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And Scene: Q2 GDP 1.3%, Gold Surging On Imminent QE3 Resumption
A simply unprecedented miss in Q2 GDP well below the consensus range, with the official number printing at 1.3%, giving it upside room for revisions in case QE3 does not pass, although at this point it is more than obvious that this number is goalseeked to give Bernanke the carte blanche to start more easing any second. This number follows an epic revision to prior data, with Q1 plunging from 1.9% to 0.4%. The GDP internals were simply appalling: Personal Consumption tumbled from 2.1% to 0.1%, on expectations of 0.8%! The US consumer is dead despite not paying mortgage payments. Lastly, US PCE Core printed at 2.1% on expectations of 2.3%. As we have been expecting since December, the US is on the verge of a triple dip recession within the bigger depression. With a deadlocked Congress, the Fed has no option but to do another monetary stimulus as seen by the surge of gold to near record highs on the data in the $1.625 range and the implosion in the USDCHF to fresh all time lows.
Revised Q4 2010 thorugh Q2 2011:
Gold reaction:
and USDCHF:
»
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ftse just smashd supports...man, what a mess.
ouch
Swing and a miss!
'TIS BUT A SCRATCH
We keep hearing that quite often now.
The Recoveryless Recovery™
Who was it that said "We're in a depression, damn it!" on live television? He was like a huge name apparently.
That shit was awesome.
The idiots behind Rick Santelli pre cheering the number was delightful viewing.
He/They is/are the only reason to watch cnbc...I was also pre cheering, that big red bar was delightful
i couldn't figure out what that was about. i heard chearing or whatever, then santelli started talking about how bad things were.........oh well...........
Well, someone will tout this as great news, as QE3 is now much more likely.
USD/JPY is an absolute rollercoaster atm. 77.36.
77.18!!!
Is this this going to be one of those low volume algo pumped days??? Just wondering.
No QE3 until the SPX dips another 20%......today could be a 2% headstart.
Jim Cramer on now
Boo...yow......Bitchez.
buy! buy! buy!
But Chevron beat by 9%! That's good right?
Oh....
Cue the Price is Right "YOU LOOSE" song.
Bum bump ba baaaah.. Waaaaaaaaah!
NOT GOOD!!
please...have your pets spayed or neutered...
Why...they will become a good food source..ask the Asians...
Was wondering why i was getting junked...
But it works either way..... I planned it... :)
"Cue the Price is Right "YOU LOOSE" song."
Funny, but it's lose, not loose. Loose means coming apart.
Oooooops! Nevermind.
Ouch!!!
Time for a spin job. Transitory... QE3 to save the day!
And watch the deficit / debt target discussion turn into the bipartisan stimulus bill.
CNN trying to spin it with this as the Breaking News headline on CNN.com:
U.S. economy grew at 1.3% annual rate in second quarter, up from a revised 0.4% rate in previous quarter.
What a fucking joke.
Still, you must admit, it sounds much better this way.
Except QE3 will do nothing to help GDP, unemployment, or consumer spending. Those horrible numbers were created right in the middle of QE2.
Casey has struck out.
Egads! There's a serial junker amongst us that hates us for our reality!
its the bernank
flash crash on the ftse...tight, dow i aint missing this. puts on
It's 8:39 AM: Do you know where your PPT is?
I locked them in a closet til we go limit down
Oh shit they escaped
the libor 1 and 3 mos. are creeping higher....
but, but, but doesn't that mean the Q3 rebound will be even that much stronger? :D
Gotta. BTFD.
Can we all agree that the Fed is full of shit when they say "the economy continued to expand at a moderate pace"? Also, why does the Fed need to do more "easing" to inflate prices if the consumer can't afford these prices?
next will be: "the economy continued to expand at a negative pace"
U.G.L.Y
Recession dead ahead (assuming we left the previous recession)!
Not to worry mein herr..It's the summer of recovery or is that Summers(s) of recovery, I forgot.
