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Stocks Have Second Biggest Plunge Of 2012
Treasury yields retraced more than 50% of their rise post-FOMC yesterday leaving them only marginally higher on the week as, despite another late afternoon light volume surge to VWAP, stocks closed with their second biggest daily loss of the year. Three days in a row now, ES (the S&P 500 e-mini futures contract) has closed at its VWAP - suggesting institutional blocks continue to look for opportune/efficient selling levels (as opposed to buying the dips which we are so used to). After Spain's auction debacle and the ISM Services miss, it seems that with no Fed standing guard that good is good but bad is not better anymore as the S&P 500 cash lost over 1% (down 2% from Monday's peak to today's trough). Financials underperformed and the majors (which we noted on Monday sagging after Europe's close) have been really hurt with Citi, BofA, and MS down 6 to 7% since then. Equity markets in the US and Europe played catch up once again to credit's more realistic assessment of the world as HYG (the high-yield bond ETF) is back at one-month lows, down 2.7% from its end-Feb highs (or five months worth of yield, oops). Investment grade credit (which remains rich to its fair-value) was not helped as Treasuries were the place of refuge for the day as 30Y yields dropped their most in 2012. Commodities suffered significant damage as Silver tumbled to meet Gold's loss for the week, both down 3% Copper and Oil also dropped notably and are now back in sync with the USD for the week -1% or so. Most major FX remained USD positive except for JPY which retraced its snap lower from yesterday as carry trades were generally exited (with EUR and AUD weakness mirroring JPY strength post-FOMC) leaving DXY near 3-week highs. Who-/What-ever was doing the buying in the afternoon clearly levered the position (using AAPL or options) as VIX dumped once again out of nowhere intraday - closing near its lows of the day. However, VIX did close up near one-month highs as it catches up to Europe's VIX flare. Given the drop in implied correlation (and in-line VIX-S&P move) we suspect the covered-call strategy of the year was coming undone a little at the seams as single-name vol underperformed.
European financials have converged in equity and credit and continue to sink. In the US, it is credit markets that remain far less sanguine - though today's weakness - especially in the majors suggests they are catching up to reality fast...
and US majors have been losing significant ground since Monday's European close...
but once again ES (the e-mini S&P future) retraced back to VWAP with the bulk of the volume surge in the selling period...
Commodities will likely dominate much of the news (despite the fact that stocks in context fell considerably more relative to the year's performance in the last two days).. Notice how gold and silver have recoupled on the week as have Oil and Copper with USD strength...
'
Treasuries were the big winners of the day with 10Y and 30Y having their best days of the year in terms of yield compression - having retraced more than half around Fib 61.8% actually) of yesterday's spike...
VIX managed to compress as stocks rallied but the drop in implied correlation, as VIX tracked stocks more or less - suggests single-name vol was bought back (protection sought) with more vigor than a macro overlay. This fits with the recent 'stock-picker's market' that has apparently evolved and the already steep term structure of index vol. Perhaps the easy money from covered-call writing is over...
The USD is up around 1% on the week with a notable divergence between JPY strength (carry cover) and AUD (trade deficit and carry unwind) and EUR (chaos emerging and Spain) weakness.
Overall a rather messy day with no real signsof dip-buyers (even with the retracement - as it looked more like algos feeding institutions). Cross-asset class correlation picked up considerably throughout the day (lower right) as broadly speaking, risk assets (CONTEXT - upper right) were sold more than equities for now (diverging with the late rally). VIX managed to increase to its credit-equity implied fair-value (lower left) before compressing into the close (as we mentioned above) while equity ETFs tracjed each other broadly efficiently (upper left) as VXX outpaced HYG's losses.
Charts: Bloomberg and Capital Context
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Yes, because the reality of the whole stinking pile is coming to light. Here's from the comment section of SFGate regarding $1Trillion in student loans debacle:
Most Popular Comments paul_e_ester 6:57 AM on April 3, 2012
Once again we have a situation where the private sector makes the loans and collects the interest, as soon as the loan goes south the private investor is made whole by the taxpayer, Parasitic capitalism at its finest. Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/04/03/national/w00...
http://www.sfgate.com/news/
Bill Gross was on CNBC today discussing his massive bet on QE3 saying that anytime the Fed has not come with additional easing the market has dropped 1500 points (at least). Video here:
http://www.ftense.com/2012/04/bill-gross-discusses-feds-current-trap.html
Stocks can go down?
