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And Now, For Some Semblance Of Sanity, Here Is One Hour Of Hugh Hendry

Tyler Durden's picture


After today's ridiculous move in the market, which brings back memories of either August 2007, March 2008, the reaction after the Tarp vote (the successful one), August 2011, when the market gyrated by 400 points on a daily basis, and many more bear market rallies, we hope to restores some semblance of normalcy by presenting the following series of clips all from Hugh Hendry speechs at the LSE's Alternative Investments Conference earlier this year. Must watch, because when everyone loses their mind, listening to some common sense is the best remedy.

Part 1, in which he discusses the generational shifts in attitudes towards leverage, concluding "Really I should be attending the Young Farmers Society as opposed to the LSE"

Part 2, in which he discusses his misgivings for the enthusiasm towards China, noting that "if you're spending money without the intent of any economic return, then you're spending money poorly". This is particularly notable after earlier today China explicitly warned that it does not want to be seen as the dumb money. Sorry China, if you look around the table and you don't see the dumb money, you are it:

Part 3, in which he denotes his views on currencies: "I think the Yen could appreciate greatly, I also think the dollar could appreciate greatly... you actually create a shortage of yen and dollars in an environment where asset prices are falling... that's all a precursor to then wanting to buy oneTouch Nikkei calls at 40'000, 50'000, 60'000..."

Part 4, in which he busts the bubble of anyone who claims they can predict anything: 'We spend so much time, resources and money trying to see the future - really we're spending money trying to delude ourself. You have no chance of seeing the future, it's better to recognise that'

and finally Part 5, in which he does an amusing word association game:

h/t GreshamsLaw


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Thu, 10/27/2011 - 16:37 | 1818627 speconomist
speconomist's picture

Finally! Couldn't attent the conference, so glad it's on Youtube!!!


Panic recommended to all of you!

Thu, 10/27/2011 - 16:41 | 1818642 bernorange
bernorange's picture

What, me worry?

Thu, 10/27/2011 - 16:55 | 1818682 DormRoom
DormRoom's picture

Hugh Hendry should be worried.  He owned a lot of European Soverign CDS in his portfolio

Thu, 10/27/2011 - 17:01 | 1818695 Ahmeexnal
Ahmeexnal's picture

A couple days ago Merkel threatened europe with war if her europroject was not bailed out.
When will the enlightened democracies of europe learn that appeasement does not work with the dark lord of Mordor?
J.R.R. Tolkien warned us about germany in his epic Lord of the Rings. Sadly, few readers are able to understand his true message and can't get past the elves and hobbits.

Thu, 10/27/2011 - 17:21 | 1818751 knukles
knukles's picture

He has elves and hobbits in the story?  I gotta think deeper...

Thu, 10/27/2011 - 21:17 | 1819417 anynonmous
anynonmous's picture

no knuckles, there is  no need to think deeper

you might injure yourself

Thu, 10/27/2011 - 22:35 | 1819590 franzpick
franzpick's picture

On the contrary: you may injure yourself by not thinking deeper about today's upward explosion in equities, PMs and materials (see XLB for one example), which together may be viewing the 50% greek haircut as the beginning of the end of wasteful government taxing, borrowing and non-productive spending.

My screens say today's upside markets may be abruptly discounting the potential employment and earnings gains that may result from getting government out of the way of a business recovery.

Today's euro bad-greek-debt haircut principles may soon be seen to apply to worldwide legacy debt hangovers in piigs, u.s. and all countries whose bankers and administrators willingly fell victim to decades of unsustainable credit-binge debt-growth economics.

DJIA, SPX and NAZ stock indices heading to 15,000, 1500 and 3000, and metals recovering to AU $2000, AG $50 and Dr. COPPER 4.50, and higher, will confirm the upcoming power of a business recovery freed from decades old tax-borrow-spend government regulatory interference.

Anticipating such a business recovery, in the face of crushing legacy debt and failing top and bottom line business revenues, is certainly a stretch, but discounting is what equity markets do best, if not wisely, but too well.

Thu, 10/27/2011 - 23:29 | 1819768 steve from virginia
steve from virginia's picture


Are you drunk?

Fri, 10/28/2011 - 00:36 | 1819893 Oh regional Indian
Oh regional Indian's picture

I think Hopium is the new high. In a few months, Hohohopium.

The downer is called NoHopium.


An Indian Tries the Blues

Fri, 10/28/2011 - 00:45 | 1819908 The Big Ching-aso
The Big Ching-aso's picture

Cut back some on the peyote dosage.   Either that or just take a break entirely.

Fri, 10/28/2011 - 04:14 | 1820041 Non-Zero
Non-Zero's picture


I gave you a +1 for this, but you need to make it clearer that the money to prop up the stock market, PMs and commodities will come from bonds, otherwise people will not understand why it's happening.

e.g. People lose faith in governments, so they shift money out of bonds and into private assets (especially gold, silver and the stock market).

If the governments can arbitrarily cut your bond value in half, and you can't insure it with CDS, you're going to want to put it somewhere they can't touch it.

Thu, 10/27/2011 - 22:37 | 1819597 gangland
gangland's picture


Neoliberalism has failed even to come close to, let alone achieve, the
growth rates of the golden age of Keynesianism in the 1960s (Harvey 2006).

Thu, 10/27/2011 - 22:39 | 1819607 gangland
gangland's picture


"which raises
a serious question about how it has maintained legitimacy in the
face of its own failed raison d’être – to ensure wealth for all through
market efficiency.


Thus it is pertinent to consider the core contradiction
underpinning the seeming collapse of neoliberalism:


extent to which the current crisis is tied to the very foundations on
which neoliberalism was built,


namely the expansion of finance
capital and the associated housing and stock market booms of
the 1990s and 2000s."



Thu, 10/27/2011 - 22:41 | 1819609 gangland
gangland's picture


"There is a terrible irony in the fact that neoliberal policies of
privatization, marketization and liberalization over the last 30+

have produced proceeds with a monetary value (€1.3 trillion)
that is only twice the recent bank bail-outs by the US and European
governments (see Hall 2008: 6)."

