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1.27 Bitches
Time for Plan B.... Oh wait.
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300bp in less than a day. now THAT is something that never happens.
this makes tarp look like a work of sheer genius
and friends, that is saying something
Everyone talks about TARP, when this was only a tiny part of Bernanke's and Paulson's attempts to repair their Lehman mistake: the total U.S. bailout bill for that one is about $9 trillion according to the IMF.
How much junk does the Fed already have on its balance sheet again?
So, friends, that makes the less than $1 trillion euro-bailout with almost no actual funds used so far, look pretty smart.
Wait for the next wake-up call, and chances are they will be in the dollar camp. Remember the end of last November: it was supposedly the end of the dollar then ... hmm, did not turn out that way.
And everyone will have equally forgotten this euro episode, when the dollar goes plunging next time.
um, right, but that all played out over a year + as the problem morphed and intensified - the euro area bailout is 12 hours old and nothing has happened yet
So far the TARP bill according to Neil Barofsky the Tarp inspector general is 25 trillion, BRILLIANT!
You would think $25tn would be enough to fix any and everything. Rewind to the begining, here is $25tn.
+100.
TARP tanked the market I recall.
The ways of a man seem right in everyway. When will we learn.
If you squint your eyes a little, that chart looks like Angela Merkel with a stake through her heart.
Nice.
A little Rohrschach word play, similar to that with the "peninsula chart" last week.
I know im getting boring with the pimping of the swaps, but just wait until the facility becomes operational and then the secondary market buybacks of EU bonds will be in $ not EUR. QE II by proxies; FED mission accomplished. The main thing is to devalue the buck not the Euro. In short; just wait for the swap facilities and go long EUR.
Cheeky, when do you expect the swap facilities to be up and pumping?
I thought it was just a rebranding of something already taking place???
they start on Tuesday, May 11th.
"Fed officials aren’t sure what the immediate demand will be for dollars or how much the U.S. central bank’s balance sheet will grow from its current level of $2.33 trillion. The ECB said its first offering will take place tomorrow."
http://www.businessweek.com/news/2010-05-10/fed-restarts-currency-swaps-as-eu-debt-crisis-flares-update2-.html
spot on. probably hit 1.25 first. then go back to 1.40. in the meantime FX trading desks will look like scorched earth, as gold hits 1,500
but don't the euros want weaker euros as much as bernanke wants weaker dollars?
It doesn't matter what they want. They screwed aournd so much in a criss that EURIBOR isn't a viable funding vehicle. LIBOR dollars is the shit.
The issue is whether Cheeky is right, and that depends on the size of the swap line. $200 bil is a fart in a tornado.
There will be nothing left but the connected rich and the penniless poor when this is finished. The electorate has no one to blame but themselves for allowing it.
EURIBOR is still an important interbank lending vehicle for non-participatory EUR EU countries. Especially for the countries which are not in the EU, and which have traditionally shunned the dollar because most of the economic exchange happens between them and EUR countries. EURIBOR is important, just no for the EMUs.
!?! Look at the difference between EURIBOR and LIBOR curves. To what do you ascribe the difference save that nobody gives a shit about euro funding anymore?
the spread indicates a lack of the demand, not the total disappearance of it.
The spread indicates a Euro currency crisis. Trichet is such a fuck-up he should be tarred and feathered.
there's been a massive run on tar and feathers... but all speculative and stored on idle ships
thats very different from what you wrote earlier. it may well be a currency crisis [and it is] but EURIBOR is still THE most important thing for many banks who do not have LIBOR access. Italians, Austrians still use EURIBOR. The world is bigger than just 20 member banks in London. I could not give a flying fuck to the fact that DB borrows at LIBOR and not EURIBOR, but i do give a thought or two about EURIBOR when i think about UniCredito, Banca Intesa Sao Paulo, Raiffeisen and HAAB since their presence in mine part of the world is immense and almost monopolistic. And it is easier for them to use EURIBOR for short term borrowing than LIBOR since LIBOR borrowing would certainly needed to be collateralized due to the economic region and the perception of said region in which they operate whereas EURIBOR recquires of them no such thing. AFAIAC EURIBOR is still very much important. Also this could be one of the reasons we see a LIBOR/EURIBOR spread like we do:
"...that's very different from what you wrote earlier."
