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What's Wrong With This Picture?

Tyler Durden's picture


Central Planning is #winning because this time is different.

Answer? (here or here maybe)


(h/t Andy Yorks)


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Mon, 03/12/2012 - 14:27 | 2247898 Thamesford
Thamesford's picture

I see a "Grim"!

Mon, 03/12/2012 - 14:31 | 2247923 trav7777
trav7777's picture

nothing's wrong with the chart...the fed is buying the curve.  wtf is so hard to figure that ben is doin EXACTLY WTF ben SAID he goin do?

Mon, 03/12/2012 - 14:33 | 2247931 Tyler Durden
Tyler Durden's picture

Hence: "Central Planning is #winning because this time is different."

Mon, 03/12/2012 - 14:38 | 2247958 clones2
clones2's picture

Simple explanation is that the latest printing has moved that money into equities....

Without excessive printing...  Money in the past has moved out of treasuries and into equities...

Mon, 03/12/2012 - 14:46 | 2247989 fonzannoon
fonzannoon's picture

Look at them smush the vix today. I bet they did it just to get a laugh at all of us.

Mon, 03/12/2012 - 14:55 | 2248023 resurger
resurger's picture

of course ....



Mon, 03/12/2012 - 15:07 | 2248061 I am more equal...
I am more equal than others's picture

Based on that data it would appear the market is 14% rich over credit.  Wonder which one gives first?  A massive inversion of both?  Ride-em cowboy.

Mon, 03/12/2012 - 15:09 | 2248068 Pinto Currency
Pinto Currency's picture



The Fed didn't like the old curve so it is starting a new one.

You can do that until the reactor explodes and pitchfork sales go through the roof.

Then the Fed will identify Iran as the problem. 

Rubber soled shoes are increasingly en vogue at the Fed although few discuss this new fashion trend.

Mon, 03/12/2012 - 18:30 | 2248789 Xkwisetly Paneful
Xkwisetly Paneful's picture

The FED are like the Globetrotters when it comes to final record.

they are just more brazen than ever,

instead of coercing someone else to wipe his ass he is doing it himself.

DEC 2008 the entire world times two was lined up to wipe it for him and pay him for the pleasure.



Tue, 03/13/2012 - 01:06 | 2249635 Harlequin001
Harlequin001's picture

It looks like a penis...

I've got gold, so is there something in this visual pornography that I should give a toss about?

because at the moment I am totally fucking toss-less...

Tue, 03/13/2012 - 03:45 | 2249717 Cadavre
Cadavre's picture

A very happy penis, indeed, anticipating a well earned relief despite the implications (whatever our handlers decide those will be).

The information would be more usable (at least a moi anyway) were it a line chart with both an S&P signal and a 3 mth Yield signal originating at zero %, and then marking "relative" percent changes as time function.

The DoT offers EOD yield histories (XML downloads) here.

Mon, 03/12/2012 - 21:51 | 2249302 Sam Clemons
Sam Clemons's picture

Any chance we could see the Fed flatten the entire curve to near zero?  An inverted yield curve where the short end is .25% and the long end is 0%.

Tue, 03/13/2012 - 03:21 | 2249711 Cadavre
Cadavre's picture

The Fed didn't like the old curve so it is starting a new one. +1

All confused - like yield (total rate of return, or period interest income +/- period asset appreciation/depreciation mark up/down to principal balance), versus a plain vanilla interest rate.

A 3 month treasury (bullet maturity) is just last 3 months of a bond issued 29 years and 9 months ago.

Yield is a function of price to par and income. All that has to be done is trade the bond, and that price will reset it's yield.

Upward trending yield means a loss of demand (price weakness).

IF the FED short sells it's bonds, given that at one FMOC, the "Span" suggested the FED invest in UST "put" derivatives, the FED can profit even if it short sells some of it's UST positions. The Treasury market, when we consider the positions the FED holds, can be manipulated by a call from Ben to JPM or GS - and that's all it would take.

Thats the problem with a monopolistic capital market. That's what the FED is. They print, indexes climb, they buy, indexes fall. Market manipulation by any other name is still market manipulation.

So why the f*ck ain't the MIB's calling it "market manipulation"?

Mon, 03/12/2012 - 20:20 | 2249019 Cadavre
Cadavre's picture

Or it could be the timing of Wanta / Ameritrust 15 Trillion of fake gold UST gold backs coupon redemptions ...

First review this U-Tube video of Lord James of Blackheath's Feb 12 2012 indictment of HSBC regarding a 15 Trillion smakaroo fraud. BTW, rumors of Lord James death are not true.

Now recall the ZH story regarding the "box" of 6 Trillion (USD) in 1934 US gold bearer bonds with coupons attached and a 52 star flag stenciled (thats right 52 stars) on the box found n the basement of the Chicago FED.

Now this is part where the affects of the "Ecstasy" begin to wear off and we discover the bowl of tasty dessert pudding is nothing more than a chilled diarrhea stool sample ..

Below is one of the strangest stories in financial history, one involving the US government lying about hundreds of thousands of tons of imaginary gold, illegal wire transfers and loans totalling $15 trillion.  The video, from the House of Lords, is amazing in itself. 
What it doesn’t express is where the money came from though Lord James of Blackheath proves conclusively that an effort was made to say it came from a gold reserve in Brunei that, in fact, never existed.

