This page has been archived and commenting is disabled.
Art Cashin On Yesterday's Market Air Pocket, And A Rasputin Anniversary Primer
Now that we have had a day to digest the move from yesterday, we go to the only voice in the market worth listening to, that of Art Cashin. Not surprisingly, he doesn' tell us anything we did not already report or know, but good to hear the confirmation nonetheless.
The Euro Hits An Air-Pocket, Sinking Stocks And Crushing Commodities - Yesterday was quite interesting, especially a two hour slice in the early morning.
Around 5:30 (EST), Italy auctioned off about 9 billion Euros in six month notes. The rate was 3.25%, less than half of the 6.50% rate they had to pay on November 25th. Seemed like a good deal and markets seemed to relax and exhale. Things stayed stable and quiet until about 9:00 (EST).
At 9:00, the Euro was unchanged against the dollar as it had been most of the morning, and U.S. futures looked to open up a little. Then, suddenly the Euro began to fall and stock futures sank. By the 9:30 opening, the Euro was down nearly half a percent, and weakening by the minute.
There was some buzz about what was suddenly hurting the Euro. I shot out this email to several friends:
Euro air-pocket may have come from news that ECB balance sheet expanded sharply. That hints they are printing money and unable to sterilize. Currency markets calming now. Equity run rate on par with yesterday.
The ECB had announced that its balance sheet had expanded by 10% in one week. If it kept expanding rapidly, it could double its size in less than a year. That threatened possible inflation and a weakening Euro.
Some pundits claimed the Euro weakness was a reaction to a divergence in the Italian bond market. The sharp drop in yields in the six month paper never moved the yield on the ten year which hung around 7%.
A few others pointed to the record number of Euros that the banks were parking in the ECB overnight. We had pointed that out in Wednesday’s Comments.
We suspect that all three items had some influence in the Euro’s fall, but I feel the balance sheet was probably 70% of the influence.
At any rate, the Euro continued to weaken throughout the morning, pushing stocks lower and crushing some commodities.
By day’s end, the S&P had fallen back into negative territory for the year. The Dow fell almost 140 points. Gold fell the equivalent of 245 Dow points as did oil. Platinum plunged the equivalent of 393 Dow points while silver imploded to the tune of 640 Dow points. The damage was widespread and rather ugly.
As an added bonus, for the bored history buffs out there, Art shares the following history lesson on the end of Rasputin.
On this day (+1) in 1916, one of history's most celebrated but inept
assassinations began. In the retelling of most assassinations we hear
how the victims might have been spared if....! You know the drill - if
the guy guarding Lincoln's box had not gone for a drink or if the
Archduke Franz Ferdinand had not had his car forced up a side street,
etc. etc.
But this assassination was more like Larry, Moe and Curly plan the Normandy Invasion.
The proposed victim was a semi-literate preacher who passed himself off as a Russian monk. Pre-dating some TV preachers, in an age with no TV, he preached that you needed God's forgiveness. And, to give God a wide enough target, it is necessary that you sin a lot. So, many of his convocations turned into what we might secularly call today - drunkfests or orgies. (But, he said God does need a large target.) Critics of the preacher called him "The Mad Monk". He called himself "Rasputin".
Anyway, Rasputin hit pay-dirt when he appeared to cure the hemophiliac son of Czar Nicholas II. Viewing the cure as a miracle, the Czarina demanded that all decisions be cleared with the miracle-maker, Rasputin. That made him the most powerful man in Russia which did not sit well with the nobles. Thus the assassination attempt.
On this night Prince Yussupov, the Czar's nephew-in-law, invited Rasputin over for some late-night cakes and wine. Yussupov and his pals loaded the cakes and wine with enough cyanide to kill a regiment of Cossacks. And just for insurance they put extra cyanide on the knives, forks, plates and glasses. Then Yussupov sat down and made small talk with Rasputin. Over several hours Rasputin ate most of the cakes and drank all of the wine. Then he asked the prince if he had any more wine.
In a panic, Yussupov ran upstairs where the co-conspirators gave him a gun and told him to shoot Rasputin. He shot him in the back at close range. Rasputin tried to turn but fell backward. A doctor was called in and pronounced the monk dead, saying the bullet had pierced his heart. An hour later the conspirators returned to move the body.