Thu, 10/27/2011 - 22:43 | 1819619 gangland
gangland's picture


"Who then benefited from this economic order?

We can
point fingers at the bankers, as government have found it politically
expedient to do, but


we have also to acknowledge that the
financialization of the global economy has gone hand in hand with
property booms that have effectively enrolled citizens in the
expansion of neoliberalism –

a windfall largely limited to citizens in
the Global North, it must be stressed.

For example, Matthew
Watson (2008) argues that as individuals have been incorporated
into the British housing market, which was (and still is) dependent
upon ever-increasing house prices, they have been remade politically
as ‘monetary conservatives’, (TEA PARTY) more concerned with inflation than
welfare spending. More generally, Stuart Hall (2003: 10) argues that
‘a new neoliberal common-sense’ has ‘colonized’ civil society."

Thu, 10/27/2011 - 22:45 | 1819632 gangland
gangland's picture

"What is evident in this mess is that the conceit at the heart of
neoliberal thought has been exposed.

The very idea that markets are
self-organizing, efficient and liberating is no longer credible, but
illustrates the extent to which neoliberalism

– as shorthand for
market-like rule –

is an economic, political and ideological project
pursued by certain groups (such as governments and corporations)

to construct a reality that is perceived to be founded in the inherent
properties of economic markets.

This circular reasoning has
replaced any sense of what we ought to do to achieve democratic
goals and ambitions with a logic built on the perception of the
inherently good and essential qualities of markets.

Thus morality
and ethics have been turned right way up in response to the ‘natural
law’ of economic exchange in which the rich can buy more freedom
than the poor."

Thu, 10/27/2011 - 22:44 | 1819627 akak
akak's picture

I have to disagree with you.

Thu, 10/27/2011 - 22:45 | 1819634 akak
akak's picture

And so do I.

Thu, 10/27/2011 - 22:46 | 1819636 akak
akak's picture

And me too!

Thu, 10/27/2011 - 22:46 | 1819640 akak
akak's picture

You've really hit the nail on the head there Akak!

Thu, 10/27/2011 - 22:47 | 1819645 akak
akak's picture

We concur as well.

Thu, 10/27/2011 - 22:48 | 1819650 akak
akak's picture

I think that settles the issue.

Thu, 10/27/2011 - 23:48 | 1819801 Calmyourself
Calmyourself's picture

I do not always agree with you but no one can doubt your entertainment value.  I will drink beer with you and buy! 

Fri, 10/28/2011 - 00:16 | 1819854 akak
akak's picture

Thanks for the thumbs-up CY!

I does what I cans.

Fri, 10/28/2011 - 00:17 | 1819856 akak
akak's picture

So do I!

Fri, 10/28/2011 - 00:18 | 1819860 akak
akak's picture

And me too!

Thu, 02/23/2012 - 02:17 | 2188007 haibop
haibop's picture

me too silver

Fri, 11/11/2011 - 00:37 | 1868971 haibop
haibop's picture

New theory man... memory foam

Thu, 10/27/2011 - 17:21 | 1818752 Josh Randall
Josh Randall's picture

Blood in the streets in the town of New Haven

Thu, 10/27/2011 - 18:34 | 1818931 NotApplicable
NotApplicable's picture

That's just how he rolls.

Thu, 10/27/2011 - 21:02 | 1819378 rocker
rocker's picture

 Speaking of rolling as the article says, 'After today's ridiculous move in the market' one can surely say it was to burn shorts. Still 100% Cash.

 Patience is a good thing in crooked markets. About 15 years ago I took a free 2 day class about markets and how stocks work and why.

Actually they wanted to sell me their stuff. Did not buy. But they did offer some great fundamentals that are almost certain.

They taught stuff like principals, one being that the market will cause as much pain and take as much money as it can.

Another thing they taught was how to not be caught in a market trap. It focused on "Gaps".  They said that almost all the time the market

will return to the level where a "Gap" is and it is a good way to protect yourself and use them for opportunities.

Well today, I ask, did the market burn any shorts and cause any pain?  And in the ramp up, how many stocks were gapped up?

That is why, as tempting as it was I bought shit from Goldman's HFT machines ramp job. Almost every stock that I would consider buying was

gapped up.  To me, from that class years ago, this market will cover all those gaps.

Heed the warning that the market on a day like this is a fools rally if your sucked in to the sucking sound of the Squid, Goldman Sachs.

Fri, 10/28/2011 - 17:14 | 1822684 morkov
morkov's picture

on video 2 :   

real estate is not THE ONE market return on China's books

Mon, 11/14/2011 - 21:05 | 1877722 haibop
haibop's picture


Sat, 12/24/2011 - 03:16 | 2008930 haibop
Thu, 10/27/2011 - 17:24 | 1818759 Börjesson
Börjesson's picture

"As for any inner meaning or 'message', it has in the intention of the author none. It is neither allegorical nor topical. [...] The real war does not resemble the legendary war in its process or its conclusion. If it had inspired or directed the development of the legend, then certainly the Ring would have been seized and used against Sauron; he would not have been annihilated but enslaved, and Barad-dûr would not have been destroyed but occupied. Saruman, failing to get possession of the Ring, would in the confusion and treacheries of the time have found in Mordor the missing links in his own researches into Ring-lore, and before long he would have made a Great Ring of his own with which to challenge the self-styled Ruler of Middle-earth. In that conflict both sides would have held hobbits in hatred and contempt: they would not long have survived even as slaves."

- J.R.R. Tolkien, Foreword to The Lord of the Rings, second edition

Thu, 10/27/2011 - 18:03 | 1818860 Bring the Gold
Bring the Gold's picture

I had this precise passage in mind when I read that silly tripe from the caveman above. What's funny is I've seen Ax go after both Jews and the Germans. Lol. Tolkein's forward is so spot on it's amazing. Hobbit genocide/ (debt) enslavement would have definitely been discussed at the council of Elrond lol.

