Holiday Morning In US Sees Futures In Free Fall, FTSE Halted For Hours And Dubai CDS Surging Again
Maybe it is a good thing markets are closed in the US today, as the world is certainly not sharing America's festiveness.
The ES was down 22 at last check.
The FTSE (yes, the entire index) was halted for more than 3 hours earlier, in expectation of the second coming of Jerome Kerviel.
The FTSE futures, however, continued trading, and are now at the lows of the day, down 128.
The dollar is trying to stage a moderate comeback.
And all bets are off in Dubai where CDS for Dubai World, and its linked Dubai sovereign, were wider by about 120 bps. Dubai World hit 612 bps while Dubai is at 545 bps. The spread between the two entities, which Bloomberg describes as "Dubai World is a holding company for the Government of Dubai", is converging by the second, as can be seen on the chart below. With everyone expecting the next domino expected to come out of Eastern Europe, it is only fitting that it would instead appear in the Persian Gulf.
(4 votes)
on Thu, 11/26/2009 - 10:25
#143083
Ghost cities in China, maybe now ghost cities on palm-shaped islands in the Middle East.
It would be fitting if several of the tallest buildings in the world stood empty in perpetuity as a tribute to the end of the world's Golden Age of Excess and Hubris.
on Thu, 11/26/2009 - 11:27
#143138
There is actually a very very close correlation between the completion of each successive 'Tallest Building in the World' and the peak of the economic cycle. It makes sense if one considers the near-euphoric stage of the business cycle that must be reached before anyone is willing to finance such grandiose projects.
on Thu, 11/26/2009 - 19:14
#143511
The Tower of Babylon...
on Thu, 11/26/2009 - 21:40
#143569
+googleplex
on Thu, 11/26/2009 - 20:30
#143537
Don't forget the "Largest Ship in the World" .... just left Florida, FYI, the Titanic was in 1912
on Thu, 11/26/2009 - 20:36
#143540
+++++
Thanks for sharing that awesome observation.
Empire State Building planned 1929, started 1930, completed 1931
World Trade Center started 1966 (Dow peak of 995 in Feb 66) completed 1973 (oops)
Sears Tower completed 1973
Petronas Tower completed 1998 (Asian meltdown)
Shanghai World Financial Center opened August 2008 - great timing
Burj Tower, overtook world's tallest building in January 2009, not yet completed
Next stop, Seoul, South Korea, in 2014
I smell a good short in 2014, yes I do...
on Thu, 11/26/2009 - 21:31
#143563
Sure, without even the money to take the buiding down.
on Thu, 11/26/2009 - 10:26
#143084
80 billion of debt for 300000 people
what were they THINKING.
on Thu, 11/26/2009 - 10:51
#143098
Sqworl, I am truly thankful for your new avatar.
Admiringly,
Abelard
on Thu, 11/26/2009 - 11:33
#143145
@Sqworl they were thinking that if peeps are stupid enough to loan them the loot, what the hell, let's party.
on Thu, 11/26/2009 - 20:37
#143541
don't rejoice too much, ultimately, losses by banksters would be paid by taxpayers in the western world, because your banks are guaranteed by your government. Your taxes would go up, your children and granchildren would continue paying for Dubai's tallest building in the world till ...
on Thu, 11/26/2009 - 12:49
#143221
And most of them... cheap labor from east asia... rest rich bastards from all the oil they dont have any more.
on Thu, 11/26/2009 - 13:37
#143252
Not 300000 but 1.5 mn people...still a lot of debt though!
on Thu, 11/26/2009 - 13:37
#143253
Not 300000 but 1.5 mn people...still a lot of debt though!
on Thu, 11/26/2009 - 15:43
#143385
I'm thinking I want to lick your avatar.
on Thu, 11/26/2009 - 16:22
#143421
Ok, but first clean your screen with 409...x
on Thu, 11/26/2009 - 20:03
#143527
They were trying to emulate Iceland.
