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'Anti-Goldilocks' China Data Not Enough To Move Needle

Tyler Durden's picture


A fractional miss of estimates for GDP growth (printing at +7.6% vs expectations of +7.7%) coupled with a just-as-fractional beat in Retail Sales (+13.7% YoY vs expectations of +13.4%) seems to be the perfect remedy for a global-depression-expecting and/or massive-stimulus-hungry market. GDP growth was its slowest since March 2009 but it appears the 'sell the rumor, buy the news crowd' are disappointed. S&P 500 futures popped a few pts and then faded back - remaining around +3pts for now (and EUR rallied into the number, sold off on the print and is now limping back higher). As we noted earlier, this is not the data you have been looking for - instead focus on hot money flows and the property pop, as the Chinese continue to impress with their 'data' showing the first engineered 'soft-landing' in history.


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Thu, 07/12/2012 - 23:00 | Link to Comment todayone
todayone's picture

Prepare Persuasive Written content -- When you are oakley radar range usually accomplished along with your head line, you may in that case ought to focus on the actual content material within your sales brochure. It will be important that the articles is definitely fascinating. In the event you don’t generate benefit-oriented content material then you definitely won’t have the capacity to lure the sector plus help to make these individuals have desire for a person's offerings.

Thu, 07/12/2012 - 23:14 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Of course, the Chinese Communist upper struggle for power will be in this last scene was very impressive and ugly bestiality on its head. Finally, you will find that they are not only some of the hypocrites, bandits, wolves, is an absolute coward.

Oh, yes....fuck off spammer.

Thu, 07/12/2012 - 23:39 | Link to Comment AlaricBalth
AlaricBalth's picture

The irony is, that spam was generated out of China using translation software. They must really want to see those Retail Sales numbers go up next quarter. Spamming for dollars.

Fri, 07/13/2012 - 01:23 | Link to Comment rocker
rocker's picture

In a rigged phony market, we should get a major rally tomorrow. I am all cash as I have quit long ago.

But as it is, in a manipulated casino the news is bad so we should rally.  JPMorgan's and Goldman's Dark Pools profit everyday.  Do YOU ???

If JPMorgan reports bad or negative trends quarter over quarter with or without the whale it should rally too.

The Bankster's Scam continues on. Price is NOT truth. The HFTs, Goldman, JPMorgan Barclays along with other fraudulent banks rig it all.

The Banksters control interest rates, comodity prices and equity prices. It is all rigged and manipulated to be whatever price they want it to be.

Ever notice how short interest gets high and then the markets ramp up while nobody is actually buying anything. Where the hell is the SEC.

They front run all honest trades and then manipulate price to make it a bad trade. It's the worst I've seen in thirty years of trading.


Fri, 07/13/2012 - 01:30 | Link to Comment dlmaniac
dlmaniac's picture

China's GDP has been LIBOR-ed as well.

Thu, 07/12/2012 - 23:16 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

Skynet may be homicidal, but context seems to be an issue.

Turing Test fail.

Fri, 07/13/2012 - 02:43 | Link to Comment Buck Johnson
Buck Johnson's picture

CNBC is saying it met expectations.  So it was lower by 1 tenth but they said it was the same, in a sense they are right but they are wrong also.

Thu, 07/12/2012 - 23:01 | Link to Comment ekm
ekm's picture

Wow. Are you implying that there are people who are actually trading securities in the market? I don't think so.


If we have just 21 Primary Dealers trading with each other world wide and everybody else has withdrawn the money, who actually cares whether the needle moves?

Thu, 07/12/2012 - 23:06 | Link to Comment kito
kito's picture

Its laughable that people are anticipating a china implosion.....ain't gonna happy......

Thu, 07/12/2012 - 23:09 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

China just forrowing script according to their prans.

