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Not To Be Left Out, China Announces Its Own Bank And Stock Market Bail Out

Tyler Durden's picture


To anyone still believing that capital markets around the world express something other than government policy, the latest news out of China may come as a surprise: "Beijing will buy more shares in China’s biggest banks, in an expression of support for the beleaguered stock market and most concrete state action to date to shore up confidence in the slowing economy." The FT reports further: "Central Huijin, the domestic arm of China’s sovereign wealth fund, will buy the shares to help stabilise the pillars of the country’s financial system, the official Xinhua news agency said on Monday. Coming as the Chinese stock market closed at a 30-month low, the move was the strongest sign that Beijing wants to engineer a restoration of confidence in share prices and the economy. It paid instant dividends with a rally in the final minutes of trading on Monday." And there you have it: stocks are now nothing more than a means for governments to validate their "success" in something, since they have no more control left over either employment or inflation, or public expression of affection with capitalism as per #OWS. So why not ramp up the DJIA to 36,000? Granted that will happen as all global currencies get terminally davalued against gold, but so what - after all that only thing that matters now is whose stock market is the biggest.


Although Chinese growth has so far held up well, the European debt crisis and the risk of a double-dip recession in the US have cast a shadow over the country’s economy. With inflation running near three-year highs and debt levels swollen by heavy spending, economists doubt that Beijing could launch the kind of stimulus it did when the global financial crisis struck in 2008.


Sensing vulnerability, investors have turned against China, driving down commodity prices, betting on the chances of a government default and selling shares in the banks that are the economy’s lifeblood.


The government, through Huijin, is already the majority shareholder in all of the country’s major banks. While the announcement gave no details about how much more it intends to buy, it was unabashed in declaring that it aimed to halt the roughly 30 per cent slide in bank stocks in recent months.


In a rebuff to traders who have been betting that the renminbi will weaken as the Chinese economy slows, Beijing also allowed the currency to record its biggest one-day gain in years on Monday, letting it rise 0.6 per cent against the dollar.


The motivation for that also appeared to be diplomatic, with the US Senate set to vote on Tuesday on legislation that would punish China for keeping its currency undervalued.

And so on.

We could say "we told you so" but so what - at this point only the biggest idiots don't realize that is the last ditch desperation manoeuvre to preserve social stability by keeping stock markets at a level that will prevent all out panic. Yes, someone will have to pay the piper at the end of the day because not even Keynes could have envisioned this kind of wholesale lunacy, but by then it will be "someone else's problem." For now - it is time to buy, buy, buy and, to those who listen to Berlusconi, create some market volatility.

h/t Mario


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Mon, 10/10/2011 - 10:50 | 1757441 Mongo
Mongo's picture

Global keynesian brain damage syndrome

Mon, 10/10/2011 - 10:57 | 1757471 mfoste1
mfoste1's picture

maybe big pharma will deem a new disease called "keynesian sickness".....long pharmas

Mon, 10/10/2011 - 11:18 | 1757575 DeadFred
DeadFred's picture

After a depressing morning watching the euro soar through all manner of resistance a nice thought occured to me, maybe the Slovaks will ratify the bailout and then the markets will turn and stop their climb.

Really, financials are up 3.7% today, really?

Mon, 10/10/2011 - 11:55 | 1757715 Ancona
Ancona's picture

I see we've gone full on slapstick comedy today. WTF??

Up 286 on shit for volume? Man, I 'coulda been a contender.

Mon, 10/10/2011 - 12:06 | 1757771 Troll Magnet
Troll Magnet's picture


Mon, 10/10/2011 - 12:13 | 1757799 espirit
espirit's picture

Ponzi on.

Mon, 10/10/2011 - 12:21 | 1757835 RSloane
RSloane's picture

Yup. So much for the markets being wiped out today. Its nothing short of mind-boggling.

Mon, 10/10/2011 - 11:48 | 1757685 jdelano
jdelano's picture

This market has the memory of a goldfish.  How many times have we done this now?  Here we are slamming against the ceiling at S&P 1190, but everybody's still absolutely convinced it's a real rallly.   The presses are rolling! Europe's saved! Game on!    

(Just doubled my puts.  market 180 time.  see you at 1080 when everyone will be screaming, "there's no bottom to this, there's no bottom!!!)


heeheehee, morons.  

Mon, 10/10/2011 - 13:17 | 1758062 covert
covert's picture

bailouts lead to more, etc. esentually, it's a domino effect leading to global poverty.

part of the lemming effect, more shorting to come.


Mon, 10/10/2011 - 10:53 | 1757452 GeneMarchbanks
GeneMarchbanks's picture

At least we know who owns who in China.

Mon, 10/10/2011 - 11:12 | 1757540 CosmicBuddha
CosmicBuddha's picture

Or indeed and, more to the point, who owns Hu.

Mon, 10/10/2011 - 11:35 | 1757636 Hobbleknee
Hobbleknee's picture

And more importantly, Hu Flung Pu.

Mon, 10/10/2011 - 11:59 | 1757740 Troll Magnet
Troll Magnet's picture


Mon, 10/10/2011 - 10:53 | 1757453 dick cheneys ghost
dick cheneys ghost's picture

Governments only do what Banksters tell them to do.................

