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Freefall: EURUSD 1.2388 And Plunging, Market Liquidity Disappears Again, Traders Brace For Another Flash Crash
Full profit taking in everything. Now even gold is plunging, but it is likely an LBMA "intervention." EURUSD just broke through 1.23 and has no further realistic supports for a long time. The money has no option but to go into gold or money markets. For now it is not going into gold, which means it is a relatively good buying opportunity. Liquidity in stocks is now gone as volume picks up. Two of the desk traders we have spoken to are all wearing fireman's hats, bracing for Flash Crash part 2. Look for much more action out of the ECB/FED/IMF/EU/X-Men/Ghostbusters before Asia opens this Sunday. In the meantime, everyone must sure be grateful that the SEC is contemplating instituting new and improved circuitbreakers some time in 2039.
Gold:
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You're making it more complicated than it is. I'm saying that when a society devolves into chaos there are certain items that one can use to survive. One of them is gold. Many are drawn to gold right now because they suspect that we are heading into a period of chaos and they are prudently positioning themselves to have the best possible chance to survive.
The value of money is based on what it can purchase. That's all. Printing money without increasing the supply of goods devalues the currency. Gold is money. Silver is money. Both are limited in supply. Therefore, their value relative to available goods doesn't change. Another factor is the supply and demand for PMs. There will be a time when demand outstrips supply by a wide margin and the prices will go parabolic.
Perhaps that's the time to begin selling some PMs but we are not there yet.
My advise is just to pretend he doesn't exist. I explained the problem with his logic to him several times, but he just called me a moron and didn't do anything to refute it. His mind is closed to any view but his own.
I don't read any of his posts any more for that reason.
Sorry, that's not the point. Rather, the issue is whether or not GLD owns the gold it says it does. As a person with a seriously dystopian perspective you should have realized that.
So what? When this all collapses, virtually all forms of credit are going poof.
Folks, this is 100% historical fact. Credit is the second artifact of civilizations to bite it.
The first to bite it is trust. We are already at that one.
"DID ANYBODY HEAR RICK SANTELLI IN THE LAST SEGMENT"
does anyone have a link to this video? Thanks!
(Physical) Gold, beeznitches!
I laughed all the way down this thread!!
Then beeznitches!
Priceless!
What do you mako gold though?
Trough? Cup? Handle? Cake? Valley? Slope? Candle? Can'tdle?
Will? Won't? Silver? Beeskneesitches!!!!
I'm holding, not folding but nervous!
Maybe he has been chatting up SteveNYC, and homeboy dropped knowledge. Rick, "You know, I have been reading ZH now and I kinda like it." Steve flashes a glare, "Rules one and two Rick....rules one and two." Rick is taken aback, "What...I didn't know...what rules...what?!" Steve steps in close enough to smell Rick's morning cig breathe, "The first rule of Zerohedge is...."
But look at gold in Euros. It broke 1000 just for a moment. Did anybody else see that?
buy it in $ dump it one the eur exchange. i think the spread is 5 bucks per ounce.
arbitrage 20000 ounces and enjoy yourself.
It's like a game of Frogger.
1.237
so look for PPT at 2:40?
gold miners are getting hammered, por que?
the gold is just as safe as it has always been, however the corporate shares in the company which extracts that gold are likely to take a beating. as for the PPT, next week is options exp? the time when the fed does some of its best work. i would be loathe to tell you, don't hold your shorts overnight?
Healthy consolidation in gold and gold miners. Mid next-week will probably be a good time to buy, after the current pants-pissing episode has run its course.
Oh, and don't expect the PPT to show up today.
In Marla's oil thread DoubleDown said that PHYS, as a proxy for physical gold, was actually up.
Bullion vaulting services that claim to be _fully allocated_ are still priced at spot. Why isn't the difference with PHYS being arbitraged away?
Deflate! Deflate! (in the USA)
"Flash Crash 2.0" ? You can only wish. Brian "I've got a giant" Sack of http://www.newyorkfed.org/aboutthefed/orgchart/sack.html will not let it happen.
After all, the honor and pride of the Federal Reserve are at stake...
Quite a move here 1.2368
Didn't the Gart-man go long gold yesterday?... He still has the kiss of death.
Looks like the Gold Cartel is having another hissy fit.
Time to back the truck up again. What a hoot!
um, I just want to thank the academy and JPM for giving me this last moment to put the remainder of my kid's college fund into physical gold and silver at a bargain price.
thank you mr. dimon.
Hairy Wanker must be in a meeting he will be back to save the day!
I fear the EURUSD parity more than the total EUR colapse. The political stupidity, never in short supply, will suggest we turn the pair into a single currency... Take note, you'll hear it soon.
Hmmmm... Very interesting. I don't this happening any time soon, though.
The Euro, after all, was created to maintain a certain independence of Europe from the United States. Then again, what do I know?
"...Fascinating Captain. You humans have let emotion drive your race to virtual extinction. It was only the discipline of logic that allowed us to survive..."
"Go fuck yourself Spock...and sell, sell, SELL!!!!!"
+1000 lolz
"ECB/FED/IMF/EU/X-Men/Ghostbusters"
This right here is the whipped cream on top of the apple pie. I get my minimum daily requirement of belly laughs and smiles right here on Zero Hedge.
Thanks Tyler, Marla and the ZH supporting cast. And of course all the contributors and commenters.