Thu, 07/12/2012 - 23:33 | Link to Comment ghenny
ghenny's picture

Dream on.  That's the kind of BS people were saying about Japan and look what happened to them.  Societies that don't do much immigration, have rapidly aging populations and are centrally controlled in theory while trying to operate a capitalist system eventually wind up in deep do do.  China is no different.  It will come faster for them because of the 1 child policy, the environmental disasters that are piliing up and because they are so much bigger and under the surface really out of control.  

Fri, 07/13/2012 - 00:35 | Link to Comment kito
kito's picture

chinas "poor" population are rural dwellers who have saved all their life, have no debt, self sufficient, work hard, aren't feeding from the government teet.....lets compare that to americas poor population, shall we????......

Fri, 07/13/2012 - 00:42 | Link to Comment The Monkey
The Monkey's picture

Sure, there is no arguing these Chinese work very hard. That doesn't mean the economy or political system is sound.

You may want to review what Jim Chanos has to say. Google it.

Fri, 07/13/2012 - 04:58 | Link to Comment kito
kito's picture

It means that a government which isn't drowning in debt while feeding and clothing half of it's households is alot better off than a country that is..............

Fri, 07/13/2012 - 06:18 | Link to Comment mjk0259
mjk0259's picture

Which type of society is not ending up in deep do do?

The ones that allow a lot of immigration and end up with radically different subcultures and perpetual slums?

The ones that don't have rapidly aging populations- Nigeria? India?

Not centrally controlled in theory - US? Spain?

Trying to operate a socialist system - North Korea? Cuba?



Thu, 07/12/2012 - 23:08 | Link to Comment chump666
chump666's picture

All I saw was HFTs trade the number. China just gave the market it's consensus number of 7.6%, it is a pathetic and embarrassing number fudge.  China has sticky inflation and will continue to leak massive outflows, any inflows will be the goverment trying to play the property card with Yuan settlements.  I would say that China won't just crash, but economically explode...very soon.  They are losing control of reality.

Thu, 07/12/2012 - 23:13 | Link to Comment JackT
JackT's picture

Yeah, but she just tipped her hand. Remember she was suppose to save the world

Thu, 07/12/2012 - 23:23 | Link to Comment chump666
chump666's picture

That is utterly frightening to think that the whole market believes that China is a Saviour, when every analyst working in western banks are stress testing for the China apocalyps.

I think the Citi guy was right, one big massive rally, next few weeks.  Then the end.

Thu, 07/12/2012 - 23:46 | Link to Comment Totentänzerlied
Totentänzerlied's picture

Then Krugman pops a boner and the real QE begins. Then the end.

Fri, 07/13/2012 - 00:24 | Link to Comment chump666
chump666's picture

haha, yes that would sound about right.

although *shudder* at Krugman with a boner.

Fri, 07/13/2012 - 01:38 | Link to Comment knukles
knukles's picture

Krugman is a Boner

BTW, where is the little shit?
Sure hasn't been here lately.
And the was it Kernan called him a Unicorn on CNBS?

Gone back to his nasty cubicle at the NYT and sharing cold coffee with Maureen Dowd and Tommie Freidman? 

Fri, 07/13/2012 - 01:46 | Link to Comment chump666
chump666's picture

"sharing cold coffee with Maureen Dowd and Tommie Freidman?"


I dig the guy at NYT who writes film reviews he is ok.

But Marketwatch are about to get their fat short squeeze

Fri, 07/13/2012 - 04:40 | Link to Comment foxenburg
foxenburg's picture

Vincent Canby? or is he dead?

Fri, 07/13/2012 - 01:01 | Link to Comment The Monkey
The Monkey's picture

Economic data, aggregate earnings strength & the USD alone are not conducive to a big rally. Also, we don't have the sentiment conditions to help move prices too far.

All we really have is the rest of earnings season and Apple (which we all know almost is a certain blowout) to move stocks. With a lot of luck and momentum we get a little above 1400, but with guidance being what it has been, I certainly wouldn't count on it.

