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SocGen: "65% Probability Of US Recession"

Tyler Durden's picture





 

On Monday, Goldman was the first bank to go ahead and hike its recession odds for the US from 30% to 40% (needless to say assigning probabilities to a non-linear outcome is utterly ridiculous but we'll play along), additionally saying that both France and Germany will enter a recession shortly. Promptly, Wall Street followed. Yet despite the glaringly obvious, still nobody dares to assign a majority probability to a recession in America. Until today. French bank SocGen is once again the trailblazer in telling the truth, with its economics team being the first to make the bold (for a bank) claim that America now has not only a majority, but a two thirds chance of recession. To wit: "the recent financial shock, if it continues, is already large enough to derail the cycle prematurely. Our financial conditions index is at a tipping point and, all else equal, suggest 65% probability that the economy will enter recession in the next 12 months" (and to all those who point to record corporate profitability as the strawman which will never allow the US to enter a recession, SocGen has this response: "the recession that began in December of 2007 occurred in the face of very strong corporate profitability.").

More:

In an effort to capture the ‘new normal’ in our recession variables tied to consumer leverage. Even so, the models continue to point to low recession odds over the next year. Simply put, this cycle is too young to die a natural death. This does not mean that a recession cannot happen, but it is unlikely to originate organically within the US private sector. A recession needs a trigger. Unfortunately, the recent financial shock, if it continues, may already be large enough to derail the cycle prematurely.

 

 

Financial conditions are already at mild recession levels. Our financial conditions index (FCI), which is constructed to have a mean of zero and a standard deviation of one, now stands at -2.25 which is a new cyclical low. With the exception of 1998, shocks of this magnitude put the US economy in recession  with a relatively short lead. 1998 was the exception, but that shock occurred in the context of robust economic growth which provided a strong buffer. Needless to say, there is no buffer in place today. Converting the FCI into a recession probability using the probit model suggests 65% probability of  recession in the next 12 months. This is a significant risk to our stall-speed scenario. With no improvement in conditions in the next month, we may be forced to revise our forecasts down further.

 

It is important to note that next year’s outlook is also highly sensitive to the fiscal situation. At the moment, we assume no new stimulus beyond extending payroll tax cuts and emergency unemployment benefits. Failing to agree on these measures would almost certainly put the US in a recession; however there is also the possibility that we may see stimulus if President Obama manages to push through at least a portion of his jobs plan. We will continue to monitor  fiscal developments in the next two months and adjust our forecasts accordingly.

And on that note: short squeeze on.

 


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Thu, 10/06/2011 - 14:48 | Link to Comment Pladizow
Pladizow's picture

Rose colored glasses?

Thu, 10/06/2011 - 14:55 | Link to Comment Stax Edwards
Stax Edwards's picture

Hey Pladizow, are you the resurrection of Slaughterer?  

Thu, 10/06/2011 - 15:01 | Link to Comment Pladizow
Pladizow's picture

I dont know who that is.

Thu, 10/06/2011 - 15:07 | Link to Comment Harlequin001
Harlequin001's picture
SocGen: "65% Probability Of US Recession"

and 100% probability that they won't survive it...

Thu, 10/06/2011 - 15:24 | Link to Comment Troll Magnet
Troll Magnet's picture

so we are going from depression to recession? hooray! this is bullish!

Thu, 10/06/2011 - 16:09 | Link to Comment trav7777
trav7777's picture

well, the 30yr mortgage rate is now below 4% according to some news blurb.

I gotta ask why the fuck do people have to PAY a banker for the use of this money?  It sure as shit ain't to compensate for risk, as the house is collateral and the fuckin banks just get bailed out anyway. 

Thu, 10/06/2011 - 16:20 | Link to Comment ratso
ratso's picture

Oh right, SocGEn is a real truth teller.  Next lie please.

Thu, 10/06/2011 - 18:28 | Link to Comment AldousHuxley
AldousHuxley's picture

SocGen on a rainy day: "65% chance of rain"

 

Turn off the "reality" TV and just look out the window.

