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Chris Martenson: "We Are About To Have Another 2008-Style Crisis"

Tyler Durden's picture


Submitted by Chris Martenson

Get Ready: We’re About To Have Another 2008-Style Crisis

Well, my hat is off to the global central planners for averting the next stage of the unfolding financial crisis for as long as they have. I guess there’s some solace in having had a nice break between the events of 2008/09 and today, which afforded us all the opportunity to attend to our various preparations and enjoy our lives.

Alas, all good things come to an end, and a crisis rooted in ‘too much debt’ with a nice undercurrent of ‘persistently high and rising energy costs’ was never going to be solved by providing cheap liquidity to the largest and most reckless financial institutions. And it has not.

Forestalled is Not Foregone

The same sorts of signals that we had in 2008 are once again traipsing across my market monitors. Not precisely the same, of course, but with enough similarities that they rhyme loudly. Whereas in 2008 we saw breakdowns in the credit spreads of major financial institutions, this time we are seeing the same dynamic in the sovereign debt of the weaker European nation states.

Greece, as expected and predicted here, is a right proper mess and will have to leave the euro monetary system if it is to have any chance at recovery going forward. Yes, all those endless meetings and rumors and final agreements painfully hammered out by eurocrats over the past year are almost certainly going to be tossed, and additional losses are going to be foisted upon the hapless holders of Greek debt. My prediction is that within a year Greece will be back on the drachma, perhaps by the end of this year (2012).

Greek default spectre turns material

The weekend Greek revolt against the austerity measures imposed on its economy in return for eurozone funding has elevated the prospect of a Greek default on its debts or a chaotic exit from the eurozone.


The collapse in support for the mainstream parties that had reluctantly accepted the austerity program and the vehement opposition to the measures by the radical left party that finished the runner up in the weekend’s elections has made it almost impossible for a coalition to be formed that would persevere with the program.


It is likely new elections will have to be held next month but given the degree to which Greeks have protested against the harsh eurozone prescriptions – and the 20 per cent shrinkage in GDP and 20 per cent-plus unemployment that has accompanied them – it is improbable that Greece will continue with the reforms it agreed in return for the next $300 billion tranche of eurozone funding.


If it does walk away from that commitment there will be chaos in Greece and, to a lesser extent, elsewhere. Greece would inevitably default on its debts and could be forced to quit the eurozone.


There really is no choice for Greece but to leave the euro, and the sooner, the better. Even then, there is a lot of hardship coming their way. But in my estimation, that’s better than the imposed austerity that is a guaranteed torture chamber. The institutions that avoided taking losses on their Greek debt on the first pass through, due to their preferred status in the process (the ECB among them), are almost certainly going to eat big losses this time, perhaps a full 100% of them.

Leaving the euro is going to be quite a process, and the ripple effects are going to be large and somewhat unpredictable. I found this description of what will happen within Greece and its banking system to be well on the mark:

The instant before Greece exits it (somehow) introduces a new currency (the New Drachma or ND, say). Assume for simplicity that at the moment of its introduction the exchange rate between the ND and the euro is 1 for 1. This currency then immediately depreciates sharply vis-à-vis the euro (by 40 percent seems a reasonable point estimate). All pre-existing financial instruments and contracts under Greek law are redenominated into ND at the 1 for 1 exchange rate.


What this means is that, as soon as the possibility of a Greek exit becomes known, there will be a bank run in Greece and denial of further funding to any and all entities, private or public, through instruments and contracts under Greek law. Holders of existing euro-denominated contracts under Greek law want to avoid their conversion into ND and the subsequent sharp depreciation of the ND. The Greek banking system would be destroyed even before Greece had left the euro area.

There would remain many contracts and financial instruments involving Greek private and public entities denominated in euro (or other currencies, like the US dollar) that are not under Greek law. […] Widespread defaults seem certain.


Euro area membership is a two-sided commitment. If Greece fails to keep that commitment and exits, the remaining members also and equally fail to keep their commitment. This is not just a morality tale. It has highly practical implications. When Greece can exit, any country can exit.


As soon as Greece has exited, we expect the markets will focus on the country or countries most likely to exit next from the euro area. Any non-captive/financially sophisticated owner of a deposit account in that country (or in those countries) will withdraw his deposits from banks in countries deemed at risk - even a small risk - of exit.


Any non-captive depositor who fears a non-zero risk of the future introduction of a New Escudo, a New Punt, a New Peseta or a New Lira (to name but the most obvious candidates) would withdraw his deposits from the countries involved at the drop of a hat and deposit them in the handful of countries likely to remain in the euro area no matter what - Germany, Luxembourg, the Netherlands, Austria and Finland.


The ‘broad periphery’ and ‘soft core’ countries deemed at any risk of exit could of course start issuing deposits under English or New York law in an attempt to stop a deposit run, but even that might not be sufficient. Who wants to have their deposit tied up in litigation for months or years?


The Greek banking system will be destroyed immediately upon Greece’s exit from the euro, but the banking system there is already all but dead anyway. Best just to sweep the floor clean and start over.  The idea is easy enough to understand; if your bank is about to go under, it is best to get your money out before that happens.

The only mystery to me is why so many people have left their money in the Greek banks this long. I suppose they were waiting for a clearer signal? Well, it would seem that the signal has now been sent and received:

Greek Depositors Withdrew $898 Million From Banks Monday

Greek depositors withdrew €700 million ($898 million) from the country's banks on Monday, fueling fears of a bank run amid the growing political disarray.


With deposits falling, Greek banks become even more dependent on the European Central Bank to meet their funding needs, exposing the central bank to potentially huge losses if Greece leaves the euro area.


Monday's deposit withdrawal far outpaced Greek banks' steady decline in deposits since the start of the country's debt crisis in 2009, as depositors withdraw cash and transfer funds overseas. In the past two years, deposit outflows have generally averaged between €2 billion and €3 billion a month, though in January they topped €5 billion.


The latest data from the Greece's central bank show that total deposits held by domestic residents and companies stood at €165.36 billion in March.


Again, the real mystery to me is who still has 165 billion euros in Greek banks at this stage of the game?  Also a mystery is why Greece has not yet imposed a withdrawal moratorium and capital controls?  It is only a matter of time, perhaps days, before they do.  

Of course, it is the contagion effect that most worries the market, because the same dynamic of utter insolvency leading to the intractable nature of Greece’s dilemma applies to Spain, Portugal, and Italy.

Indeed, the market is already adjusting to this possibility, as evidenced by the spikes in the yields of those country’s bonds:

Contagion Fears Hit Markets

LONDON - Investors battered European stocks, dumped the bonds of Spain and Italy, and bid the euro down against the dollar Monday after the collapse of weekend coalition talks in Greece edged that country closer to an exit from the euro zone.

The sweeping market action dealt a blow to hopes that the damage of a Greek exit, should it occur, could be comfortably contained.


In the market carnage, Greek stocks fell to two-decade lows, and Spanish bond yields leapt to levels not seen since the panic of last November. Shares of a big Spanish lender dropped 8.9% on the Madrid bourse, pulling the benchmark index down 2.7%. The Italian market also fell 2.7%, and the euro slid to $1.2845 late Monday in London, its lowest level in four months.


The worry and the carnage are both running deep. And they should. Everything is now interlinked to such a degree that there is no possible way for a run on Greek banks or continued declines in the value of sovereign debt to be anything other than exceptionally destructive.

Everybody owes everybody, and there’s not enough productive economy to mask the insolvency of the system any longer.

We saw this as Spain’s sovereign yields vaulted, Spanish bank shares plunged, a not-so-happy linkage courtesy of the LTRO funding which enabled (and encouraged) Spanish banks to load up on Spanish debt. A virtuous circle morphed into a vicious spiral, each element weakening the other all the way down.