Thu, 07/12/2012 - 23:28 | Link to Comment ghenny
ghenny's picture

I completely agree. How can anyone believe their numbers or that they are superhuman and can defy the laws of gravity and business cycles.  These guys are heading for a very hard landing.  They cannot possibly control a multi trillion dollar complex adaptive system with 1.2 billion people that are facing demographic disaster to the downside.

Thu, 07/12/2012 - 23:11 | Link to Comment JackT
JackT's picture

Pop n Lock..Pop n Lock..I never could get that dance move just right, but I had killer robot moves. Time to dire up some old tyme rap!

Thu, 07/12/2012 - 23:09 | Link to Comment genr8n
genr8n's picture

Who can / would believe the "Chinese Official Data" print?

Thu, 07/12/2012 - 23:15 | Link to Comment Dr. Engali
Dr. Engali's picture

Who can/would believe ours?

Fri, 07/13/2012 - 00:26 | Link to Comment LetThemEatRand
LetThemEatRand's picture

aren't you in China?

Thu, 07/12/2012 - 23:10 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

For the real deal, always follow the hot money. When the money goes, so does the growth.

Thu, 07/12/2012 - 23:15 | Link to Comment Atomizer
Atomizer's picture



With the Baltic Dry Index reaching 2008 lows, Mayer Bloomberg has ingeniously thought out a way to curb empty shipping lines 

 Container apartments rent for 8 yuan a day


NYC real estate boom is merely a ground floor opportunity.


Thu, 07/12/2012 - 23:19 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

Remind me again, did Goldilocks get eaten by the bears, or did she live happily ever after?

Thu, 07/12/2012 - 23:37 | Link to Comment Schmuck Raker
Schmuck Raker's picture

SEC porn version?

Thu, 07/12/2012 - 23:25 | Link to Comment chump666
chump666's picture


*SG GDP drop + KR growth f'cast cut + ASEAN outflows sign of rising bearishness


Thu, 07/12/2012 - 23:30 | Link to Comment El Tuco
El Tuco's picture

I know someone from China will probably come on and tell me that I am wrong and everything is ok..blah..blah..blah...but I deal with about 5 -8 factories in China and they are starting to talk crazy and are just a few weeks away from begging me to place more orders. These aren't small factories. One is actually massive. Shit has slowed down and not just for them but for me too. So hard to predict what is gong to happen. Everyone I know including me is just trying to hold off and not spend any money. Which makes the situation worse I'd imagine. Even trucking is starting to slow. This just might be the second shoe dropping.

Thu, 07/12/2012 - 23:42 | Link to Comment Atomizer
Atomizer's picture



The China bitchez need to agree with new WTO demands in order for them to roll out new subsidizes. 

hahahahaa. I can’t breathe from laughing so hard.. Hahahahahaha


Fri, 07/13/2012 - 00:42 | Link to Comment adr
adr's picture

Same boat here. China built factories to pump out products for 2003-2007 America. Not a new American depression.

Factories are begging for orders, cutting prices, and paying for shipping. The workers are also wanting increased wages.

I wouldn't want to own a Chinese factory right now.

Thu, 07/12/2012 - 23:35 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"...the Chinese continue to impress with their 'data' showing the first engineered 'soft-landing' in history."

I like the "New, Kinder, Gentler Tyler Durden."

Thu, 07/12/2012 - 23:40 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Who are the assholes bidding up S&P futures tonight?!

Moody's downgraded Italy ahead of the bond auction.

Chinese fake made-up GDP numbers were bad (real numbers are even worse). Shanghai Composite is flat to down after the data.

Singapore GDP contracted 1.1%.

Yet, the assholes (JPM prop fuckers?) are bidding up the futures tonight.




Fri, 07/13/2012 - 00:43 | Link to Comment adr
adr's picture

NY Fed, same as always.

Fri, 07/13/2012 - 02:01 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

NY Fed / Goldman / Citadel have been using Aleynikov Algo lately to violently mark down VIX and mark up ES before the close.

Fri, 07/13/2012 - 01:13 | Link to Comment The Monkey
The Monkey's picture

You must be sitting on an open short position. You should close that baby well before Apple announces.