WHOA. Who knew?
Exactly. After shorting is outlawed, will selling be outlawed as well?
Please. This is not a plunge!!
True, The Russell took out the 50 dma but closed above it. All the others have stayed above their 50s. Still when you look at the DOW it's hard to say the trend line is still intact. One more day to confirm this and all the people who bought in knowing it was a rally based on flim-flam, but still a rally, are going to jump ship. Will a 'magic bullet' announcement come from the Fed or BLS tomorrow or are they going to let a correction happen? I went full-bear last week so that's how I'm betting but a rally to new highs based on B(L)S numbers won't surprise me.
Yesterday the FOMC minutes said 'No new QE as long as the economy is showing signs of recovery'. Today the banks said 'Okay we'll oblige you'. They will get their candy one way or the other.
Uncle Ben is getting the dope ready.
Timewave ZERO. day 1. hurm.
The NDX has been the leader pointing the way upward from mid-Dec 2011's 2225 to yesterday's 2800, up 26%, with only the one early March downward gap which was covered the next day, followed by the uptrend resumption.
My screens say today's 2nd NDX gap down may not be similarly closed, and that the NDX will remain the leader, only now to the downside. Closing the gap with 2 consecutive higher closes over 2790 would resume the 3-4 month uptrend, and my indicators say to bet against it:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ndx&insttype=&freq=1&show=&time=7
Eat your pees and enjoy them
Ben Bernanke makes a rare Wall Street appearance
After completing a series of public lectures in Washington, D.C. last week, Federal Reserve Chairman Ben Bernanke quietly slipped into New York City for a private luncheon on Friday with Wall Street executives.
Fortune has learned that attendees included Jamie Dimon (J.P. Morgan), Bob Diamond (Barclays), Brady Dougan (Credit Suisse), Larry Fink (Blackrock), Gerald Hassell (Bank of New York Mellon), Glenn Hutchins (Silver Lake), Colm Kelleher (Morgan Stanley), Brian Moynihan (Bank of America), Steve Schwarzman (Blackstone Group) and David Vinar (Goldman Sachs).
http://finance.fortune.cnn.com/2012/04/04/exclusive-bernanke-breaks-bread-with-top-bankers/
If all the different clan members meet with uncle Ben it's certainly not just an exchange of empty phrases. What's really going on? Another FED orchestrated bailout of a major Wall Street bank needed?
Just once could it be a battle to the death?
You don't think they're killing folks already?
Nothing to see here, folks. Keep moving along.
Or another Fed orchestrated bailout of a major country (like Spain)?
They were probably discussing a scheme to siphon US taxpayer money from the Fed via Primary Dealers to fund IMF without the taxpayers and Congress knowing about it.
IMF chief demands more US cash to save Europe
http://www.smh.com.au/business/world-business/imf-chief-calls-on-us-for-more-cash-20120404-1wbng.html
In case your not up on current events the fed told congress last week that they were buying euro (junk) bonds.... No cooking or conspiracy required, its right out in the open..... Well kind of out in the open, the only place that covered it was here.....
http://www.zerohedge.com/news/its-official-fed-now-buying-european-government-bonds
I would remove the word "rare". I am sure that Bernanke has to brief his bosses on daily basis.
Oh Bernank 'breaks bread' wow just like Jesus and all....LOL excuse me while I hurl in the trash can.
Perhaps with his loaves we could provide him with a rotting fish head.
I see Lloyd sent a flunky. Too busy doing God's work i guess.
...shareholder meeting...
Watch Brent run back to $126 next week when some patsy utters "test balloon" words that a wheelchair-bound CNBC sock puppet interprets as a guaranty of QE3.