Bush, Fed, Europe Banks in $15 Trillion Fraud, All Documented

The link cites a story from Gorfon Duff at Veteran's Today. Quit going to the VT moi-self when the Gord shared a byline on a story claiming that the WTC assets were brought down by a nuclear detonations. Anyone that has hung round NYC knows that city has more isotope sniffers than Israel's bomb factory under the Dimona reactor.  Most of Gordon's reader's were willing to let that bit of conjuncture-d conjecturing crony comedy journalism pass like a small kidney stone, after all, he did share that particular byline with a parishioner of  the Israeli State Cult. But later, and not by much, the Duff, all by his lonesome penned a story in VT in which Father Gordo blessed the planned genocide of Libya on the grounds it would "Save 1000s of innocent lives". Note, it only required NATO to kill 10,000 Libyan  innocents  to save 1000 Libyan innocents. But whose counting, well Gordon, along with Lord James, is counting the Trillions behind the Wanta (sole owner of Ameritrust Stock) and Ameritrust 's participation in what looks to be a potato so hot noone constitutionally obliged to touch it will touch a 15 Trillion Dollar Ponzi involving non existent Gold transfers to cover up some journal items on HSBC's balance sheet. Some excerpts ..

At surface, it appears we have stumbled upon the largest terrorist organization in the world and have found original documents tracing its funding to the Secretary of the Treasury and the Chairman of the Federal Reserve, two of the top financial officers in the US.  A cursory review of terrorism statues in the US indicate that all transactions we will learn about are, in fact, to be assumed “terrorist money laundering” and that the only thing preventing the immediate arrest of hundreds of top financial officials is their political connections alone.

Before we go further, with the understanding that the only thing preventing the immediate arrest of hundreds of top financial officials, is the metamorphosis of a forming fascism in it's infancy, we must recall that since Sep 2011, over 270 executives have resigned enmass from marquis banks, funds and investment houses (scroll up to start at top).

Love this one as much a moi? ....

At no time has the Federal Reserve Bank of New York been authorized to hold the funds indicated

or, how about this `un ...

... they did hold such funds and transfer them in a manner as to obscure their origin by using HSBC and the Bank of Scotland.  This process, seemingly involving Alan Greenspan, Timothy Geithner and others would appear to be “money laundering” until some other explanation were found.  None has been offered.

this is juicy ...

The “collateralization” of these funds, being 750,000 tons of gold, is proven to be fantasy.

There's plenty more at the link. Guessing we been moved from Emerald City to the feed lots outside Tungsten City. Finally, we have purpose as entrée for visiting bank colony viceroys and dignitaries!

Edit: One must ask what the affect of a non existent 750,000 ton stash of gold added to global inventory would have on the gold spot. It seem it would supress the shit out of gold prices. It would also follow that if the path implied by this story leads to a recognition that global gold inventory is overstated by hundreds of thousands, or any fraction thereof, that the price of gold would sky rocket to the edge of the known universe.

And where are those 270, to date, bank resignations are scurrying off to and with what assets are the scurrying with? Inquiring minds want to know as their blades slide across wet stones.

Mon, 03/12/2012 - 21:47 | 2249279 i-dog
i-dog's picture

Yep. The game played in the Salle Privée---with no table limit and unlimited credit---is quite different to those played on the main floor or out in the pokey halls.

Mon, 03/12/2012 - 15:10 | 2248066 Pinto Currency
Pinto Currency's picture


Mon, 03/12/2012 - 15:27 | 2248118 greased up deaf guy
greased up deaf guy's picture

i bought one april vix $30 call for $1.20 just for shiggles today anyway... oh, and 1,000 remington 9mm rounds at the local gun show this weekend. gotta break my new addition to the family in :).

Tue, 03/13/2012 - 03:30 | 2249713 Cadavre
Cadavre's picture

How many rounds (or clips) can the new family member continually fire before the barrel becomes so hot misfires or pressure losses begin?

Mon, 03/12/2012 - 18:30 | 2248785 I should be working
I should be working's picture

The VIX is dead because no one is trading this market and no one is trading it because it's rigged.

Mon, 03/12/2012 - 20:33 | 2249068 Cadavre
Cadavre's picture

The VIX is a CBOE / Goldman signal. There is the VXO/ The VXO is alleged to be what the VIX was before Goldman became a VIX co-sponsor, but not sure if the VXO is subordinated to mini futures or any other kinds of derivative contracts.

One witnessed "leading" indicator is when the 21 HV corresponds within 1% point range of the VIX/VXO signal for several contiguous markets. All hell [seems to] break loose after a 3rd print of that pattern.

Mon, 03/12/2012 - 21:14 | 2249193 bluebare
bluebare's picture

Bring it on!  10% starter position taken today. 

Mon, 03/12/2012 - 23:38 | 2249533 oldman
oldman's picture

Hey Fonz,

I bet they do it just to spit in our faces.

Reminds me of 'Shock and Awe' in 2003

Just let the peons see who they are playing with----'More Overwhelming Force', Mr. ex-secretary of state! Pour it on, sir-----show 'em who is boss!

Maybe, I am just imagining all of this----but it seems to have a USG 'signature'----

your fucking government has no imagination------idiot child of the world----run by idiots

And years of this shit to look forward to-----drip, drip, drip to infinity

makes an oldman tired some nights                     om

Mon, 03/12/2012 - 14:41 | 2247968 Ahmeexnal
Ahmeexnal's picture

And I thought it was one of those psy test ink splash images (but with dots instead).

