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All Carry Unwinding Fast - General Collateral Hits Unprecedented 1 Basis Point
While the sell off in stocks and commodities following Goldman's latest two-ply hit job had left the FX carry alone, it appears that even the funding desks have given up and are now dumping the core carry pairs, sending the JPY once again back to the intervention border. As the chart shows all FX carry pairs just got trampled, which in the perverse vicious loop that the market has become courtesy of peak leverage, means further weakness across all assets is likely imminent.
As for that other source of funding that we have been talking about for a week now: the GC-Repo rate, forget about it. General Collateral just hit an unprecedented 1 basis point!
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Jeez....I guess the end is nigh?
'Sell in may and go away.'
They are just leading it by getting out first.
GTFO instead of BTFD?
Black or red, hit or stand, raise or fold type options are best reserved for Vegas... and make that an apple martini.
good one! GTFO yes!!
OMG! Panic!
Wait...WTF is General Collateral?
This? http://www.investopedia.com/terms/g/gcf.asp
Would someone be so kind as to translate WTF that going to 1 is supposed to mean?
I'm trying to figure this out myself. Bloomberg has a little blurb describing the chart: http://www.bloomberg.com/apps/quote?ticker=RPGT01D:IND. recent edit: this appears not to be the same graph shown on zerohedge, but i can't find a chart for symbol shown on zerohedge.
But I would think that if people are closing their carry trades, that we would have more demand for money via the GC repo, but we are not seeing this. Perhpas the low rate on GC is to indicate a move into risk aversion, which would correspond to an increase in the price of yen, which is also something we are seeing.
Richard Russell is saying BTFD WRT gold.
http://goldandsilverlinings.com/?p=590
Buy tech, cloud lending/trading will be the next big thing.
hard to beat the 0%discount window into prosperity trade.
And ZERO RESERVE bankstering:
"Given the very high level of reserve balances currently in the banking system, the Federal Reserve has ample time to consider the best long-run framework for policy implementation. The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system" -- Federal Reserve February 10, 2010
www.federalreserve.gov/newsevents/testimony/bernanke20100210a.htm#fn9
You get a lot of undeserved junks, but this comment has earned one...
Is there that many people trading or is it algorithms? People that have listened to, and believe in, your list of people are not trading...
Oh just shut up you bufoon. 'Outlandish PM price targets' oh yea but some leotard company with a 100 P/E priced to pure fantasy is all good to you though. If brains were dynamite you couldnt blow your nose Robo.
Most 16 year-olds don't know who Peter Schiff is. Props to you (or your business teacher) for knowing who he is.
Fucktard.
What the fuck do you know?
Or maybe you're just taking a bath right now and trying to make yourself feel better for being so wrong for so long..
WOW. ignorant post.
You actually think fundamentals matter, and little people have anything to do with market moves?
I hear the tooth fairy is comin back... once I hit that 100,000 slot jackpot.
Boring.
DIE SILVER, DIE!!!
PUKE NOW, BITCHEZ!!!
SLV $25 PUTS!!! PAY ME MY F$$$IN MONEY!!!
Massive SLV volume and they can't even break the daily uptrend. Good luck with your hopes of a collpase. I see a major short covering rally coming in the near future and no overhead supply.
Don't need luck. I am the only guy short. Every lemming in the world piled into commodities last 3 months when they should have been buying in July 2010. Silver goes way lower. It is time for a culling!
My A/C repair man was raging about how way out leveraged long he is and that was just yesterday...
Better still, the guy on the highway here, right across from the beach with a hammered 1975 F-10 pickup, who's been selling watermelons there for years now has a hand written sign "I buy silver coins"...and no melons.
Silver is simply not a value at $40. At $14 yes, at $40 no way. This run-up has been fueled by hedgie games and the greater fool theory. It will end in tears. Junk me all you want. But do yourself a favor instead, and conduct some due diligence.
I couldnt junk you all I wanted, it will only let me do one.
