This page has been archived and commenting is disabled.

Bear Market Open Thread

Tyler Durden's picture


Since Zero Hedge updates over the next sevearal few hours will be sparse, please use this opportunity to share your transitory outlooks on current events, life, google trending topics, and pretty much anything else.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/19/2011 - 22:44 | 1580009 nmewn
nmewn's picture

The Man on Mars says slurpee ready ;-)

Fri, 08/19/2011 - 17:41 | 1579039 Apocalypse Now
Apocalypse Now's picture

It takes both focused monetary and fiscal policy to create a solid foundation for growth, but it is easier for Congress to point the finger at the fed.

Congress is scapegoating the fed and they are just as guilty as they structurally just did what lobbyists wanted them to. Glass Steagall, HFT, Unlit Dark Pools, NAFTA/CAFTA, and captured regulators have destroyed jobs and markets. The latest on the SEC shredding documents for the banks tells everyone that the cops are on the take. The corruption is being exposed but nobody is doing anything about it or slapping on the wrists (steal $1 billion and pay a $50 million fine) so it is destroying confidence in the markets (crisis of confidence).

Pensions and 401Ks are going to go into private equity as the market game is rigged with the exception of IPO’s for raising new capital. Take a look at the actual cash flows of the market over the last thirteen years and you will see no returns, negative real returns, and trillions going in with nobody benefiting but banks and financial service companies extracting trillions by bribing regulators and rigging the game. Companies are starting to wise up (Ratigan rant).

The great Danish physicist Neils Bohr once said the opposite of a great truth is also another great truth.
Faber said today that the fed is evil because it rewards spendthrifts at the expense of savers that are forced to speculate with their life savings and are ill equipped to deal with volatility in stocks and bonds. Easy for collusion when some exchanges, central banks, and market makers are owned by same family trusts. What is going on is that surplus labor (savings) is looking for yield and has to risk it in the market or have a negative real return – much of which is ending up in a few hands – it is basically just like wealth transfer from a tax perspective (extraction).

So we spent trillions and gave that to banks when we could have paid off all home and car loans with the same money. We will have to pay taxes on that money in the form of interest payments to the fed, and we have no jobs and no asset inflation value to show from it because it went into a few pockets and never made it to main street. Investors are fleeing, and all of these computer HFTs and other wealth extractors are now turning on each other with little long term investors left, generating the volatility we see. The banks sat on the money and are getting a risk free return by borrowing with the fed and depositing surplus at the fed.

Politics is a clash of self interests dressed up as something more so I understand everyone is talking their own book. The private fed now owns more homes than any other entity while more than 11 million homes are vacant. Whatever the next program is, they can’t just print money then hand it back to the banks that own the fed so they can get a risk free return and not loan it. We are in a classic “death spiral” in economics and we need to restore long term confidence so that companies feel confident in reinvesting in capital and jobs. Because of poor balance sheets, the banks are a bottleneck to trickle down top down economics right now.

One of our problems is demand destruction because of uncertainty in the business climate, the lack of consumer confidence due to loss and threat of loss of jobs, threat of loss of the social security safety net which would require more savings, reduced net worth due to decline in housing asset values, reduced net worth due to decline in investment asset values (except gold & silver), reduced credit availability due to all of the above, and banks declining credit quality due to all of the above. Classic death spiral in economics.

Which came first, consumer confidence (currently chickens) or the jobs (nest egg that builds into consumer confidence)?

Fri, 08/19/2011 - 18:03 | 1579249 tip e. canoe
tip e. canoe's picture

Which came first, consumer confidence (currently chickens) or the jobs (nest egg that builds into consumer confidence)?

(c) trust and integrity

Fri, 08/19/2011 - 19:15 | 1579449 DeadFinks
DeadFinks's picture


Fri, 08/19/2011 - 20:29 | 1579683 faustian bargain
faustian bargain's picture

It's intuitively obvious that neither Congress nor the Fed would want to share the blame for our economic distress. To say only that Congress is trying to scapegoat the Fed is a little one-sided, almost as if you're defending the indefensible Fed. The fact is, they need each other in order to exist. If Congress really wanted to scapegoat the Fed, they could just end its charter. But that's not what they want to do, because it would probably mean an end to infinite deficit spending.

Fri, 08/19/2011 - 22:11 | 1579922 nmewn
nmewn's picture

"The fact is, they need each other in order to exist. If Congress really wanted to scapegoat the Fed, they could just end its charter. But that's not what they want to do, because it would probably mean an end to infinite deficit spending."

This is it...exactly.

They can promise anything to anyone for their vote knowing an infinite supply of fiat is there. But when that fiat becomes worthless to anyone & everyone? all politicians they never think it all the way through.

I have said it before and I'll say it again...there is more assembled brain power here in the mass that is ZH than in all of DC/NY/Boston/London/Brussels/Peking.

They know it and they tremble in fear reading it.