Mon, 03/12/2012 - 15:22 | 2248108 Big Slick
Big Slick's picture

FYI - A friend of mine who's a psychologist told me its a red flag when subject of an ink-blot test starts to use the white space instead of the ink as a description for what he sees.

(BTW I don't see dots - I see little silver eagles!!  going up!!!!)

Mon, 03/12/2012 - 18:46 | 2248836 Sokhmate
Sokhmate's picture

I see Vagina

Mon, 03/12/2012 - 19:05 | 2248891 chumbawamba
chumbawamba's picture

Who do you date?  Lindsay Lohan?


Mon, 03/12/2012 - 19:07 | 2248898 nmewn
nmewn's picture


Tue, 03/13/2012 - 05:01 | 2249744 Cadavre
Cadavre's picture

Mexican Libertads are bullion grade and much cheaper than eagles (ain't pretty but they be all silver).

Mon, 03/12/2012 - 15:23 | 2248113 JPM Hater001
JPM Hater001's picture

It wasnt?  Cause I saw a guy holding a very big gun...look again.

Mon, 03/12/2012 - 15:50 | 2248191 Sunshine n Lollipops
Sunshine n Lollipops's picture

Ohhh yeaahhh. Or maybe a rocket launcher.

Mon, 03/12/2012 - 17:41 | 2248651 UP Forester
UP Forester's picture

You mean, a bazooka?

Mon, 03/12/2012 - 17:29 | 2248613 Bastiat
Bastiat's picture

I looked through some Rorscach ink blots once in my 20's  -- everything looked like female organs! 

Mon, 03/12/2012 - 19:02 | 2248880 Dead Canary
Dead Canary's picture

Freudian slip. When you say one thing and mean your mother.

Mon, 03/12/2012 - 21:59 | 2249325 aldousd
aldousd's picture


Mon, 03/12/2012 - 17:58 | 2248706 brokenclock
brokenclock's picture

This just in from all news sources all ove the world. The fed has just obtained new super computer with front running co-location ability.

The new HFT sequence has the abality to overide and front run the front runners.  Game over for everyone.

So much for the saying "no one is bigger then the market. Ben say's "this is how I roll mother fuckey's.


Mon, 03/12/2012 - 14:49 | 2247997 whatsinaname
whatsinaname's picture

My head hurts from QE. Could you please explain the chart in simple terms ?

Mon, 03/12/2012 - 18:42 | 2248824 SAT 800
SAT 800's picture

The chart says, "we're providing more new financial tokens that necessary, so that the excesses can be used to buy into the stock market and give the appearance of a robust market". ps. my head hurts too.

Mon, 03/12/2012 - 14:53 | 2248009 LawsofPhysics
LawsofPhysics's picture



can you make the same plot from 1965 to present.  This time is definitely different, nothing left to steal, no more laws to overturn in order to make the theft any more "legal".   Watch the dollar to continue to lose relevance in all markets.  Ben can not fix this "in fifteen minutes".  The true cost of creating capital without adding any real value to the economy is coming home to roost.

banks do not want to "fix" anything least their true balance sheet be exposed, hell, they are all talking about writing down people's principle by 100K.  Bull fucking shit, banks outright encouraging fucking fraud.

Mon, 03/12/2012 - 18:03 | 2248721 JohnKozac
JohnKozac's picture

Law, it's now cool to be a Deadbeat, Flipper or Fraudster. That's the culture we live in...

Welcome to the 21st century!

Mon, 03/12/2012 - 15:48 | 2248187 Thamesford
Thamesford's picture

Of course, if it were plotted vs price the whole thing would be inverted and the current plots look like the plank Pirate Ben is making us all walk off!



Mon, 03/12/2012 - 17:21 | 2248569 max2205
max2205's picture

Behold the power of Ben. Amazing

Mon, 03/12/2012 - 17:42 | 2248653 ebear
ebear's picture

Central Planning always wins!  Right up until the moment it fails.

Mon, 03/12/2012 - 18:45 | 2248831 solgundy
solgundy's picture

that chart kinda looks like a horse running..................



When the Lamb opened the fourth seal, I heard the voice of the fourth living creature say, "Come and see!" I looked and there before me was a pale horse! Its rider was named Death, and Hades was following close behind him. They were given power over a fourth of the earth to kill by sword, famine and plague, and by the wild beasts of the earth.

Mon, 03/12/2012 - 20:02 | 2249016 disabledvet
disabledvet's picture

My beef is "I want military hardware parades with my Central Planning." Here's a good example: in the age of the "stay-cation" i think it's high time Washington DC picked up its game here...

Mon, 03/12/2012 - 20:08 | 2249031 Harbanger
Harbanger's picture

Central planning is winning because the left controls the culture.

Mon, 03/12/2012 - 23:46 | 2249541 oldman
oldman's picture

Mr. Harbanger, sir

Move along, please-------there is nothing to see unless you have a position. Thank you, sir     om

Mon, 03/12/2012 - 20:33 | 2249062 bbq on whitehou...
bbq on whitehouse lawn's picture

Winning.What else would it be?

I know many who would look at it and say what can i do about it. I say move your savings into some silver and gold they say what savings?