Thu, 10/27/2011 - 22:53 | 1819666 Crisismode
Crisismode's picture

That is an amazing capture of information from J.R.R.T.



Sun, 12/11/2011 - 20:00 | 1968565 haibop
haibop's picture

fully agree... electric fireplace

Sat, 10/29/2011 - 10:56 | 1824150 Davilis
Davilis's picture

Hobbits are the 99%.

Thu, 10/27/2011 - 17:29 | 1818769 spartan117
spartan117's picture

But the germans build such cool cars. 

Thu, 10/27/2011 - 17:31 | 1818777 knukles
knukles's picture

Talking about allegories, I once bought a BMW which had tires made in Israel. 

Thu, 10/27/2011 - 18:15 | 1818894 Pladizow
Pladizow's picture

Did you hear about the new Israeli tires called Firestein's?

They stop on a dime and pick it up!


What's the diffrence between a cactus and a BMW?

A cactus has its pricks on the outside!

Thu, 10/27/2011 - 21:56 | 1819493 Rome is burining
Rome is burining's picture

The Jews have two things going for them: they are thrifty and there's Genesis 12. Yes, I have some Cohen a few generations back!

Thu, 10/27/2011 - 23:02 | 1819690 LasVegasDave
LasVegasDave's picture

why cant they keep Jews in jail?

They eat lox

And for all the latent and patent anti-semites on the board, feel free to substitute "Wall Street Bankers"  for "Jews"

Sat, 11/19/2011 - 14:33 | 1894302 haibop
haibop's picture

and great quality too walk in freezer

Thu, 10/27/2011 - 18:46 | 1818958 spankfish
spankfish's picture

I want to get invaded by big breasted beer garden maidens.

Thu, 10/27/2011 - 18:58 | 1819006 Freddie
Freddie's picture

Amazing that idiots junked you. 

Thu, 10/27/2011 - 19:27 | 1819100 Slipmeanother
Slipmeanother's picture

Rubbish, learn to read before commenting on what she said

Thu, 10/27/2011 - 20:07 | 1819232 disabledvet
disabledvet's picture

a little light...if it's coming from a guy named Gandalf...goes a long way indeed. For all the others it's just heat lightening.

Thu, 10/27/2011 - 20:45 | 1819325 BandGap
BandGap's picture

Is Merkel and elf or hobbitt? I'm confused.

Fri, 10/28/2011 - 04:47 | 1820056 Raging Debate
Raging Debate's picture

Merkel is a Dwarf talking about cutting off her nose to spite her face. She also talks about how Elves are less then Dwarves so it's all good.

Sat, 03/10/2012 - 00:46 | 2242515 haibop
haibop's picture

right SurveysPaid

Thu, 10/27/2011 - 20:53 | 1819352 Crack-up Boom
Crack-up Boom's picture

Actually, Tolkien was a Catholic who was writing Catholic themes and beleived he was not writing about Germany.  But The Lord of the Rings sure does read that way in retrospect.  Is it more important what the auhor says about his own work or what subsequent generations say?

Thu, 10/27/2011 - 22:20 | 1819541 Fate
Fate's picture

Surely Obama is Saruman, a finger of the claw of Mordor (Wall Street), a traitor of many colors who rose to prominence partly through the power of his voice.

I would love to see williambanzai7's take on that!

Fri, 10/28/2011 - 02:03 | 1819972 quacker
quacker's picture

There are no Jews in Mordor, you could be on to something.

Fri, 10/28/2011 - 02:59 | 1820002 Hobbleknee
Hobbleknee's picture

Elves and hobbits?  I thought those were Eurofags.

Thu, 10/27/2011 - 22:46 | 1819642 G-R-U-N-T
G-R-U-N-T's picture

Another hell of an interview...Bert Dohmen of the Wellington Letter..about Bank of America and JP Morgan  shifting 154 trillion dollars worth of losses when derrivitives start imploding to the U.S. taxpayer.

Thu, 10/27/2011 - 16:50 | 1818668 Unprepared
Unprepared's picture

Has this been approved by the Ministry of Truth and Propaganda?

Thu, 10/27/2011 - 17:59 | 1818845 Dapper Dan
Dapper Dan's picture


Does Money Equal Debt?


For large data we can take advantage of the finite speed of propagation and observe that the data is in effect small if restricted to a ball of sufficiently small radius. Consequently we can use Theorem 1 to obtain.


Theorem 1:  Money = Debt

A critical part in the proof of our result is the choice of the space-time

function spaces where we look for the solutions. The longer this goes on the worse things will get.  There are two ingredients required in the definition of our spaces, namely the structure of the dyadic pieces and the Besov type norm used for the summation of the dyadic pieces.  We use the notations (M/D) for the space-time variables and (_F.U., _ ) for the corresponding Fourier variables.


The power of D indicates how many derivatives we add (i.e. n/2). To be precise, the functions in the space F are uniquely determined modulo polymomials.

To resolve this ambiguity we restrict the space F to functions which

have limit 0 at infinity. 

  I want to now keep the notation simple for the lay people and imbeciles, please allow for a small increase in the size of deficit and off balance sheet equations as they are transitory, and counterfactual.


The support of the Fourier transform of F_ functions). Now we use Theorem 3 To decompose the F_ elements into a component with Fourier transform supported Within a distance ? from the cone and a component at least O(?) away From the cone, stay away from the cone for god’s sake.


Since both fixed point arguments give continuous ambiguous dependence on the interdependent data, we can now solve this problem. Do I have your attention?

We can argue that the solutions in the F/U situation is that we have produced nothing and spent everything.


We need a strong limit of smooth solutions to the equation.

I don’t think anything could be clearer,



I can be reached @ 911-455-9899

P.S.   Is the above comment any less farcical than the crap the financial leaders in Europe are releasing on a daily basis?


Fri, 10/28/2011 - 05:00 | 1820074 Raging Debate
Raging Debate's picture

Dapper Dan this sounds more like my posts :) But mine are simple and have been understood now for four thousand years. A pyramid, a square, a circle. It's geometry and the tools we build like a government, a building or a computer. These tools reflect our accelerating evolution.

