White House Chief Of Staff Warns About "Stressful Days In The Market"

Tyler Durden's picture

Update: we have just gotten word that there will be a GOP conference call at 4:30 pm on the debt limit. Apparently the GOP is dead set on the 8pm Asian open and disregarding the much more important FX open.

It may be time to panic... at least on a "transitory" basis. After Boehner essentially said earlier that there are still no details what the "two-tier" plan noted yesterday would look like, we now are 5 hour away to FX open. And judging by the comments of White House Chief of Staff, it is almost as if the administration would like to see a selloff. Per Reuters: "White House Chief of Staff Bill Daley said on Sunday there will be a few stressful days ahead for financial markets but that a U.S. debt deal will ultimately be reached. "In the end, we may have a few stressful days coming up -- stressful for the markets of the world and the American people," he said on the CBS program "Face the Nation. Daley quickly added that he is confident a deal will be reached to raise the debt ceiling. We are confident he is right. We are also confident that if it takes a 200 point plunge in the S&P to achieve that target, well, so be it.

We suggest grabbing front row seats at around 4pm today when the first USDXXX pairs start getting updated.

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TruthInSunshine's picture

We are also confident that if it takes a 200 point plunge in the S&P to achieve that target, well, so be it.

Sheesh. We're such a nation of collective wimps.

I remember back in 2008 and 2009 where it took MANY days of 50 to 100 point INTRADAY drops in the S&P 500, cutting it in half from it's 2007 highs, to properly stress the American People (aka Hank Paulson/Goldman Sach/JP Morgan/Red Shield 'Give Us We Want & We'll Stop Tanking Your 401(k)/Retirement Accounts' play).

Bob's picture

It would appear that somebody has elected Mr. Market to lead this country.  He has advised, apparently, that he will tolerate no losses whatsoever. 

At least the waterboys of the finance industry are now speaking plainly.  Through their Mr. Market Sock Puppet, of course:

"Look, Mr. Market, we won't even allow Asian markets to drop!"  <canned applause>

Mr. Market sock puppet dances around wildly, then breaks into song: "I've got that joy! joy! joy down in my heart!  Down in my heart!  Down in my . . . " <curtain drops>


TruthInSunshine's picture

One would think they would try and hide it better - you know, their concern/obsession with the reaction of the markets.

Once upon a time, the duties of 'elected representatives' included paying attention to the concerns and best interests of their constituents.

It would appear that the primary role of our fine, elected representatives in modern times is to ensure that markets get the hot beef injection at all times.

"We understand the pain that formulating a new way to dramatically understate inflation is causing Americans, however, we must not and can not allow the conditions whereby shares of PCLN or LULU will fall."



Aware of the pressure of Monday’s market opening, Speaker John A. Boehner said Saturday that Congressional leaders were working on a new deficit-reduction plan that would resolve the impasse and allow the debt ceiling to be raised. He said he hoped the plan could be announced within the next 24 hours.

Pedro's picture

That angle never occured to me, but it is so true.  What an amazing sales job that these guys pull on our leaders and then our leaders to us sheep, that we are now getting worried about something that won't affect us "middle class".  Our IRA's and 401K's are already shot.  But,  your point about our elected reps is right.  One would think that Boehner would simply say "The people have spoken clearly about more spending and giveaways.  they simply don't care about the financial firms, asian markets or whatever."

knukles's picture

Aw, it's according to scrpt.

They want a cheaper dollar.  WTF think this is gonna do?
Rally it against the Zimbabwe, the Dickdongdrip and the Angolan Heebijeebie? 

Every crisis in DC is a crisis in DC whether its a crisis or not.
All Kabuki theater.

If we default, for real, not just a few day selective, specific, administrative, momentary default.... the US's borrowing capacity collapses to nil, naught, not, no more, good fucking bye for a while, meaning that only "critical" expenditures is gonna go forth.... killing innocent women and children in the 6 wars we got now, adding a few more, Bonelandsecurity, Airportscreamers, the good all Americun important shit.
Somebody's got something to really loose big time, here.  The constituencies are a-watching.

