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This Is Where "The Money" Really Is - Be Careful What You Wish For

Tyler Durden's picture




 

We have long shown that "investors" whatever that term means in the New Normal - those gullible enough to put their money in Bennie Madoff, pardon Bennie Bernanke Asset Management? - have been not only reluctant to put their money into stocks, but despite week after week of artificial, low volume highs, driven entirely by Primary Dealers (and now European banks post the $1.3 trillion in LTROs, not to mention even foreign Central Banks recently buying high beta stocks) spiking the market ever higher courtesy of record reserves, but in fact continue to pull their cash out of the stock market with every thrust higher. Why, just last week another $1.4 billion in cash was pulled from domestic equity funds, nominal Dow 13,000 be damned. The truth is that the banks are desperate to start offloading their risk exposure to retail investors, and instead of selling, are furiously trying to send the market ever higher just to get that ever elusive "investor" back: just look at how much the market rose by last week, CNBC will say: do you really want to be out of this huge rally? Alas, the damage has been done: between the Great Financial Crisis, the Flash Crash, a massively corrupt regulator, rehypothecating assets that tend to vaporize with no consequences, and a central bank which effectively has admitted to running a Russell 2000 targeting ponzi scheme, the investor is gone. But what if? What if the retail herd does, despite everything, come back into stocks? After all the money is in bonds, or so the conventional wisdom states. What harm could happen if the 10 Year yield goes back from 2% to 3%, if the offset is another 100 S&P points. After all it is good for the velocity of money and all that - so says classical economic theory. Well, this may be one of those "be careful what you wish for." Because while investors have indeed park hundreds of billions out of stocks and into bonds, the real story is elsewhere. And the real story is the real elephant nobody wants to talk about. Presenting: America's combined cash hoard, which between total demand deposits, checkable deposits, savings deposits, and time deposits (source H.6), is at an all time high of $8.1 trillion.

Indicatively, this consolidated number was a modest $5.9 trillion the week when Lehman failed. In other words, in the period in which the Fed dumped $1.6 trillion in cash on Primary Dealers' balance sheets, and gave them a carte blanche to buy NFLX, AAPL, and Crude of course, which they did in keeping with the Fed's Global Put mandate, i.e., no bank will ever fail again, American consumers added $500 billion more than even the Fed parked with the banks, or $2.2 trillion.

And therein lies the rub. As a reference, America currently has about $1 trillion of currency in circulation. If, and this is a big if, the gullible US consumer-cum-New Normal investor, does fall for the oldest herding trick in the book, and not only converts their bond holdings but their cash holdings into stocks, which in turn goes right into money velocity, into currency, and thus, into inflation, America may promptly find itself with the most unprecedented inflationary outcome it has ever experienced. Because while the Fed may have control over Excess Reserves, or so it believes, via the interest charged on overnight reserves, it will have absolutely no control over the herd mentality and the avalanche of money, should it proceed to rotate not so much out of bonds into stocks, but far more importantly, out of electronic cash (which for all intents and purposes is the US M2 these days), into the stock market.

Crude at $200 will then be the least of everyone's concerns.

 

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Fri, 03/16/2012 - 14:25 | 2262694 azzhatter
azzhatter's picture

Does this include the $127,000 I have buried in my back yard ?

Fri, 03/16/2012 - 14:29 | 2262718 LawsofPhysics
LawsofPhysics's picture

Funny you say that.  I know two "old coots" storing paper and PMs.  Even physical cash has value in an apocalypse, hard to break up those bars.  At least that is what JPM told MF global clients. 

Fri, 03/16/2012 - 14:34 | 2262740 Divided States ...
Divided States of America's picture

Fuckin Fed and banks working together to raise the quality of capital on their books. Stocks are considered level 1 securities since they are usually liquid and trade on an exchange. So if they plow into stocks and stocks go up 100% like it has from the lows of 2008, the banks capital is effective doubled just for buying and holding on to this overvalued company certs, even as volume lags because the Fed has been the doing the majority of the buying (or propping). Except that prices have gone up a ton so their powder cant buy as much as before. If thats the case, then they going to ramp up stocks like no tomorrow. However, the insiders are thinking otherwise, they still dumping shares like no tomorrow.

Tyler, you should give us an update on insider transations. 

Fri, 03/16/2012 - 14:45 | 2262781 Ahmeexnal
Ahmeexnal's picture

They will make it easy for 300lb joe sixpack to dump his bank account into stocks.
New firmware on ATMs will now include stock market operations.

Fri, 03/16/2012 - 14:55 | 2262820 Harlequin001
Harlequin001's picture

Problem is, the more money they print, and the more they use the MSM to keep people in other assets, it takes fewer  and fewer investors to have the same impact on prices needed to cause a panic. It just takes longer, and the effect is that much better...

Fri, 03/16/2012 - 15:15 | 2262924 Pinto Currency
Pinto Currency's picture

 

The article should say: "America may promptly find itself with the most unprecedented consumer goods price inflationary outcome it has ever experienced."

The Federal Reserve and other central banks have already executed the most unprecedented monetary inflation in history.  We simply await the inevitable manifestation in consumer goods prices of the prior central bank money inflation.

It's all over but the crying. 

Iran will be attacked as our central banks aren't good at 'splainin.

Fri, 03/16/2012 - 15:27 | 2262995 markmotive
Fri, 03/16/2012 - 15:41 | 2263049 TruthInSunshine
TruthInSunshine's picture

Wall Street Shylocks Want that 8.1 Trillion.

Wall Street Shylocks NEED that 8.1 Trillion.

