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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
hedgeless_horseman's picture




"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
max2205's picture

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
spiral_eyes's picture

I thought Dow was going to 36,000.

Tue, 02/28/2012 - 12:30 | 2204209 Randall Cabot
Randall Cabot's picture

In two years.

Tue, 02/28/2012 - 11:58 | 2204031 Spastica Rex
Spastica Rex's picture

For a select group.

Tue, 02/28/2012 - 12:08 | 2204091 whatsinaname
whatsinaname's picture

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
Mr Lennon Hendrix's picture

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
Mr Lennon Hendrix's picture

Because they invested in worthless USTs, worthless CDs, and worthless fiat?  Yeah right.

Tue, 02/28/2012 - 12:18 | 2204148 TruthInSunshine
TruthInSunshine's picture

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
Mr Lennon Hendrix's picture

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.

Tue, 02/28/2012 - 16:12 | 2205222 eddiebe
eddiebe's picture

TIS, agreed, equities could have a tremendous sell off, and your logic is right but look at how they rallied after the last super dip. I doubt that the U.S. will ever default, they will just inflate their debt away. Then there is that whole possible induced panic issue. Why wouldn't the banksters cause  another big panic in equities, so they can grab more for themselves? But then the bond market has been in a 30 year bull, and they could just as easily start draining off value there.

 Since there is obviously a bubble in fiat, and it more than likely will cause massive inflation as central banks really have no other option but to keep printing, then anything that has actual value will act as an inflation hedge. Since fiat along with notes and bonds are both government issue, as confidence is lost in fiat, bonds will become a hot potato as well, because governments will be rightly perceived as quasi defaulting through inflation and money will look to value that is still somewhat liquid. Along with that ( on my part perceived logic ) equities will more than likely be propped up by the PPT, because if too many companies actually fail it will be even worse than if big banks fail, because in that scenario nothing works or moves anymore. All that created money has to go somewhere, and the greatest corporations in the world will still hold value and produce goods.

 I like resource rich companies besides the metals and energy and grains along with cash for those surprise mega dips.

Best of fortune to you, I enjoy your posts.



Tue, 02/28/2012 - 16:18 | 2205314 TruthInSunshine
TruthInSunshine's picture

"and the greatest corporations in the world will still hold value and produce goods."


The problems betting on this thesis are that the size of  their customer bases ready, willing and able to buy their products is going to shrink dramatically at the same time that their costs of production explodes.

Tue, 02/28/2012 - 12:31 | 2204212 scatterbrains
scatterbrains's picture

no fuss we have death panels for them.

Tue, 02/28/2012 - 12:05 | 2204068 slaughterer
slaughterer's picture

+1  Mr. LH  and beautifully written

Tue, 02/28/2012 - 12:06 | 2204077 Winston Churchill
Winston Churchill's picture

Uncle sam is going to end up with those insolvent pension funds

and guess who will end up managing them ?

Rape me once,rape me twice

Tue, 02/28/2012 - 12:04 | 2204067 AccreditedEYE
AccreditedEYE's picture

Dude, where the hell have ya been?

Tue, 02/28/2012 - 12:13 | 2204122 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Riding the bus to and from the Staples Center where Robo works as a cotton candy vendor at Lakers and Clippers games.

Tue, 02/28/2012 - 12:56 | 2204337 francis_sawyer
francis_sawyer's picture

Is that what he's doing?... I thought he was one of the cheerleaders (the one at the bottom of the pyramid)...

Tue, 02/28/2012 - 15:42 | 2205140 AccreditedEYE
AccreditedEYE's picture


Tue, 02/28/2012 - 11:51 | 2203991 Dr. Engali
Dr. Engali's picture

The secret is to just go long everything. As long as uncle Ben is backstopping everything it's an easy trade.

Tue, 02/28/2012 - 11:53 | 2204003 EscapeKey
EscapeKey's picture

...except, of course, until it comes down to paying for your fuel and groceries. But it's ok, the BLS will just downwards revise their weights in the CPI calculations.

Tue, 02/28/2012 - 11:56 | 2204020 Dr. Engali
Dr. Engali's picture

That's okay. I went long groceries and such long ago. I'm deep in the money. Now if I could sell some out of the money calls against them I could get them generating some income.