Fri, 07/13/2012 - 01:51 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Do you really think I need a market advice from an Apple fanboy?

Thu, 07/12/2012 - 23:41 | Link to Comment indianajohns04
indianajohns04's picture

futures are back @ highs my vxx is going to get crushed over the next week where is the fear

Fri, 07/13/2012 - 01:16 | Link to Comment The Monkey
The Monkey's picture

Earnings season bro. Apple coming right up.

Fri, 07/13/2012 - 03:37 | Link to Comment Piranha
Piranha's picture

yep after apple earnings market will start to look ugly

Thu, 07/12/2012 - 23:44 | Link to Comment RobotTrader
RobotTrader's picture

The entire world economy is in the tank.


Question:  What happens to stocks when things improve?

Question:  Why is ES trading over 1300 and not crashing towards 800?


Thu, 07/12/2012 - 23:51 | Link to Comment Totentänzerlied
Totentänzerlied's picture

Did RobotTrader just say something true, honest, and accurate?

Fri, 07/13/2012 - 00:15 | Link to Comment gjp
gjp's picture

Except for the "when things improve" part

Fri, 07/13/2012 - 00:28 | Link to Comment The They
The They's picture

Things WILL improve... after they get much worse.

Fri, 07/13/2012 - 00:33 | Link to Comment chump666
chump666's picture

Very good point and can be answered, viola: 

HFTs are supporting the 100ma's, big players lay down longs on hopium trades.  This will happen for awhile until the big sell and no we haven't got there yet.

The sell?  Well, when the market mis-prices risk from either 1. CDS trades  2. Bond/Bunds/Gilts collapse 3.  China explodes 4.  Iran shoots a missile at Saudi Arabia. 

Time frame now till the end of 2012.  So the June 20th trading top will still be maintained hence the swing trades to the all-out-bidless trade.

In summary, the HFTs are gaming everyone including their own CPU's. 

Fri, 07/13/2012 - 00:53 | Link to Comment adr
adr's picture

The answer to your question Robo, is epic fraud. Total manipulation, channel stuffing, accounting books deep fried and extra crispy.

If you can't figure out that this market is propped up by the biggest pile of BS ever to fall on planet Earth, there is no hope for you.

Why isn't the market crashing? Belief that bubble valuations are real. Recent examples are 1999 and 2007. How can one possibly believe that a company can grow into valuations that require them to take over their entire market segment and expand fully into 100 others?

I remember when I was hired as a consltant for a company and the owner believed his company could grow to $300 million from $10 million. I asked him how he thought that was possible when the entire market for the product he sold, across 15 different companies, was only $200 million. Somehow he would take all the business of the other 15 corproations and find non existent people to sell another $100 million to?

The valuation of the stock market is so absurd, you have to be retarded or insane by definition to believe it.

Fri, 07/13/2012 - 01:20 | Link to Comment The Monkey
The Monkey's picture

Earnings growth has been stellar.

Good luck with that.

Thu, 07/12/2012 - 23:49 | Link to Comment q99x2
q99x2's picture

No news is not good news.

Fri, 07/13/2012 - 00:32 | Link to Comment ekm
ekm's picture

Ok, let me give you the real clue as to when China collapses, from personal experience back in time in communism in eastern europe. People were moved from village to cities.

Communism would have never ever collapsed ran out of food to feed the people. Life was good stamps for everybody. It took 50 years, but it collapsed NOT GRADUALLY but BAAAAAAAAAAAAAAAAAAAAAAM.


As to China, they are forcing villagers away from their lands that produce food, into big buildings. Hence, they have to work to obtain money to buy food. It's impossible to provide food for so many HUNDREDS OF MILLIONS OF people that used to feed themselves before. Same as with communism in eastern europe, it will NOT be gradual, it will be BAAAAAAAAAAAAAAAAM.

The communist have only ONE enemy in China ------------FOOD PRICE INFLATION. If they build and destroy and build  and destroy and build and destroy and build and destroy, it always increases the price of commodities, hence it increases the PRICE OF FOOD. Tien An Men in 1989 was a FOOD INFLATION PROTEST.