You don't even understand what you're saying much less what I'm saying.
I agree that this is their plan; will they make it? They are messin' heavy duty; all markets have now fused with this spit/swap line. Either way, welcome to the New World.
...especially when many of those electro-FRN's are going right back into the hip pockets of the American banks....
...which are then being used to buy gobs of CDS on the PIIGS. Oh, the irony!
Here you go, wolves, I'll chop one of my legs off so can eat that. Now you'll be nice and let me live, right?
I wish you all would quit calling Fed Reserve Notes FRNs, as I tend to read that as Floating Rate Notes and then wonder why you would attribute them to such bizzare usage.
May I suggest you refer to them from now on as FU's (which stands of course for "Fiat Units")?
done, FU$ from now on
Full credit if you turn out to be right, but if the Fed's characterization of this vehicle is true, it doesn't seem like it would work, except in the case of an outright EUR panic or very long debt maturity.
Either way, they have to print EUR to fund the purchase. If they dump spot USD now to fund the printing, they have to buy those dollars (at what is supposedly a fairly steep rate) later to repay the credit line.
doesnt matter ... the 750B Eur go out of circulation for extended period of time and 1T bucks enter the market .... thats why the swaps .... EUR amount is not in circulation ...
Will the swaps grow the Fed's balance sheet (yet again), or is the plan to sell other assets in tandem with taking on the swaps? I know... the answer should be obvious, but I haven't read specifics anywhere. And what with some Fed governors making noise about asset sales, wondering if it would actually happen with these swaps being put in place.
"I know im getting boring with the pimping of the swaps..."
Cheeky,
Like that stunning blond in the red dress in The Matrix, you still know how to light up the ZH threads. Spot on with your assessment. :>)
I think either Ms. Tavakoli read your piece, or hyperlinked consciousness is prevailing ;)
Fingers crossed, 'Burn the Fed, burn the Fed....'
"Banging" the U.S. Stock Market:http://www.huffingtonpost.com/janet-tavakoli/banging-the-us-stock-mark_b...
Wow. And it looks like she got a sneak peek at my future chapters is well. Time to upgrade my firewall to hardware instead of software.
I'm a coincidence realist and I study coincidence fact. :>)
Fact, agreed. Applied knowledge creates a whirlwind of ideas. Time and place converge in the most sacred of moments.
No, honey! Just because I'm supposed to be at work, and you're supposed to be at work, and there is a strange woman in our bed, and I am also in that bed, does not mean that I am having an affair! I'm shocked! What an accusation!
Stunning?!
Break out the DVD. The picture does not do her justice.
Okay, so we should go long US stocks as a falling dollar re-ignites the dollar carry trade. Or, will that correlation breakdown this time?
i think the point is to go long gold, Euro, stock markets. i personally will choose gold and watch very closely at the ~1225 zone to see if it breaks out or not. if it does, then 1350-1400 could come calling very quickly (~1 month).
Let em carry trade all the way to hell. May their last carry trade be a penny for a ride across the river styx. Only to end up 9 million light years down river abandoned on a rock.
I'm telling mom they broke the Euro when she commes home! I'm gona tell, I'm gona tell!
By 'defend the euro' they obviously meant 'destroy the euro'. It's always opposite day in the Matrix.
Let's make Sarkozy man of the year!!!
A small man with a large mouth!
Why Not?
We made an "eloquent" lanky, ball-less MoFo president...
And gave him a Nobel Peace Prize!
While waging war on two fronts!
1) Iraq 2) Af/Pak 3) HOME
I count three.
4) Mexico?
Oh wait, that dirty little border skirmish is never mentioned in MSM.
Will the Euro or USD ever reach parity with the Mexican peso?
That would really open up the NAFTA corridors!
That's because it's legal to shoot mexicans. Strange thing is, you shoot one, and 2 pop up in it's place... Like cutting worms in 2 so to speak...