 

Thu, 10/06/2011 - 23:04 | Link to Comment jeff montanye
Thu, 10/06/2011 - 14:59 | Link to Comment Ruffcut
Ruffcut's picture

I calculated more like 68.2%. I use the math designed from ratings agencies.

Thu, 10/06/2011 - 15:09 | Link to Comment Jeff Lebowski
Jeff Lebowski's picture

Uh.  Yea.  Give me a sec...  I'm coming up with 32.33 (repeating of course) percentage of survival.

Thu, 10/06/2011 - 15:36 | Link to Comment CreditcalMass
CreditcalMass's picture

LLLLLLLLLEEEEEEEEEEEEEEEEEEEEEEEEEEEEERRRRRRRRRRRRRRRRRRRRRRRRROOOOOOOOOOOOOOOOOOOOOOOOOOOYYYYYYYYYYYYYYYYYYYYYYYYY JJJJJJJJJJJJJJEEEEEEEEENNNNNNNNNNNNNNNNKKKKKKKKKKKKKKIIIIIIIIIIIIIINNNNNNNNNNNNNNSSSSSSSSSSSS.

Bitchez.

Thu, 10/06/2011 - 17:10 | Link to Comment Hephasteus
Hephasteus's picture

Nobodies model has leeroy jenkins factors in it.

Thu, 10/06/2011 - 15:01 | Link to Comment Jim Cramer
Jim Cramer's picture

Wow, I am confused!  How can you put percentage odds on a recession happening when you are in one already, wouldn't that make the probability 100%?  I win, I nailed it, stupid banks.  Shouldn't I get paid for that assesment?

 

 

Thu, 10/06/2011 - 15:18 | Link to Comment akak
akak's picture

It means that there is a 65% chance that the USA will enter a recession, after the end of the current depression .... sometime in 2018 or so.

Thu, 10/06/2011 - 15:23 | Link to Comment chunkylover42
chunkylover42's picture

You are to be paid in fiat dollars. 

Good luck.

Thu, 10/06/2011 - 15:44 | Link to Comment Manthong
Manthong's picture

The other part of that report gave a 20% probability of it going from light to dark tonight.

Thu, 10/06/2011 - 16:14 | Link to Comment Linus2011
Linus2011's picture

20% probability means 20% +/- 10%

65% probability means 65% +/- 5%

the guy must be french. on any american or german university he would not have received a degree.

 

some more numbers from me:

probability of right prededictions of SocGen in the past: 0%

capital lost within half a year: 1 trillion eur

probability of crying for "save me, save me..." any time soon: 100%

 

Thu, 10/06/2011 - 16:24 | Link to Comment IQ 145
IQ 145's picture

"A trailbralzer in telling the truth"---oh, really. I didn't know anyone was that naive. There is no "truth" on these kinds of "predictions"; they're just talk. I wouldn't believe SocGen if they said the Sun was coming up in the morning; and neither would any other reasonably sophisticated person.

Thu, 10/06/2011 - 18:10 | Link to Comment falak pema
falak pema's picture

 I wouldn't ...and neither would any other reasonably sophisticated person.

now hows that for narcissism personified...? And an IQ of 145. Sophisticated lady and intelligent as a hammer head.

Thu, 10/06/2011 - 16:44 | Link to Comment kito
kito's picture

your new avatar sucks pladizow. bring back the breasts!!!!!!!!!!!

Thu, 10/06/2011 - 14:48 | Link to Comment SGS
SGS's picture

But MS is recovering and Deceptobama said everything is green and okay...

Thu, 10/06/2011 - 14:49 | Link to Comment PaperBear
PaperBear's picture

More like 100%

Thu, 10/06/2011 - 14:51 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Correction: "suggest 100 % probability that the economy will enter recession in the next 15 minutes. "

Thu, 10/06/2011 - 15:19 | Link to Comment kaiserhoff
kaiserhoff's picture

I would agree, but don't we have to climb out of the depression before we can fall into..., whatever.