On Feb.29 just for 30 min 225 mln oz paper silver have been dropped on the market
Apr.03 just for about a hour 637 mln oz paper silver have been dropped on the market
The annual world production of silver for 2010 was 735 mln oz silver
Obviously silver is under attack
The margin call soon will close these short positions and we will see silver (and gold) skyrocketing
Really? Did you get a tip that Jamie D over at JPM is about to roll over on their SLV shorts? I think they can manipulate this game a lot longer.
Nice thing is we get lots of sale prices.
i think you're right, i've been waiting for silver to get beat down into the 20's before i start buying again. preferably 26ish.
I'm not sure that will happen, either, but it could. There are enormous, opposed forces at work batting silver prices between $30 or whatever is the tolerable "low" and $37 or so. When the legitimate price will emerge is anyone's guess, but eventually it will. Every one of these smackdowns is another round of finite ammo down the tubes. Weak hands shake out, smart buyers take some physical, and the price gets pressured up to another boiling point.
I like to think of it as a battle between a starfish and its prey (e.g., clam). The clam can resist for a long time on the strength of its muscles, but eventually will be outlasted by the starfish who is using suction. Physical buyers are the starfish, JPM and the banksters are the clam.
Interesting analogy. I wouldn't liken JPM a clam though, but rather a clam shell.
The clam? PMs
The Starfish? Jamie Dimon and friends.
The suction? ZIRP and the infinite level of debt it allows as debt service goes to zero.
Physical buyers are just little sucker fish who get to live off of the scraps. Which, for a sucker fish, isn't a bad living.
agreed again, i've been part of the starfish collective for a few years now; my hands are strong and my timeframe is measured in decades. it's tempting to buy another slug right now but i think it's prudent to wait a while yet. i'm actually comfortable with anything under $35... under $30 seems on sale for sure, and at that price i would be actively considering whether or not to pull the trigger. i might buy half my normal amount before the end of the week and see what happens.
Given MFG's takecown of the Crimex and the real hedgers (producers), I can see the paper game lasting quite a bit longer, as I doubt that Celente, et al. will try and leverage the paper for cheap physical delivery again.
As for closing their shorts, my bet is that the JPM minions will keep doubling them until it all breaks and it no longer matters. There's no way they'd ever take the loss when they're operating on behalf of the Treasury/Fed/Satan.
i sometimes wonder if the digital age lends such a degree of control that it will never break.
As long as it's accompanied by someone's magic checkbook and these pesky legal tender laws, there's no natural limit, as there's no meaningful resistance.
The second that people refuse to accept this magic currency, that's when it all collapses instantly. Before it gets that bad though, is the reactionary adjustment to currency value known as hyperinflation. Someone will want more and more in trade, up until they realize it's impossible to keep up. Then they revert to barter, as it's the only remaining honest transaction of value for value.
I suspect that in spite of our perspective of the battle in PMs that we are merely a speck. The finale will be amongst the big guys, the CBc and sovereigns. When one of them makes a break for the door THAT will be the deciding act. In the mean time we should just keep picking up scraps and try to figure out where to be standing when the big whatever hits.
After the last attack (remember when multiple banks randomly dumped gold equal to Brazil's national reserves on the market as Ben turned from Ron Paul's questions to Maxine Water's) I read the plunge was stopped as the selling ran into long standing Chinese buy orders. I can't vouch for the accuracy of the report but these dumps are providing good buying opportunities for those who are still buying. Will they buy silver at 30 or do they decide if they back off a bit they can buy for 26. As long as the big players feel that selling into the plunge and repurchasing later is the best route the game goes on. When the players hold their positions then buy more at the bottom that's when it's game over.
good points in your posts here. . .
I can't help but wonder how long silver miners will be able to afford "digging it out of the ground" as the costs (oil) rise, but the paper price is artificially manipulated low.
buy, hold, physical.
If this is happening, the big 'paper short conspiracy', who says that it can't be stepped up even more? Maybe this is some sort of extended ploy to suck all the 'prepper' cash into metals, then REALLY bring the pain on the COMEX (I am talking billions of ounces) short. Just to test the mettle of stackers; see how many don't puke it up if the price (paper, mind you) goes back to the teens, for example. Sure those of you who ran out of space in the backyard at $5 are pretty, but there are probably lots of latecomers at $40 basis who have Prilosec on autoship...