Sat, 08/20/2011 - 01:27 | 1580344 Apocalypse Now
Apocalypse Now's picture

Yes Faustian Bargain, I agree with you and basically stated that they were equally culpable although often times the fed takes the heat with no mention of the role of government that doesn't read the bills they are voting for or sponsoring

I just wrote a piece on how the system works at the end of these posts.  Basically the revenue on the interest on the national debt is rebated back to the government and recognized as interest, but 1% goes to the fed.  That's why Biden stated that we had to keep spending money or we would go broke.  Within the myopic system, higher debt provides higher revenue for more spending - a self sustaining increasing loop.  Private central banks want to lend money for deficit spending and they do it for the left (social welfare deficit spending) and the right (war).  The lien is somewhat surprising as citizens are pledged (future labor in taxes) along with resources, toll roads, and homes.  Right now the fed is the largest owner of homes in the US.  Remember they are printing paper out of thin air and when an entity defaults the banks can reposess a real asset.  The temptation would be to print monopoly counterfeit money that is not audited and buy up the world's real assets and resources along with shares.  I often wonder who is buying all the IPOs and where the significant capital comes from - I wouldn't be surprised if the big banks magically come up with capital from derivatives and then use it to take a large percentage interest and credit the new IPO with the new capital.

Sat, 08/20/2011 - 09:35 | 1580763 tip e. canoe
tip e. canoe's picture

Right now the fed is the largest owner of homes in the US. 

no one should forget this very simple fact.   truth is simple, it's the lies that are complicated.

Fri, 08/19/2011 - 22:58 | 1580045 tom a taxpayer
tom a taxpayer's picture

Apocalypse Now - Great analysis! You are on fire tonight with several insightful posts. Thanks. 

Sat, 08/20/2011 - 01:17 | 1580334 Rick64
Rick64's picture

  The argument for having the FED or a central bank that operates outside of political control is that if congress controlled the monetary system then we would have out of control spending with huge debts and no way to pay them back.  Then other countries and financial institutions wouldn't have confidence in our monetary system. We have that now, but on top of it we have huge interest payments. The only thing that saves us from the other countries completely abandoning our currency is that we are the reserve currency plus we have military superiority which enables us to make the debt even bigger.

  The FED doesn't have enough capitol or assets to back our debt. Is it backed by our resources, potential, GDP ect.. if so then whats the purpose of the FED? The only way they could come closeto backing our debt is through fractionalized reserve banking;whereas, if congress controlled it they wouldn't have this authority to use fractionalized reserve banking so our debt couldn't have reached the size it is today.

The politicians have enabled this whole scam, but the bankers have used the politicians greed to infiltrate and eventually control the system. Now the FED is so intertwined in the U.S. and  international financial markets that they have become a neccessity for fear of collapsing the system.

 I say print up 14 trillion dollars pay off the debt. The dollar will plummet. Revoke the FED charter. Then we would have a clean slate, and we can start a new currency printed and controlled by congress backed by gold.  The new currency that we print will not need to be repaid only controlled according to the size of the economy, and no interest payments. We would have the strongest currency in the world, but unfortunately this won't happen because the international bankers would lose the leverage they have on the world.

Sat, 08/20/2011 - 02:53 | 1580361 Apocalypse Now
Apocalypse Now's picture


Sat, 08/20/2011 - 02:55 | 1580362 Apocalypse Now
Apocalypse Now's picture

Yes, it was legitimate when the fed originally put up capital but the figures are so large now that you are right the numbers are astronomical.  For example the 1.6 quadrillion in derivatives if in dollar form stretched end to end it could reach the sun and back a couple times (Truly astronomical as in AU's).  Bankers exert influence inl the West, the only wild card is the military as a balancing act and Soros recently said the US reserve currency was in question but it has the largest military.

Your idea has been tried by Andrew Jackson, Abraham Lincoln, JFK, Zimbabwe and Germany after hyperinflation.  Recently Ron Paul suggested that we should wipe out ~$1.5 trillion of the debt and related interest that was just printed out of thin air.  With the trillions in bailouts, we could have paid off all loans in the US - imagine that.  The question is whether we will have some jubilee to wipe out debt to spur on growth again and clear the deck.  The next question would be WHO OWNS THE ASSETS?  Most important question and nobody seems to ask that question of ownership as people are just interested in propping up prices.  Ownership is power and control - own all houses in the US and although technically bankrupt and backstopped by the government, you would be powerful.


Sun, 08/21/2011 - 02:25 | 1581065 Rick64
Rick64's picture

Your idea has been tried by Andrew Jackson, Abraham Lincoln, JFK, Zimbabwe and Germany after hyperinflation.

Yes  but the bankers played a part in making them not work or threatening the outcome.  Jackson was successful, but he had to wait until the bank charter ran out which wasn't until the last year of his second term so he didn't have much time to implement. Look at Libya, Iran, and some others that have limited the bankers influence and had very good results.


 I would force them to sell them back to the government right before implementing a new currency backed by gold when the FRN would be at its lowest point.

Thanks for the reply wish I had more time to go into this, but its a busy weekend.

Fri, 08/19/2011 - 17:13 | 1579050 monopoly
monopoly's picture

Like the open thread. I think that means Tyler and staff are taking a much needed break. No matter what transpires we cannot act until Monday, unless we trade futures markets which I never do so lets just let them shut it down till Sunday afternoon and rest. We do not want these good folks burning out on us. We need them, that is for sure.

And if you can, donate to this site of truth. I have said it many times, Zero Hedge  is not  always right, but they are always truthful. How much is that worth in this broken country with corrupt politicians and Wall Street scum?

Now guys, we all know nothing goes straight up, no matter how positive the fundamentals are. The gold chart is way over extended, yes, it can become even more so, but at some point we will have a serious correction. And at that point, I promise you, the "brilliant ones" will be back here advising us of the ultimate bubble, how it is over, silver is going to 22, and we were stupid to have stayed in until the crash of gold. I have heard it over a dozen times the last 5 years or so. And it will not change.