Thu, 10/06/2011 - 14:51 | Link to Comment Racer
Racer's picture
US Treasury Secretary Geithner says there is 'no risk' for US in swap lines with ECB

Translation: Fasten your seatbelts as even more massive risk taken by US

Thu, 10/06/2011 - 14:52 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Just like there was "no chance" of a US rating downgrade. Timmah, you Eraserhead buffoon, sit down and shut the F up.

Thu, 10/06/2011 - 14:55 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

This means that it's already happening.  Did anyone watch the back door?

Thu, 10/06/2011 - 15:01 | Link to Comment Ruffcut
Ruffcut's picture

WHo needs to watch the back door, when you leave the front door wide open, all the time.

Thu, 10/06/2011 - 15:04 | Link to Comment Jim Cramer
Jim Cramer's picture

There is no back door to watch since we are all already bent over with their d**ks shoved so far up the back door minus the lube.

Thu, 10/06/2011 - 14:51 | Link to Comment Don Smith
Don Smith's picture

No, there's a 35% chance that we are already in it.  It's semantics, you see.  

Thu, 10/06/2011 - 14:51 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

More jew confetti please Ben!

Thu, 10/06/2011 - 14:55 | Link to Comment Deadpool
Deadpool's picture

that is Sooo 20th century of you, FuMoBoy

Thu, 10/06/2011 - 14:56 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

Just so people don't think you're joking...

Adolf Hitler himself in his book, Mein Kampf, makes many references to the German debt and the negative consequences that brought about the inevitability of "National Socialism". The inflation also raised doubts about the competence of liberal institutions, especially amongst a middle class who had held cash savings and bonds. It also produced resentment of bankers and speculators, whom the government and press blamed for the inflation. Many of them were Jews, and some Germans called the hyperinflated Weimar banknotes Jew Confetti.

Thu, 10/06/2011 - 15:00 | Link to Comment Stax Edwards
Stax Edwards's picture

Funky Monkey Boy hates America, but he is a big fan of Iran and N Korea. Right FMB?  

Tell us again how much better it is over there.

Thu, 10/06/2011 - 15:02 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

I hate all humans equally.

Thu, 10/06/2011 - 15:06 | Link to Comment catacl1sm
catacl1sm's picture

misanthrope... I like it.

Thu, 10/06/2011 - 15:09 | Link to Comment SheepDog-One
SheepDog-One's picture

I hold an equal opportunity despisement of all humans in general as well. And I show it by making up words as I go, fuck it.

Thu, 10/06/2011 - 15:16 | Link to Comment DCFusor
DCFusor's picture

Big plus, SheepDog.  Same here.  The challenge is not to let it blind you to the rare human not worth despising.

Thu, 10/06/2011 - 15:26 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh sure Ive got 100% friends, but theyre pretty rare these days.

Thu, 10/06/2011 - 17:13 | Link to Comment IQ 145
IQ 145's picture

Easy to believe.

Thu, 10/06/2011 - 15:35 | Link to Comment Smiddywesson
Smiddywesson's picture

I hate all humans equally.

LOL Funk, the simple honesty of that statement brought a tear to my eyes.  Oh, the humanity!

"Johnson, Navin R." Sounds like a typical bastard!

Thu, 10/06/2011 - 17:16 | Link to Comment Hephasteus
Hephasteus's picture

"Funky Monkey Boy hates America, but he is a big fan of Iran and N Korea. Right FMB?  

Tell us again how much better it is over there."

No iran and North korea absolutely suck. On account of constantly being attacked by jews. They got white phospher and shit.

Thu, 10/06/2011 - 15:28 | Link to Comment Deadpool
Deadpool's picture

why would you have that excerpt so quick at hand? put down the remote from 24 hour Hitler channel and go be productive....

Thu, 10/06/2011 - 16:16 | Link to Comment trav7777
trav7777's picture

this term originated apparently in bavaria...producers refused the judenfotzen as they referred to it.

It's no accident that it was blamed on bankers and jews, as they were in charge of the banking system at the time and after Weimar, somehow, the nation of Germany ended up under 100% jewish ownership.  Even after YEARS of anti-semitic divestiture and legislation, by the time Hitler truly came to power, that level of control had only dipped to 33%.