Ayup, my 2nd Bellysnort of tha day.
Who you gonna call? Bernanke!
again a wrong headline (as yesterday with cable breaking 1.46 and not 1.45 as reported), eur broke 1.24 not 1.22
why?
2039?!! WTF?!! Is the SEC serious?!!I guess they do not have time to fix anything because they are watching "two girls and one cup" in the internet again. Zero Hedge is the best site to know bureaucratic stupidity not only in the bankrupt USA but in the EU and UK. 2039?! Will America even be around at that time?
I expect the PPT come in and save the market at 3:00. And the euro, well I guess they will solve this problem by saying they will a TWO trillion dollar bailout instead! Yes Dow 36,000 by 2012! Wohoo!!!
Funny how that works, margin calls tend to encourage selling of that shiny stuff held in paper form. When deflation trickles down on the "little people", their margin calls (aka grocery bills, gas for the truck) will have them selling the real shiny stuff for whatever it will fetch at the pawn shop.
Deflation is a bitch, they threw $20T at it and it just laughs.
I have noticeed you are one of those people who likes to point out problems without offering solutions. You must work in government.
+1 I work in gov't, and the most frustrating aspect of dealing with idiots is that even after being told how to solve their problems (which I shouldn't have to do in the first place), they still refuse to do so. Fixing 10 year-old problems means admitting that they sat on their ass for a decade instead of doing their job.
I too work for the feds. We perpetuate problems on purpose. Guarantees our jobs. No motivation to find and solve real time problems...
Granted. I just want to stop being blamed for their failures.
Sorry, I kinda took away from your excellent post. I get enraged by what I see around me. The gov't is full of high paid idiots that would otherwise be unemployable.Its almost beyond description. When I tell family, neighbors, etc, that many gov't employees are AWOL from work, they can't believe it. Its a concept they can't comprehend, people getting paid for jobs they do not show up for. But Tom Coburn's report show's that since 01, we have lost roughly 30 million man hours of work due to AWOL federal workers.
That doesn't mean they are calling in sick or telecommuting, that means they are not showing up and nobody cares. I figure half of them have forgotten how to get to work...
Too bad it is not more the case at the US Senate, Congresss, the White House, and the IRS.
+1000000000000^1000000000
My mother works for the feds... they have a couple ppl in their 70's, one plays games all day, the other sleeps. If they're not missing they're fucking around. If you have half a brain, and don't mind working, you can go far in the .gov..
Myself.. got recent employment with a .gov.. WOW, what a change!!!
@hedgeless
Wrong -- I've been signing my own paychecks since 1987. I freely admit I have no solution to, or way out of this clusterfuck, what's your solution? I do have a personal escape plan for what I see coming in a couple of years. Do you?
Disintermediation. It is no panacea, but at least it is something positive to work toward. If you are a business owner, then you are in a good position to employ the concept.
Fair field--clear course.
http://www.zerohedge.com/article/numerous-european-banks-and-reinsurers-identified-tens-billions-greek-failed-repo-exposure#comment-334203
oh for chrissakes, grow up. admit there's total corruption and JPM is in there slamming down the gold and silver trying to save its butt.....you know, this pretense that gold is going down naturally due to "market forces" is literally ludicrous now ....
we all know what's happening, mr. dimon....and we thank you for the opportunity to buy at bargain prices this morning.
as soon as your boys close the Comex, we'll see how much of a bargain....not too many people, real people, are probably going to want to go home short gold this weekend.
Currently green. Perhaps another day RW
why would anyone watch CNBC and Pisani when Bloomberg TV is freely available, screenshot from a couple of minutes ago:
http://i43.tinypic.com/30s7fjm.jpg
BTV watcher here.
I was happy to see some Australian chick on CNBC yesterday morning who was a clear upgrade from Becky Quick.
meh .... another day, another game ... as long as SDR is the ultimate goal this is just monkey spanking so the dudes at prop-desk actually earn their living.
no collapse ... sorry ... and boys and girls; dont forget; ECB has not yet started using the swaps ... not even by a long shot .... waiting for the pound to drop to 1.40 and the ramp up in the eur will begin .... boe can not swap the same amount of $ as ECB can; monetization or no monetization ...
The swap lines are already open? Why wouldn't they have stepped in already - or is it just a get them all in the water and toss in the iron...then again maybe there is some merit to the tinfoil rumors about germany
read the comment again; the goal is to fuck up the pound and then ramp the eur up with swap facilities. i guess you dont play chess. not every strategy is a 3-minute strategy. this is a long match with a check mated pound .... eur/pound 1-1, eur/usd
1.35xx-1.4xxx < 1.45xx. things will lull in the summer and while no one is watching; JCT and BB engage the swap lines.
Tactics without strategy is the surest way to defeat: lots of the former none of the later. IMF/SDR is a question more of the periphery not the core. one big circle J
look; its simple
FED needs a WEAK dollar to keep the interbank rates low and borrowing rates, in general, low
the only two ways it can achieve that is either by government issuing new debt on top of the projections, which are in themselves understated. That is a no go simply because the potential of a failed auction is to high. Secondly it can drown the market in new dollars which are not new dollars, but the ones that already exist and swap them for EUR, GBP, JPY, CHF. Furthermore; since there is much more euros on the market it is easier to, lets say, iceberg 1 trillion bucks into 100 [probably more, say even distribution over 105 days] orders and slowly push the eur up and mimicking it as a normal market action. The best time to do such a trade is when there are fewer market participants since the lower volume of currency traded allows the higher variability in the actual execution of the trade, ie, summer. also other swap counterparties may not notice since it will not be shown as anything unusual. Also engage in enough swaps with BOE to keep the exchange within 200 MDA and further mask the trade.
