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EURUSD Takes Out Lows After S&P Revises Outlook On Belgian Community Of Flanders To Negative, Takes Stocks With It

Tyler Durden's picture




 

Just because the earlier posturing on Spain by Moody's did little to kill the euro, here comes S&P, hell bent on succeeding where the other corrupt rating agency failed. Let's see if S&P has any more credibility: the agency has just revised its outlook on the Belgian community of Flanders to negative, mirroring the recent action on the "HoldCo" of Belgium, and making it all too clear that Europe will be pushed to the brink to give on the demands by Luxembourg for a united bond issuance entity before any hopes of a moderation on eurobond spreads can be even considered. And sure enough, the EURUSD pulls its now traditional 100+ bps move in a few hours. For all who wonder where stock volatility has shifted to, we suggest you keep a close eye on the chart below. After all, none other than John Paulson said that FX is the trading product of the future. And, as expected, the respective strengthening in the USD is now causing stock futures to trade down to their day's low.

EURUSD:

From S&P:

Overview

  • We revised our outlook on Belgium to negative on Dec. 14, 2010, reflecting our view of increased risks to the government's creditworthiness due to prolonged domestic political uncertainty.
  • The Community of Flanders is the only Belgium community that we rate at the same level as the sovereign. As a result of the sovereign outlook revision, we are also revising the outlook on Flanders to negative from stable.
  • We may downgrade Belgium, and hence Flanders, if the central government is not able to stabilize debt and move forward on reforms to improve political cohesion.

Rating Action

On Dec. 15, 2010, Standard & Poor's Ratings Services revised its outlook on the Belgian Community of Flanders to negative from stable. The action mirrors our outlook revision on the Kingdom of Belgium (AA+/Negative/A-1+).

At the same time, we affirmed our 'AA+/A-1+' long- and short-term issuer credit ratings on Flanders.

Rationale

The ratings on Flanders are still supported by strong management commitment and ability to keep budgets under control and bring them back on balance according to European System of Accounts (ESA) standards by 2011, following imbalances in 2009 and 2010. They also reflect the community's contained, though rising, tax-supported debt, good access to liquidity, and expenditure flexibility.

Also factored into the ratings is our view of the sensitivity of Flanders' revenue base to economic cycles, which is translating into a deteriorated consolidated budgetary performance in the current economic slowdown. In addition, bail-out operations in favor of local financial institutions have
led Flanders to deplete its cash surpluses and to incur a significant amount of debt.

Although Flanders posted a weakened budgetary performance in 2009, owing to both decreasing revenues and bail-out operations, we believe that Flanders' effective budget monitoring and strict cost control have contained the deterioration and we expect this to continue. That said, in our base-case scenario, we continue to estimate that Flanders will post limited and temporary deficits after capital expenditures (including capital injections, which are not taken into account in ESA standards) averaging 3%-4% of total revenues over 2010-2011 on a consolidated basis. (For more details of our base-case scenario, see our full analysis on Flanders published June 29, 2010.)

Flanders uses public and private companies to carry out public-service missions and investments, guaranteeing a number of them and transferring
budgetary funds. Because of this, we analyze debt evolution on a consolidated basis. As we expected, tax-supported debt increased to about 60% of total revenues at year-end 2009 from 29% one year earlier, primarily because of Flanders' debt-financed bail-out of KBC Bank N.V. (A/Stable/A-1) and its new guarantee issuances in social housing and health care. In the next two years, in our base-case scenario, we think tax-supported debt could increase, but we expect it to remain at a moderate level compared with national and international peers.

Flanders accounts for 58% of Belgium's GDP, which exceeds the EU-15 average by 6% per capita in purchasing power parity terms. The community's economy is characterized by high labor productivity and large exports, which has somewhat exposed Flanders, like all Western European regions, to the current economic downturn. GDP fell 3% in 2009 and we expect a slow recovery at 1.9% in 2010, in line with the rest of Belgium.

