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After Global "Risk Off" And Rumor Of Saudi King's Death, ECB Comes To The Rescue, Buys Portuguese Bonds

Tyler Durden's picture




 

Risk is off with a vengeance. After Asian markets (ex-Japan) experienced a total rout, which also included Hong Kong, the emerging market money is now in full withdrawal. And if it is going in the US (ex. a rotation out of munis into equities, something which Meredith Whitney should be congratulated for), you could have fooled us: futures are decidedly negative on the back of last night's horrible Cisco numbers. The cherry on top is a rumor reported by Islam Times that Saudi King Abdullah has passed away: "King Abdullah talked with Obama about the situation in Egypt over the
phone yesterday. Obama and the King got into a  heated debate about
their opinions of what Hosni Mubarak should do. After the phone call
sources stated that King Abdullah was furious and then suffered a sudden
heart attack. Doctors ran to his rescue  but were unable to
save him.  He was pronounced  dead, but his death was not reported
due to the  sensitive conditions that  exist in  the region. The Saudi
Arabian government will reject this claim; but the ball is in their
court to prove that he is alive." Obviously this is not helping the brent bid, which hit nearly $103 overnight (although the rumor has yet to be confirmed). Lastly, all this of course means that glass house, i.e., European peripheral bonds are plunging, and the result is that the ECB has to come in and after two weeks of inactivity is forced to manipulate the bond market by buying directly. So much for that European sense of calm, which we said last night was going to be blown away very shortly (here and here).

Below we can see just where the ECB lost today's fight to the vigilantes.

 

 

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Thu, 02/10/2011 - 08:29 | 948831 Fanatic
Fanatic's picture

Obama killed the Saudi King? Riiiight...

Thu, 02/10/2011 - 08:33 | 948836 eftian
eftian's picture

Yeah, over the phone, Darth Vader style..

Thu, 02/10/2011 - 08:47 | 948853 Orly
Orly's picture

I find your lack of faith...

disturbing.

Thu, 02/10/2011 - 08:58 | 948869 Moonrajah
Moonrajah's picture

Obama: Now I am the Master!

Abdullah: Only a master of Evil, Obama!

[lightphone clash]

Thu, 02/10/2011 - 10:09 | 949028 uhb
uhb's picture

If You only knew the POWER of the dark side!!!

Thu, 02/10/2011 - 08:59 | 948876 Implicit simplicit
Implicit simplicit's picture

Talk is cheap, unless it is long-distance; then it is deadly.

Thu, 02/10/2011 - 09:26 | 948919 Cursive
Cursive's picture

The Saudi Arabian government will reject this claim; but the ball is in their court to prove that he is alive." 

Lulz, per the Islam Times.  Weekend at Bernie's....

Thu, 02/10/2011 - 09:20 | 948910 jus_lite_reading
jus_lite_reading's picture

He did! He did! He really did! GW Busch left Obamao his cell phone with the private number to the Saudi King under the name "Oil Money" in his address book.

Thu, 02/10/2011 - 10:21 | 949063 sushi
sushi's picture

Obama and the King got into a  heated debate about their minions

 

It was STUXNET II that did it. In one ear and out the other. No trace apart from the warm corpse.

Thu, 02/10/2011 - 09:41 | 948949 Twindrives
Twindrives's picture

Obama dispatched his CIA supported Al Qaeda thugs to do it.

Thu, 02/10/2011 - 08:32 | 948835 Tense INDIAN
Thu, 02/10/2011 - 08:41 | 948845 French Frog
French Frog's picture

It might be worth waiting for a dead cat bounce to 5350/5400 to short India again

Thu, 02/10/2011 - 09:00 | 948878 Tense INDIAN
Tense INDIAN's picture

yup the iv th wave

Thu, 02/10/2011 - 08:37 | 948842 Josephine29
Josephine29's picture

Well done Tyler on predicting another debacle in Europe. They never seem to learn do they. Mind you others were predicting this too.