You can put these shapes to numbers if you want too like 333, 666 for structures/tools of their day or apply them to today like 3333-4444. The numbers/structures/tools mean the same thing. Only the priests of finance of the last 250 years has convinced you to ignore evolution and their symbolic representation in numbers.

4d world. We are 99.1% of the way there. Math doesn't lie we juat want to keep pretending emotion can overcome reality. And my number is 603-953-3388. I am an American thanks.

Thu, 10/27/2011 - 17:01 | 1818701 IQ 145
IQ 145's picture

Sold FCX today, Freeport McMoran Copper and Gold mining, at $42.75 on the close; bought on Oct. 4th. @$30.39 at 8:42AM HST. Aways like to see Hugh Hendry.

Thu, 10/27/2011 - 17:10 | 1818721 Turd Ferguson
Turd Ferguson's picture

Would it be possible to amend the U.S. Constitution to allow for a Scotsman to run for president?

Thu, 10/27/2011 - 17:23 | 1818754 knukles
knukles's picture

Turd, anybody can run for president.  And looks like most anyfuckingbody who runs can be seated as well, regardless.

Thu, 10/27/2011 - 17:48 | 1818814 Turd Ferguson
Turd Ferguson's picture

No, you have to be a natural-born U.S. citizen to be president.

Thu, 10/27/2011 - 18:02 | 1818856 Gene8696
Gene8696's picture

Guess that precludes Cesarean Section?

Thu, 10/27/2011 - 18:42 | 1818949 Ahmeexnal
Ahmeexnal's picture

If a Kenyan ran and won, why couldn't a bagpiping highlander?

Thu, 10/27/2011 - 19:49 | 1819172 knukles
knukles's picture

'cause white men can't run?

Fri, 10/28/2011 - 07:12 | 1820165 Oh regional Indian
Oh regional Indian's picture

Can't run, can't dance, what are they good for Knuckles?


Fri, 10/28/2011 - 17:26 | 1822748 knukles
knukles's picture


Thu, 10/27/2011 - 19:50 | 1819181 knukles
knukles's picture

Really, now.  When did that change?

Thu, 10/27/2011 - 17:39 | 1818794 tmosley
tmosley's picture

No need, because as we all know, no true Scotsman would run for President.

Fri, 10/28/2011 - 02:23 | 1819980 Bananamerican
Bananamerican's picture


but vice-president now.....ach, therrrrr'es a job!

Thu, 10/27/2011 - 17:47 | 1818812 azzhatter
azzhatter's picture

as opposed to the kenyan we currently have?

Thu, 10/27/2011 - 18:10 | 1818881 natty light
natty light's picture

and his kenyensian economics

Sat, 11/26/2011 - 11:34 | 1915073 haibop
Thu, 10/27/2011 - 18:08 | 1818850 gangland
gangland's picture


"a political model which has pure groundings in [Monetarist Neoliberal] economics" = Eu Fail

failure of the purely quantitative over the absolute rejection of the qualitative, simply for the maximization of unjust enrichment via unlawful contracts (TARP, LISBON etc), control fraud, regulatory capture, pure rank fraud at every single level of society.

I fucking hate optimists.


From Europe at Bay: In The Shadow of US Hegemony Cafruny & Ryner 2007


The successful launch of the euro initially quieted skeptics who had
warned that a monetary union bereft of political union was inherently
unstable (see, for example, Milward, 1994; Anderson, 1997).

Yet, by 2004,

a prolonged period of stagnation and mass unemployment compelled
first Germany, then France, and finally Italy to breach the walls of the
Growth and Stability Pact, thereby exposing the very contradiction of
which the skeptics had warned.


The so-called reform of 2005 rendered the pact,

in the words of the Financial Times, “practically worthless”(2005a: p. 12),

revealing underlying conflicts of interest among the member states in the eurozone and provoking demands for the renationalization of monetary policy in some quarters,

amid predictions of impending collapse.1


notwithstanding the United States’ own cascading political
and economic difficulties, by the middle of 2005 the European project
appeared stillborn. Summing up the prevailing sense of malaise, Dominique Moisi (2005: p. 17) outlined three bleak scenarios that contrasted strikingly with the optimism that had accompanied the launch of the euro.

Europe might become a “decadent Venice,” mired in a “collective
acceptance of decay by an entire continent,”

or a Swiss combination of “selfishness and provincialism.”

But Perhaps even more disconcerting was Moisi’s third scenario,

“the revenge of nationalism.”


Former EU commissioners Franz Fischler and Christian Ortner warned that the EU might become “the first empire to go down before it was founded” (Parker and Simonian, 2006: p. 7).

Eminent Belgian economist Paul De Grauwe
stated flatly that “The monetary union will collapse . . . not next year, but on a time frame of 10 or 20 years” (Kubosova, 2006: p. 1). Europe’s leaders proclaimed a period of “reflection” because they could agree on little else.

Ironically, the one area on which virtually all Europeans are united
is the desire for greater independence from the United States. Yet, growing political fragmentation is making it more difficult to resist the United States’ embrace.

The multiple and overlapping economic and political
crises indicate that the nations of Europe, both collectively and individually, are condemned to experience a long period of turbulence and parochialism.

Indeed, even the Schadenfreude with which Washington’s congenitally europhobic neoconservatives observe Europe’s deepening disarray and inability to mount a coherent challenge to US hegemony is muted by fears that a more fractious European continent will be prone to instability and unable to assist in the United States’ imperial project.


well we do know one thing a fractious eu still on point w us imperial project. see libya. thank #NATO. hegemony light if not quite soft. and people wonder why we have bases in italy,spain, france, germany uk.


Fri, 10/28/2011 - 17:16 | 1822695 morkov
morkov's picture

this site has become unusable for coments

Thu, 10/27/2011 - 16:44 | 1818649 GeneMarchbanks
GeneMarchbanks's picture

Durden, you stole my Hendry Link...