Liquidity

We view Flanders' liquidity position as strong, with comfortable access to short-term credit in comparison with Flanders' modest debt service. In 2010, the community has two committed credit lines, worth €2.0 billion in total, as well as a €1.5 billion commercial paper program.

Outlook

The negative outlook mirrors that on Belgium, which reflects the likelihood that a lack of consensus on key policy may result in the government not being able to stabilize its debt trajectory and to move forward on reforms designed to improve political cohesion.

If we were to downgrade Belgium, we would also take the same action on Flanders owing to the current framework for intergovernmental relationships between the central government and local and regional governments and the ensuing limits on their financial autonomy.

On the other hand, if we believe that the government's debt trajectory has stabilized or will improve and if some progress is made on other areas
important for strengthening the social contract, we could affirm the ratings on Belgium and Flanders.

 

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Wed, 12/15/2010 - 13:51 | 808534 TruthInSunshine
TruthInSunshine's picture

Oh no!

Ireland, Portugal, even Spain & Italy, I can see...

 

...not Belgium!!!!!!!!!

S&P is racist!!!

Wed, 12/15/2010 - 14:53 | 808775 dlmaniac
dlmaniac's picture

They need to make PIIGS scream in order for investors to stick with TBonds, racism or not.

Wed, 12/15/2010 - 13:53 | 808545 DoChenRollingBearing
DoChenRollingBearing's picture

Well that was a fast decline in the Euro. 

All of this volatility in fiats reminds those of us who do NOT trade (against the robots) that really the only safe place to be is with a nice holding of precious metals.

I am not saying ¨all in¨.  5% - 10% is reasonable by almost anyone´s standards.

Wed, 12/15/2010 - 14:09 | 808603 bankrupt JPM bu...
bankrupt JPM buy silver's picture

90% silver, 1% gold, 1% potash, 8% cash to buy more PM's

Wed, 12/15/2010 - 15:33 | 808938 merehuman
merehuman's picture

I replied to you before DoChenRollingBearing on a previous thread but was 503d on submittal of comment. In case this gets posted...Get out while you still can. Tantamount to leaving germany (my country once) during Hitlers time. I know i would rather be in Peru than the US or germany. Its all about family. You are furtunate to have such, get safe and be well friend.

Wed, 12/15/2010 - 17:38 | 809528 DoChenRollingBearing
DoChenRollingBearing's picture

merehuman, muchas gracias for your reply!  I am late getting back because I had some ¨work¨ to do today here in Peru.

Peru IS booming, and ever since my farewell pitty-pat (not too bad, but still...) by our pals at TSA, my wife and I have re-opened the idea of moving here.

But, I am not ready to put up with it all down here just yet.  They cut the water off in our sector of Lima for almost the whole day on Monday (no shower...).  And I have family in the USA as well.

One thing I AM GOOD at, my friend, is looking out for No. 1!  Just ask any of my real acquaintances, they´ll tell you I am a selfish bastard (in nicer words).  LOL.

You take care too!

Wed, 12/15/2010 - 13:54 | 808550 Xibalba
Xibalba's picture

laughable.

Wed, 12/15/2010 - 13:55 | 808551 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Oh no, now they're after tin tin.

Wed, 12/15/2010 - 13:55 | 808554 ZeroPower
ZeroPower's picture

Whole week has been a see-saw in the EURUSD since that rally which somehow hit 1.35.

Regardless, after 13180 breaks (thurs? fri?) we'll hopefully be set for June lows...

Wed, 12/15/2010 - 13:57 | 808564 Hondo
Hondo's picture

Common sense tells you the Union can't last....the politians are spouting lies and deception to try and prolong the suffering of the people.  Eventually it WILL collapse and it won't make much difference how much debt is issued by whom (and soon to be defaulted on).  The end game in these things are always very clear from the start...only human nature try to bluff through them and make matters geometrically worse.

Wed, 12/15/2010 - 13:59 | 808569 RobotTrader
RobotTrader's picture

Yep.

