• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

David Bianco Is Back, Realizes That The Market Is Not The Economy

Tyler Durden's picture


After his ignominious departure from Bank of America in September of 2011, many were wondering if everyone's favorite permabull was lost to the world forever (speaking of, where is Jim Caron these days?). Rejoice, for we come bearing great news: last night Deutsche Bank's latest addition, who in conjunction with Joe LaVorgna and Binki Chadha, has formed the terrifying "Trinity of of Perma Bull" issued his first report. And dare we say it, Bianco appears to be almost.... bearish? "We expect a 5-10% dip this summer..." Unpossible: what have you done to the Bianco and his tender 18,000 Hz overtones we all love so dearly. Oh wait, there is a second half to the sentence: "...but a dip that most likely should be bought." Ah, that's more like it. Of course, one has to give it to Bloomberg: sometimes they can be cruel: "At UBS, Bianco was head of U.S. equity strategy. His forecast in 2008 that the S&P 500 would rally to 1,700 was off by almost 800 points"

We'll give Joe one thing though: after a career on Wall Street, he has finally figured out that the "S&P 500 EPS is not US GDP"

Report in its hilarious entirety:


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Thu, 05/03/2012 - 08:18 | 2393320 The Swedish Chef
The Swedish Chef's picture

Considering the absolute certainty that most ZH readers (and writers) seem to have about QE3, I don´t understand what there´s not to be bullish about. 


You just can´t come out one day and expect QE any second and the next day laugh at the bulls. QE will inflate equities and the bulls will be proven right.

Thu, 05/03/2012 - 08:20 | 2393322 Corn1945
Corn1945's picture

Being bullish because of money printing and being bullish over an improving economy are two very different things. In fact, the first one isn't really something to be bullish about!

Thu, 05/03/2012 - 08:31 | 2393336 Burr's 2nd Shot
Burr's 2nd Shot's picture

Ooooh, curing cancer by adding more cancer.  I think you may be on to something here, this is definitely bullish.

I think the permabull thesis is this:

If I am right, I get to live high on the hog.  If I am wrong, well, given how bad shit really is, it won't really matter anyways.


This is econotainment, not investing.

Thu, 05/03/2012 - 08:50 | 2393384 kridkrid
kridkrid's picture

Not either/or... it's likely both.  I'm guessing that everything works backwards.  What is the ground I want to claim, then work backwards to locate any sort of data that you feel can support your position... tease and torture the logic, but craft it like you know what you are talking about.  Provide ample cover so "nobody could have seen X coming" can be worked into your next report.  Rinse and repeat.

Thu, 05/03/2012 - 08:33 | 2393343 wonderatitall
wonderatitall's picture



Thu, 05/03/2012 - 08:39 | 2393353 Quinvarius
Quinvarius's picture

Actually, what is funny is people who think QE ever stopped.  Rates at zero and Fed Treasury purchases are all that is needed to get to hyper inflation.  And BTW, that is QE.  It started long before 2008.

Thu, 05/03/2012 - 09:55 | 2393555 WatchingIgnorance
WatchingIgnorance's picture

Thank you.

And here's to hoping that log jam of money at the banks don't make it to the masses. Been watching that velocity of money very closely . . .

Thu, 05/03/2012 - 10:09 | 2393597 CPL
CPL's picture

How is printing money from thin air "bullish".


That's called debt.  Not business. 


But please feel free to invest heavily.  I'll be waiting to buy bits of your life for flecks of gold on an ounce.  I would use pennies and dollars...but they aren't worth anything and I feel you are worth more than the promise of a paper backed IOU.


Thu, 05/03/2012 - 08:26 | 2393332 Hondo
Hondo's picture

How anybody can employ that nit is beyond me.......

Thu, 05/03/2012 - 08:34 | 2393344 LongSoupLine
LongSoupLine's picture

Douch Bank...

no more need be said. 

Thu, 05/03/2012 - 08:35 | 2393348 WALLST8MY8BALL
WALLST8MY8BALL's picture

Twisted from South Park "Bigger Longer and Uncut"

"What would David Bianco Do?"

What would David Bianco do
If he was here right now,
He'd make a plan
And he'd follow through,
That's what David Bianco 'd do.

When David Bianco was at B of A
Talking about  gold,
He said it’s not for balanced accounts
While wearing a blind fold.

When David Bianco was in the alps,
Fighting Market bears,
He used his magical fire breath,
And saved the $EU pair!

So what would David Bianco do
If he were here today,
I'm sure he'd kick an ass or two,
That's what David Bianco’d do Hey.

When David Bianco travelled through time
To the year 3010,
He fought the evil robot kings
and saved the human race again

And when David Bianco went to the mountains of Afganistan
He beat up Osama bin Laden and the entire Taliban!

So what would David Bianco do
If he were here right now,
I'm sure he'd buy a dip or two,
That's what David Bianco’d do

Thu, 05/03/2012 - 08:38 | 2393352 disabledvet
disabledvet's picture

market's up...gold and silver down. interest rates have plunged to near zero meaning the value of the principle has soared in value as well. i'm not saying it makes sense...but if you've been anyone other than David Einhorn (sorry about crushing you Dave with St Jude. covered just in time for the equity to get hammered i might add.) you've been killed as a short seller. obviously barely a man is in equities on this site...and since i have no complaint about anyone talking their book i'm not going to start now. my sole focus has been on "if i do this for a living what am i doing"...and the answer of course is "you're buying." making money at it probably isn't a bad second thing to do as well. "keep those gold stops tight as well" i say!

Thu, 05/03/2012 - 08:39 | 2393354 JohnKozac
JohnKozac's picture

bin Lad*ns last words:


"...buy more AAPL..."

Thu, 05/03/2012 - 08:53 | 2393396 junkyardjack
junkyardjack's picture

This is bullish, this is an obvious set up to get people to short and then there will be another rally on the squeeze.  Well played DB

Thu, 05/03/2012 - 08:58 | 2393406 LouisDega
LouisDega's picture

Its great to see him back. One problem...Who the hell is he?

Thu, 05/03/2012 - 09:13 | 2393446 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Wall Street equity strategists with shitty track records are recycled more than NFL head coaches with shitty W/L records.

Thu, 05/03/2012 - 09:36 | 2393499 falak pema
falak pema's picture

Bruce Krasting once said : In this day and age the market is the economy.

Thu, 05/03/2012 - 09:59 | 2393569 Laura S.
Laura S.'s picture

"Curing cancer by adding more cancer."
"We'll give Joe one thing though: after a career on Wall Street, he has finally figured out that the "S&P 500 EPS is not US GDP"
I haven´t laughed that much here on ZH for long time.
I hope that Bianco will miss his numbers even more. We would welcome this "economic expert" in Canada too. You all know that we have problems with household debt, and he seems like a guy who understands the market well.
So I´m reading the report and I have to laugh. This is silly. 16 pages of pure bullsh*t.
Good Job Mr. Bianco.

Thu, 05/03/2012 - 12:28 | 2394158 DavidC
DavidC's picture

I really felt I was going to (have to) read it until I saw your comment. I might be able to resist now.


Fri, 05/04/2012 - 14:52 | 2397725 Governor
Governor's picture

Too bad we didn't listen to David Bianco last year...he was right.

Fri, 05/04/2012 - 14:51 | 2397726 Governor
Governor's picture

Too bad we didn't listen to David Bianco last year...he was right.

Sun, 05/06/2012 - 21:36 | 2402266 dserfc
dserfc's picture

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