That the US stock market is only down less than 5% from recent highs is a testament to the power of the liquidity that the Fed and US banking system have directed at keeping things elevated. However, this cannot last, at least not without another big quantitative-easing (QE) injection from the Fed. Without such an infusion, I am calling for another 2008-2009-style market rout of at least -30% but possibly as much as -50%.

QE, stat!

The reason we need another QE injection is that the same dynamic of debt destruction is again stalking the markets. As expected, the Fed has been waiting for a clear signal that it is time for more thin-air money, and again they are going to wait too long to prevent more damage from occurring.

This time I am expecting a coordinated central bank action that will involve most or all of the major central banks of the OECD: Japan, UK, US, and Europe.

One day, we will wake up to find some global message about the need for a coordinated response to a major crisis, and each of the central banks will be issuing some massive new amount of thin-air money. Of course the programs will be called something fancy that will require shortening to an acronym and will involve buying some form of debt (sovereign debt, but maybe also bank debt), and we’ll track this via central-bank balance-sheet expansion.

Perhaps we’ll see this line go up a little steeper, or perhaps the same trajectory will be maintained a little longer:

Regardless, more printing is on the way, because the alternative is the utter collapse of the entire Western banking system. And quite probably a few governments, too.

To me, that is an unthinkable outcome, and one that I have every faith will be avoided at any every cost. It is the main reason that I am quite content to hold onto all of my gold at this juncture. Anybody selling physical gold here is either broke (and needs the money) or is just not paying attention.

To drive the point home, consider this picture posted on Zerohedge taken from a German television production purported taken of the Ministry of Finance in Athens. A picture is worth a thousand words:


By the time the Ministry of Finance is storing records in garbage bags and shopping carts, perhaps, just maybe, one might become a little concerned about loaning money to the Greek government. One hopes.

If You Think Greece is Bad

Greece, of course, is tiny compared to Spain or Italy. The situation in Spain -- which is big enough to matter -- is truly dire, very large, and getting worse.

Spain has been playing fast and loose with the numbers, and that fact has now been revealed to the world. It’s not a pretty picture.

Spain Underplaying Bank Losses Faces Ireland Fate

May 10, 2012

Spain is underestimating potential losses by its banks, ignoring the cost of souring residential mortgages, as it seeks to avoid an international rescue like the one Ireland needed to shore up its financial system.


The government has asked lenders to increase provisions for bad debt by 54 billion euros ($70 billion) to 166 billion euros. That’s enough to cover losses of about 50 percent on loans to property developers and construction firms, according to the Bank of Spain. There wouldn’t be anything left for defaults on more than 1.4 trillion euros of home loans and corporate debt.


Taking those into account, banks would need to increase provisions by as much as five times what the government says, or 270 billion euros, according to estimates by the Centre for European Policy Studies, a Brussels-based research group. Plugging that hole would increase Spain’s public debt by almost 50 percent or force it to seek a bailout, following in the footsteps of Ireland, Greece and Portugal.


“How can you only talk about one type of real estate lending when more and more loans are going bad everywhere in the economy?” said Patrick Lee, a London-based analyst covering Spanish banks for Royal Bank of Canada. “Ireland managed to turn its situation around after recognizing losses much more aggressively and thus needed a bailout. I don’t see how Spain can do it without outside support.


And this is just the losses that Spanish banks face on their real-estate portfolios. They are also now facing losses on all the Spanish sovereign debt that they bought with their LTRO funding as well. Very simply, Spain now needs a massive rescue, and soon.

Meanwhile German citizens are all done with helping their southern neighbors. Merkel has used up all of her political capital on the rescues performed to date, and it is far from clear that any more help is politically doable here. The only way that I can see such help coming is under some terms other than drawing upon the savings of Germany’s citizens. Printing, perhaps, but even that is a dicey political proposition here.

If Spain drops here, then you can just set an egg timer for when Italy will go. And then France. The dominoes will rapidly fall from there.

Why I Am Nervous These Days

In describing JPMorgan’s recent $2 billion (or is it $20 billion…or more?) trading losses and Jamie Dimon’s (the CEO of JPM) awkward explanation of how certain hedging operations went wrong, the author of this next piece asks the obvious question:

Does Jamie Dimon Even Know What Hedging Risk Is?

But wait a minute? If you’re hedging risk then the bets you make will be cancelled against your existing balance sheet. In other words, if your hedges turn out to be worthless then your initial portfolio should have gained, and if your initial portfolio falls, then your hedges will activate, limiting your losses. That is how hedging risk works. If the loss on your hedges is not being cancelled-out by gains in your initial portfolio then by definition you are not hedging risk. You are speculating.


We still don’t know the exact dimensions of JPM’s losses here (my expectation is that more bad news will follow soon enough), but we can be sure that the big banks have not learned from the mistakes of the past and are still engaged in risky practices involving derivatives.

Whatever JPM was up to (and I am still not entirely clear on what that was), it was not classic hedging, which serves to minimize losses, but something far more speculative.

The reason this gives me such cause for concern is that it once again exposes a small portion of the derivative monster that will certainly be awakened when the European situation goes into full meltdown over the Greek, then Spanish, the Portuguese, then Italian situations.

While derivatives are, in theory, a zero-sum game, and therefore could, in theory, be forgiven and forgotten in a pinch, the reality is that they’ve been used to pretend that risk did not exist and therefore losses don’t exist.

The ugly truth here is that we are at the tail end of a most unfortunate credit bubble -- four decades of global excess by the OECD countries -- and there are massive losses to account for. Just as the offsetting counterparties involved in the subprime CDO and CDS mortgage crisis did not zero out because the losses they were allegedly papering over were all too real, the same will prove true of the derivative paper allegedly covering sovereign and corporate debts.

Remember, the biggest holder of derivatives is the company that just demonstrated that it doesn’t really understand the concept of hedging.


Overall derivatives, especially interest-rate-linked derivatives, have increased by over $100 trillion since the crisis began. As JPM just evidenced, and as hinted at by the interminable hand-wringing over allowing Greece’s paltry $78 billion in credit-default swaps to be triggered, real dangers lurk here.

I wish I could analyze the situation better than the rest of the crowd that either screams catastrophe looms or coos that everything is safe, but I cannot. The situation is too opaque, too convoluted, and too complex to tease apart. I simply don’t know what the true nature of the risk really is -- and the truth is, nobody really does. You might as well ask these analysts to tell you the exact size and shape of the first ten waves that will hit Laguna Beach exactly one year from now beginning at 12:05 p.m.

Instead, what I can offer to you is the idea that instead of reducing (let alone eliminating) risk, all that derivatives have done is mask risk. This means that whatever losses are resident in a system with four decades of debt-fueled malinvestment and overconsumption are still there just waiting to be realized.

It is this certainty that the losses remain, the risk is masked, and the bets have only grown larger that makes me very nervous these days as I contemplate the possible implications and repercussions of a Greek exit from the euro.

To Sum Up Part I

Given this environment of massive, rapidly-accelerating, and obfuscated risks, the prudent among us are undoubtedly wondering, How the heck is this going to play out? And how do I prepare for it?

In Part II: What To Do When the Central Banks Blink, I lay out my forecast for how low asset prices will sink before the central banks once again attempt to ride to the rescue with gargantuan liquidity measures.

But this next time won't work as it did in 2008, in my estimation. I see central banks being near the end of their ability to influence developments at this point. More liquidity will affect different asset classes differently, and for the first time raise real (and valid) concerns about the widescale debasement we are witnessing across the world's major fiat currencies.