Another point, many talk about when the bull market in gold ends and it goes back to 600 or 800 or whatever. To me, unless there is a fundamental change in the way countries value their currency, do what is right for the people long term and make the decisions that will cost them their jobs, I do not see gold collapsing. At some point it will stop moving higher, but I think it will be a small part of a future currency, and be a store of value for a long period of time.

And maybe, just maybe, we will find a Thomas Jefferson or John Adams type to lead this country. I assure you, they will not take money from BAC. Until then, just check out the White House blog for tee times. What a pathetic excuse for a president. Have a good weekend all. I think Tyler has the right idea. I am beat. Been a good week for us sick metal, miner investors. :)

Fri, 08/19/2011 - 17:30 | 1579134 andybev01
andybev01's picture

Or they're busy checking their bug-out bags and re-familiarizing themselves with their spider-hole maps.

Fri, 08/19/2011 - 21:15 | 1579778 MsCreant
MsCreant's picture

My coin shop is open tomorrow.

Fri, 08/19/2011 - 17:13 | 1579051 FLIP THAT BOND
FLIP THAT BOND's picture

Market crash bitchez! It's coming before Bernanke's Jackson Hole speech Friday and then he'll do QE3 or right after the speech if he stays away from QE3 talk and the market gets scared the Fed won't save them!! Silver won't be able to stand the heat of the coming crash and will get dragged down with it until QE3 is announced!!!!!Dollar's going to pop, bonds are going to pop in a flight for safety!!!!!!!!!!!! Multiple margin hikes coming in gold right as equities get hammered in order to try and amplify the effect but gold will hold it's own!!!!!!!!!!!!!!!!!!!!! Silver to gold ratio hits below 30 to 1 by December!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Gold hits min. $10,000 and silver to gold ratio hits min. 10 to 1 by 2013 which means silver hits min. $1,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 08/19/2011 - 17:16 | 1579065 Clay Hill
Clay Hill's picture

Picked up a Romanian Draco pistol yesterday, got 20 Silver Buffaloes in the mail today. Life is good.

Fri, 08/19/2011 - 19:20 | 1579474 toady
toady's picture

Gonna make silver bullets?

Damn Werewolves!

Fri, 08/19/2011 - 19:46 | 1579559 Clay Hill
Clay Hill's picture

Naw, I use colloidal silver mixed with garlic oil in a super-soaker.

Works for vampires too, and doesn't wake the neighbors.

Fri, 08/19/2011 - 17:16 | 1579068 YellowShark
YellowShark's picture

Whiskey River, don't run dry - you're all I've got to take care of me...

Fri, 08/19/2011 - 17:29 | 1579131 caerus
caerus's picture

willie's da sheet

Fri, 08/19/2011 - 17:20 | 1579085 e_goldstein
e_goldstein's picture

Bulls are tasty... unless they are Au or Ag, then they break your teeth.

Fri, 08/19/2011 - 17:20 | 1579088 Apocalypse Now
Apocalypse Now's picture

In the Year 2000, Mr. T. Edition Prediction:

For one, people will wear their wealth again around their neck.

As for short term predictions, this market is like Eliot Spitzer's "girlfriend's" pantyhose - it's up, it's down, it's up, it's down.

Fri, 08/19/2011 - 17:24 | 1579093 iLoveMisesToPieces
iLoveMisesToPieces's picture

Ladies and gentlemen,

Take this weekend to go do what you love most.  Last weekend I took a 1 night camping trip with my fiance and our dog.  Let me tell you how liberating it was that my only concern was the weather.  Not the Fed, not the market, not Oblahblah... the weather.  It puts things into perspective and thing we all need a regular dose of perspective.  Make it count!

Fri, 08/19/2011 - 17:29 | 1579129 JW n FL
JW n FL's picture

she is going to take half your shit. think about that.

Fri, 08/19/2011 - 17:36 | 1579154 iLoveMisesToPieces
iLoveMisesToPieces's picture

No, I'm pretty sure I found a good one.  And hey, in that off chance she's going to have trouble because all my stuff is tied up in physical gold.

Fri, 08/19/2011 - 20:15 | 1579659 Cheesy Bastard
Cheesy Bastard's picture

That will still leave you with only 1 testicle.

Fri, 08/19/2011 - 17:36 | 1579157 andybev01
andybev01's picture

Are all states 'communal property'?

Fri, 08/19/2011 - 18:51 | 1579382 caerus
caerus's picture

arizona, california, idaho, louisiana, nevada, new mexico, texas, washington, wisconsin

Fri, 08/19/2011 - 18:53 | 1579384 Cammy Le Flage
Cammy Le Flage's picture

Bitter are we?  Has this happened to you?

Fri, 08/19/2011 - 18:53 | 1579385 Cammy Le Flage
Cammy Le Flage's picture

Bitter are we?  Has this happened to you?

Sat, 08/20/2011 - 03:25 | 1580442 KowPie
KowPie's picture

"she is going to take half your shit. think about that"


And his dog.

Fri, 08/19/2011 - 17:54 | 1579224 gwar5
gwar5's picture

I agree with JW. If it took you this long to feel liberated, why ruin it already? If you thought the Fed was bad, wait until she starts ragging on you for two days because you left the mayonnaise jar out.