It really is that simple, and to achive parity FED only needs to evenly swap so that EUR/GBP diverge until parity which may come as early as September. Keeping the $ and 1.43xx and < 1.45xx-1.50xx should be no problem. This set of moves frees existing capital which is now hiding in low exchange rates. USD needs inflows as much as the next country and 1.43xx EUR would both benefit EMU debt management and projected austerity measures and create new volume of available dollars which would flow towards US assets and markets. Bernanke simply can not allow deflation, if deflation, GAME OVAH.
Its that simple. And so it will be done. You can bookmark this comment and post in 4 months again and if i am wrong i will never post another word on ZH, or anywhere else.
Do us a favor; bookmark it and post it everyday ;)
WTF, no it isn't! You cheeky bastard I'll ... oh wait ...
Now please don't say that....
The treasure of this site is that people share their thoughts and perspectives. There are so many variables to consider, and it is so valuable to be able to come here and read the slicing and dicing of what to make of it all. You should most certainly NOT stop posting regardless of how it all pans out over the summer.
I second that
The Fed did SAY that they would give a weekly report on the swaps.
Spot on Cheeky. I had a price target of 1.20xx for the EUR/USD since March and narrowly missed out on buying Sept 130 FXE puts for $3.00 a couple weeks ago (now up around $8). However, I was convinced that Bernanke et al would not allow the exchange rate to fall much further because of the desperate need for a weak $ but I had a hard time explaining to others, and myself, why and how they would get it done. Your analysis on the goal/usage of the swaps is exactly what Bernanke had in mind and the light volume summer months will be a great time to implement. Waiting for VIX to get back into >25 area where FXE calls begin to look attractive.
Thanks for cooling me down, CB. Whew. More time to deepen the larder.
Thanks for the insight CB...
They are slaughtering the dumb money. They are like buffoloe hunters and are using tricks to single out the back of the pack. Do you know how poorly traders have done for the last few months? The conversations I have are hilarious! I was talking to a guy at the gym the other day who has traded for 30 years so he knew better than I. I told him gold yadda yadda...he laughed. I said a crash is coming yadda yadda...he laughed harder. This was the weekend before May 6th. Saw him a couple days ago, and when he saw me he put his head down and did not say a word. Dumb money is getting crushed ad GS, BS, et al are laughing all the way to the bank and back. They are shaking off the fleas, panning for gold, what have you.
Exactly. The best revenge average folks can take is by using the ONLY edge they have - the ability to buy great companies when prices get cheap( ie. Not now, not yet) for long term investment - ie. hold for a growing stream of dividends/assets to protect against inflation etc. Hoping we get a good opportunity some time this year. Best to not wear yourself out trying to second guess intraday moves - screw them - they can play with themselves.
Confession: While waiting for opportunities to buy cheap stocks - I trade currencies for fun and profit - a LOT better - hard to manipulate by the crooked wall street dealers. Yeah try manipulating a market that trades $4trillion A DAY!
Long term, once the orgy spit swap of the Fed and ECB commence, then yes, go long high grade corperate stocks; short term corperate bonds/munis with hydro-electric power sources. The corperate buy is a fascist trade, but I do not judge the average man/woman out there trying to maintain wealth, I only judge the big money runners. Afterall we have to do what we have to do. Personally I will not participate except in a slight way (PM stock for two maybe three years before they are Nationalized), but I do know that the end plan is for a "Rise of Firms" (the title I have given to Paul Kkkrugman's Nobel acceptance speech).
Paul Krugman- "The Rise of Firms":
http://nobelprize.org/mediaplayer/index.php?id=1072
Cheeky bastard!
Double post
Dip buyers and holding out for better prices before exiting are seeing that mouse hole shrink. It is a wonderous thing psychology that they could condition the masses into thinking these are actual prices they are seeing in the stock market.
JPM appears to have signaled that the cannibalization is about to begin with the GS downgrade yesterday. This whole ruse only works if all the big banks participate. Expect the rumor spreading to begin because this entire rally and marking up of prices was predicated on a recovery that never appeared. Fed can only keep 0% for so long and the outflow by mutual funds and retail has been relentless. With QE & Unemployment benefits ending the banks are beginning to realize that there is NOBODY to unload the massive amount of stock they have been purchasing for over a year. So who gets out first?? This youtube clip should illustrate well what is about to happen as Main Street becomes a casualty of the banksters one final time.
http://www.youtube.com/watch?v=Ff5DlpZiMZ0
And after main street wises up.. this follows...
http://www.youtube.com/watch?v=JKzM8xsQ5-U&feature=related
Nice.
signs of irrational illusion...
Nathan’s Economic Edge: Retail sales were just released as climbing .4% month over month for April. This follows March’s 1.6% rise but is above the forecast which called for .2%. Guess what? I put NO CREDENCE in the official Retail Sales report—are you surprised? This report suffers from survivor bias, measuring sales only at stores that are still in existence.* this data does not square with overall tax collections.