Mon, 10/10/2011 - 11:05 | 1757497 kito
kito's picture

not in china bro. the govt is the bank

Mon, 10/10/2011 - 11:33 | 1757633 SheepDog-One
SheepDog-One's picture

This is actually quite humorous from an Oriental mindset....theyre NOT 'bailing out' anything....they just threw a trump card in Europes face!

You talk about bailing out...OK we bail out too, negating you, SUCKERS!!

Mon, 10/10/2011 - 11:40 | 1757655 Hobbleknee
Mon, 10/10/2011 - 10:53 | 1757454 Irish66
Irish66's picture

 waited all day for China and Putin

Mon, 10/10/2011 - 10:53 | 1757456 Caviar Emptor
Caviar Emptor's picture

I was just predciting this on the last thread: China will join the US and ECB in printing Trillions. 


Mon, 10/10/2011 - 11:08 | 1757507 SheepDog-One
SheepDog-One's picture

So they keep moving the decimal point to the what? Means nothing to anyone but the top .001%.

Mon, 10/10/2011 - 11:36 | 1757639 Panafrican Funk...
Panafrican Funktron Robot's picture

Long term holders of physical gold at least have some comfort in the non-destruction of their real wealth.  In that sense, meaning is present here.  I think I share the opinion of the most of us who are correctly prepared in not wishing what's coming to actually occur.  It's a slow motion train wreck, and stupidity is entertaining to a point, but this is starting to get dangerously close to actually breaking down, and that is frankly a grim, if unavoidable, thought.  

Mon, 10/10/2011 - 10:54 | 1757457 moskov
moskov's picture

Most of the Chinese would be satified with this. It's far better than baiting out US treasury bonds

Mon, 10/10/2011 - 10:54 | 1757459 mn1
mn1's picture

the Dow will go to 36,000 just give it time....and please continue your negative articles coming...theres nothing like freaking out people to dump so you can pick it up on the cheap...

Mon, 10/10/2011 - 10:56 | 1757464 GeneMarchbanks
GeneMarchbanks's picture

It won't matter with the DXY @ 40.

Mon, 10/10/2011 - 11:14 | 1757551 Hedgetard55
Hedgetard55's picture



DOW at 35,000 means gas at $20, and no economy, jobs, law and order, etc.

Mon, 10/10/2011 - 11:24 | 1757599 dracos_ghost
dracos_ghost's picture

But the elites will have their crappy sovereign debt reallocated to taxpayer backed stock prices.

Mon, 10/10/2011 - 10:59 | 1757477 Johnny Lawrence
Johnny Lawrence's picture

I really hope you don't manage anyone's money.  Using an internet blog as a contrarian indicator is pure idiocy.

Mon, 10/10/2011 - 11:09 | 1757518 SheepDog-One
SheepDog-One's picture

DOW 36,000 also means gas $40 a gallon and trip to the store for the week costs around $12,000....OK bring it on whatever!

Mon, 10/10/2011 - 11:46 | 1757675 Kina
Kina's picture

With the DOW at 36,000 one USD would be worth a teaspoon of dog shit. Enjoy cashing in your 'wealth' in pounds of dog shit.



Mon, 10/10/2011 - 10:56 | 1757462 HANKREARDON

We are all socialists now.

Mon, 10/10/2011 - 10:56 | 1757463 monopoly
monopoly's picture

And here come the flippers.

Mon, 10/10/2011 - 10:57 | 1757466 Caviar Emptor
Caviar Emptor's picture

Banks are the easiest problem to solve in China. They're going to need trillions more as the economy totters especially in second-tier cities (which are huge) and smaller cities (lots of them). And the Fed is still doing Pomos, Obama and Congress will announce trillion+ stimuli imminently, ECB needs trillions to bail its own governments out so they can bail out their banks and their citizens.....we gonna need a bigger printing press

Mon, 10/10/2011 - 11:11 | 1757523 SheepDog-One
SheepDog-One's picture

'So they can bail out the banks, and their citizens'....LOL no ones bailing out their CITIZENS at all!

Mon, 10/10/2011 - 10:57 | 1757468 John Law Lives
John Law Lives's picture

DJIA up 900+ points off its intraday lows in the last 5 trading sessions.  Nothing like a pump job based upon rumors of bailouts.

FUBAR market.

Mon, 10/10/2011 - 11:09 | 1757515 HelluvaEngineer
HelluvaEngineer's picture

I just got a friggin' margin call!  First ever.

Mon, 10/10/2011 - 11:14 | 1757550 John Law Lives
John Law Lives's picture

I got a one of those about 10 years ago when I used to trade stocks. I even got a few phone calls from my broker telling me to sell stock or deposit cash ASAP or they would liquidate my other position(s) until I was whole again. Scary when it happens. Alas, I no longer trade stocks. The little guys are seriously outgunned these days, and the SEC doesn't give a damn.

Mon, 10/10/2011 - 11:26 | 1757611 HelluvaEngineer
HelluvaEngineer's picture

Well, it was just an email (for now), and not that much money, but completely related to the 5% run in high beta momos that I'm shorting.  This market is completely insane.