Keep in mind "The Formula"

Dow 12,500 = Gold $1,650

Dow 9,000 = Gold $1,000

 

Wed, 12/15/2010 - 14:25 | 808680 Xibalba
Xibalba's picture

Dow 3,000 = Gold $3,000

Wed, 12/15/2010 - 14:37 | 808719 SheepDog-One
SheepDog-One's picture

+3,000

Wed, 12/15/2010 - 15:20 | 808880 ZeroPower
ZeroPower's picture

Ill take the other side of that. Not because i don't think gold is a good investment (i am on ZH after all...) but because the demand for all non-essential commodities will halt should the recession peak its head back up assuming a much lower (and realistic) equity market.

Wed, 12/15/2010 - 16:15 | 809174 IQ 145
IQ 145's picture

 Peek. peek its head back up. and b.) gold is not a non-essential commodity. It isn't any kind of commodity. This isn't that difficult to suss out; you could look it up.

Wed, 12/15/2010 - 16:16 | 809183 IQ 145
IQ 145's picture

 It's not a formula; it's just some arbitrary numbers that someone wrote; why would I want to keep it in mind?

Wed, 12/15/2010 - 16:40 | 809290 Marley
Marley's picture

That's a great movie.

Wed, 12/15/2010 - 14:00 | 808572 TWORIVER
TWORIVER's picture

Maybe wmBanzai7 can incorporate Ned Flanders into this piece somehow. Thanks in advance.

Wed, 12/15/2010 - 14:11 | 808610 mikla
mikla's picture

+1

Belgium just stopped by, and looked like it was having a good day (like every day before).

It liked running uncovered, with the cool air on its hot loins.

In fact, it often ran uncovered.

Unfortunately, mean old S&P is giving it a good talking-to right now.

Wed, 12/15/2010 - 14:16 | 808642 TWORIVER
TWORIVER's picture

Thank you, Mikla. Very nice.

Wed, 12/15/2010 - 14:38 | 808724 SheepDog-One
SheepDog-One's picture

Good stuff!

Wed, 12/15/2010 - 14:05 | 808581 Manipulism
Manipulism's picture

I can not believe what I just saw:

 

Purchase PatriotApp Today!


Mobilizing the Globe 

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(See Photos Here) Simply download, report (including pictures) and submit information to relevant government agencies, employers, or publish incident data to social network tools.

Key Features:

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  • Custom integration with user employers
  • Fully integrated with Social Media (Facebook, Twitter)
  • Multiple menus and data fields
  • View FBI Most Wanted
  • Simple graphical user interface

Uses:

  • Enable citizens to record and communicate:
  • National Security, Suspicious activities, Crime
  • Government Waste
  • Environmental Crime or possible violations
  • White collar crime
  • Workplace harassment, discrimination, or other violations
  • Public Health concerns
(See Photos of PatriotApp)


PatriotApp encourages active citizen participation in the War on Terror and in protecting their families and surrounding communities.

Support:

  • Future updates and features
  • Follow us on Twitter and Facebook

http://patriotapps.com/PatriotApp.html

 

Is this fuck real?

This is 1933 in Germany.

Should be namend iNaziApp.

Wed, 12/15/2010 - 14:08 | 808595 tmosley
tmosley's picture

imaNazi?

Wed, 12/15/2010 - 14:09 | 808602 Rodent Freikorps
Rodent Freikorps's picture

Orwell was an optimist.

Wed, 12/15/2010 - 14:11 | 808613 Manipulism
Manipulism's picture

No, a man with no fantasie.

Total untalented.

Wed, 12/15/2010 - 14:38 | 808727 SheepDog-One
SheepDog-One's picture

Whens that 4th Reich IApp comin out??

Wed, 12/15/2010 - 14:45 | 808748 AnAnonymous
AnAnonymous's picture
Citizen Concepts is a Division of Patriot Applications, LLC
Citizen Concepts is located in Indialantic, FL USA

 

It reads like Heinlein's Starship Troopers.

