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China National Development And Reform Commission Joins The Party, Says QE3 Likelihood Appears High

Tyler Durden's picture




 

Just in case there was any concern which way China is leaning ahead of today's meeting, here is the missing clue:

  • China's NDRC official says likelihood of US QE3 appears highs
  • China's NDRC official says US QE3 will push up commodity prices and will intensify hot money flows
  • China's NDRC official says QE3 will threaten Chinese price stability

Of course, China is quite adept at saying one thing and meaning another. And with inflation there continuing to surge, and no chance of a loose monetary policy any time soon, China will be very delighted to see the Fed to another round of easing. After all by the time, exported inflation hits China it will be at least 3-6 months down the line, by which point China should have its inflation problem under control. So with Goldman and China both egging Bernanke on, we doubt there is much surprise left in today's 2:15pm announcement.

 

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Tue, 08/09/2011 - 10:11 | 1542287 Sudden Debt
Sudden Debt's picture

WAR!!!

To be honest, I don't see the problem. China's inflation is only at 6.7%, Bernanke would be drewling for figures like that...

 

Tue, 08/09/2011 - 10:13 | 1542316 fuu
fuu's picture

Isn't it great when a plan comes together.

Tue, 08/09/2011 - 10:15 | 1542322 66Sexy
66Sexy's picture

QE? None of this shit works though.

Tue, 08/09/2011 - 10:19 | 1542344 Sudden Debt
Sudden Debt's picture

who knows.... maybe the third time will be the charm?

and even when it won't work, which nobody expects anyway, WE'LL ALWAYS HAVE QE4 TO LOOK AT!!

WHERE'S MY FREE MONEY BITCH?! PAY MY BILLS!

 

Tue, 08/09/2011 - 10:23 | 1542358 Motley Fool
Motley Fool's picture

And hell if QE4 doesn't work, QE5 will be the charm. :)

Tue, 08/09/2011 - 10:45 | 1542438 darkhorse007
darkhorse007's picture

And when QE5 doesn't complete it's intended fix , they will combine QE6 and QE7 and rent helicopters to drop dollars from the sky.

Tue, 08/09/2011 - 10:40 | 1542416 Iam_Silverman
Iam_Silverman's picture

"QE? None of this shit works though."

Might not work for you (or anyone else on Main Street), but those record bankster bonuses sure do rely on some form of QE.

Tue, 08/09/2011 - 11:18 | 1542600 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

of course it works! free money!

Tue, 08/09/2011 - 10:18 | 1542342 Sudden Debt
Sudden Debt's picture

There was a plan?!

Tue, 08/09/2011 - 10:08 | 1542289 US Uncut
US Uncut's picture

Well I am pissed. Lost $700 yesterday. Got out completely. Done with the markets I don't get. And now we have a 200 point rebound? it's fucked. 

Tue, 08/09/2011 - 10:16 | 1542313 Sudden Debt
Sudden Debt's picture

Markets are down a record 11 days in a row man. A little pauze is very normal here.

 

But Germany just announced that the EFSF emergency fund of 440 billion will stay unchanged and WILL NOT INCREASE!!!

THIS MEANS: NO MORE BONDS BUYING FROM ITALY AND SPAIN!!!

SHIT HIT FAN!! NOW FEEL HOW THE "BROWN" RAIN WILL START TO TRICKLE DOWN!!

 

Tue, 08/09/2011 - 10:14 | 1542318 Robot Traders Mom
Robot Traders Mom's picture

If you are 'investing' anything other than play money, you are playing fiscal Russian Roulette. Buy physical metals, store them, and don't worry about them until there is a great reset.

The stock market is for suckers.

Tue, 08/09/2011 - 10:17 | 1542341 US Uncut
US Uncut's picture

It is money that the IRS would have taken or I put i in pre-tax into a 403(b) since I don't have enough deductions. Either way, they got the money. The only non market option is just a savings retirement that gets what .001%?!   Have silver.

Tue, 08/09/2011 - 10:22 | 1542350 WonderDawg
WonderDawg's picture

In this kind of environment, it's about keeping what you have. I didn't coin this phrase, but I'll use it: Right now, it's not about return ON your capital, it's about return OF your capital.