 

Wait for some grand bargain between ObaMao & Wall Street guaranteeing his re-election if only he gives them more avenues to crack into that big safe, bitchez (as if the Republican Muppet would be any different).

They're Coming For It, Bitchez. They Want It All. Like Parasites On Hosts.
Fri, 03/16/2012 - 15:45 | 2263061 EscapeKey
EscapeKey's picture

$8tn. $8tn.

Wasn't there some pseudo economist who writes for a second rate tabloid who mentioned exactly this figure some time ago?

http://www.creditwritedowns.com/2010/10/krugman-we-need-8-10-trillion-worth-of-quantitative-easing.html

Oh yeah.

Fri, 03/16/2012 - 17:32 | 2263479 TruthInSunshine
TruthInSunshine's picture

There are Shylocks everywhere.

shylock - definition of shylock

shy·lock  

n.
A ruthless moneylender; a loan shark. intr.v. shy·locked, shy·lock·ing, shy·locks
To lend money at exorbitant interest rates.
Fri, 03/16/2012 - 17:57 | 2263580 AldousHuxley
AldousHuxley's picture

ZIRP is not shylocking....actually it is the opposite....bailing out irresponsible lenders cheapening the value of money and earned money for everyone.

Fri, 03/16/2012 - 18:13 | 2263616 TruthInSunshine
TruthInSunshine's picture

Make no mistake:  The fiat currency that is produced from thin air at no cost to the conjurers and which enjoys legal monopoly status either now (it's happening right now, in particular and large ways - look to the spread; but for sake of your point, let's assume it's not) or in the future, will get relent at much higher rates. It's inevitable. And the shylocks will be the ones who profit. Amschel himself would be amazed at the world today if he were alive.

Fri, 03/16/2012 - 19:22 | 2263822 walküre
walküre's picture

TIS, I'm asking you at what point will everyone awake from this stupor and realize that it's all "funny money"?

If one group can simply never get poorer because they print themselves wealthy, create their paycheques from thin air.. how long does that go unnoticed?

QE3 is rumored to have a $3.6 trillion price tag. LOL.

Fri, 03/16/2012 - 19:28 | 2263826 AldousHuxley
AldousHuxley's picture

money is debt

debt is claim on you creating wealth in the future

 

more debt = you will work harder for less (more fake stuff, food, lives....less real stuff, food, lives)

 

 

your kids will have to get phD in STEM just to buy enough fake processed food to sustain and have time to facebook while seeing you once a year.

 

inflation alone doesn't account for losses of things that are truely important such as time with family, mental health, freedom, morality, etc.

 

 

 

Fri, 03/16/2012 - 19:49 | 2263870 Manthong
Manthong's picture

Hey kids, here's a hint about what to watch out for:

 

" “I do feel a sense of urgency about the structural weaknesses that do exist in money-market funds,” Schapiro said. “There is a structural weakness that makes them prone to runs, and I think we need further debate and discussion about some concrete ideas there.”

Schapiro declined to discuss specifics, but SEC spokesman John Nester confirmed that rule changes are being prepared.

“At the chairman’s direction, the staff is currently drafting proposals to address the susceptibility of money-market funds to runs,” he said in a written statement. "

http://www.bostonherald.com/business/general/view.bg?articleid=1061116801&srvc=business&position=recent

How do YOU spell "capital controls"?

Fri, 03/16/2012 - 19:53 | 2263885 The Watchman
The Watchman's picture

A S S C L O W N S

 

everywhere I look I see....

 

A S S C L O W N S

 

Bankers - Governments - Corporations

 

A S S C L O W N S

Fri, 03/16/2012 - 20:09 | 2263923 Spirit Of Truth
Spirit Of Truth's picture

Let's face it, folks. Ben has won.  REALITY no longer matters.

Fri, 03/16/2012 - 20:46 | 2264006 Kali
Kali's picture

You can ignore reality but you cannot ignore the consequences of ignoring reality.

Sat, 03/17/2012 - 01:11 | 2264425 Oh regional Indian
Oh regional Indian's picture

But Reality is an illusion. Look at the top, Obama, a 'Complete Construct".

Then, just work down.... there is no "Money".

"Real" Money = Cannot Fold it, only Stack it. ;-)

By the way, not sure how many people saw this, Sun/Gold's weird "Triangle".... unprecedented, ominous.

Big big dates coming up, next few days, so packed.... 

ori

/awe-in-spiring-surya-sun-sol/

Sat, 03/17/2012 - 06:31 | 2264604 Harlequin001
Harlequin001's picture

But that's the point, the world doesn't need this money. It is surplus to requirement, a sword of Damocles hanging over the heads of us all.

When this comes out, major inflation. Deflation is a fools concept.

Sat, 03/17/2012 - 08:54 | 2264668 Oh regional Indian
Oh regional Indian's picture

Well said Harl.

ori

Sat, 03/17/2012 - 09:19 | 2264685 Element
Element's picture

Triangle? ... try a slice of coon with a bite out of it.
 
 
BTW: moon's made out of cheese ... what's it all mean? ... giant cosmic mice? ... if there are mice there may be cats ... can you imagine the smell if an interstellar Tom cat pissed on Earth? ... or laid a new and very pungent alpine continental swirl where Hawaii is? ... what the fuck are we going to do about that shit?!! ... annex the fucker? ... fight over who's dump it is?

Sat, 03/17/2012 - 09:34 | 2264693 Oh regional Indian
Oh regional Indian's picture

Element, may I suggest David Icke? 

The moon is actually a complete anomaly, but I'm sure you knew that already! 