In a scene straight out of a Stephen King movie, as Yussupov bent over the body, the monk opened one eye and grabbed the Prince by the throat and started to beat the hell out of him. The others freed the Prince and the conspirators fled, locking the door behind them. Rasputin kicked down the door and chased them onto the palace grounds. They turned and shot him twice knocking him to the ground. Then using iron bars they beat his head to a bloody pulp. They then tied his hands and feet, cut a hole in the ice and dumped him in the River Neva. When the body was found, it was noted that he had freed his feet and one hand and, if he hadn't drowned, he might have come back one more time.
Peasants believe Rasputin put a curse on Russia which caused the revolution in 1918 and may had caused some recent problems (more wine, Mr. Putin?).
Traders thought the stock market was cursed yesterday - not by Rasputin but rather by the Euro.
»
- 14556 reads
- Printer-friendly version
- Send to friend
- advertisements -
what now , if everything seems to be bullish ?
Same as it ever was....BTFD.
Just added 100 ASEs to the pile. :<)
Or just Cashin on some art perhaps?
If I was him, I'd open a gallery.... Art Cashin's Gallery.
So, interesting move in PM land. Silver firming.
Is the up move nigh?
ori
/world/
Buy Low..
Sell High!
I see silver going down this afternoon.. or should I say I am hoping that it does move down so I can buy more..
Platinum is $1,300's..
What else needs to be said?
The U.S. is running out of debt ceiling, again!
Europe is printing like they are in a competition with Bernake.. "O" wait! they are!! LULZ!
God sends you signs all day every day!
either you want to see them and believe or you choose not too!
Either way God Loves You.. But not me.
The Four Companies That Control the 147 Companies That Own Everything
There may be 147 companies in the world that own everything, as colleague Bruce Upbin points out and they are dominated by investment companies as Eric Savitz rightly points out. But it’s not you and I who really control those companies, even though much of our money is in them. Given the nature of how money is invested, there are four companies in the shadows that really control those companies that own everything.
Before I reveal them, some light math:
According to the 2011 annual factbook from the Investment Company Institute, there is $24.7 trillion in all the mutual funds in the world (a little less than half from the US). Based on data from the ICI, $1.24 trillion of this is directly invested in index funds, plus another $992 billion in assets beyond that $24.7 trillion in Exchange Traded Funds, which aren’t mutual funds but are index funds. That means the bulk of that money is in “active” managed funds or fund of funds.
http://www.forbes.com/sites/brendancoffey/2011/10/26/the-four-companies-that-control-the-147-companies-that-own-everything/
http://www.ici.org/pdf/2011_factbook.pdf
25 Giant Corporations That Paid Their CEOs More Than They Paid Uncle Sam
It might make sense for a small business to pay its top brass more than it doles out to Uncle Sam in taxes, but what if that company has tens of thousands of employees and billions of dollars in profits? Well, this is America folks. What follows is a list of 25 mega corporations that paid one guy—their CEO—more money than what they spent on their entire federal tax bills last year. The same companies averaged $1.9 billion each in profits—money that was earned, in many cases, by cutting thousands of American jobs.
http://motherjones.com/mojo/2011/09/25-giant-corporations-paid-their-ceos-more-uncle-sam
10 CEOs Who Got Rich By Squeezing WorkersCorporate profits grew 38.8 percent in 2010, the biggest increase since 1950. But while CEOs earned an average of 20 percent more last year, many Americans continued to lose their jobs and benefits. The insecurity of the middle class has a lot to do with how executives are paid. Bonuses pegged to stock prices encourage CEOs to mercilessly outsource and downsize, slashing costs to boost profits. The result is that more corporate leaders are getting paid at the expense of average workers. Here are 10 of the worst offenders:
http://motherjones.com/mojo/2011/05/ceo-executive-pay-layoffs
The Top 10 CEO's who Fired Workers to make the bottom line seem more profitable so that they could take home BIG Bonuses! Fire the workers! and get a pay raise for doing it! Wall Street Loves the Middle Class! Loves to sell shit to the Middle Class and Loves to Axe the Middle Class for Bonuses!
Start your own website and stop making everyone scroll right through your never-on-topic babble.
Chump, be content to go FUCK YOURSELF!!!!
I like babble. It helps me determine if people with the intelligence to frequent this site, are positive or negative.
