Washington Soap Opera Update

Tyler Durden's picture

Apparently the GOP has cancelled its press conference scheduled for 10am, however now we have the democrats taking their place at  11:45 as Harry Reid is now expected to hold a conference 15 minutes before noon. In other news, there is some unconfirmed and likely 100% wrong rumor that a debt deal has been reached.

Update to the update:


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r101958's picture

Well, somebody took the hatchet to commodities and pumped the equities already.

Vint Slugs's picture

The debt deal rumor might be wrong but the markets are telegraphing what they're going to do when the deal is done: stocks and bonds up and commodities/PMs down.  The old standby approach - buy the rumor sell the news.

slaughterer's picture

Well past high noon, and no sign of Dirty Harry.

Everybodys All American's picture

The market is totally controlled by rumors and in no way looks real. I know this is not new to most readers here but it is exceeding even my low expectations.

JohnG's picture

Thought so.  Who the fuck is buying dollars by the bucket?

Hearst's picture

Most likely central banks.  They have a vested interest in keeping the global ponzi money scheme alive.  Same ones that have been sitting on precious metals all week (month, year, decades) to prevent them from rising to real market prices.

JohnG's picture

Probably right there's no one else that could do that this fast.  Commods getting slammed, everything but cotton.  I smell something else as well, something is wierd here, besides debt ceiling farce.

Hearst's picture

Allowing Gold to spike $50 or Silver up $3-$4 dollars in one day means panic mode to them in this current enviroment.  While they will never admit that both metals are true money, the world knows it.  Why nobody has jumped on the last deliverable 26.7 million oz of Silver (acording to Harvey Organ) over at the Comex is a mystery.  My guess is any attempt to corner the last little stack of Silver spells a contract on your head.

JohnG's picture

Yes, but I still don't understand why some hedge fund doesn't just buy the comex.  They could.  But why not?

The last time we saw silver spiking 10% per day for a week ended in a 13% massacre in 6 mins in the middle of the fucking night.  Among other nefarious bullshit by the CME criminals.  And why the fuck were the margin requirements NOT lowered?

So much that makes NOOOOOO sense lately.  Feels wrong.

mr.glitch's picture

It all feels wrong because they are going to pummel silver again.  Think about it...More and more people are likely buying silver or "investing" in SLV.  The best way to make sure price stays suppressed is to cause a stampede to the exits via panic and get people scared again.  The next downdraft will be just as furious as the last IMHO since that will prevent some people from ever speculating again.

I can't imagine how many "upgrades" we will see when the deal is reached, sending equities up another 5% and silver down at least 15% from current levels in the short term.  The dollar will bounce off the lows and might overshoot with more strength than we believed because the rating agencies will NOT downgrade.  More scare tactics at work to get people into gold and silver now with the intention of pulling out the bottom.

My floor is $30 after the debt deal is reached with another attempt at $40 happening in October.  The smack of silver with just a rumor of a deal is enough to bet on the big boys again, and that means as many puts as you can stomach.

Anyone who believes gold and silver rocket after a deal is not seeing the bigger picture...They only rocket if default, otherwise watch out below.

Good luck...Long physical silver and gold, hedged via more puts than I probably ought to be holding.

Hearst's picture

Dips in Silver however furious from intervention will only be bid up again but in a faster pace.  Remember 2008 and how long it took for Silver to scale the wall back up?  Now the most recent (major) smack down, courtsey of OBL's demise, Silver has rebounded in just a couple months.


As far as timing go, yes I would agree that after a deal is struck between the right and the left they will both show us their middle fingers.  They will buy the hell out of new naked short positions in both Gold and Silver with their newly borrowed money and both metals might come down 10%.  But this will be short lived.


r101958's picture

The Fed just reimbursed all TBTF's for all the treasuries they bought.

inkarri9's picture

In other, other news, there is some unconfirmed and most likely 100% wrong rumor that Big Foot has been captured.  Maybe he helped broker the debt deal?

the not so mighty maximiza's picture

yaaaay, credit card limit increase approved. more debt for everyone!

lizzy36's picture

Rumor: i am her doppleganger (probability same as debt ceiling deal being done)


JohnG's picture

Pleased to meet you Giselle, what are you doing this weekend? :)

sagerxx's picture

Here's hoping you're not her doppleganger. One look at the pic on the right and I think "Auschwitz"...