Mon, 10/10/2011 - 11:39 | 1757647 John Law Lives
John Law Lives's picture

I seems obvious that Central Banks are establishing policy with the intention of pumping markets.  What a joke.  Governments don't know how to solve REAL problems like high unemployment and massive deficit spending, so Central Banks create more fiat currency and goose the stock markets.  No wonder so many people are cynical.

Mon, 10/10/2011 - 10:58 | 1757469 Wu Qi Ming
Wu Qi Ming's picture

This explains the very brief mention of an upcoming extraordinary share holders meeting of Industrial Commercial bank of China where they plan to discuss new share issuance AND short term bond generation on the Chinese english speaking media today.

Mon, 10/10/2011 - 11:00 | 1757473 achmachat
achmachat's picture

I have a smallish investment in China and because I knew that this was going to happen sooner or later, my investment profits get changed to gold at the end of each month.

I was not comfortable with heaps of RMBs just sitting there waiting for me.


edit: yes, this means that I actually have a small side-income that comes in gold! I feel so barbarian!

Mon, 10/10/2011 - 11:11 | 1757533 SheepDog-One
SheepDog-One's picture

Good luck just trying to keep even, be nimble...VERY nimble!

Mon, 10/10/2011 - 11:14 | 1757548 achmachat
achmachat's picture

i did better than keep even. As of a few weeks ago, it's already paid me back what i had invested.


Mon, 10/10/2011 - 10:59 | 1757476 Fips_OnTheSpot
Fips_OnTheSpot's picture

Yield in cocaine nowadays? ;)

Mon, 10/10/2011 - 11:08 | 1757511 maxw3st
maxw3st's picture

Very high according to the Mexican drug cartels.

Mon, 10/10/2011 - 10:59 | 1757478 PulauHantu29
PulauHantu29's picture

Right Ball.

Left Ball.

Dick in the Middle.


Why not?

Mon, 10/10/2011 - 11:10 | 1757520 HD
HD's picture

If that's accurate I gotta see a doctor!! I wondered what all the pointing and laughing was about...

Mon, 10/10/2011 - 10:59 | 1757479 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

"To anyone still believing that capital markets around the world express something other than government industrial policy"

fixed it.

This is a corpocracy after all (fascism)

Mon, 10/10/2011 - 11:00 | 1757480 jekyll island
jekyll island's picture

Did these banks pass the initial stress test too?  

Mon, 10/10/2011 - 11:00 | 1757482 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

hmmm...I was supposed to have crossed out the world government

Mon, 10/10/2011 - 11:00 | 1757483 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...another mistake...signing off...sorry all. Good luck out there

Mon, 10/10/2011 - 11:08 | 1757508 fuu
fuu's picture

Strikethrough doesn't work from the menu or through html.

Mon, 10/10/2011 - 11:00 | 1757484 A Man without Q...
A Man without Qualities's picture

I think the problems in the shadow banking sector have come as a shock to the central planners.  This is nothing more than a bailout...  Greate article from today's FT..

"The sustained haemorrhage of state bank deposits has swelled the unregulated shadow banking system to such a size that it now supplies more credit to the economy each month than the formal banks do, according to China Confidential, a research service at the Financial Times. "

"Indeed, it is a telling insight into the atrophied condition of the state-regulated financial system that the most profitable activity by state-owned banks in the first half of this year was not lending to businesses but funding trusts and underground banks, bank financial reports show."

Mon, 10/10/2011 - 11:40 | 1757651 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The system is broken?  We're shocked!  Shocked, I tell you!!!


This is the plan!  Destroy the old system, and remake it in a new image.  One with a Police State.  One with total control of the masses.  One where the middle class is once again a population of serfs.

One where the Power Hungry once again rule as Kings, as they did before the American Revolution.  This is the reason why the Federal Reserve Bank, through proxie of the Major Banking Houses of Morgan, Rockefeller, Delano, Pierce, etc, took the gold backing from the Dollar, and made it worht nothing.  They knew that by having the American currencie in default they would be able to bankrupt the Republic.  Their goal from day zero.

We have always been at war with Brittain.  Since we won, they have planned revenge.  The Power Hungry remember how Atlantis was built, and they want to have it for themselves.  They must rid the world of its money.  They have done this by creating the fiat ponzi.  The Dollar is worth nothing.  The system is worth nothing. 

But go ahead, play the game.  Invest in your 401ks.  Think that someday someone will buy your house for what you think it is valued.  Live the dream, with your head in the tree of money.  All the while the policy makers create a witches brew that will change the structure to their advantage; bankrupt Nation States and bankrpt people will go begging to the IMF/World Bank/BIS for loans.  What will their collateral be?


...not dollars...not euros....not paper.....


Mon, 10/10/2011 - 11:01 | 1757485 thunderchief
thunderchief's picture

QE 3.0 to the tenth power.  The Bernanke is vindicated.


Mon, 10/10/2011 - 11:01 | 1757487 BORT
BORT's picture

This reminds me of Sept 19, 2008. 