By the way, every famous astronomer in the 20 century said some variation of "The best way to explain the moon is to imagine it does not exist".

So there! ;-)

ori

Sat, 03/17/2012 - 10:00 | 2264712 Element
Element's picture

Yeah, the fact remains the geochemistry of moon's basaltic crust, in its atomic components and their respective percentages, is basically identical to Earth's oceanic crust.  With one small detail missing, the moon's mineralogy has almost zero water or hydrous minerals, but water is very common in Earth's crustal mineralogy and all magmas (5% water is not unusual in magma).

 

Stuff like that tells me we ain't privvy to all the details of how planets and moons come to be.

Fri, 03/16/2012 - 20:51 | 2264017 A Nanny Moose
A Nanny Moose's picture

We can evade reality, but we cannot evade the consequences of evading reality. - Ayn Rand.

Sat, 03/17/2012 - 03:12 | 2264492 Henry Chinaski
Henry Chinaski's picture

If you wanted to confiscate wealth by devaluing a currency, where would you want people to be most hevily "invested?"

Sat, 03/17/2012 - 07:51 | 2264631 Jendrzejczyk
Jendrzejczyk's picture

Where it doesn't even leave vapor trails when it goes POOF!

Sat, 03/17/2012 - 11:06 | 2264792 Jake88
Jake88's picture

It is the downfall of the US.  The ass clowns now run everything.

Sat, 03/17/2012 - 00:14 | 2264367 TruthInSunshine
TruthInSunshine's picture

AldousHuxley said that "money is debt."

Damn straight.

It's such a simple concept, yet so few realize it is the core nucleus of all that ails our economies. I am not arguing that any system would produce utopia (and what is utopia, and to whom, anyways?).  I am arguing that the fractional reserve lending system is not only imperfect, but imperfect by design, as a means to ensure a conduit for a tiny % of individuals who literally control the amount of fiat currency in supply to steal (no exaggeration there) the productiveness and tangible things of inherent wealth produced and owned by those not having such control.

But this system of fractional reserve lending has an inherent poison pill baked into it. It can only last until those who do not have the ability to control the fiat money supply no longer can provide productive labor or tangible things of inherent value to those who do have control over the fiat money supply.

Money As Debt
Sat, 03/17/2012 - 10:35 | 2264763 airedalesrule
airedalesrule's picture

There are massive problems with money market funds. Read a prospectus and look at what they own.

Consider that the average maturity is inside of ~30 days with skew to the short end. They are the mechanic in the cash markets that allow instaneous transmission of a liquidty crisis. A failure to fund one day essentially doubles in amount tomorrow and each day subsequently. It can go viral, exponentially, as it did before. The top 10 investors typically provide ~ 60-80% of total volume, so you lose one, and you're done. Oh, did I mention that banks (!?) provide partial putatively committed back up facilities?

Money funds today operate with no capital whatsoever. They are cash repositories and warehouse massive systemic risk:  broadly put, short term, rolling AA- risks ... sovereign, corporate & financial. Go price $trillions of that quality and quantity of risk in the market and see what it costs.

Yet they operate with no capital whatsoever. None.

Fri, 03/16/2012 - 22:00 | 2264165 centerline
centerline's picture

Read Hypertiger's blog.  I think he misses the mark in some ways, but closer to the truth than most in the grand scheme of things.

Sat, 03/17/2012 - 09:25 | 2264689 disabledvet
disabledvet's picture

yes. i agree with this. however it still doesn't solve the problem of "earning a dishonest buck" nor more importantly "the check kiting scheme that is Washington DC." THUS: "cash hoard earning nothing." what never get's asked here is "how does the average investor short the market" and of course even if he were to plow right in "believing in not believing" he couldn't. HOUSE'S RULES PEOPLE! Move along...

Sat, 03/17/2012 - 11:04 | 2264788 Jake88
Jake88's picture

it is stealing from the fiscally responsible to keep the shylocks in business.

Fri, 03/16/2012 - 17:37 | 2263504 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Time for the Gub'mint to "privatize" the SS system, forcing those monies to the stock market to generate more commissions and bonuses for Wall Street.

Fri, 03/16/2012 - 18:00 | 2263588 AldousHuxley
AldousHuxley's picture

McDonalds, Supermarket chains, Walmart, Churches, redstates, Florida won't let that happen as they depend on SS system redistributing money from earners to  non-earners.

 

 

Fri, 03/16/2012 - 22:12 | 2264180 ClassicalLib17
ClassicalLib17's picture

 All I want is my 160.000 dollar contribution, to date.  

Fri, 03/16/2012 - 23:38 | 2264331 andrewp111
andrewp111's picture

Yeah, but that can authorize the SS Trustees to put the cash into stocks instead of treasury bonds. Then with a permanent investment, the Gub'mint will have a semi-legit excuse for the Fed to buy stocks directly.  You can't let market crashes happen if the next SS check depends on prices only going up, right??

Sat, 03/17/2012 - 07:35 | 2264626 WhiteNight123129
WhiteNight123129's picture

BREAKING NEWS: Bo Xilai has been sacked. He was teh most populist guy in politburo, not an engineer as opposed to the other guys of the politburo, your perfect popular guy for western democracies that is ready to do anything to succeed. He tried to revive Mao´s style song, he was "charismatic" (read psychopath ready to ruin othe people to achieve his ends). The other politburo figures are usually low profile, not charismatic guys but well balanced personalities and bright people (engineers dominate the politburo). Well done China!

Sat, 03/17/2012 - 09:08 | 2264676 Marco
Marco's picture

Their congress is of course still filling up with billionaires (read also psychopaths).