SheepDog-One's picture

Damn cant someone throw that poor Auschweitz victim a damn burger?

Zing's picture

A deal is going to be made guys.  Politicians won't do something that is harmful to their quest to gain or retain power.  I am more worried about debt levels than the stupid debt ceiling.

mynhair's picture

No deal.  Reid wouldn't know the truth if it bit his dick off, if he still has one.

slewie the pi-rat's picture

they either raise the ceiling or they don't; same as getting laid

50-50 BiCheZ!

Tortfeasor's picture

Debt deal announcements won't come from Reid, at least nothing that actually sticks.  Boehner is the key to any deal, and the Tea Party is the key to Boehner.  I still think no deal happens, or at best the Senate begrudgingly passes Cut, Cap and Balance because that's already passed the House.

Subprime JD's picture

They're so desperate to hold the 1250 level on the S&P as they are well aware that a break to the 1000 level would spell doom for the thousands of underwater local gov pension funds. While they have been able to successfully prop up the funds for the past two years their time is running out. Eventually the market will fall to its real level (real terms) and the pension beneficiaries will have to eat their peas.

r101958's picture

The rumor is wrong because they haven't announced the deal yet (cutting 25 billion a year for the next 10 years). They have to give the TBTF's enough time to short commodities and take profits. How else will they be able to afford those campaign donations?

Hansel's picture

These "deal" rumors are so fucking stupid.  Both houses of Congress have to pass any deal, and the President has to sign it.

Farmer Guy's picture

Meet the RDT= Rumor Dissemination Team, new arm of the PPT.

Our Slogan: "When your (marketsaving) rumor absolutely, positively has to ramp the market-STAT"



r101958's picture

They haven't watched enough Monty Hall reruns.

wombats's picture

The ball just keeps on bouncing...

zebrasquid's picture

Reid coming on at 11:45....recalls High Noon, and, more apt, The Doomsday Clock...


sabra1's picture

again, all rumours come out after the european markets close!

wombats's picture

The ball just keeps on bouncing...

wombats's picture


azzhatter's picture

Harry has to hurry, I believe he has standing appointment to blow Obama at High Noon

azzhatter's picture

Harry has to hurry, I believe he has standing appointment to blow Obama at High Noon

SilverRhino's picture

Because some men aren't looking for anything logical, like money. They can't be bought, bullied, reasoned or negotiated with. Some men just want to watch the world burn.

bob_dabolina's picture

Wow, those were some fightin' words where I come from. 

That was some of the harshest partisan rancor I've heard to date.

Bastiat's picture

Lots of money made on these rumors.  Also the algos are being trained on how to react when (if) a deal gets done.


Dakota Thunder's picture

They mention the cbo downgrade of Boener's bill, but not Reid's. 


bob_dabolina's picture

I cut back on my spending, live within my means, and balanced my budget. 

Is Harry Reid implying that people like me whom expect the same from the government are extremists? 

slewie the pi-rat's picture

sounds like you may have max'd out your credit, bob_d

bob_dabolina's picture

Looks to me like the government did that for us all

Liability per taxpayer - $1,027, 052

Total debt per citizen (what everyone person owes) - $176,156 

This is with: 

Total peronal debt @ 51,440 per citizen and $45,105, 310 on food stamps. 

If you had a 100% tax on every penny of every billionaire in this country do you know what you could pay off? Our fiscal year deficit (about 1.5 trillion) That's it. 

It's a spending problem, not a revenue probem. 


slewie the pi-rat's picture

you're young, bob_d.  

spending problems are for the young. hey, i'd had those job thingies, too!

just wait till later.  holy shit!  not a revenue problem? 

if the goobermint hadn't hired so many people to make sure nobody in the private sector could do anything unless too big to get fuked with, we might have had a chance.  who could have known?

if you want to address this freaking budget, why limit yourself? people will quote economic theories about raising revenues being so counter-productive, economically, as to be "off the table" but those theories are for a normal economy. 

the kleptocrats are extremely reluctant to be taxed.

tough fuking shit, amigo!

any port in a storm!

mynhair's picture

Tank this pig!  I want some bargains!

Blano's picture

I look forward to the updated update of the update, updated.