VIX Explodes As Attempts To Fix Broken Market Fail

The market is now irreparably broken - if you are trading your own money today, or in the near-future you will lose it, and you can thank the SEC, the NYSE, dark pools, Goldman and all the other "liquidity providers" and market makers. The damage control by the mainstream media has failed. The European bailout has failed. The Nonfarm number was a failure, despite Obama's attempt to spin it favorably. The entire bear market rally is finally being seen for the sham scam we have said it was from the very algo-manipulated beginning. So is it any surprise that the VIX is now double where it was a few days ago. All those who sold calls on the VIX are getting carried away in bodybags, the only question is whether the decimation there is worse than among the ranks of the carry traders. At this rate the market is likely going to close near the stop limit positions in the 1,050 range, which will push traders over the weekend to take weapons grade doses of Xanax. Alternatively, mutual and pension fund idiot money will simply sell.

Fake +290K Payrolls "Added", Real Number Is 36K After Census And Birth-Death, Unemployment Goes Back To 9.9%, Underemployment At 17.1%

290K of which census was 66k and Birth Death was 188k. Hurray -the economy added a real 36k in jobs in April. Still, we are curious how the Chairman will not be forced to discuss tightening after this B/D adjustment inspired number (188K in April B/D, 81K in March). And in the meantime, headlines will read Unemployment back to 9.9%, and Underemployment back to 17.1%. Record jittery market bounces than calms down again.

Themis' Take: May 6, 2010 – The Day That Will Change Market Structure

Today’s action left us amazed, and we have been warning about this stuff since December 2008. Where do we even start? Yesterday afternoon and evening all the business programming focused on how the markets were in turmoil, and Greece this, and overdue correction that, and fat finger the other thing. They couldn’t even recognize the story, as even the business media doesn’t understand that the markets are a changed structure and beast. The story is not a key-punch error. The story is a failed market structure. The market failed today. - Themis Trading

Here Is Who Traded What And How Much Yesterday

Here are the detailed Indications Of Interest blasts in the SPY blasted by various market makers. Not surprisingly JPMorgan, UBS and Morgan Stanley were the three busiest bees selling and buying in what was certainly a record day for their ETF and correlation desks. As theaudiorecording posted earlier discloses, we know that MSCO at least was a size seller. We are curious who were the buyers, i.e., doing the bidding of Liberty 33.

Greek 10 Year Hits 952 Bps, +100 On The Day, 5 Years At 13.6%, German Professors Announce Imminent Greek Bail Out Lawsuit

At this point there is no need to refresh the Greek curve in graphic form: the country is finished in its current format. Bailout, no bailout, the market has spoken. Even as the German Bundestag (lower House of Parliament, the Bundesrat will vote later) approves a bailout, which unfortunately is too little too late at this point, Market News reports that several German professors "will file a lawsuit at the German Constitutional Court today against the German aid for Greece." This will put a procedural stumbling block in the rescue machine, as Greece is in desperate need to getting funding this weekend: some estimate that the entire country has far less than 1 billion available as "petty cash" not to mention it has to fund billions in maturities. The end game at this point is all to clear, even German FinMin Schaeuble said that "s a consequence of the current crisis, rules for an orderly insolvency of a Eurozone member state should be established, Schaeuble urged, reiterating previous comments." Yeah, those orderly procedures are oh so easy to implement. Just look at how easy it is for that political corpse Dodd and his worthless bill: As the Dude says it best: "That's a great plan, Walter. That's f#*$&' ingenious, if I understand it correctly. that's a swiss f#($*& watch." Alas, the troubles in Europe have devolved to the comedic content of a Coen brothers movie.

Currency Devaluation 101: Japan Pumps Liquidity For First Time Since December To Punish Surging Yen

Japan takes a bold step toward moving away from second to last place in the currency devaluation game. Bloomberg reports:

The Bank of Japan said it will pump 2 trillion yen ($21.8 billion) into the financial system after the Greek debt crisis caused instability in financial markets in the U.S. and Europe.

The emergency measure represents the bank’s first same-day repurchase operations since December. The balance of current- account deposits held by financial institutions at the central bank will likely increase to 16.9 trillion yen, up 800 billion yen from yesterday, the central bank said.

Of course, right now Ben Bernanke an d the US dollar are dead last in the fiat bonfire. But not for long.

Luckily, the only real winner out of the Keynesian death rattle will be gold. Which is the LBMA is doing all it can to manipulate the price lower right this instant. All the better - entry points will be fewer and harder to come by as the time to the final Keynesian unwind draws nearer with each passing day.

Senate Rejects Brown-Kaufman Proposal To Break Up Largest Banks

The Senate is officially bribed, paid for and in the pocket of the big banks. Too disgusted to even comment on this. This country deserves all that the "big banks" have in store for it.