Current protests in China are against authorities taking away the food producing lands.

Collapse = Guaranteed.

Sign of Collapse = FOOD PRICE INFLATION.

When = God knows.

Fri, 07/13/2012 - 00:45 | Link to Comment chump666
chump666's picture

Very good post.

My Brazilian friends remind me why they bough en masse USDs in the 1980s/90s = inflation.

China is  doing exactly the same thing, buying up huge amounts of USD to offset China losing purchasing power.


Fri, 07/13/2012 - 00:53 | Link to Comment moskov
moskov's picture

Maybe China needs to dumP more treasury bills to gain the purchase power back?

BRazil doesn't have that position, china has

Fri, 07/13/2012 - 01:42 | Link to Comment chump666
chump666's picture

Grow balls and do it!  F*ck Obama, send rates up, will be the best thing that ever happen to the US ecomomy in the last 10yrs.  The biggest rate manipulators in history is the Fed, no doubt there.

No one wants to tighten, take short term pain, that is the problem.  So we are f*cked thanks to central banks and goverments...all goverments in this world

Fri, 07/13/2012 - 01:34 | Link to Comment knukles
knukles's picture





The Rise and Fall of the Emril Empire

Fri, 07/13/2012 - 01:32 | Link to Comment knukles
knukles's picture

OK  Here's the deal
The Chinee economy is so big, stuffed chockablock full of so many fucking people who can't even see anybody else through the smog and stink that even estimating any sense of economic activity aside from Ms. Chopchops Lychee Giraffe Testicle and Stir-fry Shoppe across the square from the Venerable Great Big People's Hall of Mirrors is just an absurdity to begin with.
Then adding idiocy to genital (or is that genetically) defective and illogical assumptions tempered by false data massaged by the good fairies who'd make the BLS seasonal business look tame, there exist a whole buncha estimates from private sources who have no fucking clue what the hell is even going on next door let alone looking out of Sarah Palin's kitchen window toward the west.
Then, surprise surprise the estimates from private sector economists just keep keeping on with arch precision within a millisecond of light speed differentials as measured by the venturi tubes between the Moon and Saturn and viol-fucking-a, the numbers are spot on.
Which begs the question:

How in God's name does anybody even pay any attention to all this crap when it's just plain rubbish to begin with?.

Here's Knukles' analysis;  There be a whole lotta horny Chinee procreating and as long as the population keeps expanding like its doing, then the economy is bound to grow, sometimes quickly, sometimes slowly but will always tend to grow if we think about it. 

Now, another measure of accuracy is found in the St. Francis prayer, named after St. Francis of Assisi who lived from the late 1100's through about 1225, which we know because he was registered to vote in Italy during that time.  However, the prayer attributed to him by everybody and their uncle was not published, seen, nor hear of until 1912.   
Now there's some accuracy for ya'll. 

So what, might you ask, has that got to do with China's GDP?  Nothing.  What it has to do with, is quit pretending that you/we are getting anything like real information.

As Robert Mitchum is said to have whispered to Jeff Bridges at an Academy Awards ceremony once (not the rumored part of the story):  "Just remember kid, it's all bullshit anyhow." 

Fri, 07/13/2012 - 01:40 | Link to Comment fourchan
fourchan's picture

re plain rubbish

we are pigs feeding at the feds plain rubbish trough for 100 years, we pigs are convinced plain rubbish is

real good food becaused we are conditioned to do so. our entire system is bullshit, ponzie, and worthless,


just like chinas gdp numbers

Fri, 07/13/2012 - 01:49 | Link to Comment Vic Vinegar
Vic Vinegar's picture

Looks like you got in before me on the reply. I guess I took too long to write it.

Let's use your comment as a case in point, OK?