Tue, 02/28/2012 - 12:01 | 2204043 EscapeKey
EscapeKey's picture

Yes, but you (and the rest reading ZH) are the exception. J6P will simply see prices continuously increase, and be brainwashed into believing it's caused by the evil speculators (but not ask the question who arms these with the liquidity).

Tue, 02/28/2012 - 11:54 | 2204009 john39
john39's picture

the problem is, they get the memo before the planned drop, the rest of us don't.

Tue, 02/28/2012 - 11:54 | 2204013 GeneMarchbanks
GeneMarchbanks's picture

So you're eating cake and also having it in front of you. Every American's fantasy...

Tue, 02/28/2012 - 11:56 | 2204017 TruthInSunshine
TruthInSunshine's picture

"The secret is to go long everything"[, given the Federal Reserve put, just like in times past, but get out in time by threading the needle before the sudden implosion occurs that always takes down bubbles, given what will be the failure of the Federal Reserve put, just like in times past.]



Tue, 02/28/2012 - 11:59 | 2204042 Dr. Engali
Dr. Engali's picture

The question is which bubble will pop first. How much take fed take down on a bond auction does it take for the dollar bubble to pop?

Tue, 02/28/2012 - 12:28 | 2204185 Ghordius
Ghordius's picture

ohh, a smart question! stop! my head hurts!

I would guess the FED could go over to 100% monetization for months until something happens...

as long as you can get oil for dollars, dollars are good as oil

Tue, 02/28/2012 - 13:30 | 2204465 TruthInSunshine
TruthInSunshine's picture

If bonds pop first, the equity market is going to do a swan dive for the ages shortly thereafter anyways, given the necessary implications for interest rates and inflation.

Tue, 02/28/2012 - 11:57 | 2204030 slaughterer
slaughterer's picture


Tue, 02/28/2012 - 12:27 | 2204164 slewie the pi-rat
slewie the pi-rat's picture

hey, dr.E!

here we are at the "semantics" of QE.  again

tyler (paste): or, simply said, much more QE from the Chairman

since QE= operationTwist and since benzelbub has said he will continue this particular QE for another 20 months (til end of 2013)  tyler is by definition, correct

for you to interpret this as "uncle Ben is backstopping everything"?  i dunno, doc!  other centralBanksters are doin way more printing than the FED right now, so i would say: centalBanksters are backstopping everything;   uncleBen is backstopping the Ts, tho, for SURE!

b/c we have a more co-ordinated cB appraoch to the global credit bubble and other problems, we know that following cBs are printing hugely:  england, swiizerland (to print to support the ECB), japan, [and china, with many head fakes]

the FED printed to the sky last year, and switched tactics last summer, according to public pronouncements

this is what tyler was pointing to in the silver article, earlier~~that "investors" are being "rewarded" with nominal gains in prices of assets held, reflected in fiat, which is, unfortunately, being debased, at the same time

ergo, some reason that being long gold and silver coinage will be where "nominal gains surpass monetary inflation" = real gains

recall the many charts showing stocks losing value when priced in gold&silver, and get real (money, that is)!

Tue, 02/28/2012 - 12:34 | 2204233 Dr. Engali
Dr. Engali's picture

Hey Slewie


I was being sarcastic. I'm a sprecious metal investor. I pick my spots in the market then take my gains and roll them over into PMs.

Wed, 02/29/2012 - 04:06 | 2207080 slewie the pi-rat
slewie the pi-rat's picture

dr_E:  you are full0'bull-fuking-SHIT

The secret is to just go long everything. As long as uncle Ben is backstopping everything it's an easy trade.

what are you gonna "roll over"?  groceries and stuff?  what a crock!  L0L!!!

Tue, 02/28/2012 - 11:56 | 2204000 spiral_eyes
spiral_eyes's picture

"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."


With central banks promising to buy everything forever of course the prices of everything are rising. It's all about getting assets out of the market to artificially constrain supply to support price levels.

Misallocation of capital, bitches!


Tue, 02/28/2012 - 11:52 | 2204001 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bernanke is so hot right now.

Tue, 02/28/2012 - 11:58 | 2204035 slaughterer
slaughterer's picture

I know a girl who did him at Bilderberg.

Tue, 02/28/2012 - 12:01 | 2204047 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Tell me he had her wear a strap on....

Wait no don't tell me.