Wed, 12/15/2010 - 14:50 | 808760 the not so migh...
the not so mighty maximiza's picture

amazing, we have a isnitch

 

Wed, 12/15/2010 - 14:50 | 808762 Id fight Gandhi
Id fight Gandhi's picture

Everyone here should install it and report garbage. People and groups you don't like.its all good.

Wed, 12/15/2010 - 14:58 | 808789 Problem Is
Problem Is's picture

Insta-snitch-Tweet:

"I want to report TSA terrorists at airport."

That one is factual Id fight Gandhi...

Wed, 12/15/2010 - 15:41 | 808982 merehuman
merehuman's picture

i want to report my neighbor put his garbage out early. Suspicious behavior.

What..? No reward?

By the way, i read a report this am re a fella was shot by police for holding a garden hose. A good neighbor(busybody) called it in.

Should i be afraid to get my mail? glad i am in a small town, away from nuts and thieves.

Wed, 12/15/2010 - 16:22 | 809203 IQ 145
IQ 145's picture

 There were people who had a sense of humor in Berlin too; for awhile. And then they weren't there anymore. It's so hard to tell exactly where we are on that slippery slope.

Wed, 12/15/2010 - 14:53 | 808777 greenbear
greenbear's picture

Yeah, and What's His Face is Time magazine's Man of the Year. 

 

There is no such thing as a conspiracy, only coincidence.

Wed, 12/15/2010 - 14:54 | 808783 greenbear
greenbear's picture

Yeah, and What's His Face is Time magazine's Man of the Year. 

 

There is no such thing as a conspiracy, only coincidence.

Wed, 12/15/2010 - 16:19 | 809193 IQ 145
IQ 145's picture

 Oh Gag. I think I have to throw up now.

Wed, 12/15/2010 - 14:03 | 808583 Dick Darlington
Dick Darlington's picture

In these retarded govt sponsored and banking cartel controlled "markets" this must be very positive for Belgium. Just look at spanish govt bonds today. Moody's (who?) revised the outlook on Spain to negative this morning. After initial outright widening of roughly 10 bps throughout the curve, miracle happened! Intraday reversal to the tune of 15-20 bps just like that and closing nicely tighter vs yday. But who cares, both are insolvent and that's the only thing one needs to know. Position yourself accordingly.

Wed, 12/15/2010 - 14:04 | 808584 Sudden Debt
Sudden Debt's picture

I BET ALL THIS ATTENTION WILL DO WONDERS FOR OUR TOURIST INDUSTRY!!!

KEEP IT COMMING TYLER!

Wed, 12/15/2010 - 16:27 | 809227 IQ 145
IQ 145's picture

 I want to go and see the derelict steel mills that are rusting away, and the drunken street prostitutes outside the beer taverns; can this be arranged on a standard tourist junket?

Wed, 12/15/2010 - 17:43 | 809552 DoChenRollingBearing
DoChenRollingBearing's picture

For 200 Euros, sure!

Sudden Debt may have friends in low places...

Wed, 12/15/2010 - 14:04 | 808585 Rodent Freikorps
Rodent Freikorps's picture

"through Flanders, Portugal and Spain..."

http://www.youtube.com/watch?v=H-tpnwfye4w

 

Wed, 12/15/2010 - 14:04 | 808586 dlsamg
dlsamg's picture

Ben will not let the stock market fall.  99% of people don't know what the heck FX or bonds are. They know the DOW and the Nasdaq. So that's all Ben has to keep pumped up. It's about animal spirits and wealth effect. Bought the dip last night and got out at 1238 and I'm buying this dip. Buy every 10 point dip in the S&P eminis. Ben will reward you.

Wed, 12/15/2010 - 14:23 | 808670 plocequ1
plocequ1's picture

This is correct. Watching analysts  and economists analyse the fictitious bond market and FX is way beyond my attention level. This is all you need to know. When the market sees red, The fed presses the Ass button and the market goes up. Everything else is fluff.