If the market could speak it would be asking for more dolla...toilet paper.
It's just the Fed making the case for the Fed to initiate QE3.
Let's see what happens to yields over the next couple US bond auctions. A couple twenny bps jumps just might get Ben to soil his fruit of the looms.
Why do bond prices ever have to go up? the FED can buy all it wants with the fiat it makes at will. Sure, there'll be inflation, but they can just blame the evil orange juice speculators.
Surely you don't believe there's still a bond market, do you? I'd guess if those jumps happen, Geethner, Benron (or some of their minions) would be on the phone screaming at whatever bankster failed to keep up their end of the bargain.
"You front-run the Fed/Treasury as directed, or we'll Lehman your sorry ass! Then we'll throw you in jail for insider trading!"
Sure there's a bond market. The seller is the US Treasury and the buyers are the predetermined banks through which the Fed launders new money. So we got buyer and seller - instant market!
PM miners were on sale today. Some look like bargains now.
I have my eye on one but I am retail and to muppish to invest right now.
"muppish"
Excellent "word".
Did he mean to say "two muppish"?
One muppish
two muppish
red muppish
blue muppish
trolololol
+1 Muppets & Seuss
If the fundamentals (low and relatively constant cash costs per oz, production growth / long mine life, reserves growth, low debt, politically stable jurisdictions etc.) are great, go ahead and buy.
I use a base case of $1500 for gold and $30 for silver for valueations.
This artificial stock inflation has to all come crashing down at some point, I think it would be more muppish to wait until equities tank so I can get a better deal.
There's little value to be had in using the dollar as a measuring stick for anything, especially silver and gold. The best valuation I can do is to compare one to the other, as anything else is just a restatement of the initial fiat problem.
Wait until tomorrow......after Ben's appearance on the Jerry Springer show...
Better yet, Maury Povich..."Ben, you are NOT the father (of the recovery)."
They did a DNA test on the recovery to determine the father, and found out it died in the womb. This thing they call "the recovery" is the expelled dead fetus.
Ahh, thanks for that. The Hysterical Recovery.
Only exists up in the tubes before the business end of actual recovery.
Nice headline ( stocks plunge...). Puh-lease, S&P down 1 lousy % doesn't deserve the verb plunge. Down 10%, now we're talkin
In the real world, yes you are correct. In this fantasy world, you are not. The market must....not......go......DOWN!!
but my broker (or was it my realtor?) told me these things always go up.....wtf?!
Support channels broken galore:
Yesterday's chart, but imagine another red bar closing at 1398.
http://www.bullandbearmash.com/latest/sp-500/daily/
Same holds for the Dow and NASDAQ daily's.
This overbought nonsense should be about done.
'Where oh where is RETAIL to come in and BUY'!!
Chevy? Or anything Auto?
Liberal MSM is gushing over the VOLT again and the Auto industry's version of subprime is, well, primed.
No?
Then back to BBATC and FOOD for me.
Is someone going to find Jim Sinclair hanging himself with his belt in his own office tomorrow? His precious miners look like crap right now. I guess central planning works after all. Apple to $1000 and Au to $300. All it took was complete control of the media, political process and all financial transactions in the world.
Don't forget the interwebs.
I've appreciated Jim's commentary for several years now, but he's always had blinders on concerning miners (and African politicians).
Simply put, just as government is killing the financial industry, leaving a few friendly zombies walking around for show, they will do the exact same thing to the PM mining industry. There won't be three miners left not named Barrick or Anglogold. Why? Commies don't like private firms earning money, let alone making it.
Assuming he's not playing elite games, I expect at some point one day to see him Chavezed (or Corzined) when the UN/IMF/Galactic Federation takes over "the peoples'" property.
Don't worry though. It's for the children.
Just not yours.
Mother fucking Ben Shalom Bernake meeting privately with his co-conspirators for "lunch".
When are they going to hang these gangsters and crooks from the lamp posts by the neck?