It's apparently NOT legal to shoot them if you wear the uniform of the Border Patrol, even if THEY are the ones that initiated the exchange.
"© 2010 WorldNetDaily.com
Agent Jose Alonso Compean. Courtesy of KFOX-TV
Two U.S. Border Patrol agents were sentenced to prison terms of 11 years and 12 years for shooting a drug-smuggling suspect in the buttocks as he fled across the U.S.-Mexico border
"
http://www.wnd.com/news/article.asp?ARTICLE_ID=52545
We will see EUR/USD 1 for 1 within a month or two...how can it not? It got all the way down to 1.2761 then they ran it back up over 1.28 barely. The EUR and the US markets in the final stages of ultimate collapse. The goons in Washington are already trying to figure out a way to make new circuit breakers. There is always a circuit breaker on the way down, but never when the melt up is in progress. Gotta love our elected officials. And people were worried about Jesse Jackson being President...LOL Hell, I think he would have done better.
nop, nominal value is 1.25$ and I think it'll stay there for a while.
Jesse and Obama. They were never on any type of parallel, of any kind, ever. Jesse would be a breath of fresh air. When Obama had the banks in Illinois, I knew. When he voted against the 30% cap on credit card interest, I knew again. (imagine MLK or even Jesse on that issue). But, when I really knew was when he started out-bundling banks v. Clinton in Manhattan.
http://nymag.com/news/politics/30634/
They really took out the shorts... for a millisecond..
A few hundred thousand euros just doesn't have the same purchasing power that it used too.....
A few hundred thousand billion euros just doesn't have the same purchasing power that it used too.....
I was just about to ask why no one was talking about the 1.27 handle. I guess the bottom line is that the EU does not mind a low euro, it just doesn't what a low euro because its demise is imminent...
lol. whoops. looks like theyve sure got those speculators on the run with their shock and awe, based on their sound reasoning and realistic forecasts.
Dude, I'm shorting BP as we speak. Why would you want to solve their little spill?
Sure, it sucks for the shareholders that all that oil becomes unusable, but get over it, there is plenty more where that came from!
Gimme ten gallons of Gulf of Mexico and check the tires, please.
Ah, so the strategy is to dump a trillion euro in the Caribbean to sop up all the oil? Beauty!
Sane? YOU WHERE A PAPER BAG OVER YOUR HEAD ON YOUR PICTURE FOR HEAVENS SAKE!
"YOU WHERE A PAPER BAG OVER YOUR HEAD ON YOUR PICTURE FOR HEAVENS SAKE!"
LOL. He is just nostalgic for Tyler's unregistered anonymous zombie days...
I definitely think that wearing a paper bag over your head is a point of concern.
I predicate New Orleans Saints... I mean N.O. Ain'ts fans will be wearing paper bags on their heads in the stands again before long... That must have been the 80s and I was not concerned.
I Viewed It As a Fan Vote of Confidence.
Now all you fuckers that were crying and chanting "Yes we can!" on the night of November 4, 2008 because you voted for "Change we can believe in!"...
Put those paper bags on your heads... you are the NEW Ain'ts...
Hopefully their solution sucks less than their presentation and website layout.
I mean, most of the late-night wackjobs are doing better than that. It looks like an Angelfire site from 1997 mixed with Hal Turner.
If your solution were so awesome, which isn't described anyway, you wouldn't have to spam us and take up valuable white space - you should be fined $5,000 bucks per line.
"you should be fined $5,000 bucks per line."
WW Is As Serious As a Heart Attack
That fine would be heavier than anything the SEC dished out on BofA... even after the judge made them...
Double Post-- Fuckin' NSA monitoring...
LOL
What do they post under-"anonymous"...?
You would think this story came from the Onion
Admiral Thad Allen of the US Coast Guard said it could plug the main leak.
"They're going to take a bunch of debris, shredded up tyres, golf balls and things like that, and under very high pressure shoot it into the preventer itself and see if they can clog it up and stop the leak," he told CBS television.
http://news.bbc.co.uk/2/hi/americas/8673815.stm
it could work if you add the golfers. There is at least one i can think of that is great at plugging holes. Gulf tournament coming up. Gotta figure how to get the blondes down there.