Putting your capital into those resources best positioned to appreciate most as the result of money printing and hold or increase their purchasing power in such an environment should be a top priority for every concerned investor.

Click here to access Part II (free executive summary; paid enrollment required for full access).


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Wed, 05/16/2012 - 17:23 | 2433111 RacerX
RacerX's picture

I think the Technical term is: "Stack underflow"

Definition of: stack underflow 

An error condition that occurs when an item is called for from the stack, but the stack is empty. Contrast with stack overflow. See stack.

Wed, 05/16/2012 - 17:23 | 2433117 I think I need ...
I think I need to buy a gun's picture

endgame bitchez,,,,,happy farming

Wed, 05/16/2012 - 17:28 | 2433129 markmotive
markmotive's picture

Fucking great.

Wed, 05/16/2012 - 17:50 | 2433213 AldousHuxley
AldousHuxley's picture

greeks are not driving prices down.

It is end of Fed's operation twist + Chinese tighetening monetary policy.

Chinese are the biggest buyers of commodities.

Greeks are irrelevant side show. It is like some bum in the street corner declaring bankruptcy. Meanwhile the rich guy in cushy neighborhood is trying to sell all his 10 mansions at once.


Look at China and Brazil's economy.

Wed, 05/16/2012 - 17:59 | 2433229 markmotive
markmotive's picture

Soon enough we'll see a massive rush of liquidity coming out of China.

Wed, 05/16/2012 - 18:59 | 2433359 AldousHuxley
AldousHuxley's picture

That's why Bernanke will give some excuse on unemployment and announnce QE3 in their next meeting June 19-20.


QE3 will last into November past Obama's election and it should break QE2 highs.


US will pick up global demand, create more jobs, win-win for the American elites. Meanwhile they are hoping that euro falls apart so Old World Order no longer poses challenge against New World Order.

Wed, 05/16/2012 - 19:01 | 2433368 Joe The Plumber
Joe The Plumber's picture


U figured out the plan

Wed, 05/16/2012 - 19:22 | 2433412 boogerbently
boogerbently's picture

Greek default isn't bad.

It's the morons that bought Greek debt (leveraged) for the high %, thinking EU would NEVER let it fail. LOL

EXACTLY what went wrong in '07-08.

10X, 50X, 100X  LEVERAGED irresponsibility. (with our $$$/pensions/401's)

My pension "guarantee", promises $900/mo for the $3700/mo I'm getting now !

(Now, where are THEY going to get THEIR $$$.......don't you think it's.......INVESTED ???)

Wed, 05/16/2012 - 19:45 | 2433470 AldousHuxley
AldousHuxley's picture

largest holders of greek debt are the germans and the french who are the only ones actually controlling ECB and EU.

Basically Germany paid off her WWII debts off and is trying to become a superpower again, but couldn't enslave the greeks, portugese, and spanish to be productive as US did with manufacturing in Mexico and China.


Something with the warm mediterranean weather not making people want to spend 12 hour days inside a manufacturing plant.


rothschilds angry with is Old World Jew vs. New World Jew competition. meanwhile Chinese and Russians are wishing they kill each other.




Wed, 05/16/2012 - 20:04 | 2433513 lasvegaspersona
lasvegaspersona's picture

Like Einstein vs Dylan?

Wed, 05/16/2012 - 20:18 | 2433539 economics9698
economics9698's picture

All you brilliant economists need to know is this shit will hit the fan in 3 to 5 years.  It’s been 3 years and 7 months.  The shit will hit the fan, we do not know exactly when but it will hit the fan.

When it does there will be no more bail outs.  It will suck.  If we are lucky Romney will let the shit fall into a hole and we can rebuild.  If we are really lucky the authorities will not fight the reinstitution of gold and silver as reserves.

There is a good chance we will be five or more countries in ten years. 

And that is all the shit you need to know my fellow economists.  Stock up on food, ammo, guns, rifles, first aid, and the usual shit hit the fan crap.


Wed, 05/16/2012 - 21:06 | 2433684 Almost Solvent
Almost Solvent's picture

The breakup of the union is the most logical thing. The Northeast and Left Coast have no interest in the Deep South or The Plains. 


And vice-versa.

Thu, 05/17/2012 - 03:20 | 2434316 dark_matter
dark_matter's picture

Long Live Cascadia!

Wed, 05/16/2012 - 23:18 | 2434017 Campagnolo
Campagnolo's picture

the shit hit the fan in Detroit already, after the crash of 2008 and GM& Chrysler went into bankruptcy....Detroit is a ghost twon now: Grass is two feet long by now, you can dump any garbage you want on the streets, piles of garbage and concrete-bricks shit, burned and stolen cars everywhere, abandoned yachts, I mean it's terrible, seriously. But the negro is happy, you know, they never knew about booms or crashes, after all they all are on section 8 and coupons barbecuing and drinking Lokos every day.

Thu, 05/17/2012 - 04:35 | 2434377 AldousHuxley
AldousHuxley's picture

shit that hit the fan was so big that it broke the fan.....and that was in the 1980s.



Wed, 05/16/2012 - 19:34 | 2433442 AldousHuxley
AldousHuxley's picture

elites don't even try to hide it anymore.

Let S&P500 settle back down to SMA 200 under 1280 which is 0% gain YTD, then pump out more cash and finish the year with 10% gain for 401k holders.


lifting the market during november is important for 2 reasons:

1) election time

2) set the mood for christmas shopping.

Wed, 05/16/2012 - 20:05 | 2433516 Future Jim
Future Jim's picture

Doesn't that depend on whether they want Obama or Romney? They could make another October surprise like in 2008.

Thu, 05/17/2012 - 04:39 | 2434378 AldousHuxley
AldousHuxley's picture

"they" ?


it is a deal between Obama and  Bernanke. Bernanke wants to keep his job so that he can help his pre-med son pay off $400k in med school debt, he better print on command.


when bernanke prints, obama = romney, as wall st. will profit and look good and get year end bonuses as if they predicted some shit.


but wall st. worker bees will be laid off before election time anyway so they'd voting obama for extended unemployment benefits.

Wed, 05/16/2012 - 19:32 | 2433437 Chump
Chump's picture

The only thing you should really rely on is that you don't know anything.  The shit is hitting the fan.  The events that QEx, TARP, TALF, POMO, LTRO, etc., so on and so forth were supposed to help avoid/mitigate are happening as we speak.  Do you believe the banking system can withstand the losses from Greece exiting the Euro?  This isn't some piker event like AIG, and Greece is a piker compared the behemoths next in line.  That's why this is so key, because I believe the saying goes, "he who panics first panics best," or some such variation.

US can only fill in for global demand if we have a manufactoring sector.  Oops.  And global demand only exists if other countries can continue deficit spending.  Double oops.

But of course I'm cognizant of my own fair warning: I don't really know anything.  But I do believe that our respite is over.  I say this as someone who needs much more time to prepare.

Wed, 05/16/2012 - 19:39 | 2433448 SheepDog-One
SheepDog-One's picture

Right. People think they got it ALL figured out 'QEef for happy-time ObaMao, and shopping'...bunch of BS theyre never going to do what everyone has been trained to believe they will do. Theyll do the opposite.

Wed, 05/16/2012 - 19:57 | 2433500 Chump
Chump's picture

Yeah this whole "election year DOW can't tank" thinking bewilders me also.  2000?  2008?

We'll see I guess.  I hope I'm wrong and we get another year on the backs of some other acronym programs or meetings or PR releases or whatever.