Sat, 03/17/2012 - 09:29 | 2264691 disabledvet
disabledvet's picture

How ironic! "The People's Party" has run full circle! "A more effective kleptocracy." How about "Our Money...your problem"? Truly...the "to the barricades" sayings are infinite here. Sure beats those stupid posters they have on the office walls however.

Fri, 03/16/2012 - 18:59 | 2263769 Amagnonx
Amagnonx's picture

MF global vaporized $1.6 billion, the defense dept 'lost' 1 trillion - what makes you think they wpn't just reach into your bank accounts and vaporize that as well.  Banked money is sitting within arms reach of the biggest thieves the world has ever seen - they no longer need any justification, nor rationaliztion - if people l;eave it there long enough, it will get stolen.

Sat, 03/17/2012 - 08:38 | 2264657 hamurobby
hamurobby's picture

They dont have to steal it outright, they will just devalue it to worthless. They are going to create enough new money and inflation to force money out of hiding and into circulation. When that happens it will be too late for those who thought themselves prudent savers and their wealth will be destroyed overnight. For the system to "work" there must be money velocity. Its hard to tax stagnant money. The system is collapsing with falling tax revenue and rising government cost. Ben will bow to the pressure and end up over creating capital which will way overshoot calculated targets of money velocity and a huge inflationary outcome will be the result. Do we think Ben really has a clue? well if he really was in "control", he would have raised interest rates appreciably back in 2002 or 2003 to stop the real estate market explosion! He only missed the sweet spot by three or four years! So this may take a few years to acomplish, but those who are afraid to move their money into hard assets early on, will be the ones to suffer the most. I cant and dont blame savers for wanting to be careful and stubborn, but they are the deer in the headlights throughout the history of debauched fiat currency.

Sat, 03/17/2012 - 11:11 | 2264797 Jake88
Jake88's picture

You are right.  Unless or until these thieves are stopped with force, jailed or beheaded they will become even bolder intheir theft.

Fri, 03/16/2012 - 15:55 | 2263121 gaoptimize
gaoptimize's picture

"On a long enough timeline the survival rate for everyone drops to zero"

"Oh well, in the long run we're all dead."

Don't be so sure...  http://www.wfs.org/content/when-death-becomes-optional

Fri, 03/16/2012 - 14:57 | 2262826 francis_sawyer
francis_sawyer's picture

 The truth is that the banks are desperate to start offloading their risk exposure to retail investors, and instead of selling, are furiously trying to send the market ever higher just to get that ever elusive "investor" back:

Muppets bitchez!

Fri, 03/16/2012 - 15:02 | 2262853 tickhound
tickhound's picture

Yup, and absolutely nothing new in that statement other than the word "desperate"

Sun, 03/18/2012 - 11:40 | 2267080 Pinto Currency
Pinto Currency's picture

 

I would way rather hold equities than any bond for the next 10 years.

In a currency crisis, bonds denominatted in currency can go to zero while equities represent a portion of real productive asset.

The street is telling us to buy Proctor & Gamble

http://www.nydailynews.com/news/crime/thefts-tide-laundry-detergent-rise-cost-retailers-3-53-billion-2010-article-1.1039203

 

Sun, 03/18/2012 - 12:24 | 2267168 akak
akak's picture

And I would rather hold a rotting squid than a rabid wolverine --- but why hold either one?

Fri, 03/16/2012 - 15:47 | 2263072 EscapeKey
EscapeKey's picture

Absolutely right. Look at a 6-momth DJIA graph. You can literally use a ruler and draw a straight line through its ascent.

"Free markets" apparently mean entirely predictable stock graphs.

Fri, 03/16/2012 - 16:59 | 2263363 LongBalls
LongBalls's picture

These idiots don't realize that the majority of retirement savings (mainly 40+) have either been wiped out or so damaged they figure just keeping it in cash is the better way to retain wealth.

We have entered into the realm of "better to have the return of money than return on money" era.

Everyday AMERICANS DISTRUST BANKERS! And they have every right!

Fri, 03/16/2012 - 18:10 | 2263615 AldousHuxley
AldousHuxley's picture

bankers distrust their own.

Fri, 03/16/2012 - 20:20 | 2263950 DeadFred
DeadFred's picture

Most of the people I know aren't conspiracy nuts like me. Many had six figure stock accounts pre '09. Most are happy seeing the market go up "Things seem to be getting better". None of them have re-entered the market other than work related stock plans. All their assets are short term CDs, savings accounts and wads of hundreds in safety deposit boxes. Why not? During the liquidity crunch I suggested to my father that he keep a month or two worth of expenses in cash and he told me that after year he expected me to buy him a coke to compensate for the lost interest. I agreed.

Fri, 03/16/2012 - 20:24 | 2263964 whstlblwr
whstlblwr's picture

It's the fucking Apple economy. Why do you think the central bank buys Apple stock the last month? Because most mutual funds, 401K hold Apple. Insider trading to the highest degree. The rise in the Apple stock the last month has just paid for many new cars and house.

Sat, 03/17/2012 - 09:18 | 2264683 GMadScientist
GMadScientist's picture

The 2% pays for the cars and house.

The 20% is for the boat and plane (but they still have to find someone to hold the bag).

Sat, 03/17/2012 - 11:14 | 2264802 Jake88
Jake88's picture

When time to sell Apple comes who is left to buy.  Look out below.

Sat, 03/17/2012 - 09:13 | 2264679 GMadScientist
GMadScientist's picture

Mmmm....liquidity preference.