From Wickipedia

Financial crisis of 2007–2010

Mon, 10/10/2011 - 11:02 | 1757488 Randall Cabot
Randall Cabot's picture

How come none of the gurus here ever see these things coming? Why didn't the gurus see that Merkozy and Sarkerkel were going to say something that would send stocks soaring today??

Disclaimer: I am not a guru nor have I ever claimed to be one.

Mon, 10/10/2011 - 11:07 | 1757499 maxw3st
maxw3st's picture

Actually if you pay attention here and to DailyFx and to Ilian Yotov, all predicted it was time for a correction. Ilian predicts it could go to previously established S/R levels higher than here. EURUSD has many of them and nothing has fundamentally improved in the Eurozone. In other words, this is a false rally and needs to be taken advantage of.

Mon, 10/10/2011 - 11:30 | 1757624 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah cuz the Fed printing press ain't humming?  Things AND policy has changed in US politics?  China just did a bailout.  England just did a bailout.  Europe is planning a plan to do a bailout, but so is the US.  ALL FALLS DOWN!  You can not stop the fiat ponzi from getting vaporised, and what is the underlying "asset" of the ponzi?  THE DOLLAR.

LOL You are all on the wrong side of the trade and it is fun to watch.

Get money!  Get money!  King Dollar!  King Rahrah!!!!



Mon, 10/10/2011 - 11:09 | 1757514 Quinvarius
Quinvarius's picture

The guys they let on TV without making fun of never saw it coming.  They still think the stock market is rising due to something other than money creation and inflation.  But Schiff has been calling it right the whole time.

Mon, 10/10/2011 - 11:03 | 1757489 maxw3st
maxw3st's picture

This can only be seen as a golden opportunity to short from higher levels. EURUSD is still on the way to 1.30 near term. We have just been handed a 3-400 pip bonus in the process.

Mon, 10/10/2011 - 12:02 | 1757753 Panafrican Funk...
Panafrican Funktron Robot's picture

What are you using as the basis for that 1.30 call?  TA or fundamental?

Mon, 10/10/2011 - 11:07 | 1757500 Quinvarius
Quinvarius's picture

Global QE!  Actually, worse than QE.  It is just straight up nutso printing.

Mon, 10/10/2011 - 11:14 | 1757547 SheepDog-One
SheepDog-One's picture

Theyre not printing anything, doing that WOULD bankrupt all of them totaly just due to paper and ink what theyre doing is moving a decimal point to the right. Means nothing real at all.

Mon, 10/10/2011 - 11:07 | 1757501 mess nonster
mess nonster's picture

If we can get over Marx as a revolutionary, and consider him as a prophet, then his connection to God is unmistakeable. Who'dathunk that Communist China would be part of Capitalism's self-destruction? Marx, that's who!

When the ComMan goes on about the mechanization of capital, pay attention. That mechanizing is powered by fossil fuel, and we have not so much of it left. What happens to an ever-expanding economy (it ever-expands due to usury) when it runs out of gas?

Well, now we know.

Mon, 10/10/2011 - 11:36 | 1757641 Monedas
Monedas's picture

Marx was a bag of shit who couldn't even support his family ! Quit tryin' to lionize the mouse ! Monedas 2011 Comedy Jihad Revisionist Humour

Mon, 10/10/2011 - 15:29 | 1758703 Mr. Magniloquent
Mr. Magniloquent's picture

You seem quite confused Sir. Much like Capitalism in the USA hastened the demise of Communism within the former USSR, Capitalism in China has hastened the demise of Facism within the USA.

Mon, 10/10/2011 - 11:07 | 1757502 rambler6421
rambler6421's picture

hyperinflation Bitchez!

Mon, 10/10/2011 - 11:08 | 1757504 Dick Darlington
Dick Darlington's picture

Everybody talks abt "restoring CONfidence" and how important that is. CONfidence this, CONfidence that, bla bla bla. In other words, blatant manipulation of asset prices by insolvent gubbmints and/or central banks instead of actually trying to solve the big issues behind the loss of CONfidence.

Mon, 10/10/2011 - 11:15 | 1757553 SheepDog-One
SheepDog-One's picture

Yea like we're all fuckin stupid and will be more 'CONfident' if we're shown the DOW up +300. What a clownshow.

Mon, 10/10/2011 - 11:20 | 1757576 MFL8240
MFL8240's picture

The whole country is a fuckin clown show.  Courrption, lieing, cheating, fraud and manipulation replaced hardwork, integrity, discipline and investing.  The new America under Hussien Obama, this is what hope and change means in communist terms.

Mon, 10/10/2011 - 11:32 | 1757631 karzai_luver
karzai_luver's picture

owebama was/is the product of America , he was never change or hope, any that fell for that showed they are just another stupid clown follower.


Those that bring it up as a failure don't understand the country they are in.


Mon, 10/10/2011 - 11:36 | 1757643 Gadfly
Gadfly's picture

Yeah, let's hang it all on Obama.  None of this shit happend before he arrived did it?  Put down the ideological crack pipe.

Mon, 10/10/2011 - 11:08 | 1757506 devo
devo's picture

Even though there will be a disaster down the line,I think you have to go long equities. Adjusted for the ensuing massive global hyper-inflation, they are cheap.

The play is equities + gold/silver + build a bug out location.