Go to Costa Rica for a week without her. Get yourself over to the Blue Marlin Bar at the Del Rey Hotel. Then make your way over the Beatle Bar in Jaco. When you come back you'll be cured and know what real liberation is. Post your avatar picture at ZH wearing the bar sponsored T-Shirt as proof of life to receive your doctorate in liberation. 





Fri, 08/19/2011 - 18:37 | 1579352 Dapper Dan
Dapper Dan's picture

I lost my innocences in a bar called Club Hollywood in Jaco on a surftrip, lost my wallet and credits cards too, if your reading this post sweet heart.

Fri, 08/19/2011 - 19:47 | 1579563 thedrickster
thedrickster's picture

Tamarindo bitchez.

Fri, 08/19/2011 - 17:21 | 1579096 drswhaley
Fri, 08/19/2011 - 17:22 | 1579100 Dingleberry Jones
Dingleberry Jones's picture

I am heavy into SPY puts with the idea of selling most before Jackson Hole.


Fri, 08/19/2011 - 17:23 | 1579104 css1971
css1971's picture


I've noticed the main pesonality trait dominant in our society is vanity. Everywhere vanity, so a bit of perspective.

  • Name me one person from 10 years ago. Should be easy.
  • Give me the name (nothing more) of one person from 100 years ago.
  • 1000 years ago? Maybe a few.
  • 10,000 years. Oops don't think you'll come up with anything.

Truth is, you are insignificant. Nothing. Everyone is insignificant. There is only one thing you can do during your life which matters, everything else you do is irrelevant... Completely meaningless in the larger view.

So... I recommend you take care of your family.

Fri, 08/19/2011 - 17:43 | 1579184 gwar5
gwar5's picture




"Lyuba" was born 40,000 years ago. She has four legs and was frozen in the arctic permafrost until found 3 years ago.

Lyuba: Don't Touch the 40,000-Year-Old Mammoth |

Don't let your cute babies get lost at the grocery store or they'll end up on display.


Fri, 08/19/2011 - 20:33 | 1579688 faustian bargain
faustian bargain's picture

But my family is insignificant, so...

Fri, 08/19/2011 - 23:33 | 1580164 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I agree with your last sentence and that is all.  We are all God's children and of paramount significance.  We are all intergral parts of a spiritual chain which will live forever.  I never look at the stars in the night sky and think I am insignificant.  I am an intergral part of that.  That is not vanity. That is reality.  All we take with us is love and knowledge.  Everything else is "chase after wind".

Fri, 08/19/2011 - 17:23 | 1579108 SwingForce
SwingForce's picture

Wow 6 people who took Tyler up on his offer, out of 230. 

Fri, 08/19/2011 - 17:25 | 1579116 Cman5000
Cman5000's picture

The 2008 financial crisis. Then, many investors stepped up their selling on Friday afternoons out of fears that another bank might fail over the weekend -- as Lehman Brothers did on Sunday, Sept. 15 2008. I wonder how this weekend will go and next week ?

Fri, 08/19/2011 - 17:26 | 1579121 Apocalypse Now
Apocalypse Now's picture

You thought the financials of Chinese companies were bad, stay away from their energy pills!

Analyst to Michael yesterday, "Dude you're getting a Dell" downgrade.

Fri, 08/19/2011 - 17:28 | 1579126 Mayer Amshel
Mayer Amshel's picture

Whisky > Rum

Fri, 08/19/2011 - 17:33 | 1579144 Steak
Steak's picture

Hi ZHers.  Since it is Friday and an open thread, I'll take the opportunity to share some more bump with y'all.

By popular request that I cut it out with the new sound crap, this playlist takes you to the newest and hottest of that old standard, trance music.  In a word: lush

back to basics (a playlist):

Fri, 08/19/2011 - 18:50 | 1579378 fuu
fuu's picture


Fri, 08/19/2011 - 18:53 | 1579386 caerus
caerus's picture


Sat, 08/20/2011 - 03:49 | 1580461 EhKnowKneeMass
EhKnowKneeMass's picture

Good to see you back, Steak! I had thought that you and Marla disappeared together.

Fri, 08/19/2011 - 17:36 | 1579152 alphalpha
alphalpha's picture

why do people believe in QE3, i.e. in more of the same? the recent developments over the past two weeks showed that the market finally realized that printing money does not replace demand for goods and services after a debt crisis.

bernanke will try to pull a new rabbit out of his hat, but the only thing he can do eventually is to buy time. time for the world economy to regenerate and for imbalances to be resolved by our prospective political leaders. this may sound like wishful thinking but what else remains? history tells that a failure to get there in time will create a breeding ground for extremist thoughts or worse.

Fri, 08/19/2011 - 17:38 | 1579165 iLoveMisesToPieces
iLoveMisesToPieces's picture

I don't think they can announce QE3.  I Think QE3 is just backdoor intervention, bailouts, etc.  to keep things looking as normal as possible.

Fri, 08/19/2011 - 17:42 | 1579176 Starving Artist
Starving Artist's picture

Agreed, it will be different in form.  It's only effective if it's a surprise.

There's been a lot of bleeding this week, but I'm not seeing any capitulation.

Fri, 08/19/2011 - 18:20 | 1579303 buzzsaw99
buzzsaw99's picture

farmer bernanke will slop the bank hogs one way or another.

Fri, 08/19/2011 - 17:36 | 1579156 Muddy1
Muddy1's picture

I'm off to a Rockies vs Dodgers game tonight.

"What do you want? I want to be left alone.  I want people to think for themselves.  No, I mean what do you want?  A dog and a beer."  God how I love the movie Field of Dreams. 

