, 01/06/2016 - 10:31 | 7004604 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 12:27 | 7005365 bnbdnb
bnbdnb's picture

If you are a sociopath who gets a golden parachute and an island all to yourself and your family, WTF would you care?

Wed, 01/06/2016 - 10:06 | 7004498 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Jesus! Go watch Mike Maloney on the basics of the fractional reserve system and where currency comes from when you take out a loan.

Then come back, or rather just stay away.

Wed, 01/06/2016 - 10:17 | 7004547 potemcam
potemcam's picture

All loans are backed by assets. If there is no asset backing the loan, the loan isn't given. Stop believing that Mike Maloney garbage. If you look at only one side of the balance sheet, you're only getting half of the story. Look at both sides and get the whole story.

Wed, 01/06/2016 - 10:52 | 7004710 holgerdanske
holgerdanske's picture

"All loans are backed by assets. If there is no asset backing the loan, the loan isn't given. Stop believing that Mike Maloney garbage. If you look at only one side of the balance sheet, you're only getting half of the story. Look at both sides and get the whole story."

Indeed, and the quality of the "assets" are determined by how serious the banking risk is. When things get tough, they will accept anything as colateral to prevent bank and sovereign defaults.

And, to boot, no fiat currency has ever, ever! lasted. The longest at the moment is most likely the Pound, and that is a thin shadow of what it used to be, and so is the Dollar!

The system is a fraud.

 

 

Wed, 01/06/2016 - 11:00 | 7004774 potemcam
potemcam's picture

And, to boot, no fiat currency has ever, ever! lasted.

I guess that depends on what you mean by 'lasted.' Gold as a currency didn't last either, now did it? 

 

 

Wed, 01/06/2016 - 11:04 | 7004808 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 11:05 | 7004813 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 11:40 | 7005064 bnbdnb
bnbdnb's picture

The loans on equity are the problem.

Wed, 01/06/2016 - 12:06 | 7005237 potemcam
potemcam's picture

I know Cuba implemented a no-credit policy. Is that what you're recommending? What types of other loans are there other than ones based on equity?

Wed, 01/06/2016 - 12:29 | 7005377 bnbdnb
bnbdnb's picture

You know...

Loans on collateral on things that actually exist. Like a house, car, etc.

Wed, 01/06/2016 - 14:13 | 7005890 potemcam
potemcam's picture

So you want loans on houses, but not houses that have equity in them? So loans on houses with zero equity?

I guess you were speaking more about equities, like financial documents, as opposed to assets in which the owner has equity. I agree with your point assuming that was the point being made. If so, you made it correctly, I just interpreted in incorrectly.

Wed, 01/06/2016 - 14:20 | 7005928 bnbdnb
bnbdnb's picture

You got it.

Wed, 01/06/2016 - 12:56 | 7005354 _ConanTheLibert...
_ConanTheLibertarian_'s picture

This 100% confirms you're a troll. Fuck off you douchebag!

Wed, 01/06/2016 - 11:05 | 7004821 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 09:49 | 7004425 Youri Carma
Youri Carma's picture

FANTAsy stocks (Facebook, Amazon, Netflix, Tesla, and Alphabet)

Wed, 01/06/2016 - 09:50 | 7004429 BeaverCream
BeaverCream's picture

IT WILL GO UP FOREVER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Says the man behind the curtain.

Wed, 01/06/2016 - 09:54 | 7004446 LawsofPhysics
LawsofPhysics's picture

Yes...

...of course the purchasing power of the currency that it is priced in will be crushed...

Wed, 01/06/2016 - 10:00 | 7004483 Thisisbullishright
Thisisbullishright's picture

PPT will get this thing in better shape in the next hour or so...

 

Wed, 01/06/2016 - 10:08 | 7004515 Mark Mywords
Mark Mywords's picture

Selling over. Please return your equity markets to their fully-upright positions.

Wed, 01/06/2016 - 10:09 | 7004517 the not so migh...
the not so mighty maximiza's picture

Too much crying and selling

 

Wed, 01/06/2016 - 10:17 | 7004548 fowlerja
fowlerja's picture

Janet.... I think we are going to need you at 3:30 today....please have your printing press greased and ready to go... I might be a dip-shit but I am going to buy on the dip knowing you have my best interest at heart....thanks and a merry knew yur to u and ur family... on no..I ar afraid

Wed, 01/06/2016 - 10:19 | 7004552 I AM SULLY
I AM SULLY's picture

We're very near turning this thing around ...

(just one more "recovery summer" is all we need)

(and then we'll be there)

https://www.youtube.com/watch?v=VlVmdGiAH2A

Wed, 01/06/2016 - 10:21 | 7004556 Peak Finance
Peak Finance's picture

Sorry off topic (or is it?)

Fucking hasbrats EVERYWHERE (lots of threads here and not just this board) today, WTF? 

Was today payday for them or something? Maybe their bounuses (which are calcualted by the number of posts they make) ends tonight?

Panic in the air so re-double propaganda efforts? 

Wed, 01/06/2016 - 10:46 | 7004682 Pareto
Pareto's picture

Looks like they're doing just awesome from where I'm sitting.....  

 

PPT will never let these fuckers go down.  EVER.

 

its that simple.

Wed, 01/06/2016 - 11:08 | 7004843 Goldbugger
Goldbugger's picture

It's not China, it's not Korea's nuke. Blame the FED.

Wed, 01/06/2016 - 11:22 | 7004944 jakesdad
jakesdad's picture

& we have 2k!

 

thank you, ppt!

Wed, 01/06/2016 - 11:36 | 7005028 BeaverCream
Wed, 01/06/2016 - 12:35 | 7005417 robertocarlos
robertocarlos's picture

People who buy gold are not the winners. I saw Battlefield Earth.

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