Tue, 08/09/2011 - 10:29 | 1542373 US Uncut
US Uncut's picture

I agree now. I had that approach and then I got to thinking I was missing something so moved some back in late last year. My bad. So my new philosophy is just save, keep it from the IRS and hope inflation doesn't make the money more useless in the future since it's pretty hard to get it to grow. Seems to me that only day traders can make any money at this. the idea of holding nice stock in a nice, honest growing company long term is an old-fashioned idea these days. It's not the days of my grandfather who was a broker. 

Tue, 08/09/2011 - 10:38 | 1542404 g speed
g speed's picture

don't feel bad--you're up a bit the last 10 days

Tue, 08/09/2011 - 10:41 | 1542419 Robot Traders Mom
Robot Traders Mom's picture

I understand if you have money "tied" up. It is too much work for me to liquidate my 401k, and pay the IRS a penalty for early withdrawl.

That being said, i am 99.9% in junior miners. I figure this money will be meaningless anyways, and it is the most bang for my buck if they explode. If not, that is cool too. I have physical.

Good luck.

Tue, 08/09/2011 - 10:43 | 1542432 Iam_Silverman
Iam_Silverman's picture

" The only non market option is just a savings retirement that gets what .001%?!"

So, you'd rather piss away your money instead of it remaining essentially flat?

How about a trip to Vegas?  Odds might be better.

Tue, 08/09/2011 - 23:09 | 1545095 Alpha Monkey
Alpha Monkey's picture

"So you'd rather you piss away your money instead of letting it be eaten by inflation?"

Fixed it. 

Maybe a trip to vegas would be better.  When you play poker you at least get to look at your opponents, and the computers can't dictate your cards (as long as you don't play video poker, otherwise just stay home and continue depleting your e-trade acount).  Vegas it is!

 

Tue, 08/09/2011 - 10:08 | 1542290 the not so migh...
the not so mighty maximiza's picture

Downgrades comith with QEIII

Tue, 08/09/2011 - 10:31 | 1542384 Bob
Bob's picture

Still waiting on those promised CORPORATE downgrades by S&P.  If I didn't know better, I might suspect that this is where the corporate war lords bite off the government hand that has fed them so well.   

Tue, 08/09/2011 - 10:08 | 1542291 wombats
wombats's picture

Print baby print...and watch it all spiral right down the drain into the abyss.

Tue, 08/09/2011 - 10:09 | 1542292 slaughterer
slaughterer's picture

To think of China during the Nixon years... and compare with now.  I am starting to feel my age.  

Tue, 08/09/2011 - 10:26 | 1542362 Sudden Debt
Sudden Debt's picture

Like my Grandfather always used to say when we where kids: AS LONG AS A ERECTION LASTS LONG ENOUGH TO PUT IT IN THE HOLE, YOU'LL ALWAYS HAVE A REASON FOR WORKING.

I never really knew what he meanth by that, but later on I learned that he wasn't talking about downpaying grandma's gambling addiction but that he was talking about ..."s"...."e"...."x"....

 

 

Tue, 08/09/2011 - 10:36 | 1542395 slaughterer
slaughterer's picture

...when you are old:

1.) Woman does a head stand

2.)  Man dangles it in.

Tue, 08/09/2011 - 10:56 | 1542495 Sudden Debt
Sudden Debt's picture

:)

I think these guys are talking about the procedure before the guy can dangle it in:

http://uk.answers.yahoo.com/question/index?qid=20090412110230AAYUA5Y

Tue, 08/09/2011 - 11:18 | 1542598 slaughterer
slaughterer's picture

Always wondered what the solution to opening the bag was.  

Tue, 08/09/2011 - 10:25 | 1542363 falak pema
falak pema's picture

Think of the USa under Reagan and today and it'll make you feel older! Stick to Nixon; at least there was Watergate then to feel better about in today's USA. 

Sorry, slim consolation I know.

Tue, 08/09/2011 - 10:09 | 1542295 slaughterer
slaughterer's picture

Have to go over to TF Metals Report to find out why silver is sucking so bad.  

Tue, 08/09/2011 - 10:12 | 1542307 wombats
wombats's picture

sucking?  Seems more like a buying opportunity.  At least one of the PMs is on SALE!

Tue, 08/09/2011 - 10:10 | 1542299 Number 156
Number 156's picture

Its like two guys who've jumped out of an airplane fighting over the only parachute on the way down.