For those who have wondered, here’s how the Retail Sales numbers are generated:
This is a very inaccurate way to measure overall sales, and it should be taken in more of a context of being “surviving store sales.” A way more meaningful macro statistic is sales tax receipts, something that unfortunately is not reported in a time fashion. That’s a shame because it would be very easy to do quickly in this day and age. The fact that it’s not leaves one to assume that leaving the public less than fully informed is what the power structure desires.
http://economicedge.blogspot.com/
YAHOO: Consumer Spending Rises as Factory Output Surges (AP): The 0.4 percent rise in retail sales in March was led by a 6.9 percent surge in spending at hardware stores. Spending was also up at health and beauty shops and gasoline service stations. Most other categories either showed outright declines or smaller increases than in March.
Auto sales posted a small 0.5 percent advance. That was much lower than the 6.7 percent surge in the previous month. Shoppers had rushed in March to take advantage of sales incentives that were first offered by Toyota Motor Corp. to try to counter damaging publicity from its safety recalls.
Sales at department stores fell by 1.5 percent. And the broader category of general merchandise stores, which covers big retailers such as Wal-Mart and Target, reported a 0.4 percent decline.
In addition to the impact from an earlier-than-usual Easter, retailers had to contend with cold and rainy weather in much of the country in April. That depressed sales of spring clothing. Demand at specialty clothing stores fell 1 percent in April after having jumped 2.6 percent in March. Sales at appliance and electronics stores fell 0.4 percent in April, after an even bigger 1.3 percent drop in March.
http://finance.yahoo.com/news/Consumer-spending-rises-as-apf-1906896834.html?x=0&sec=topStories&pos=1&asset=&ccode=
truth is always in the details on these big .gov tracking numbers. thx
Gold 1400 then horn charts, adding another kilo
And the politicians solutions is - print even more money! Gold will not be down for long, it's a chance to buy the break out level.
CNNMoney almost as delusional as CNBS
If next Monday is a down day then the selling flood gates will open...look out below!
gold recovered. nice..showing good strength
The force is strong with that one.
Um, scuse me but the Euro is probing four-year weakness vs USD and gold is probing where it was on....Wednesday.
Which is more 'troubling'?
Correction: Gold was probing....maybe JPM sold a bunch to raise cash for their terroristic Euro shorts?
Soc General, Fr
http://www.google.com/finance?q=EPA%3AGLE
Slighty off topic question...I have come into a reasonable amount of cash recently...any recommendations?
1] pay off mortgage
2] hold all in cash
3] buy PM
4] other suggestions...
1/3 in each. Also if you have your mortgage with a big bank refinance to a credit union. Take their power from them.
Jim's 1/3 each is good advice.
But if you owe a whole lot to the bank, maybe pay a bit more than 1/3 to lower your debt.
I am NOT in the camp that many PM-ers are re repudiating your debts. If you signed the papers with The Greedy Bank and you owe the money, then you should pay up.
Asymmetrical ethics. WE the People should honor usurious contracts?
I just want to add my opinion.
80% in PMs, food storage (+water filter), firearms.
20% cash for immediate necessities, routine utilities, and making mortgage payments (don't pay it off! because in a crash you'll have a piece of land with highly organized wood, metal, and plastic that you call a home but nothing to eat past a month and no way to physically and financially protect yourself) if you feel you must honor the contract when your house is no longer worth what it is (prices are still artificially high; anyone that refinanced in the last six years is likely underwater; look at "official" unemployment numbers - where are the real buyers?) - and you don't own it anyway: stop paying property taxes and see how long it takes for local "authorities" to prove you are a mere renter.
If you're in a major urban area (God, please not a condo) then get the hell out of there!
The system is on the verge of collapsing and people are worried about pleasing the banks. Don't hurt me! I don't want any trouble, Mr. Banker!
Yeah I guess the sentiments of a formerly fat, dumb and happy bunch - easily frightened by a few nasty market events or maybe by the fact that jobs are hard to find. Really think this is bad? How about europe during WW2? The Brits? Look things are only bad now relative to the hopelessly delusional existence of the past 20 years. But actually - this is nothing. Folks are too soft and easily scared thats all. We had functioning stock markets through the 2 world wars. People conducted business. Majority were not preparing for some sort of armageddon ( even as air raid sirens were a routine part of daily life) and bombing raids were happening. You really think things are bad now?
We have Chinese and Russian nuclear codes. Everything is OK. Continue procreating as you have done for the last 60 years. Trust your leaders. Trust your leaders. Trust your...
I hope we don't get any more soft!
Oh, and BTW, if things get really bad we won't be logging in to pontificate about it.
Prepare like it's 1939.
So if there is some sort of collapse (which I think is highly likely - just not sure when), would one be better off as an "owner" of a home (has a mortgage) or a renter? I'm on the brink of going balls out and using my saved cash as a down payment to buy a home in a coastal community with little supply and take on a mortgage. I then plan to get our food storage and self defense in place. I suppose I feel like I'd rather be in a community and on a little land that's "mine". What's the likely scenario for housing and mortgagees / mortgagers in the collapse? I have my own thoughts, but just curious on other takes.
Since you asked:
It depends on how bad things get. The concept of "mine" only exists where there is governance, and respect for rule of law and contracts. Exit those, it just ain't yours anymore. Game over.