We are already in the first stages of a recession. They just didn't revise these numbers yet to show this. 1st quarter GDP revised down form 1.9 to 0.4? Am I interpreting this correctly? What happened to the 1.8, 1.8, 1.9 revisions? Correct me if I am not reading this right.
This is epic
Ben! Get to da Choppa!
that's just funny, i don't care who you are. Arnie would approve.
nice Au pop
green fucking shoots, Thank you FED
...and how much of that is to be 'revised lower' in subsequent months... as if they dont already know the real number
My guess is that Q1 and Q2 are actually reversed (fudged, manipulated...whatever) or that more was taken from Q1 instead of Q2 so they could say 'hey, this means things are actually improving from Q1 to Q2'. If you take most of the reduction in the Q1 number and subtract it from the Q2 number you will be fairly close to reality. So, yes, that means Q2 was actually a contraction.......oooops, sorry, I meant 'negative growth'.
This reminds me of when they revised the unemployment numbers from 9.8% to 8.8% in just 3 months. It's all Bull.
Exactly!
paper shufflers of the world: unite!
Don't worry The Bernank will save Q3 GDP...
... 'cause we all know QE works, right? I mean, there is no doubt what so ever, that it doesn't work is there? I mean, there simply is no data to show it doesn't work right? It's proven to work, right?
I mean, if there was any doubt that QE worked, then we'd be crazy to do more QE, right?
I mean, what alternative is there?
the bernank will ride in on his black horse and say, i am here. i have extra money. and...........they will accept ..........because it is written...........
@FunkyMonkeyBoy
Benron probably thinking that if he printed a quadrillion digital dollars, we'd enjoy two Summers of prosperity. Nevermind paying it back....
can the Fed finally admit QE2 was an epic disaster for everything other than stocks?
Ummm . . . what else is there but stocks??
Real people eat cake.
...Sometimes with peas...
You forgot about backdoor handouts to our banker rulers
One of my favorite WTF lines from the past year was Cristina Romer saying that QE2 was successful in lowering long term interest rates because her computer models showed that it had done so. The MSNBC anchor had just put up a chart showing real-life 10-year rates increasing throughout QE2.
Q3 = QE3
1.14 EURCHF cracked.
After 16 trillon dollars to the banks this is all we get, BURN THEM AT THE STAKE!!!!!!!!!!
I wish I could have pushed the up green arrow about 1000 times on your comment.
thanks optimus prime
Joan of Arc style never goes out of style.
That is below stall speed. That means unemployment is going up. That means that all the layoff numbers in Q2 were not an aberration, but indicative of the economy as a whole. I know. One-time factors (floods, Japan, locusts etc.), but A) The why does not comfort people taking the what in the butt, and B) How long do one-time factors continue?
Well let's see...you only die once, right? That's a one-time factor.
Not unexpected if you don't have your head up your Wall Street ass and you live in flyover country.
Not allowed to fly over the WH. Yep, it's non-flyover country that is clueless.
I was wondering who the poor SOB was on the other side of my trades.
Probably Robotrader buyin all dips. No wait, he only papertrades, nevermind.
CNN Financial: US Economy Continues Growth Streak Into 2nd Quarter.
This is good for +300 on the Dow.
"this is good for 300 on the Dow"
only in the good old days of bernankruptcy's free money QE1,2, whatever. otherwise this is bad news. whats the odds they bring jackson hole forward by a couple of weeks?
Structured news to keep the working stiffs placated. Everything is rosey, keep that money in your 401k. Panic is not what is needed, gotta keep those calls to brokers at a minimum. They're busy doncha know, keeping their own asses from catching fire.
Every mailer I ever get from a financial services company stresses the need to stay invested through good times and bad, because otherwise you will never achieve the 8% real return on your money needed every year to acheive your dream retirement.
Q1 revised down to 0.4%
PARTAAYYYY
how can the revision be that much?
See my above comment. It is to make Q2 numbers look better than they actually were (in other words...make it not a contraction).
then wouldn't that make 11Q1 a contraction from 10Q4, oh wait, revise 10Q4 down so 11Q1 is an expansion...but what about 10Q3...oh myhead is spinning!
f#ck the fed they gotta run a trillion +++ money pump to make a dent now.
they could dump anouther 20 trillion it won't make jack shit happen to the trend.