Hopefully there's a hurricane: Black Rain
---
Okay, edit. That's not what I really want. That mess is a frightful shame.
Stroke of GENIUS! Garbage...golf balls... looks like management is sharing idea's after they went to see a pingpong show in the Thai district. But as they don't have any pingpong balls they don't want their wifes to use, they chose the next best thing.
When BP goes belly up, these guys should apply at NASA!
Why not shove nuclear waste down the hole, killing two birds with one stone.
Hah!
That would probably kill more than just two birds!
colletoral damage, that will be put under control.
LET'S JUST BLOW THAT METHANE HYDRATE DEPOSIT WITH NUKES!!
ps: Do you know why it's not allowed to drill for methane hydrate in the north sea in Europe? Because it's so unstable, and a small explosion could trigger the gas fields to blow.
Just a littel sidenote.... noting to be concerned about...
If it ever where to happen, I promise: it will be fast, swift and almost painless.
I have it on solid deep background that the Adm is big-time Seinfeld fan and got the idea from the bit with George pulling the golf ball out of the whale's blowhole. Speaking of blowholes, wheres JCT?
Whole lota shark jumpin goin on.
Does your solution involve a fat thumb?
Seriously, all your site needs is the Midi version of "Octopus's Garden" and you're all set.
Oh, and maybe a .gif of an angel. A sparkly one.
Capitulation bitches!
isn't the point that oil & commodities are up? it's the risk trade stupid. the USD looks tired and ready to turn down and if the sense is the EU is going QE, then the trade is long risk assets.
that is my guess too
Amazingly, equities could care less where it trades right now. $1T's everyday until DOW 36000.
Gordo resigns, Merkel becomes more tenuous, and we all know it's just a matter of time before strikes, demonstrations and riots in Club Med. Then the "spirit" of the Spring of Athens will spread across national boundaries to target banksters and the status quo.
In how many languages can you say Americani Ite Domum?
and our police state will ensure nothing like that happens here.
So, the "capital" rushes to support the USD? Until we lose the House of Saud, maybe...
When the EUR hits 1.20, will they do a 10 trillion bailout?
They only need to think about it. The geeny in the bottle still holds 1 more wish.
What, me trade this market? Right.
Hey, kids of America, it's hand-painted, wooden Ball in a Cup! Who needs constant electronic video stimulation when there's Ball in a Cup, Mexico's favorite toy for over 340 years! Toss the ball, catch it in the cup, dump it out of the cup, toss it, and catch it in the cup again. The ball is on a string and attached to the cup, so there's no worry if you don't catch the ball in the cup, and clean-up is as easy as catching a ball in a cup! So why spend another day not catching a ball in a cup when you could be catching a ball in a cup?
And now back to ball-in-a-cup.
It'll never catch on. American kids are too busy downloading "two girls, one cup"
Is that anything like musical chairs with a monobra?
Oh, no, I didn't catch the ball in the cup!
Oh, wait a minute, it's okay because the ball is on a string and attached to the cup.
Is this the shock and awe that Turbo Tim suggested Europeans to do? It was that until early this morning, and now euro is back to trash again. Only person who can save the euro is Ben with his devaluation machine.
You know, is it too much to ask or to hope for that there is at least some market commentator out in there in the MSM with enough cerebrum functioning to ask where exactly the ECB is going to get these funds?
Euro is not a problem, right now. Weaker euro is actually good for eurozone. Bailout is about solving surging borrowing costs in sovereign debt markets of peripheral countries.
Good for exports
Bad for imports
Germany, the strongest EU country got big because of a strong Deutche Mark.
The EU grew, when it had a strong euro.
Name one country that performs better with a weaker currency.
China
(in a relative way - and everybody else suffers)
To a point - what about the USD/Yuan peg?
If they do well, wouldn't we do well also? Something about the rising tide lifting all boats - or maybe the rising tide drowns all who are mired in the mud.....