When the Mafia does it, they pull a raid. How is it different with counterfeiters, ponzi artists, con men and inside traders?
Perhaps they can find the international felon Corizine at that private lunch?
Where is justice in America?
Moe,
Hanging is so cruel.
How about the guillotine?
This class of traitors and thieves deserve the best technology has to offer.
You had me at Moe.
The truth is we have capital controls now. You will never ever ever be able to take your money out of the banks. I tried for a paltry 20k "we dont have it" . Now banks dont even carry 20k of cash.
Ill try again tomarrow for 5k you would think a bank would have that, ill try early in the morning before they run out. If not 4k and so on untill i get something.
The banks dont have the cash people. You will die with an account sayingone thing and the beauracrate behind the counter saying another.
If you can get out your cash do so and do so now.
Its not the "bank" its the branch if that drone dont have the cash you dont either.
I will let you know how much cash i get tomarrow.
You have to call ahead so they can print it up for you. They don't have quick dry ink.
I wish it was that simple. Fact is they will not allow it.
I had a chasher check and wanted it in cash sorry you have to deposit the whole amount and then like a bitch be told what you can and cant get each day electronicly.
I want CASH. I could get Cash last year what changed?
Last year i could have got the money no problem this time its now a problem.
What can you do ? Your a nigga slave, you get what we want to give you nothing more.
Think im lieing. Try it.
Try to get your money out of the bank? That is if you have any money to remove.
Tomarrow ill try 5k.
If i cant even get 5k of cash i dont know what to do.
You will never get your money paid out in CASH.
IF it takes a month im going to get my cash. Paper that it be. Stupid people want paper so be it.
Go write checks for everything you want with it. After all, you'll get nowhere but poor by storing your wealth in dollars.
If you want to by from the sheep you need the paper. Even sheep dont take credit or checks. :P
My coin dealer does.
But (after the crash when paper gold tanks and before the revaluation) when you need to sell some PM's to your coin dealer because you need buy something... what happens when he is out of cash?
I have been there. You go every morning and take a few grand out until you have enough.
However, if you wear a hoodie and have a note and a gun, somehow they find more.
Can your rob your own account?
*point gun at self (im looking for dirt and rocks) I want my money, Bitchez. :)
Will that be on the MSN, Man wanted his own money, news at 11.
Hope you did it before they had to report you for smurfing.
http://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_015.htm
Yikes!
Your fault for banking at Stupid Bank. Last week I took 12,3k out of Wells Fargo in cash, no calling ahead. No problem; I just had to wait for them to complete the cash report to Big Brother, then my cash was mine.
Close out your account in Stupid Bank by getting a cashier's check for the entire balance, walk down the street to some other bank that has free checking, deposit said check, wait a few days for it to clear, then go get your cash. Easy peasy lemon squeezy.
whatever you do, keep those banks in bizness lads!
Why do you not go to 3 branches and cash something like $1,700. at each branch.
Would you get in an elevator that only had two buttons, "plunge" and "soar"?
No sense in wasting precious time, no?
I miss the days of people shitting their pants on 3-5% daily moves
That also included down days back in 2008. Now the 3-5% moves are only up days. It is not natural for the Market never to correct.
What a dumbass market. Yeah Thats a wrap on QE.
And thats what Bernank has really done, make the markets a complete obviously rigged joke no serious person would ever touch any more than a known corrupt rigged casino.
Sheep can you clear something up for me because I really think we have the same idea here...Forget stocks for a second...because we both agree it's a joke. If you believe that QE is toast...and it may be...what's your take on metals..do they drop? Or does the dollar crumble despite no added stimulus?
Ive got metals, but I dont care much about the 'price' day to day because to me the PM's are there for after the dollar becomes non reserve currency, to me anyway. My whole point here is while everyone thinks theyve got the FED's next moves all figured out, it will really be something no one saw coming at all, like 2008 suddenly the FED saw overnite huge electronic banks runs and that unhinged everything...this time who knows it could be blamed on AMP attack or internet attack. But I think all those who think theyve got it all figured out and we just 'muddle thru' will get surprised.
