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Futures Rout Accelerates: Emergency Fed Announcement Possible
The last time we had a modestly comparable collapse in overnight trading, a certain futures trader from SocGen whose gimmickry had been uncovered, caused the Fed to lower its Fed Funds rate in an emergency meeting first thing in the morning. Which is why we wonder, should the ongoing rout accelerate, to an extent driven by the decimation in the Korean Kospi, down -9.5% at last check, but also due to increasing worries the Fed may not announce QE3 tomorrow (or if it does, it will be OT2-like and won't have any actual LSAP component to it), whether Bernanke will be forced to have an emergency address with market in the morning, around 7 am, in order to prevent what is shaping up to be a market collapse of epic proportions. And certainly not helping matters is either Chinese inflation coming in hotter than expected, (see prior post), nor the fact that in the People's Daily, PBoC advisor Xia Bin said that China doesn't rule out "normal market operations" to promotes is own interested when necessary amid the US debt turmoil. "China should set up an overseas investment committee to accelerate the strategic use of foreign exchange, Xia said, according to the report. This committee should organize storage of strategic materials, Xia said, according to the report. The country should allow and encourage companies to purchase foreign exchanges with the yuan, the report said, cited Xia as saying." Wait a minute, you may ask, how does that work without China floating the Yuan? The answer: precisely. So while we wonder just what punitive measures China will take to make sure America behaves, here are the futures. We will update this chart if anything insane occurs.
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LOL
Edit: ROFL
Unreal. 100 weeks of ZH membership and still can't believe my eyes...
Time for the CNBS anchors to get their Dow 10K hats out of the closet
+1
Deflationist thought experiment: How many Boomers are going to 'ride out' a 3rd market crash when they are 3-5 years from retirement? $1 in, $2 out.
Money flows trump S&P, Bernake, Obama, and all the stupids in DC.
1080 was a huge resistance point on the ride up. I wonder if we'll bounce off it on the way back down?
In somewhat related news; Britain: The Road to Martial Law
http://azizonomics.com/2011/08/09/the-road-to-martial-law/
some serious shit here, or false flag, unbelievable!
.
Predator Drone Seen Hovering over Standard & Poor’s Headquarters
http://www.borowitzreport.com/2011/08/08/predator-drone-seen-hovering-above-s-p-headquarters/
That's fucking funny!
how many x'ers y'er and milenials
1) have enough money to buy the shares/houses the boomers are selling?
2) Are ignorant to the fact that these things will be sold to someone at sometime, but it does not have to be right now?
Kinda like the hook up at the club. somebody is going to end up with this one, but not me ... tonight excluded of course... Keep your G.E. stock Mr. Fed Balance sheet.
generational cycles destroy the foundations (morals, incentive models, resources) they need to continue ponzifying. Think Wile-E-Coyote.
1) As an X'er-We have no money to buy those things nor we would we want to buy them if we did, because we can see the writing on the wall. We actually have to save for our own families/retirements since the ponzi will be broken by then for sure.
2) Not ignorant of the fact at all. They will be sold to someone sometime, the last sucker who doesn't know any better (most likely, foreigners think illegals, foreign investors holding dollars especially as fast as the bernank is debasing them those foreigners will want some kind of hard asset, real estate maybe?). I am liquidating everything and hitting the road while I can still get to a place I want to be and will worry about surviving when I get there.
Kind of like the hookup at the club, your right though. Because we know enough about that broad we have for the night to know we wouldn't be able to deal with her more than one night, so we get ours and again, leave her for the inevitable sucker that will marry her ass, personality disorder and all.
So, who essentially ends up like Wile-E-Coyote 10 steps over the cliff before he realizes the ground is gone? Certainly the ones that are on to the ponzi and already know how the game will turn out may do their best to drop out of it to help collapse it further and permanently. Sorry Boomers, should never have told us growing up that it wouldn't be there for us when we 'needed' it, I make sure my millenial kids know the score as well, so don't look to dupe them.
Not trying to be disrespectful but we grew up watching the most selfish generation (boomers), so we know how the game is played, just do not wanna play it so we opt out, drop out, and will keep our heads down till the shooting stops and the crying is over. Then we will rebiuld. It will be harder than anything that had to be rebuilt after WWII for sure.