We are at a point that we the people no longer have control. Or direct control. Sure they can throw away everything they have happen to have built in their life time, and revolt; but to whom.  Many feel that they can still "make do? " Whatever the hell that is.

The people are learning, discovering and understanding that the world is not as it should be and could be better, its just the first dive off the cliff into the unknown makes everyone reluctent.

Keep at it Mr. Durden, there are many who are climbing there first high dive. Many want to climb back down once they see what the water looks like from that hight.

But once you make the jump you see it wasnt as high as you thought it was.


Mon, 03/12/2012 - 20:27 | 2249066 luna_man
luna_man's picture



Well, I guess the numbnuts, are loading up on the S&P!...After all, Ben said that's the place to be!...RIGHT?

Mon, 03/12/2012 - 20:35 | 2249076 bbq on whitehou...
bbq on whitehouse lawn's picture

People arn't buyng its robots with your MONEY. Now when your angry enough to start burning your mayor alive on a pile of tires then you can start to set blame.

Mon, 03/12/2012 - 22:13 | 2249299 FleaMarketPete
FleaMarketPete's picture

Both R2 implies weak explanatory relationship, no?

I mean Tyler is just showing the Fed's attempts to drive down interest rates is ineffective and had done nothing but drive the S&P parabolic?

Mon, 03/12/2012 - 14:38 | 2247947 Sudden Debt
Sudden Debt's picture

See that blue dot on the right of the lower left dot next the slightly more rounded dot?
That dot represents you!

Mon, 03/12/2012 - 16:49 | 2248434 Motorhead
Motorhead's picture

Vous etes ici.

Mon, 03/12/2012 - 14:38 | 2247956 Goldilocks
Goldilocks's picture

chart: smiley face?

Radiohead - High And Dry (4:13)

Radiohead - Creep (3:55)

Mon, 03/12/2012 - 14:39 | 2247960 Ignatius J Reilly
Ignatius J Reilly's picture

hmmmmm.... looks like your self-portrait.... coincidence?

Mon, 03/12/2012 - 14:42 | 2247972 SheepDog-One
SheepDog-One's picture

Yep trav and its totaly pointless too. Ben can ramp whatever to where he feels like and no one will be buying there either. This is just crowd control for morons (ah hem)....there will be a major event soon that wipes it all out, because THATS how central banksters really roll.

Mon, 03/12/2012 - 14:43 | 2247976 kito
kito's picture

trav, in mechanics, there is a difference between a part that is broken and part that seems intact but has a serious design flaw..........

Mon, 03/12/2012 - 14:47 | 2247991 SheepDog-One
SheepDog-One's picture

Ben is 'buying the curve'...OH right, I see....except what hes really doing is monetizing the debt, exactly what Ben said he WOULD NOT do, but is doing anyway. 

Hope you can see it there Trav, and prepare for that fall out.

Mon, 03/12/2012 - 17:14 | 2248540 toothpicker
toothpicker's picture

Not monetizing the debt means monetizing the debt in Newspeak. If you don't agree it's probably crimethink.

Mon, 03/12/2012 - 14:51 | 2248006 barliman
barliman's picture



"nothing's wrong with the chart" = "Guy jumping off Empire State building chanting, 'So far, so good' as he fell"

#winning - Guy in LSM asking, "Can we say 'Recovery'  yet?"

What happens to this 'recovery' and " ...ben is doin EXACTLY WTF ben SAID he goin do?" when ....

  • Markets price inflation into UST's?
  • EU unravels? (Or do you believe ECB is #winning?)
  • Iran gets pounded down by #whoever? (no, conspiracy monkeys, you are not bright enough for this thread)
  • China decides a little real #recession and a whole lot of #socialrepression would 'fix' their markets?

Ben is human - markets are bigger & always win over time.


Mon, 03/12/2012 - 18:31 | 2248792 I should be working
I should be working's picture

I can't wait to see what happens when the fed stops pumping liquidity into the market. Once twist is over do you think it will take one week for the market to crash or two?

Mon, 03/12/2012 - 22:30 | 2249376 FreeNewEnergy
FreeNewEnergy's picture

Can I get money down on one day or one millisecond?

Mon, 03/12/2012 - 19:29 | 2248954 Silverhog
Silverhog's picture

The Feds are also selling everyones soul to financial Armageddon.

Mon, 03/12/2012 - 21:48 | 2249291 Kelly
Kelly's picture

Trav said Ben's doing exactly what he said he was going to do, albeit colorfully.  All y'all need to start appreciating Trav just a wee bit more.  I might not agree with everything Trav says but most of it's bang on.  He ain't no fucking dummy. 


Now go kick some more ass Trav. :)

Mon, 03/12/2012 - 14:33 | 2247934 Sudden Debt
Sudden Debt's picture

Fukushima Fallout Grim

Mon, 03/12/2012 - 14:39 | 2247959 Zymurguy
Zymurguy's picture

Looks like a "Grin" to me:  :)

Mon, 03/12/2012 - 16:21 | 2248318 Thamesford
Thamesford's picture

but somebody needs to floss more regularly!

Mon, 03/12/2012 - 14:47 | 2247990 LongSoupLine
LongSoupLine's picture

I see...Japan.