 

Fri, 03/16/2012 - 20:30 | 2263978 GovtMediaLiars
GovtMediaLiars's picture

Yeah index charts are looking insane these days. You would think based on that action that we were smack in the middle of one of the biggest economic booms in decades....
I've only got the SPX and RUT up today. Boy is that SPX chart pretty (and, for me, frustrating). 

"Free markets" have, unfortunately, always meant nothing more than what TPTB says they do at the moment. Certainly it has never actually meant free markets.

Cheers!
GML 

Fri, 03/16/2012 - 15:00 | 2262840 aerojet
aerojet's picture

Like the new firmware on the electronic price signs outside of gas stations? 

Fri, 03/16/2012 - 15:07 | 2262888 AccreditedEYE
AccreditedEYE's picture

Indeed, however we have Treasury auctions Mon, Tues and Thurs next week so we'll see some blips down to lock in the best yields the Central Planning team can... er, show the public it's "not a fixed game"... er... never mind.

Fri, 03/16/2012 - 15:42 | 2263057 Bunga Bunga
Bunga Bunga's picture

I thought Joe Sixpack is underwater?

They should rather limit ATMs operation to paying mortgages.

 

Fri, 03/16/2012 - 16:01 | 2263156 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Joe Sixpack being underwater is the reason we will not see the retail trader come back. Every penny Joe makes goes into paying the bills or debt. It is not going into the market. The big boys can try and pump all they want, the sheeples are broke.

Fri, 03/16/2012 - 16:10 | 2263198 yabyum
yabyum's picture

Every penny from j6p goes in to his dodge hemi truck. He has got to get to work from his underwater sarter mansion in da  'burbs.

Fri, 03/16/2012 - 16:12 | 2263203 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Da 'burbs house are full of them iThings and other unnecessary assorted things the Man told him to buy.

Fri, 03/16/2012 - 17:37 | 2263502 boiltherich
boiltherich's picture

There are a lot of iThings out there, but I for one can say I do not own a cell phone, nor do I have an iAnything, when I read a book it is ink on paper, and the only clouds I worry about are the ones that are about to dump snow when it should be in the 70+ degree range.  The day I have to have wires and batteries to read a book is the day I stop reading books. 

Fri, 03/16/2012 - 18:19 | 2263631 AldousHuxley
AldousHuxley's picture

a farmer once told me why they don't use technology to circumvent weather.

"you can't never do anything about it so why worry?"

 

 

 

 

Fri, 03/16/2012 - 19:01 | 2263773 illyia
illyia's picture

Ha! - You can take that either way...

Fri, 03/16/2012 - 18:51 | 2263753 akak
akak's picture

I may have disagreed with you in the past, Boiltherich, but here I have to give you +1,000,000.

I abhor all the iShit infecting our society, and what it has done to cheapen, coarsen and degrade social interaction itself.

Fri, 03/16/2012 - 19:42 | 2263857 AldousHuxley
AldousHuxley's picture

buy some AAPL and thank the idiots who buy into iStuff for making you richer.

 

social interactions are overrated anyway as the rules are set by the elite who control the cultural norms advantageous to them.

Sat, 03/17/2012 - 09:35 | 2264694 disabledvet
disabledvet's picture

really? who's controlling your social interaction? look at how much economy exists...right here--all around us. T Rowe, Morningstar, Audio-market commentary--all because we are "interacting". We are being watched of course...but that's the first rule of media--you wannna be the one being watched...and not the one watching....otherwise "you can't get the money period."

Fri, 03/16/2012 - 20:37 | 2263989 Poor Grogman
Poor Grogman's picture

I have to disagree my friend.
Sent from my I pad...

Sat, 03/17/2012 - 00:24 | 2264388 akak
akak's picture

And I must respectfully disagree with your disagreement.

Sent from my tin can on a string.

Sat, 03/17/2012 - 10:17 | 2264741 GMadScientist
GMadScientist's picture

And I must disrespectfully disagree with your respectful disagreement.

Sent from my middle finger.

Tue, 03/27/2012 - 14:12 | 2295003 e-recep
e-recep's picture

i am reading these comments on my ipad2 and trust me, it is an awesome experience. you should try it one day.

Sat, 03/17/2012 - 06:48 | 2264610 Arrowhead
Arrowhead's picture

either do I. They say in the cities that people even cook on their porch and shit in the house now!

Sat, 03/17/2012 - 09:14 | 2264680 cat2
cat2's picture

How did your post land here?  Carrier Pidgin? 

Sat, 03/17/2012 - 11:18 | 2264811 Jake88
Jake88's picture

Apple makes me want to vomit. Status bling for airheads. 

Fri, 03/16/2012 - 21:53 | 2264153 Papasmurf
Papasmurf's picture

iStocks iGambling app for eyephone.  Put it on buzz, it can give you a margin call shake up.

Fri, 03/16/2012 - 14:45 | 2262782 SilverTree
SilverTree's picture

WTI popping a bit...

 

http://www.miniurl.com/s/0DZ

Fri, 03/16/2012 - 15:13 | 2262917 Pinto Currency
Pinto Currency's picture

 

duplicate post

Sat, 03/17/2012 - 01:38 | 2264443 Tegrat
Tegrat's picture

" even as volume lags because the Fed has been the doing the majority of the buying"

 

I keep hearing about this volume lag from various posters.

Is anyone verifying such statements? From the chart below the recent volume is only slightly off from the max:

 

http://finance.yahoo.com/echarts?s=%5EGSPC+Interactive#chart5:symbol=^dji;range=5y;indicator=volumema(200);charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Sat, 03/17/2012 - 07:17 | 2264620 Dre4dwolf
Dre4dwolf's picture

Funny that, how they did their stress tests during a rally.