And will probably be us, the peasantry who get top pay for more anyhow.
See, without the balanced budget deal, this is all fluff.  Cut a Trillion today, spend it again in a month, anyway.

cosmictrainwreck's picture

Nicely done, Bob.........

Pedro's picture

My thoughts exactly, Bob. Why can't they cut spending and let the market find its bottom. The artificial market is only helping a select few. I have heard the arguments of how tarp, QE... will hurt main street and don't buy any of them. I don't beleive that any amount of money will be good enough for the banks. They will find something else and threaten us again. Same for the govt.

Bob's picture

Mr. Market seems to have Chucky's disposition.  WTF make him our Leader? 

If we do that, we'll be screwed--at least the Greeks have a real human body to focus their ire upon.  The game here seems to be to make it all appear absolutely impersonal and beyond human influence. 

Ignore that man behind the curtain!

DoChenRollingBearing's picture

From CNBC:

Dow futures: -69

S&P futures: -1.70

Nobody seems to care (12:48 PM ET Sunday)

Bob's picture

Interesting.  Of course, Al Quida hasn't attacked us in ten years, either (another sock puppet that is useful as hell for threats from our Beloved Leaders.)  Wonder if these idiots are gonna give us a chance to find out what the real market (such as it is) would do or just dramatically JUMP the way they want to and then claim to have saved us from Mr. Market's "nasty side."

John Law's picture

Super Congress: Debt Ceiling Negotiators Aim to Create New Legislative Body:



How true is this? I wonder if this is the "two-tier" Boehner is talking about?

bob_dabolina's picture

I read that earlier too and it immediately made sense for me. The American people elect these people to make tough decisions and so what do they do? Create a legislative body to make the decisions they were elected to make.

Buncha fuckin' pussies.

wisefool's picture


All this does is allow the lobbyist organizations to drop their conflict of interest rules. Meaning G.E.'s tax LLMs can work for both of the two parties at the same time, regardless of their token politicians' party affiliation or which chamber they sit in. A lobbyist All-Star Game with the strawman stooge team appropriately named the Washington Generals.

Pussies indeed. People think the new "tea party" member are intransigent. You would be too if the first day you showed up to work you found out all the toilets on-site (congressional record, tax code) were pay toilets that required exact change, in values from 10 to 120,000 pages. And the only money changers in the house are the technicians for the lobbyist groups.


MonkeySmoke's picture

Well, if the dollar crashes against all currencies, then gold and silver should be upstoppable; unless, of course, money was somehow put into place to get the PPT back on board.

holdbuysell's picture

Still getting used to the new interface but liking it. Nice job ZH/TD.

Sudden Debt's picture

to bad you can't get junked anymore....


Landrew's picture

My Dear,

That's why I love you, thinking outside and ahead of the box crowd :)

Back from Tololo, Chile and I smell the IMF and World Bank there! Cranes everywhere building houses

and condos I can't afford while making more than 99% of all Chileans!


gmrpeabody's picture


You can still junk..., only it's a little harder.

Sunshine n Lollipops's picture

And now it's personal. No more drive-by junking. Take that, cowards!

FEDbuster's picture

Is the print smaller or is it just my aging eyes?  I can barely read the reply type.

Long-John-Silver's picture

You can increase the font size in your browser. In FireFox it's Ctrl++

Use of Weapons's picture



Thanks for that... the default was far too large.

MonkeySmoke's picture

Well, if the dollar crashes against all currencies, then gold and silver should be upstoppable; unless, of course, money was somehow put into place to get the PPT back on board.

John Law's picture

edit: sorry, double post

Long-John-Silver's picture

Is this is bullish for Gold and Silver? /sarc

Chief KnocAHoma's picture

Land - check

Gold and Silver - check

Protection - check

It may not happen this week, but the day will come where my family will have to live off of our small tract. Goats, chickens, deer, veggies grown in the garden.

Watching Money Never Sleeps while I peck this out -

"Lou are we going under?"