Wed, 05/16/2012 - 21:39 | 2433784 maxcody
maxcody's picture

Bull!  The Greeks are dead.  It is all but happened.  The EU are Chins's trading partners and Greece is a zero.  Zeor - Zero is Zero.  They already died.  If we lost a few milliom dead beats we would be better off also.  I like greek food - it will be cheap.  They destroyed themselves.  It is what would happen to the US if Obama won the elction which he will not. 


Wed, 05/16/2012 - 21:41 | 2433785 maxcody
maxcody's picture

Bull!  The Greeks are dead.  It is all but happened.  The EU are Chins's trading partners and Greece is a zero.  Zeor - Zero is Zero.  They already died.  If we lost a few milliom dead beats we would be better off also.  I like greek food - it will be cheap.  They destroyed themselves.  It is what would happen to the US if Obama won the elction which he will not. 


Wed, 05/16/2012 - 22:14 | 2433889 Marginal Call
Marginal Call's picture

You just had to go and press the button that said "full retard", didn't you?

Wed, 05/16/2012 - 23:23 | 2434027 Treason Season
Treason Season's picture

Always thought it was a little strange Bush 1 never objected to Kohl and Mitterand's Euro project. Tin foil stuff but did someone know then it would implode?

Wed, 05/16/2012 - 19:29 | 2433430 Seer
Seer's picture

"Greeks are irrelevant side show. It is like some bum in the street corner declaring bankruptcy."

I believe that Martenson is saying the same, but that the "bum" has his leg out and will end up tripping all the others rushing to work, sending them careening on to the rail tracks- trains stop and no work...

I've been saying for years that China will really torch things off.  Much of my initial investigation into why was based on my observations of the Canadian economy, and the influence of the Chinese in Canada's wealthiest provinces (B.C.).  The signs are visible if one removes all glasses.  Easier to see is the linkage to/with Australia. Take away: Canada and Australia are going to start lighting up; China, with it's greater ability to stomp dissent, will be able to hold the flames down for a while (but when they break they'll rage to such a degree that you'll be able to see them all the way around the globe!).

Thu, 05/17/2012 - 04:44 | 2434384 AldousHuxley
AldousHuxley's picture

I see you are talking about San Francisco bums...

Wed, 05/16/2012 - 17:28 | 2433133 resurger
resurger's picture

ok guys, i need that fucking red chair for Max Ficher


Wed, 05/16/2012 - 17:47 | 2433200 GoldRulesPaperDrools
GoldRulesPaperDrools's picture

`You will refer to me as "My Lord"`; now bring me my wine, wench!`

Wed, 05/16/2012 - 17:57 | 2433226 optimator
optimator's picture

Remember, "A loaf of bread, a jug of wine, and thou",

Will get you fat, drunk,..........and in a whole lot of trouble!

Wed, 05/16/2012 - 17:51 | 2433209 Wakanda
Wakanda's picture

Got my swiss chard seeds into the dirt today.  Almost time to plant zukes.

Wed, 05/16/2012 - 18:33 | 2433298 Ookspay
Ookspay's picture

Raised beds are in: Tomatoes, cukes, zukes, Cauli, brocc, carrots, cantaloupe, bush beans, Bell peppers, jalapeno's and herbs. My asparagus has been giving me a fistfull every other day since March. Raspberries are coming back nicely as usual. Cracking corn and snow peas as we speak! 

I just stocked my pond with a new Talapia breed, to augment the Large Mouth, Blue Gill and Cat population...

Thinkin' of getting a nat-gas storage tank for my generator, JIC...

Bring it BITCHEZ! We'll be fine.

Wed, 05/16/2012 - 19:27 | 2433423 Umh
Umh's picture

So far; tomatoes, cilantro, basil, onions, carrots, celery, peas, tomatillos, artichokes and parsley root. I'm still taking in the parsnips and garlic from last fall.

Wed, 05/16/2012 - 20:26 | 2433576 Ookspay
Ookspay's picture

Sounds good! Artichokes? Gotta look into that. I like Cilantro for my mango guacomole, but it can take over the garden!


Wed, 05/16/2012 - 19:08 | 2433385 El Oregonian
El Oregonian's picture

Was that zukes or nukes?

Wed, 05/16/2012 - 20:23 | 2433562 Wakanda
Wakanda's picture

Raven and Jackpot hybrid Zucchini from FEDCO Seeds in Waterville, ME.

Stand back!  They will explode with fruit in July.

Wed, 05/16/2012 - 22:07 | 2433869 Ookspay
Ookspay's picture

Yum! Zucchini, sliced thin. grilled with EVOO and fresh dill.

Wed, 05/16/2012 - 22:09 | 2433876 Wakanda
Wakanda's picture


Extra Virgin Olive Oil.  Googled it...


Wed, 05/16/2012 - 22:23 | 2433908 Ookspay
Ookspay's picture

Your welcome, I think we are "soil mates!"  (uugghhh)

Wed, 05/16/2012 - 23:07 | 2433989 AC_Doctor
AC_Doctor's picture

I put SC in a Vitamix blender with collard greens, frozen strawberries and some protein powder.  Holy bat shitter,  my intestines could not be happier.  Good growing to you...

Thu, 05/17/2012 - 00:29 | 2434142 azusgm
azusgm's picture

Already put up 2 packages of green beans and a container of pinto beans. Cooking with the fresh onions, beets, etc. Usually eat the green peas straight from the vine while I'm standing in the garden. New potatoes are sitting in a bucket on the patio. First melon vines are starting to run. The first honeydew is the size of an egg.

Oh how I do love to watch my garden grow.

Wed, 05/16/2012 - 18:01 | 2433230 SilverDoctors
SilverDoctors's picture

Everyone thinks gold and silver are selling off in a repeat of 2008, but as Eric Sprott stated last week, Gold falling hard in the midst of European collapse and contagion, as well as JPM's derivatives crisis is COUNTER INTUITIVE. 

While we'd love to see silver back at $8 and gold sub $700 and rent a U-haul to fill it up, PHYSICAL gold and particularly silver are being removed from the market in size.

Our suppliers for SD Bullion have been raising prices on nearly everything intra-day throughout the week, and we can report first hand that absolutely massive amounts of physical metals are being taken off the market into this price weakness.

Personally, it looks like The Morgue is attempting to extricate itself from its last 13,000 silver shorts as Ted Butler believes, and they are preparing to go long ahead of QE3 which will likely be massive.  After 5 years of using every trick in the book to prevent a deflationary collapse, there is no way The Bernank will stop now.  QE Will continue to INFINITY to prevent The Greater Depression.

Wed, 05/16/2012 - 18:07 | 2433245 Saucy-Jack
Saucy-Jack's picture

I think the paper price of gold and silver will be hammered, but there will be no physical for sale at those prices. We might get $700 gold and $15 silver on the futures exchanges, but nowhere will anyone be able to buy them for anywhere near that price.

Wed, 05/16/2012 - 18:08 | 2433250 fonzannoon
fonzannoon's picture

go on....

Wed, 05/16/2012 - 21:21 | 2433712 MrPoopypants
MrPoopypants's picture

Simply take delivery.

Thu, 05/17/2012 - 01:06 | 2433973 cranky-old-geezer
cranky-old-geezer's picture



Careful there, many believe that's how certain MF Global accounts got tagged for liquidation in the "oops, we don't know where it went" bankruptcy, those standing for delivery.

With flight to the dollar knocking down gold and sliver (and all other commodities), it's gonna become irresistable for some big player (or big players working together) to place huge long futures contracts (against JPM's naked shorts) and stand for delivery, fully intending to bust Comex and send spot prices skyrocketing.

And they'll be big enough players nobody will dare try to Corzinize them.  Who knows, they might even have nuclear arsenals.