"Hey dad, wanna have a catch?"  God how I miss my old man.

Have a great weekend everyone.

Peace out

Fri, 08/19/2011 - 17:40 | 1579172 andybev01
andybev01's picture

Those dodgers fans can be murder.

Sat, 08/20/2011 - 11:23 | 1581017 Hulk
Hulk's picture

Sf fans are braindead...

Fri, 08/19/2011 - 17:37 | 1579159 digalert
digalert's picture


JPMorgue failed to protect it's silver parity

SILVER $42.88 vs $34.35 (JPM)

bwaaah! maybe better luck next week

Fri, 08/19/2011 - 17:39 | 1579169 BearishFeijoadaSushi
BearishFeijoadaSushi's picture

Chavez asks for physical delivery of gold bitchez and gets a downgrade bonus.

Fri, 08/19/2011 - 19:01 | 1579409 FLIP THAT BOND
FLIP THAT BOND's picture

Something interesting the S&P said - "When you have the reserves held abroad, you do have some level of confidence," Arevalo told Reuters in an interview. "That is not going to be the case anymore. They are going to be held at the central bank domestically, then you fall in the same circle of lack of transparency that everything else has in Venezuela." - So basically there worried about lack of transparency for Venezuela but what about the lack of transparency for the gold the US holds? Fort Knox hasn't been audited in how many years? The stuff is still officially valued at $35 / oz. Nobody knows if it's even there any more. Ron Paul, a senator, isn't even allowed in to see if it's there. Here's the article about the S&P downgrade:

Fri, 08/19/2011 - 23:22 | 1580120 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Ft. Knox has not been audited since 1953 and even then it was audited by Pussy Galore.

Fri, 08/19/2011 - 17:42 | 1579178 LRC Fan
LRC Fan's picture

My uncle's birthday is in a few weeks.  He joked with me to get him something nice since he never really asks for anything nice but this year he's feeling like I owe him something big.  We both laughed and I said, here's some free ready?  He says yep...I  said, buy silver.  And buy gold.  And keep buying.  He gave me a smile, shook his head and walked away.  He does have a few oz of gold and some silver, but certainly way more cash in the bank that could be used to load up.  I told him that I gave my dad the same free advice about 18 months ago and his $20 silver eagles are looking pretty decent, still in the original tubes. 

Fri, 08/19/2011 - 17:47 | 1579195 unum mountaineer
unum mountaineer's picture

Ag how much by labor day?? all this from a guy with a yellow hat...

Fri, 08/19/2011 - 17:52 | 1579217 marcusfenix
marcusfenix's picture

brave new world bitchez!

a little iron maiden to set the mood

Fri, 08/19/2011 - 17:53 | 1579220 toady
toady's picture

What do you think about these 'flash mobs' stealing from 7-11's?

These people aren't smart enough to go upscale?

Bags of chips instead of silver & gold from a coin store?

I'm just sayin... Think a little more high $!

Fri, 08/19/2011 - 17:56 | 1579232 thedrickster
thedrickster's picture


Fri, 08/19/2011 - 21:17 | 1579784 MsCreant
MsCreant's picture

Google it, they are going to upscale clothing places, computer places, and, wait for it, Victoria's Secret!

Fri, 08/19/2011 - 21:35 | 1579826 toady
toady's picture

Sounds like some of them are thinking after all.

I've seen a half dozen on the local news, every one of them a 7-11 or gas station.

Fri, 08/19/2011 - 17:53 | 1579222 mfoste1
mfoste1's picture

To everyone calling for QE3.....Why would the Fed implement it now? The bond market is doing its job for them, driving down interest rates, thus pricing in deflation and recession. IMO, no QE for at least 9 mos.

Fri, 08/19/2011 - 19:08 | 1579429 FLIP THAT BOND
FLIP THAT BOND's picture

As long as the market's can sell of, bonds can stay low..but once there's no more selling left in the markets....uhoh.  So, the question is: How low can the market's go?  Dow 9,000? 4,000?  There is a point where there is just no one left to sell stock and buy bonds at..that is the max they can push it to.

Fri, 08/19/2011 - 17:54 | 1579223 sasebo
sasebo's picture

Went to local financial institution for low 5 figures in cash today. Told me they don't keep that much cash in vault because of local crimes. Said they would order from THE FED & deliver next thursday. Seems like it wouldn't take a lot for a run. Everybody in cash or a few biggies?

Need TD's input.  

Sat, 08/20/2011 - 03:10 | 1580430 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Green cash in case of deflationary spiral or bank run.  PMs for any eventuality.  Tuco

Fri, 08/19/2011 - 17:56 | 1579231 European American
European American's picture

What percentage (present dollar value) of gold vs silver do you have?


Me: 80% Gold, 20% Silver



Fri, 08/19/2011 - 18:25 | 1579318 Sequitur
Sequitur's picture

85% gold, 15% silver. Muni bonds, two long equity positions, and shorting Italian index and all the banks. Eurozone will implode, Germany will never ever agree to bankroll its WWII enemies.

Fri, 08/19/2011 - 19:07 | 1579425 Stumpy
Stumpy's picture

30% gold, 70% silver. 

Fri, 08/19/2011 - 19:14 | 1579447 FLIP THAT BOND
FLIP THAT BOND's picture

Rollin' on sillllver! 20% Physical, 40% long term call options, 40% cash to dump into call options when QE3 is announced.