Tue, 08/09/2011 - 10:12 | 1542308 unky
unky's picture

Yes, like in that James Bond movie with the strong guy with the iron tooth ;- )

Tue, 08/09/2011 - 11:36 | 1542683 unky
unky's picture

hehe yes, i exaclty meant that one.

As in the years 1960-1990 always the soviets were the bad ones they could actually come up with a new James Bond who needs to find out about some mysterious things that happened during the financial crisis.

Tue, 08/09/2011 - 10:11 | 1542304 goldfish1
goldfish1's picture

Riots force shop closures all over London

3.06pm: Adrian Gatton, a freelance TV producer and journalist, has emailed a few stories from south London that seem to have gone unreported today. In Norbury, two dozen shops were looted or damaged along London: jewellers, a petrol station, cash converter shops, takeaways, tool shops, tile shops, a bike shop and a pizza takeaway shop. In West Croydon, kids hijacked cars and drove them at police, and shops were attacked. In Purley Way there was repeated and massive looting of big stores in a retail park. Walworth Road was also quite badly hit.

Tue, 08/09/2011 - 10:13 | 1542317 Caviar Emptor
Caviar Emptor's picture

Worse than 1981, 1985 riots. This is heavy.

But they did announe this morning that this would not affect the 2012 Olympics

Tue, 08/09/2011 - 10:22 | 1542354 goldfish1
goldfish1's picture

...since they plan on having 16,000 police in force tonight, I'd think the rioters stay at home for a few nights and they when everyone's back on holiday...bam.

Tue, 08/09/2011 - 10:45 | 1542437 the not so migh...
the not so mighty maximiza's picture

think of the overtime!!!

Tue, 08/09/2011 - 11:05 | 1542532 Iam_Silverman
Iam_Silverman's picture

"Worse than 1981, 1985 riots."

But, are you basing this on inflation adjusted* numbers?

 

* subject to revision.....

Tue, 08/09/2011 - 10:15 | 1542320 goldfish1
goldfish1's picture

Cameron had to come back from from vacay in Tuscany. And Parliament was called back from their holiday too...well that's just bloody wrong. These forkin commoners.

Tue, 08/09/2011 - 10:16 | 1542332 goldfish1
goldfish1's picture

 

""" Theresa May, the home secretary, is speaking to people in Clapham Junction. She called the level of looting and violence "appalling". Police will be arresting people now because people need to know their actions have consequences, she says."""

lol

Tue, 08/09/2011 - 10:17 | 1542338 66Sexy
66Sexy's picture

There is certainly a media blackout.. even internet connections are effected i.e. slower. A coverup; TS is hitting the fan.

Tue, 08/09/2011 - 10:20 | 1542346 US Uncut
US Uncut's picture

Wait until our black flash mobs start ratcheting it up.....

Tue, 08/09/2011 - 10:22 | 1542353 LFMayor
LFMayor's picture

It's not nice to tease.

Tue, 08/09/2011 - 11:09 | 1542547 Iam_Silverman
Iam_Silverman's picture

"Wait until our black flash mobs start ratcheting it up.."

Thank goodness we have essentially been disarmed here in the U.S.  Ownership of firearms could only exacerbate the situation.

Oh, wait.  Did I get that wrong?  I've got some really interesting hand loads I need to try out.  Ballistic gelatin being so expensive and all that.

Tue, 08/09/2011 - 10:11 | 1542305 DormRoom
DormRoom's picture

Buy up mining companies, because the Chinese will go on a buying binge in Sept/October to diversify out of Treasuries, into hard assets.

 

They'll buy up everything in Africa, and South America.

Tue, 08/09/2011 - 10:13 | 1542314 JJSF
JJSF's picture

For a qe3 announcement there needs to be much more pain in the markets.  This is nothing. Remember Cramer begging for the fed the discount window? Today's china inflation numbers?  It's not ready yet. Jackson Hole me thinks.

Tue, 08/09/2011 - 10:26 | 1542369 WonderDawg
WonderDawg's picture

I'm no economist, but I read it as a tell of exactly how panicked TPTB are. If other's read it the same way I do, announcing QEIII will have a very short term impact, after which all confidence is lost and the markets tank LLD for days in a row.

But I could be wrong. In which case, you can call me an economist.