+1
Following the Boomers thru life has been like getting to the party late - the booze, food and drugs are gone, the furniture is wrecked, the toilet's clogged and there's a turd in the punchbowl.
Revenge is a dish of cold peas.
Choke you fuckers!
I dont know if I would go that far to tell them to choke, I just think the whole me, me, me thing has been short sighted on their part. I understand what Paul B is saying below but I just cannot agree with him. If boomers need help after the ponzi collapses they still have family that will take care if them if need be I am sure. But to imply that they were not of the mindset (especially as much as they protested the gubmint) that maybe we should plan for our retirement rather than take for granted entitlements being there, demostrates their extreme short sightedness, then to gloat to the next generation about how it won't be there for them, well no shit, you guys spent it all on shit like LBJ's great society. There is nothing glib or happy about my statements here, it is a shame. It also demonstrates the value of planning, and raising your children to think about the future, more importantly to be independent and RESPONSIBLE. I am also really not that young as in less than 5 years my kids will be gone. I have planned to get them off on a good solid footing as adults. I don't know what the boomers will do, but to expect us to buy into the ponzi and get screwed even more is not gonna happen, we have to end the BS here and now. I am kinda mad about the booze and drugs though, they left us with the cheap liquor and I sure could lay down with this hangover...oh shit the furniture is broken and burned....damn boomers!
"Following the Boomers thru life has been like getting to the party late - the booze, food and drugs are gone, the furniture is wrecked, the toilet's clogged and there's a turd in the punchbowl."
Very nice (and unnervingly accurate) analogy.
What's wrong with selfish?
It is not very becoming of people who are responsible for children, especially when they are parents, and were supposed to be setting an example for those children they were responsible for.
Why are you unhappy?
Because 99.9 per cent
Of everything you think,
And of everything you do,
Is for yourself -
And there isn't one.
~~ Wei Wu Wei
I'm gen Y--and I couldn't care less 'bout being some good little upkeeper of the status quo and furthering myself in the current system.
Those older people'll enjoy their cat food after wasting their lives away at the behest of the corporate mother and father government. I intend to "live" while I'm alive--and not when I'm some old decrepit shell.
Sure, if things were as easy as how it was when the boomers had the place, I'd be a nice sycophantic jellyfish to keep what was given to me, too. But it ain't so --so I've got no qualms about seeing it burn; Yep, following these old nasty assholes through life isn't the greatest thing--but look! They're tripping up, and it's about time to step over them.
No hard feelings, but you old fucks fucked us--don't expect much of a helping hand, 'cause those of us on the way up need both of 'em to climb out of what the hell the lot of you left us in.
Well said, and it sounds like a reasonable position to take. GenX here, and mad as hell. Wanting to get everything straightened out before my 11 year old becomes an adult.
I figured out fifteen years ago the Boomers screwed us over and I swore I would live long enough to tap dance on the grave of the last one to croak.
So TMC showed "A Tale of Two Cities" the other night. The great one with Roger Coleman. They made Madame Defarge look like a lunatic. The bastards!
Here's my favorite Theresa quote, speaking to husband Ernest,
(translated from the original tongue): "These idiots have no idea, do they?!"
Oh and yeah - I've got two little boys of my own. Damn these assholes if they plan on enslaving them. Over my dead body. (Yeah, fuck you NSA/FBI thoughtpolice. Burn in hell - you're on the wrong side of history and God.)
1080 was on the way up. On the way down the resistance level is 1060. I know it's predictable and I know fully informed individuals should have not have expected anything different but this crazy action all courtesy of the FED and the administration is going to ruin a lot of people and when I say that I mean people like 65 or 68 years old with the difference being that they have no time left to start again. Can't be as glib and stupid as most of the youngsters that post here. It's really very sad. I feel bad for them. By the time this sorts itself out they will have died, probably impoverished. Oh and to the young who will invariably say something cruel and stupid I hope when your turn comes that it happens to you.
WATCH OBAMA PULL A CHAVEZ
just when all /most eyes are on the flaming helicopter.
A 20% dump on SPUs translates to around 1077 and we hit that around 10pm and bounced. If a 20% dump in order to be begged for QE3 was the plan and if TPTB are still in control, the bernank starts flappin his gums on the open tomorrow. If not, I am looking forward to the opening of the PM bargain basement courtesy of GLD liquidation.