 

One would be inclined to think that the Fed bought up all these stocks just to raise their prices so that the banks pass their own rigged test.

 

lol

 

Sad.

Fri, 03/16/2012 - 15:05 | 2262868 navy62802
navy62802's picture

Well, you're certainly not losing anything by taking your cash out of the bank. Yields are effectively zero percent on both checking and savings accounts.

Fri, 03/16/2012 - 15:31 | 2263003 hack3434
hack3434's picture

Lord forbid too many mupets do it at once...

Fri, 03/16/2012 - 21:55 | 2264156 Papasmurf
Papasmurf's picture

wonder if the muppets will become armed?

Sat, 03/17/2012 - 11:24 | 2264820 Jake88
Jake88's picture

Oh I do hope so. Power to the Muppets

Sat, 03/17/2012 - 10:23 | 2264749 GMadScientist
GMadScientist's picture

Better served to buy hard assets or enable yourself in the underground economy (hint: they don't take credit cards) and overseas, should the need arise...say from someone attempting to impose controls on how much you can legally withdraw from your bank.

Or opening a benevolent check cashing joint and plowing under the leeches down where they don't have ATMs on the corner.

Or maybe personal loansharking is the future...sorry..."emerging econonomy micro-investment"...yeah, that sounds better.

 

Fri, 03/16/2012 - 15:16 | 2262939 stant
stant's picture

i would be one of thoses old coots.no rehypothecation fears with mason jar federal.and intrest rate is the same

Fri, 03/16/2012 - 16:55 | 2263355 Common_Cents22
Common_Cents22's picture

The food vacuum packing devices are the new modern day mason jars.  Wont break, stack/travel nice and compact!

Foodsaver and now Cashsaver!

Fri, 03/16/2012 - 17:16 | 2263420 IAmNotMark
IAmNotMark's picture

Paper, PM, and coins.  Pre-82 pennies are best, but nickels make the easiest buy.  Keeping your spare change makes sense as well.  A modern quarter = a nickel in melt value, 40 of them = a silver dime.  That relationship will continue. Maybe.

Melt values can be found at:  coinflation.com

Fri, 03/16/2012 - 21:26 | 2264099 JohnKozac
JohnKozac's picture

"Endless money forms the sinews of war."

Cicero, Pilippics

Quoted in Lords of Finance, The Bankers Who Broke the World.

http://www.economist.com/node/12884939

 

 

Sat, 03/17/2012 - 06:39 | 2264607 trebuchet
trebuchet's picture

@azzhatter.... uuumm, where do you live ???

Sat, 03/17/2012 - 08:10 | 2264648 EmileLargo
EmileLargo's picture

Better to hoard nickel coins.

Fri, 03/16/2012 - 14:31 | 2262726 AbelCatalyst
AbelCatalyst's picture

This is why the dollar is as strong as it is despite all the printing. Then the tide turns, the dollar drops in value, and people head for gold, but it is too late. The door has been shut. Most of the physical stuff is in China supporting the new gold-backed world reserve currency. Ouch!!

Fri, 03/16/2012 - 18:57 | 2263762 akak
akak's picture

Then we get all the Chinese-owned and operated maquiladores popping up in the United States itself.

" 'Bathroom break'?  Get back to work, you razy round-eyed Yankie devir --- you have 11 more hours on your shift to finish first!  Now chop chop!"

Sat, 03/17/2012 - 10:58 | 2264783 GMadScientist
GMadScientist's picture

Yeah, like they'd hire lazy round-eye when leverage over recent boatpeeps is so much more devestating.

When was the last time you saw white faces looking up from a sweat shop floor?

Would probably make for a good sitcom...Jackie Chan can try to get the twins from Sister Sister to sew him a new Elvis outfit.

Fri, 03/16/2012 - 15:09 | 2262902 unionbroker
unionbroker's picture

and you address is?

Fri, 03/16/2012 - 15:40 | 2263042 Nobody For President
Nobody For President's picture

Hey azzhatter - where you live?

Just curious.

Is that buried stuff PMs or Ferns?

Sat, 03/17/2012 - 10:55 | 2264781 GMadScientist
GMadScientist's picture

His stamp collection, limp bizkit.

Fri, 03/16/2012 - 16:07 | 2263183 ceilidh_trail
ceilidh_trail's picture

Azzhatter- You need a landscaper? That's one of my hobbies. I promise I won't dig deep... Ferns are my special interest...

Sat, 03/17/2012 - 10:59 | 2264785 GMadScientist
GMadScientist's picture

You're a "manscaper".

Fri, 03/16/2012 - 18:04 | 2263601 LouisDega
LouisDega's picture

Correction: 8.1 large minus $835 for my iPad.

Sat, 03/17/2012 - 10:32 | 2264760 GMadScientist
GMadScientist's picture

I'm pretty sure AAPL put yours on the pile with the rest.

 

Sat, 03/17/2012 - 01:58 | 2264458 resurger
resurger's picture

lol

Sat, 03/17/2012 - 10:15 | 2264739 It was not me
It was not me's picture

On Friday I just went all in and shorted USD against everything on my Armada Markets trading account. All muppets, sorry, all Goldman Sachs clients can take the either side of this trade.

Fri, 03/16/2012 - 14:31 | 2262701 Quinvarius
Quinvarius's picture

8 trillion completely worthless paper FRNs.  And that is just the worthless FRNs in the US banking system.  Who really knows how much US paper is out there.  I just don't buy into the whole m1, m2, m3 paradigm.  There is a lot more out there than we are counting.