The Versailles Treaty was institutional usury against a nation.  Same shit as was tried against Iceland and other sovereigns recently.  When the debt compounded faster than the economy, the creditors who conjured the money from thin air moved in to seize collateral, AKA the German nation.

This phenomenon CONTINUES to recur throughout history and is the origin of the Christian prohibition against usury.  Jews do not have such a prohibition; in fact, they have the opposite in their Torah, that of an affirmative commandment TO lend to gentiles at interest.  They are supposed to lend to their kin at 0% but always charge interest to gentiles.  Any progressive or liberal should immediately identify this as racism and should condemn it and the religious doctrine that sets it forth, branding both as hate crimes.

Thu, 10/06/2011 - 20:27 | Link to Comment DosZap
DosZap's picture

trav7777,

Christians do not (NOT) believe in charging  interest .They may charge interest to everyone/anyone,they so desire.

Even a fellow Beleiver,if they wish.

Thu, 10/06/2011 - 14:57 | Link to Comment SMG
SMG's picture

More accuratly Lucifer/Horus confetti.   Who do you think the eyeball triangle is?

Thu, 10/06/2011 - 15:24 | Link to Comment Deadpool
Deadpool's picture

Hugh McColl, Ken Lewis, Angelo Mazzilo, Dick Fuld, Jimmy Kayne, John Mack, Phil Purcell, Franklin Raines, Hank Paulson, Stan O'Neil. Dumb ass goiys can be greedy too.

Thu, 10/06/2011 - 16:21 | Link to Comment trav7777
trav7777's picture

no question at all...the Rocks and Morgans joined the unholy alliance that made the Fed, along with jews such as Warburgs and Rothchilds, Goldman Sachs, and so forth.

Yeah, if you're a Rock, you're in.  But the Rocks don't help generic "white people" like the tribe helps generic tribers.  The main difference is the institutionalization of racism among various clans.  Doubtlessly, some bootlicker will come along and blame that on white people.

The notion of a clan is itself supposed to be inherently racist,

Thu, 10/06/2011 - 15:53 | Link to Comment NoClueSneaker
NoClueSneaker's picture

No need to ... Tricheur just kicked the turbo-print in Frankfurt. GS cashes the shorts, EU-Bank-llamas go bakrupt inspite, Deutsche Shithouse borrows from Ben without limit.

 

Alles wird gut.

Thu, 10/06/2011 - 14:52 | Link to Comment Cassandra Syndrome
Cassandra Syndrome's picture

Oooh, that's a bit low. Socialist Generale telling the US they are fucked. Its a bit like someone from Mississippi calling you a redneck....

Thu, 10/06/2011 - 14:52 | Link to Comment butchee
butchee's picture

Soc Gen:  65% probability of Soc Gen BK

Thu, 10/06/2011 - 15:04 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

US will get S&P and Moody's to come out tomorrow with a " SocGen 100% Bankrupt" and then promptly downgrade to JJJunk

Thu, 10/06/2011 - 15:08 | Link to Comment rune420
rune420's picture

LOL! But seriously, you have to realize that these eurobank casinos like SG and BNP are probably desperate to stop the dollar from rallying further, since they have massive dollar loans (which they took and converted into euros) and those debts have to be constantly rolled over.

Thu, 10/06/2011 - 17:16 | Link to Comment IQ 145
IQ 145's picture

65% probability they'll be nationalized by Bastille Day; they can keep their fucking predictions.

Thu, 10/06/2011 - 14:53 | Link to Comment Dick Darlington
Dick Darlington's picture

At least u folks in US can sleep safely even if the Criminal Reserve has the swap lines open with the insolvent Europe. The Tiny Pinocchio just said there's NO RISK. No risk he said!

10-06 14:30: US Treasury Secretary Geithner says there is 'no risk' for...

Thu, 10/06/2011 - 14:53 | Link to Comment Deadpool
Deadpool's picture

it's beginning to look a lot like Christmas...every where I go...la la la hmm hmm hmm. France couldn't call a recession if it was on a plate of frog legs and escargot. they think the business cycle occurs between strikes.