As far as stupid comments from the young, just remember; the boomers gave birth to a lot of these commenters. Equally stupid to count on the government to raise them (day care, school curriculum, MSM news, etc). As far as 'their turn', the X's counted on the government to raise the Y's even more. What goes around....
Asian markets blasting downward. Of its many negatives, the worst of Globalization is this: everything goes at once.
is it time for 24 hour emergency coverage yet? i have seen it twice since 2006....
http://www.realclearpolitics.com/video/2011/08/08/rick_santelli_if_not_f...
santelli says we should be BBB
ha ha ha.
is this guy about to get fired from status quo mouthpiece central?
"...Our leaders are on vacation until Septemer 7th! It's reprehensible!"
Quote of the day. +1
Only if a vacation is sitting in a bunker or foreign country avoiding constituents and seeking political cover for the shit that goes down tomorrow, they will be out to write the check for TARP 2 when the chairsatan and timmay show up to ask for it after BAC fails.
"Our 'leaders'"
See, I fixed that for you.
Look on the bright side:
Poli (latin for many)
Tics (blood sucking vermin)
30 days to get the red corpuscle count up before the next feeding.
Jim Sinclair's $1764 taken out at 11:07 pm central. Looking for hell to break loose.
someone posted this on the GIM2 forum a couple days back. F the Dow10k hats, I like this dude's hat:
Storm The Bastille: http://www.youtube.com/watch?v=QDD7Wjbot_8&feature=player_embedded
(from 10/9/08)
@jdrose1985
Wow. My thoughts exactly. I thought the unraveling would be swift, but this is lightning.
jdrose1985 used to be an uber gold bear talking about how this type of collapse could not happen and that gold had peaked.
daily RSI in the 16s now...waterfalls like this in the past have led to immediate Fed intervention, the effects of which have lasted usually 5-6 weeks, but sometimes as short as 3 days (TARP) and as long as 2 years (QE).
If they don't intervene, it seems clear that any bounce is shortable...BAC and DB will be going tits up
My gold purchase sub $1500 looks better every day.
somebody say gold?
Jim Rickards – Tea Party, AAA Status & Gold
I find it very interesting that JPM just uped it's gold target so much when it runs the GLD etf. Buy gold by all means, but if you give your money to the Borg through GLD don't kid yourself and think they are actually buying gold with it.
Eye-popping stuff: August GLD in-flows already approach full-month July totals.
Thats one hell of a floor!! The phyz must be just as strong if not stronger!
I agree. It occured to me what JPM is doing... classic misdirection. "Hey, look over there at Gold. It's going to the moon." [Jamie thinks: I hope they don't notice the silver squeeze happening right in front of them.]
Here's one of my favorite articles from 2008: Infinite squeeze on VW stock.
http://www.economist.com/node/12501847
The custodian of GLD is actually HSBC. JPM runs SLV
As if they are separate companies.
Jim Rickards is a mad genius.
emergency fed address needed
or better...
emergency presidential resignation
Do you have any idea how far down the chain of succession you have to go to find anyone of competence?
#41
sadly thought provoking, that.
Three words should chill that thought "President Joe Biden".
....stay healthy Obama...
Com'on now, we were told time and again he'd be a fantastic president compared to Sarah...
US presidents are puppets anyway.
Well the guy who yells "The President of the United States" at every SOTU address seems to do a pretty good job.
pods
Feel free to skip over #5
YES! I'll take option 2.
A friend wondered what Obama could have said to calm the markets today. "I resign" was my top pick.
If he told us the Obama pet dog would replace him, the market would have stemmed the decline. If he announced all members of congress would be replaced by their pet lizards, the market would have rallied 20%.
Lizards are not known for showering their cronies with goods stolen from their constituents.
At least ONE PERSON at the FED has a brain...
Federal Reserve’s Sheets Quits as Bernanke’s Chief International Adviser
http://www.bloomberg.com/news/2011-08-08/fed-s-d-nathan-sheets-resigns-a...
First rats starting jump out the ship!!
A group of farmers with a bag of feathers, a hot pot of tar, and a rail were seen in Washington D.C. a few minutes ago.
LOL, Right on!
Did you explain to them that the pack of degenerates they're looking for has temporarily taken a break from destroying the country to reward themselves with vacations in exotic locations at which they undoubtedly arrived on tax-payer funded private jets?