Fri, 03/16/2012 - 15:17 | 2262949 Race Car Driver
Race Car Driver's picture

How much have other countries, like N. Korea, printed to add to the swirling pile?

Fri, 03/16/2012 - 17:10 | 2263392 Piranhanoia
Piranhanoia's picture

North Korea can counterfeit gold. 

Fri, 03/16/2012 - 19:47 | 2263873 AldousHuxley
AldousHuxley's picture

North Korea can counterfeit nukes

 

North Korea's Kim Jung Un last name "Kim" means "Gold"

 

even communists know you can't count on a bankster notes.

 

 

Fri, 03/16/2012 - 15:20 | 2262960 JLee2027
JLee2027's picture

If the collapse comes, all those assets turn to zero on the computer. Poof, gone forever.

Best get all the cash out of the bank.

Fri, 03/16/2012 - 15:47 | 2263067 Bunga Bunga
Bunga Bunga's picture

Right, a deposit is only a liability of a bank, not cash in a vault.

Fri, 03/16/2012 - 19:48 | 2263878 AldousHuxley
AldousHuxley's picture

it is a liability of society to elect politicians who hold banks liable for their deposits.

 

ALL FAIL

Sat, 03/17/2012 - 01:54 | 2264453 Bunga Bunga
Bunga Bunga's picture

My dear friend, your demand is impossible to fulfill due to the nature of our monetary system. 

Fri, 03/16/2012 - 21:20 | 2264087 Goldilocks
Goldilocks's picture

courtesy of dwdollar…
~//~

Martiens Yep Yep Yep
http://www.youtube.com/watch?v=vh3tuL_DVsE (1:27)

Fri, 03/16/2012 - 22:06 | 2264183 centerline
centerline's picture

MF Global illustrated this.  "Poof" is about how quick it will happen, for sure.  For a period of time, cash (fiat) might still have some value as the digital money gets vaporized.  I keep cash on hand for this reason.  The moment the digital realm goes tits up, I go on the spending spree for food and supplies.

Fri, 03/16/2012 - 23:29 | 2264321 MsCreant
MsCreant's picture

I bet you have some laid in now because later may be too late. Food in storage is insurance for natural disaster, unemployment, or economic collapse (or even an economic brown out [my personal belief, it will be cycling economic brown outs]). The food needs to be bought in stages, some of it rotated (getting some of the stuff that stores 35 years is not a bad idea, but you don't want all of it to be that stuff, diversify!), and yeah some of it will be thrown away or given away if you time it right (then write it off). You pay insurance and usually don't collect...

I bet you know all this, but you left me an opening to say this very specifically.

Fri, 03/16/2012 - 15:40 | 2263031 Zero Govt
Zero Govt's picture

the FRN's will be "worthless" when commerce and citizens say they are (ie. lose confidence)... and we're not there yet, not for a few years

so this $8 Trillion is until then stored wealth and worth quite a fuking lot.. when it comes out of the 'peak-Treasuries' bubble it's going to go into stocks... it's going to be a turbo charger for the markets which'll drive us all spastic with everything else (jobs and Govt) falling apart at the seams around us

The New Normal: euphoric stocks, suicide Govt (and half the population)

an epic contrast to deal with mentally but nobody said socio-economics was easy

Fri, 03/16/2012 - 14:27 | 2262704 Tsar Pointless
Tsar Pointless's picture

<----- Days away from war.

<----- Hours away from war.

This post is bullish.

Fri, 03/16/2012 - 14:43 | 2262777 SilverTree
SilverTree's picture

Clever, I see what you did there.

Fri, 03/16/2012 - 15:07 | 2262879 gmrpeabody
gmrpeabody's picture

(Deleted for lack of brains..)

Fri, 03/16/2012 - 14:59 | 2262836 DoChenRollingBearing
DoChenRollingBearing's picture

@ Tsar

My best guess (which is worth nothing) is no war.

Fri, 03/16/2012 - 15:05 | 2262873 xtop23
xtop23's picture

 We're already at war.

Fri, 03/16/2012 - 15:32 | 2263012 malusDiaz
malusDiaz's picture

we have always been at war with Oceana...

Fri, 03/16/2012 - 15:53 | 2263105 akak
akak's picture

 

 

Obama is Peace

Freedom is Napolitano

Bernanke is Strength

Fri, 03/16/2012 - 17:30 | 2263473 lakecity55
lakecity55's picture

The Constitution is a useless old document.

Free markets and Exceptionalism is evil.

Ron Paul is Emanuel Goldstein.

 

--Barry X

Fri, 03/16/2012 - 18:08 | 2263574 akak
akak's picture

According to the BLS (MiniStats), the monthly chocolate ration has been raised from 25 grams to 20 grams.

Any citizen noticing the sawdust filler will be automatically guilty of Thoughtcrime, and punished accordingly.

Fri, 03/16/2012 - 20:04 | 2263908 AldousHuxley
AldousHuxley's picture

real thought crime is questioning white chocolate's chocolate liquor content.

 

 

Fri, 03/16/2012 - 21:12 | 2264071 Dolar in a vortex
Dolar in a vortex's picture

Holder is equality.

 

Except for those born more equal.

Fri, 03/16/2012 - 23:32 | 2264323 MsCreant
MsCreant's picture

Sorry friend, you missed this one.

Holder is Justice.

Sat, 03/17/2012 - 10:31 | 2264759 ISEEIT
ISEEIT's picture

F'ing AWESOME.