Tue, 08/09/2011 - 10:37 | 1542402 SheepDog-One
SheepDog-One's picture

WAY to early to wheel out more monetizing, this isnt really even a drop, its still a bubble everywhere and the 100 P/E wonders werent even nicked. 

I casually talked to 5 people so far today and asked them about the markets, they all said 'Oh thats ok it always goes back up anyway even if it did drop a little bit'....calm as Hindu cows, theres no fear and panic anywhere. In the USAA+ at least.

Tue, 08/09/2011 - 10:13 | 1542315 walküre
walküre's picture

The real killer trade was oil futures at $76 last night. What a bargain!

Of course by the time trading opens here, the party is over.

Forget gold for a minute, please Tyler. Start talking about oil, the implications of a currency debasement and the looming shortage of cheap oil.

Tue, 08/09/2011 - 23:18 | 1545108 Alpha Monkey
Alpha Monkey's picture

So, I've read that gold is traded in conjuction with USD for oil.  I'm wondering if the recent rise in gold isn't meant to offset the price of oil in dollar terms.

Tue, 08/09/2011 - 10:15 | 1542323 machineh
machineh's picture

Careful about what you wish for.

If QE3 expectations are disappointed, you know what comes next: gold taken to the woodshed. :-O

Tue, 08/09/2011 - 10:18 | 1542343 Quintus
Quintus's picture

Maybe.  Or maybe we just go back to yesterdays action where the bottom falls out of stocks again (If anything is factoring in more QE, it's the stock market) and liquidity flows into Bonds and Gold.

Who knows?

Tue, 08/09/2011 - 10:21 | 1542349 SheepDog-One
SheepDog-One's picture

Thats OK, even if gold was taken down by $300 from here I wouldnt care, that would still be $1,100 bucks over where I started buying it when the printing press operations started.

Long term buy and hold, VERY long term we still have WW3 to get thru before the gold comes into play.

Tue, 08/09/2011 - 10:25 | 1542367 walküre
walküre's picture

Expectations of QE3 were frontrunning gold.

 

Tue, 08/09/2011 - 10:15 | 1542325 Id fight Gandhi
Id fight Gandhi's picture

Gut feeling is they're not going to do it today. I think it will be announced in the next couple weeks.

Crazy ups and downs today, seems people trying to front run the qe3 announcement.

It will probably be an easier sell if they get another 500+ drop and be able to go a cool trillion.

Tue, 08/09/2011 - 10:24 | 1542360 SheepDog-One
SheepDog-One's picture

Print another trillion and throw it down the FED black hole...overnite dollar -5%, gold up $150....hey go for it!

Tue, 08/09/2011 - 10:15 | 1542326 rfullem
rfullem's picture

as i siad, buy China consumer shares and US exporters

Tue, 08/09/2011 - 10:16 | 1542329 Caviar Emptor
Caviar Emptor's picture

What China means: 

"Bernank: Start your presses. You better keep up your end of the bargain and keep your sheep buyin our junk - Oh but we will officially complain about inflation to keep our sheep on hopium, you understand :-) " 

Tue, 08/09/2011 - 10:16 | 1542333 Robot Traders Mom
Robot Traders Mom's picture

Is there anyone that thinks we aren't going to get an sort of easing language/QE3 today? I think the Fed is far too sadistic to come in after a couple bad days.

I have a feeling they will wait until Americans are on their knees begging for it, somewhere around 8,000 on the Dow...But who knows, nothing surprises me at this point...

Tue, 08/09/2011 - 10:27 | 1542368 SheepDog-One
SheepDog-One's picture

Yea EXACTLY! This is NOT a 'panic drop' so far at all! Avg Joe out here has no idea the markets dropped at all, all is well to them theyre completely unaware, there is NO fear and panic at all yet, and the Gubment checks are flowing. 

BTW heres your avg American when asked 'What is the DOW average'? Reply- 'About 5 feet?' 

?Walmart Shopper thinks Dow Jones average is 5 FEET?‏ - YouTube

Tue, 08/09/2011 - 10:38 | 1542410 Bob
Bob's picture

Maybe you're right about the LCD Average Joe, if he doesn't even watch the corporate media "news."  But he's so disengaged that what he knows means nothing . . . he isn't aware of the market action, but he doesn't oppose QE, either. 