Wed, 05/16/2012 - 18:29 | 2433288 ffart
ffart's picture

People running into cash and bonds to escape a currency crisis seems a lot like cattle running into a slaughterhouse to escape the thunderstorm. 

Wed, 05/16/2012 - 19:13 | 2433392 AldousHuxley
AldousHuxley's picture

problem is people think thunderstorms are some act of god and sign that god is angry, so they'd rather face the slaughterhouse than some angry god.


Fear and greed are two powerful emotional (not rational) motivators banksters use to create opportunities for themselves (buying opportunities prior to bernanke's QE3 gift next month)

Thu, 05/17/2012 - 01:13 | 2434205 Likstane
Likstane's picture

Who do you think causes thunderstorms?  

The fear of the LORD is the beginning of knowledge; Fools despise wisdom and instruction.  Prov.1:7  People who run into the slaughterhouse are just getting to the same place a little quicker.  Better to lie down and beg God for mercy. 

Huxley-just another man worshipping drug addict

Wed, 05/16/2012 - 19:24 | 2433415 in4mayshun
in4mayshun's picture

My info supports what "SIlver Docs" is saying. I hear that very wealthy Asians are strategically emptying out gold vaults bank by bank as the gold cartel no longer has adequate physical metal to play musical chairs with. Sooner or later the music stops and someone is left without a chair, er, bullion. The larger banks are forcing the smaller ones to give up their gold. Obviously this can only continue for so long before a TBTF has to cough up the physical and it must buy it on the open market or go bankrupt. From my source, there were many contracts set to execute at $1,610...

Stay tuned, could get interesting.

Wed, 05/16/2012 - 19:28 | 2433422 boogerbently
boogerbently's picture

Prices are being "manipulated" down while govt's load up for the eventual move back to some form of "Gold Standard".

Prices will then be allowed back up, so their worthless paper appears less worthless.

Wed, 05/16/2012 - 19:47 | 2433472 ArgentoFisico
ArgentoFisico's picture

Next Week me and a friend of mine will drive from the north of italy to bayern to collect 2 monsterboxes of maples & phils. We know the seller and he told us he is already selling silver ounces losing money for 25,50 €/oz. He sayd he bought 'em for 26,10 or something like that. Don't know if that's true but anyway I strongly believe we'll not see prices lower than 25 €/oz.... only way to have lower prices is if the spot price stays at 20 $/oz for some month. Perhaps.

Wed, 05/16/2012 - 21:54 | 2433827 beaker
beaker's picture

Maybe I'm missing something, but if JPM was trying to dump their short positions, they would be BUYING, not selling.

Wed, 05/16/2012 - 20:30 | 2433583 jekyll island
jekyll island's picture

Got gold?  

Wed, 05/16/2012 - 20:41 | 2433610 OneEyedJack
OneEyedJack's picture

The Greek banking system will be destroyed


Damn,,   I meant to take the blue pill.

fuckin rabbit hole

Wed, 05/16/2012 - 21:39 | 2433782 Buck Johnson
Buck Johnson's picture

It sure is endgame, And I don't believe for one minute 2 billion dollars is what made Dimond flustered and in a bad way.  There loses are soon to be shown trust me.

Wed, 05/16/2012 - 23:39 | 2434063 in4mayshun
in4mayshun's picture

No doubt that JPM losses are substantially higher than $2 billion. but I think that what grabbed so much media attention was the simple fact that the mighty JPM could be prone to such liabilities.

Wed, 05/16/2012 - 23:21 | 2434023 maxcody
maxcody's picture

If you are reading Angora Fincial you are in a world og hurt.  Angora is a con outfit

who could not find a real tree in a forest.

Wed, 05/16/2012 - 17:43 | 2433187 porrannor
porrannor's picture

"Well, my hat is off to the global central planners for averting the next stage of the unfolding financial crisis for as long as they have..." Have you already forgoten the cost of this so called rescue and who actually benefited from it..? are you kidding me? after all this you are still willing to thank them for saving us? I guess there is no end to the stupidity. They should be tried and put in jail, both the bankers and politicians alike, instead you are thanking them. Go figure...

Wed, 05/16/2012 - 19:05 | 2433378 toady
toady's picture

Yes, it would be nice to see a few necks stretched, but it should be evident that will not happen under the current system.

I hope you've used the last few years wisely. That was about all that could be done. Time to prepare was provided.

And who knows, we might get to some heads on pikes after all!

Wed, 05/16/2012 - 19:39 | 2433449 Chump
Chump's picture

Problem is it will be neighbors beheading neighbors.

Wed, 05/16/2012 - 19:41 | 2433459 Bring the Gold
Bring the Gold's picture

I think this was said in the spirit of Hat's off to Napoleon for almost conquering Europe/Russia. Not an easy task even though you washed the continent in blood. Not like, Hey great job Bernanke you destroyed the Middle Class and saved the banks. More like, "For a fucktard you did an amazing job".

Wed, 05/16/2012 - 18:49 | 2433339 lumen ex lumine
lumen ex lumine's picture

"Remember, the biggest holder of derivatives is the company that just demonstrated that it doesn’t really understand the concept of hedging"


Definitely a candidate for 'quote of the year'.

Wed, 05/16/2012 - 19:09 | 2433383 Joe The Plumber
Joe The Plumber's picture

It is better to try to convince people you were stupid than admit to intentionally violating Dodd Frank with proprietary trading

Wed, 05/16/2012 - 19:42 | 2433457 Seer
Seer's picture

Darn!  I was going to post that!

But... even IF they do understand hedging all the derivatives exposure that they have has surely resulted in breeding a TON of black swans.  Having good claims shouldn't be confused with being able to have good collections.  And then think of how obvious a mess it'll be when everyone sees that even the mighty JPM can get pantsed: everyone will then discover that the reference "a bunch of big dicks" has nothing to do with anatomy...

Wed, 05/16/2012 - 19:24 | 2433413 Stuck on Zero
Stuck on Zero's picture

No stack underflow.  These dudes are allocating virtual memory (money) in the form of Demand Zero Pages.  It will continue until they hit a overflow in the page allocation table.

Wed, 05/16/2012 - 21:02 | 2433676 WmMcK
WmMcK's picture

That's heap bad.

Wed, 05/16/2012 - 21:48 | 2433812 Hulk
Hulk's picture

Interrupt 02h Bitchez !!!

Wed, 05/16/2012 - 20:20 | 2433553 gatorengineer
gatorengineer's picture

I went full FAZtard....


You never go full FAZtard........



Except now..................

Wed, 05/16/2012 - 21:01 | 2433672 WmMcK
WmMcK's picture

LIFO -- pop goes the weasel.

Wed, 05/16/2012 - 21:47 | 2433810 maxcody
maxcody's picture

Why would any economic savy person listen to a hack like Chris?  or even worst Angora Financial another hack outfit?  Garbage in garbage out.  If you are that worried about the market stay in cash or buy Dollar General.


Wed, 05/16/2012 - 23:52 | 2434084 socalbeach
socalbeach's picture

Back at you max.  Why should anybody listen to someone who can't spell (savy), doesn't use proper grammar (worst), doesn't even know the proper name of the company they are criticizing (Angora Financial - try Agora), and whose post has no substance ?  And why would Chris stay in cash if he believes the dollar is going to be devalued by more QE ?

Wed, 05/16/2012 - 17:24 | 2433113 Seasmoke
Seasmoke's picture

"We Are About To Have Another 2008-Style Crisis.....That makes 2008 look like a walk in the park "



Wed, 05/16/2012 - 17:26 | 2433130 FlyoverCountryS...
FlyoverCountrySchmuck's picture

How many American lives will we have to spend to save Europe from itself, THIS TIME? (Part III)

Wed, 05/16/2012 - 18:04 | 2433237 Marginal Call
Marginal Call's picture

We didn't save Europe.  We conquered it.