Freudian slips indicate
1. Horniness.
2. Hungriness.
3. A good days trading.
4. Fucking terrible ETF Short squeeze.
etc
I would think it would be hard to frequent this site and not be negative. Personally I make an effort each day to focus on what's good, and what I have the power to affect, because otherwise I'd lose my fucking mind as the world devolves into madness. I get on JW's case because he monopolizes the top of the page with long comments when he could *gasp* simply link to his own blog instead of copying and pasting entire fucking articles. His shit-for-grammar is annoying, too, but I'm a recovering grammar Nazi.
I'm also generally hungry and horny, but I'm a young married man who recently became a father so there's my excuse. 3 and 4 don't apply as I've made precisely 2 trades in my life, thank God.
Really? post Five (5) links to pages where I have Monopolized the top of the page.. when you say you wont it is becuase you can NOT! in fact provide anything near proof for Your Lie.
So lets get on with the Freudian Slips of Yours! Sweet Heart. http://www.youtube.com/watch?v=BEIslG2McpA
So you are un-happy with the Numerical Facts Provided then?
The Power of Positive Thinking! http://www.successconsciousness.com/index_000009.htm You are working on making yourself Beautiful on the inside so that you can be beautiful on the outside becuase of the beauty inside shinning thru!
That's all cutesy and shit.. but here are some facts for you.
1. If you are not responsible for the Financial Future of more than 100 people.. I mean whether they eat or not in the future.
2. If you are not responsible for the physical safety of your family.. outside of your own home as well, think elderly parents or Grand Parents.
3. If you Believe and Feel that being Polite is more important than Production and Quality of Work Product.
You have ovaries and they are getting in the way of A LOT! of the Content to be found here at ZeroHedge shared by the members of fight club.
This is mostly a Boys Club.. because we have a similar set of responsibilities. We are not here for Grammar, we are not here for spell check and we are not here to get caught up in the make believe world of unicorns shitting skittles down upon the world! Because God Loves Us!
We share our thought on investing.. in the hopes that by everyone beating the shit out of the idea so that one of our on-line family members does NOT! lose money for his family that he is responsible for. WE share our thoughts on Politics.. so that we can have open and honest discussions.. heated or not.. so that we may know we have not only our best interests at heart.. but as well our Local and Worlds best interests at heart.. because they are ALL truly connected.. We share info on fire arms.. what works and what doesn’t.. Gold, silver and food along with food storage..
But the back bone of ZeroHedge is the Numerical Facts and the Men or People of the House who are singularly responsible for the Financial Security as well as the Physical Security of themselves PLUS SOME!! And Plus Some Means LOT’s of Others!
Now if you don’t get my Grammar puns.. that’s fine.. nazi, no big deal.. but if you think that I am going to make a habit of coming down here to your level to have a conversation often.. you are wrong.. I don’t come to ZeroHegde to hand hold some emo-chick who wants to fit in.. or worse wants all of us to slow down and be polite because she said so. You don’t give me any pussy and I would venture a Guess that the other 500 different people or so who post on different topics are not required to give a fuck about your feelings either, based on the requirement of you providing pussy to have sway over the conversation.
So..
http://www.lifecare.com/services/pdf/1075_ThePowerofPositiveThinking_0309.pdf
And..
http://www.successconsciousness.com/forums/thread-welcome-to-the-positive-thinking-forum
You go and enjoy yourself.. and leave the ugly numerical facts to those of us that are Forced to deal with it ALL! because Your! "kind" is busy being Positive on the inside so that it can shine thru to the outside.
Get it?
Got it?
Good!
Holy shit dude. Did you really just deny that you post bullshit after bullshit at the top of the comments page, regardless of the article's subject content? I stopped reading right there, because you clearly have some navel-gazing to do.
They have to jack up the S&P so it finishes positive for the year.
Rasputin!
GWB's Carl Rove
Putin is the reincarnation of RasPUTIN IMHO:
http://thespiritoftruth.blogspot.com/2009/10/russian-leaders-question-of...
"Air Pocket" exactly.
but... air pockets actually feel good in your stomach when you're flying!
See, that's what these zombie banks are like. It takes many weapons and determination to kill them. Sadly, leadership lacks the guts, organization or motivation (read corruption) to get the job done.
Zero real returns on all asset classes, ladies! Just like Bill Gross sez.
All it takes is the will to stop using the services and their money.
+1
So simple yet so easily misunderstood by the sleepwalkers. Convenience is the excuse I hear most often. Why disrupt something convenient?
