iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
21,250 Blog Posts

We Are 100% Screwed

I am so mad right now I can barely write in discernible english.

Let’s go over the events that led up to today, crash day.

1. Plunging commodity prices, ignored by our central banks.

2. Zero growth in Europe.

3. Decelerating growth in China.

4. A Federal Reserve who’ve been talking about raising rates during a deflationary attack on markets.

5. Plunging yields, caused by flight to safety.

6. Flattening yield curve.

7. ECB head Draghi is all talk no action.

8. The fucking Nazis balanced their budget for the first time in 40 years, at a time when deflation is the risk.

9. Bond yields are now NEGATIVE in the following countries: Germany, France, Austria, Belgium, The Netherlands, Finland, Switzerland, Sweden, Denmark, Japan.

Retail sales numbers came in weak; but I am not concerned about that. Those numbers are for idle morons. You really need to judge retail on a case by case basis. Without a doubt, the drop in gasoline will be a net positive for good merchants. But crappy stores are just crappy and will never garner enough business. The drop in gasoline has been so sudden, so quick, that consumers haven’t even realized what the hell is going on, and have pocketed the savings. Give it some time, they will spend it all.

Futures are down more than 200. I’d like to tell you we can rally off the lows. But the truth is, we are in a deflationary vortex, at a time when central banks seem to be stuck in a morass of sheer and utter stupidity. The prevailing wisdom seems to be emanating from talking heads who literally want to DESTROY western finance through pre-mature rate hikes.

We need more cocaine. I’ve been saying this for more than 6 months. While most of you laughed at me and poked fun at my suggestion that another round of QE was needed, you will not be laughing after today–after today’s sit inside of the death vehicle heading straight for god damned hell!

Happy trading, fucked face.

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34 comments

  1. bood

    you definitely missed 1 point
    9. all times’ high

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  2. montrose

    http://youtu.be/olMc3PApALQ

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  3. zuul

    I’m mad that I didn’t put spoos puts at 2050 yesterday, which was my plan. God cold feet. But, there will always be another chance. Love volatile mkts.

    Also, this is a great, great post.

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  4. duckkell

    when QE4 is announced – whats the first move?

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  5. prometheus

    The moment the Fed took it’s foot off the pedal, the engine slowed the fuck down Right Away. If we head into deflation, Gary Schilling will have been right when he said the Fed did not have enough cash to compensate for the loss of capital during the ’08/’09 crash.

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    • j

      Nonsense. The CB has as the ability to create as much money as it wants in a fiat currency regime. It’s the willingness to do so which is questionable.

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  6. j

    I’m not as negative. The ECB is appalling, but it will move towards QE next week. Euroweenie QE got through a hurdle today with the advice been given to the German High Court that it is legal.

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  7. pirate

    Cap’n, is this what the market has in store for us today?

    https://www.youtube.com/watch?v=mzGw_4sCjfc

    Arrrr.

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  8. johnrotten

    Rick Santelli can’t wait for a station break so he can slip into the bathroom and smack up his 3 inch boner. I hope his goal post front teeth fall out as he clenches them while he nuts.

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    • dewey dortmunder

      I heard he bought a penis pump and is currently fluffing 3 3/16s.

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      • johnrotten

        HaHaHa … He should probably go metric system and measure his penis pumped growth in centimeters so he doesn’t cheat himself. Fluffing … LOL

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  9. gorby

    Deflationary vortex-That means co’s pay
    less for inputs right. You think they pass
    that on.

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    • j

      There’s good deflation (think tech sector) and bad deflation. Bad deflation sees a fall in aggregate income and income is what is used to service and repay loans.
      Bad deflation fucks your economy.

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  10. budh

    Cash doesn’t go down. Particularly in a deflationary environment. It’s so odd, the FED prints massive currency and the value of the dollar goes up. Europe has austerity and their economy tanks. -0- hedge has been completely wrong.

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  11. tmoe

    Hey lower oil prices are a tailwind…. NOT!
    As stated before more than just the energy industry workers are going to be hurt

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  12. smartestone

    TMF

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  13. smartestone

    dead cat bounce. trade accordingly

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  14. rangersfan

    I like $VSLR , easy to manage, maybe we get a bounce in oil.

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  15. dewey dortmunder

    When you say crash, do you mean move my IRA to cash for manana?

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  16. the profit

    Dead cat bounce? Or live cat trouce? so hard to tell these days.

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  17. dragun

    Question will be is the ECB QE going to do it, or are they heading into a gun fight with a spork?

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  18. tradercaddy

    I like SMH (chips) etf right now and IWM (Russell 2000) etf.

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  19. gorby

    $BALT- are they on their way out?

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  20. jcvtwo

    A gap down, being bought is all I see. Where is the end of the world?

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  21. bruce keller

    You bottom feeding knife catchers will experience unheard of pain these next few days I think.

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    • zuul

      Identifying as a bull or bear is the easiest way to get annihilated in this market.

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  22. pyromonoxide

    nice summary!

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  23. traderconfessions
    traderconfessions

    We are 100% screwed until later today or tomorrow when the market goes up 225. You know that’s going to happen.

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  24. jacked rabbit

    Thank you. All in all, it’s just another brick in the wall.

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