Fri, 08/19/2011 - 19:20 | 1579476 Stumpy
Stumpy's picture

I'm not disciplined enough to keep cash. I guess I'll learn.

Fri, 08/19/2011 - 19:27 | 1579498 Starving Artist
Starving Artist's picture

50/50 by fiat price.  I just started buying last week though, slow learner.

All the nutjobs/pumpers on the PM sites kind of turned me off at first.  Hope there's a big dip to load up.


Fri, 08/19/2011 - 22:39 | 1579988 European American
European American's picture

Slow learner but a smart learner, nevertheless. Might I be so bold as to suggest if you plan to be making a purchase in the next week or two,  consider directing your funds primarily into silver as it appears to be a fabulous deal while still in the low 40's. Whereas Gold, after it's recent gains, might slip down a few dollars or so before you might care to BTFD. I was fortunate to get on the bandwagon a few years ago when I came into a healthy sum and boy was I lucky I came to ZH and some of the other great sites. I'm actually doing *quite well* right now with that decision (to put almost every cent into the glittering metals). Anyway, most people here are miles ahead of me, but some of their juicy morsels trickle down and penetrate my thick cranium. I find it's a matter of gleaning what I can then crossing my fingers. Beginners luck in my case. Good luck and Good Hunting.

Fri, 08/19/2011 - 23:10 | 1580084 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Agreed, lately silver has underperformed relative to gold and I am "guessing" that will be rectified to some extent in the near term.  Luck is hard work meeting opportunity.  Good trading.

Fri, 08/19/2011 - 17:57 | 1579235 thedrickster
thedrickster's picture


Big Sis’ Latest Terrorists: More White Americans

Just because you're paranoid, doesn't mean that they aren't out to get you.

Fri, 08/19/2011 - 19:03 | 1579415 caerus
caerus's picture

+ cobain

Fri, 08/19/2011 - 23:01 | 1580055 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, we know who the terrorists are don't we.  They are those former Americans now globalist freedom takers working for the alphabet soup government agencies in WDC.  They will find out eventually in terms of career choices they "chose poorly"!


Fri, 08/19/2011 - 17:58 | 1579237 Badabing
Badabing's picture

What a week! After today’s seesaw ride I’m glad it’s over.

 My personal retire account “PRA” that’s what I call my stash of PMs.

It yielded $10493.00 this week noyse. I hope everyone did well too.

I expect to buy more at my coin dealer some time next week when I loose some of this weeks gains because of margin hikes.

Fri, 08/19/2011 - 18:02 | 1579245 johnjb32
johnjb32's picture

Must see video:

Michael C. Ruppert calls upon the world's artistic and musical leaders to take part in the global generational revolution taking place right now.  He pulls no punches as is apparent in the title, "SAY MY FU**ING NAME" ...

Fri, 08/19/2011 - 19:17 | 1579458 DavidPierre
DavidPierre's picture


Ruppert has PAID HIS DUES and has been all over this AmeriKlan Nazi/Facist shit for 40 years.


And read his fucking book about 9/11  !!!

Crossing the Rubicon

A book meant to make us think and inspire us all to be courageous against the forces that want us to live in fear.



Fri, 08/19/2011 - 18:04 | 1579258 GenX Investor
GenX Investor's picture

Go listen to Cramer-ica if you want to learn how Chimpanzees trade the stock market and make macro directional bets.  Buy, buy, buy, get in the game!!!!

Fri, 08/19/2011 - 18:17 | 1579295 Irwin Fletcher
Irwin Fletcher's picture

Cramerica is an insult to chimpanzees.

Fri, 08/19/2011 - 19:08 | 1579421 caerus
caerus's picture

you usin the whole fist doc? moon riiiver...

Fri, 08/19/2011 - 18:05 | 1579259 mrkolice
mrkolice's picture

and one for the weekend:


nice sleep everyone, the show must go on.

Fri, 08/19/2011 - 18:06 | 1579263 TheAkashicRecord
TheAkashicRecord's picture

Turn on some Thievery Corporation and get that party started!

Fri, 08/19/2011 - 18:09 | 1579269 Stuck on Zero
Stuck on Zero's picture

What do you guys think of the gold/platinum ratio?  It was only back in 99 or so that the two crossed.  You think it's time to go for platinum or is gold overvalued?  Platinum is an industrial metal and if the economy goes so will it go.  Ideas?

Fri, 08/19/2011 - 20:16 | 1579643 Badabing
Badabing's picture

Oct 2008 also plat lost $1536 from high around $2280 to around$740 in three months.

Fri, 08/19/2011 - 22:57 | 1580042 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That is a very good question but I believe that just three or four years ago or so they crossed or damn near crossed.  I think it is worth a nibble if and when they cross again but I would tread lightly as we are in unchartered time.  Remember, although you probably already know platinum is a 50 ounce contract whereas gold is a 100 ounce contract.  Personally,  I would trade the physical and forget about the leverage.  Good trading.      Tuco Trader:)

Fri, 08/19/2011 - 18:15 | 1579283 Havana White
Havana White's picture

CME margin hike will have next to nil effect on gold.  Silver rushed up and CME plays a comparitively significant role in overall volumes.  Not so gold, vast and universal.

Still shorting the hell out of QQQ, etc.  This party's just getting started.

Fri, 08/19/2011 - 18:16 | 1579289 rodocostarica
rodocostarica's picture

great thread bitchez. Thanks Tyler and enjoy a good weekend.