And what's with the tar and feathers? Have we run out of rifles?
81 congressmen going to Israel on break
Perhaps seeking a salty dip in the Dead Sea to end a stressful debt debate, nearly one in five members of the House of
Representatives will use their summer recess period to visit Israel, The Jerusalem Post reports. Of the 81 heading over,
55 are Republicans and 26 are Democrats, The Post reports. Half of the freshmen Republican reps - 47 of them - make
up that group, and many of them will be visiting Israel for the first time.
Among the Democrats heading over is Illinois Congressman Jesse Jackson Jr., who will be there for an eight-day visit, the
Associated Press reports. Jackson, like most congressmen on the sponsored trip, is scheduled to meet with both Israeli
and Palestinian leaders. The famous civil rights leader's son told the AP that he's looking forward to learning about Israel's
business and commercial sectors as well as the latest tools and technology the country is using in its fight against terror.
Almost all of the week-long trips are sponsored by the American Israel Education Foundation, which promotes similar trips for
Congress every other August, the Post reports. House Democratic Whip Steny Hoyer will head the Democratic delegation,
and House Majority Leader Eric Cantor will lead one of the Republican groups.
American Israel Education Foundation is a supporting organization of the American Israel Public Affairs Committee, or AIPAC,
which describes itself on its website as "America's leading pro-Israel lobby...AIPAC works with both Democratic and Republican political leaders to enact public policy that strengthens the vital U.S.-Israel relationship."
Any of them named "Nero"?
Are these the same patriots that cheered Netanyahus speech to Congress? Poor Bibis gonna have a sore cock after this lot have been and gone.
ahhh, the good old days...
i'm getting nostalgic
Was that heavy sour, intermediate or light sweet tar?
Farmers aren't rich. They bought the mysteriously much cheaper Brent.
Just the kind of "in the box thinking" that is needed right now. That's what got us here. This is why we will never get out of the mess with out a total reset.
Biden is possibly the only thing worse than our current . . . President
How about Reid, Pelosi, Frank, Palin, Bachman, Rick Perry ... Need I go on?
+1
Yes the VP slot seems to attract a lot of anti assassination bets these days, Gore, Cheney, Biden, Quayle, Mondale...
Hey Tyler, I wonder how that ILL pension you had up awhile back is making out now..
It, along with thousands of other pensions chasing levered beta are now smoked. We all knew the balance sheet "recovery" was the only thing which was going to be "transitory"
We also knew that eventually Meredith Whitney would be proven correct, although we (thankfully) weren't hauled in front of congress/senate panels to try and explain things to the 99% of retarded representatives while the 1% in the know asked questions they know the answers to themselves.
So, we know the IL pension is fucked. We also know how well those in TX who bought a billion in physical are feeling--vindicated for making the right call, and scared shitless that they won't ever see the gold since they don't have physical possession.
+1
meredith: hauled in front of the court in Salem ; Indicted on the basis of spectral evidence
Over to you, Chairsatan!!
What's you next move? Mr. Barenake(d)?
I've always thought that "Ben Bukkake" captured the sense of the man better.
TD,
lots of trouble accessing ZH past week, just went down past 5mins again... is ZH under attack or is this related to going back to old format (which is better BTW) ?
I am having flashbacks of 2008 of when the SHTF and the web site crashes! I thought you guy updated and improved this site since then. Lots of 403's!
Too much traffic. We didnt have zh in 2008
Correction: 2009. Time flies when you are having fun!!!!!
I think ZH already existed back in 2008.
I seem to recall reading ZH daily back then.
Am I wrong?
Early 09 I thought. BLogspot closed in July of 09.
The crash of '08 got me paying attention, and I ran across ZH after then. I loitered for sometime then joined. I would say early '09.
Here is the last formal post on the blogspot site It is July 28th on that day. He mentions blogger serving well for a little over 6 months: http://zerohedge.blogspot.com/2009/07/moving-on.html
This appears to be the first post on 1/9/09: http://zerohedge.blogspot.com/2009/01/wall-streets-diarrhea-shifting-to-park.html
Thanks! Cool to see vintage ZH again! Seems like a long time ago, doesn't it?
I liked that layout better.
The conversations were more educational at the time as well.
Fame has it's draw backs.
Yes, no trolls.