Thu, 10/27/2011 - 16:45 | 1818653 Irish66
Irish66's picture

part 5 is great

Thu, 10/27/2011 - 18:04 | 1818862 DaveyJones
DaveyJones's picture

it is. 

Still, did he contradict himself correctly shorting Iceland for their mid decade policies but claiming it would take a meteor to take out our fiat currency.....?  I know we're the empire but math is math

Thu, 10/27/2011 - 18:40 | 1818941 NotApplicable
NotApplicable's picture

0 + gun = modern day finance

Thu, 10/27/2011 - 19:21 | 1819084 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

depends what you mean by a meteor - if you mean a real meteor then not likely; if you mean a china crash then there's several meteors around...

Thu, 10/27/2011 - 16:58 | 1818667 JW n FL
JW n FL's picture


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Country Report No. 11/312: Benin: Joint Staff Advisory Note on the Poverty Reduction Strategy Paper

Thu, 10/27/2011 - 17:29 | 1818770 the grateful un...
the grateful unemployed's picture

 I assume that when Ben drops the money from the helicopter its' already been cleaned.

Thu, 10/27/2011 - 16:55 | 1818680 lolmao500
lolmao500's picture


Marines around the world are outraged by the injuries inflicted by police on Scott Olsen at Tuesday's Occupy Oakland protests. Olsen is in a medically-induced coma after getting hit in the head by a police projectile.

The following picture is taken from the Reddit thread "How I feel, as a United States Marine, about what occurred in Oakland."

This man is not alone. In the five hours since the thread went up there have been over 600 comments.

Thu, 10/27/2011 - 17:10 | 1818722 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

No, no, son... in the 'new normal' world it'll be the police that sue Scott Olsen and any other protestors...


... Welcome to the Brave New World.

Thu, 10/27/2011 - 17:17 | 1818740 mjk0259
mjk0259's picture

And we'll have to pay for the bullets too.

Thu, 10/27/2011 - 20:15 | 1819251 Betty Swallsack
Betty Swallsack's picture

Pfft!  We already pay for the bullets, and the cars, and the kevlar, and the uniforms, and the pepper spary ,and the tasers, and the teargas, and the shields, and the batons, et al; through our taxes. 

Essentially, we're equipping them to combat us and keep us compliant in our servitude.

Thu, 10/27/2011 - 23:56 | 1819813 Executioner
Executioner's picture

You've nailed it

Fri, 10/28/2011 - 04:35 | 1820048 johny2
johny2's picture

Actually it looks like it is paid by China and Saudi Arabia. Or maybe the next generations. 

But I think it is definitelly China, Saudi Arabia and their likes that are paying taxes to prevent attack on them. And the paper game is just a front for the extortion going on. The real question is if they will ever dare to say no, by means of declining to accept paper in return for the goods. My own guess is that they will not dare, at least not in the near future. 

Tue, 12/06/2011 - 23:02 | 1953537 haibop
haibop's picture

pretty accurate - 100% agree... range hoods

Thu, 10/27/2011 - 17:45 | 1818808 DaveyJones
DaveyJones's picture

thanks for the link.  The police will side with the man, the military with mom. Look at the pay scales

Fri, 10/28/2011 - 01:13 | 1819931 Uncle Remus
Uncle Remus's picture

Be wary of the buttons that get pushed.

Thu, 10/27/2011 - 16:55 | 1818681 slewie the pi-rat
slewie the pi-rat's picture

what's in the bottle on the left?

Thu, 10/27/2011 - 17:18 | 1818744 mynhair
mynhair's picture

Light blue plastic top, definitely not Sapphire.

Thu, 10/27/2011 - 17:24 | 1818758 knukles
knukles's picture

KY Jelly

Thu, 10/27/2011 - 20:00 | 1819211 Al Gorerhythm
Al Gorerhythm's picture

Must be truth or logic serum. You don't hear this stuff every day.

Thu, 10/27/2011 - 16:57 | 1818688 Quack41
Quack41's picture

the only ridiculous part of today's move, and yesterday and the month and so on and so on, is for the chumps who are always short. it would be refreshing and much more believable if you clowns ever wrote a balanced view--you know, like be bullish a day or two. as it is, you are an enjoyable read, but like abby joseph cohen in reverse... and just as dangerous to my financial health....

Thu, 10/27/2011 - 17:25 | 1818762 Caviar Emptor
Caviar Emptor's picture

This is not a day-trading site

Thu, 10/27/2011 - 18:32 | 1818925 Rainman
Rainman's picture too when Robo's around

Thu, 10/27/2011 - 18:55 | 1818996 akak
akak's picture

That would be hour-trading .... with infallible psychic powers ... and with the ability to retroactively reshape the past to one's maximum financial advantage.

Still sucking those lululemons, RoboTard?

Thu, 10/27/2011 - 21:52 | 1819485 traderjoe
traderjoe's picture

That's yesterday trading.

Fri, 10/28/2011 - 05:23 | 1820087 Raging Debate
Raging Debate's picture

I would say ZH is useful for currency trading. The users reflect their personal interests. PM focus, Yen, Central Banking governments are all typical content offerings.

I will say to ZH that when after this kind of demand for equity content smacks you in the face you monetize it. The demand is also providing tacit but real compliment to intelligence on these threads.

You can email me when your ready for the code to support meeting the demand and I will contribute it in exhange for past Forex educational value snd the future educational value in equities it will bring. ForI will be buying equities in 2013. Tyler would have my email and I already posted my phone number.


Thu, 10/27/2011 - 18:44 | 1818953 NotApplicable
NotApplicable's picture

Feel free to disappear. Don't want to endanger your health, or anything.

What you find bullish, I find 'Kool-Aid'ish.

Fri, 10/28/2011 - 05:29 | 1820089 Raging Debate
Raging Debate's picture

Read my comment above. You getting six votes means the users here are closing down part of your brains and not being opportunistic. Isn't the whole point of global movement to restore the rule of law? Why yes! But why? Think a couple layers deep and sell yourself the opportunity to benefit. Better start considering what you are actually fighting or else you will wind up fighting for East/West titans and prone to subtle manipulation. I find learning to play chess is great mental exercise.