It took EXACTLY 30 minutes to open an account in the local Credit Union....and 20 of the 30 was standing in line with the others doing the same thing. Bank of America, you shame the nation and are Satin if ever there was one.
Satan, LOL
'Replace the economy, ignore the government'
--old anarchist slogan
Replace the Government, re-instate the Constitution.. and fix the loopholes in the laws created by the scum.. after beheading the scum of course!
The economy would sort itself out after that.
People like to eat and People like nice shit.
Shit pocket...you can feel the way the shit clings to the air in the eye if the Shiticane.
HA!
Caught flat footed and now I have coffee coming out my nose.
be careful out there
You know he just gets it all from ZH.
Little poll : if Taiwan gets invaded by China... will this lead to more votes to Ron Paul or less votes?
Up if you think more.
Down if you think less.
Pretty hard to put those vampires down. When they say GS is going bankrupt make sure to bring plenty of silver bullets to the string-em-up party.
You need more education re vampires Vs werewolves. Perhaps you were misinformed by errors in the movie "the Matrix".
Use silver bullets to kill werewolves, wooden stake through the heart to kill vampires.
I am shocked that old Art has never punched Pisani or slapped that Australian cunt in the face down on the floor of the exchange, just for the hell of it!
I’d rather see the sniffling little weasel on CNBC get punched, you know the sniffling little weasel that replaced that sniffling little weasel Carl Quintania (sp). Although Pisani or Leisman wouldn’t be bad choices either.
+1
Somebody's in a violent mood today... Coal for Xmas?
2011 goes down as one of the best years ever:
Biggest Muni-bond rally in history:
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
One of the longest, 3-year winning streaks for utility stocks
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
Epic year for many Dow stocks: VZ, MO, KFT, HD, WMT, etc.
Well done!
How do you see 2012?
You have to ask him on December 31st 2012.
Altria is NOT a Dow component.
Meanwhile, as Mama RoboTrader remains confined to her bedroom, single-handedly beating off RoboTrader, the real economy is in tatters.
Record numbers of SNAP recipients.
Record weeks of average duration of unemployment.
Epic inflationary pressures in many day-to-day "things you need" goods.
No charts. No time. Here at work for the next-to-last-day.
Yes, even in 2011, "one of the best years ever", people are still losing their jobs.
Happy New Year, RoboTraitor!
...
C'mon now robo, back away from the crack pipe. You are just hamming it up now.
Gold prices are low enough for Chairsatan to unleash QE3. I am no trader but after the Santa Clause rally on fumes the last couple weeks, going short is looking attractive right now.
Not yet. $/€ needs to drop to 1.25 or less, and so does crude. No QE3. It'll be Notional GDP targeting from now on, a sort of ongoing 'printing' party if you will and it'll be downplayed to the max.
I think gold is incidental here. They need oil to stay quiet; it's not going under $100 even with a shock dollar pop. At the quietest time of year that is a STRONG oil price. Thus, further beatings may be needed for morale to improve....but I have grabbed more ounces in here so I don't regret it later ;*)
Yep, cheap oil and food will keep the sheeple pacified, that and as long as there's $$$ on the EBT card.
But oil prices are far too high for Ben the Maniacal Monetizer to unleash the mythical QE3 Kraken...never happen...all just under the table from here on out.
Under the table like it has been mostly all along SD1.
The visible ANYTHIGN is dwarfed by it's invisible components.
ori
there's so many factors that can weigh in... but we all know what the Bernank will do as soon as he thinks that the USD is too strong; and we are slowly getting there.
And, oh by the way, yesterday's little "air pocket" is all but a distant memory.
S&P positive again for the year, after the not-to-be-believed "Pending Home Sales Index" blew away expectations.
http://fidweek.econoday.com/byshoweventfull.asp?fid=447358&cust=mam&year=2011&lid=0
How many standard deviations is that, Tyler?
Oh, and I did get junked for saying so yesterday afternoon, but I said the Chicago PMI and home sales index would provide plenty of rocket fuel for the HFT bots.
Aaaaand I was right.
Good grief. Is the ZH Youtube channel all about our cherished narcissist Raggie?
http://www.youtube.com/social/blog/zerohedge
Can't we get some other more inspiring content up there?
Absolutely. Put this up there:
http://www.youtube.com/watch?v=8_FTpVx89v4
Anything please. Even this is better than Raggie Milton.
http://www.youtube.com/watch?v=xCBT-rRHGmk
"The ECB had announced that its balance sheet had expanded by 10% in one week. If it kept expanding rapidly, it could double its size in less than a year"
Less than a year? WOW, after concluding they expanded their balance sheet 10% in ONE week, that would be a tad understated IMO.