Hi, thank you for digging it up.
I thought I was reading zh around the time the whole AIG bailout mess was going on.
Obviously, I was wrong.
Thanks again, fuu!
Sure thing.
ditto...
Agreed.
TD,
doing a stellar job as always but a lot of loading issues this week. Keep up the good work and bring back the Junk button.
Thanks for everything.
Try accessing from a smartphone throughout the day...
better yet, don't waste your time.
If there is something we as site users can do to lessen the strain,
limit response length, make donations, whatever---
TD, you would tell us wouldn't you?
When server load hits 90% - 95% disable "contributor" articles (Leo, GW, Reggie, etc), disable marquee, disable RanSquawk, disable searching, account view, etc, disable everything but home page main column articles, put large notice in marquee area most site features disabled temporarily due to heavy server load, and keep it that way till server load drops below 80% for 15 min.
I predict this day will be considered the last day of THE DEAD CAT BOUNCE. Welcome to the Greatest Depression!
I told a coworker today that he might want to take note of the day, as his grand children would ask him where he was when the great depression 2.0 started. He laughed at me, and made some comment about how I was nuts. Looks like he might be eating those words come morning....
the 40th anniversary of the fiat world currency system is one week from today, 8/15/11. i always thought that would be the future day of reflection.
We will update this chart if anything insane occurs.
If? Doncha mean when?
I'm simply not believing the coverage on CNBS and Bloomberg. Epic FAIL. Thank you, Tyler.
Markets realigning with reality too fast, MSM freaking out, begging for QE3.
They're saying nothing has changed in the US in the last 48 hours. As if all was hunky dory??
The reason why it's falling so far so fast is because prices were reflecting mark to fantasy.
Were they assuming 5% baseline growth this year too??
Meh, why not roll QE3 & 4 together and we'll get 5 in time for the iphone 5 release.
It'll be even more fun next ride.
Fear is everywhere that we'll reflect reality.
Gold stocks hung in there all day. QE3 will light the fuse.
Want added analysis to Zero Hedge, then check this site out:
http://www.collapsenet.com/154.html
I think that's Mike Ruppert's site. He used to be good (9/11 stuff)....but his worldview, unless it has changed in the last two years or so, is incompatible with most folks on ZH (IMO).
I am really starting to thing that TPTB have just given up on trying to prop things up anymore. It's almost like they have resigned (finally) that they have absolutely no control on the shitstorm that they've started. I'll debate on if this was their original intention or not (status quo is an incredible motivator).
The unwind is speeding up.
They only had the illusion and self-delusion of control. Like predicting the path and strength of a hurricane.
Agreed. There is a strong motivator in maintaining the status quo; I guess I just underestimated how fast that motivator would wane ;) I would have thought if anything they would attempt to keep up appearances to placate the massses.
They have tried to keep up appearences. It worked for a while. But as Abe said, you can't fool all the people all the time. This is a meltdown of epic proportion we're starring in the face, and it's snowballing real fast. What they underestimated was that in a Ponzi the end-game is very sudden. THe options simply run out.
Baad motivator!
Perhaps the idea was to just outlast the Euro.
I think there's a lot of truth in this.
Fed intervention will do zilch. This is a crisis of confidence on a global scale. Fed's attempt at short term fixes will only make it much worse.
The fed can masturbate and spew QE3 as much as they want to. It doesn't matter. We are seeing deleveraging on a mass scale. $10 billions of Fed money vs $trillions investor money in a panic. We know who will win.
Tipping point, biitchez!
Let the markets work for once - honestly! Lets test all these regulations they feverishly put in the last few years. Lets see if they are worth a damn.
So already below technical support uh? Shiat. Next technical support is around 940-930... this is gonna be an epic collapse.
Sorry for re-posting, having either connection issues or ZH access issues...
Damn, I hate these quick moves down. I need a slow move down, so my 3x daily bear ETF gets some compounding to work for me. Any guesses on an ultimate bottom, and timeframe? Weird that today was another 666 day.
G-20. BINGO!
Oh, I can't wait to see how the Fed decides to fuck things up more this time around.
It's like watching an episode of "I Shouldn't Be Alive."
Rick, never underestimate the legendary power of The Bernank to make an epically bad situation more epically worse.
Gold doesn't.
