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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Fanatic's picture

Obama killed the Saudi King? Riiiight...

eftian's picture

Yeah, over the phone, Darth Vader style..

Orly's picture

I find your lack of faith...

disturbing.

Moonrajah's picture

Obama: Now I am the Master!

Abdullah: Only a master of Evil, Obama!

[lightphone clash]

uhb's picture

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

Implicit simplicit's picture

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

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....

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.

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.

Twindrives's picture

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

French Frog's picture

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

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

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?

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.

Overflow-admin's picture

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

The Axe's picture

Vulcan mind death grip

Rodent Freikorps's picture

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

Bringin It's picture

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

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?

andybev01's picture

Men who stare at goats, long-distance.

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 ???!!!"

 

Miss Expectations's picture

Good limerick.  Can you do anything with this:

Eyjafjallajökull volcano

Rodent Freikorps's picture

There once was a volcano...unpronounceable.

Who's eruption made Iceland...bounceable.

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!!!!

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.

Dr. Dre's picture

Finally Obama grows a set of balls.

Calmyourself's picture

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

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...

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.

Robslob's picture

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

Cash_is_Trash's picture

Fedspeak is also pretty damn unbearable.

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

 

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.

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!

StychoKiller's picture

"I'm not dead!"

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

"I'm getting better!"

monkeyfaction's picture

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

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..

 

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.

 

savagegoose's picture

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

dick cheneys ghost's picture

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

 

http://nakedempire.wordpress.com/

Bahamas's picture

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

Coast Watcher's picture

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