Wed, 12/15/2010 - 14:35 | 808714 sheep92
sheep92's picture

This will be true but only in the end game.  We are not there yet.  At that time gold will really go.  Right now we are still in 'normal' mode where the markets are functional.  If monetization were in full swing gold would not be down nor would EM stocks.  There is huge risk in equities right now.

Wed, 12/15/2010 - 14:39 | 808730 SheepDog-One
SheepDog-One's picture

Ben will tank the markets when its time.

Wed, 12/15/2010 - 14:44 | 808743 sheep92
sheep92's picture

While Ben has unlimited ammo, he has sort of hamstrung himself with how it is deployed. The politics of the situation are not going to allow for anything more than he has already signed up for until the next 'crisis' hits. Ben played his cards poorly.  Had he done a 'shelf registration' to buy back a trillion in bonds but not really executed he could have drawn out the bond exodus a lot lot longer.  As it is, he may have accelerated the flight from fixed income.  He needed a good trader next to him to help execute his academic strategy.  This could get very ugly very fast.

Wed, 12/15/2010 - 15:04 | 808817 sschu
sschu's picture

... This could get very ugly very fast ...

I tend to agree.  I thought Bennie was going to try to keep rates low and drive the market higher?  The Bernanke Put as it were ....

My guess is he will need a bigger hammer, not sure how big or the method of wielding such a tool, but I can imagine Bennie has some plans.  The Fed will not surrender to the bond vigilantes and PM market without a fight.

sschu 

 

Wed, 12/15/2010 - 17:46 | 809567 DoChenRollingBearing
DoChenRollingBearing's picture

sschu, I agree.  This seemingly stable market and system we have is actually much more rickety and unstable than it appears.  All we need is ¨an event¨:

-- Israel and/or US attack Iran

-- NKs go at SK

-- China dumps bonds

-- my fat neighbor just dumps

Etc.  Prepare accordingly.

Wed, 12/15/2010 - 14:09 | 808597 TruthInSunshine
TruthInSunshine's picture

There is a run on Waffle House.

Wed, 12/15/2010 - 14:09 | 808605 UncleBen
UncleBen's picture

Flanders was downgraded? Hi-dilly ho, Bankrupt-a-reenos...

Wed, 12/15/2010 - 14:09 | 808606 sheep92
sheep92's picture

One thing that seems pretty clear is that the bond market is going to keep going down until it does some serious damage to the equity market.  Emerging market equities are the first to feel the brunt. 

Collapsing bond markets usually give rise to events....

Wed, 12/15/2010 - 14:32 | 808699 rubearish10
rubearish10's picture

Not nearly a dent. Sentiment has to change but for what reason?

Wed, 12/15/2010 - 14:11 | 808608 john_connor
john_connor's picture

10 and 30 year just got pounded in the last hour.  People are looking for some kind of bounce in long bonds however this could be the beginning of a run on all long dated paper.

Wed, 12/15/2010 - 14:17 | 808640 TruthInSunshine
TruthInSunshine's picture

If you mean a run 'out of all long dated paper,' I'd agree.

The shit is flying, and once the velocity really picks up..and ZH will be among the first anysource to mention that point, there won't be time for bond bulls anymore, including a very unhappy PIMPCO.

The new normal will be an anemic economy, with the vicious back hand of high interest rates.

The Ben Bernank = Catastrophic failure

Wed, 12/15/2010 - 14:11 | 808611 SwingForce
SwingForce's picture

Anybody else see 5 waves down in JPM from $41.99?

Wed, 12/15/2010 - 14:12 | 808612 Turd Ferguson
Turd Ferguson's picture

This is all such sickening BS.

Wed, 12/15/2010 - 15:49 | 809024 merehuman
merehuman's picture

I read you every day Turd. Your calls (last) are off because you fail... fail to think like a crook. Thats the trouble with you turd, you are friggen honest. So thats your blind spot.