Mon, 10/10/2011 - 11:20 | 1757567 SheepDog-One
SheepDog-One's picture

YOU go long equities, nothing stopping you go for it damn sellout sheep I hope you get assraped doing it play the game but say theyre hedged with a bugout location? Go fuck yourself.

Mon, 10/10/2011 - 11:24 | 1757587 devo
devo's picture

Selling out to what, beating inflation? That's all I am looking to do since I have savings to protect.

If printing more money and propping up stocks is how society has decided we're going to beat inflation, you only lose by going against it. It doesn't mean I agree with it, but I am not stupid enough to let cash sit in a bank while the printing presses fire up.

Those who don't get into metal or equities will get killed by hyper-inflation.

There will be a time to get out and exchange equity profits for gold. Probably the middle of next year.

Mon, 10/10/2011 - 11:28 | 1757616 SheepDog-One
SheepDog-One's picture

Go ahead and buy your equities, keep playing THEIR game Mr Survival bugout man...yea 'beat inflation' long stocks while the dollar collapses an equal amount today....yea and dont forget the fees and taxes!

Mon, 10/10/2011 - 11:30 | 1757623 SheepDog-One
SheepDog-One's picture

'Hyperinflation' LOL everyone except the top .05% is totaly bankrupt and without a job! WHO is going to pay for hyperinflation! Huh? What is everyone going to do, take out more loans so they can pay $10 a gallon and $10,000 for avg grocery store trip?? 

Meanwhile, YOU keep buying your stocks and enabling it all to continue there Bear Grylls!

Mon, 10/10/2011 - 11:42 | 1757640 devo
devo's picture

You and I are going to pay for hyper-inflation. You should probably look into "hidden inflation", since we're going to see it in that form this time around.

If you're too lazy to do that, the gist of it is that you'll pay the same/equal money for less product.

Why are you talking like a crazy person? "Sell out"? Are you 12 years old? I'm an adult with assets to protect, so I'll do that as best I can. It is purely logic, nothing more.

Mon, 10/10/2011 - 12:08 | 1757777 Panafrican Funk...
Panafrican Funktron Robot's picture

As a fellow adult with assets to protect (specifically, my family), allow me to echo the sell-out label.  If you actually gave a shit about the future of our kids, you'd be pulling all of your money out of the markets and buying actual assets, not paper "assets".  Being ass raped is one thing, accepting the lube just makes you that much more of a bitch.

Mon, 10/10/2011 - 11:31 | 1757627 devo
devo's picture

You are deranged.

Mon, 10/10/2011 - 11:38 | 1757646 SheepDog-One
SheepDog-One's picture

Yea sure we'll see!

Mon, 10/10/2011 - 11:22 | 1757586 MFL8240
MFL8240's picture

Go long something of value not stocks that are being held up on stimulus money.  Raw materials, food, gold and Silver, forget equities they are junk like the dollar.

Mon, 10/10/2011 - 12:08 | 1757784 devo
devo's picture

I am long gold/silver.

If equities outperform PMs, I will trade in the profits for more gold/silver.

Mon, 10/10/2011 - 11:08 | 1757509 hannah
hannah's picture

the bank is china and china is the bank...? how can it bail itself out...LOL!

Mon, 10/10/2011 - 11:11 | 1757526 Quinvarius
Quinvarius's picture

Up the dosage on your blue pills.

Mon, 10/10/2011 - 11:09 | 1757516 tmosley
tmosley's picture

How exactly are they planning on buying these shares?  Will they pay with freshly printed Yuan, or with some of their stockpiled dollars, of collected taxyuan?

Mon, 10/10/2011 - 11:17 | 1757571 Falcon15
Falcon15's picture

What do you think? The Chinese have printers just like the Americans. Good Yankee Dogs! Keep driving gold price down. China have last laugh. So solly, Cholly. And now back to your regularly scheduled hopium fest, ie the Market...Happy Columbus day!

Mon, 10/10/2011 - 11:21 | 1757585 SheepDog-One
SheepDog-One's picture

'Printers'? LOL dream on! If there had been actual PRINTING going on over the last 3 years, there wouldnt be a single tree left on the planet!

Mon, 10/10/2011 - 11:11 | 1757519 DosZap
DosZap's picture

You know it's kind of  humorous, in a sad way.

Most people bought PM's for various reasons, a lot buy/bought in case if THEIR Gub currencies going to hell, and they could always sell their PM's to /for another countries stable currency.

Then exchange for NEW currency in their country,after the storms were over (having ,hoping, to have preserved their value,and wealth).

I would expect a lot of folks here( when told to get out of the dollar,into other currencies did so,NOW to only see that NONE are ultimately going to be  worth a crap).

So,intended, or unintended, you are now only able to hold PM's for any hope of insurance,or wealth preservation.

I figured there would at least be two or three stable ports of storm left, 2yrs ago, I must admit, I did not see the entire world enter the SHIT STORM we are in, and headed for.(not many did).


This has definitely changed my attitude, and outlook on THIS  life, and all things I once held near and dear, and sacrosanct.

Anyone else feel the same way?. Totally violated, almost like a rape victim would likely feel.