Junk all you want. As long as my account keeps growing, I could care less.
Disclosure: Long SLV $25 puts
Your undertaker called. He wants to go ahead and get your measurements.
Good luck to you. Haha. I ended my silver paper trades at 38. I am only on physical now. AGQ is one scary ride. I'd reload on it if silver hit 30ish again though. But honestly, I don't think this current raid is going to pan out.
I will buy the dip. Nothing is going to make the 14 trillion dollar national debt go away.
AND YOU WILL BE TAUGHT A LESSON IN IGNORANCE AND GULLIBILITY.
You mean a lesson in Fascism.
It's possible. These banksters own finance, the actual means of exchange, the majority of energy and good related companies as well as many other economic interest. The Chinese and Russians know that this is the real power that has shaped Western civilization and that it's most powerful bankster Mafiosi reside in Europe which is why they court the euro.
All of which leaves you and your fiat dollar out in the cold. Soros (Quantum Fund NV is Rothschild bankster connected) is coming to scalp the dollar with his SDR because it's in their best economic interests to stick with vibrant Asia rather than an imperial has been with way too many useless eaters!!
HEGEMONY...know it...be on the right side of it.
I had a look at your old posts you were also saying sell silver and buy BAT in nov last year.
Stopped clock?
I'm up four fold since March 09'. Had 200%+ returns on multiple silver miners. But I'm shorting that story right now...and winning!
Sounds a lot more like you are "WINNING!" rather than winning.
You claim to have gone short--when EXACTLY did you start? What has changed fundamentally to make you switch. Why are you blathering about it so loudly?
I don't think you EVER owned silver. I think you're just another bullshit troll and/or sockpuppet.
Aside from a minor retracement it has been a moonshot since $30. Every loser in the world is pounding the silver drum.
I have been around the silver market long enough to see how violent sell offs can be. This thing is going lower. The whales have been positioning themselves all day today. Should get the $37 handle by Friday at the latest.
I am a buyer of silver at $17.50/oz.
Thunder Dome stop shouting please
Normally I'd junk this but I want this stupidity preserved for posterity's sake.
I'd better copy it for you, because it'll be gone soon... by RobotTrader on Tue, 04/12/2011 - 11:08#1161609
Panic selling is resulting from too many "gloom and doomers" listening to:
- King World News
- Jim Puplava
- Chris Martenson
- Peter Schiff
- General Jim
Pumping up the dollar crash and "Peak Oil" stories, and placing outlandish price targets on gold.
Hahaha! great call!!! lol!!!
lmao. panic selling, what a fucking Joke, (capital J) just because it takes the slightest bit of frothy off the top (ie stops going straight up for a day or two) does not make it a panic.
even with this utter panic Silver's still higher than it was a week ago, and the halflife of the EE bear raids grows ever smaller.
i'd like it a bit lower still if possible as I just got some more money in and am piling in shortly. that's "shortly", not "short" let m know how you get on with those shorts.
i reckon you'll be eating them all too soon.
So far they are holding key levels $40 and $1440-50. These levels are just a few days old. That's the problem with leverage, options, ETFs, etc., people blow these tiny moves way out of proportion. Buy, hold, and be patient. Step back, look at a 1 year chart, you can relax now people OK? I mean come on, look at this chart:
http://www.kitco.com/charts/popup/ag0365nyb.html
Maybe the panic selling is from too many wanna be traders living in their mom's basement, trolling forums instead of BTFDing.
Looks like those Bretton Woods fucks decided to take some profits.
Yep. You could see it this morning with all the totally false pricing going on...false indications everywhere. And here comes the totally pissed off, depraved, about to go postal studman US dollar. OMG...is he pissed off!
Here comes the nail in the coffin. Long VXX...short Euro dollars.
I hear Robo is buying Netflix and Whole Foods...so you KNOW it's bad out there.
And more LuLuLemon is added to the imaginary portfolio as well.
