This page has been archived and commenting is disabled.
Ben Pulls The Punch Bowl - Market Unhappy
The slightly delayed reaction to Bernanke's semi-annual report to Congress is now rather impressive as clearly the market is saying 'QE3-off' for now, in line with our expectation from earlier when commenting on the GDP number we said that "As for the reason why the market is less than delighted with this "beat" is that with EUR Brent at record highs, courtesy of everyone else but primarily the ECB doing the equivalent of QE 3 in 2011's biggest deception play, it firmly take the Fed's punchbowl away at least for 3 months. More at 10 am when Bernanke testifies." 10 came and went, and the heroin addict known as the stock market was less than delighted that the only drug promised by Ben is the ZIRP methadone which does absolutely nothing for incremental liquidity. The question then is - without more QEesing, where will the next trillion in liquidity come from?
Treasury yields are popping higher (4-5bps), the USD is strengthening (especially against carry currencies), equities are selling off led by financials, and precious metals are losing steam rapidly.
Precious metals sliding quickly - especially high beta Silver...
Treasuries selling off rapidly...
and the USD catches a bid...
Charts: Bloomberg
- 10182 reads
- Printer-friendly version
- Send to friend
- advertisements -





To paraphrase Dire Straits: "I want my Q E 3"
money for nothing
but the chicks aren't free
Watch whay they do, not what they say.
This should be good for a 3000 point drop!!! And then Kaboom, war with Iran to save the day!!!
Oh shit, gotta sell my gold!
Just kidding. ;-)
By the time I dredge it back up from the bottom of the lake, it might be time to buy again...
Bernake Lends Against the Stock Purchases!
The Money is Rolled over into new Purchases of yet more stock!
The .25% that is paid on money barrowed?? that was raised from JUNK!! Collateral! to begin with? means NOTHING!!
Bernake Does NOT Need QE-3 outright where everyone can see it!
He has been printing every day of every week for YEARS! to push the market this much higher!
But becuase YOU FUCKING PROPOGANDA LOVING TOOLS DONT HAVE A WHITE PAPER ON HOW TO DO IT??? YOU ARE FUCKING BLIND??
It is days like today that I believe you fucking stupid fucks deserve what is happening to you.
Now down arrow for your ego becuase of your ignroance!
Ron Paul is up! Go get him Ron!
He ripped BB with silver!!!!!!!
"money is crime" and the chicks.....
look at them yo-yos...
He is saving QE3 for IRAN War.....
And when that happens one morning, the last thing on anyones mind will be stock indexes or bond yields....the complete transfer of wealth will have been completed overnite while everyone goes 'HUH'??
Bullcrap.
The ECB (via the Fed) is providing the current round of spiked punch for public consumption so Ben can lay off the PRINT key for a while and regain some credibility among the terminally insane.
We now return you to your regularly scheduled programming already in progress.
The old Good-Cop vs. Bad-Cop play
Let's see, what witty remark best exemplifies the market at this precise moment...
"GERONIMO!"
'Public' consumption? You mean a handful of bankers?
Yup!
Then they are supposed to piss down......oops.....trickle down the benefits. Golden shower any one?
NAH not today, no thanks.
Seeing how the market reacts to Ben's speaches is the best demonstration there is that the market is now all about centralized planning rather than matching risks to rewards.
The market reacts to the buying and selling of SPY by algorithms and nothing else.
Bernanke remembers last year and the oil price run up in Q1 2011, and what that did to GDP of 0.4. He knows this quarter's identical run up is very dangerous for the same reason/impact and he dares not pour money in.
Behold a man out of bullets.
Hope he save one of them. But, with our luck he'd miss.
how stupid does one have to be to pay attention to what they say.... this fellow "Mr. Market", is about as savvy as a 3 yr old.
3 yr old with A.D.D.
The spigot is full on. What do they want another computer to help print faster?
Pay no attention to the man behind the (ticker tape) curtain.
Jesus, this is such a shell game! While we wait for QE to reveal itself from door "A", we look down to see we're knee deep in cash from door an open door "B". Plus, this shell game only takes place in the dark. Place your bets!