Wed, 05/16/2012 - 20:12 | 2433507 sunaJ
sunaJ's picture

Since many people at ZH have known for a long time that some sort of end was coming, we have mostly become spectators in the horrifying convulsions of a terminal world economy.  Whether it is initiated to put the final nail in the coffin of the dollar, or it is a product of dollar self-immolation, the other 150 countries of the world will not just stand by as the OECD quivers in heart failure. 

My concern remains what it always has been. As the masking of debt can no longer be sustained , neither can the consequences of debasement.  You will see global revolt against the Euro and the Dollar.  You will most likely see an explosion of bilateral trade agreements, denominated in anything but the dollar. We have prospered and enjoyed cheap energy and products all because of the supremacy of the dollar.  When that is gone, it will be absolutely devastating to economic life in America as we know it, but it will be nothing compared to the psychological devastation of this reversion to a 60 year mean.  That said, the best investment you can make alongside your silver, gold, guns, farm or whatever else you see fit to invest in, is in your loved ones, your neighbors and your friends, who will need your insight and courage as much as you will need theirs.

Wed, 05/16/2012 - 20:23 | 2433563 DosZap
DosZap's picture


One thing we will not have to be AS concerned about is energy...............we HAVE the sources,the technology to get it,we have the RESERVES, and if push comes to dying(the people will see to it, trust me), my money is on we get those out of the ground faster than anyone dares believe we can.

Bottom line, we are all around natural resources better off than 98% of any other country..........WE still have it all.

Food,fuel,crude, nat gas,land that produces,and water.

Wed, 05/16/2012 - 23:22 | 2433714 sunaJ
sunaJ's picture

You may be right.  My concern remains the psychological collapse, not the collapse of the dollar or oil.  We have no idea about the transition, and saying that we have all of those resources in no way implies that they are available for all to consume. Certainly not immediately.  They are not "RESERVES," they are mud pits, sand hills, prairie farms and forests.  We will not know if we will all come together to accomplish the hurculean transition that you propose.  Net energy ROI has plummetted and nat gas is no savior.  Humans are a species that, as we continue our exponential biological reproduction, also believes in infinite resources and an infinite ability to infinitly get them.  It is our infinite right.  The truth is, we are a finite species living on a finite planet burdened with imperfect knowledge, but infinite arrogance will be our downfall, not the lack of natural gas or oil itself.  It will be our failure to get enough of it out of the ground fast enough.  

What you suggest sounds like it would take great cooperation and insight by central planning.  How has that worked out so far?  How much war and death have we seen to get oil out of the ground fast enough today?  How ready will people be to submit to another centrally-planned strategy?  There will be more scarcity, not less, just by virture of our population growth.  If you are correct, you are speaking of a time after we have undergone an incredible transition.  I don't believe that Jesus is coming at the last minute, aliens are bringing us new energy or Death Stars are the answer.  In my opinion, people that say, "Look at all our energy and resources," have no idea how serious the energy (and therefore food) crisis will prove, and each time the words are spoken, it perpetuates the collective ignorance that contributes to death in the world today.  It discourages robust conversation about the true state of this nation and dismisses out of hand the idea of energy scarcity.


Wed, 05/16/2012 - 23:38 | 2434061 FutureShock
FutureShock's picture

Good grief - Look at the can kicking in Europe for Greece. A pure artform - The others will follow for years until Japan, then us. We have 10 years easy. Imagine a new prez and the debt and defict start to go down with solid numbers the market will explode. We will make it. Reserve currency, mighty military, ass kicking the politicians a bit and we will make it.

The dollar is king, other currency sucks and gold is down because of that, nothing else.

There more and more gold ads from new companies everyday, seems to me there is a much physical as you want out there. I love ZH but any pm bashing is a troll and everything else is reinforcement. Many writers are affiliated with pm companies too...really balanced viewpoints (eye roll). Fear sells better than sex

Pm's are common sense but is anything else going on common sense? Are traders not getting killed because what should make sense after all the work and all the expereince results in loss?  Things are fucked, common sense does and dilligence does not produce results anymore.  Sell pm's high buy low and repeat the best you can. If the US is in the same spot when Japan starts to sink then hold on to your pm's otherwise we are far away. Gold backed currency makes not sense there is not enough. A basket of stuff like oil and gold and uranium to back a reserve currency makes more sense than just two metals. Good and smart move for stackers with all we know, but still a dream and a roll of the dice at any vegas table.

Wed, 05/16/2012 - 20:07 | 2433519 toady
toady's picture

You've been playing Risk?

Wed, 05/16/2012 - 22:18 | 2433901 Marginal Call
Marginal Call's picture

Toady, we (wall street) financed the German war machine and turned em' loose.  After they'd all softened each other up for a couple years and they were broken, hungry, and exhausted we moved in and batted clean up. 


We're still there. 

Wed, 05/16/2012 - 18:10 | 2433252 neidermeyer
neidermeyer's picture


Hope you've been storing necessities ... Russia will roll through Europe ... and we have the Nazi party in Greece ... and the TSA here ... did you see the story on how 90 Year old HENRY KISSINGER was given a happy ending after he rolled up to a airline gate in a wheelchair... my father lived through the battle of the bulge because his wounds froze solid and he only bled out 90%... I have 2 young sons and I don't want this to drag them in.


See you in the FEMA Camps Komrade!

Wed, 05/16/2012 - 18:22 | 2433280 Marginal Call
Marginal Call's picture

Kissinger deserves all he gets.  Should have checked cavities too.

Wed, 05/16/2012 - 17:29 | 2433135 navy62802
navy62802's picture

Correct. It's more like "We Are About To Have Another 1929 Style Crisis."

Wed, 05/16/2012 - 17:34 | 2433153 yabyum
yabyum's picture

We have a 1929 crsis now, snap cards and federal benefits are the new soup lines

Wed, 05/16/2012 - 17:43 | 2433186 Meremortal
Meremortal's picture

You are young, obviously.

Wed, 05/16/2012 - 17:45 | 2433188 XitSam
XitSam's picture

Chickens, check.

Solar panels, check.

Wed, 05/16/2012 - 18:18 | 2433270 DCFusor
DCFusor's picture

Add to that:

Electric car, check.

Stored food, check.

Guns, gunsmith tools, ammo, reloading supplies, check.

Like minded prepared friends, check! (maybe more important than some other things?)

Bullion, several types, check.

Many fruitful acres, check.  Buildings, on them, check.

Artesian springs, check.

On site sewage disposal, check.

Medicines and first aid, check.

Booze and the ability to make more, check.

Musical instruments, check.

EMP proof electronics, check.

Machine shop, check.

Raw materials for shop, check.

Probably left a few out, but it's looking good here.  I'd say "bring it" - but that's a nightmare for all too many other people, and I'd rather not have to watch them hurt myself - or shoot them if they get unruly towards me.

So - all you preppers out there - remember to prep extra for some other people who will really appreciate it only after the fact - you'd rather have them working with you than having to fight them, after all.  Wars and looting are only fun in the movies - because you can always just change the channel.

Wed, 05/16/2012 - 19:10 | 2433390 Joe The Plumber
Joe The Plumber's picture

Young bitchez will be available for a pittance if the russian collapse is a guide.

Young beauties for five bucks. Be sure to be one of theirfirst customers before they catch something

Wed, 05/16/2012 - 19:50 | 2433476 Savyindallas
Savyindallas's picture


Wed, 05/16/2012 - 19:48 | 2433477 Savyindallas
Savyindallas's picture


Wed, 05/16/2012 - 19:49 | 2433479 Savyindallas
Savyindallas's picture

you are a sick motherfucker. What you say is true  -but you are a pathetic piece of shit for saying it insuch a way, nonetheless.