Damn CMG up another 2% today. On an unrelated note, man their burritos sure are bland.
On CMG...that was a criminal syndicate Wall Street banker fuckwad...marked it up and dumped it at 10:30. You know, some SEC agent that wasn't into porn [if there is such a person] could really cut his teeth and make his name by simply pulling the tape on CMG...on almost any day...and then "visiting" certain hockey helmet wearing members of the community...if you know what I mean ;)
Yep...lulu...and boy are folk gonna be upset with the hockey helmet wearing Steve Grasso on the floor of the NYSE...running all the sheeple into Abercrombie and Fitch on some story about "great international growth." [you know, because company insiders said so].
A lot of folk are going to need puke buckets today.
Surely those $200 assless jeans and gay vneck Abercrombie sweaters are flying off the shelves at breakneck speed!
LOL! Fuckin' a dog. Gay fashions trump fission, baby. I think that international growth Steve Grasso was talking about was in Japan. Freakin' Abercrombie...that one is/was a criminal syndicate Wall Street analyst/banker/Marxist/fuckwad project, to be sure.
Baaaaaaa. Attention sheeple: Save America, buy ANF shares and gay Vneck sweaters.
Bernank and Timmay wear those assless Abercrombie jeans on their Fire Island weekend retreats, I hear. They get all the special attention on the island I bet, center of attention.
I love writting this kind of stuff here because you know those clowns have to drop in to see what we're saying. :D
I think you are right, Dog. I think some of those folk get a little embarrassed even...when you have 'em dead to rights. ANF...right.
But I got to say, Dog, that I'm feelin' a little green with the Timmay in assless jean image. I think I need a puke bucket too, man.
Hey! There's a brown-eye, winkin' at ya!
well, then, i'll just take a sec to declare my ongoing peak lust for blythe. hiya hotlips!
Well Cdad, I certainly hope as it looks the criminal syndicate know as Wall St central planners is about out of juice. Lets light this crap candle.
LOL Dog!
I think how you said it that day was exactly, "Flash crashes everywhere bitchez! Let's light this crap candle!"
My favorite Dog quote of all time, man.
Sell everything and buy what exactly? US Dollars? No thanks. Japanese Yen? That country is toast. Euro? It doesn't even exist.
Zombie currencies and FED artificially pumped fund fillers. Sell everything, and buy yourself a nice rifle and a shitload of ammo.
Buy whiskey and vodka....seriously, it stores really well and there's always a market.
Ive got 20 cases of Wild Turkey 101 in the pint size stored away. Awesome currency, beats the hell out of PM's in my opinion.
same here - I think a shot of courage will have some value too, and it'll age well.
Until you have an earthquake ... ;-)
you seem to be a "prepper" if you haven't seen this yet I suggest taking a look.
http://www.youtube.com/watch?v=8fsKUyObUIs
I would suggest Ammo, Guns, Food, Water, Booze, and maybe some silver and gold. I would put my priorities towards Food and Water first, then Ammo and Guns if you don't already have some... and then booze, cause this is gonna lead to one hell of a debt hangover, so you might as well get piss drunk so you have an excuse for a hangover. Silver and gold, but only if you like shiny things that will retain some value, regardless of the way the shitheads in Washington decide to fuck us all over.
Just my take... long on guns and ammo... and booze.
silver and gold tequila....good enuf tequila means no hangover....you'll shoot straighter with no hangover
I have a press and 5 acres full of apple trees. Its called applejack, folks. I cannot say it does not give you a hangover though.
It's a credit based system, so when you sell, you repay the borrowing and the money goes "poof". The idea that there is money at the sidelines, or it's got to go somewhere fundamentally misses how the system works.
Bernanke has been fighting the forces of deflation by creating a credit fueled equity bubble, but this credit can vanish in the blink of an eye and that's when people will realize there was never a real recovery, merely a massive Fed backed carry trade that was always going to hit the wall that is the real economy...
http://www.survivalblog.com/newbies.html
What about $AUD?