Mon, 03/12/2012 - 14:53 | 2248017 resurger
resurger's picture

I see dead sheeps

Mon, 03/12/2012 - 19:25 | 2248943 nmewn
nmewn's picture

I see Kilroy was here, right in the middle, his left hand is waving to us ;-)

Mon, 03/12/2012 - 15:35 | 2248152 Hobbleknee
Hobbleknee's picture

looks like a smilie with herpes

Mon, 03/12/2012 - 17:29 | 2248615 Ag1761
Ag1761's picture

I see something else



Mon, 03/12/2012 - 18:30 | 2248787 alfred b.
alfred b.'s picture


   I see a very bad case of acne!


Mon, 03/12/2012 - 21:42 | 2249273 vast-dom
vast-dom's picture

scimitar smiley fuck 

yields supressed + zirp = crash

Mon, 03/12/2012 - 14:27 | 2247900 fonzannoon
fonzannoon's picture

The fed is successfully keeping a lid on rates while successfully ramping the market up higher. Everyone can debate the short/mid/long term reprecussions of this but right now they are doing exactly what they want to be doing.

Mon, 03/12/2012 - 14:28 | 2247909 Dr. Engali
Dr. Engali's picture

Remind me how much gas is again?

Mon, 03/12/2012 - 14:33 | 2247930 Hansel
Hansel's picture

For $100 millionaires and billionaires, gas is still the same price.  $60 a tank or $80 a tank?  Who cares!  It's a rounding error on 109 money.

Mon, 03/12/2012 - 14:49 | 2247998 faustian bargain
faustian bargain's picture

...Although if you own UPS, etc, your transportation costs have probably doubled (or so) in the past few years.

Mon, 03/12/2012 - 22:34 | 2249382 FreeNewEnergy
FreeNewEnergy's picture

And if you USE UPS, your shipping costs have gone up accordingly. I use the god old USPS for things I sell on eBay. The number one complaint - by buyers and sellers - is the cost of shipping.

You nailed it. Bong hit on me when TSHTF.

Mon, 03/12/2012 - 21:42 | 2249272 Calmyourself
Calmyourself's picture

Fair enough in the scheme of things it matters not to the ultrarich.  However that spread makes 1,000 more people memorize your photo, read the BOR or tune in to Zero hedge at the urging of a red piller..

Mon, 03/12/2012 - 14:34 | 2247937 Sudden Debt
Sudden Debt's picture

Pull my finger and it's for free

Mon, 03/12/2012 - 15:17 | 2248096 LongSoupLine
LongSoupLine's picture

Not entirely true, as air freshener futures are spiking.

Mon, 03/12/2012 - 19:37 | 2248969 Silverhog
Silverhog's picture

Check the price of beans.

Mon, 03/12/2012 - 14:41 | 2247970 scatterbrains
scatterbrains's picture

It's almost as if the algos are front running a massive crack up boom where every couple of down ticks on the long end reads as Ben's grip starting to slip and Rbob/UGA/BNO ramps right up ohblahblah's ass.

Mon, 03/12/2012 - 15:36 | 2248157 JohnnyBriefcase
JohnnyBriefcase's picture

The more you tighten your grip, Tarkin, the more star systems will slip through your fingers."

Mon, 03/12/2012 - 22:43 | 2249410 FreeNewEnergy
FreeNewEnergy's picture

ohblahblah. LMAO. Thank you from the bottom of my merciless heart.

Mon, 03/12/2012 - 14:34 | 2247936 SheepDog-One
SheepDog-One's picture

'Keep lid on rates, ramp equity bubble higher'....totaly pointless, except for propaganda purposes.

These people are completely desperate, 1 down day on heavy volume set off FED red lights and they had to rush out and pump QE desperation is obvious.

Mon, 03/12/2012 - 17:53 | 2248680 Rainman
Rainman's picture

Bernank must get his boss through November 6 or he's taken out with the trash in '13, so sayeth Mittens.

Mon, 03/12/2012 - 14:37 | 2247955 q99x2
q99x2's picture

The new multi-billion dollar DC DHS headquarters hasn't been completed yet.

Mon, 03/12/2012 - 15:12 | 2248032 barliman
barliman's picture



"... they are doing exactly what they want to be doing."

"The fed is successfully keeping a lid on rates while successfully ramping the market up higher." 

WOW! So much cluelessness on everything from market history to general math.

I bet you don't understand why so many people #facepalm when you start talking, do you?


Mon, 03/12/2012 - 14:30 | 2247902 Unprepared
Unprepared's picture

The Bernank Conan Drum?

Mon, 03/12/2012 - 14:31 | 2247922 Unprepared
Unprepared's picture

Or should I say "The Bernank's Con and Run"?

Mon, 03/12/2012 - 17:33 | 2248631 Zero Govt
Zero Govt's picture

Bernanks colon is rammed?

it's all the pooper scooping he has to do running after Blankfein, Dimon and those tossers in DC

Coming Soon: The Wall Street MBS Dump (Ben Buys where others Fear to Tread)


Mon, 03/12/2012 - 14:28 | 2247903 LawsofPhysics
LawsofPhysics's picture

This isn't the inflation you were looking for.  Move along.

Mon, 03/12/2012 - 14:44 | 2247965 Goldilocks
Goldilocks's picture

...times are a changing & this isn't the a droid you're looking for...

These aren't the droids you're looking for (0:35)

Mon, 03/12/2012 - 14:28 | 2247907 camaro68ss
camaro68ss's picture

Strange how when you play monopoly the banker always wins

Mon, 03/12/2012 - 14:28 | 2247910 iamse7en
iamse7en's picture

Can someone explain this chart to me simply? Thank you.