If it gets really bad, "mine" applies to whoever has the largest army. Note I did not say "the most guns" because shortly after (very shortly after) it resolves to a shooting game, it becomes a militia game. You in a militia? No? Prepare to surrender ... everything.
So let's assume that "mine" doesn't make the cut. What do you have? Land is valuable to whoever can exploit it for food production. Can you? Will you? Will they let you? And if they do let you, will they let you keep your harvest, even part of it?
In that context you can buy or rent, it matters nothing if you really do think it's going down.
Do you think it will? Do you really? The why are you calmly discussing this? Nothing you know today will emerge past the event horizon, if it goes down.
Scary stuff. But that seemed like the direction you were going with the question. Abandon almost every notion you read here about self-defense and preparedness; there are no real predators here and few who understand crisis management, and speed. The race as always will go to the swift. Stay sharp. Be ready to move.
That is my advice.
If that coastal community is the Hamptons then you might have to worry about bankers trying to foreclose - they'd be up the street - they can walk over!
I would try to be as isolated, but within bike ride distance, as possible. Find a location you think is suitable and put food and other provisions in a storage site near that community RIGHT NOW. Then you have the peace of mind of actually being able to feed yourself if things do get really, really bad. Like Katrina nationwide with no help on the way EVER - at least not within the timeframe of keeping yourself and loved ones above room temperature. It doesn't have to be the boonies but you want the least amount of unwanted visitors noticing that you have food when nobody else does.
If you have items the community finds useful, like food, the ability to produce purified water, handyman skills, armed defense, etc. you will be welcome just about anywhere. Just don't let anyone know how deep your larder is or you will find yourself on the receiving end of the worst that human nature can conceive. "Rotten hoarder! We're starving and you're evil! Die!" Seriously, you want to be somewhere other individuals are somewhat self-sufficient. If you're thinking of condos then you'll be in that horror movie with people turning on each other as time passes as supplies run out.
But anyway, I'm talking about survival - which is a tricky subject because you will always have a majority of cold, wet, hungry, angry, "why me!" people whenever the electricity goes out - they never listen until they are getting beat over the head with reality.
I would rent. Maybe getting into a place, highly leveraged with low payments, is a good idea (equivalent to renting but no landlord and you get "equity"; whatever that means these days; be careful about large down payments these days; extremely careful - I'd rather be able to pick up and go). Again, it's highly unlikely you will face foreclosure when people are trying to feed themselves. But just in case it's a slower collapse you'll want to have something to pay your property taxes with so that local public leaders don't disown you of your "own" property for not contributing to community coffers.
As you can tell, I am not a life saving device. That is for you to ultimately decide. Well-laid plans can pop at any moment.
Send it all to me; I'll make sure it stays safe.... ;-)
http://www.zerohedge.com/content/donate-zero-hedge
Pay your debts accordingly, save as much cash as you would need in an emergency, and buy the dips in gold and silver; but first anchor your PM holdings by spending a good chunk now. Buy silver and gold bullion coins at an authorized coin shop. Then learn how to brew beer, start a poker night with your friends, feed them, and go skydiving (the REAL green chute!) Have fun!
Why does this only happen when Harry's on vacation?
Perhaps the wankster can give us his vacation schedule so that we can properly time our longs and shorts!
Last I saw Wanger here, he was saying S&P 1175 was "Max Pain". If that was true I wonder what the current 1131 is?
That's bent over with Long Dong Silver behind him pain.
Is the PPT on vacation or something?
Put the mai tais down boys its time to get back to work.
Visa traders seem to be confused by the retail sales report v. the legislation. Don't retail sales always win in the rock, scissors, paper game? Pretty steep fall from that $97+ print about 3 weeks ago, no?
EURO EXIT:
http://williambanzai7.blogspot.com/2010/05/euro-exit.html
I would pay a lot of money to see someone punch Dennis Kneale in the face. He has to be that annoying on purpose.
I'll see if I can sneak into the studio this afternoon. I need some walkin' around money for the weekend.
There must be some vacuum sitting under that 400 point gap up on Monday. In order understand see how fictitious these prices are you only have to look at the market performance when the markets are open vs After hours & Pre-Market movements and low volume.This market has not seen real buying since July of 2009.
Now it's going into gold.
I hope everyone understands what GOLD BITCHES!! means by now.
It's not just me being Chumbawamba.
I am Chumbawamba.
"In the meantime, everyone must sure be grateful that the SEC is contemplating instituting new and improved circuitbreakers some time in 2039."
I love and really love that statement! Kudo to Tyler. I will keep that sentence to remind my colleagues about the how useless SEC is.
Thank you.
EURO GUERNICA IS HERE!:
http://williambanzai7.blogspot.com/2010/05/euro-guernica-friday-may-15-2...
About 3PM look for the PPT to gun it....
Reading Zero Hedge now, I feel like if I was listening to the radio show of Charlie Frost, that prophet of the apocalypse on "2012" movie, who narrated the end of the world, LIVE!
We're a lot more pessimistic than that guy.
FIAT getting crushed, stocks included, and gold bounces back into its 1st support range almost instantaneously. I love fridays, for they make me feel sane and crazy at the same time.
o/t my daughter and her Slovenian bf, asked me if they should be buying the euro at this price, here in the USA, to take over there and spend this summer?
they have to use the euro, so why not get it low, right?