Fri, 08/19/2011 - 19:19 | 1579465 gwar5
gwar5's picture

Blue Marlin Bar at the Del Rey, Bitchezzz!

Fri, 08/19/2011 - 18:17 | 1579294 turkey george palmer
turkey george palmer's picture

I think it is hopeless to hoard PM's your profit will vapoize just as you need it for survival. better own a plow or some goats

Fri, 08/19/2011 - 19:16 | 1579454 Trump2012
Trump2012's picture

The only think to own is lead; lots of many calibers!   

When is comes down to it, one will choose life over their treasure.


Fri, 08/19/2011 - 19:17 | 1579459 Trump2012
Trump2012's picture

thing that is, the only thing...

Sat, 08/20/2011 - 03:29 | 1580447 KowPie
KowPie's picture

"I think it is hopeless to hoard PM's your profit will vapoize just as you need it for survival. better own a plow or some goats"


"The only think to own is lead; lots of many calibers!  

When is comes down to it, one will choose life over their treasure."


 How about all of the above and then some?

Fri, 08/19/2011 - 18:18 | 1579297 SmoothCoolSmoke
SmoothCoolSmoke's picture

Up $50k since tuesday on TZA and DIA puts (sold puts at close today).  Sushi with the wife and then cigars and port on the porch later.

Hoping for Black Monday, but feel a "suprise" lurking from Be-shankie and/or the EC befre the open.



Fri, 08/19/2011 - 18:30 | 1579329 mynhair
mynhair's picture

Puts on TZA?  WTF?

Fri, 08/19/2011 - 19:06 | 1579422 Stumpy
Stumpy's picture

I read that as DIA puts, and the good ol'd standard TZA.

Fri, 08/19/2011 - 18:21 | 1579304 Bullionaire
Bullionaire's picture

JPM:SILVER now negative for 17 days.


Suck on THAT, Blythe.



Fri, 08/19/2011 - 18:22 | 1579306 djsmps
djsmps's picture

Maria Bartiromo today said that this transitory slow patch is priced in.

Fri, 08/19/2011 - 18:23 | 1579310 Trump2012
Trump2012's picture

Thought's on "C" for next week. Bought $23 September Puts. Pick friday's close. My pick $21.50.

Fri, 08/19/2011 - 19:27 | 1579491 JuicedGamma
JuicedGamma's picture

Maybe they'll do another 1 for 10 split. Bought a bunch at 3 telling myself to sell at 30. Came a lot sooner than I thought and I am long gone.

Fri, 08/19/2011 - 19:44 | 1579556 Trump2012
Trump2012's picture

Ouch! What do you think the financials will do as a whole next week? By the way is that the burger king avatar? I heard the king is dead!

Fri, 08/19/2011 - 18:26 | 1579319 Jovil
Jovil's picture

Living through a currency devaluation and how to cope

I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The company wanted to expand our successful business and so we decided to keep the money in Mexican pesos to be used for further expansion.


One morning, as my wife and I were on a trip driving on the highway, we heard a national message from the President of Mexico in 1976, Luis Echevarria, one of the most corrupt presidents in Mexican history. “It is a lie that we are going to devalue the peso,” he said.

Read more

Fri, 08/19/2011 - 18:27 | 1579323 Sqworl
Sqworl's picture


Fri, 08/19/2011 - 20:46 | 1579720 Hulk
Hulk's picture

Sqworl gravy Bitchez! Maple tree Sqworls the best !!!

Fri, 08/19/2011 - 22:17 | 1579939 Cheesy Bastard
Cheesy Bastard's picture

Oops.  You forgot to change to the Johrny Bravo avatar for that comment!

Fri, 08/19/2011 - 22:56 | 1580041 Hulk
Hulk's picture

Busted! You be paying too much attention...

Fri, 08/19/2011 - 23:11 | 1580085 Cheesy Bastard
Cheesy Bastard's picture


Sat, 08/20/2011 - 11:25 | 1581023 Hulk
Hulk's picture

To $200 ! Off by a factor of 10 !  He was energetic, like trying to hold a squirming weasel...

Fri, 08/19/2011 - 18:28 | 1579325 Sequitur
Sequitur's picture

I wouldn't be able to sleep if I had significant long positions open this weekend. Look at that market close -- selling to suckers.

Fri, 08/19/2011 - 18:34 | 1579334 mynhair
mynhair's picture

Bite me.  Got longs on GPL and GOV.  Picked up SD on the post 3pm dip, to boot.

TMV never hit my bid, oh boohoo.

Fri, 08/19/2011 - 19:10 | 1579433 Stumpy
Stumpy's picture

SD as in Sandrige Energy? I used to have a small position last year. Made an easy 50%.

Fri, 08/19/2011 - 18:37 | 1579350 mfoste1
mfoste1's picture

deeeeeeerrrr derrrrrrr derrrrrrr duhhhhhhhhh duhhhhhhh feeeee fummmmmmmmm

Fri, 08/19/2011 - 18:40 | 1579356 mynhair
mynhair's picture

WTF was the FDIC doing closing a bank on Thursday?  This is FDIC Friday, dammit!