Mon, 03/12/2012 - 14:30 | 2247918 Stoploss
Stoploss's picture

Das not good.

Mon, 03/12/2012 - 14:32 | 2247920 redpill
redpill's picture

We're fucked because central banker madmen are once again attempting to distort reality to fit their fantasies of financial debauchery.

Mon, 03/12/2012 - 14:32 | 2247925 Dismal Scientist
Dismal Scientist's picture

Either yields should be considerably higher, or equities considerably lower. Or both. Welcome to financial repression.

Mon, 03/12/2012 - 16:28 | 2248353 blindman
blindman's picture

financial repression = smaller pool of insiders,
by law, privy to free "money", no?

Mon, 03/12/2012 - 14:37 | 2247952 mayhem_korner
mayhem_korner's picture



Over any "normal" period - depicted in this case by the blue diamonds - as equities rise (horizontal axis left to right), there is a positive correlation with yields on the 10-year Treasurys.  That is, interest rates should tend to rise to keep over-borrowing in check and stem inflation.  Unchecked, easy money shows up as nominal returns in equities.

What the chart is saying is that the correlation is non-existent in recent months (green diamonds).  Interest rates are not rising despite the increase in equity returns. 

So the Fed's zero interest rate policy (ZIRP) - which is a necessity to keep the Federal Deficit from exploding to service all of its debt - is enabling unchecked, nominal increases in equities.  BUT NONE OF IT IS REAL.

Mon, 03/12/2012 - 14:45 | 2247987 redpill
redpill's picture

And Bernank will sit up there with that shit-eating Cat-in-the-Hat grin...

"Oh, the things that they did and they did them so hard.
It was all one big spot now all over the yard!
But the Big Cat stood there and he said, “This is good.
This is what they should do and I knew that they would."

Mon, 03/12/2012 - 14:50 | 2248005 iamse7en
iamse7en's picture

All of the responses were great (including the funny ones), but this was most informative. Thank you!

Mon, 03/12/2012 - 15:38 | 2248159 JPM Hater001
JPM Hater001's picture

The other point here is that there is usually an inverse relationship because more money is moving in the system than is added in any given day so you get a sense of sentiment.

So as Treasury demand increases (flight to safety) equities should drop as people move (supply-demand).  And when we are Euphoric and we come out of our hole and buy equities they go up and treasurie demand decreases the value should go down.

But when Ben is pumping funning money into the stock market and the S&P is going up Treasuries should have a decreasing value as people move out.

In other of the two are lying...probably both.  But trust me...historically when one moves one way the other goes the other.

Thats what i got out of I missing it?

Edit- and red Pill beat me too it.

Mon, 03/12/2012 - 16:14 | 2248279 blindman
blindman's picture

the central banks have been propping up the fiat money
system since at least 1971. actually it has been hocus
pocus since 1913 when they folded the state and national
banks into the federal reserve system. yea, they pretended
the fed notes related to gold somehow but not much as rampant
speculation and paper derivatives swamped the market by
so the central banks buy the auctions from each other with
book entries that no one is privy to see. aka..printing.
they can't stop at this late stage of the collapse.
what is wrong with the picture? it reveals the fraudulent
nature of the money system but offers no alternative to this
failure. no?
the fed is either directly or indirectly, thru other central
banks, buying the treasuries, operation print. if they know
they themselves are the buyer why raise the rate? doesn't
make any sense, does it?
hey, it's all on paper or book entries on a digital hard drive
with multiple password protections kept somewhere under ground?

Mon, 03/12/2012 - 17:54 | 2248689 A82EBA
A82EBA's picture

I wonder who would really benefit from an EMP erasure?

Mon, 03/12/2012 - 18:40 | 2248820 blindman
blindman's picture

school children and television audiences?
some other victims of electronic crimes
against humanity, maybe cell phone users?

Mon, 03/12/2012 - 18:44 | 2248827 Wakanda
Wakanda's picture


Rack 'em and stack 'em.

Mon, 03/12/2012 - 17:07 | 2248519 LawsofPhysics
LawsofPhysics's picture

In layman's terms; There is a very real cost for creating capital without adding any real value.

Mon, 03/12/2012 - 21:00 | 2249148 dark pools of soros
dark pools of soros's picture

not for the 1%

Mon, 03/12/2012 - 14:58 | 2248031 valley chick
valley chick's picture

Thanks mayhem korner for the explanation.  :)  Can this go on indefinately? 

Mon, 03/12/2012 - 15:01 | 2248037 barliman
barliman's picture



Markets always win.

Even if they have to completely collapse to do it.

Markets always win.


Mon, 03/12/2012 - 15:17 | 2248091 valley chick
valley chick's picture

thanks barliman. :)

Mon, 03/12/2012 - 18:12 | 2248735 Rainman
Rainman's picture

Does this mean Mister Market is still alive ? I had no idea.

Mon, 03/12/2012 - 18:50 | 2248846 barliman
barliman's picture



You can beat the market down, pump the market up, pervert it for a while, turn it into a zombie or even drive it to where it collapses ...

... but it will break free eventually and the payback is going to be a


Mon, 03/12/2012 - 18:57 | 2248866 Xkwisetly Paneful
Xkwisetly Paneful's picture

Good one. Fight the fed and best of luck seeing another day.