Did you mean Platform B.... Me too is waiting for the daily pivot at 1.27...that daily candle sure looks like a bitch if you dump a trillion in the market and you get a selling shadow like that... run for the exits!! The conductor is about to call the south bound train!
With the swaps they can pin that euro exactly where they want it. Not to hot not too cold.
interesting that libor has surged as well today?
If SHTF big time than the next step would be halting the forex and all kinds of other tradings and issuing strict currency controls. Speculators are powerful but they are playing with fire. Governments will take over eventually and there are lot of "extraordinary" steps available.
FED confiscated private gold in the 30's and do not think for a minute governments would not do something similar today too...
There isn't a gold standard, and most don't own any gold, and those that do own it offshore in London or Zurich.
401Ks will be confiscated, however. I guess that is what you meant by "something similar".
Lots of old people with gold teeth... LET'S GO GET SOME!!!
GOLD BITCHES! FUBAR!!!
Rubin wouldn't allow that to happen.
They will just slash the public sector universities to bits, throw a few municipalities against the wall, and escalate the retreat from Iraq/Afghanistan.
This is a game of "how long can we snow China?" But that's stupid, because the Chinese already know they've won. I mean, what the fuck, it's like the Chinese can't hire one smart guy? I mean, sorry, but they're not THAT dumb. They just know how to play poker.
Im surprised they HAVEN'T yet confiscated gold, 401K's, pensions! Thats certainly coming.
You know what's surprising.
One of these.
http://www.budsgunshop.com/catalog/product_info.php/products_id/13607
I can't even believe they're legal. Concealed weapon carry because it's a pistol - but it packs ~3X the wallop as a .45 ACP - plus 30 rounds!
Awesome! My computer randomly put on the closing musical salvo of Fight Club, "Where Is My Mind" by The Pixies. The song seems befitting of the occasion as it was the same thing playing when Durden (in the film) attempted to put credit finance back to zero.
I was thinking Scorpions:
The night is calling
I have to go
The wolf is hungry
He runs the show
He's licking his lips
He's ready to win
On the hunt tonight
For love at first sting
Here I am, rocked you like a hurricane
As long as EU banks have Euros to move around, nobody much cares if the exchange rate is $1.27 or $1.25. The problem is liquidity, the problem is liquidity, the problem is liquidity...
long term average 1.18? a speed bump on the way to 1.0
What's a Trillion$ between friends?!
And just for the record it's WEAR a paper bag not 'where' a paper bag! Sheesh!
i No! yood thinc that peepul cud speel write wunce in a wile...
They're traders - you know all thumbs.
Come to think of it all FAT thumbs!
Euro about to make new lows for the session, look out below!
Merkel on Bloomberg TV "Thees ees en attack on our currenzee and we vill devend it!! Ve vill make downticks in zhe EUR illegal! "
H o o o gan! Vhat eeez going on in here? Zis eeez not acceptable!
Hmm, the line comes out better when you are wearing a monocle.
This wa not the quivalent of us passing TARP...this was the equivolent of us banning shorts on financial related stocks. BOOM.....BUST!!!! just like that.
This was not the quivalent of us passing TARP...this was the equivolent of us banning shorts on financial related stocks. BOOM.....BUST!!!! just like that.
Not boring CB
"I really can't believe it," Clevinger exclaimed to Yossarian in a voice rising and falling in protest and wonder. "It's a complete reversion to primitive superstition. They're confusing cause and effect. It makes as much sense as knocking on wood or crossing your fingers. They really believe we wouldn't have to fly that mission tomorrow if someone would only tiptoe up to the map in the middle of night and move the bomb line over Bologna. Can you imagine? You and I must be the only rational ones left."
In the middle of the night Yossarian knocked on wood, crossed his fingers, and tiptoed out of his tent to movedI really can't believe it," Clevinger exclaimed to Yossarian in a voice rising and falling in protest and wonder. "It's a complete reversion to primitive superstition. They're confusing cause and effect. It makes as much sense as knocking on wood or crossing your fingers. They really believe we wouldn't have to fly that mission tomorrow if someone would only tiptoe up to the map in the middle of night and move the bomb line over Bologna. Can you imagine? You and I must be the only rational ones left."