Tue, 02/28/2012 - 12:07 | 2204082 slaughterer
slaughterer's picture

Think "helicopter" ...

Tue, 02/28/2012 - 12:12 | 2204115 Biosci
Biosci's picture


Tue, 02/28/2012 - 12:30 | 2204205 slewie the pi-rat
slewie the pi-rat's picture

she wore the strap-on, not him!

Tue, 02/28/2012 - 12:18 | 2204146 WoodMizer
WoodMizer's picture

I hope, for her sake, she wore the 3" rubber.

Tue, 02/28/2012 - 12:02 | 2204056 Biosci
Biosci's picture

He's the original model-slash-banker.

Tue, 02/28/2012 - 12:11 | 2204105 kito
kito's picture

why is everyone complaining? ben and obama have created utopia. everybody gets a present for year round christmas!!! bond funds are smoking, equities on fire....all of those pensioners, 401kers/ira-ers are thrilled, gold and silver bugs have big smiles, homeowners underwater get money to sell their homes, the poor continue to get free housing, healthcare, food stamps, cell phones........EVERYBODY is happy!! enjoy the day!!!......................whats that?.......there is a bill coming due to for all of this happiness??? pshaaawwww, let our grandkids worry about it........

Tue, 02/28/2012 - 12:29 | 2204202 Abitdodgie
Abitdodgie's picture

We are all makeing money off gold and silver the Government is giving money away in the right areas, eg BTFD, so why would we want anything to change. All they have to do is keep doing what they are doing and I for one will never have to work another day in my life , maybe buy another house in BFE take vacations ,THANKS BEN.

Tue, 02/28/2012 - 12:41 | 2204260 kito
kito's picture

thanks to ben, everybody is an investment genius!!! allocate to one area, two, all....diversify, dont matter, youre a winner regardless!!!!!..................

really, it up.....take out another line of credit!!! youre feeling good!!! your sense of wealth is empowering you to spend, spend, spend!!!! be an AMERICAN!!! be proud, BUY!!!!!! do it for our boys heading into iran!!!!!

Tue, 02/28/2012 - 16:32 | 2205390 css1971
css1971's picture

And to think you used to be a believer.

Tue, 02/28/2012 - 11:52 | 2204002 LawsofPhysics
LawsofPhysics's picture

ZIRP forever!  Where in ECON 101 did they say that there "was no cost for creating capital"?  Yeah, this will end well.  place your bets.

Tue, 02/28/2012 - 12:30 | 2204203 TheSilverJournal
TheSilverJournal's picture

There's just nowhere left for the money to go. And now the Fed will need to pump out even more in order to hiold yields down as inflation hits commodities and real interest rates become even more negative. At some point,

Tue, 02/28/2012 - 12:34 | 2204230 NotApplicable
NotApplicable's picture

"There no longer are any words left to explain what is going on in this centrally planned market."

ZIRP4EVA is the word.

Once the 10 spot in the curve is flattened out, then it's on to the the long end, where the financial monster consumes itself, while it is portrayed as the death of captialism, requiring perpetual IMF bonds to "save" it.

Or so I imagine.

Tue, 02/28/2012 - 11:52 | 2204004 Howdan
Howdan's picture

Thank you for posting this. I am well and truly glad I'm not the only one thinking that this stinking, mad, confusing market action is totally and utterly mental!

It looks like all that CB "intervention" (wink wink) read : manipulation of the markets is doing its stuff.

What do you do? Buy OTM puts and OTM calls in expectation of a collapse / new rally?

Trading has become so difficult in the past 3/4 months because nothing makes any b****y sense anymore!


Tue, 02/28/2012 - 11:57 | 2204026 CvlDobd
CvlDobd's picture

I may be an idiot but what is the word you blocked out?

Tue, 02/28/2012 - 12:05 | 2204072 Howdan
Howdan's picture

Haha no no, you're not an idiot, only the Central Wankers (Ahem I mean bankers) are.

The word was blood and add a y.

Tue, 02/28/2012 - 12:43 | 2204276 CvlDobd
CvlDobd's picture

Ah, a bloody redcoat!

Wankers, lol thanks.

Tue, 02/28/2012 - 12:09 | 2204087 TrillionDollarBoner
TrillionDollarBoner's picture

I think he's British and he wants to say 'bloody'


edit - oops, too late

Tue, 02/28/2012 - 13:45 | 2204506 Sunshine n Lollipops
Sunshine n Lollipops's picture

The last Puritan. I thought surely they were all dead.