Returning to Portugal and her situation, I have felt for some months now that she should call in the International Monetary Fund. As she has a balance of payments problem she could do so without involving the European Union although it is more likely that she would involve it too. Unfortunately my calls for prompt and indeed pre-emptive action have been ignored and it is likely that the situation will decline to such a state that Portugal goes into such an arrangement on her knees.

http://notayesmanseconomics.wordpress.com

Thu, 02/10/2011 - 09:34 | 948930 Rodent Freikorps
Rodent Freikorps's picture

"Returning to Portugal and her situation, I have felt for some months now that she should call in the International Monetary Fund. As she has a balance of payments problem she could do so without involving the European Union although it is more likely that she would involve it too. Unfortunately my calls for prompt and indeed pre-emptive action have been ignored and it is likely that the situation will decline to such a state that Portugal goes into such an arrangement on her knees."

Heh.

Is it just me?

Thu, 02/10/2011 - 09:41 | 948951 Orly
Orly's picture

Yes, I found it extremely annoying myself.  Couldn't decide if the author has strange monetary fantasies, or if someone asked him about his mother.

Thu, 02/10/2011 - 10:00 | 949007 Overflow-admin
Overflow-admin's picture

THAT is pimp talkin' (because of... sort of... inflation I think)

Thu, 02/10/2011 - 08:44 | 948849 The Axe
The Axe's picture

Vulcan mind death grip

Thu, 02/10/2011 - 09:31 | 948925 Rodent Freikorps
Rodent Freikorps's picture

Don't anger obama. He can split atoms...with his MIND!!!

Thu, 02/10/2011 - 09:38 | 948944 Bringin It
Bringin It's picture

Richard Holbrooke's aorta burst while he was talking to Hillary in her office.  Appearently they didn't get along.

Thu, 02/10/2011 - 09:52 | 948988 Cash_is_Trash
Cash_is_Trash's picture

I wouldn't underestimate Obama.

He's taken kleptocracy and fascism to an all-time high!

Now where's that dear old change?

Thu, 02/10/2011 - 08:48 | 948854 andybev01
andybev01's picture

Men who stare at goats, long-distance.

Thu, 02/10/2011 - 08:48 | 948856 The Limerick King
The Limerick King's picture

Perhaps King Abdullah is dead

And now Saudi tears will be shed

When asked what occurred

Barrack was shaken and stirred

And exclaimed: "Was it something I said ???!!!"

 

Thu, 02/10/2011 - 09:06 | 948886 Miss Expectations
Miss Expectations's picture

Good limerick.  Can you do anything with this:

Eyjafjallajökull volcano

Thu, 02/10/2011 - 09:38 | 948938 Rodent Freikorps
Rodent Freikorps's picture

There once was a volcano...unpronounceable.

Who's eruption made Iceland...bounceable.

Thu, 02/10/2011 - 10:00 | 949008 The Limerick King
The Limerick King's picture

In Iceland volcanos are blowing

In Europe it just keeps on snowing

Down Under - a flood

In Eqypt - some blood

Me thinks someone's anger is showing!!!!

Thu, 02/10/2011 - 13:49 | 949948 TDoS
TDoS's picture

Benjamin, is that you?

Thu, 02/10/2011 - 08:55 | 948863 Catullus
Catullus's picture

http://www.telegraph.co.uk/news/worldnews/europe/iceland/8311924/Iceland...

Geologists in Iceland warn Bárdarbunga is showing increasing signs of activity.

Thu, 02/10/2011 - 08:56 | 948867 Dr. Dre
Dr. Dre's picture

Baby black swans are hatching everywhere......

Thu, 02/10/2011 - 09:11 | 948895 Mentalic
Thu, 02/10/2011 - 08:56 | 948864 Dr. Dre
Dr. Dre's picture

Finally Obama grows a set of balls.

Thu, 02/10/2011 - 09:07 | 948888 Drag Racer
Drag Racer's picture

no, they still have not dropped. He got bitched out is what it sounds like.

http://www.businessinsider.com/king-abdullah-supporting-mubarak-2011-2

Reuters calls the rumour untrue.

http://af.reuters.com/article/energyOilNews/idAFLDE71919V20110210

Thu, 02/10/2011 - 09:40 | 948948 Calmyourself
Calmyourself's picture

If only the first dietician-ogre will let them out of her box he is all set..

Thu, 02/10/2011 - 08:59 | 948873 youngman
youngman's picture

Maybe Portugal will buy our 30 year bonds today with the cash they just made....sounds like good CB policy....just another day of QE around the world....and what is China doing....buying all the commodities it can find and control...and stealing the software to develop it and use it...