It's "investors" whose opinions matter on QE. 

Tue, 08/09/2011 - 10:45 | 1542441 SheepDog-One
SheepDog-One's picture

So its all really about fooling the only slighty less clueless 'investor', that being R2D2 and C3PO?

Tue, 08/09/2011 - 10:57 | 1542455 Bob
Bob's picture

Picture all the 401k "investors" thrilled as shit over the past two years--QE-fed MOMO is the greatest thing since sliced bread.

Of course, they'll never realize those paper gains, but by then the "real" investors will have liquidated near the top and moved on. 

Booyaah for the "investor" class!  It's like stealing candy from a baby. 

Tue, 08/09/2011 - 10:38 | 1542406 baby_BLYTHE
baby_BLYTHE's picture

just like Iran, I expect the language to print something akin to "All options are on the table"

Remember "hint" of printing is a tool Benocide could use

 

the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so

 

Tue, 08/09/2011 - 11:06 | 1542535 InconvenientCou...
InconvenientCounterParty's picture

the bar for words is a lot higher with gold trading above $1750

Coming in low and hot would be very risky today for the fed. IMO, coming in hawkish on monetary policy would accomplish more in the 3-6 month time frame.

My money is on "deflation is coming back" and "we need to wait and see."

If they do something knee-jerk, gold could be $2000 by the end of the month.

 

 

Tue, 08/09/2011 - 10:38 | 1542407 Variance Doc
Variance Doc's picture

I think that they may use some easing language at most.  I don't think they will hint at Q3 or QE2.1 (with probability 70%).  There is plenty of liquidity out there, but not much borrowing.  Looking at the spread on T's and TIPS (trying to look through private Fed eyes), the target of ~2% inflation is there.

The fed is all out of the typical pre-packaged Keynesian ideas.  They will not do what is right: the ending of the life support to the banks and the raping of taxpayers (generations into the future).

 

Tue, 08/09/2011 - 10:19 | 1542335 falak pema
falak pema's picture

China agrees ot Qe-3 as it knows it can beat the US in the currency race to the bottom.

Nobody can match China's ability to manipulate its currency rate in their command and control economy. The whole world knows the Yuan is under-rated by 20% say. Who can make China change the peg? Nobody!  The US tries exporting inflation by Qe means. The Chinese say we don't care as long as you buy more from us! So they don't want their export EU/US market to go dry and US corporates to go belly up in case of mega recession through world asset deflation! 

Its a better of two bad choices for them. Charybdis and Scylla in front and China at helm as the new Ulysses...Chinese long term hegemony wants to buy time with a devalued USD that will be toast later on; now that S&P has pulled the rug under US financial hegemony. The days of the USD reserve are now counted and China can play the waiting game while US/EU/Japan burn...financially as partners in this ponzi. 

Its the best they can do to serve their long term interests; not rock too much the FED play and the short term US can kicking that's going further down the debt ridden road.

 

Tue, 08/09/2011 - 10:31 | 1542383 goldfish1
goldfish1's picture

Mutually assured desruction, I fear.

Tue, 08/09/2011 - 10:16 | 1542336 Catullus
Catullus's picture

Floating the Yuan is the legit threat that would keep the Fed from printing more. It depends on who is really in control of China right now.

Tue, 08/09/2011 - 10:17 | 1542337 TradingJoe
TradingJoe's picture

"This time it's Different" :)))! Nothing will happen today folks, JH it is! Enjoy the pop, it's selling into it right now!

Tue, 08/09/2011 - 10:17 | 1542340 rfullem
rfullem's picture

by the way, oil FV is about $45/bbl - everything else is leverage and the "genius" commodity bugs

Tue, 08/09/2011 - 10:22 | 1542352 ZeroPower
ZeroPower's picture

$45/bbl for a non-renewable crucial energy source for today's economy? Id pay FV*10.

Tue, 08/09/2011 - 10:19 | 1542345 Pretorian
Pretorian's picture

Insane name -China National Development And Reform Commission.

Tue, 08/09/2011 - 10:35 | 1542390 snowball777
snowball777's picture

- Pornographer's Chastity League

- Distillers Temperance Association

- Advertisers Truth Commission

Tue, 08/09/2011 - 10:20 | 1542347 digalert
digalert's picture

Gold plated keyboard with diamond keys reported to have been smuggled into FED graft headquarters. Curious monogram BB with rubies has the local homeless asking what is the meaning of this?