"Do you mean to tell me, Katie Scarlett O'Hara, that Tara, that land doesn't mean anything to you? Why, land is the only thing in the world worth workin' for, worth fightin' for, worth dyin' for, because it's the only thing that lasts."
So if equities fall, commodities fall and the dollar falls... Where does da money go?
Ammo stockpiles.
Where the woodbine twineth...up the spout.
carbon credits?
So simple: Treasuries.
Just look at what's going on today. And when the shit really hits the fan (ie. as the QE2 wind down sinks in), look for the 10 year to go sub-3.00% again.
hey geko! some trains "got the disappearing railroad blues." arlo/'City of New Orleans'
Pork bellies are still up.
hehehe
http://paperempire.net/wp-content/uploads/2010/11/exters-pyramid.png
It attempts to move down this structure. If it can't, it is removed from the equation. Counterparty risk.
Money is until it isn't.
Has BTFD finally become STFR? Probably not.
don't worry Erin "pirates delight "burnett has the answer it is just not a problem:Near the end of the segment, Burnett remarked that the United States is "...a very wealthy country. If you look at our assets, we could pay down the debt tomorrow. We choose to borrow because we can borrow at incredibly low interest rates." By "assets," Burnett seemed to be referring to the income of all Americans (unless she plans to auction off the Statue of Liberty to pay our bills).
Just really a dumb party girl ditz who gets showered with limos, glitz and glam, completely out of touch chick in completely over her head. But she carries the masters piss bucket well. Even worse is Becky Quick, and Im not even going to stoop down to discuss sewer denizen Maria Bartiromo. Really all just whores.
lol. i needed that dose of snark
Well the Federal Gov does own a vast swathe of land, look at the Western states. Not saying it would solve the problems but a liquidation of that land and resource rights would generate a nice sum of cash. Granted I'm sure people would lose their minds at China buying US land. Now the Federal Gov would likely never do that, since it would result in a lessening of their power, and in direct contrast to the relentless centralization of power.
Of course this would not pay off the debt, especially on a accrual basis, but it might extend the legs of the ponzi, much like seizing retirement accounts would by the ponzi some time.
The US Federal Corp actually owns nothing, as it is a wholly owned subsiduary of the Federal Reserve/IMF. All the land, public and private, as well as every man, woman and child, as well as their property was pledged as collateral to the national debt long ago.
http://barefootsworld.net
No land has ever been sold in America it is still owned by all the people of the United States of America, now if the Republic was to fall then it cound be sold.
Oooops. Intraday USD/Euro cross screaming and plunging has commenced. Like anyone really believed that it was the new reserve currency...a fiat built upon the sandcastle so Greek growth.
Short 'em.
It looks to me like theyre ready to go to panic mode and bring about their SDR currency or whatever the Manical Monetizers envision. Really a bunch of sick bastards. Well fellas, bring it on!
Today is evidence that all the permagloomer gold hoarders who are cheering for a stock market and economic collapse are unknowingly cheerleading their own demise.
Because in times of trouble, everyone flees hard assets and pile into paper.
Not me, piling into war mode guns, bullets, beans, Jack Daniels....this time the greatest depression has fangs dripping venom. Lets see how your paper does for you when youre huddled under your pile of coats in the closet and the rioting mobs are kicking in the door to your 400 sq foot apartment.
re: "Because in times of trouble, everyone flees hard assets and pile into paper."<p>Seriously?
They will sell everything today, Robo. You know it and I know it. But go ahead and try to run more sheeple into Netflix....if that is your bag, man. Robo the momo bagman.
They will sell it ALL today....minus VIX and US dollars which were already sold into oblivion. The hockey helmet wearing herd has turned.
Reasonable people junk him and move on. Dumb people pile their savings into tutu-make stocks' when the bad times come'.
