Sheer Mirror Image Insanity: S&P Hits New Multi Year Highs As 10 Year Bond Slides Below 1.90%

Tyler Durden's picture


There no longer are any words left to explain what is going on in this centrally planned market (technically "enantiomeric" may be a word, but nobody would get it). It is sheer and utter bipolar insanity, when the S&P can hit multi-year highs even as the 10 year drops below 1.90%, something which in the pre-New Normal would be completely impossible. We wish luck to anyone "trading" a market (read trading alongside Central Bank X, with momentum escalated courtesy of Algo Y, regulated by the SEC no less) which is now pricing in extreme deflation and inflation at the same time, or, simply said, much more QE from the Chairman, record EUR Brent be damned. Oh, and with crude (in USD) back on track to surpass $110, we can't wait for the Department of Truth to tell us how February consumer confidence is literally off the charts.

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Tue, 02/28/2012 - 11:50 | 2203984 DeadFred
DeadFred's picture

I'm sure this is sustainable, right?

Tue, 02/28/2012 - 11:52 | 2203998 MaggieL
MaggieL's picture

Projections by XKCD indicate "sustainable" is not sustainable.

Tue, 02/28/2012 - 12:02 | 2204048 metastar
metastar's picture


Tue, 02/28/2012 - 12:03 | 2204057 metastar
metastar's picture

It looks like the ECG of a heart patient going into fibrillation.

Tue, 02/28/2012 - 12:07 | 2204078 hedgeless_horseman
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"Contradictions do not exist. Whenever you think you are facing a contradiction, check your premises. You will find that one of them is wrong."

-Ayn Rand


Tue, 02/28/2012 - 12:10 | 2204098 BW
BW's picture

Treasuries will not decline until we default, that's the plan.

Tue, 02/28/2012 - 12:13 | 2204118 Pladizow
Pladizow's picture

Ask and you shall recieve:

Tue, 02/28/2012 - 12:16 | 2204137 BW
BW's picture


Tue, 02/28/2012 - 12:25 | 2204184 The Big Ching-aso
The Big Ching-aso's picture



MOBS (Ministry of Bull Shit) will be with us shortly for an important message to the peasants.

Tue, 02/28/2012 - 16:55 | 2205523 economics1996
economics1996's picture

The Fed owns 92% of the long term debt.  The yield would be 4% without the Fed.

Tue, 02/28/2012 - 16:56 | 2205532 tmosley
tmosley's picture

I think you dropped a zero somewhere.

Tue, 02/28/2012 - 19:24 | 2206126 NakedSwanTrading
NakedSwanTrading's picture

for 30 yr futures, short to intermediate term resistance zone is 144 30/32 to 147 17/32.


Longer term:

Tue, 02/28/2012 - 12:17 | 2204143 schismjism
schismjism's picture

peak oil and the great depression at the same tiime bitchez.....

Tue, 02/28/2012 - 12:26 | 2204188 NEOSERF
NEOSERF's picture

More like Dow 15,000 and Great Depression at the same time...because of course a Depression will clean out the problems allowing us to start unrestrained spending once again...

Tue, 02/28/2012 - 12:14 | 2204127 max2205
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Operation Fix (is in)

Tue, 02/28/2012 - 12:11 | 2204106 tmosley
tmosley's picture

Sustainable sustainable.  Sustainable, sustainable sustainable sustainable SUSTAINABLE sustainable.

Malkovich malkovich.

Tue, 02/28/2012 - 13:19 | 2204430 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Developers developers developers DEVELOPERS!!!

Tue, 02/28/2012 - 16:47 | 2205468 css1971
css1971's picture

Isn't there a poem in chinese which just the repetition of the same word over and over again. Only the intonation changes the meaning.


Tue, 02/28/2012 - 11:53 | 2204008 slaughterer
slaughterer's picture

 "Algo Y, regulated by the SEC no less"

Uh, we have all been assuming for a long time that ZH was taking over all market regulation across the planet from now on.  The "wanking" SEC has to follow up on some questionable video downloads on

Tue, 02/28/2012 - 12:02 | 2204055 cocoablini
cocoablini's picture

The bond, real estate and stock market is the biggest heist job in history. The government saves the banks with free money from the POMO bond to cash pump- banks buy everything not nailed down- FED and politburo put a floor on asset values- banks recapitalize and pretend their assets, debt holdings have "dollar value."
All through taxpayer debt,wage and indentured servency obligations- courtesy of our representation in "democracy."
Seriously, imagine if banks could not only be saved, but could use this depression to "own assets, debt and the future " of the country. Everyone thinking they can get a foot in the door like JP Morgan did in the 30's.
Asset values and commodities should be collapsing in price, but instead the control economy places hard floors on all prices except non-government labor costs. Oil price ramping encouraging price increases across all manufacturing and helping to create cost inflation and making these idiot economic models fit economist world views.

Tue, 02/28/2012 - 11:55 | 2204019 Jay Gould Esq.
Jay Gould Esq.'s picture

AAPL printed a new 52-week high earlier this morning, and James Altucher -- also this morning -- told the estimable Hery Blodget that the Dow is going to 20,000 within one year. Simply buy the dip -- and if there is none, buy anything. 