Tue, 08/09/2011 - 10:22 | 1542351 gunsmoke011
gunsmoke011's picture

The question is - will it matter? QE III would have to be an order of magnitude larger than QE II (Since It obviously Didn't work) one has to wonder whether the market will see it as a sign of despiration -- Personally - I Would.

Tue, 08/09/2011 - 10:22 | 1542355 US Uncut
US Uncut's picture

But isn't the damage done to local municipal bonds? Can their losses be reversed with QEIII? If not, then again, money flowing that isn't helping the common man who will experience more layoffs, more furloughs, more stagnate pay.....

Tue, 08/09/2011 - 10:25 | 1542366 Whatta
Whatta's picture

wtf happens it there in fact is no positive indication of a QE operation today?

I am guessing the market is a bit of deadcat bouncing today, but also buying "speculatively" ahead of a Bernank Put?

No Bernank Put...the market shits its bed? 500 downward points?

Tue, 08/09/2011 - 10:50 | 1542462 InconvenientCou...
InconvenientCounterParty's picture

on the DJIA or S&P?

yea, you had to think about it.

Tue, 08/09/2011 - 10:51 | 1542469 Id fight Gandhi
Id fight Gandhi's picture

If it's the standard, planned speech from two weeks ago before the shtf then it's gonna be bad.

No qe, everything gets dumped, even gold.

But a huge selloff could allow them to do an even bigger package and sell it.

The thing that got me thinking was why the fuck is timmah staying on? The rats usually flee the ships... Something is up.

Tue, 08/09/2011 - 10:27 | 1542371 walküre
walküre's picture

VIX coming down hard.

Are we at an interim bottom here?

Tue, 08/09/2011 - 10:45 | 1542440 fishface
fishface's picture

thats just the Hopium effects

Tue, 08/09/2011 - 11:33 | 1542672 JW n FL
JW n FL's picture

after all of the numbers.. after all of the facts.. it is still the wiggers fault? really?

dont you have a home at huffington post?

go back and be with your people instead of trying to drag down the IQ levels here with your ignorant drivel.

http://www.opensecrets.org/ Wake! Up!! it is a WHOLE! LOT BIGGER THAN THE HEAD WIGGER IN CHARGE!!

Tue, 08/09/2011 - 13:19 | 1543041 fishface
fishface's picture

What numbers are you talking about...your english is terrible...where did you go to school?

talking about IQ ...hahaha

so back to topic you think we hit a bottom?

How long will that last 2 days one week or until the money of QE3 runs out?

Tue, 08/09/2011 - 10:29 | 1542376 yipcarl
yipcarl's picture

I wish someone would explain the rules to me.  Are there rules or do they make them up as they go along?  Can the Fed do somethign or not?  Do they not need the debt ceiling raised before they do anything or not?  This game is not only rigged the rules are skewed if there are any at all.  It's a fucking sham. 

Tue, 08/09/2011 - 10:43 | 1542429 US Uncut
US Uncut's picture

Me, too. :(   The only rules that make any sense are ALL the alleged conspiracy theories. 

Tue, 08/09/2011 - 10:48 | 1542456 fishface
fishface's picture

The owners of the FED make the rules,

but hey won't tell ...company secret

Tue, 08/09/2011 - 10:29 | 1542377 adr
adr's picture

CNBC Just said that the market panic is over. Also said that insider buying is at the highest levels since March of '09 so it might be time to tip toe back in.

WOW THIS MARKET ROUT AND GLOBAL RECESSION LASTED ONE WEEK!!! Wow go central planning it can change the entire world with one press of the print button!!!

Before I went to bed I noticed the weird surge in Taiwan and then the extreme flash crash up in futures. I knew today would be a day where every central government would be buying stocks through shadow funds. Insanity can not be stopped.

Buffalo Wild up 7%!!! Hans up, Lulu up, Chipolte heading above $300 a share again. Travelzoo is up 5%. Priceline still above $500.

Sorry but this stock market plunge was anything but. Most of the overinflated BS stocks with P/Es over 50 only dropped to levels last seen at the end of May. The bubble is still fully inflated, the pump just skipped a beat for a second. The announcement of QE3 will give the zombies all they need to drive the DOW back up to 13,000 in just a few days.