Pretend you are Blythe, good luck with that eh? lol Love ya dude

Wed, 12/15/2010 - 14:13 | 808625 johngaltfla
johngaltfla's picture

This is the same S&P that said Countrywide issued a bunch of AAA and AA+ paper, right?

Yup, Belguim is f'd in two years if the pattern holds.

Wed, 12/15/2010 - 14:14 | 808630 Ferg .
Ferg .'s picture

This is why I refuse to go long the Euro . Not just in EUR/USD , but in any of the Euro currency crosses . Too many potentially negative blindsides to stoke serious volatility .

Wed, 12/15/2010 - 14:14 | 808631 Ferg .
Ferg .'s picture

This is why I refuse to go long the Euro . Not just in EUR/USD , but in any of the Euro currency crosses . Too many potentially negative blindsides to stoke serious volatility .

Wed, 12/15/2010 - 14:19 | 808654 Flore
Flore's picture

there is gold in our hills

Wed, 12/15/2010 - 14:22 | 808660 TruthInSunshine
TruthInSunshine's picture

Maybe if Bernanke doubles down, it will all work out?

Huh? Hmmm? Yes?...

 

......Nawwwwwww.

Wed, 12/15/2010 - 14:23 | 808669 THE DORK OF CORK
THE DORK OF CORK's picture

The one advantage of being a Zorbo or Mick during this crisis is that being so close to the coal face has given us adequate time / warning to convert our still valuable coloured paper to something more substantial.

The Germans I am afraid still believe their own bullshit and are more complacent then you would care to believe.

Although it is hard to figure out what goes on in Flanders and Wallonia - the Brussels mentality must have given these guys a false sense of impunity.

The German banks are fucked beyond repair and their Gold is under Manhattan island - their harsh treatment of Ireland is a sign of weakness as a more powerful cabal could afford to be more generous.

We have to ask will the FOFOA thesis be incorrect if BB decides to go all nationalistic and mount a gentleman's war against his brothers in Frankfurt.  

 

Wed, 12/15/2010 - 14:29 | 808695 Flore
Flore's picture

if his brothers in Frankfurt send back those dollar reserves and buy gold instead.. old Ben will wish he never had the job

Wed, 12/15/2010 - 14:42 | 808737 THE DORK OF CORK
THE DORK OF CORK's picture

Possession is nine tenths of the law - this monetory system is so over Flore.

 

Wed, 12/15/2010 - 14:47 | 808752 Flore
Flore's picture

if they use the nuclear option, and start buying gold in the open market.. all is said and done... just like another wrote 13 years ago

Wed, 12/15/2010 - 15:15 | 808837 THE DORK OF CORK
THE DORK OF CORK's picture

They did not have the balls in 79 to do it so why now - I know they created the Euro for this eventuality but i see no evidence that they are going to mount a financial nuclear attack on America.

Europe cannot defend itself militarily - Western Europe is really the Eastern United States.

The question of course is Germany really a part of Western Europe ?

Wed, 12/15/2010 - 20:48 | 810175 Dismal Scientist
Dismal Scientist's picture

Controversial, very good. Its about demand for Germany though, the € was always just a way to reduce relative labour costs and push up margins. Now that the great 'experiment' has been successfully milked, watch for true German/Turkish integration. Thats the gateway, 70 mn consumers and beyond. Since Germany no longer has a soul, its boldly go etc.

Wed, 12/15/2010 - 16:35 | 809264 IQ 145
IQ 145's picture

 I like your take on things; Belgium the little country that couldn't decide whether to speak Flemish or Walloon; so they tortured the French language and told everyone they knew how to run Europe. Belgian waffle--- a pancake full of manufacturing defects.

Wed, 12/15/2010 - 14:25 | 808676 john milton
john milton's picture

assange should leak tylers real name, so that I could put him in Finnish presidential election, and before that, he could easily take care of our finance minister post...just that to get used to our cold climate..

what happened to portugals bond sale..??? anyone

Wed, 12/15/2010 - 14:32 | 808702 THE DORK OF CORK
THE DORK OF CORK's picture

I seem to recall watching Bloomberg earlier - Portugal paying 3% + for 3 month paper - truly staggering.

