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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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Wed, 07/27/2011 - 11:33 | 1497998 r101958
r101958's picture

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

Wed, 07/27/2011 - 11:42 | 1498045 Vint Slugs
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.

Wed, 07/27/2011 - 12:09 | 1498155 slaughterer
slaughterer's picture

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

Wed, 07/27/2011 - 11:33 | 1497999 Everybodys All ...
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.

Wed, 07/27/2011 - 11:34 | 1498006 r101958
r101958's picture


Wed, 07/27/2011 - 11:33 | 1498001 JohnG
JohnG's picture

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

Wed, 07/27/2011 - 11:36 | 1498012 Hearst
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.

Wed, 07/27/2011 - 11:40 | 1498038 JohnG
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.

Wed, 07/27/2011 - 11:57 | 1498095 Hearst
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.

Wed, 07/27/2011 - 12:24 | 1498222 JohnG
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.

Wed, 07/27/2011 - 12:56 | 1498338 mr.glitch
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.

Wed, 07/27/2011 - 18:40 | 1499715 Hearst
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.


Wed, 07/27/2011 - 11:36 | 1498018 r101958
r101958's picture

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

Wed, 07/27/2011 - 11:34 | 1498007 inkarri9
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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?

Wed, 07/27/2011 - 11:35 | 1498010 the not so migh...
the not so mighty maximiza's picture

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

Wed, 07/27/2011 - 11:36 | 1498014 lizzy36
lizzy36's picture

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


Wed, 07/27/2011 - 11:43 | 1498048 JohnG
JohnG's picture

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

Wed, 07/27/2011 - 11:43 | 1498051 sagerxx
sagerxx's picture

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

Wed, 07/27/2011 - 11:55 | 1498085 Blano
Blano's picture

Yep too skinny.

Wed, 07/27/2011 - 13:39 | 1498492 Doyle Hargraves
Doyle Hargraves's picture

That meth is some bad shit...

Wed, 07/27/2011 - 12:05 | 1498134 SheepDog-One
SheepDog-One's picture

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

Wed, 07/27/2011 - 11:37 | 1498020 Zing
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.

Wed, 07/27/2011 - 11:39 | 1498030 mynhair
mynhair's picture

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

Wed, 07/27/2011 - 12:13 | 1498112 slewie the pi-rat
slewie the pi-rat's picture

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

50-50 BiCheZ!

Wed, 07/27/2011 - 11:38 | 1498022 Tortfeasor
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.

Wed, 07/27/2011 - 11:38 | 1498024 Subprime JD
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.

Wed, 07/27/2011 - 11:39 | 1498033 Jason T
Wed, 07/27/2011 - 11:40 | 1498036 r101958
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?

Wed, 07/27/2011 - 11:41 | 1498041 Hansel
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.

Wed, 07/27/2011 - 11:42 | 1498042 Farmer Guy
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"



Wed, 07/27/2011 - 11:43 | 1498043 r101958
r101958's picture

They haven't watched enough Monty Hall reruns.

Wed, 07/27/2011 - 11:46 | 1498061 wombats
wombats's picture

The ball just keeps on bouncing...

Wed, 07/27/2011 - 11:46 | 1498062 zebrasquid
zebrasquid's picture

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


Wed, 07/27/2011 - 11:46 | 1498063 sabra1
sabra1's picture

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

Wed, 07/27/2011 - 11:47 | 1498067 wombats
wombats's picture

The ball just keeps on bouncing...

Wed, 07/27/2011 - 11:54 | 1498072 wombats
wombats's picture


Wed, 07/27/2011 - 11:53 | 1498073 azzhatter
azzhatter's picture

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

Wed, 07/27/2011 - 11:53 | 1498074 azzhatter
azzhatter's picture

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

Wed, 07/27/2011 - 11:53 | 1498076 SilverRhino
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.

Wed, 07/27/2011 - 11:54 | 1498082 bob_dabolina
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.

Wed, 07/27/2011 - 11:55 | 1498086 Bastiat
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.


Wed, 07/27/2011 - 11:55 | 1498087 Dakota Thunder
Dakota Thunder's picture

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


Wed, 07/27/2011 - 11:59 | 1498105 bob_dabolina
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? 