Tue, 02/28/2012 - 16:28 | 2205367 css1971
css1971's picture

Wikipedia thinks 'bloody' comes from blood or has a load of rather unlikely origins.

I think it more likely comes from the German "blöd" or "blöde" (pronounced as bloody) meaning stupid. Or with a common ancestor in proto germanic languages, primarily meaning weak or soft:

It's hardly fucking in terms of swearing.

Tue, 02/28/2012 - 11:54 | 2204011 HD
HD's picture

The pond is now full of black swans... A return to normal markets will be the new catastrophic event.

Tue, 02/28/2012 - 11:54 | 2204016 scatterbrains
scatterbrains's picture

Today it seems our overlords have pulled back from the gold/silver battle front and are concentrating on keeping gasoline supressed as the typical inverse correlation between the long bond and UGA/NBO is broken for the moment anyway.

Tue, 02/28/2012 - 11:56 | 2204021 crawl
crawl's picture

The market has lit the crack pipe around 10 this morning and inhaled deeply. It's crazy.

Tue, 02/28/2012 - 12:00 | 2204044 Lost Wages
Lost Wages's picture

Are you sure it's Crack? It might be a DMT hallucination.

Tue, 02/28/2012 - 11:56 | 2204022 CClarity
CClarity's picture

Biflation, no credit extension except to central banks, banks, and well capitalized corporations, and debt saturation = bond market signalling depression and equity euphoria pretending demand will grow.

Tue, 02/28/2012 - 12:36 | 2204237 NotApplicable
NotApplicable's picture

In other words: Tuesday.

Tue, 02/28/2012 - 12:41 | 2204259 CClarity
CClarity's picture

; )

Faith based investing for Santorum Tuesday . . .  all super confidence imbuing for the markets.  What a joke we've become.

Tue, 02/28/2012 - 11:58 | 2204027 AccreditedEYE
AccreditedEYE's picture

Enjoy your tinkering CB's and continue to pat yourselves on the back while telling the world that reality is NOT happening around them... because when it all comes "undone" your worst nightmares are going to come true. The history books will not smile kindly on this level of sheer insanity/stupidity. It will be branded with the stamp of short termism and minute-to-minute, bird-brained behavior that has so perfectly come to define the past decade.  

Tue, 02/28/2012 - 11:58 | 2204029 orca
orca's picture

Stop whining. What we're seeing is faith being lost in money, just look at gold/silver etc. Those are the best bets, but if you're tangible-disabled and only allow yourself to dabble with ponzi instruments, shares are better than cash. As to bonds (and Bund etc), that's just your friendly Central Bank making sure the curve is perma fucked up. So close your eyes and buy any meaningful dip before someone else does.

Tue, 02/28/2012 - 11:58 | 2204032 VelvetHog
VelvetHog's picture

What's the surpise here?  Stock markets often rage higher when an economy is booming.

Tue, 02/28/2012 - 12:00 | 2204040 Biosci
Biosci's picture

Tyler - fuckyouverymuch for stirring up nausea-inducing O-chem memories

Tue, 02/28/2012 - 12:02 | 2204052 pods
pods's picture

Enantiomeric.  Beautiful!

There are some scientists here.



Tue, 02/28/2012 - 12:02 | 2204054 gwar5
gwar5's picture

"In chemistry, an enantiomer is one of two stereoisomers that are mirror images of each other that are non-superimposable. In economics, it means it is  possible for us to fool all the people all the time."  -- Benjamin Bernanke

Wed, 02/29/2012 - 04:11 | 2207090 slewie the pi-rat
slewie the pi-rat's picture


jungian psychodynamics includes enantiodromia

Enantiodromia - Wikipedia  Enantiodromia is a principle introduced by psychiatrist Carl Jung that the superabundance of any force inevitably produces its opposite. It is equivalent to the ... 

may you live in enantiodramatic times, BiCheZ!  ---carlJung!  L0L!!! 


Tue, 02/28/2012 - 12:07 | 2204081 Seize Mars
Seize Mars's picture

enantiomeric, nice

Tue, 02/28/2012 - 12:07 | 2204083 Dermasolarapate...
Dermasolarapaterraphatrima's picture

he he he...multi-year high....he he he.