The Fed buys Treasuries every week. They can pound the other paper markets around and feign surprise at no one calling QE by name. But is the same QE old thing that has been going on for 10 years now. QE predates 2008 and it has only accelerated since 2008. Trust the math.
It doesn't work that way. Just buying Treasuries (as it has done for 50+ years) is not the same as expansion of the Fed balance sheet. In other words, it sells Treasuries, too, unless it's in a period of QE, which right now it is not.
The only thing going on right now is a re-investing of interest paid on mortgage securities it owns into more mortgage securities. This re-investment isn't in the hundreds of billions amount. If you hold 1 trillion of mortgage securities (many/most of which aren't making payments) then even at 5% mortgage rate this would only be $50 billion/year rolled back into more MBS. Since many are in default, it's less.
*Silver Takedown....in process.
Fuck you's PPT
I hope it keeps coming down, so I can buy some more. Ultimately it will probably blow the top off, but in the meantime, let it drop so we can buy it on sale.
It never ceases to amaze me how people will recommend buying silver and gold and then in nearly the same breath cry foul when the price plummets. If it's the fault of the TPTB then they must not be that evil because I love getting my silver for fewer pieces of paper.
<-- BUY
<-- SELL
The real trick is to buy low and sell high.
It goes for anything. What is the currency-du-jour again?
Oh, yeah, the dollar. For now.
Im not 'crying foul' at all, who cares about the 5 minute PM charts? Anyone flash trading gold and silver for a profit in dollars is a dumbass anyway and doesnt get the point at all.
AND they crashed Turd Furgeson's web site
Interesting. SLW started tanking a couple of minutes before the Comex did...
He is still pushing QE in mortgage markets to protect their investment in Fannie Mae.
http://confoundedinterest.wordpress.com/2012/02/29/fannie-mae-loses-2-4-...
yeah, the /es is only up .5. what a selloff
Give it some time....the meth head markets are still high and havent yet gone into severe withdrawal symptoms from removal of their free drug IV's... yet.
Let's not forget that it's the FED and their FX EUR swaps who is also "printing" electronic 1 & 0s .... QE by any other name....
My parrot just took a shit! Thats QE too!
LOL
OH, but ZIRP is QE! Right?
people should realize that if qe3 were announced today, gold would be at 2000 within a month. ZIRP IS NOT QE PEOPLE!!!!!
soon we will be at war with eurasia...wait, we have always been at war with eurasia.............
yet with all this "disappointment" the /ES has yet to go negative. I guess they're gonna try to make it 10 perfect weeks?
Silver is flat, some take-down. By the time Bernanke finishes we will be at 37.50
Market not happy? No 'QE'? Ready 1 2 3 whaaaaaaaaaaaaaaa!! Come on this market doesnt want GOOD NEWS, anymore than a wino wants a bottle of grape juice! Give me FREE MONEY and GET IN MAH BELLY!
No need for QE3, we have LTRO. And we will get AT LEAST another LTRO in 2012. Then, around the time Romney takes the oath (you know it´s gonna happen...) The Bernank will serve QE3 punch to everybody. By then the trippledigit S&P 500 isn´t in any way impossible making the time ripe for some more free money.
I wouldnt bet on any of that with a bag of free money I found in a ditch.
What's that you say Bernank? Your CTRL+P key doesn't work anymore?? I could have told you that dumbass!
I wonder what else they can do now too keep the ponzi scheme going?
first time in a long time that PMs went down during Benspeak.
i believe this to be transitory.
Why do they need QE3 when so many retail stocks are trading at record highs and the SPY is up over 100% off the lows?
Youll see why soon...what happens when a meth head is told packets of sugar are just as good and he chokes the shit out of you.
Don't listen what they say, look what they do :
http://research.stlouisfed.org/fredgraph.png?g=5mY
What are you people talking about? Look at the central banks balance sheets. QE never ended. It changed names. The real story is March 20th.
"March Madness!", comin' atcha!