And ...here comes "the decoupling", stocks DOWN, PMs UP!
This WILL force the DC shills to "do something" :)))!
Yup. Dollar down, futures down. This is big.
This means nothing else but QE3 coming which means to me I will close my shorts today with a damn good return for a week's holding:)), I am now more then ever "confident" the shills on the hills WILL have to do something debt wise so...I won't stay short any longer! Any QE3 "expectation" will kaboom the "market" to MARS, same for PMs! Good hunting.. aham "investing" :))!
Also, it puts more pressure on Congress (et al.) to continue the profligate spending and useless programs.
oh yes we can....
Nice real nice . Matches perfectly with the last nfp numbers.
And every thing points to QE or something resembling it.
Look on the bright side...it can't go much lower....this is bullish...LOL
Never forget, every bottom has a trap door.
Gotta love the scene
How long until they march Benny Boy out now? If they do, people need to demand his arrest and charge him with Treason. The man is a crooked banker who helped his buddies, all the while lying to everyone, to help them stay rich at our expense. Lock his sorry ass up!!! And Geithner too.
He's not gonna jump on the QE bandwagon this time around. Wait for Wall Street to beg for it and let them take the blame.
Remember those guys laughing about El Erians "new normal". They were on CNBC dozens of times "No, we see no new normal. That's just a bunch of hogwash. We see 5%+ growth over the next couple of quarters".
CNBC should invite these crack heads back in again, check up on their thesis.
There is a long list of those "featured guests" and "host commentators" on CNBC who are wrong, have been spectacularly wrong in the past, who will be wrong next time -- yet they keep coming back. It's a cabal that rotates amongst the networks, from CNN, to CNBC, to Fox, round and round.
I'll start the list with Arthur Laffer, Dick Bove, Don Luskin, Steve Moore, Robert Reich, Peter Navarro, Peter Morici, Jerry Bowyer, .... etc.
PPT to the rescue!
Whoa! Time to eat our peas!
pass the peas please...thanks
Waddell and Reed very active in usd/chf trading; agressive selling of dollars breaks fx pair
Epic move for a currency pair.
They were not cheering...they were suprised.....a big woah I heard....remember "green Shoots"...well we all knew it...just the so called Economists didn´t......so when is gold going to be the headline story.....Spain dismanteling...the US deficit...I wonder what China is thinking....
"dreadful" bitchez. i love it when cramer goes all doomy... gold, farmland, don't know repo rates will cave or inflate
Guess the Ipad/Iphone sales weren't enough!!!!!!
Goodbye Yellow Brick Road . . .
(Start digging up the yellow bricks.)
qe3
Per your avatar... watch the video for inspiration:
http://www.thedailybell.com/2740/Ron-Paul-If-Debt-Is-the-Problem-Why-Do-You-Want-More-of-It
S&P futures took out 1284...now 1283...oh wait back up to 1284...nope 1282...Resistance is futile..
Gold + 11.79 1624.7
Silver + .18 40.03 (Blyth still has her machinations.)
gold 1630.6
silver 40.22
How does one post pics here? Got a couple of good ones...
Black Friday 2011 off to a good start.
Cant. Because ROBOTRADER ruined it for everyone. You can post a link to a pic though.
Yep. Just grab a free account over at imgur.com and post away.
Yeah I was wondering about that. Bit too lame to post links.
CHANGE WE CAN BELIEVE IN!!
More shortly
Actually, nuff said..
Q1 revised down to 0.4% from 1.9%.
That's gonna hurt.
You smell that?? Smells like...QE3!
I dont care! Let them announce $10 trillion QE3! WTF difference would that make! Everyone now knows its all just pure bullshit.
Nevertheless, yields on treasuries went down...yet again.