Mon, 10/10/2011 - 11:18 | 1757572 the not so migh...
the not so mighty maximiza's picture

I don't know if it is like rape.  I was told back in 2004 that we were headed for a collapse.  One thing that happened that was not expected was the massive bailouts that followed.  I assumed at the time, bankruptcy then reorganization would occur.  It appears failure will never be purged and the bailouts will continue till they can't be.   The people that caused it will not be held to account and the system will not be purged.   There is no fix if the people that caused the problem are going to try to be the solution.   All they are doing is covering up their tracks.

Mon, 10/10/2011 - 11:23 | 1757595 SheepDog-One
SheepDog-One's picture

The duration of bailouts now only lasts 1 or 2 days at this point. No one believes it...they all may as well be small children with their hands over their eyes believing theyre invisible.

Mon, 10/10/2011 - 17:49 | 1759196 ToddGak
ToddGak's picture

Look at Japan for a's been 20 years and they still haven't purged their bad debt.  Must save face at all costs.

Mon, 10/10/2011 - 12:41 | 1757904 Tao 4 the Show
Tao 4 the Show's picture

Know what you mean, Dos, having also suffered with this. Fortunately, I had a head start realizing things were going to hell around '99 and then putting the rest together over the following 4-5 years. Thanks to a bunch of people like Sinclair, Bonner, Fleckenstein,and even the guy from Marketwatch who got in trouble (forgot his name - Tom ...), as well as many others along with my own historical analysis.

Anyway. I've had longer to watch this than most and one point I've realized is that a deep grinding depression can be a big problem. When TSHTF, you are not going to believe how many people crack up. It's already starting to happen - lots of people i know are acting crazy. Even Berlusconi is crazier than usual. No I'm not kidding, people are beginning to lose it and it will be like a massive avalanche as this all unfolds. Even if the leaders acted with any sense, the demographics, energy issues, etc, etc. would insure that few actually have what they think they have in terms of wealth and security.

Consider yourself fortunate that you have had and maybe have a (precious) little more time to get your head together. Keeping it together will be one the biggest and most important challenges.

Mon, 10/10/2011 - 11:11 | 1757525 Monedas
Monedas's picture

Why can't the World's 50 most fervent Keynes devotees put out a newsletter and trumpet the miracles of Keynesian Socialism on a daily basis so we the unwashed can marvel and learn ! Monedas 2011 Can anyone recommend a good Keynesian blog ?

Mon, 10/10/2011 - 11:11 | 1757528 TradingJoe
TradingJoe's picture

Algos will brake this market since their sequences are not programmable! What it means is that in a sell off, the amount of bogus trades will become exponential to the size of the markets thus "trading on empty"! Its not from me but a friend who is a code freak! Lets see if he's right!

Other then that, once at 1220 we'll reverse again and hit lower then 1074, by how much I dont know but then I suspect the next leg up into year end will start! "Earnings" will be sold, I guess!

Mon, 10/10/2011 - 11:23 | 1757597 adr
adr's picture

We've seen this play before. The World on the brink of collapse, beaten down stocks, low expectations. Then all of a sudden everything is grand, the economy isn't as bad as everyone thought and we get a 90% rally in the stock market. It didn't matter that the real economy actually got worse.

TPTB still believe that as long as the stock market goes up the economy is saved. 

Fucking Netflix decided to try a New Coke strategy and the stock market loves it. Back to $250 a share in short order. This will probably be the most bullshitted earnings season in history based on the back of inventoy stuffing and booking sales before they ever occur. The Ponzi must be saved before  the 2012 election season starts. 

Mon, 10/10/2011 - 11:11 | 1757532 adr
adr's picture

So the employment based consumption economy has been completely replaced by a credit based monetary supply economy.

 guess we can all quit our jobs and live off credit. I mean if they print trillions why can't we just expect money to shoot out of ATMs. 

What is going to happen when every country on Earth decides they want to be the rich one and someone else should have to do the work to supply everyone with cheap goods?

The reality is every country is broke and the global coupling of the economy is a dismal failure. The problem is the coupling has been very good for making paper valuable and making those who never worked a day in their life very rich.

Mon, 10/10/2011 - 11:16 | 1757563 Kina
Kina's picture

Shit now well and truly in the fan, markets running across thin air.


Global economy entering boosting in 3% strides. Everybody knows they are really really fucked, but as soon as they stop pushing up it plummets...they got Satan by the tail and can't let go. Take your finger off the print button and Satan will bite your balls off.

Mon, 10/10/2011 - 11:20 | 1757580 devo
devo's picture

I'm not sure if anyone will pay the piper at the end of the day. I think it'll wind up going like this: Government seizes all precious metals, maybe even other assets, and reprices them an exorbitent rate--basically creating value (rather than money) out of thin air. Then they'll sell them to an emerging market, forming the next bubble. It's equal to the idea they had earlier this year to mint a coin and claim its value. That's the only way out of this mess, so they will do it.


Mon, 10/10/2011 - 11:20 | 1757581 robertocarlos
robertocarlos's picture

I almost warned my family the world was ending tomorrow (today) but it was Thanksgiving dinner so I didn't want to ruin the day.