I can't remember the exact figure however.

Wed, 12/15/2010 - 14:41 | 808736 john milton
john milton's picture

thanx

Wed, 12/15/2010 - 23:37 | 810606 StychoKiller
StychoKiller's picture

Sorry to read about Ireland's descent into debt slavery today! :>(

Wed, 12/15/2010 - 14:30 | 808696 john milton
john milton's picture

lot of pyramids in your chart, those free masons are everywhere..

Wed, 12/15/2010 - 14:34 | 808707 terranstyler
terranstyler's picture

I can't wait to see what will happen if they downgrade Bielefeld and Buxtehude

Wed, 12/15/2010 - 14:35 | 808713 Cdad
Cdad's picture

All anyone with even a scintilla more currency knowledge than me needs to do is turn on the daily chart of the EUR/USD chart and behold.  If you turn on the Icky indicator...and then check where the RSI sits...you will actually hear a bell tolling.

And in this simple way, the end of the Euro seems a forgone conclusion...without even having to talk about pesky and complicated fundamental issues like tax revenue short falls, increasing Euro employment problems, profligate spenders vs. super savers, class envy and class warfare, indentured servitude, Na na na poo poos coming from London, or any such thing.  Just pull up that one daily chart and it is like tea leave paint by numbers.

And so for all the criminal syndicate Wall Street bankers that just built a kick ass Roach Motel [SPY] rally on the back of depreciating our dollars, you can not only hear a bell tolling, but you can also hear someone somewhere saying "Houston....we have a problem."

The more I learn [and granted I am clearly a simple man and open to ZH suggestions] the more I think hockey helmets should be handed out on Wall Street....because those are some seriously stupid folk there if, upon being given trillions of counterfeit dollars, this is the best they could do.

And as if to confirm my simple understanding of things, and despite how early it is in the day, the action at the back door of the Roach Motel [the SPY] sure is picking up.

Wed, 12/15/2010 - 14:43 | 808740 SheepDog-One
SheepDog-One's picture

Thats the way I see it all, if this is the BEST these 'brainiacs' can do with umpteen TRILLIONS free of charge, then those on Wall St should have to wear hockey helmets and those little halters and leashes you see on kids at Walmart!!

Wed, 12/15/2010 - 14:44 | 808744 dlsamg
dlsamg's picture

Do not believe that Ben will allow this market to fall. He will do everything in his power to keep it up including being long every futures contract. The world will crash if he allows it to fall. The game is totally rigged to go up and even though it has no business being as high as it is you don't fight every central banker in the world. There will be dips. Buy them all at least until we drop below the 50 dayMA. If you must short do so only at new highs for a small profit.

Wed, 12/15/2010 - 14:50 | 808758 Cdad
Cdad's picture

I understand why you say these things as the tv says these same things about every five minutes, and so does every criminal syndicate Wall Street banker who struts his stuff across the propaganda airwaves.

However, I should probably point out to you that to compare The Bernank to Atlas...well, it seems careless as surely The Bernank's days of wielding power are now drawing to a close, and even the criminal syndicate Wall Street bankers agree as is evidenced in the treasury market with prices and rates doing the exact opposite of what the Bernank wants them to do.

But what do I know...I don't trade bonds.

Wed, 12/15/2010 - 15:13 | 808838 SheepDog-One
SheepDog-One's picture

disamg it may all seem bulletproof for now, but remember youll only have seconds to save yourself when The Bernank hits the 'contain inflation' switch. Good luck and happy trading against HAL2010.

Wed, 12/15/2010 - 15:20 | 808871 Cdad
Cdad's picture

Hal 2010...lololol.  You kill me, Dog.

"Open the pod bay door, Ben."