Perhaps most of the population will fit into the Las Vegas project they were apparently financing.
on Thu, 11/26/2009 - 20:31
#143538
Yea, except that the US has $50 trllion of liabilities for 350 million, are we really that much better? Maybe we should worry ourselves a bit more before laughing at others. God bless America, enjoy your thanksgiving.
on Fri, 11/27/2009 - 01:51
#143686
Well played.
on Thu, 11/26/2009 - 10:36
#143087
The FTSE (yes, the entire index) was halted for more than 3 hours earlier, in expectation of the second coming of Jerome Kerviel. <--- ROTFL
What's going on with the swaps on Ukraine, Irish and Greek debt?
on Thu, 11/26/2009 - 10:58
#143108
...just a glitch. Nothing to see. Move along...
on Thu, 11/26/2009 - 10:37
#143088
Free Turkeys at LSE compliments of Dubai....x
on Thu, 11/26/2009 - 10:38
#143090
All HALS on deck! Gun the junkers you monkeys!
on Thu, 11/26/2009 - 10:39
#143091
Due to Thanks Giving, the Fed won't be screwing around with the Futures today. Market will actually behave rationally! Expect for 25 pts pop in the e-mini tomorrow...
on Thu, 11/26/2009 - 10:45
#143092
10-20bps wider in the eastern europe. maybe about 10 wider in greece.
on Thu, 11/26/2009 - 10:56
#143104
S & P Futures
Bond Futures
Gold Futures:
on Thu, 11/26/2009 - 11:53
#143172
dear lord, thank you for this meal and today's volatility.
on Thu, 11/26/2009 - 16:26
#143426
Indeed .. it's nice to make money between bites of good food :)
on Thu, 11/26/2009 - 14:26
#143307
Wow! Thanks for posting those charts. Might be interesting to look back on.
I was going to buy more gold yesterday. It's always a bad sign when I get ready to buy something. I'm glad I didn't.
on Thu, 11/26/2009 - 10:57
#143105
Is something big coming in the days and weeks ahead?
http://en.wikipedia.org/wiki/Black_Friday_(1869)
http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
on Thu, 11/26/2009 - 10:59
#143109
Looks like the 5-yr. yield will be below 2% once the bond market re-opens on Monday.
T-Bill yields will probably be negative.
on Thu, 11/26/2009 - 11:57
#143176
Yep, Black Monday. Tomorrow will set the tune if mr. consumer doesn't show.
on Thu, 11/26/2009 - 11:05
#143115
Locking in gains going safe and liquid into the year end. The new one way trade?
on Thu, 11/26/2009 - 12:02
#143183
Head fake?
http://pragcap.com/goldman-sachs-how-to-trade-the-end-of-the-year
on Thu, 11/26/2009 - 11:07
#143117
Will be interested to see if the sharp futures fall is covered in the MSM today/tonight. Lots of TV watchers at home today. Could potentially affect Black Friday sales on the margin (for those few Americans who actually have assets).
on Thu, 11/26/2009 - 11:17
#143128
The MSM will do their job and either ignore it completely, emphasize the "minor glitch", or report the Dubai story in a way as to produce tryptophan -assisted yawning. And then they'll say "...and now, back to Football. Happy Thanksgiving!" with a big, happy smile.
on Thu, 11/26/2009 - 12:44
#143213
Just checked on cnnmoney.com & nothing.
CNBS.com just has the understated: "Dubai Struggles to Ease Debt Fears; Investors Rattled"
Move along, nothing to see here...
on Thu, 11/26/2009 - 11:11
#143124
I expect credit card fraud to be rampant this Black Friday and weekend. This stupid "complimentary checks" they send without asking... someone raided the mailbox and spend over 10k on my account. Same happened to my sister. So, check your balance closely from now on.
Thankfully it was easy to cancel both CC. Enjoy your TG meal and rest because the market will be rough in the next days.
on Thu, 11/26/2009 - 11:21
#143130
Greek stock market ended down 6.66 %....
uhu
on Thu, 11/26/2009 - 16:28
#143429
ugh..."that" 666 guy again...the old horns and hoofs brigade...last seen at the March lows, although most likely that was someone in the PPT's sardonic humor...
on Thu, 11/26/2009 - 11:21
#143131
Great time to be long US Treasuries !
That breakout wasn't too obvious, just needed a catalyst to kick it... 10 Year Treasury is heading for the 1% floor.
Inflation... lmao ... guess we will now see how much pain these newly minted parabolic Gold trade "investors" can stomach before they cry uncle.
Can't wait to see the $VIX Friday morning...
Happy Thanksgiving Everyone !
on Thu, 11/26/2009 - 11:39
#143150
dolla up. stocks crash. if you feel happy holding treasuries then good for you. take it to the next level and strap on a pair of balls and short some gold if you are so convinced about the parabolic move. right now gold is trading down $6 which is not significant, so you got a nice level to short some. heehee.
on Thu, 11/26/2009 - 12:12
#143192
Long US default.
on Thu, 11/26/2009 - 11:27
#143137
Thanks Tyler my bro, I was about to cover all my shorts heading into what looked like a bullish flag / holiday ramp yesterday until your post about the Dubai cds told me to hang in and take some heat into Monday if need be.