"You're asking the wrong question Jacob... Who isn't?"

Manzilla's picture

No it won't but hell it never hurts to be prepared. I have all that stuff as well but not because of paranoia but because they are all smart things to own.

Chief KnocAHoma's picture

True... and a rsing niche market. My real estate practice was dead before I recognized the demand in small rural tracts. It is a new boom.

Bananamerican's picture

what/where do you recommend to look for in acreage?

Cathartes Aura's picture

emulate the leader-class, ala Dubya - secure aquifer, southern hemisphere (avoid the Fukushima fallout stream), no daily chemtrail flyovers with the resulting heavy metal soil & water pollution, preferably also avoid GMO cross pollination of crops. . .

DCFusor's picture

RIght -- good times or bad.  I started acquiring the farm, building the buildings I now use, and so on way back there in the '70s.  Not because I thought the sky was falling, but because in ANY times, it's better to live in the world of true neighborhood where friend helps friend, than in the anonymous world of the city where dog eats dog.  Homesteading was strenuous, but actually a lot of fun -- humbling at first, confidence building later.  You'll make mistakes that seem stupid in hindsight, even if like me, you were a hot-shit engineer and a go-to guy.  Over time, your knowledge will convert to wisdom, and it's a worthwhile trade to go long on.

The fact that it made me ready for "whatever" is just bonus, and I don't need to be paranoid or use tinfoil to make hats.  I prefer raccoons for hats, actually.

And for others who are basically prepared - don't forget that if things really do go downhill bad, there are going to be people you'll want to be able to help too (maybe not many, but a non-zero number -- what about that old friend who shows up unexpectedly?) -- put up a little extra for them as well.  They might be worthwhile to have around the farm, and might help with any two-legged predators that do show up.  Most people underestimate what they'd need even for themselves, so it's a good move anyway.

You might think of yourself as a great planner, but I bet you find yourself at the store to pick up something you forgot to get enough of in the last shopping trip fairly often.  Where I live it's very easy to notice yourself doing that, since one of the ways we save is to grocery shop on a momthly basis because the stores are so far away...Look at how often you do that -- now imagine either no gas or no store or any of a number of reasons you can't just call a mulligan....being really ready is fairly hard.

Chief KnocAHoma's picture

Great response DC. I am very comfortable in managing land and producing food and killing game.

The energy thing is a weakness. My well requires electricity and I am trying to develop solar back up now, but the expense/return is not good.

So we will do the best we can. Gas and diesel are also problems, but I can go several months without either. Surely that will be enough, right?

We do two weeks every Fall on the property. My family thinks it is fun, but I am preparing them without telling or scaring them. After all, it may never happen. Our nobel leaders may put country first and solve all our problems, making my attempts at self sufficientcy moot.

Or not.

I am The Chief.

Chief KnocAHoma's picture

Land - check

Gold and Silver - check

Protection - check

It may not happen this week, but the day will come where my family will have to live off of our small tract. Goats, chickens, deer, veggies grown in the garden.

Watching Money Never Sleeps while I peck this out -

"Lou are we going under?"

"You're asking the wrong question Jacob... Who isn't?"

I am The Chief

ElvisDog's picture

Just more evidence that the markets are rigged ....

Boilermaker's picture

Exactly my thought.  Clearly, the only thing of true importance is to recapitalize the banks/rich (take your pick) throught the three card monte scam in the markets.  Everything else is just unimportant static.

80% of the US equity market is held by the richest 1 1/2 % of Americans.  So, who are we really trying to protect here?

TradingJoe's picture

will be very interesting week:)))

FEDbuster's picture

Sure seems like they are setting the stage for one.  Turbo Tim is on just about all of the Sunday morning propaganda shows.

TK7936's picture

Lower the debt cieling!

redpill's picture


And if they have a problem figuring out what to cut, just go back in the Congressional archives and use the last budget that fit within current revenues.


Bananamerican's picture

"use the last budget that fit within current revenues."

...but then who would feel up granny?