Hmm, this website seems to not be allowing me to post messages any longer --- why?
(EDIT: OK, that one seemed to work --- but my others in this thread all got deleted, or never posted in the first place. ???????)
A couple of people are having the same issue, Brother Akak. It seems all the kinks from the 're-work' back to the old commenting system aren't quite ironed out as of yet.
Akak
i've got the same problem too
BTW my apologies for being too trigger happy and strong worded yesterday... i saw a ZH article couple of weeks ago that showed the depletion of pension funds by the little Git'ner.. are you saying that's just shifting things around the US Govts balance sheet?
...seems a bit Enron-esque if you ask me and a slippery road to bankruptcy
No shit dude.
With the destruction of all Enron evidence on 9/11, this type of accounting became standard practice.
All the players on Wall St. knew then that anything they did going forward would be backstopped/covered up by their bought and paid for politicians. While they probably felt this way prior to that day, it was the official green light.
and don't forget the bought and paid for accoutants ...post-Enron they did nothing to right the mistakes, which were simple to correct... stop the Board of Directors appointing crones, let the shareholders vote so that accountants are true to the shareholders not Execs
..and so the crony accountants continue to bend over to banks etc and their cooking the books frauds continue ...nothing was said in 2008 about Banks balance sheets being a joke but 2011's bank collapses will ...tragic profession, deserves to go
Go Short the Big Accountants like Ernst & Young etc, their shares will be worth sweet fuk-all when Pension Funds, Hedgies and shareholder groups have sued their frauduelent arses into oblivion in next few years
It must really be getting bad. Ann Coulter was just making sense on FBN.
I think she cheated and listened to Peter Schiff and Jim Rogers that were on before her.
I thought she was dead.
Should have known you can't kill the undead.
Have you seen the Asian markets tonight?
Nikkei down -4.43% (right from the off)
Hang Seng down -7.05% (right from the bell)
Shanghai down -2.28% (that's considered a 'good day' right now!)
Ozzie ASX down -4.56% (that's now a pretty average day at the office)
..it's a fuking bloodbath again
Its the "new normal", down 5%
I don't know, but some engineer friend of mine told me to chill, even after today's bloodbath. Investing is a game of patience he said. And most of an investor's profit comes from dividends. Now where to start...
Dividends? Must be loving this yield rally!
Except when you lose 2 years worth of gains in 2 weeks, ones patientce wears thin.. really fucking thin..
See, everyone incorrectly jumped all over Timmah for projecting 5% growth. People failed to note the minus "-" sign!
Oh Dear, not another Timmay prediction in the bin ...they do all seem to all end up there!
so what's this we hear, Asia comes to rescue?
Or, is it the other way around, pump through of liquidity, all around?
QEx...WRN to replace FRN.
...awe Rosie, you ain't really surprised is yuh? ...a O' Bomba is fallen, is fallen, that's just the way it is. http://www.youtube.com/watch?v=9J8-xmbfBWc
Any Fed attempt would be warmly appreciated I think. Esp. at this point.
Fuck that, let it burn!
+1861
So...it looks like DOW futures have lost about 1000 points since opening on Sunday night.
This is very exciting.
"The suspense is killing me...I hope it lasts"
Willy Wonka
Damn, everyone is unwinding their QE2 portfolio rebalancing all at once!
If QE3 is announced, the adjustment will just be more painful, when it ends, if it ever ends.
Market gave back almost all QE2 gains in a week
By the way, did the rest of you know that leo kolivakis is no longer officially associated with ZeroHedge as of this past weekend?
Fuck Leo..... "Chinese Solar stocks to Sizzle in 2010 and beyond"
Wasn't that comet suppose to cover the sky in september? Bearish for solar...
Or maybe that was in the matrix...
Elenin... Here is some "fiction" for you to read. BE sure to go to the interactive map to get the right dates if you care/dare. :-)
http://www.activistpost.com/2011/05/bad-news-from-nasa-proof-that-comet....
Other than that... Gold $1750, Popcorn and plenty of fictional shit like riost all over the world.
http://www.elenin.org/
.....that was just a typo...Fizzle...was what was intended....
Please explain the significance of this.......
the significance is Leo Kockupalot was ZH's last remaining Bull... Hamy Wanger pissed off months ago!
Bears Win ;)
Correction: ZH's last remaining bullshitter.