Sure, however when silver coins are worth $36 by the end of summer.....
But I do like the price of the Euro right now. It should not get any lower than $1.20. Sarkozy is doing everything he can to fake out money runners. Same with Merkle. Like Cheeky said, at the last minute, right before everybody thinks the Euro is done for...SWAP lines! So anyway, your girl should have fun this summer in Europe, with her cheap money. If she wants to have fun all year, have her hold some silver coins so she knows what real money feels like.
the whole thing is so stupid. because of last week we already know where there is some support.why would anyone step in before that.
If things get really bad, the Fed will have to lower the federal funds rate.
No, wait...
Harry!!!!!
Where have you been????? We missed you!
Okay, in all seriousness, now -- what about selection bias is hard to understand? People whose businesses have collapsed aren't likely to be going to meetings, ya think?
It looks like Harry received so many junks his post dissapeared faster than SPY buyers just before noon. Oh well, just wait a few minutes, he'll pop up somewhere.
Really? With whom are you meeting? Not the folks I talk with in Chicago. All the tradesmen are still hurting. No one is happy in the commercial real estate world. Not getting worse, is not the same as getting better. At some point people go back to buying basics and replacing items.
That is why Illinois cant pay its bills of 6 billion dollars and is about to bankrupt more businesses there.
http://www.msnbc.msn.com/id/37136518/ns/us_news-life//
Yep. We are screwed here in IL. The only thing worse then our Dem politicians are the stupid IL Republicans. Remember Alan Keyes? What a joke. At least Mark Kirk ,the R Senate candidate is solid and he should win but the right wing of the party hates him. The Republican candidate for Governor is a right wing social conservative ninny. Zero financial bona fides. Might be forced to vote for him anyway.
AHAHAHAHA!!!! You know funny!
Small Businesses Still Reluctant to Hire | Daily Kos | May 11, 2010
[S]mall businesses - traditionally the driver for new jobs - are still very cautious in plans for new hiring. The chief economist for the National Federation of Independent Business, William C. Dunkelberg, said this regarding the NFIB's economic survey released today:
http://www.dailykos.com/story/2010/5/11/865418/-Small-Businesses-Still-Reluctant-to-Hire
But I’ll say one thing about you, Harry, you’re not afraid to make predictions…
"But I’ll say one thing about you, Harry, you’re not afraid to make predictions…"
It's not very hard to make predictions when you're not accountable for them. This is an anonymous site so anyone can say anything they wish and no one will be able to hold them accountable. The only people who hold themselves accountable are those who respect this community and those they converse with.
Since Harry doesn't give a shit about ZH, evident by his attitude, we should give his "predictions" about the same weighting.
Harry is obviously an Internet Troll. They will only go away if ignored. Harry has attracted so much attention on ZH that he is sure to stick around.
Personally I think Harry is a black ops program designed to demoralize and waste energy. But the fact is that many people will continue to take the bait and respond directly to Harry as if Harry is just a fool or maybe misguided. So occasionally I try to diminish the credibility of the bait to attract the fish.
If Hairy Shanker is a black ops troll, I think they've seriously screwed the pooch. From what I can ascertain, Hairy has become a welcome dose of comic relief.
If he is a black ops troll, there's probably a parallel operation measuring his effectiveness. If the disdain quotient begins to precipitously rise, the blow back risk could rapidly escalate.
Recall that ridicule is a powerful weapon. If we can extrapolate ZH to 20% or so of the thinking population, then we already have the Pareto principle in effect. If the general public begins to mock official news sources, it's time to get out of Dodge.
Does anybody remember this last speech by Ceausescu? There's a point where he & the audience know he has lost his authority:
http://www.youtube.com/watch?v=GU53qv5aA1M&feature=related
Okay, CD and BK, you guys have been around here longer than I, I will defer to your wisdom on this.
BK
You're viewing Harry from your shoes, that of someone who is awake and aware, intelligent, thoughtful and has strong opinions. You are not easily moved by contrary opinion. All I ask is that you not judge all readers of ZH based upon the people who leave comments. I know of several who read but don't comment and they are confused and just beginning to wake up from the indoctrination and propaganda/myth making. And they listen to opinions like Harry's.
For them, someone like Harry, who speaks calmly, intelligently and is consistent, has a great deal of credibility. I'm not saying Harry is credible, just that for many it would appear he has credibility. Harry isn't here to convert. Harry is here for those who are visiting ZH for a peek behind the curtain. They don't want to believe what we are saying, they want to believe Harry. So when they find Harry among dozens of voices mocking Harry, those who wish to believe what Harry is saying will be reassured and leave.
That would be one of the purposes of a black ops program on ZH.
There might be another reason for a black ops program, but it would way down the list. Right now there are very few voices talking this up, and it is really easy to poison the well at this point. The key to the current operation is to keep the masses moving forward. Period. The collapse if/when it comes will be a collapse in confidence. The monetary collapse happened and is on-going, game over there. But if they can keep the masses marching in formation they think they can fake it. I don't see how in hell that happens, but they didn't ask me. And maybe they don't even have a choice, they need to keep people marching past the train wreck, eyes forward, it never happened.
I see some very bad things down the road. And if I can see it, anybody can. They need to keep people not seeing the obvious. And that would be the sole purpose of a black ops effort at ZH.