Thu, 10/27/2011 - 20:18 | 1819257 Betty Swallsack
Betty Swallsack's picture

Clearly, Quack, you need to redirct thyself to either CNB.S. or Bloomberg.

Thu, 10/27/2011 - 16:58 | 1818689 Yen Cross
Yen Cross's picture

  Need to recalibrate my , STOC, and RSI! They are taking up the whole screen shot!  I ran out of ( Candles )  and am trading in the DARK!   

Thu, 10/27/2011 - 22:05 | 1819513 Jendrzejczyk
Jendrzejczyk's picture

You have nightVision gOOgles......never in the dark.

Thu, 10/27/2011 - 16:59 | 1818690 derek_vineyard
derek_vineyard's picture

This crazy few months feels more like the last months of the Nasdaq bubble..........everyone quietly super-bearish and astonished that it kept advancing.   Many were opennly bearish and in stunning disbelief.   Hold the course.   With debt, unemployment, demographics, entitlements, and housing slide there is no good outcome.

Thu, 10/27/2011 - 16:59 | 1818693 eurusdog
eurusdog's picture

Well, if you look around the table and there is dumb money, you should leave the investment anyway.

Thu, 10/27/2011 - 17:06 | 1818712 Yen Cross
Yen Cross's picture

 Starting with EFSF!   RUN like the 1 Trillion Dollar Man!    You can't make it bigger/stronger...

Thu, 10/27/2011 - 18:46 | 1818960 NotApplicable
NotApplicable's picture

That's all "investing" is anymore. Shake-down of the chumps by the insiders.

Thu, 10/27/2011 - 19:12 | 1819056 Yen Cross
Yen Cross's picture

  That was a great comment! Noted.  Thankfully we have the Tylers to , " Equalize"...

Thu, 10/27/2011 - 17:03 | 1818698 vast-dom
vast-dom's picture

Sanity? Not in the markets. Prognosticating is possible so long as it is not short-term -- it's cyclical dummy -- the amplitude is the trick and of late that has gone pure schizo fucktard (ie today's gains on nothing more than bad policy at very best)!

drool drool the fool fool slop slop slothrop sputum drivel dribble.


if you close the door the night could last forever and drink a toast to never heeeeeeelloooooo you're my very special One but if you close the door i'll never have to see the day again the night could last forever and say hello to never who cares that it makes plants grow 


Thu, 10/27/2011 - 17:01 | 1818702 pendragon
pendragon's picture

thanks very cathartic

Thu, 10/27/2011 - 17:09 | 1818720 DaveyJones
DaveyJones's picture

cat har tic

Thu, 10/27/2011 - 17:06 | 1818713 DavidC
DavidC's picture

Hugh Hendry, Joe Saluzzi, Chris Martenson, Max Keiser/Stacy and Tyler(s) all get my vote.

Voices of reality in a swamp of spin, lies and hopium.


Thu, 10/27/2011 - 17:07 | 1818715 karzai_luver
karzai_luver's picture

what dip , suckas.............


Thu, 10/27/2011 - 17:10 | 1818723 Sweetbread
Sweetbread's picture

Does anyone remember this story?


Could this ramp job be the result of unlimited dollars being pumped in on the back of these repo's done with the central banks? 

Thu, 10/27/2011 - 17:15 | 1818735 knukles
knukles's picture


Thu, 10/27/2011 - 17:14 | 1818734 mynhair
mynhair's picture

My time line is too short.  Collapse is 10 yrs off, at this rate.

Thu, 10/27/2011 - 18:54 | 1818990 NotApplicable
NotApplicable's picture

Remember, flipping switches are not linear in motion. As pressure is applied, at first the switch moves slowly along doing nothing, until suddenly it does, accelerating to its end state, regardless of any further lack of pressure.

Given that TPTB will never waste a self-fulfilling prophecy, my guess is that they will break it all by the end of 2012, blaming everything but their own actions.

Fri, 10/28/2011 - 05:45 | 1820096 Raging Debate
Raging Debate's picture

Collapse of what MynHair? Please be specific. If you really want to know when study geometry, the triangle circle and square. Or if you prefer study Indian culture of spirituality and cycles. The latter has a bit of mythology attached to it. Religions are tools reflecting our evolution. It is dynamic not linear. Even if some can tell you when, it isn't often prudent. Those running the show will overeact and murder to stop events from happening. The Butterfly Effect is irrelevant, the major event being calculated will still occur.

I know this stuff is a bit deeper than what is normative here but if one wants to understand the why and when of Issues and Details then one has to understand the foundation the house is built on. Concepts translate into numbers as well. Mankind doesn't understand chaotic randomness fully yet. So dates evil priests select to shape 'events' of course benefit themselves but it doesn't and can't change the evolutionary destination or even move the needle in the timeframe.

The Egyptians and Jews both used this ancient understanding to build empires. So do modern day finance temple priests but the race or class using this understanding to colonize is now irrevelant.

Thu, 10/27/2011 - 17:16 | 1818739 Thucydides
Thucydides's picture

The final chapter in what may be a long and tragic chapter in human history...the real Thucydides said: “Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.”  The ignorance or arrogance of the strong will ultimately determine the fate of the weak as it has always been and always will be.

Thu, 10/27/2011 - 20:47 | 1819334 Kayman
Kayman's picture

Bad assumption that the "strong" are always strong, and the "weak" are always weak. Many a "strong" French aristocrat pissed his/her pants when they saw the off-loading point of the bloodied wicker basket beneath the guillotine.

Since the economic engine has seized up and the only growth is conjured up credit creation and borrowing (putting off taxation to future generations), my only question is how long can bread and circuses carry on before Alaric is at the gate ?

Thu, 10/27/2011 - 22:45 | 1819633 Thucydides
Thucydides's picture

I do not think much longer.  The guillotine might just make a come back!  But often one master is exchanged for another.