...or companies that focus on overpriced gay fasions.
more despondency from the world's worst trader who not only loses money in gold and silver during the biggest bull market in history, but also loses in his widows and orphans portfolio.
well at least his dates understand seeing the poor man hopelessly enclosed in a dark, dusty six hundred square feet apartment, his world collapsing on him, and with dwindling resources, so they pay for his entree of green sprouts.
yeah, people throughout history have hoarded paper in times of distress...LOL.
WTF do you think they're going to do with that paper; it has but ONE use. Ok, maybe a few more but those involve ass wiping or wallpapering
that's ok, robo! to paraphrase a pretty good line from a nam flick: everybody's godda get a haircut, sometime!"
dollar not diving? what will ORI dooooo? shit! fine w. slewie!
@robo
"Because in times of trouble, everyone flees hard assets and pile into paper."
You mean silver will not leave one in the nobility class as someone here said.
And, NO, I'm not exaggerating, someone actually believed this enough to say it outloud.
-
PMs may, repeat may preserve your wealth people, if, IF the government doesn't confiscate it, and, AND there is hyperinflation, not a deflation.
Gold, silver are a fine hedge, but a road to the nobility class?
-
Because in times of trouble, everyone flees hard assets and pile into paper.
Not me, I just bought 8# of RamShot Magnum powder and another 1000 CCI #250 primers.
Say what?
Mind you, I am probably the most financially ignorant person on here - I'm here via Survivalblog (thank you, Jim Rawles) mainly to try and get some warning on when this whole mess finally collapses - but even I am not that ignorant. The only paper I'm into is toilet paper, and that's mainly for the wife.
Higgins, please!
The market operators ie banksters are driving the USD index down and pumping up everything else. This process will continue till there are no long positions left in the USD index and no short positions in any of the commodities, stock or currencies other than the USD.
The operators are then likely to take the long position on the dollar and short position on everything else. They would then use their money power to move the markets in the direction which would get them the maximum profit while screwing all other traders / hedge funds / investors.
The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls
OR
When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.
http://www.marketoracle.co.uk/Article24581.html
Spam.
i got the dollar @ 74.997. what's this tweaker on?
Bin meet Go. Go, Bin.
Silver is below $40 :(
http://www.youtube.com/watch?v=uJSgZYUnQn0
It's ok. It happened at $25, $30, $35, and now $40.
s'ok, baby_Blythe! the sun is in the heavens! some nice unwinds and a some random walks, too. the FED looks to raise rates 1/4%, who the fuk knows what will low fruit will fall? PPT trying to rein in a gazillion algo's! orderly markets eveywhere! corn/gold ratio plummets! call yer best boy friend and tell him whatcha need, here, kiddo!
The elites want a predictable return - no QE3 or a rate hike or whatever...they'll get the memo and then swooosh. Ride her down and back up. Besides, that way the Fed will be begged to resume whatever the hell it was they were doing before all "this" happened, order linen and ink, hit reset, resume.
Bank reserves to be neutralized by higher general collateral rate. This is de facto Fed exit strategy from QE2 without all of the disruption to equity markets...they hope.
Exit strategy is just raise rates? That will be the biggest face-plant of all time.
The phrase "clothes-lined" springs readily to mind...
Is this Aug 2007 redux? Mega arbs abound eg SLW vs SLV but it kooks like every stat arb fund just went BK
REITS are actually UP today...
Classic...really, beyond ridiculous.
I think that REIT trend is also starting to fall apart, boiler. That is one very long in the tooth contrary trade that has long since stopped making sense...all things real estate considered.
Pick yer most hated and sell it on an up day, brother...or just flip SRS on a day trade.
It's funny - when I what to illustrate to people how screwed up the market is, I just point them in the direction of REITS. There is no better indicator of how detached from reality the markets are...
My guess as to what's driving it is the banks have sold this stuff to local govt pension funds etc, and there's been background deals to protect their positions as nobody wants the bad publicity that would come if the truth came out..
Did anyone see this yet?