Yes if you owned the wrong stocks over the past week and sold them yesterday you got hammered, however look at the real loss in value of each stock. Overall most of them are still trading double what they were last October. Is that really a market correction? Apple didn't even come near the low price for the year set at the end of June during the epic "Market in Crisis" week. We are at a very strange point where every bit of data outside the stock market signals impending Armageddon but the symbol of wealth will not be taken down.

I hope I am wrong but it seems like for now, PONZI ON!!!!

Tue, 08/09/2011 - 10:32 | 1542386 SheepDog-One
SheepDog-One's picture

Yea I wouldnt count on it so much, all the 'market centrics' out there think that equity markets are the only thing in the world, dont forget about things like world war looming dead ahead.

Tue, 08/09/2011 - 10:35 | 1542391 US Uncut
US Uncut's picture

well, I figured sell the rest that was in thinking we could go a whole lot further down. I didn't factor in that they would never let it go below what it did before starting the pumping. I am stunned. I was hoping to beat the serious low never thinking that yesterday WAS the "new" low?!!!!

Tue, 08/09/2011 - 10:35 | 1542392 US Uncut
US Uncut's picture

well, I figured sell the rest that was in thinking we could go a whole lot further down. I didn't factor in that they would never let it go below what it did before starting the pumping. I am stunned. I was hoping to beat the serious low never thinking that yesterday WAS the "new" low?!!!!

Tue, 08/09/2011 - 10:52 | 1542475 Id fight Gandhi
Id fight Gandhi's picture

Lol insider buying?

Yeah I'm sure the momo stock leaders are buying hand over fist. Lol.

Tue, 08/09/2011 - 10:29 | 1542378 Die Weiße Rose
Die Weiße Rose's picture

So what the fuck does that mean ? Does that include the great Depression ?

"No matter what some agency may say, America has always been and always will be a triple-A country,"

It had taken Obama three days to make a statement on Standard & Poor's decision to strip the United States of its top credit rating.But Obama convinced no one. Even while the president was speaking, the Dow fell below 11,000 for the first time in nine months. This is certainly a problem for Obama, but more than that, it is a problem for America.

http://www.spiegel.de/international/world/0,1518,779179,00.html

Tue, 08/09/2011 - 10:55 | 1542489 fishface
fishface's picture

"No matter what some agency may say, America has always been and always will be a triple-A country,"

 

ignorant form of arrogance

 

Tue, 08/09/2011 - 10:38 | 1542381 adr
adr's picture

I think we do have to worry about massive riots and looting in the US but not until the first welfare check that doesn't go out.

When that happens what will go on in every US city will make London look like a five year old's birthday party.

Tue, 08/09/2011 - 10:34 | 1542388 WineSorbet
WineSorbet's picture

QE3D,  "this time it's personal"

Tue, 08/09/2011 - 10:59 | 1542505 Whatta
Whatta's picture

whoa, QE in 3-D...that'd be totally awesome.

You could see the newly printed dollars flying right out the window.

Where do you buy the glasses, gonna get me some.

Tue, 08/09/2011 - 10:40 | 1542417 Kina
Kina's picture

ALL are thinking it is guaranteed that BB is going to print non-stop from hereon.

Global markets now depend on Bernanke's printing press.

 

 

Tue, 08/09/2011 - 10:42 | 1542425 SheepDog-One
SheepDog-One's picture

We havent seen the impetus for QE yet, a few hundred points off the DOW is nothing.

Tue, 08/09/2011 - 10:44 | 1542434 US Uncut
US Uncut's picture

Then why is the market up so much?! I would never have thought it would be up 233 points after yesterday. Up, maybe, but never that much. 

Tue, 08/09/2011 - 10:48 | 1542447 SheepDog-One
SheepDog-One's picture

Up 'so much'? What 200 DOW points .18%? Gee yea what a rally...probably be gone by 2 PM.

Tue, 08/09/2011 - 11:00 | 1542485 US Uncut
US Uncut's picture

Maybe, but I am still surprised. 

PS> just to see what you see... I see it is up 2.02%.... where are you getting your figure from? Not challenging but wanted to see what you are looking at. thx

Tue, 08/09/2011 - 11:04 | 1542527 fishface
fishface's picture

It's sooo predictable...

there is nothing else he knows to do 

 


Tue, 08/09/2011 - 10:40 | 1542418 goldfish1
goldfish1's picture

Party on bitchez...london burns.