Wed, 07/27/2011 - 12:06 | 1498139 slewie the pi-rat
slewie the pi-rat's picture

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

Wed, 07/27/2011 - 12:16 | 1498181 bob_dabolina
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.

Wed, 07/27/2011 - 12:33 | 1498249 slewie the pi-rat
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!

Wed, 07/27/2011 - 11:56 | 1498088 mynhair
mynhair's picture

Tank this pig!  I want some bargains!

Wed, 07/27/2011 - 11:57 | 1498094 Blano
Blano's picture

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

Wed, 07/27/2011 - 11:58 | 1498097 mynhair
mynhair's picture

Want to pay off the debt?  Put Reid in a carny dunk tank game and charge $100 a throw.

Wed, 07/27/2011 - 23:08 | 1500235 StychoKiller
StychoKiller's picture

Put some piranha in the tank, and thumbtacks/needles on the ballz, then you could charge $1000/throw!

Wed, 07/27/2011 - 11:58 | 1498100 slaughterer
slaughterer's picture

"Some men" = the American Psychos at Goldman/JPM and in DC. 

Wed, 07/27/2011 - 11:59 | 1498104 wally_12
wally_12's picture

Isn't anyone watching the YEN? It Keeps droping.

The radioactive poop pile is starting to stink over the tarp.

The Japanese are buying dollars hoping to stop anyone from noticing the stink.

Wed, 07/27/2011 - 12:00 | 1498108 Caviar Emptor
Caviar Emptor's picture

Know what gets me mad? 

We just wasted over two and a half years without any major restructuring of the economy. Now things are worse and more difficult than they were even back then because of obscene expenditures on keeping the stock market rising and bankers wearing Gucci. 

There's no margin for error or pretense left. The serious business of governing has been not only neglected but perverted. And the country will be paying the heavy price not just for years but for decades and into future generations. Check-mate you as*holes in DC! There isn't a one that sees beyond his own wallet. Greed is no longer good. 

Wed, 07/27/2011 - 12:02 | 1498118 rwe2late
rwe2late's picture

Neither team can do do anything to end the borrowing because of the other team.

It's a plutocratic stalemate. (so sad, ... sniff)

And just when TPTB were about to make sacrifices (if only they could).


Federal Reserve handed out $16 TRILLION to banksters (i.e. themselves)  

Or maybe end the $7 trillion wars and occupations (spreading stability).

And failing all else, the 0.1% was willing even to put their SocSec on the chopping block, because everybody knows the anticipated $1 trillion SS shortfall over the next 40 years is what's making the US insolvent.

Indeed, we may just have to put everything on hold until the next election.

Then the voters can again decide who should get the public relations job for the corporatocracy, the red team or the blue team.

Wed, 07/27/2011 - 12:09 | 1498157 Caviar Emptor
Caviar Emptor's picture

I have a theory: without the wars gasoline would be about $1.25/gallon. Because of the forces of supply/demand and competition with a dramatic rise in energy efficiency and innovation across the board

Wed, 07/27/2011 - 12:03 | 1498123 youngandhealthy
youngandhealthy's picture

It will be the Reid plan and a re-election of Obama 2012. I'm sure about that know. Tea Party are shooting themselves in the foot and head.

Wed, 07/27/2011 - 12:07 | 1498149 bob_dabolina
bob_dabolina's picture

UBS analyst?

Wed, 07/27/2011 - 12:35 | 1498252 firefighter302
firefighter302's picture

Re: Reid Plan. (lol)

Young and Healthy, since you are sure the Reid bill will make it to law,  what passing vote totals are you seeing in the House of Representatives for the Reid bill?



Wed, 07/27/2011 - 12:45 | 1498304 youngandhealthy
youngandhealthy's picture

218   :-)

Wed, 07/27/2011 - 13:14 | 1498399 tsx500
tsx500's picture

stop drinking/smoking pot before noon !  

Wed, 07/27/2011 - 12:10 | 1498161 SheepDog-One
SheepDog-One's picture

All BS dancing on the head of a pin while Rome burns to the ground. 