Wed, 12/15/2010 - 15:21 | 808881 dlsamg
dlsamg's picture

 

When the tape say down I'll be short as fast as anyone. But for now the tape say up. Don't fight the Fed or the tape. Ben may be a lousy trader but who needs to be good with unlimited liquidity. I think we'll have more than seconds to get out and of course there are always stops.

Wed, 12/15/2010 - 14:46 | 808733 TruthInSunshine
TruthInSunshine's picture

The Bernank:   "Guys, I'm losing it. I can't sleep. I'm constipated like a tube of gorilla glue. My lip was trembling like crazy on that softball 60 Minutes interview. And why does Ron Paul have to get all up in my shit...again???"

Giant Vampire Squid:   "Listen Ben. No one said this was going to be easy. But it's the only way, and you agreed, right? And you of all people knows what happens when people in our situation don't follow through. Now we got A LOT OF shit to unload, and we are not liking the heat anymore than you are, okay? But we need some more time, alright?"

The Bernank:    "I understand that. Do you think I'm a fool? I may be your fool, but I'm a Princeton Economist AND an expert on the Great Depression - so cut me some fucking slack. You don't get the political angle, and you have no idea how angry the middle class is growing. Did you know there's a campaign to End the Fed? Huh? People are fucking blaming me for higher food and gas prices!!! They're buying silver coins & gold in bulk, for Christ's sake!!!!!!! Have you heard of Max Keiser, ZeroHedge or any of these new people and organizations actually scrutinizing what I'm doing?"

Giant Vampire Squid:    "Alright...alright...calm down. Everything is going to be okay. We'll tell you what - we're going to contact some friends at S&P and find another angle to buy some more time...maybe a small, European country, NOT in the PIIGS class. That should hold us over till the New Year...hopefully. We'll do a conference call with our contacts at S&P and bring Brian Sacks and William Dudley in on the call. But you gotta grow a pair if this is gonna' work, capiche?"

The Bernank:    "Really, you'd guys do that for me?!! Wow. Alright. Game On!!!"

 

 

Wed, 12/15/2010 - 17:52 | 809590 DoChenRollingBearing
DoChenRollingBearing's picture

Recording telephone conversations like that is illegal you know...

Wed, 12/15/2010 - 23:41 | 810617 StychoKiller
StychoKiller's picture

TruthInSunshine has been "renditioned!"

Wed, 12/15/2010 - 15:01 | 808800 chancee
chancee's picture

Do you seriously think they will let the market go down before Christmas?  See last Christmas for details.  It will remain suspended like a stuck pig until mid-January.  You could probably put your entire net worth in selling a Jan straddle on SPY here and come out fine.

Wed, 12/15/2010 - 15:33 | 808934 SheepDog-One
SheepDog-One's picture

Do you seriously think theyd bomb a US airliner on Christmas day? Oh wait...

Wed, 12/15/2010 - 16:45 | 809312 IQ 145
IQ 145's picture

 "Probably" is good; and I really don't know much about the stock market, but I hope you won't be offended if I leave it in Silver Bullion. I'm concerned there are more possibilities of bad news than for good news; but then I'm not much of an optimist either.

Wed, 12/15/2010 - 15:06 | 808822 Apostle of Unknown
Apostle of Unknown's picture

We should really cut loose those socialist cheese eating surrender monkey frogs down south. Let them take the part of the national debt they're responsible for (60-ish %) and service it on the part of GDP they're responsible for (30-ish %). After some brief tumult, Flanders would be AAAAAAAA+++ in no time.

Wed, 12/15/2010 - 15:57 | 809067 merehuman
merehuman's picture

Euro could increase the amount of gold backing it and strenghten thereby?

Its what i would do were i the ECB at war with the FED. Sick moodies on spain, euro stayd put so AP downs belgium. Anything to make the euro look bad and paint the dollar good

Wed, 12/15/2010 - 17:50 | 809585 malek
malek's picture

And EURCHF takes out the all-time low.

Wed, 12/15/2010 - 18:14 | 809670 robertocarlos
robertocarlos's picture

Have they tried the heroin business?

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