Thu, 02/10/2011 - 09:33 | 948931 jus_lite_reading
jus_lite_reading's picture

I love it! The PIIGS can buy our bonds, then we buy their bonds. Everyone is happy. A win win situation!

Hey youngman, if I write you an IOU and tell you that mutually assured destruction is imminent if you don't buy it, will you buy it?

Just waiting for the EU to start crumbling... any minute now.

Thu, 02/10/2011 - 08:59 | 948874 Robslob
Robslob's picture

Obama talk has been killing me for years...I consider the King lucky!

Thu, 02/10/2011 - 09:55 | 948997 Cash_is_Trash
Cash_is_Trash's picture

Fedspeak is also pretty damn unbearable.

Thu, 02/10/2011 - 09:03 | 948882 gookempucky
gookempucky's picture

If this is true, which is possible (blood clots and all) definitely means that pieces on the board will be repositioned = another swan ?

http://www.tradearabia.com/news/LAW_193353.html

 

Thu, 02/10/2011 - 09:04 | 948883 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You couldn't make the s**t up happening in the world these days.

What a crazy world... unfortunately, it's not the good kind of crazy.

Thu, 02/10/2011 - 09:37 | 948937 jus_lite_reading
jus_lite_reading's picture

What is more crazy is the official report that he his still alive- I suppose they are using the same method the Fed is using to make the markets "look alive" since they died 3 years ago. "Hey look mommy! Daddy's eye lids are twitching." [as the electric pulse shocks his body] He's ALIVE! HE'S ALIIIVE!!!! King FrankenBernankAbdullah

 

Now that is shit you can't make up!

Thu, 02/10/2011 - 12:56 | 949698 SheepDog-One
SheepDog-One's picture

Weekend at Abdullah's!

Thu, 02/10/2011 - 21:31 | 951733 StychoKiller
StychoKiller's picture

"I'm not dead!"

"You're not fooling anyone, you know."

"I'm getting better!"

Thu, 02/10/2011 - 09:08 | 948890 monkeyfaction
monkeyfaction's picture

Apparantly he is alive again. Time to buy the zombie king dip.

Thu, 02/10/2011 - 09:09 | 948893 overmedicatedun...
overmedicatedundersexed's picture

Saudi King found out how a stupid president can destabilize the kingdom..perhaps Obuma is not from the king's fraction of Islam..Sunni vs shite.

Things must be closer to failure than even ZHers see. Obuma is the 12 th Imman the Iranians are waiting for..

 

Thu, 02/10/2011 - 09:18 | 948906 jus_lite_reading
jus_lite_reading's picture

It is so lovely to know that China still believes the ECB is "solvent..."

Too bad for them, because the joke is on them! China, you should have listened to us.

 

Thu, 02/10/2011 - 09:47 | 948972 savagegoose
savagegoose's picture

but who said let em decide their own destiny and who said i wanna keep the dictator in charge?

Thu, 02/10/2011 - 10:09 | 949032 dick cheneys ghost
dick cheneys ghost's picture

the saudi's are crying to washington that they are "next"

 

http://nakedempire.wordpress.com/

Thu, 02/10/2011 - 10:12 | 949037 Bahamas
Bahamas's picture

King Abdullah might just be added to the list of the alleged deaths like Elvis, Adolph, etc etc

Thu, 02/10/2011 - 10:19 | 949059 Coast Watcher
Coast Watcher's picture

So why is the king of Saudi Arabia "recovering" in Morocco? They don't have doctors in SA? Anyone know?

Thu, 02/10/2011 - 10:27 | 949090 nevadan
nevadan's picture

Obama and the King got into a  heated debate about their opinions of what Hosni Mubarak should do.

Yeah right.  Obama got into a heated debate with a man he was bowing to not long ago.  Give me a break.

Thu, 02/10/2011 - 11:14 | 949223 americanspirit
americanspirit's picture

Obama called the King a sand monkey and the King called Obama a house nigger, then the King told Obama he was gonna go ahead and order those two nukes from Pakistan, and Obama told him if he did that he was gonna order ALL the corn turned into ethanol, and then things got nasty and the King blew an aneurysm. At least that's the way I heard it from Rush. I think.

Thu, 02/10/2011 - 23:27 | 951993 Sokhmate
Sokhmate's picture
The reports of my death are greatly exaggerated
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