On That $100 Billion Eurodollar Barbell Trade

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Fri, 02/18/2011 - 16:35 | 975442 jus_lite_reading
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Non-event. Nothing to see. This is moot. Watch Jersey Whore.

Sat, 02/19/2011 - 09:46 | 977207 French Frog
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+1 jlr; obviously there are 3 people in here (so far) who know for sure (lol) what this trade means and they have decided to junk you for your 'less-than-understanding stance on this rather grave matter'.

Has anyone even bothered to think that it could simply be someone who had accumulated 100000 long March contracts since december from around 90.30 and has decided to close his trade(s) around 90.66 !?

Trust me, that is a nice little earner and it hasn't got a need for a "oh my god, there is something really big brewing in the background and no-one has a clue whether or not it is true but hey let's just throw it to the ZH masses anyway and see how many different theories we can get out of them"

Fri, 02/18/2011 - 16:36 | 975446 THE DORK OF CORK
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Physical cash is looking attractive - I wonder do the CBs have the balls

Fri, 02/18/2011 - 16:36 | 975447 hungrydweller
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Silver takes down the JPMorgue!

Fri, 02/18/2011 - 17:16 | 975564 I think I need ...
I think I need to buy a gun's picture

This is all adding up to a new monetary system shortly

Fri, 02/18/2011 - 17:20 | 975580 Hugh_Jorgan
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I agree that this is in the works...

Anyone's guess when.

Fri, 02/18/2011 - 17:28 | 975613 sabra1
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next wednesday, i'm getting a HAIRCUT on tuesday!

Sat, 02/19/2011 - 11:07 | 977286 Woodrox
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laughing... sabra1

Fri, 02/18/2011 - 21:53 | 976374 mr66
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RE: Sil ver taking down

JP morgue.....if so, then why isn't the stock tanking?

Fri, 02/18/2011 - 16:36 | 975448 TheGreatPonzi
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This guy has seen the face of the Portuguese and Italian bonds, that's all. 

Fri, 02/18/2011 - 16:38 | 975449 Yen Cross
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I shorted the eur/usd into Europe and set a hedge. The trade worked out well. If had walked away from it or taken a nap, my ass would have been handed to me. EUR/YEN spiked as well.

Fri, 02/18/2011 - 16:37 | 975450 superman07
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fat finger

Sun, 02/20/2011 - 18:49 | 980264 let-them-eat-cake
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Weather balloon?

Fri, 02/18/2011 - 16:39 | 975451 Alienated Serf
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Let me just add this; if anyone think LIBOR is an actual realistic measure of interbank lending rates, you are smokin some good ish.  I'm surprised Tyler hasn't dug up some dirt on what a joke it is... or maybe he has and I haven't seen it...

Fri, 02/18/2011 - 16:54 | 975479 Hephasteus
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Libor is simply a magician putting the gold lease rate in a hat GOFO. So this article is kind of really correct. As gold will be going ape shit next month from what I'm seeing.

Fri, 02/18/2011 - 16:56 | 975503 Alienated Serf
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i'm not making any comment on what this articel really means, as it is "above my paygrade."  all i'm saying is, do you think a bunch of primary dealers voluntarily stating what rate they could get a loan at from each other with no verification is accurate?  you think TPTB would get mad if LIBOR scared the sheeple?  its a major benchmark with no transparency.

Fri, 02/18/2011 - 20:12 | 976119 Hephasteus
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Well ya. It is basically meaningless. If the banks want to loan to each other no matter what the risk they won't raise it. So it just depends on how willing each participant is to handle the blowback of whatever state they are central banking over.

Fri, 02/18/2011 - 21:58 | 976389 Alienated Serf
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the central banks order it to remain low to keep anyone from knowing how bad things are.  national security and all...

Fri, 02/18/2011 - 16:38 | 975454 NOTW777
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"a rate hike (or expectations thereof) in the US"

hard to imagine; if i had to gamble, I'd rule that out

Fri, 02/18/2011 - 16:39 | 975455 Caviar Emptor
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I noticed that, was tempted. Someone knows something about liquidity shortage in Euroland, my guess. 

Fri, 02/18/2011 - 16:40 | 975457 Sophist Economicus
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Large move - CB/surrogate rope-a-dope?   Another way to get folks to correlate with various shorting strategies to feed risk rise?  Hmmm...

Fri, 02/18/2011 - 16:42 | 975463 NOTW777
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how many entities can make a bet of this size?

Fri, 02/18/2011 - 17:00 | 975513 HoofHearted
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I know of one guy..."Zimbabwe" Ben Bernanke. 

Fri, 02/18/2011 - 23:30 | 976623 Reptil
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gooooooood question.


Sat, 02/19/2011 - 11:51 | 977331 snowball777
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Anyone with 100 million FRNs.

Eurdollar contract margins are about $1k/contract and they bought 100,000 of them.