It's almost an act of charity. In a way, I hope they can pull it off. I have nothing to gain, down the road, and much to lose. I have children, a 14 yo daughter. I worry. But I don't think they can extend the illusion much further, try as they might, whatever their motivation.
I can see in the dark. I can hear the winds blowing high up in the trees. I can see the train wreck and I can see past it and I don't like it. But that's just me, I have to look. It's a stupid cat thing. I can't stop being a cat, not even to save myself being afraid.
profound and true - I feel pretty much the same...
....except I have this morbid curiosity about what will happen if/when there is a loss of confidence
Harry makes gambling on black every time look so sexy. Unfortunately, his teeth are missing...
LOL!! Guffawed my morning coffee on that one!
You should swing by Detroit. Its not that far.
in fact there are no good things to be in. since ben "the fool" bernanke and all the other central bank terrorists decided to let everyone leverage up again there is nothing that can't be sold because of margin calls. that includes muni's, tips, etc.
but what do they care. it isn't about running a stable system, it is about banking profits. the worst thing is they don't realize they are just screwing things up.
If peeps think gold is a nice safe asset that only goes up everyday - their faith will be tested. After all true believers should'nt care what the so called price is in some useless fiat currency or the other. You own 100 oz of gold - you'll still own 100 oz of gold . Right?
1oz of gold buys the same/similar goods and services 400 years ago, as it does today. Can't say that for the dollar, euro....
Let's all say this together:
Zero counterparty risk!
I just layered in a bunch of buy orders well below the market. Caught four bargains last week.
It might be a rigged game but there is room to play on the sidelines. Not saying it does not suck but there is an opportunity here.
They've pumped EUR back to 1.2430 and now its time to re-short again for the run to 1.20
The market only crashes when the ZH server crashes. Therefore, everything is fine, no market crash today!
yet... it's still early... plus Harry is buying SSO and AAPL...
based on this vital insider information (from Rham... sorry i mean Harry) my ES target remains 1107, then 1060 below that for next week.
Call Your Senators, and tell them to Support the McCain-Cantwell Amendment!
Begich, Mark - (D - AK)
(202) 224-3004
Murkowski, Lisa - (R - AK)
(202) 224-6665
Sessions, Jeff - (R - AL)
(202) 224-4124
Shelby, Richard C. - (R - AL)
(202) 224-5744
Lincoln, Blanche L. - (D - AR)
(202) 224-4843
Pryor, Mark L. - (D - AR)
(202) 224-2353
Kyl, Jon - (R - AZ)
(202) 224-4521
McCain, John - (R - AZ)
(202) 224-2235
Boxer, Barbara - (D - CA)
(202) 224-3553
Feinstein, Dianne - (D - CA)
(202) 224-3841
Bennet, Michael F. - (D - CO)
(202) 224-5852
Udall, Mark - (D - CO)
(202) 224-5941
Dodd, Christopher J. - (D - CT)
(202) 224-2823
Lieberman, Joseph I. - (ID - CT)
(202) 224-4041
Carper, Thomas R. - (D - DE)
(202) 224-2441
Kaufman, Edward E. - (D - DE)
(202) 224-5042
LeMieux, George S. - (R - FL)
(202) 224-3041
Nelson, Bill - (D - FL)
(202) 224-5274
Chambliss, Saxby - (R - GA)
(202) 224-3521
Isakson, Johnny - (R - GA)
(202) 224-3643
Akaka, Daniel K. - (D - HI)
(202) 224-6361
Inouye, Daniel K. - (D - HI)
(202) 224-3934
Grassley, Chuck - (R - IA)
(202) 224-3744
Harkin, Tom - (D - IA)
(202) 224-3254
Crapo, Mike - (R - ID)
(202) 224-6142
Risch, James E. - (R - ID)
(202) 224-2752
Burris, Roland W. - (D - IL)
(202) 224-2854
Durbin, Richard J. - (D - IL)
(202) 224-2152
Bayh, Evan - (D - IN)
(202) 224-5623
Lugar, Richard G. - (R - IN)
(202) 224-4814
Brownback, Sam - (R - KS)
(202) 224-6521
Roberts, Pat - (R - KS)
(202) 224-4774
Bunning, Jim - (R - KY)
(202) 224-4343
McConnell, Mitch - (R - KY)
(202) 224-2541
Landrieu, Mary L. - (D - LA)
(202) 224-5824
Vitter, David - (R - LA)
(202) 224-4623
Brown, Scott P. - (R - MA)
(202) 224-4543
Kerry, John F. - (D - MA)
(202) 224-2742
Cardin, Benjamin L. - (D - MD)
(202) 224-4524
Mikulski, Barbara A. - (D - MD)
(202) 224-4654
Collins, Susan M. - (R - ME)
(202) 224-2523
Snowe, Olympia J. - (R - ME)
(202) 224-5344
Levin, Carl - (D - MI)
(202) 224-6221
Stabenow, Debbie - (D - MI)
(202) 224-4822
Franken, Al - (D - MN)
(202) 224-5641
Klobuchar, Amy - (D - MN)
(202) 224-3244
Bond, Christopher S. - (R - MO)
(202) 224-5721