Tue, 02/28/2012 - 11:58 | 2204028 spiral_eyes
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I thought Dow was going to 36,000.

Tue, 02/28/2012 - 12:30 | 2204209 Randall Cabot
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In two years.

Tue, 02/28/2012 - 11:58 | 2204031 Spastica Rex
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For a select group.

Tue, 02/28/2012 - 12:08 | 2204091 whatsinaname
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There is one simple explanation - LEAP YEAR. Everybody leaps into the Waterfall !!! No matter how deep the expected plunge is.

Tue, 02/28/2012 - 12:27 | 2204194 NEOSERF
NEOSERF's picture

Expect the leap day not to be factored into gov stats for February which will show miraculous YOY gains....

Tue, 02/28/2012 - 12:36 | 2204241 Rainman
Rainman's picture

Tomorrow's Mrs. Rainman's birthday...she turns 14....acts her age too.

Tue, 02/28/2012 - 12:50 | 2204305 francis_sawyer
francis_sawyer's picture

what if your dog were born on 2/29...?

You'd need a calculator to figure out how old he was...


Happy b-day to Mrs. Rainman...


Tue, 02/28/2012 - 12:15 | 2204128 Theta_Burn
Theta_Burn's picture

Just today, on this very board,some were calling Bill Gross's vision of the future flawed....

Tue, 02/28/2012 - 12:16 | 2204136 Theta_Burn
Theta_Burn's picture

It looks kinda like a venus fly trap

Tue, 02/28/2012 - 12:19 | 2204156 midtowng
midtowng's picture

It's extreme asset inflation from a world drenched in liquidity.

Tue, 02/28/2012 - 11:50 | 2203988 RobotTrader
RobotTrader's picture

"Zero Cost" borrowing and unlimited margin ability is fueling fantastic bubbles everywhere.


New 52-week highs in Autozone, Pier 1 Imports, Under Armor, Cabela's, and assorted other "cult" retail stocks.

Tue, 02/28/2012 - 11:51 | 2203994 EscapeKey
EscapeKey's picture

...and THIS time, these bubbles won't pop!

This time is different!

Oh, but everyone LOOK AT THAT BUBBLE IN PRECIOUS METALS!!!eleventyone1

Tue, 02/28/2012 - 11:53 | 2204007 spiral_eyes
spiral_eyes's picture

This time will always be different.

Tue, 02/28/2012 - 11:55 | 2204018 prains
prains's picture


Tue, 02/28/2012 - 19:28 | 2204278 DavidC
DavidC's picture

Apple's movement has gone parabolic recently, bubble behaviour. And Apple's been the main driver in the NASDAQ movement - maybe that's what Benny and Timmy are concentrating on buying.


Tue, 02/28/2012 - 12:53 | 2203997 TruthInSunshine
TruthInSunshine's picture

"fueling fantastic bubbles everywhere"


Shit for brains unintentionally got one right! He acknowledged through sheer luck that it's a bubble, and even retards know bubbles pop.

Let us know if you make it out just in the nick of time again, Robotard, for the 684th pivot in the last 14 years.

Tue, 02/28/2012 - 11:57 | 2204024 slaughterer
slaughterer's picture

sorry robo, your rally is marked for extinction soon enough.  

Tue, 02/28/2012 - 12:05 | 2204069 cocoablini
cocoablini's picture

Why? The main holders of stock(primaries) are not allowed to sell bonds or stocks. They are holding- that's part of the agreement with the FED bailouts. Buy,buy,buy- we will hold the prices high.

Tue, 02/28/2012 - 12:12 | 2204114 resurger
resurger's picture


They have disabled the Bid Button on all the stocks.

you can only buy VIX & it's derivatives.

Tue, 02/28/2012 - 11:59 | 2204039 Mr Lennon Hendrix
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There is one group that is taking it hard though:  the older generation.

All of their investments are losers:  CDs, bank accounts, SSTF, inflation is killing the value of old people's wealth.  These people who couldn't stomach another downturn in stocks and who had been told their whole lives gold is a barberic relic, are eating cat food and not leaving their homes except to walk around the block once a day.

Yet their kids are coming over with cookies more than ever, because they have been unemployed for two years and they know ma and pa have their life insurance paid up.

Tue, 02/28/2012 - 12:04 | 2204060 TruthInSunshine
TruthInSunshine's picture

Yes, but this class you speak of doesn't have their savings tied up in an asset class that is subject to a 20% to 50% correction unfolding rather quickly, of the kind that renders stop orders quite ineffectual.

In other words, they'd wisely rather not bet it on black 10 spins in a row, given the inevitable result.

In the wake of such incidents, they'll look positively brilliant.

History guarantees this.

Tue, 02/28/2012 - 12:11 | 2204104 Mr Lennon Hendrix
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Because they invested in worthless USTs, worthless CDs, and worthless fiat?  Yeah right.