Fri, 02/18/2011 - 16:43 | 975465 Horatio Beanblower
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Does Julian Assange have a Bloomberg Terminal?

Fri, 02/18/2011 - 16:43 | 975466 TooBearish
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$100 billion notional bet that the eurodollar rate will decline over the next month


sold contracts betting rate will decline?  Huh? - Ty its beens along week take the rest of the day off bro

Fri, 02/18/2011 - 16:47 | 975474 Tyler Durden
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Price => Libor rate

Fri, 02/18/2011 - 16:50 | 975481 TooBearish
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Good edit - thanks fer the info market ate it up though.....

Fri, 02/18/2011 - 16:55 | 975501 Hephasteus
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So what do you think tyler. Euro dump the piigs? But it's gotta eat some of the piig debt to do it and drop in value big time?

Fri, 02/18/2011 - 17:00 | 975512 Alienated Serf
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LIBOR=> completely fictitious number dictated to "self reporting" banks.

Fri, 02/18/2011 - 16:47 | 975475 TheGreatPonzi
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This is called a short. 

Fri, 02/18/2011 - 17:19 | 975577 TooBearish
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Watch OI report from CME tomorrow to tell if it is or not.

Sat, 02/19/2011 - 11:55 | 977337 snowball777
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I am inclined to agree...someone is trying to be 'stealthy' about their borrowing.

Fri, 02/18/2011 - 16:45 | 975471 primefool
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Coupled with the huge spike in the Euro today - it sure smells like some european banks/hedge funds whatever are in bad trouble and very short of liquidity. The spike in ECB borrowings also ties in.

Next week should get very interesting.

Astonishing complacency in the markets going into a 3 day wekend - with the entire middl e east in turmoil, possible bank problems in Europe etc. I guess people who are playing with other peoples money with the Fed covering - feel no pain or anxiety.

Fri, 02/18/2011 - 17:03 | 975523 Racer
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That's cos there is NO risk in the market, the Fed has the banksters backs covered no matter what

Fri, 02/18/2011 - 16:50 | 975482 superman07
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soros ?


Fri, 02/18/2011 - 17:01 | 975517 Nepenthe
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My first thought. I'd guess someone knows one of the piigs is about to turn turtle...

Fri, 02/18/2011 - 18:20 | 975754 hardcleareye
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"This Sunday, February 20th, George Soros will appear on GPS with Fareed Zakaria.
In the interview George talks about the situation in the Middle East and reflects broadly on the nature of revolutions. He also discusses the state of the US economy and prospects for the future. "

Fri, 02/18/2011 - 16:53 | 975491 Racer
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And rumour of AAPL bidding for NFLX   ha ha ha ha ha ha ha

Fri, 02/18/2011 - 16:53 | 975493 falak pema
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I think this is Mubarak's ghost. He wants to pay back USA for letting him pick up his paycheck after eighteen days of dilly dallying allowing him to move his bullion to safety. Its the least he can do.

Fri, 02/18/2011 - 16:54 | 975495 BaronG
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Not sure if the two are related, but we use Wells Fargo as custodian for a few hundred million and all of a sudden yesterday Wells let us know that our clients are no longer able to open lines of credit, which are tied to the Libor. There wasn't any explanation given as to why the sudden change and nothing posted on the internal site.



Fri, 02/18/2011 - 17:02 | 975519 Yen Cross
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That's interesting. Thanks for the tidbit.

Fri, 02/18/2011 - 17:26 | 975603 Arkadaba
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WFC - next sacrificial lamb?

Fri, 02/18/2011 - 16:55 | 975498 Ragnarok
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OT: Gallup Finds U.S. Unemployment Up to 10.0% in Mid-February



Fri, 02/18/2011 - 16:57 | 975505 falak pema
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It could also be Khadafi who has just lost Benghazi to the mob. He's moving his heavy artillery in USD. Out and short on Eur$

Fri, 02/18/2011 - 16:59 | 975509 primefool
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This Euro currency move looks very artificial to me . Seems Mr Smaghi is simply talking tough as he must to get Weber's post. The Germans like tough talking CBers. Maybe the Chinese are trying to send a msg to Bennie to please please stop the BS? Who knows.

Fri, 02/18/2011 - 17:25 | 975597 pbnyc
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This is not a "euro currency" move, the Eurodollar contract has nothing to do with the Euro.

Fri, 02/18/2011 - 16:59 | 975511 TradingJoe
TradingJoe's picture

I am not as complacent as the rest of the "bunch"!

I do believe that politicians will do what is good for them, fuck the status quo, etc.!

Its not about the FEDs' "balls" or not,

its about the necessity, being forced to, by what ever events!

At that point WS is going to be really fucked or already in the loop!

Either way, buying some LEAP PUTS isn't a bad idea, eh?!

Fri, 02/18/2011 - 17:17 | 975565 whatsinaname
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Leaps ? Think more like 2013 dealing with these jerks with stolen fiat money.

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