Thu, 05/17/2012 - 11:03 | 2435548 Iwanttoknow
Iwanttoknow's picture

It is people like you i worru about during a collapse.

Wed, 05/16/2012 - 19:46 | 2433473 Seer
Seer's picture

Passive solar, no batteries required!

Thu, 05/17/2012 - 09:00 | 2434788 Lester
Lester's picture

Sorry, but any means of power generation requires a mode of storage.  A battery, consisting of several 6v cells  is about the minimum; or did you not want to have access to power after dark?

Solar panels require a charge controller or voltage regulator to deliver a stable flow of usable current.  Current is stored in a battery rated in terms of amp/hour capacity.  Current is drawn by Direct Current "DC" devices, straight  from battery or inline w/regulated supply, or current flows to a DC-to-AC current inverter to run appliances and devices wired for Alternating Current.  In between all this is a Control Panel allowing current flow to be Stopped from reaching battery & Stopped from reaching inverter or DC devices.

Probably most important tool you can have is a decent battery charger to maintain battery charge state and a quality multimeter to verify current flows and monitor charge state.


Wed, 05/16/2012 - 20:20 | 2433554 lasvegaspersona
lasvegaspersona's picture

appendicitis? child birth? sepsis? Rx for chronic conditions?   lets hope the system can at least keep SOME of its shit together

range anxiety (electric car)

doctor friend who thought to have some supplies in his home?


Sean of the Dead (training video)?

Thu, 05/17/2012 - 01:30 | 2434219 Cosimo de Medici
Cosimo de Medici's picture

Medical School?  Check.

Surgical Residency?  Check.

Surgical Private Practice?  Check.

Is it better to be a surgeon, or the friend of a surgeon?

Physician heal thyself is just a metaphor.

Thu, 05/17/2012 - 11:06 | 2435573 Iwanttoknow
Iwanttoknow's picture

Sorry.You still need an OR.Sterile surgical equipment,dressing,pharmaceutical,X -ray.You can do simple procedures.When Phomn phen fell,I believe they ran out of antibiotics.All they did was amputations.

Wed, 05/16/2012 - 22:13 | 2433884 Ookspay
Ookspay's picture

DCFusor, you give me hope.

Wed, 05/16/2012 - 18:37 | 2433305 delacroix
delacroix's picture

12 volt solar panels, are sold out, at several solar suppliers lately.

Wed, 05/16/2012 - 17:51 | 2433208 WatchingIgnorance
WatchingIgnorance's picture

Thank you. I have been saying that for years now. Just because they have SNAP cards does not mean things are better.

Heck. I see them waiting outside my Wal-Mart near my house on the 1st and 3rd waiting for the minute it is on their card.

Debt saturation bitchez!!

Wed, 05/16/2012 - 18:48 | 2433333 Xkwisetly Paneful
Xkwisetly Paneful's picture

For sure.

When define poverty as the bottom 1/6th of a perpetually growing population,

guess what that means? a record high number of recipients is always right around the corner.

1/6th will always be poverty stricken, no matter how obese they are and how many cars and homes they own.


Wed, 05/16/2012 - 19:14 | 2433394 Joe The Plumber
Joe The Plumber's picture

I for one love our token zionist on zero hedge

But i am certain this is xenofrog with a new avatar

Wed, 05/16/2012 - 19:48 | 2433481 Chump
Chump's picture

Yep, a Zionist conspiracy a couple years in the making, just to get on your nerves.  "Token zionist," lmfao, you have missed a lot of hilarity here.

Wed, 05/16/2012 - 21:10 | 2433691 Cathartes Aura
Cathartes Aura's picture

and mr. "one week, 6 days" who might you have been before you took this (s)troll?

Young bitchez will be available for a pittance if the russian collapse is a guide.

Young beauties for five bucks. Be sure to be one of theirfirst customers before they catch something

while I won't hold my breath, I look forward to the day when posts like you made above are hounded off these threads, maybe when the fathers of daughters realise how close things are to chaos, and what a threat your foulness is.

Thu, 05/17/2012 - 00:59 | 2434195 The Tilden Flash
The Tilden Flash's picture


Wed, 05/16/2012 - 20:15 | 2433537 DosZap
DosZap's picture


Do not forget the EBT cards, and NEW Mercedes that comes with it...............along with a Michelle styled wardrobe.

This just aint RIGHT folks.

Wed, 05/16/2012 - 21:59 | 2433840 maxcody
maxcody's picture

Where have you been?  we are there already.  88 million reduction in total work force in 3 plus years of Obama and not one "net" Job created.

Wed, 05/16/2012 - 21:58 | 2433841 maxcody
maxcody's picture

Where have you been?  we are there already.  88 million reduction in total work force in 3 plus years of Obama and not one "net" Job created.

Wed, 05/16/2012 - 17:27 | 2433128 max2205
max2205's picture

If Ben does another QE he will be in deep do do.

It will fail because it will be an act of desperation and Fed Panic.

Long bonds!!

Wed, 05/16/2012 - 23:05 | 2433982 Calmyourself
Calmyourself's picture

Ben chooses death by deflation ok, you made your bet now fund it..

Wed, 05/16/2012 - 17:30 | 2433131 Rainman
Rainman's picture

Why, these bankster boyz ain't nuthin but a bunch of bookies.

Wed, 05/16/2012 - 18:42 | 2433316 Matt
Matt's picture

Except they also place their own bets with the other bookies on top of taking client bets, and they try to apply the Martingale system to their bets, and if they lose they either get to call a mulligan in the case of Robot Trader losses, or they get a bailout in the case of human-trader losses.

Wed, 05/16/2012 - 18:59 | 2433360 BlankfeinDiamond
BlankfeinDiamond's picture

I think he's got it Mortimer.

Wed, 05/16/2012 - 17:28 | 2433132 sunnydays
sunnydays's picture

Excellent, Thank you!

Wed, 05/16/2012 - 17:28 | 2433137 Griffin
Wed, 05/16/2012 - 17:29 | 2433141 Hook Line and S...
Hook Line and Sphincter's picture

uhh, crisis for whom?

nasty little word that 'crisis'... implies 'accidental'.

Wed, 05/16/2012 - 18:59 | 2433366 Zero Govt
Zero Govt's picture

Yes ...and have you noticed the crisis is never met with who is responsible for it ...usually politicians deal out retribution but here they always focus on the fixing

anyone bumped for the last crisis in 2008? 

Frank-Dodd and all the Committees produced mountains of paperwork but nobody held accountable whatsoever ...park 2 minutes overtime and your car is towed away with a $250 fine

'democracy' is beyond a sick joke

Wed, 05/16/2012 - 17:31 | 2433145 The Alarmist
The Alarmist's picture

Another ... you mean we stopped having the 2008 crisis?

Wed, 05/16/2012 - 19:56 | 2433495 Seer
Seer's picture

Yeah, I'm with you.  2008 is a much friendlier-looking number than 2012, 2012 has that Mayan taint on it...

Wed, 05/16/2012 - 21:13 | 2433695 Simon Endean
Simon Endean's picture

Regarding Mayan taint - don't knock it until you've tried it!

Wed, 05/16/2012 - 17:32 | 2433146 yabyum
yabyum's picture

Thee amount of theft since 2008 has become more brazen. The amount of derivatives that can go to hell is even bigger, disclosure: long small farms and chickens.

Wed, 05/16/2012 - 17:33 | 2433150 Xkwisetly Paneful
Xkwisetly Paneful's picture

What will the retail investor sell to meet PM margin calls?