Fri, 07/13/2012 - 01:57 | Link to Comment Vic Vinegar
Vic Vinegar's picture

The wisdom of Robert Mitchum re: Hollywood applies to financial markets as well.  Getting on here and talking about - how things should change / must change / any minute now we swear / math doesn't lie - is a fool's game.  Think on that the next time you get on here and comment.

And so I vote that knukles had the best comments on ZH today...a day not unlike every other on ZH: great news from Tyler and friends, some funny comments and few interesting links from the commenters, and a bunch of nonsense and complaining from them, too.

I'm gonna punch out leaving the Prayer of St. Francis.  I think it's a beautiful thing regardless of the year it came out and whose uncle knows it:

Lord, make me an instrument of your peace.
Where there is hatred, let me sow love.
Where there is injury, pardon.
Where there is doubt, faith.
Where there is despair, hope.
Where there is darkness, light.
Where there is sadness, joy.
O Divine Master,
grant that I may not so much seek to be consoled, as to console;
to be understood, as to understand;
to be loved, as to love.
For it is in giving that we receive.
It is in pardoning that we are pardoned,
and it is in dying that we are born to Eternal Life.

Personally I don't see Zero Hedge (or more importantly the world) changing in a more meaningful, more accelerated direction until people start to focus on the good that they do, and the positive change they affect. 

But if you just want to make this site a giant complaints inbox, getting off on how smart you are, then so it goes. 

Things are getting better.  It's just a question of how fast or slow they do.

Fri, 07/13/2012 - 04:06 | Link to Comment disabledvet
disabledvet's picture

"For things to get better people must get better." Amen to that.

Fri, 07/13/2012 - 09:10 | Link to Comment knukles
knukles's picture

The allegorical tale of Fight Club addresses exactly that... people getting better.... to get to know the inner self, and once at peace with themselves, being at peace with the world... affording them the ability to do the "next right thing". 
An otherwise terribly difficult personal agenda when feeding the wrong motivation, the illusions of false pride .

Fri, 07/13/2012 - 02:21 | Link to Comment upb
upb's picture

we should see a nice move in the markets tomorrow, $SPY at an important level right now.

Fri, 07/13/2012 - 02:40 | Link to Comment Peter K
Peter K's picture

Just in case you missed this, yesterday's DT:

17.15 Still on a Spanish theme, economy minister Luis de Guindos has told German newspaper, Frankfurter Allgemeine Zeitung, that his country would take full liability for the European loans to its banking system and added that there was no risk of losses for creditors:

We take liability for repayment. I am convinced there will not be the slightest loss for creditors

He told the paper that Spain needed a maximum of €62bn for its troubled banks, but had asked for €100bn to provide an additional "security cushion".

16.53 Spanish banks are joining the queue to get a slice of the country's rescue package for its struggling lenders.

Novagalicia Bank has asked for €6bn to repair its damaged balance sheet. The unlisted regional bank, taken over by the state last year when it became clear it could not cope with huge loans to a collapsed real estate sector, is likely to be among the first to receive EU funds.

Therefore, the midnight texting: It was all one big scam.

So if we are going after bankers for misleading customers in the Lieborgate, shouldn't we go after the Eurotrash pols also?

Just sayin.....

Fri, 07/13/2012 - 04:59 | Link to Comment silverdragon
silverdragon's picture

The economic reality in China is:

Property is flatlining up in some cities down it others, not much new is being built and what was vacant is being filled. It is all healthy as supply is shrinkimg everyday due to culturally driven demand. Govt can kick start property boom tomorrow by dropping deposits to 20% and allowing multiple mortagages at 20%.

Factories producing for US and European markets are down as US and Europe are in recession/depression. Factories producing for Chinese and developing world production is increasing.

Retail is booming as Chinese are learning how to spend and live.

Stock markets mean nothing so who cares what they are doing. The companies are all growing.

Bottom line is China is battening down the hatches and getting its house in order as we are all sailing into the mother of all economic storms. As the masses are buying Gold and Silver have f*ck all debt they will ride it out better than most.

*Discussing China economic statistics is as intelligent as discussion western economic statistics.

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