It is clear as day who is winning here thus far and it is not the "market".

The "market" is a function of global economic policy, not the inverse.



Mon, 03/12/2012 - 20:21 | 2249053 barliman
barliman's picture



'The "market" is a function of global economic policy, not the inverse.'

Everything that is wrong with the market captured in one completely clueless statement. You copied off of Timmah Geithner's paper didn't you?

The "market" existed before there was a global economic policy of any sort and will continue to exist after Ben Bernanke is dust.  Markets existed during the time of the pharoahs.

There are Nobel prizes awarded for divining how markets work (here's a clue - but not how policy works) and even the delusional Paul Krugman has won one.

'It is clear as day who is winning here thus far and it is not the "market".'

And a completely accurate statement but not even remotely in the sense you meant it.

Does it HURT to be this stupid?

FYI, I did not advise anyone to fight the FED. 

I have made money on the markets going up and I have and will make money on the markets going down. They have done BOTH since March 2009.

In the end, Ben Bernanke will be reviled on the scale of a Hitler or a Stalin for the pain, suffering, starvation and wars his policies will cause.

Stick around, noob. You are going to be fun to kick around.



Mon, 03/12/2012 - 20:26 | 2249065 Xkwisetly Paneful
Xkwisetly Paneful's picture

Not astro physics.

Market is nothing more than it's participants of which the governments are very large one's,

even if you are not completely wrong about causation.

That would be 0 for 2.

The FED is currently winning and the FED is undefeated but keep fighting.

It's the end of the world as we know it-for the 213,259th time, including 17 deaths of the dollar.

Mon, 03/12/2012 - 21:12 | 2249091 Xkwisetly Paneful
Xkwisetly Paneful's picture

some classic Krugman.

"in the end a stock is worth the discounted value of the cash the investor actually receives - not what he hypothetically might have received...............what a stock is worth is the present discounted value of the dividends on that stock - period, end of story."

Your nobel prize winner can't figure out selling an appreciating stock at given intervals is the same as paying yourself a dividend for most practical purposes besides taxation.


some mega efficient doler out of price discovery which loosely is nothing more than it's largest participants dictating prices to the rest and sorry that has not changed since dirt turned brown and guess what? since it did turn brown prevailing government economic policy largely dictated what took place.  IT sure is fun to pretend otherwise though and consider the market this awe inspiring independent thing that somehow functions in a vacuum independent of the largest economic entities on earth.

Nice to be to PANEFULLY STUPID because everything is so incredibly simple and if a total moronic imbecile of the grandest magnitude like me can get something, anyone with one iota of a functioning brain should be able to grasp it as well.


Mon, 03/12/2012 - 21:50 | 2249298 barliman
barliman's picture


Zzzzzzzzz ...

Oh, you're back! Being intellectually dishonest in addition to rolling out another straw man. It is clear why you are such a big fan of the FED.

I called Krugman delusional and mocked him to illustrate that not everyone who wins a Nobel has all their marbles.

Now you want to pretend otherwise.        You do realize this discussion is occurring where anyone can scroll back up and read who wrote what, right?

With regard to your gibberish on "... the largest economic entities on earth ..." and " ...  prevailing government economic policy largely dictated what took place ..."

Lulz, dude

I knew I could count on you to beshit yourself.




Mon, 03/12/2012 - 21:03 | 2249158 dark pools of soros
dark pools of soros's picture

the market got completely fucked, bitchslapped and thrown into the Afghan streets

Mon, 03/12/2012 - 21:24 | 2249228 barliman
barliman's picture


Doesn't matter ...

... had sex.

Will return favor twice over.


Mon, 03/12/2012 - 21:34 | 2249254 barliman
barliman's picture


You're  so ...

... how do you say? ...

Clueless, that's it!   You really believe you can set up you own straw men to knock down and score yourself.  How precious.

"The FED is currently winning and the FED is undefeated ..."

Oops, another straw man - if only Lying Ben Bernanke had your confidence - of course, he'd have to be a blinking idiot in that case instead of another academician who came in full of himself but is almost in need of Depends to get through his press conferences. Then again, he may already be using them.

Let's see if you can focus for just one second ...

The dollar isn't going to die. It is going to be massively devalued and eventually revalued.



Mon, 03/12/2012 - 15:30 | 2248136 Nobody For President
Nobody For President's picture

Define 'real' MK - it is as real as TPTB can make it - real enough to make the shorts all but disappear. I mean, it's real fiat money.

(OK, just in case - sarc damnit)

Mon, 03/12/2012 - 15:36 | 2248151 Variance Doc
Variance Doc's picture

Note there is a difference between R^2 and correlation.  R^2 is the coefficient of determination, which measures the proportion in variation in 10 year that can be linearly predicted by the S&P; here at 36%.  In other words, it is the squared corrlation between the 10 year and S&P.  The square root of R^2 yields the linear correlation.

Now, for the economic interpretation, mayhem_korner is right and this can be gleamed from the fitted curves, NOT the R^2, etc.  Be careful interpreting the fitted curves near the endpoints - the model accounts for all of the data and misses a lot of the local features, especially where the data is sparse, e.g. endpoints. 

The private Fed has bought the curve, for now.

Mon, 03/12/2012 - 18:51 | 2248847 Xkwisetly Paneful
Xkwisetly Paneful's picture

I am going to sell some of my not real increase in equity and go buy some make believe groceries.