Hmmmm one can only wonder?  they can't sell equities they don't own.

No more government money no more rally, better hope no flock of sellers appear to trigger those margin calls.  Or

simple english better hope those you despise the most keep floating paper because if these broke as shit entities(called countries in many cases) have to sell assets-guess what tops the list?

The not only no win trade but the potential for catastrophic loss-that my kind of action being the total moronic imbecile and all.

Wed, 05/16/2012 - 17:45 | 2433194 Poor Grogman
Poor Grogman's picture

The retail investor just loses their funds.

They don't "sell" stuff to meet margin calls.

Are you retarded or just plain stupid?

Wed, 05/16/2012 - 18:37 | 2433293 Xkwisetly Paneful
Xkwisetly Paneful's picture

Obviously both. The weird thing is a total moronic imbecile like me gets it while the self proclaimed economic geniuses don't.

I apologize in advance for interrupting your daily affirmation  to the point of the fanatical posting as if retail investors don't use leverage and don't sell other assets to meet margin calls before sending in another check.



Wed, 05/16/2012 - 18:46 | 2433324 Poor Grogman
Poor Grogman's picture

When markets move as fast as they do at present.

You better deliver that check by courier or your account will be gone.

Or maybe it's all gone already?

Wed, 05/16/2012 - 18:54 | 2433344 Xkwisetly Paneful
Xkwisetly Paneful's picture

Gone? Forced sales?

But I just read that the retail investor doesn't sell to meet margin calls.

and when they are out of stock to sell, since the outflows from the retail guy have been at record levels for months on end now-I wonder what they would sell next?

So incredibly weird!

Wed, 05/16/2012 - 19:05 | 2433376 Poor Grogman
Poor Grogman's picture

Paper my purple chap does not equal wealth

Wed, 05/16/2012 - 19:16 | 2433401 El Oregonian
El Oregonian's picture

Paper doesn't equal wealth? quick, someone needs to tell the Bernank...

Wed, 05/16/2012 - 19:20 | 2433407 Joe The Plumber
Joe The Plumber's picture

Paper cash rules all in a deflation

Wed, 05/16/2012 - 19:02 | 2433370 worbsid
worbsid's picture

Do they still have limit up/down?  I have been prepping and not into commodities any more. Only really good trade I ever made was that I was watching the ticker and Sadat was killed.  I immediately bought two gold contracts (all I could afford) and in ten minutes it was limit up. It stayed limit up for a couple days and I got out ... ta da.  I was an early HFT with an Apple ][  :-)  Facts used to be that a couple days of limit up/down will ruin the bank account of the short/long (wrong way) invester/speculator because they owed the total trade not just the margin money.     

Wed, 05/16/2012 - 17:31 | 2433151 Tao 4 the Show
Tao 4 the Show's picture

Nice summary of ZH posts over the last few days.

Wed, 05/16/2012 - 17:32 | 2433155 Out9922
Out9922's picture

Waiting for the shiny stuff to go down some more before Uncle Ben prints Trillions out at break-neck speed

Wed, 05/16/2012 - 17:34 | 2433159 Bonesetter Brown
Bonesetter Brown's picture

So what Chris is saying is it would be easier for all involved if Germany left the Euro.

Wed, 05/16/2012 - 17:34 | 2433161 carbonmutant
carbonmutant's picture

Iceland should set a good example...

Wed, 05/16/2012 - 17:35 | 2433164 Ineverslice
Ineverslice's picture

Well, that's that! Go long Ag, Au, banks and FB. Chris Martenson is a great thinker, but every time he puts out a headline like this, it turns out to be an inflection point. Contrary indicator in my the distant future his prediction will prevail.

Wed, 05/16/2012 - 19:29 | 2433432 razorthin
razorthin's picture

Well if it is an "inflection point", he willl have been 100% correct about one thing...a massive QE3.  In which case, how could he also be wrong about metals?

Wed, 05/16/2012 - 17:41 | 2433171 carbonmutant
carbonmutant's picture

Late night infomercials with starving Greek children and 800 numbers...

Wed, 05/16/2012 - 18:14 | 2433257 XitSam
XitSam's picture

For about $700 you can buy a big screen TV. In New York City for just $700 a day, you can feed an investment banker like Jamie nourishing meals.  For $700 you can buy a good, but not great, quality bicycle. In London, for $700 a day, you can rent a trader like Bruno a chaffeured limousine with full bar.  For $700 you can get those pre-cancerous moles removed. Or you can buy a politician like Mario, an operation to remove the last annoying bit of his conscience.  Since 2008, Christian Bankers Fund has helped many bankers and their employees with the luxuries they need to survive. Today, so many bankers around the world still need your help. And through Christian Bankers Fund you can reach out to one of them, by contributing the last dollars in your bank account. It takes so little for you to become a special friend to a banker that has already rehypothecated your pension. Won't you please help? If you don't call now, who will?

Wed, 05/16/2012 - 19:07 | 2433380 my puppy for prez
my puppy for prez's picture


Thu, 05/17/2012 - 00:57 | 2434190 hidingfromhelis
hidingfromhelis's picture

Sorry, I gave at the office...and the grocery store, the gas station, and pretty much everywhere else.

Wed, 05/16/2012 - 18:29 | 2433287 Kayman
Kayman's picture

Late night infomercials with starving ... Central Bankers... and 800 numbers...

Hey, a guy can't lose all hope.

Fri, 05/18/2012 - 00:08 | 2435693 carbonmutant
carbonmutant's picture

1-800-YUR NEXT

Wed, 05/16/2012 - 17:40 | 2433174 Olympia
Olympia's picture

From the Wall Street Crash of 1929 to the Global Financial Crisis of 2007


It all started with the big crisis of 1929. The American economy reached a deadlock because of its social "pathogenesis"; a deadlock that led it to economic crisis in a different - faster- pace than the rest of the industrial forces of that time. Important decisions had to be made - mostly social - and the Whites didn't like that, especially the Whites' rulers, the Anglo-Saxons. The USA society had to either be homogenized and "forget" about racism against black people or find itself in a permanent deadlock that would threaten it with social uprising. If they didn't equate the black working people with their white colleagues so that there wouldn’t be an issue with the salaries that threatened the national currency, they couldn't avoid reactions and all that goes with it.


The problem which began as social but was turning into economic was simple. As long as the economy functioned adequately and the Blacks worked and asserted what they deserved for their work, the white employers had to "fund" the white working force with extra money because of their skin color. To avoid complaints from a white worker who received the same salary with his black colleague, the employers had no choice but to give them more money. The demands of the Blacks were used as an excuse by the Whites to demand more and everything ended up in the same pocket, since they were under the same employ. The problem that arose from this "strange" tactic was that the increased takings of the "superior" White employers were seeking outlet in investments and that threatened the capital. Having higher salaries, they bought more houses; they bought stocks and so on.


Authored by Panagiotis Traianou

Wed, 05/16/2012 - 18:35 | 2433297 Kayman
Kayman's picture

And no "whiteys" were hurt during the Great Depression ?  Give your tiny little head a shake.

Wed, 05/16/2012 - 19:04 | 2433371 Olympia
Olympia's picture

If you will read the whole article here you will understand more:



Thu, 05/17/2012 - 00:53 | 2434181 prains
prains's picture

wiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiing nut

Wed, 05/16/2012 - 17:41 | 2433179 Poor Grogman
Poor Grogman's picture

Central banking

Combining all banking failures into one big one since 1913

Wed, 05/16/2012 - 17:41 | 2433181 zerotohero
zerotohero's picture

The rest of the year will turtle by - 2013 will be bad - 2014 to 2020 will be a SHIT STORM.

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