Tue, 02/28/2012 - 12:10 | 2204100 SheepDog-One
SheepDog-One's picture

We havent seen anything yet with multi-year highs....wait till I finish off this pan of hash brownies!

Tue, 02/28/2012 - 12:09 | 2204093 Bansters-in-my-...
Bansters-in-my- feces's picture

Boy ,that USA Exchange Stabilization Fund sure has alot of buy power.

Ps...Fuck you Timmy you little fucking Weasel.....(sorry to furry weasels)

but he looks like you's without fur.

Tue, 02/28/2012 - 12:46 | 2204289 optimator
optimator's picture

Real weasels have small noses.

Tue, 02/28/2012 - 12:51 | 2204294 optimator
optimator's picture

One of these days they'll print some good news accidently and the markets will crash.

Tue, 02/28/2012 - 12:09 | 2204094 SheepDog-One
SheepDog-One's picture

Theyre keeping the wheels on in desperation. For some upcoming planned event, I would idea what that will be though I can only guess some fantastic false flag event so Israel and US can attack Iran one morning...only my best guess.

Tue, 02/28/2012 - 12:35 | 2204239 Abitdodgie
Abitdodgie's picture

There are two dates the first is the 8/9th of March or the 14 thru to 22 of  March Sorry Iran , America does not have the balls to stand up to there masters.

Tue, 02/28/2012 - 12:43 | 2204272 NotApplicable
NotApplicable's picture

But you do, amirite?

Tue, 02/28/2012 - 12:42 | 2204264 NotApplicable
NotApplicable's picture

Why, you should know that will never happen. No, one morning we will wake up to hear that Iran and Syria attacked both Israel, AND the US.

Oh, and they will release photoshops of the Obama family in compromising positions while engaging in unpatriotic acts such as walking on the flag.

Tue, 02/28/2012 - 12:12 | 2204099 LouisDega
LouisDega's picture

The market is up. Details at 4PM followed by your local traffic and weather on the 8's

Tue, 02/28/2012 - 12:11 | 2204107 Dow 36000
Dow 36000's picture

Dow going to 36000.  Mark it.

Tue, 02/28/2012 - 12:12 | 2204117 RopeADope
RopeADope's picture

Try comparing SP500 ex-Apple to yields instead.

Tue, 02/28/2012 - 12:18 | 2204149 juggalo1
juggalo1's picture

I'm very concerned because my stock picks concentrate on industrial and consumer non-cyclical picks.  I like to invest in companies that I believe produce real things for the real economy.  I was surprised yesterday because while the greater stock market rose along with bond prices, my "real economy company" basket didn't.  The same thing is happening today.  It seems mostly the financial, housing and "fake" economy is what is moving along with bond prices.

Tue, 02/28/2012 - 12:19 | 2204162 flyonmywall
flyonmywall's picture

They are obviously diastereomers in a cis configuration. The problem becomes when the S&P and the 10Y TSY yield reverse and go to the trans configuration.

Organic chemistry, bitchez.


Tue, 02/28/2012 - 16:11 | 2205291 css1971
css1971's picture


Tue, 02/28/2012 - 12:20 | 2204165 Roni
Roni's picture

I wont be surprised if the 10 year hits 0.5% the mkt is rigged ....

Tue, 02/28/2012 - 12:25 | 2204181 Everybodys All ...
Everybodys All American's picture
Dick Bove says leaks indicate agreement with Attorney General to be announced next week to be hugely positive for US banks

... the most transparent and ethical government/administration money can buy.

Tue, 02/28/2012 - 12:27 | 2204189 dvsteenk
dvsteenk's picture

expect at least 3% drop in major indices in coming 3 days

Tue, 02/28/2012 - 12:34 | 2204231 The Swedish Chef
The Swedish Chef's picture

LTRO says those are not your calls to make.

Tue, 02/28/2012 - 12:37 | 2204242 Ghordius
Ghordius's picture

don't fight the LTRO - don't fight the LTRO - don't fight the LTRO - don't fight the LTRO

I think I heard something similar, once... can't remember

Tue, 02/28/2012 - 12:31 | 2204213 YesWeKahn
YesWeKahn's picture

Too much fiat money, too little valuable things.