Thu, 10/06/2011 - 14:53 | Link to Comment Stax Edwards
Stax Edwards's picture

Nahhh, no recession coming to US.  

Maybe Europe depending on how this sovereign debt crisis shakes out.  

Thu, 10/06/2011 - 14:54 | Link to Comment Nascent_Variable
Nascent_Variable's picture

There's a 94.6% chance that a banker's estimate uses bullshit math.

Thu, 10/06/2011 - 14:54 | Link to Comment bob_dabolina
bob_dabolina's picture

65% of the time it works everytime

Thu, 10/06/2011 - 15:08 | Link to Comment Jim Cramer
Jim Cramer's picture

Made with real Panther bits.

Thu, 10/06/2011 - 15:23 | Link to Comment akak
akak's picture

65% of the time it works everytime

And five-thirds of people have trouble with fractions.

Thu, 10/06/2011 - 14:57 | Link to Comment LongSoupLine
LongSoupLine's picture

65% we upgrade to "Recession"??  That's too rosy a prediction. 

Thu, 10/06/2011 - 14:58 | Link to Comment mynhair
mynhair's picture

200% chance this statement is back-pedaled by tomorrow.

Can I haz ze rumorz now?

Thu, 10/06/2011 - 14:59 | Link to Comment Salty Dawg
Salty Dawg's picture

Not everyone from Mississippi is a redneck...You lowlife, backwards ass, flea bit, inbread, no-count, sumbitch. No just kidding, most of my Mississippi bretheren are 100% card carrying hicks.

Thu, 10/06/2011 - 14:59 | Link to Comment buzzsaw99
buzzsaw99's picture

socgen is smart, just look at their, um, stock.

Thu, 10/06/2011 - 15:03 | Link to Comment rocker
rocker's picture

The Financials should rally another 65% on HFT trading alone. 

Thu, 10/06/2011 - 15:00 | Link to Comment Hansel
Hansel's picture

65%?  So if it doesn't happen, "Oh that was the 35% part I was talking about, so I'm still right."  I guess this made it to the internet because no one would pay for this advice?

Thu, 10/06/2011 - 15:02 | Link to Comment s2man
s2man's picture

I thought there was a 100% chance we are still in the previous recession.  It was just papered over with $1.5T to claim we were in recovery.

Thu, 10/06/2011 - 15:18 | Link to Comment Vergeltung
Vergeltung's picture

^^^thread winner.

 

Thu, 10/06/2011 - 15:04 | Link to Comment Belarus
Belarus's picture

Oh....please, we're already in a recession. Sure, by statistical bullshit figures like GDP growth in a vacuum we have yet entered a recession again. But take away the punch, the unfunded defict spending and the Bush tax rates, and then tell me whether it's bold to say we might enter a statisical recesssion. It's alll bullshit. Folllowing GDP is just some sappy proxy for MSM like it was for a hack analyst to solely trump Enron' inocme statement while ingoring their balance sheet and statement of cash flows. Look at GDP's (the income statement) brother, the balance sheet (Federal Debt) and its' sister, the statement of cash flows (the treasury), and tell me what you see?

"It's not a recovery; it's a cover up." Gerald Celente.

Thu, 10/06/2011 - 15:04 | Link to Comment RobotTrader
RobotTrader's picture

 

 

Soc Gen, a ill-fated European banking giant on the verge of implosion with gunslinger rogue traders causing billions of losses and a balance sheet saddled with mountains of bad sovereign debt and CDO squared/cubed exotica left over from 2007.

Now suddenly is the so-called "expert" in supporting the anarchists' view that the U.S. economy is on the verge of a meltdown?

Thu, 10/06/2011 - 15:07 | Link to Comment SheepDog-One
SheepDog-One's picture

GEE yea good point as usual RoboTrader! The U.S. economy is obviously just FINE! 20% unemployment, record bankruptcies, record foreclosures, Gubment burning thru $70 billion dollars a day now, debt ceiling ever higher as the economic numbers tank...WTF all is WELL!!

Thu, 10/06/2011 - 15:26 | Link to Comment akak
akak's picture

RobotLemming, I bet you were the kid in grade school who kept secretively wiping shit on the walls of the boy's restroom, too.  Your figurative wall-shitwiping here is no less disgusting and pathetic.