Mon, 10/10/2011 - 11:25 | 1757583 falak pema
falak pema's picture

total world wide taker over of financial institutions by the political class prior to melt down spiral...the writing on the wall of capitalist demise as we understand it...

Where have all the oligarchs gone...transmuted into bureaucrats...long time standing...can't tell a banking shill from a government apparatchik...what a sleight of hand.

Mon, 10/10/2011 - 11:22 | 1757588 John Law Lives
John Law Lives's picture

Here is some amusing reading.  Check out the steady downward revisions re. Alcoa's EPS prior to their EPS announcement set for tomorrow (October 11, 2011) when earnings season begins:

Current Estimate =  0.22 
7 Days Ago         =  0.27 
30 Days Ago       =  0.29 
60 Days Ago       =  0.30 
90 Days Ago       =  0.34

Gee, the bar has been lowered quite a bit in the past 90 days.  Look for bold headlines if Aloca beats 0.22 tomorrow.

Wall Street = Whoremongers


Mon, 10/10/2011 - 11:26 | 1757604 SheepDog-One
SheepDog-One's picture

Getting almost impossible to bury the high jump bar low enough in a hole for earnings to hop over it. What a joke.

Mon, 10/10/2011 - 11:27 | 1757612 adr
adr's picture

That has been going on with every stock during every earnings season for the past few years. The only thing that matters is beating the latest estimate.

The market is beyond rigged. Somehow the game of lowered expectations still works.

Mon, 10/10/2011 - 11:57 | 1757667 John Law Lives
John Law Lives's picture

"The market is beyond rigged."

No doubt.


"Somehow the game of lowered expectations still works."

People don't seem to be getting any smarter.  Watching NFL and Dancing with the Stars and American Idol leaves the masses diverted.  Bread and circuses whilst Wall Street and The Bernank rip us all off.

Mon, 10/10/2011 - 11:23 | 1757589 whoisjohngalt11
whoisjohngalt11's picture

Used to be us boys went outback behind the barn to compare whos biggest but Goberments doing out in the open right ??

(after all that only thing that matters now is whose stock market is the biggest. )

Mon, 10/10/2011 - 11:23 | 1757591 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

How's everyone's long dollar trade going?  EUR/USD $1.00?  Yeah?  LOL

All falls down!

Mon, 10/10/2011 - 11:44 | 1757609 SheepDog-One
SheepDog-One's picture

While all the retards marvel at how stock indexes are up, no one has noticed the USD down over 1.3%? 

Maybe they have a point, they can just raise stock indexes and people wont care in fact creates 'CONfidence' even though theyre bankrupt.

Mon, 10/10/2011 - 11:49 | 1757687 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Hey Sheep!  Yeah, what the fuck do you and I know?

The EUR/USD trade is so one sided that I know housewives that have their 401k in ETrade that are shorting the Euro.

Remember Sun Tzu. bitchez!  When you are strong, appear weak.  In fact, everybody, let's play a game to demonstrate how fiat trades relative to real assets and how the end game will come in terms of oil's price, not anything that you read in the news, because the truth is out there, but just hard to see...remember, the revolution will not be televised...and neither will the truth....

Which continent is connected by land to the largest oil producing continent? 


Times up!  The answer:

Europe is connected to Asia, which holds the worlds largest oil supply, meaning that pipelines can easily ship oil to the various states of Europe, whereas America must ship the oil by sea, which is costly and lowers the EROEI on the oil, meaning a higher price for Americans, thusly lowering the value of the dollar because the dollar and oil have a 1:1 inverse relationship, meaning the dollar is in a death spiral in terms of value.

Thanks for playing, you win a "What the fuck do I know?" T-shirt as your consolidation prize.

Mon, 10/10/2011 - 12:20 | 1757831 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, it's funny to me this idea that "omfg, the EUR might not even exist down the road" has kept the value of the EUR so artificially surpressed, as if, in the situation where the individual member states revert back to their respective currencies, the USD won't be substantially less valuable vs. the "basket 'o currencies" when the EUR in the basket is replaced with what would likely be widely held currencies of strength, such as the "douchemark" (sorry, the 13 year old boy inside of me will never truly die).  

Mon, 10/10/2011 - 13:22 | 1758082 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

People seem to forget the Mark was 2:1 vs the dollar when the dollar had strength.  I agree completely, no more Euro and the USD takes a hit.

But most likely, all fiat continues to devalue slowly....slowly...until...poof!  It's all gone!

It's Magic

Mon, 10/10/2011 - 11:26 | 1757610 whoisjohngalt11
whoisjohngalt11's picture

Meanwhile Obuma outstanding in his field all alone... good New York Post article,,,,

Mon, 10/10/2011 - 11:27 | 1757614 Manipulism
Manipulism's picture

Whats going on with Krugman?

Someone washed his brain?


Mon, 10/10/2011 - 11:29 | 1757619 MiningJunkie
MiningJunkie's picture

Just blew out the cheap calls I bought a week ago. Holding high-quality precious metals company shares only plus physical of course...NEVER underestimate the replacement power of stocks within a Zimbabwe-esque money-printing orgy.