Fri, 10/28/2011 - 06:08 | 1820109 Raging Debate
Raging Debate's picture

Thucydides looks interesting to study some more, thank you. The outcome of a pyramid structure is a breaking in half when it collapses. In empires, a breaking of two or new power sharing arrangements. The strong typically mean access to new technology tools be them government types, religions, weaponry and use such for plunder.

These cycles tend to be 40 years. You could just name it the cycle of the robber. The next cycle is the cycle of the producer. It is when reward begins returning to labor in the form of assets or services (value) that attract lazy individuals that feel stealing is better than working. Is a mugger strong? Or is it the laborer struggling to keep putting food on the table?

Now, one does get free will to ultimately choose but all are forced to llay the evolution game. Brainwashing that evolution doesn't exist was fully endorsed by JP Morgan that started the Jehovah Witnesses. Talk to one of them, even mentioning the worry evolution and they will shut you right up with gibberish.

Now, we are 99.1 percent done with 3d tools and paradigms. A dynamic economic system would adjust for evolutionary disequelibrium. But we need better 4d tools to understand chaotic randomness which confused Einstein when theorized.

The study of Quantum Physics and math suggest not playing the evolutionary game. But perhaps it is because we are so close to 4d and clinical immortality that if we recognized the cycles and stopped trying to tamper with them that perhaps we would suffer less in our final decades of old, decaying institutions flailing around in fear attempting to control the destiny, fight evolution itself. Like pissing in the wind.

Rothschild understood all this and built a 4d model but his intent was conquest and even if he meant well man didn't have the tools to operate in a 4d environement. Our evolution and tools seem to be accelerating toward exploring Inner Space which few know has already begun. The old belief in Pergatory may well best describe the 4th dimension. Its fun to Google on the science of dimensions. But now tie the geometry into other math forms.

Thu, 10/27/2011 - 17:18 | 1818742 gwar5
gwar5's picture

Hugh Hendry had me in the first video when he called out the European "Champagne Socialists" for flying first class while creating the current debt problems they can't fix.



Thu, 10/27/2011 - 17:19 | 1818745 PulauHantu29
PulauHantu29's picture

"Sorry China, if you look around the table and you don't see the dumb money, you are it...."

That about sums it up!

Thu, 10/27/2011 - 17:28 | 1818767 kito
kito's picture

for all those thinking they are insanse for being sane:

Thu, 10/27/2011 - 17:30 | 1818773 howswave5workin...
howswave5workingforyou's picture

he started working in a very traditional long only fund in scotland. word has it, he spent so much time talking, everyone wondered how he ever found time to manage the portfolio! i love his stuff, but boy does he like to talk. 

Thu, 10/27/2011 - 20:37 | 1819301 Schmuck Raker
Schmuck Raker's picture

It' interview?

Thu, 10/27/2011 - 17:32 | 1818778 Caviar Emptor
Caviar Emptor's picture

Stocks may be 'up' but the economy is definitely down. Annualized GDP this year is aiming at sub-2% in the second year after supposed end of a mega-recession. Nothing normal and usual about that. Should have been a huge bounce. Never going to happen. Employment isn't stuck, we're treading water after a giant leg down that's now structural. Middle class consumers are getting decimated with declining real incomes and rising costs: core GDP prices reported today show the increasing trend over the last 3 quarters. 

This is just a small respite in the giant "Downsizing of America" that's taking place under everyone's noses (and that they refuse to see)

Thu, 10/27/2011 - 17:34 | 1818786 JR
JR's picture

The soaring stock market is not good news for savers and for retirees, nor is it good news for any American in that a manipulated market is stealing America’s promise that labor and talent will be rewarded in the economy of the future. Only a lucky outcome from risk will mark the successful man.

The savers know and soon all Americans will know that their work goes to pay the Fed winners of the risk gamble. This is the new measure of success and, perhaps, America’s siren song as the central bank draws the unaware into deeper hardship with its appeal of higher-yielding and dicier investments.

Long-range investment planning that formerly included a portion of the portfolio in low risk investments has become a cruel joke. Only high risk, when it wins, will pay off; low risk is a loser every day.

Currently, there is now no such thing as sound money.

The Fed’s artificially low interest rates not only have robbed savers for the benefit of Wall Street, but the minuscule returns on fixed income are stifling consumption,

Todd E. Petzel, chief investment officer at Offit Capital Advisors, a private wealth management concern, characterized the Fed’s interest rate policy last year as an invisible tax that costs savers and investors roughly $350 billion a year, according to No Money, No Worries.

He notes that this invisible tax is more than 2 percent of gross domestic product and almost 3 percent of disposable personal income.

Thu, 10/27/2011 - 17:49 | 1818818 RickyBobby
RickyBobby's picture

I'm with you. One of my competitors announced he was calling it quits today. Corp America with unlimited cheap capital despite negative returns was too much for him. How can you compete with a $10B company that loses money for 26 consecutive quarters which no material change in strategy on the ground?

The FEDs policies dont just hurt the savers, they give big business an unfair advantage. It's too bad, it used to be possible for a sub $50MM company with almost no debt to make some money. Now its the most overlevaraged that win cause they have the lenders by the balls.

Thu, 10/27/2011 - 18:04 | 1818861 Caviar Emptor
Caviar Emptor's picture

Yep. Small to mid-size business, supposedly 'the backbone of the economy', are getting the margin squeezed out of them. They can't pass on rising costs (core PCE 2.1% as reported today in Q3 GDP report) to consumers with declining net worth and declining incomes (never mind unemployment). 

The side effect of Fed policy (and ECB) is biflation: the squeeze of a lifetime that's extracting the life-blood if the real economy and shifting it to the paper economy aka the cronies of The Corporate Welfare State

Thu, 10/27/2011 - 18:07 | 1818872 DaveyJones
DaveyJones's picture

it's almost as if...this place is corrupt

Thu, 10/27/2011 - 22:27 | 1819558 TrulyBelieving
TrulyBelieving's picture

Yes, welcome to fascism.