Thu, 10/06/2011 - 15:37 | Link to Comment Deadpool
Deadpool's picture

dude...what fucked up school did you go to? Monkeys without diapers prep??

Thu, 10/06/2011 - 15:55 | Link to Comment akak
akak's picture

From what I hear, almost every grade school has (or had?) at least one such kid every so often.  I know ours, unfortunately and disgustingly, did as well.

Thu, 10/06/2011 - 15:27 | Link to Comment Saro
Saro's picture

You seem to believe strongly in an "ad hominem"-style belief system.  That is, if the source is "good", what he says is also therefore "good", and if the source is "bad", then what he says is also therefore "bad".  No further analysis of the argument is required, you just look at the source and knee-jerk your way through life.  And because of that, you expect everyone else to evaluate news the same way.

Some of us, however, prefer to live in a "reality-based" belief system.  To the extent that a person or institution denies reality, they are to be called out on it, and to the extent that a person or institution accepts reality, they are to be commended for it.

This is only hypocrisy to someone like you who cannot evaluate facts and reality for themselves.

Thu, 10/06/2011 - 15:56 | Link to Comment Smiddywesson
Smiddywesson's picture

NM

Thu, 10/06/2011 - 18:09 | Link to Comment akak
akak's picture

The former ZH contributor (such as he was) Leo Kolivakis (aka Quislingasskiss) far excelled at the type of ad hominem belief system that you describe.  This belief system of his was strongly reinforced, of course, if the homo in question took Leo out to breakfast or lunch first, or drove a flashy sportscar.

Thu, 10/06/2011 - 19:14 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

Haha, I remember Leo. At least we have as proof someone like Leo, to prove 'on a long enough timeline' all ZH trolls get decimated.

Fri, 10/07/2011 - 05:57 | Link to Comment Jeff Lebowski
Jeff Lebowski's picture

"ad hominem" belief system = borderline personality disorder

Thu, 10/06/2011 - 15:08 | Link to Comment DormRoom
DormRoom's picture

creative-destruction.

 

But no new innovation in a decade, so ppl invest in rocks & carbon.

Thu, 10/06/2011 - 15:05 | Link to Comment SheepDog-One
SheepDog-One's picture

I thought there was a near 100% chance SocGen is doomed.

Thu, 10/06/2011 - 15:05 | Link to Comment DavidJ
DavidJ's picture

It seems very likely that 2012 is when the US economy (an others) starts to decline at a fast clip.  Scary times ahead!  [I wish this was not the case].

 

 

Thu, 10/06/2011 - 15:06 | Link to Comment Segestan
Segestan's picture

WTF......perhaps they meant a 65% chance of going from recession to implosion?

Thu, 10/06/2011 - 15:09 | Link to Comment The Onion Of Tw...
The Onion Of Twickenham's picture

What? No mention of Mer vyn King's incendiary comment this evening that the world is facing "the greatest financial crisis of all time"?

 

The game is up.

Thu, 10/06/2011 - 15:09 | Link to Comment catacl1sm
catacl1sm's picture

Bankruptcy is the new black.

Thu, 10/06/2011 - 15:13 | Link to Comment WW
WW's picture

If SICGEN keeps up these negative comments, we'll stop sending them $$$!

JK SICGEN,

HELIBEN will never stop printing!

Thu, 10/06/2011 - 15:13 | Link to Comment SheepDog-One
SheepDog-One's picture

'Recession risk'? Well I guess technically we'd have to rise out of the depression to get back up TO a recession, which I think is HIGHLY overoptimistic at best...but hey, cant they just announce theyll print more money and all is well? 

I'm having trouble seeing what the problem is here...

Thu, 10/06/2011 - 15:13 | Link to Comment mynhair
mynhair's picture

Aussie and the Stinko just ripping.  Credit following.  Yee Haw!