The market has gone berserk, T-notes and stocks now sell off at the same time now?
Dow 13k was nice while it lasted.
Being totaly free from this clownshow watching thru binoculars is great fun! Wow what a show! HEY look at that monkey is humpin that Bernank clowns leg now HA HA HA!!
Crystal meth head market stirs a bit, hasnt fully realized its free IV of free drugs has been cut off...this will get nasty soon when full realization sinks in.
Last Spring Brent crude (April) was $128/barrel, QE2 was winding down, the idea was more easing would have crude retesting $147 and starting the double-dip that easing was intended to prevent.
Keep in mind it is moral hazard and ZIRP that pushes crude prices not increases in bank reserves (QE). Even without the reserve increases there is ongoing moral hazard particularly in China which is where the current crude demand is emerging.
Crude prices and $4 gas pull the plug on the US economy. Crude costs don't help the rest of the world's economies, either.
The finger of doom should point to Zhou Xiaochuan who decided long ago to 'let a thousand real estate developers bloom' and to never allow one of these to fail. US market support comes from overseas.
Add QE in Japan, UK, EU and credit expansion in Australia, Canada, China to come (lotsa credit in China) there is plenty of room for Bernanke to step back and reset.
Yea well...whats actually going to happen is mass false flag events all across the US one of these mornings. The transfer of wealth will be complete, and everyone will be on their own in 3rd world america.
Bernake looked paniced when Ron Paul argued inflation was 9%, so was Barney Frank...
I very much want to believe Bernanke is playing shill at the auction, prodding the other guy into chasing the bid until the reserve plus is met, then walking away. I want to believe Bernanke suckered Draghi into getting really stupid and printing faster than a teenage boy...well, you know. I want to believe.
I also want to believe the meek shall inherit the Earth. They won't, and if they did, the PTB would institute a 120% estate tax.
Nine percent drop in the S&P from yesterday's close, at any point between now and the first Tuesday of November, and Ben opens the spigots.
No worries, the punch bowl will be back. The sorbet camoflauge on the turd was getting thin. It is being recovered and will be back in time for the european spring! Party on dudes.
Or, not. The ONLY reason for a pump IS the dump...market rule #1 in fact.
Dont get too complacent in this illusion 'markets only rise from here on out no matter what'...thats for suckers only.
In order to get Obama in for a second term - they need to completely fabricate, lie, manipulate and fuckin pervert all the numbers and stuff to make him look good.
I think Gold/Silver will be somewhat range bound - short term of course - until he gets in for his second term in the next several months.
Im not sure how Obama gets in if Gold is at $2k + because the numbers would look really bad across the board to make Gold that high (which we all know is true, but that is beside the point).
Thoughts?
Seems like the high flying tech stocks are being back from intergalactic orbit.
Take a look at CRM. That bull shit CEO swimming w/ dolphins, has now cancelled the CRM campus in SF, and has been found to be counting stock option tax benefits as cash in its cash flow statement. Guess what that will do to the EBITDA.
Just one of many BS tech stocks.
Grampa doesn't need that 401(k) money anyway. Savings wiped out by inflation....his house down 70%.....now if Ben crashes the market my Grampa can die in peace...nothing there to be estate taxed.....
pretty funny the market is the tp on bens heel as he takes to the stage - perfect timing
yep!
bingo!
tyvm! i'll be here till they pull the plug!
now, about bombing iran tomorrow?
So, given that I agree with one of zerohedge's premises about central bank news and action being about the only thing other than HFT manipulation that majorly moves the highly correlated markets these days, I'll admit to taking a 10% starter position in a leveraged short ETF a nickel off the 52-week low on this news today. I was getting ready to start carefully easing back into a net short position ex PMs anyway. This just seemed like a good excuse to take one small step for an investor and, well, that's about it I suppose. I know, paper begetting or begotten paper, yuk. I'm scum.
Scum for a day anyway. Turned the leveraged paper back into fiat paper and and then into some cast resin transformers made out of paper.
qe3 is off.
http://www.jinrongbaike.com/
http://www.cnhedge.com/