Tue, 08/09/2011 - 10:47 | 1542448 Sizzurp
Sizzurp's picture

We are clearly staring into the abyss.  I don't think Bernanke will test its depth. He will take the alternative and print print print, then hope for a miracle.

Tue, 08/09/2011 - 10:48 | 1542453 toady
toady's picture

Gotta agree with the NDRC.

Its almost as if Q3 was leaked to US traders..

On the other hand, if the fed comes out of the hole with no Q3:

LOOK OUT BELOW!

Tue, 08/09/2011 - 11:24 | 1542631 Iam_Silverman
Iam_Silverman's picture

"Its almost as if Q3 was leaked to US traders.."

In order to ramp the market and squeeze those who were planning on another down day to cover their shorts?

Tue, 08/09/2011 - 10:57 | 1542500 US Uncut
US Uncut's picture

I am getting tired of leaks. Leaks that only benefit the leakee.

Tue, 08/09/2011 - 11:20 | 1542611 Sizzurp
Sizzurp's picture

Bernanke knows the fed game will be over if he doesn't print.  Every bank will fail, the US will default, states will go under, civil unrest ect.  He doesn't want that, hell I don't think I even want that.  Nope, his only choice is to print like crazy.  No mystery here.  

Tue, 08/09/2011 - 11:25 | 1542641 JW n FL
JW n FL's picture

Here comes the FED!

http://www.youtube.com/watch?v=Sn2oBFdWvtc

No Worries! The Hole is Safe!!

http://www.youtube.com/watch?v=JnX-D4kkPOQ

The FED will keep the Hole going!

Gold.. Down from $1,700!

Silver Down from $40!

Stock Market (Free FED Money Market Hole) UP!!!

The Money Fires are the BEST!!

Besides.. they only needed the Market to drop 25% so they could implement Quantitative Easing Part 3 which is really like Part 9.. but we are not counting anything under the $100 Billion Dollar Safe Mark. If the amount is under 100 Billion Dollars “We the Sheepish Consumers” don’t notice it or pay attention is what has been multi market tested to success.

So, lets get those Printing Presses Up and Running so the “Free Market” can pumped by the FED to make the Wall Street AAA Rated Corps (OOPS! AAA is NO! Longer a Pre-Requisite for 0.25% Loans) can get richer off of the Back Stop that is “We the Sheepeople”.

Tue, 08/09/2011 - 11:29 | 1542653 yipcarl
yipcarl's picture

DOES ANYONE ACTUALLY KNOW WHAT THE FED CAN AND CANNOT DO?  DO WE LIVE IN A FREE COUNTRY IN THE INFORMATION AGE????

 

HOW THE FUCK IS IT WE CAN'T FIND OUT WHAT THE FED IS ABLE TO DO MONETARILY AND WHAT THEY CAN'T DO.  GD THIS IS LIKE TRYING TO FIND A LIGHTSWITCH IN THE DARK.

 

WHAT CAN THEY DO????

 

LISTENING TO STEVE LIESMAN, I MIGHT AS WELL ASK MY WIFE THAN LISTEN TO THAT FAT BOUGHT PAID FOR ASSHOLE.

Tue, 08/09/2011 - 11:49 | 1542688 Stares straight...
Stares straight ahead's picture

Is there any chance that all this QE talk is empty jawboning?  If I were the fed, I might want to ride this free bounce a little more.

 Edit:

 I am sure that  if it comes down to it, Bernanke will do it eventually.  May be a moot question.

Tue, 08/09/2011 - 17:39 | 1544124 Stares straight...
Stares straight ahead's picture

It wasn't moot after all -just jawbonin

Nice talkin to ya!

You too!

Tue, 08/09/2011 - 11:38 | 1542693 scratch_and_sniff
scratch_and_sniff's picture

How many ES points does $500bln get these days? I hope he goes for it, lets face it, you can never be too prepared for what happens when the fat lady sings, another few months of "diversification" cant hurt.

Tue, 08/09/2011 - 11:54 | 1542757 Sizzurp
Sizzurp's picture

I wonder if the news will be sold at this point....hmmm

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chinawholesaler's picture

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