Remember on January 1st, 2000 the entire world's leaders were getting moist, gushy and lovey-dovey over the new millenium? Well, look what the hell happened! January 1st 2000 PART Deux coming up and what do you think will happen after they get moist, gushy, and lovey-dovey again....
And as a tribute to Rasputin:
http://www.youtube.com/watch?v=o7gFlSGXt_k
Questions for Tyler and other more enlightened folks at ZH forum - If ECB balance sheet is inflating then why is this bad for Gold, SIlver, given yesterday's blood bath and today's constant hemorrhage? Also on the much talked about USD liquidity squeeze. Why is that not resulting in treasuries sell off?
Finally is the Gold/Silver bull markets over? I am still long SIlver and Gold (physical) but I am not ready for a 10 year bear market.
Good questions, ask again on a newer thread. Short answer: oil and commodity prices are getting whumped by a strengthening in the US dollar. Partly a question of Euro weakness, partly (maybe) central bank intervention to keep oil from breaking out during the middle of winter due to geopolitical/inflationary factors.
Gold/silver get run over by the FX/oil bus. Transitory.
Thanks Jim, will post again.
USD is heavily in demand because foreign nationals plan to immigrate to the USA.
Throughout history, the elite of Europe, China, ME, Africa, have sought the perceived "greener pastures" of the USA.
I am an Aussie, and life is good in Oz, but if I had millions, I would migrate to the USA, live in a nice suburb, buy a ranch, an F650, a boat, a RV Winnebago, house on the lake, apartment in New York. You get my drift.
The US elite know this and are busy lobbying to change the laws as we speak.
He is still getting away with the old mumble from the floor. Total rubbish. Everybody with 1/2 a brain new understood a week ago that the success of the 3yr LTRO meant that the ECB's balance sheet was expanding. Yesterday's formal release of the data had no meaning...except for Art, who needed a story to dress up as his "market wisdom"
You've pretty much managed to squeeze in nearly every myth about Rasputin perpetrated by the aristocracy to discredit him. He never claimed to be a monk, but was a 'strannik' - a wandering spiritual pilgrim, typical of the times. The sinning you speak of was a sign of the Khlysty, or flagellants, which the clergy accused him of belonging to, although he never participated in their ceremonies and was a member of the Russian Orthodox Church.
He did not 'call himself' Rasputin. It was his family name, borne by his father, grandfather, etc. and common in the area, as it means 'crossroads'. His home town of Pokrovskoye was at the crossroads leading to 2 more major towns. The drunkenness and promiscuity charges are laughable, coming from the aristocracy who consumed French champagne and vodka by the case, and among whom venereal disease was rampant due to their own promiscuity.
He never cured nor claimed to cure the young tzarevitch of hemophilia, but he could stop the bleeding and lessen the pain the boy felt, as testified to by the doctors who could do nothing for him.
Why did the aristocracy, clergy and bureacrats spread rumors to discredit Rasputin? The clergy was jealous because Rasputin gave more dynamic sermons, which many flocked to, and could relate the spiritual concepts to how they should live their every day lives. But mainly, the aristocrats and bureacrats hated Rasputin because he advocated equal rights for the oppressed Jews (who were forced to live in a ghetto and had no rights) and was anti-war in a pro-war era. The aristocrats, as were most Russians, were hardcore anti-Semites. They hated Jews and wanted them eradicated.
The peasants never thought Rasputin put a curse on Russia. You're talking about his prediction that if he were to be killed by a member of the aristocracy, the royal family would not live more than 2 years after his death. The Tsar was not hugely popular among the peasants, as he led many of them to slaughter in the unpopular Russo-Japanese War. But they loved and respected Rasputin as the healer they knew him to be.
The Tsar sanctioned regular raids called 'pogroms' on Jewish villages, where the residents - whole families - would be tortured and slaughtered. He had the blood of many innocent people on his hands. That's why they called him "Nicholas the Bloody". Rasputin never harmed nor killed a soul in his life.
Read more in the book, "Rasputin and The Jews: A Reversal of History". http://www.amazon.com/gp/product/1461027756
(also on Nook)
Also on the website: http://therealrasputin.wordpress.com/