Fri, 08/19/2011 - 19:57 | 1579592 Dapper Dan
Dapper Dan's picture

The two bank closings cost the FDIC (us) $350 million dollars.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $293.2 million. Compared to other alternatives, Sabadell United Bank, National Association's acquisition was the least costly resolution for the FDIC's DIF. Lydian Private Bank is the 66th FDIC-insured institution to fail in the nation this year, and the tenth in Florida. The last FDIC-insured institution closed in the state was Landmark Bank of Florida, Sarasota, on July 22, 2011

I just checked the web site

Bank failures

2001 .............4










2011..............66  so far

Fri, 08/19/2011 - 18:40 | 1579357 putbuyer
putbuyer's picture

Played TZA, VIX and SDS calls last leg down. Did very well. Avoided most of this garlic-eater rally(French, Italian optimism). Now back in "Balls to the wall"- letting it ride. Fuck the bullshit!


Fri, 08/19/2011 - 18:43 | 1579361 mynhair
mynhair's picture

You see the clown above claiming to make money on TZA puts?  Since Tuesday?  LOL

Fri, 08/19/2011 - 18:57 | 1579399 putbuyer
putbuyer's picture

I sort my comments most recent first so your above is my down.  I looked and I think you are right- as in not likely.

My drop in the garlic-eater run-up was a good 20% hit. I'm still down for the year, but near even. SRS was a big mistake for me.

Fri, 08/19/2011 - 19:05 | 1579417 mynhair
mynhair's picture

pbuyer,  was looking at SRS today, too.  Then got distracted by TMV.

SRS owes me 15K.

Fri, 08/19/2011 - 18:50 | 1579380 lindaamick
lindaamick's picture

Jesse provided a link today on his website about a possibility that the Fed will utilize another method of stimulus besides QE.

I am not a finance person and therefore can not connect the dots as to the implications of this proposal.

Any enlightenment on the feasibility of this happening?

Fri, 08/19/2011 - 18:57 | 1579397 JW n FL
JW n FL's picture

Tyler did a write up on repo's.. this smells of knock off to me.

your boy wrote his story a week after Tyler wrote his.. to bad no credit was offered! LOL!! never is!

Fri, 08/19/2011 - 19:19 | 1579470 bid the soldier...
bid the soldiers shoot's picture

Where did the notion come from that the Fed's QE's are like the Russian's Doomsday Machine deterrent in 'Dr. Strangelove?'

That is that they only work when everybody knows about them.

Bernanke told us about the first two. 'Nuff said.

Note to Bernanke: Just don't over heat the QE computer and printer. Put a small portable indoor air conditioner on them. You won't be sorry.

Fri, 08/19/2011 - 18:52 | 1579383 Yen Cross
Yen Cross's picture

  Bring back JUNKS... What gives with all these social networking links?  I'm not a teacher! I'm a trader!

Fri, 08/19/2011 - 19:06 | 1579420 mynhair
mynhair's picture

* junks (1) *

Don't worry, be happy.

Fri, 08/19/2011 - 19:08 | 1579428 Yen Cross
Yen Cross's picture


Fri, 08/19/2011 - 19:37 | 1579534 Cheesy Bastard
Cheesy Bastard's picture

I'm a trader.

It's spelled traitor, if you own gold.

Fri, 08/19/2011 - 19:49 | 1579566 thedrickster
thedrickster's picture

Benedict Arnold wasn't a bad guy.

Fri, 08/19/2011 - 20:21 | 1579670 CompassionateFascist
CompassionateFascist's picture

"Alexander Hamilton got what he deserved, and so will Ben Bernanke" - Rick Perry

Sat, 08/20/2011 - 01:36 | 1580355 thedrickster
thedrickster's picture

As much as I despise Rick Perry, awesome quote.

Fri, 08/19/2011 - 22:46 | 1580020 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, an obvious white al qaeda and enemy of the totalitarian state.

Fri, 08/19/2011 - 18:55 | 1579391 Manthong
Manthong's picture

Must Listen. Great history lecture.

According to Mr. Rickards it's DEPRESSION (BITCHEZ !)

Fri, 08/19/2011 - 19:15 | 1579448 gwar5
gwar5's picture

Rickards always has some good take-aways

Fri, 08/19/2011 - 18:55 | 1579393 SilverRhino
SilverRhino's picture

You deserve what you accept bitchez!

Fri, 08/19/2011 - 18:58 | 1579400 Chingadera
Chingadera's picture

britches bitches.  they'll cost double tomorrow


Fri, 08/19/2011 - 18:58 | 1579401 YesWeKahn
YesWeKahn's picture

Everyone starts to shout "BITCHEZ", are you all the same person?

Fri, 08/19/2011 - 19:08 | 1579427 mynhair
mynhair's picture


FU, bitch!

Fri, 08/19/2011 - 19:09 | 1579432 Yen Cross
Yen Cross's picture

  Did you get Blown UP! This week, M/H?

Fri, 08/19/2011 - 19:15 | 1579441 mynhair
mynhair's picture

Nope.  Only had 3 bids hit.  All asks went, but a day early, as usual.

Fricking table was collapsing under the weight left.

Fri, 08/19/2011 - 19:15 | 1579453 Yen Cross
Yen Cross's picture

  Good on ya! I slapped usd/jpy back and forth early. Staying long all crosses. MoF and BoJ.

Fri, 08/19/2011 - 19:13 | 1579440 gwar5
gwar5's picture

"Bitchezz!",  Bitchez!

Fri, 08/19/2011 - 19:29 | 1579507 thedrickster
thedrickster's picture

I had the same contrarian impulse.

Fri, 08/19/2011 - 22:23 | 1579953 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

No.  They just lack a full lexicon.  Pray for them for they know not what they do.

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