Market Reaction? 30 Year Just Hit 3.99% As Stock Selloff Accelerates, Gold At All Time Record, Swiss Franc Flash Smashes

Tyler Durden's picture

To see what the market thinks of the economic prospects for the economy look no farther than the 30 Year which just dropped below 4.00% and is trading at 3.99% right now. The market is effectively pricing in a major economic contraction, with long-end deflation now expected. Which means that Bernanke just got yet another carte blanche to proceed with the only thing  he know. And validating it is the equity market which at last check not only did not react favorably to the Senate vote, but has been fading all the news all day, and is now trading at the lows, with the S&P, Nasdaq and Dow all down more than 1% now and plunging. Next up, even as Obama prepares to talk, everyone is once again looking at an imploding Europe which will need its second bailout in a month (and third overall) shortly... or else.

The only chart that matters is, what else, gold:

Ok fine, one more chart: USDCHF, which also just took out record lows following today's latest flash crash.

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Ahmeexnal's picture

only the sheeple think the "deal" was a good thing

the mad hatter's picture

short the next bounce/retest of 200 and 50 DMAs of the major indices (SPX 1285, 1300). wall st wants QE3 and the only justification wiill be through holding 401ks hostage

slaughterer's picture

People are forgetting: tomorrow is the better-than-expected 200,000 ADP read.  (Remember last month). 

Xibalba's picture

if you were gonna go short the long bond, now looks like a good time to scale in.

max2205's picture

Prepare for increased and desperate fooling with the next few months of economic reports

BaBaBouy's picture


Gold just hit a new high in USD fiats, and also in most other major Fiats ...


GoldToTheMoon ...


Most ASIANS have been buying hand-and-fist for years, and are riding high.


Its too bad that most AMERICANS have not, having been Dumbed down by their mainstream media and WALL STREETERS...


Is USA now heading the way of SPAIN / ITALY / GREECE ???


InconvenientCounterParty's picture


The "sheeple" are conditioned to force complex issues into a binary of (good/bad) and my favorite (us/them).

Let me save you the trouble of replying... I am obviously "bad" and one of "them"

Sudden Debt's picture

We don't label here remember?

Just like I a PM freak.

Some would say I'm betting against the system, BUT I DON'T!!! I'M JUST A SPECULATOR AND A COLLECTOR IF IT SUITS ME!

Leanin_Left's picture

Agreed.  Complex issues are easily retooled as good/bad binary when they are presented on an emotional playing field instead of a factual one.  We can see it on MSM every day

Sudden Debt's picture

I like to eat lambmeat. Especially on the grill with a lot of spicebutter H H HMMMMmmmm!

djsmps's picture

Last night, I had lamb chops stuffed with garlic, marinated and then cooked in a red wine, yogurt sauce with basil and rosemary.  But I miss all the Casey Anthony news.

Yen Cross's picture

  Thanks for the visual..  Yes I'm jealous...  I have 2 stumps and a bloody key board for proof...!

Sheba Poe's picture

Casey is at the Menninger clinic in Houston. Her parents are en route. Judge Strickland, who presided over her check fraud case, issued an order for her to serve one year of probation in Orlando. Her defense team is contesting it.

Now you're up to speed.

BaBaBouy's picture


Good For Gold ...


GoldToTheMoon ...

cara leaf's picture

More insurrection @  http://carolelieffthecuriouscapitalist.c

March, 2006. 

Bet he wishes no one found this one ...

“The fact that we are here today to debate raising America ’s debt limit is a sign of leadership failure. It is a sign that our government can’t pay its own bills...that we  depend on ongoing financial assistance from foreign countries to pay for our government’s reckless...policies.  Leadership means ‘the buck stops here.’  Instead our Congressmen and Senators shift an overwhelming burden of their bad choices onto the backs of our innocent children and grandchildren. Americans deserve better. I will oppose all efforts to increase America's debt limit.”

-Sen. Barack Obama, D-Ill.

Speech on Senate floor on his decision to vote against raising the debt ceiling during the Bush Administration.

dbach's picture

I don't know why that wasn't shoved in his face in this debate. Or if it was I missed it. Either way, it shows the relativist nature of our politicians.

pazmaker's picture

Marco Rubio read that qoute on the senate floor along with a few others.   It doesn't matter......Biden has said it as well as pelosi and a mile long list of republicans.


They are all snakes!!!



