All Carry Unwinding Fast - General Collateral Hits Unprecedented 1 Basis Point

Tyler Durden's picture

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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Cdad's picture

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.

SheepDog-One's picture

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

Cdad's picture

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.


Stormdancer's picture

Hey!  There's a brown-eye, winkin' at ya!

slewie the pi-rat's picture

well, then, i'll just take a sec to declare my ongoing peak lust for blythe.  hiya  hotlips!

SheepDog-One's picture

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.

Cdad's picture

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.

spartan117's picture

Sell everything and buy what exactly?  US Dollars?  No thanks.  Japanese Yen?  That country is toast.  Euro?  It doesn't even exist. 

SheepDog-One's picture

Zombie currencies and FED artificially pumped fund fillers. Sell everything, and buy yourself a nice rifle and a shitload of ammo.

ZeroAffect's picture

Buy whiskey and vodka....seriously, it stores really well and there's always a market.

SheepDog-One's picture

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.

treemagnet's picture

same here - I think a shot of courage will have some value too, and it'll age well.

SilverRhino's picture

Until you have an earthquake ... ;-)

augie's picture

you seem to be a "prepper" if you haven't seen this yet I suggest taking a look.

ParaZite's picture

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. 

johnQpublic's picture

silver and gold tequila....good enuf tequila means no'll shoot straighter with no hangover

Note to self's picture

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.

A Man without Qualities's picture

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...

DR's picture

"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."


gordengeko's picture

So if equities fall, commodities fall and the dollar falls...  Where does da money go?

Chasecran's picture

Where the woodbine twineth...up the spout.

Boston's picture

Where does da money go?

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. 

slewie the pi-rat's picture

hey geko!  some trains "got the disappearing railroad blues."  arlo/'City of New Orleans'

Rodent Freikorps's picture

Pork bellies are still up.


mach777's picture

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.

Chasecran's picture

Has BTFD finally become STFR?  Probably not.

overmedicatedundersexed's picture

 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).

SheepDog-One's picture

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.

Caviar Emptor's picture

lol. i needed that dose of snark

Shameful's picture

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.

lesterbegood's picture

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.


Abitdodgie's picture

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.

Cdad's picture

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.


SheepDog-One's picture

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!

RobotTrader's picture

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.


SheepDog-One's picture

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.

flaxpin's picture

re: "Because in times of trouble, everyone flees hard assets and pile into paper."<p>Seriously?



Cdad's picture

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. 

Internet Tough Guy's picture

Reasonable people junk him and move on. Dumb people pile their savings into tutu-make stocks'  when the bad times come'.

Cdad's picture

...or companies that focus on overpriced gay fasions.

lieutenantjohnchard's picture

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.

trav7777's picture

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

slewie the pi-rat's picture

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!

Muir's picture


"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?


countryboy42's picture

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.

takinthehighway's picture

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!