IT is odd for equities and bond prices to move in unison, not that odd when the FED chairman basically explicitly says that is what is going to happen.

Mon, 03/12/2012 - 21:05 | 2249169 dark pools of soros
dark pools of soros's picture

does it matter if the moon or a cruise ship makes the waves??  just surf em and try not to wipe out

Mon, 03/12/2012 - 20:37 | 2249082 blueridgeviews
blueridgeviews's picture

It's real if you take your money out of the market tomorrow and buy precious metals.

Tue, 03/13/2012 - 08:26 | 2249860 mayhem_korner
mayhem_korner's picture



Except that the metals have gone up more than the equities.  Then what's real is the loss of purchasing power you absorbed while hanging out with S and his good buddy P.

Mon, 03/12/2012 - 14:37 | 2247954 Sudden Debt
Sudden Debt's picture

0 = infinite

Mon, 03/12/2012 - 14:30 | 2247917 tradewithdave
tradewithdave's picture

If only this was Arby's where "different is good" we wouldn't need Carmen Reinhart.

Mon, 03/12/2012 - 15:49 | 2248190 falun bong
falun bong's picture

great to see you here dave I'm a big fan

Mon, 03/12/2012 - 14:31 | 2247921 unwashedmass
unwashedmass's picture

some stocks have NO volume. between 1.42-1.44 there was nothing going on. NOTHING for almost everyone.

does anyone else find this "piss in your pants" scary?

Mon, 03/12/2012 - 14:36 | 2247942 SheepDog-One
SheepDog-One's picture

The FED sure is pissing their pants obviously....1 little equity down day and they had to run out and pump the bullshit QE thingy again to recover it. 

Things are not going well for the Maniacal Monetizers no matter what anyone may say to the contrary.

Mon, 03/12/2012 - 14:40 | 2247962 Dr. Engali
Dr. Engali's picture

The question is long before the sheeple realize the fed is in panic mode?

Mon, 03/12/2012 - 14:44 | 2247979 SheepDog-One
SheepDog-One's picture

I hope for their sake its real soon, or theyre totaly screwed.

Mon, 03/12/2012 - 20:39 | 2249090 blueridgeviews
blueridgeviews's picture

To the average person the Federal Reserve is an unknown entity. Panic mode or no panic mode the average person has no clue how the Fed affects them.

Mon, 03/12/2012 - 21:13 | 2249191 dark pools of soros
dark pools of soros's picture

yes they might talk long about space and ancient history saying how studying that can unlock some ideas on how it all affects them but have no clue or interest in understanding monetary policy

Mon, 03/12/2012 - 22:22 | 2249367 KickIce
KickIce's picture

Tough call.  On the one hand Rush says he's picking up listerners. 

OTOH I was watching tru TV and some kid was trying to set the world record for getting kicked in the balls.

(I know some don't like him here but imo he has a good conservative message and doesn't tow the GOP line)

Mon, 03/12/2012 - 22:58 | 2249452 FreeNewEnergy
FreeNewEnergy's picture

Welcome to Fight Club, Rush-fluffer. National ads have been pulled for two weeks on Rush's show, fucking basically, his affiliates. Implosion for the fat freak of fantasy.

Now, please fight back as I pummel your face into pink slime.

Mon, 03/12/2012 - 18:55 | 2248863 SAT 800
SAT 800's picture

Ah, yes; the Maniacal Monetizers in charge of the monstrous Mickey Mouse Money Manufacturing Machine. It is possible, just barely, possible, they may have a tiny problem in the near future.

Mon, 03/12/2012 - 14:36 | 2247948 espirit
espirit's picture

We have enough volume for the algo's to churn a bit.


Mon, 03/12/2012 - 14:44 | 2247980 Ignatius J Reilly
Ignatius J Reilly's picture

Imagine if there were no human orders

Algos just blinking in wait

Think of how much you could manipulate the market,

even for a fraction of a second,

with one, big, human bet.

Especially, if you knew which way the preponderance of algos were leaning.

Mon, 03/12/2012 - 14:51 | 2248012 mayhem_korner
mayhem_korner's picture



You just quoted page 17 of Lloyd Blankfein's 2006 personal journal.

Mon, 03/12/2012 - 15:20 | 2248102 LongSoupLine
LongSoupLine's picture

...and the writing on Blythe's executive bathroom stall.

Mon, 03/12/2012 - 15:27 | 2248126 mayhem_korner
mayhem_korner's picture



Haven't been there, but I'll take yer word for it.  :o

Mon, 03/12/2012 - 18:40 | 2248819 Wakanda
Wakanda's picture

FYI Blythe does not pee or shit.

The demons that animate her do not need food or drink.

They live on human fear.

Mon, 03/12/2012 - 18:53 | 2248854 SAT 800
SAT 800's picture

Good point; can I be excused? I have to go throw up now.

Mon, 03/12/2012 - 14:55 | 2248022 dontgoforit
dontgoforit's picture

There's probably some schmuck sitting in a closet somewhere right now waiting with his finger on the mouse trigger.

Tue, 03/13/2012 - 00:02 | 2249568 oldman
oldman's picture


Where did you hear there were 'human orders'?

You mean the fills they throw in the bucket?

I understood that no one sent 'human orders' to the 'market', but just picked out a nice spread for the house and confirmed to the sucker.

Also, Where did you hear there were humans? I'm hungry         om

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