Tue, 02/28/2012 - 12:47 | 2204297 RopeADope
RopeADope's picture

Then it makes perfect sense that valueless money buys valueless things.

Tue, 02/28/2012 - 12:33 | 2204215 1835jackson
1835jackson's picture

I can hear the tightrope snapping at one end. This is going to be very ugly….I say tennis war anyone?

Tue, 02/28/2012 - 12:33 | 2204221 Tom.the.Bomb
Tom.the.Bomb's picture

most folks (that think they care) will read and hope below is true (because they live in a bubble of their own).  trust me gang... and I say this because I respect all that I have learned here (thanks to some pretty darn smart folks) things in the "real" world... door to door, face to face are getting worse.  the bullshit below is for the sheep, and is evil because skews the fix... which is "LESS IS MORE"... less of everything, the only answer !

Farce below !

Consumer confidence hits one-year high

Confidence among U.S. consumers rose in February to its highest level in a year, according to the Conference Board's Index of Consumer Confidence. The index was at a reading of 70.8, up from a revised 61.5 in January. Fewer firings, bigger payroll growth, and higher stock prices supported confidence and could spur spending, analysts said, helping offset concerns about a 44-cent jump in the price of a gallon of gas so far this year. - 2/28/2012

Tue, 02/28/2012 - 15:05 | 2204916 Sunshine n Lollipops
Sunshine n Lollipops's picture

Yep. I can't help noticing that my fellow consumers at the grocery store have a real bounce in their steps, as well as what I can only describe as an air of unflappable confidence (I call it the American Spirit!). Their carts are almost always jam-packed with luxury-type items such as lobster and fine wines. I chatted with one woman who was gushing about how relieved she is that the Dow crossed 13K (Gosh! Who isn't!). Her cart had numerous packages of beef tenderloin and fresh salmon and I mentioned to her that she certainly eats well, to which she replied, "Oh, that? It's for my cat," laughing breezily as she headed off towards the organic chocolate display. It looks like this month's survey is spot-on!


Wed, 02/29/2012 - 00:21 | 2206888 ltsgt1
ltsgt1's picture

Sure, consumer confidence is high. People are living rent free in their foreclosed home, colllecting unemployment check, working off the book and shopping with food stamp.

Tue, 02/28/2012 - 12:33 | 2204223 malcom x
malcom x's picture

Set up for sell the news on Friday following results of bank purchases tomorrow after market close......  At least me think.  But who the fuck knows with algo controlled "CAPITAL" market.

Tue, 02/28/2012 - 12:49 | 2204301 DavidC
DavidC's picture

The only thing keeping me anywhere near this market is that when it blows (and it will) it's going to be a sight to behold.


Tue, 02/28/2012 - 14:25 | 2204676 flyonmywall
flyonmywall's picture

It will be a sight to behold indeed.

Tue, 02/28/2012 - 14:51 | 2204832 q99x2
q99x2's picture

This market can withstand WWIII. Maybe that is what it is susposed to do.

I had always hoped to wake up in a place where nothing could go wrong.

But I did not expect that place to be the same old bed.

Tue, 02/28/2012 - 16:52 | 2205495 falak pema
falak pema's picture

now that is a phrase to make a man's jewels ache... markets can withstand WW3 ....they can't withstand the collapse of Greece but they can withstand WW3...that is fantasy world!

Tue, 02/28/2012 - 14:52 | 2204836 I should be working
I should be working's picture

To be fair operation twist probably has a lot to do with it.

Pour enough money into the market and the price of everything goes up.  The question is what will happen when the money printing stops?


Tue, 02/28/2012 - 15:25 | 2205055 JohnKozac
JohnKozac's picture
Index identifies 6 cities where home prices falling sharply By Martin Wolk

Here are the cities where prices have fallen the farthest over the past year, based on the index:

  • Atlanta, -12.8%
  • Las Vegas, -8.8%
  • Chicago, -6.5%
  • Seattle, -5.6%
  • San Francisco, -5.4%
  • San Diego, -5.4%

Tue, 02/28/2012 - 16:47 | 2205470 falak pema
falak pema's picture

robot trader is in heaven, he is making a killing on paper fiat. What a market for the people who be paper money sheeple. 

Roller coasters are a fun game. Thery're going to build one in London that'll jerk your leg off on the downside. Maybe a reflection of the market later on...reality is now eye balling fantasy world, big time.

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