Rolling Stone magazine writer Matt Taibbi unveils unfair investment practices by wives business bigs
Read more: http://www.nydailynews.com/gossip/2011/04/12/2011-04-12_rolling_stone_magazine_writer_matt_taibbi_unveils_unfair_investment_practices_by.html#ixzz1JKP39DQe
@MakeMineADouble
Thx. Suns up 21st century Amerika very well. Send to TD's tips box. Tiabbi's memoirs should be a great read two decades from now.
Truth is, nobody will see the bullet coming. The MSM will blame it on a symptom of Ben's master plan.
Its fun to Google things like 'DOW crashes 777 points' all the stories from that day express their total shock and how all experts and analysts were caught completely by surprise! In other words, they never give warning of the crash at all.
I still remember Cramer's face when his beloved financials were getting shithammered. The tough talker finally advised people to just sell - he was all emotional, practically ready to cry - he looked like a broken shill man.
I felt like I was missing out on the laughs and had to turn on CNBC - I almost forgot how comical it is.
OMG a ONE percent selloff!!!! RUN FOR THE HILLS.
Silver is down to FORTY dollars, gold at 1450, WTI 106...Apocalypse Unfolding. Yen is up .84% against dollar...OMFG.
What has been a one-way trade is taking a retrace; chill the fuck out
+ 1 unjunk
I think you guys miss Robo's sense oh humor.
I mean he just points out the ridiculousness of it all.
not slewie! i'll say it again, muir: if you and robo's avatars ever get a room together, slewie's in!
He's not trying to be funny. Most likely he's a paid shill, there are several others here as well. Tentacles of our master the vampire squid.
Not even close. As Muir said, he's ridiculing the shills and their sheeple.
Or is there anyone here who really thinks he recommends LULU?
ROFL
The dollar and commodities selling. And bond prices advancing.
So if you have to sell your forex based in whatevs, there's two places to go, the Swiss Franc and the Yen. I wonder whether holders of Swiss Francs and Yen are thinking about bullion.
bullshit! stewie "graceland" thomson sez, this very morn: worried about anything? cash out----in gold! Apr 12, 2011 Silver Profits: Silver Profits: USD Fry Pan vs The Golden Jumping Bean! Stewart Thomson 321gold ...inc ...s
i think, ok? you get that too from him, here? how the hell could any mere mortal really understand this guy? jeeeez!
Just look at everything written about the subject of the market following a script as entertainment.
A carry trade unwind is due to the fall in the U.S. discount rate(IRX) below Japan's and Switzerland's 3-month treasury bill rate.
Gold prices should be the beneficiary of the same due to bullion lease rates narrowing with the discount rate.
you look at things however you wish, friend. i certainly don't need yer advice as to how to look at things. you seem to have a compulsion to "explain" everything in terms or what is really quite limited propagananda. why not just pull the comcast cable or dish wire outa yer ass for, like, forever, and stop pretending either you or the "markets" are entertaining?
there are no more markets, only interventions. tyler sez it, now, in one way or another, while introducing nearly every piece, here, on zH.
please be advised, ok, friend?
Using a narcissistic grandstanding effect must curry favour with the people around you. Of course, a sock puppet would resort to that kind of thing.
The recent run up in oil, food and gold is just 'transitory' inflation so this pull back is inevitable, dont know what all the fuss is about - The Fed has the USA's back, nothing to worry about.
The Bernanke needed a demonstration of the "transitory" nature of current inflation and the strength of the UST Bond market. As Erin said, the US is a rich country . . . so raise the debt limit, will ya!!!
Dollars to donuts says the DOW end up positive for today. Low volume. No positive news. But the DOW will be up again. WTF?
Ummmm....don't think so. You are just seeing the afternoon magic fuzzy lifting trade brought on by the those whacky criminal institutional equity holders @ 1:31 on the Roach Motel [SPY]. However, they have been doing this crooked kind of trade for so long now that I think even the manipulation trades are worn out.
But...go long LULU if you must. Robo will champion you.