Thu, 10/27/2011 - 18:25 | 1818896 Yen Cross
Yen Cross's picture

   Great post J.R. , and I'll keep it short. Perceived wealth/ effect is what you're getting at. I agree by the way.

Speaking of the powers that be, you are correct as well. The risk is upon us. China steals / EVERY SINGLE/ trade, military, corporate, manufacturing, intellectual... ect. secret they can. In return we get cheap JUNK!   China finances their manufacturing machine via the treasury, and we buy the Junk. Distribution of sovereign wealth 101...   

Thu, 10/27/2011 - 19:16 | 1819060 B9K9
B9K9's picture

Blackswan, I have suggested to you before that in order to understand our current environment, you must first dispel any notion that we live in a representative republic - that is, one governed by the rule of law. While I realize that it's quite difficult to purge oneself of a lifetime of propaganda, you will never fully grasp the totality of the situation as long as you are stuck using an obsolete model. (You are not alone, however; witness the emerging recognition of one Karl Denninger.)

Instead, consider evaluating the matrix from the outside in: For thousands of years, bankers have used their knowledge of the incredibly elementary principle of compounding principle+interest (ie exponents) in which to enslave masses. Governments in all ages are perfectly aware of this power, and literally use their muscle (military/police) in which to extort a cut of the profits. The advent of central banking took it one step further, whereas government allowed bankers free reign as long as they ran the game for their benefit as well.

The name of the game is to either get into banking and/or government in order to generate the highest returns. Part of the beauty of the plan lies in diverting attention away from the truth about the mother lode, by crafting a system by which it appears the sheep are actually in charge of the system! LOL

As long as you believe you have a say, as long as you believe you have a voice, as long as you believe "your vote counts", you will always and forever be a clueless sheep. But once you examine the truth without subjective emotion, you will find it amazingly easy to both make money and live a comfortable, secure life.

I have consistenly advocated staying long the empire. When it comes down, which it most certainly will, then it's time to get out of Dodge. All this shorting the market stuff is just BS; when the lights do go out, you don't want to be anywhere any market. You just want to be gone somewhere else.

Thu, 10/27/2011 - 19:30 | 1819114 Yen Cross
Yen Cross's picture

That was completely out of touch with reality. Have continued fun , in your trading endeavours.

Thu, 10/27/2011 - 22:01 | 1819505 traderjoe
traderjoe's picture

Made perfect sense to me.

Thu, 10/27/2011 - 22:25 | 1819553 jdrose1985
jdrose1985's picture

It's not even a government. It's a corporation pretending to be a government. A de facto government. The rule of law is nonexistent. There is no money. Only that which acts as money or represents money. There never has been such a thing as money, only shared delusions. Gold is a dirty thing. Blood has been shed to acquire it, men have been enslaved and consumed to extract it. This is not the best man has to offer his brother.

I've been reading posts here for two years now, morbidly fascinated by the yield locusts who come here in search of that which they do not wish to find. There is no truth here. Lies reign.

You all are playing a game you will never win. Prisoners to bar charts. Red and Green. Prisoners of the notion that more can be taken than given. You are all smarter than the system. You are smarter than the ignorant central bankers who descended and learned from those who have ruled for millenia. 

Precious time is passing by. My heart is saddened when I read these posts, especially when I go back and read some of my own. Oh how I wish I had only known that the time I spent expecting the ultimate collapse was wasted time. The sun was shining, the clouds blew by. Life went on, the flowers grew and streams did not cease to flow.


Fri, 10/28/2011 - 00:31 | 1819883 akak
akak's picture

I gave you a green arrow for "morbidly fascinated by the yield locusts".

On reading that phrase, RobotLemming and leo instantly came to mind.


As for the rest of your post, I can only reflect upon the fact that "flowers grew and streams did not cease to flow" within sight of the Auschwitz gas chambers as well.

Fri, 10/28/2011 - 01:11 | 1819930 anonnn
anonnn's picture

Ye spake sooth. Like to put another back on the rails or keep a wobbler on.

Thu, 10/27/2011 - 19:44 | 1819151 DCFusor
DCFusor's picture

It isn't just the fed.  The bigs have the best laws money can buy.  Try innovating when no simple product can make a market, and the other 90% or more needs patent licensing for doing ridiculously obvious things along with your invention.  Them with huge patent portfolios can hate each other, but cross license for no bucks - they hate/fear us more and no way you get anywhere as a new guy if you look like disruptive tech.


"The galactic empire is crumbling" -- Hari Seldon

Fri, 10/28/2011 - 06:31 | 1820117 Raging Debate
Raging Debate's picture

JR - Correct. So the priests realize that when you tax the shit out of the middle class they begin destroying supply chains and killing them. So over the last couple of centuries the priests realize the pyramid breaks the empire built by debt in half (see commentary from me above). That is where the term 'Mandraking' was invented. It means to shift the wealth from the host to a new empire. The politicians vote for this happening because they are issued credit to bribe voters meaning buying elections with credit-driven free goodies (for a time). It is also the reason Sr.

Political insiders that know this game loot the Treasury with reckless abandon and have no issue as the shell nation opens fires on its own citizens.

The East is happy to play along with this game as is any other nation 'gifted' with initial tremendous wealth. In this model, the first forty years are better, a slow ramp up the pyramid as citizens become consumers and loans do multiply enterpise/profit. The down slope is also forty years which has just about past. Considering this model, debt haircut is the only solution to restart the process. Of course if your a bond holder, you know have little confidence in the shell nation compelling you to chase the new host.
The former shell nation politicians also shout out (at first) about free markets and the joys of globalization while implementing anti-domestic growth policies until the people are in the streets like now. If the shell nation wakes up fully which it has appeared to, then the new host nation will wage war on the shell nation to push it down the competion ladder.

This time was different. The Internet stripped the veneer off the two way window and it is now a mirror. As I explained above, tools are a reflection of our evolution. I see no point to take part in this game of East/West bi-polarity

Do NOT follow this link or you will be banned from the site!