McCaskill, Claire - (D - MO)
(202) 224-6154
Cochran, Thad - (R - MS)
(202) 224-5054
Wicker, Roger F. - (R - MS)
(202) 224-6253
Baucus, Max - (D - MT)
(202) 224-2651
Tester, Jon - (D - MT)
(202) 224-2644
Burr, Richard - (R - NC)
(202) 224-3154
Hagan, Kay R. - (D - NC)
(202) 224-6342
Conrad, Kent - (D - ND)
(202) 224-2043
Dorgan, Byron L. - (D - ND)
(202) 224-2551
Johanns, Mike - (R - NE)
(202) 224-4224
Nelson, Ben - (D - NE)
(202) 224-6551
Gregg, Judd - (R - NH)
(202) 224-3324
Shaheen, Jeanne - (D - NH)
(202) 224-2841
Lautenberg, Frank R. - (D - NJ)
(202) 224-3224
Menendez, Robert - (D - NJ)
(202) 224-4744
Bingaman, Jeff - (D - NM)
(202) 224-5521
Udall, Tom - (D - NM)
(202) 224-6621
Ensign, John - (R - NV)
(202) 224-6244
Reid, Harry - (D - NV)
(202) 224-3542
Gillibrand, Kirsten E. - (D - NY)
(202) 224-4451
Schumer, Charles E. - (D - NY)
(202) 224-6542
Brown, Sherrod - (D - OH)
(202) 224-2315
Voinovich, George V. - (R - OH)
(202) 224-3353
Coburn, Tom - (R - OK)
(202) 224-5754
Inhofe, James M. - (R - OK)
(202) 224-4721
Merkley, Jeff - (D - OR)
(202) 224-3753
Wyden, Ron - (D - OR)
(202) 224-5244
Casey, Robert P., Jr. - (D - PA)
(202) 224-6324
Specter, Arlen - (D - PA)
(202) 224-4254
Reed, Jack - (D - RI)
(202) 224-4642
Whitehouse, Sheldon - (D - RI)
(202) 224-2921
DeMint, Jim - (R - SC)
(202) 224-6121
Graham, Lindsey - (R - SC)
(202) 224-5972
Johnson, Tim - (D - SD)
(202) 224-5842
Thune, John - (R - SD)
(202) 224-2321
Alexander, Lamar - (R - TN)
(202) 224-4944
Corker, Bob - (R - TN)
(202) 224-3344
Cornyn, John - (R - TX)
(202) 224-2934
Hutchison, Kay Bailey - (R - TX)
(202) 224-5922
Bennett, Robert F. - (R - UT)
(202) 224-5444
Hatch, Orrin G. - (R - UT)
(202) 224-5251
Warner, Mark R. - (D - VA)
(202) 224-2023
Webb, Jim - (D - VA)
(202) 224-4024
Leahy, Patrick J. - (D - VT)
(202) 224-4242
Sanders, Bernard - (I - VT)
(202) 224-5141
Cantwell, Maria - (D - WA)
(202) 224-3441
Murray, Patty - (D - WA)
(202) 224-2621
Feingold, Russell D. - (D - WI)
(202) 224-5323
Kohl, Herb - (D - WI)
(202) 224-5653
Byrd, Robert C. - (D - WV)
(202) 224-3954
Rockefeller, John D., IV - (D - WV)
(202) 224-6472
Barrasso, John - (R - WY)
(202) 224-6441
Enzi, Michael B. - (R - WY)
(202) 224-3424
Hey, Sen. McCain. I don't give a fuck about your bill. You're fired!
Okay, I guess your in favor of Zombie banks that don't give a fuck what machination loses tax money so long as they get paid. Dumb mofo!!
Look, man (dudette; whatever), the time for politics is over. It's a worthy post - but I don't think I speak alone when I say that it is all a big charade now. Fake. Voting is apathetic, because you're not willing to actually demand something other than the lesser of two evils - which seems to be the common element in all elections now. Oh, except of O. He ain't evil.
Gold down == hot money leaving
Someone parked a rainy day fund in gold, but right now they are liquidating other positions (or buying broken parts of the fin system at 50% off) and need that money.
Just maybe sovereigns are capitulating, too.
This is nothing but bad.
Some big players are getting margin calls are so are selling their best investments to meet those calls.
Well its like that Indonesian Tsunami. First the ocean retreats ( deflation) - then you have the ocean in your living room ( inflation). Europeans will use the swap line - this will put new dollars into the world. Then Bennie will resume buying mortgages - although it may be suitable camoflauged - new acronyms etc. Ultimately he will have to move to direct/in yer face monetization of govt debt. There is no way out.
I'd call it monetization
FED uses proxies to buy T-Bills and equities
Any time people get concerned about inflation, FED proxies sell into and thus crash markets to let them know they should be in T-Bills
..repeat
That ain't workin' - that's the way you do it.
Money for nothin' and chicks for free
Now that ain't workin'... that's the way you do it
Lemme tell ya them guys ain't dumb.
Here is a link to the video of the Santelli comments. About 5:30 in.
http://www.cnbc.com/id/15840232?video=1494145732&play=1
The ECB is letting all the specs get further and further out on the limb. See the FX markets are so huge that even central banks have to set up their interventions carefully. This is cool - like judo - let the fat guy fall - use gravity not your muscles.
I think they saw off the branch next week - leaving a bunch of smarty pants hedge funds holding their dicks.