Spastica Rex's picture

My blood pressure hates you.

jus_lite_reading's picture


Only the sheeple...

think the economy had a recovery

think the stock market is an indicator of the real economy

think Obamao is doing a good job

think everything will come back to normal eventually

think following their favorite celebrities is more important than doing DD

There is No Spoon's picture

the sheeple are being underestimated here. Who thinks obama's doing a good job? People know the economy is in the gutter, they don't care about the stock market, and don't have a "back to normal" outlook. The elites will be the ones caught blindsided this time since they still have a lot to lose. Everyone else is already broke.

William113's picture

Down goes Frazier Down goes Frazier !!!!!!!!!!!!

zorba THE GREEK's picture

Dow just dipped below 12,000. No matter what Obama says, people have voiced their opinion already

UGrev's picture

Well, there's only so many times you can scream "TANKS IN THE STREETS!!" before people give you the "What Ev's" and flip you off.. I would consider this the first of many FU's. :)

Zero Debt's picture

Bernanke still thinks he can stop the deflation of nominal prices by deflating the purchasing power of the dollar.

Sancho Ponzi's picture

Yea, so much for the consumer led recovery. What an idiot...

Meanwhile, Timmay has a sh#tload of debt to sell, so it's time to scare everyone into bonds. 

Spastica Rex's picture

Isn't he supposed to quit now that the deal is done?

Quit Timmay, QUIT!

StychoKiller's picture

Another political "promise" bites the dust! :>(

Smiddywesson's picture

No, they are not going to scare people into bonds.  That was yesterday's game.  They are going to legislate everyone into bonds. 

drink or die's picture

Dow below 12K.  Watching all these charts is more interesting right now than any movie.  Maybe I'm just a nerd though.

Dr. Richard Head's picture

Would rather be a nerd than to be a sheep.  Fucking idiots that follow "reality television" are missing the best reality TV debt can buy - the demise of the US.

If Joe Six Pack can't have the message of dollar debasement understood from a cheerleader shaking her ass at a football game, he doesn't want to hear it.  Let them bleed as far as I am concerned, along with the House of Wall Street Representative.

Cassandra Syndrome's picture

But, But Jim Cramer said this morning that everything is AOK, say it aint so Tyler, sayu it aint so.....

Cortez's picture

I'm gonna be rich listening to the advice of Cramerica. /sarc

wisefool's picture


Cramer tries to help you make money.

Kramer invests in gold for his charitable trust. you could probably get a job there, where they write off a healthy expsense account, company vehicle, nice office, admin, etc. All tax free. 10 weeks of vacation. When you are working, you would be taking the profits of his shrewd gold investments and giving them to some poor person which will make you feel good about yourself.

"wealth" is what the tax code tells you it is. and thats why his charitable trust makes a ton of money on gold.

Q.E.D. Ben, I am ready to take over. - wisefool PhD university of CNBC. Masters in Sociology, from other MSM outlets. 

optimator's picture

Don't forget hiring all your relatives at great salaries to "manage" the trust.  Money is like incest, it's best kept in the family.

Rodent Freikorps's picture

How is that different for nearly every other NGO?

They are all frauds. If they ever fixed any problems, they'd have to get a job.

fuu's picture


lubyanka's picture

What just happened to the CHF? Both against USD and EUR

swissaustrian's picture


Fiat backed by 250 billion $ in fx reserves (USD + EUR). Who wants to own that?

Buy gold!

Hedgetard55's picture

Backed by Nestle's chocolate bars, better than gold.

tickertapeguide's picture

Time to roll outa equities and into T's and cash...

Debtless's picture

and gold looks down on it all from a slightly higher view. 

mayhem_korner's picture

Products of colon, meet westinghouse blades.

Rodent Freikorps's picture

Just wait. Any minute congress will vote to give GE a trillion dollars to develop a shit cannon. A refuse railgun?

A continental fertilizer distribution delivery device. Or incontenent. We do have a lot of very old people. Win/win.

Goatboy's picture

Specially if you have mortgage tied to it.

BORT's picture

Doesn't The Gov want people into Bonds right now to soak up the new supply?

Arch Duke Ferdinand's picture

""August Crisis in Italy and Spain""
"It is far from clear that the international order is more secure today than it was in the seemingly calm days of May 1931..."

OT: 2 minute hilarious video...

joemayo's picture

Over and over again:

"If we don't do this [blank] then you will all be ruined."



"Okay, now that we got what we wanted...Surpise! You're still ruined!"