Can anyone say Japan Redux?
http://geraldcelente.proboards.com
And what has Bernanke the Bastard accomplished by printing new paper money to buy TB from people Goofy Geithner's Treasury sold the TB's to for paper money to keep the guvmunt running? Nada. Just fucking around with paper money. Didn't produce no more STUFF. And the economy is all about producing STUFF, not printing more paper money.
.
Jim buybuybuy Cramer:
"come Fall we're going down"
'L' - shaped recovery. To be followed by an 'l' - shaped regression. Nothing will change until the rank and file worker in the third world is earning the same as the rank and file worker in the first world. Until then, and only then, the 'save the status quo' game is all about engineering a 'soft landing' in the former and a 'speedy ascent' in the latter.
Spot on. Now add to that a global ponzi that still relies on economic models that depend on infinite growth on a finite planet. Hedge accordingly.
"\" Shaped recovery
double tap muscle memory
EVERYTHING (even PMs) will be taken down on the US market today. Sorry, only shorts of everything will win.
Great I hope PM's go down some more, buy the dip for long term.
EVERYTHING (even PMs) will be taken down on the US market today.
You could have said that and would have been correct in 2008. This is processing just like
the 1929 crash and depression. The first dip took everything down including PM's just like
we got in 2008. The second dip took everything down except PM's. Everyone figured out
that Gold and Silver was real and everything else was junk. The government responded by
attempting to confiscate the only real money available at the time. That real money was Gold.
Yow. And I cautiously covered some Euroshorts just before it, in case it was not as bad as expected. Often they come in above consensus on advance only to be downgraded later. Oh well. Still looking for a downgrade to this number later.
And that 1q downward adjustment is ENORMOUS. Like what the hell were they counting to mistake 0.4% for 1.9%.
QE3 , QE4... then a donut tire on the president's limo.
Hey, Obama - you piece of Kenyan National Dog Shit - how can I "Eat My Peas" when I can't afford them!
+(insert price of gold or any physical asset that maintains purchasing power or that can be used to create things of REAL VALUE)
Shared sacrifice asshole.
Obama's nothing but a Somali pirate! Now he's FAILED in Libya no free gold, no free oil!
?LIBYA DECLARES VICTORY OVER NATO? - YouTube
0,4% GDP growth in 1Q? Is that a joke? 10% budget deficit brings just 0,4% of GDP growth? Mhmmm, the end is nigh.
I have a question:
How Fed could possibly have QE3, while after AUG3 they
would not even have money to pay current bills?
In order to have QE3, Debt Ceiling has to be lifted much
more than 1T $ IMHO.
No ones buying QE anymore its been a total failure for 3 years, the only point of it was to hand free money to billionaires! QE3 MY ASS!
LOL...
$16 trillion in secret to the banks, and we get a .4% GDP? Its politicians and secret banksters meet noose time, this is out of control insane.
“There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The only alternative is whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises
bitchez!
Ludwig's da man & Austrian School is the stuff.
Bernanke, crying in his morning bowl of fruit loops, ponders why everything he thought to be true - Fed did this wrong in the GD, Fed should have done this, etc - was completely wrong. Sure he popped financial markets for a couple of years, but in the end he is an abject failure, equipped to do not much more than bus tables at some backwater mexican restaurant; but he is not alone. Nearly everyone in a financial or political leadership position today epitomizes 'epic fail'. In many respects it is a failed generation. The first of its kind to leave the the following generations in worse shape.
Lip quiverin like mad! Hell nevermind worse shape, leaving us in a 3rd worlded depression!
with Bernakes whole generation comment, spot on.
Didnt Gomer Pile say it best???? "surprise surprise surprise!!"...not! Just wake the fuck up and look around.....fucking jack-fucks....
DOH!
Hmmm,
Q1 revised from 1.9% to 0.4%
Q2 revised from 1.3% to .......
oops, it's a negative.
Yep! Had to take it from Q1, else what would Q2 look like?
Realize this reality- They pumped the DOW 2,000+ points in a time where actual GDP was .4%?? What? FARCE!
At least we ZH readers won't feel so loathesome when we are out in public this weekend. I am expecting a few apologies and to be asked for the Kool-Aid antidote.