Fri, 03/16/2012 - 14:27 | 2262705 evolutionx
evolutionx's picture

Yes, it is amazing the castles in the air that can be built with paper money and deceitful manipulation of all economic data.  And Madame Bernanke de Pompadour will do anything to keep King Louis XV Obama happy, including flooding markets with unlimited amounts of printed money. They both know that, in their holy alliance, they are committing a cardinal sin. But clinging to power is more important than the good of the country.  An economic and social disaster is imminent for the US and a major part of the world and Bernanke de Pompadour and Louis XV Obama are praying that it won’t happen during their reign: “Après nous le déluge”.


More:

http://www.mmnews.de/index.php/english-news/7423-apres-nous-le-deluge

Fri, 03/16/2012 - 14:54 | 2262811 slowimplosion
slowimplosion's picture

Uh, I don't think so.

 

Ben is worried about bankers, not presidents.  You are just projecting your own biases.  Since the entire debacle was slammed into hyperdrive by Greenspan trying to stave off a recession, was he doing that just for president Bush?

Fri, 03/16/2012 - 15:17 | 2262945 ATM
ATM's picture

The Bernenk is a stooge who is caught in a Malthusian trap. He can only do QE but QE causes him to have to do more QE. The Bama has no interest in the Bernenk other than he not think outside the box because the Bernenk will bring about the very conditions for Bama's "fundemental remaking of the country".

and we ain't going to like it.

Fri, 03/16/2012 - 20:07 | 2263915 AldousHuxley
AldousHuxley's picture

there was a fine print to obama's "change"........and the fine print says 'no'.

 

 

 

Fri, 03/16/2012 - 14:28 | 2262710 Freegolder
Freegolder's picture

And this is why you just have to have some physical gold. When the day of reckoning comes, cash will not feel safe. Some will empty the cash machines, some will empty the shelves in stores, some wil rush for gold.

We all know it is coming.

Fri, 03/16/2012 - 15:02 | 2262856 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 and yes

But, there is value in holding, say, 3 - 6 months of living expenses in FRNs.  You do not want to have to trade in your PMs too early just eat...

Fri, 03/16/2012 - 15:18 | 2262954 ATM
ATM's picture

Exactly. The PMs are for after so you come out the backside with something intact.

Fri, 03/16/2012 - 14:32 | 2262711 Contra_Man
Contra_Man's picture

Federal Reserve files Ch.11 then "poof" Balance Sheet varnished and all can exit stage right?

Fri, 03/16/2012 - 14:34 | 2262744 Winston Churchill
Winston Churchill's picture

Folowed the USA A Corporation Registered in Delaware.

Fri, 03/16/2012 - 15:02 | 2262859 aerojet
aerojet's picture

Nah, Skynet would launch drone attacks against regular Americans long before El Reservo Federale goes tits up.

Fri, 03/16/2012 - 23:36 | 2264328 MsCreant
MsCreant's picture

Unless the Fed and ECB and the like are being set up as "The bad banks" in some bizarre world liquidation/centralization scheme...

Fri, 03/16/2012 - 14:29 | 2262717 EscapeKey
EscapeKey's picture

We all know what happened in September 2008. But what was the cause behind the expansion in June 2011?

Fri, 03/16/2012 - 14:33 | 2262733 Tyler Durden
Tyler Durden's picture

August downgrade of the US. Oh wait, conventional wisdom is the money went into bonds. Well, someone was buying bonds. Just not US retail investors...

Fri, 03/16/2012 - 14:49 | 2262784 Contra_Man
Contra_Man's picture

... rather The Federal Reserve files for Ch. 14 Bankruptcy?

Fri, 03/16/2012 - 14:54 | 2262804 EverythingEviL
EverythingEviL's picture

I'm fairly new to this site.  (around 6 months plus lurking awhile) I took all my 401k out of stock fidelity funds and put it into a vangaurd bond fund because of the crazy crap going on in stocks.  Now I know bonds aren't safe either but unfortunately there is no where left to go.  My company doesn't allow any pulling of our 401k's out.  Not even a hardship or one time withdrawl...nothing.  So it will just go poof one day and it's gone. I wonder how many others in my position have done something similar.  Also has anyone seen these Fidelity commercials where they now offer these cash accounts that are free and supposedly work like a bank checking account?  You even get an atm card and all that...I mean are they just making a cash grab or what??? After MF Global who in the hell would be stupid enough to open one of those damn accounts....no doubt someone is.

Fri, 03/16/2012 - 15:05 | 2262871 aerojet
aerojet's picture

You pretty much understand your position.  Just live with it and don't worry about it--we little people have nothing to lose, quite frankly.  You think a life savings measured in six figures means anything?  $100 Million is a rounding error to the elites.  They don't give a shit about us because we're already zeros to them. 

I think that Fidelity thing is for retired people--might as well try and get them to keep their money in the funds as long as humanly possible.

Fri, 03/16/2012 - 15:07 | 2262883 francis_sawyer
francis_sawyer's picture

 who in the hell would be stupid enough to open one of those damn accounts....no doubt someone is.

Start by talking to your friends & family about it to get a 'feel' for the aptitude out there...

Then again... DON'T... It'll only serve to make you an isolationist 'doomer' in the eye of your closest compadres...

Fri, 03/16/2012 - 15:19 | 2262958 EverythingEviL
EverythingEviL's picture

Trust me, I have been talking to anyone and everyone I can that will listen.  I am already considered the isolationist doomer, crazy, pessimistic jack ass by most people I tell.

Fri, 03/16/2012 - 15:34 | 2263018 Jonas Parker
Jonas Parker's picture

Welcome to the Club!

Do NOT follow this link or you will be banned from the site!