I am placing my bets but I am far from certain I have anything figured out. Although I do error on the side of Bernanke and these guys being idiots more than evil.
As far as muddle through that is some MSM term that means nothing to people either suffering big time or the few that are prospering from this mess. I don't know anyone muddling through.
Sheep is right, it will be something from left field. However, they actively discourage Au, Ag, and Pb ownership, so that is where I am at.
Agree.
http://adask.wordpress.com/2009/02/15/the-first-electronic-bank-run/
Go read the story of Midas. It's not far wrong. Metals will drop right along with other commodities in "the big reset". It is a commodity. If I could store it, I'd be buying oil instead of metals, because oil has utility and demand. There's no demand for gold when everybody around you is out of food, water, electricity and heating oil.
But Ag and Cu have utility and demand, don't they?
This market is just plain silly. It makes me want to eat a banana & dance around my computer !
Please thank these Senators for cosponsoring 'Audit The Fed', S. 202 in the Senate.
Sen Barrasso, John [WY] - 10/6/2011
Sen Blunt, Roy [MO] - 10/6/2011
Sen Boozman, John [AR] - 5/24/2011
Sen Burr, Richard [NC] - 10/6/2011
Sen Chambliss, Saxby [GA] - 7/25/2011
Sen Coburn, Tom [OK] - 10/6/2011
Sen Cornyn, John [TX] - 3/28/2012
Sen Crapo, Mike [ID] - 9/6/2011
Sen DeMint, Jim [SC] - 1/26/2011
Sen Grassley, Chuck [IA] - 10/31/2011
Sen Hatch, Orrin G. [UT] - 5/24/2011
Sen Heller, Dean [NV] - 6/22/2011
Sen Inhofe, James M. [OK] - 10/6/2011
Sen Lee, Mike [UT] - 3/1/2011
Sen McCain, John [AZ] - 10/31/2011
Sen Risch, James E. [ID] - 10/6/2011
Sen Rubio, Marco [FL] - 10/6/2011
Sen Thune, John [SD] - 10/6/2011
Sen Vitter, David [LA] - 1/26/2011
Sen Wicker, Roger F. [MS] - 10/6/2011
Where is your Senator?
MIA?
GIVE THEM A CALL.
My Senator? Hmmm.... let me see, just where did I put them?
OMG, someone stole my Senators!
This is an outrage!
Could be worse... you could misplace your cheese.gov
McCain is firmly in the pocket of the banks, and has been for decades. That he's sponsoring this is a huge red flag to me, I would presume there's some very bank/Fed friendly in this that's not getting publicized.
Good point. I also see Marco "PIPA" Rubio.
Do we even have a chance?
Note Rand Paul MIA. That mean's it is a BS bill.
He is the *Sponsor* of the bill.
http://www.opencongress.org/bill/112-s202/show
That's why you can't trust lists like this!
just write covered calls on yer dollar positions and fire up the bong, BiCheZ!
Hey Slewie you just hit on something I was talking about with someone today. Can you please expand on your thoughts?
P.S I have been on here for a while and am not playing ignorant. Options is not my game.
that thought is already fully expanded
you could also sell covered puts, but many find that incomprehensible~~shorting a stock or a contract and then selling a covered put option, which is just the flip side of: buy the stock/contract and sell a covered call
both are done for "income" on the "asset position" conceptually
these are games with entire "arrays" of data and possible plays; puts and calls are simple derivatives "contracts" with a buncha greek-letter aspects
it's not a bad game; kinda like golf, imo
"...Stocks and commodities slid for a second day as weaker demand at a Spanish debt auction and the U.S. Federal Reserve’s reluctance to add more monetary stimulus fueled concern the global economic recovery will slow..."
http://www.bloomberg.com/news/2012-04-04/asian-stocks-australian-dollar-drop-on-fed-won-falls.html
A rising stock market is near and dear to Bernanke.
I say he has no choice but to turn the money fire hose on again....
They never turned it off. The reactions are to TALK. The sheep are easy to spook. Just make a loud noise and they change direction.
What is this "market" people keep speaking of?