Mon, 10/10/2011 - 11:30 | 1757620 Schmuck Raker
Schmuck Raker's picture

There's a bidder for BAC's assets?

Mon, 10/10/2011 - 11:39 | 1757650 Debtless
Debtless's picture

Wasn't the NYSE supposed to be hacked today? How'd that go?

Mon, 10/10/2011 - 11:43 | 1757663 SheepDog-One
SheepDog-One's picture

For anyone paying attention I put up links here 7 days ago saying that was fake...and it was not today but for the 11th at 3:15 PM too.

Mon, 10/10/2011 - 11:46 | 1757674 Debtless
Debtless's picture

Oh. Thx. So tomorrow afternoon it's on like donkey kong then?

Mon, 10/10/2011 - 12:02 | 1757755 Dapper Dan
Dapper Dan's picture

What makes you think it wasn't?

up 2% on hope and a pledge.  (update @ 11:00am cdt ^ 3%)

NEW YORK (CNNMoney) -- U.S. stocks rallied more than 2% early Monday, led by bank shares, as investors welcomed a pledge from European leaders to unveil a plan to solve the European debt crisis by the end of the month.



Mon, 10/10/2011 - 11:40 | 1757652 LookingWithAmazement
LookingWithAmazement's picture

China bailing out its banks will restore confidence and lead to a massive relief rally on the markets there. Just like in Europe, now Dexia is saved. Let alone if the nucleair option is invoked by the ECB: the markets will skyrocket.

Mon, 10/10/2011 - 11:41 | 1757656 SheepDog-One
SheepDog-One's picture

The euphoria party for this latest round of nonsense lasts maybe until close today, because people are already asking 'OK so whats next then'?

Mon, 10/10/2011 - 11:45 | 1757671 Monedas
Monedas's picture

Keynes died in 1946 and never had to defend what we've witnessed since he died ! Marx was even more clueless ! Direct your questions to Robert Reich....he still believes in both those idiots ! Monedas 2011 Fiat's going down....don't fret the day by day details !

Mon, 10/10/2011 - 11:53 | 1757703 marcusfenix
marcusfenix's picture

so what happens when all this QE, bank recapping, money creation, stimulus ponzi govt manipulation hits the bricks?

what happens when it fails, all around the world all at once?

which it will, it already has twice here in the US, it is as if it is designed to fail... intentionally

if you step back look at the whole picture you can see the endgame unfolding, the political circus gridlock in the US and EU

the massive amounts of public debt will leave governments paralyzed, ineffective and unable to cope when the plug is pulled

chaos will ensue and people will demand the "somebody do something" and will give up anything to ensure some measure of stability and security

it has been said that "given the right crises the people will not just accept the new world order, they will demand it"

what better way to cow populations across multiple countries and continents then to take away, to destroy the very basis of life as they know it?

a global economic 9/11 would accomplish this, the PTB's would then be free to step in create order out of chaos

look at all we as American's have given up already in the name of safety, security and economic stability and we have largely accepted it

it wouldn't be all that hard to prod people to take those last few steps

in my humble opinion that is what we are all being set up for right now...


Mon, 10/10/2011 - 11:57 | 1757724 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...what a clusterfuck...square and intend staying that way

Mon, 10/10/2011 - 11:58 | 1757728 adr
adr's picture

The talking heads are really going at it today. It is becoming impossible to listen anymore. I can't even call them talking heads anymore they are defecating asses. To call someone a talking head means there must be a brain in there somewhere and there are actual words coming out.

A defecating ass is a far more accurate description. ou no longer even need to use the full of shit modifier when describing a talking head.

Mon, 10/10/2011 - 11:58 | 1757729 Kina
Kina's picture

In the end to simply the process each bank will be given its own printing press. Then the problem will be solved for infinity.



Mon, 10/10/2011 - 11:59 | 1757741 SmoothCoolSmoke
SmoothCoolSmoke's picture

Went all cash at close 9/26.  Have been judiciously jumping back in SPXU and FXP ever since.  Was feeling quite good about it all.  But today was a real kickin the nutz.  Added more -3x this AM, but if this suspension of reality continues much longer..................yikes!

Mon, 10/10/2011 - 12:05 | 1757765 Saxxon
Saxxon's picture

It's too early to short; another shoe is going to drop.  They want the S&P out of its trading box and they are going to get it.  Stay thy hand.

Mon, 10/10/2011 - 12:30 | 1757859 reader2010
reader2010's picture

This absolutely confirms the emperor has no clothes.  What about popping up all those money-losing projects that central/local governments enjoyed for their own pockets? Shit. this fucking orgy is not going to end just in tears if you look at it from a Chinese historical perspective. 

Mon, 10/10/2011 - 13:08 | 1758022 devo
devo's picture

I tried to hit the "Submit order" button but couldn't do it.

Going to buy more silver instead.

Tue, 10/11/2011 - 14:54 | 1761968 johnjb32
johnjb32's picture

Every bailout is more debt that cannot possibly be repaid. And why isn't the rest of the world noticing how nonsensical everything is? I think much of it is, and the rest have just given up and surrendering to this last part of a ride, not even reaching for a steering wheel that seems connected to nothing at all. -- Michael C. Ruppert

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