Thu, 10/06/2011 - 15:14 | Link to Comment Nigh Eve
Nigh Eve's picture

Take a look at the most recent edition (July) of "Traffic Volume Trends" from the US Office of Highway Policy. (at link below)

http://www.fhwa.dot.gov/policyinformation/travel_monitoring/tvt.cfm

It is sort of an un-official indicator of "monetary velocity" (assuming traffic is proportional to monetary transactions involving tangible goods).

Then, for an interesting graphic, go to Page 9 of the July report.

Bryan

Thu, 10/06/2011 - 15:18 | Link to Comment bankonzhongguo
bankonzhongguo's picture

This is from a bank that will require a US taxpayer supplied FED/IMF/ECB bailout?

We have to start consolidating the ideas flowing from these morally and financially bankrupt

entities.

If your unemployed convicted child molester uncle Ben started giving you financial and love advice, would you take it?

These guys create the newz and then exploit it.

They are obviously more powerful than national governments and the lowly serf-citizens that they serve.

Thu, 10/06/2011 - 15:18 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

slewie's indicators are screaming:  We're Doomed, BiCheZ!

Thu, 10/06/2011 - 15:22 | Link to Comment tekhneek
tekhneek's picture

SocGen - 105% probability of nationalization/default.

Way to pull a Timmay, fuck faces.

Thu, 10/06/2011 - 15:25 | Link to Comment jarboejl
jarboejl's picture

Okay pulled the trigger on SPXU when S&P struck 1160, let's see how that plays out!

Thu, 10/06/2011 - 15:29 | Link to Comment kito
kito's picture

 what happened to the theory of "monetary expansion or death"? fed is now taking back money, "qe" is a phrase no longer in vogue, stocks are stable, gold and silver up, oil up, WTF???!??! none of this makes sense anymore.

Thu, 10/06/2011 - 15:40 | Link to Comment centerline
centerline's picture

Nah.  This is just a controlled pause in epic humping of the underclasses.  They want the public cry out for it so sugar daddy Ben can pump it again.  I can hear the screams already.

Thu, 10/06/2011 - 15:57 | Link to Comment kito
kito's picture

im not seeing that, and i hear no screams. the poor are well funded with section 8, medicaid, and public assistance. the public employee funds are still intact thanks to a stock market that just wont die. inflation is tempered. gas prices have dropped. pickup sales are through the roof. bond investors are having loads of fun. gold holders have seen a nice increase this year in value. EVERYBODY IS CONTENT!!!!

Thu, 10/06/2011 - 16:23 | Link to Comment centerline
centerline's picture

State of limbo it what it really amounts to.  Cigarette break.

Thu, 10/06/2011 - 15:31 | Link to Comment trampstamp
trampstamp's picture

maybe because the US banks have 65% of SocGen's junk bonds?

Thu, 10/06/2011 - 16:02 | Link to Comment NoClueSneaker
NoClueSneaker's picture

Banks or GS ?

Thu, 10/06/2011 - 15:32 | Link to Comment UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

65% Chance of Recession?

Not Bad!

LETS PLAY GOLF...

Thu, 10/06/2011 - 15:34 | Link to Comment Snakeeyes
Snakeeyes's picture

i don't agree with 65, more like 50-50. Housing still sucks, taxes and fees growing, regulations gone wild.

http://confoundedinterest.wordpress.com

show me 50 percent good economic numbers?

Thu, 10/06/2011 - 15:41 | Link to Comment chaartist
chaartist's picture

100%.

Thu, 10/06/2011 - 15:50 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

USA say :  "99% Probability Of SocGen Recession"

Also works the other way obviously... Pots and kettles ya know. The good news i finally talked my Dad into removing his life savings from this cesspool that SocGen is. Vive mon papa!

Thu, 10/06/2011 - 15:51 | Link to Comment The Fonz...befo...
The Fonz...before shark jump's picture

thats why this bank is in trouble they cant even guesstimate properly

 

65% my azz

Thu, 10/06/2011 - 15:57 | Link to Comment Linus2011
Linus2011's picture

i find it always funny when doomed companies that screwed it up completely in the past make predictions for the future.

only fools without any degree predict the probability of chaotic systems to a precision of 1%.