-120 DOW points gets labelled as a 'plunge'...not to mention 'biggest plunge'? Come on give me a break this is just silly now.
does look a bit a "plunge" on a one-month chart, plus they allowed the fucker TWO FULL DAYS down (vs normal 1.5); ha ha ha, and meantime futures ramping back up as we speak. Can't have THREE down in a row! Catastophic
Steak knives and parking meters.....
Truck load of razor blades. WTF razor blades? YEA you know how many razor blades are in a semi truck??
More than there would be of light bulbs. First one is charged by weight, second by volume.
every good article needs a theme song
http://www.youtube.com/watch?v=ZarmRLa2p9Q
I wonder if our money even matters anymore. Maybe the markets are all just kabuki and a show now, rather than a way to support capitalism. Maybe for a few million bucks a day they can do this show with algos and trends and midgets on trikes and fat ladies with beards and it is all just to reassure the public. Mean while the Jack of Hearts escapes through the back door as a Colt revolver clicks.
Looks like someone blinked an took profits realizing that Retail is not going to come in and Buy their Shares.
When you think about it how many Retail Investors buying 1 Share of Aapl Stock will it take to bail out just one Hedge Fund with 10 Million Shares? Probably everyone in the United States.
Price undercut the monthly McGinley Dynamic today on IWM. That last happened in July 2011.
Past performance is no guarantee of future returns.
Bernanke has created a MONSTER. He has funneled Trillions to the Banks but in doing so he has truly impoverished the American People. Wall Street took his Trillions and bought Oil, Food and everything that would raise the prices on the average American Family. Putting them in a position of cutting all discretionary spending and pulling all of their Money out of their 401K's and savings accounts. Now the Corporations are suffering as the Buyers of their products have no money and are adjusting their lifestyle to Austerity.
It really does not matter what Bernanke thinks about how well the Economy is doing. The thing that really matters is what Family's are doing to survive. As that will lead the direction of the Economy going forward. If the average American goes on a spending diet and does not spend a penny, no matter what it will bring the Economy to a HALT.
The biggest problem with Bernanke's printing which has substantially raised prices for all everyday items is that American are learning to live on less and cut all non essential expenses. It was a trait that started in the Depression where people learned to live on almost nothing and continued the habit thought their lives (for 70 to 90 years). Being Thrifty became a way of life and was honored as a favorable trait.
In essence Bernanke has done the exact opposite of stimulating the Economy. He has taught the American People how to reduce debt, live on less and reduce spending.
...American are learning to live on less.
For sure this is true.
"Where's retail?" is going to have far greater implications than investors into the equities markets.
This is both good and bad news.
Waterfallsparkles
I am not inclined to accept this paradox of thrift as an unintended consequence. It seems that mitigating consumer spending must have some benefit in their formula since this is clearly happening. Its just not clear to me how allowing a very select few to accumulate all the NEW money fits in long term "economic" stability.
Something is really off. Whatever the Bernank has taught the American People, I doubt its by accident.
I just wish its collection agency would stay the fuck away from mine own wages.
I think Consumer Thrift is an unintended consequence. This is because Bernanke wants the Stock Market to go up. If the Corporations that have their Stock traded on the Stock exchanges start to suffer losses because Consumers are not Buying their products and their inventorys begin to build, then their Stock prices will go down which will directly affect the price of Stocks. This will directly affect the Stock Market and trading profits of the Banks that Bernanke is trying to protect. Plus, as has been previously been noted is that if people are withdrawing their Money from the Market to protect the principal they have left or to live on, then the Banks and Traders will have no one to pawn off their Shares to.
Long corn cobs & Sears Roebuck catalogs.
July 5th, John Galt day! Spawned right here
on ZH.
Nobody goes to work or spends any money!
Equals no taxes paid.
Confucius says: sell in May and go away..
This is merely a precursor to what is coming. They are running out of pension funds to raid, and soon they will have to start printing money at a far greater rate, even more so than they are now. That is when it is all going to implode.
If you'd like to not be a victim then read this book and take action.
http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref
$USD peak soon
http://change-in-trend.blogspot.com/2012/04/thursday-5-april-2012.html