Wed, 07/27/2011 - 12:15 | 1498179 NumberNone
NumberNone's picture

If deal was done they would have ran to the microphone in order to be the first to announce it.  Reid and Boehner in a slap-fight over who gets to speak first. 

Wed, 07/27/2011 - 13:36 | 1498481 Major Priapus
Major Priapus's picture

Here is a naive question from a perplexed Canuck:

From Obama's POV -  winning the last election was tantamount to accepting a poisoned chalice given the state of the economy.


Ideologically,  Obama is being pushed to the wall by his economic high priests of Keynesian catechism by increasing the debt in fashion that would elicit howls of horror from von Mises and his Austrian acolytes.


So, have the Tea-Party hard-liners inadvertently proffered Obama a Get-Out-Of-Jail-Card-Free card?  Obama can now allow the train-wreck to proceed in fast-forward instead of slow-motion and blame it all on the Tea-Party.  The added benefit of any possible default would be stiffing the Chinese with the tab!


Nah - c'mon - that's gotta be too far out there in X-File territory.

Wed, 07/27/2011 - 13:44 | 1498510 youngandhealthy
youngandhealthy's picture

Answer: Yes

Wed, 07/27/2011 - 23:12 | 1500245 StychoKiller
StychoKiller's picture

Obamatron's decision tree...

Of course, there's always NONE of the above available!

Wed, 07/27/2011 - 14:20 | 1498651 Caggge
Caggge's picture

The American people need a press secretary. He needs to hold a conference and tell our "leaders" they have one day to get a deal done or we are voting all of them out of office. The are playing politics to get elected....hurt the other guys shot of getting re-elected. None of them are "leaders" in any way, shape, or form.

Wed, 07/27/2011 - 14:19 | 1498655 gangland
gangland's picture


The Political Theater and the Debt Ceiling Crisis: Are We Being Had?

by Dr. Paul Craig Roberts


"...Obama has said that he will not resort to the various powers open to him to keep the government running should Congress fail to deliver a debt ceiling increase.

This is a suspicious statement, as it is not credible that a president would leave troops at war unpaid and without supplies, Social Security checks unsent and stand aside while the US dollar collapses and the credit rating of the US government is destroyed.

There are national security directives and executive orders already on the books, as well as the 14th Amendment, that Obama can invoke to set aside the debt ceiling.

Congress would sigh with relief that Obama had prevented the lawmakers from destroying the country.

So what might be going on?

One possibility is that the political theater is operating to bring about otherwise politically impossible cuts in the social safety net.

If the drama continues to the absolute deadline without a deal, Obama, who perhaps favors cutting the safety net as much as do the Republicans, would have to accept the Republican package in order that the troops are not cut off from supplies, Social Security checks can continue to go out, and the dollar be saved.

Having opposed the Republicans to the last minute, Obama can say that he had no other recourse.

What American wants the troops deserted on the field of battle and the elderly without groceries? Who other than the rich can stand the higher prices from dollar devaluation?

It would be a perfectly orchestrated scenario for getting rid of the New Deal and the Great Society that use up money that could be spent on wars and bailouts and tax cuts for the rich.

If the American public is not sufficiently softened up by August 2, the political theater can continue with temporary debt ceiling increases until things really begin to crack.

On July 15 S&P put all AAA-rated insurance companies on CreditWatch citing ties to the US sovereign credit rating. On July 25, the US dollar fell to a new low against the Swiss franc, and gold reached a new high.

Some more of this, and the public will see benefit cuts as preferable to economic armageddon.

If Bush and Cheney were still in office, they would use the debt ceiling impasse to seize more power from Congress.

Obama, however, might be so well aligned with financial interests that the opportunity he sees is to cut Social Security, Medicare and education loose from the federal budget.

Then Wall Street can privatize them."


Wed, 07/27/2011 - 14:47 | 1498777 Major Priapus
Major Priapus's picture

so you are suggesting my earlier post is in fact correct:

... the Tea-Party hard-liners have inadvertently proffered Obama a Get-Out-Of-Jail-Card-Free card?  Obama can now allow the train-wreck to proceed in fast-forward instead of slow-motion and blame it all on the Tea-Party.  The added benefit of any possible default would be stiffing the Chinese with the tab!


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