Thu, 10/06/2011 - 15:57 | Link to Comment Linus2011
Linus2011's picture

i find it always funny when doomed companies that screwed it up completely in the past make predictions for the future.

only fools without any degree predict the probability of chaotic systems to a precision of 1%.

Thu, 10/06/2011 - 16:00 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

"France couldn't call a recession if it was on a plate of frog legs and escargot. they think the business cycle occurs between strikes."

 

No need to go low with racist clichés... The funny thing about this is SocGen analysts never foresaw anything, ever. They just followed Wall St. and the S&P like a dog following its master. They couldn't foresee they were buying sub-primes by the truckload (they admitted they didn't understand the "sub" in the word "subprime")

And now these poodles claim they foresee recession in the U.S.? These cunts couldn't "foresee" X-mas on a calendar even if you put their finger on the line dated "Dec. 24"... Assholes!

Thu, 10/06/2011 - 16:14 | Link to Comment ivars
ivars's picture

It is 100% q1 2012-2014. I undertook little exercise to create:

Prediction chart of US debt max, default time, haircut,inflation

Its explained in more detail here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=34423#p34423

All in all, US debt will reach 21 TRILLION USD in early 2016 at default. Taking into account GDP 2011 = GDP 2010 (14,7 trillion USD) and 4% /year recession 2012-2015, the ratio DEBT/GDP may be close to 170-180%. In any case, >150%. That is a bit higher than the ratio Greece had in 2010 ( 140%) which prompted bailout from EU and IMF to avoid immediate default. No one is able to bailout the USA in 2016.

Haircut will be between 50-75% in 2017-2018, so inflation roughly 25% a year. This corresponds to USDX long term prediction chart (2012-2018) made here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

and as related to it, but made earlier and independently, long term  ( 2012-2018) EUR/USD rate prediction chart made here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

so everything fits wiht deflationary recession in the USA q1 2012-end of 2014.

 

 

 

Thu, 10/06/2011 - 16:14 | Link to Comment ivars
ivars's picture

It is 100% q1 2012-2014. I undertook little exercise to create:

Prediction chart of US debt max, default time, haircut,inflation

Its explained in more detail here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=34423#p34423

All in all, US debt will reach 21 TRILLION USD in early 2016 at default. Taking into account GDP 2011 = GDP 2010 (14,7 trillion USD) and 4% /year recession 2012-2015, the ratio DEBT/GDP may be close to 170-180%. In any case, >150%. That is a bit higher than the ratio Greece had in 2010 ( 140%) which prompted bailout from EU and IMF to avoid immediate default. No one is able to bailout the USA in 2016.

Haircut will be between 50-75% in 2017-2018, so inflation roughly 25% a year. This corresponds to USDX long term prediction chart (2012-2018) made here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

and as related to it, but made earlier and independently, long term  ( 2012-2018) EUR/USD rate prediction chart made here:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

so everything fits wiht deflationary recession in the USA q1 2012-end of 2014.

 

 

 

Thu, 10/06/2011 - 16:50 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

I wondered why the markets rallied today.

Now I know.

Thu, 10/06/2011 - 18:02 | Link to Comment Hephasteus
Hephasteus's picture

It was a rogue trader or rogue statatician or rogue something.

Thu, 10/06/2011 - 19:07 | Link to Comment PulauHantu29
PulauHantu29's picture

...and turns out 65% of statistics are made up on the spot.

Thu, 10/06/2011 - 19:19 | Link to Comment akak
akak's picture

95% of the time, 75% of statistics are 85% wrong anyway.

Fri, 10/07/2011 - 05:07 | Link to Comment Hephasteus
Hephasteus's picture

Watch out for this akak guy. It's like he knows something you don't know.

Thu, 10/06/2011 - 20:02 | Link to Comment DosZap
DosZap's picture

Sacre bleu!!!!!!!!!!!!!!!.

Soc Gen, thinks.....................the US will be in a recession?.( While their Nad sacks are bankrupt?)

La Idiota's...........................................we're in a Depression,don't bother us with the trivial shit.

Wed, 10/12/2011 - 10:12 | Link to Comment karmete
karmete's picture

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