In the middle of the night Yossarian knocked on wood, crossed his fingers, and tiptoed out of his tent to move the bomb line up over Bologna.
ve the bomb line up over Bologna.
+1 for the Catch-22 reference. Well played (not well pasted, but well played)
Yeah that was some ugly pasting.
It was a "paste-and-run". 30 days in jail. Don't make us send the SWAT boyz to get ya.
Anyone wanna bet that they goose the EUR/USD back to 1.30 tonight so they can pump the futures for tomorrow?
BANZAI7 NEWS-- Apple Computer announced that it is releasing a specially configured version of its popular iPad called the EURO-PAD for exclusive release in the European Union.
The EURO-Pad will sport the following custom design features:
[Dup deleted]
Regional Indian is probably a graduate of
IIT whose brighter than half of MIT. Works
for $300 per month for some desperate little
Indian Inc. so indulge him a little...just a little
I still junked his 2nd post...
Too bad. If he made $303.99 a month he could afford godaddy. I'll to put a call in to Dell tech support right now to help get the guy a raise.
well we will soon be joining his ranks eh? $300 pm maybe soon a respectable salary here and you may still be paying $8 for gas..
Correction: $300,000,000 pm may be soon a respectable salary here and we may still be paying $8,000,000 for gas.
:-)
Did the usual OpEx ramp start a week early?
Simply amazing, after hanging their heads in shame and pinky swearing to never do these nutty 'swaps' and A+ insurance on junker jallopies, their new solution to all the problems it all caused is...RESTART SWAPS! Hooray.
Short covering rally at best, they couldn't even prop the Euro up for a day,. Hi Yield Corp. and China look rather ill. If so Mkt is losing its lead group.
Stocks go up 400 points per day in a bear not bull mkt.
The monthly hi yield CYE stochastic at 95 % . Extremely overbought, compare to Dec 08 Stoch of 19 %. Extreme oversold. Junk is about to go to junk.
The monthly chart is your best friend for Valuation/risk measure.
vc
TRICHET: "Sacre bleu! My azz! My azz!"
USD is no better than the EUR in the continuum, they are both worthless paper.. its like my shit is better than yours kinda argument..
6 months ago @ 1.51 they were throwing the USD into the rubbish can on the cover of Time magazine.. now Europe is on the front page, short positioning at all times high, EUR flushed down into the toilet and sentiment took a dip.. no wonder China is the buyer lately..
"But why do they put a guarantee on the box?"
"Because they know all they sold ya was a guaranteed piece of shit. That's all it is, isn't it? Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I got spare time."
This is some damn funny shit here ... TD, if only you could be this funny. (JK of course)
http://kunstler.com/blog/2010/05/and-chicks-for-free.html
Tnx for the link. Very funny!
A trillion just aint what is used to be.
DEBT TO LEFT ,DEBT TO THE RIGHT ,
BOLDLY RODE THE BRAVE 6 DOZEN CENTRAL BANKERS,
" PRINT " THEY CRIED OUT !!,
" PRINT SOME MORE" THEY CRIED OUT !!,
WE SHALL PRINT PRETTY PIECES OF PAPER BY
THE SHIP LOAD , WE HAVE TOSHIBA LASER PRINTERS AND WE CAN OUT PRINT AND PRINT FASTER THAN ANYONE OR ANYTHING ,
(INCLUDING REALITY ) CAN OVERCOME ,
LONG LIVE THE FIAT FAKE MONEY WARS !!!!
Ramp up the N.A.S.A. Budget ,
we have to find another planet or two with a few billlion people
to Buy lots of U.S. /EURO Treasuries/bonds .
CONFEDERATE BONDS , BITCHES !!!!!!!
thats sum funny shit dude
great way to end the night at "as the world squirms'
hasta luego
I'm still hangin onto my stockpile of USSR Rubles and Brazil Cruzeiro Reais! CASH IS KING BITCHEZ