Happy TG to you and Marla and once again thanks for all your great work here.
on Thu, 11/26/2009 - 11:34
#143146
http://www.emusic.com/album/The-Merle-Evans-Circus-Band-Circus-Music-From-The-Big-Top-The-Greatest-Show-MP3-Download/10907978.html
Tyler: The most appropriate music score for this thread...x
on Thu, 11/26/2009 - 11:40
#143152
The markets and so called experts are once again acting surprised that Dubai is unable to service its debt. This is no surprise. Stevie Wonder saw this coming!! Leverage works great when the market is going up, but it's a killer on the way down. Welcome to the depression Dubai and Happy Thanksgiving everyone!!:))
on Thu, 11/26/2009 - 11:40
#143155
We will make new equity lows according to my charts and my USD indicator has been giving BULLISH warnings for some time and I'm still expecting a dollar rally.
The primary trend for equities remains down.
Technical analysis can also assist us as to the direction of the economy.
My indicators can identify trend changes before they occur.
They warned me of an impending market crash back in early *2007*
The VIX index continues to give bullish warnings as well.
http://www.zerohedge.com/forum/market-outlook-0
on Thu, 11/26/2009 - 12:05
#143187
Next stop: Deflation City, despite all the daily noise, flailing around, and arm-waving by the CBs and their captive governments. They will blink before swan-diving into the next abyss, IMHO. Of course there is known to be life even on the abyssal plain! Damn, I am starting to sound like a demented Chauncy Gardener. No more internet for me today. Happy Thanksgiving, all.
on Thu, 11/26/2009 - 12:44
#143212
Black Friday takes on a whole new meaning !
on Thu, 11/26/2009 - 12:49
#143219
Why has the S&P500 futures stopped trading?
on Thu, 11/26/2009 - 12:51
#143222
The market is now closed.
on Thu, 11/26/2009 - 13:19
#143240
buy the dip. hahahahahahahahaha
on Thu, 11/26/2009 - 13:30
#143245
Come now, people. Timmy and Ben have ALL DAY to orchestrate tonight's futures ramp. And to send a check to Dubai for whatever they need.
They're just waiting for the call from GS. Wouldn't want to do it without explicit instructions.
on Thu, 11/26/2009 - 14:08
#143287
I just finally hope, that this is what we have been finally waiting for..... sanity and reality in the markets. I hope today marks the top for the DOW and S&P. I would love to get back into equities.....some day when the price is right.
on Thu, 11/26/2009 - 14:30
#143309
Which bank has their knickers in a twist re Dubai debt straight away--that me lads is the question. And who owns the Middle East sovereign debt, Dubai CDS?
on Thu, 11/26/2009 - 16:34
#143434
ING, Societé Général, Citibank (quite big actually = 7 bil.)
BNP Paribas and some other onces but those are the biggest.
Let's hope the DOW stays above 10.000 tomorrow...
on Thu, 11/26/2009 - 16:29
#143431
I wonder how my citi stock and shipping stocks will be doing tomorrow...
I will be glad if I only lose 10% :(
We knew it about Dubai here in Belgium, because they stopped paying their bills starting last year. But not that they actually had that much debt, and this whille their real estate is down big time.
First china, now dubai then greece... I'm thinking of starting to short the market.
on Thu, 11/26/2009 - 17:06
#143457
hmmmm.. charts above indicate gold had a dip down of $12-$14 during the day today 11/26, but gained it all back and some more by close. bloomberg shows gold fut. up $5.20 at 1314.
on Thu, 11/26/2009 - 18:06
#143488
Don't worry people, HAL9k will fix this tomorrow!
on Thu, 11/26/2009 - 18:44
#143498
"Stick a fork in it" he said "I think this turkey is done."
on Thu, 11/26/2009 - 20:40
#143543
hmmm, bonds up, stocks down, gold is waiting for hedge funds to unload to meet margin calls again, time to hedge my long gold?
on Fri, 11/27/2009 - 02:06
#143692
We may get one more chance to load up on gold on the cheap.
Come on Grand Supercycle. I've been patiently waiting for your predictions to come true.
Rusty needs some more gold coins before TEOTWAWKI.
on Fri, 11/27/2009 - 08:00
#143843
Now could be the time begin trading gold. Gold prices are continuing to soar to new highs as the Chinese government attempt to stock pile the precious metal.
Spread Bet
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