Tue, 02/28/2012 - 12:18 | 2204148 TruthInSunshine
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When and not if the next inevitable big correction suddenly unfolds, take a long peek at who is relatively far better off.

If you want to say those who are maintaining discipline and remaining liquid in an obviously warped risk market appear to be suffering for it now, I'll agree, and this is always the case in bubble times (I'd argue we have a bigger equity bubble blowing right now than we had in 2007, but that's for another time). Check in on them, and see how they appear vs. those investing in equities with their own money after the bubble bursts.

It's all relative. Bernanke's put is no more guaranteed than Greenspan's was in 1999, or Bernanke's last one was in 2007.

Tue, 02/28/2012 - 12:22 | 2204170 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What type of pullback do you want?  You want stocks to pull back to DJ 7k?  So you think the dollar will gain value, after the world has created tens of trillions of dollars out of thin air?  Sorry mate, we are heading into a hyperinflation of the Fiat Ponzi, where there are no winners if you are playing the game.

Tue, 02/28/2012 - 13:01 | 2204246 TruthInSunshine
TruthInSunshine's picture

Well, aside from the real hedge that is a barbaric relic that central banks hold for reasons of tradition and that isn't edible, I never said I wanted stocks to pull back (I only said it's inevitable) nor do I know how big a correction we're going to have, but what do you think is going to be the least worst dog in the show if you are insinuating that an equity market correction of the fast & quite nasty type is NOT coming?

Or have we reached what looks to be a "permanently high plateau" for real, at long last?

This is why Jeremy Siegel isn't only wrong (given that he mutilates data on equity returns historically, and doesn't even properly adjust for index rejiggering, incredibly inefficient tax consequences of 'equity investing' [for almost all participants] and survivorship bias), but dangerous. Equities are the biggest scam that fleeces the largest number of participants more frequently than any other asset class (including fiatski toilet paper).

Equity markets become illiquid traps during true corrections. An always present market maker is a myth, and you only have to look back to 2008 to see that, when stocks were selling off at literally 50% below stop loss order levels on certain days.

Equity markets are exactly like casinos. In the long run, the house always wins. For every Apple, there are 10 GMs. For every Buffett, there are 100,000 Lenny Dykstras.

Tue, 02/28/2012 - 13:04 | 2204379 Mr Lennon Hendrix
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What is the value of a dollar:  It is whatever we want it to be, until it has no perceieved value at all, because it has no value.

What are the PTB, these Scull and Bones Masters of the Universe trying to manifest?  A New World Order.  They are bringing in the destruction of the Fiat Ponzi.  Some know the drill, some are wishful economists.  Bernanke has to be in the know.  He and the other Masters will hyperinflate the currency until you do not recognize the world you live in.

I understand you contemp of equity.  But what about bonds?  Is that not a bubble?  And considering the whole game is played with fiat?  The bubble lies at the crux of the system.  The crux is fiat.  When fiat breaks, there will be no place to stay.

Tue, 02/28/2012 - 13:45 | 2204434 TruthInSunshine
TruthInSunshine's picture

Everything you just described is denominated in the world's reserve currency.

If you want to argue that the USD will cease being so, that's a different argument.

Am I fan of the USD? Hardly. Do I think it's value is too high relative to most other fiat currencies? Hardly. Is the GBP, the euro, the AUD a better value? Hardly.

Bonds and equities are both priced in fiat. So are commodities.

As I mentioned above, the contemptable barbaric relic that is inedible but so happened to maintain more a semblance of purchasing power for hundreds of years now and is held by central banks due to 'tradition' is not in our discussion (that I know of), and allowing for it to be accounted for changes all dynamics, but I am fairly confident that there'd be quite a show of governmental interventionism should citizens of the the world's nation-states lose faith in their currencies en masse and try to circumvent the fractional reserve banking system (which allows for the tracking, tabbing and extraction of the debt that keeps the very fractional reserve banking-dependant economy alive).

I believe Rickards and many others are correct in claiming the great fiat debasement race is on, so will the winners of that race be the losers, or.....?

It's all relative, and relativity is going to show great complexities.

Tue, 02/28/2012 - 14:23 | 2204653 eddiebe
eddiebe's picture

TIS, I respectfully disagree. The bubble is in fiat and in Government bonds and notes. Does not mean stocks are not overvalued, but then it's all relative, and of course subject to massive manipulation in all its forms.

Tue, 02/28/2012 - 14:46 | 2204803 TruthInSunshine
TruthInSunshine's picture

If there is a bubble in fiat, then there necessarily has to be a bubble in anything measured by that same fiat.

Bonds are in a bubble. But equities behave far differently and are far more volatile in a sell-off (especially given the leverage baked into equity markets).

There is no guaranteed 'recoupment' period for stocks upon a maturity date.

Unless one is literally arguing that the U.S. will de jure default on its bonds, losses in equities can run to 100% in a relatively short period of time (actually, with margin, losses can run multitudes higher than 100%).

I don't like treasuries, but stocks pose a far riskier option on a relative basis. There won't even be an equity market in the U.S. along any conventional norms if the U.S. Government were to de jure default on its debt.

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