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Market Melt Up? More Like Yen Meltdown

Tyler Durden's picture




 

Want to orchestrate a melt up? Here's how - 1) Make SPY hard to borrow; 2) force shorts in one of the top 5 most traded stocks in the world to cover wholesale, 3) kill the yen. Like literally. The chart below shows how the entire world is gang raping the Japanese currency as the carry trade all clear is given despite the imminent auction of Mykonos ($0.01 initial bid)... and of course 4) swear in Ben Bernanke as Chairman of the Fed for another 1,000 years. In the meantime, Dow 36,000 in 245 days.

(up is weaker, down is stronger)

 

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Thu, 04/08/2010 - 15:23 | 291940 taraxias
taraxias's picture

They'll get their 1200 on the S&P no matter what. Anyone who is shorting this market right now deserves what they get.

 

Actually, let me rephrase that, anyone IN this market right now deserve what they get.

Thu, 04/08/2010 - 15:30 | 291953 Whizbang
Whizbang's picture

Wait a minute, wasn't deflation japans biggest issue? Isn't this exactly what they need?

Thu, 04/08/2010 - 15:31 | 291954 rubearish10
rubearish10's picture

Not sure if anyone saw this but we reached an "oversold" condition this morning after that decline yesterday. Come on, take the bone, wasn't that sweet?

Thu, 04/08/2010 - 15:33 | 291960 Traianus Augustus
Traianus Augustus's picture

Can someone please clarify the impacts of making the SPY or like vehicles hard to borrow.  My understanding is that this is similiar to removing short sellers from the market.  Is this the same, and if so wouldn't a sharp move down in the markets be exacerbated by the lack of availability of the SPY?

Thu, 04/08/2010 - 15:40 | 291973 equity_momo
equity_momo's picture

No borrow = no one able to short the market = less selling pressure. But in the longer term youre right - no open shorts = no one trying to catch the falling knife when the melt up goes super nova and ultimately implodes.

Thu, 04/08/2010 - 15:34 | 291961 Fritz
Fritz's picture

The global rotational raping continues.

The squid has the pole position.

Thu, 04/08/2010 - 15:45 | 291986 Yophat
Yophat's picture

Its all based on "Retail" strength....LOL

Thu, 04/08/2010 - 15:48 | 291989 The Axe
The Axe's picture

The powers that be---are so powerful, combined with the reborn daytraders....down days are gone forever...

Thu, 04/08/2010 - 15:57 | 292000 sanj
sanj's picture

VIx in the teens, go to sleep, everything is perfect ;)-

Thu, 04/08/2010 - 16:02 | 292011 AR15AU
AR15AU's picture

I could swear that it was just last night I was listening to a Squawk Box Europe pundit making the case for going long the Yen...  

BTW, props to MadHedgeFundTrader...

Thu, 04/08/2010 - 16:03 | 292012 Racer
Racer's picture

And just look at the Dax in out of hours trade... how bullish mad is that?

During the day.. sell, sell sell... but as soon as normal shares market is closed, buy buy buy the futures far more than during the day.....

Thu, 04/08/2010 - 16:05 | 292019 yabs
yabs's picture

what I do not get is if you listen to all the conspiracies
a total economic collapsae is what they want so why are they doing everything they can to keep the market up?

Thu, 04/08/2010 - 16:23 | 292057 jmc8888
jmc8888's picture

Because the more they prod it, the more certain and more devastating the collapse is. 

Behavioral economists have been psychologically prodding us for decades.  You see if you can stoke the way people behave with their money, you can control the markets....or so the theory goes. 

Except it's not in a classroom but our economic reality.  All this psychological prodding helps markets decouple from reality.  So whereas psychological prodding CAN work to a limited degree as a one off event, our economic masters made this sort of bs pretty much their entire toolbox. 

It also allows lay people to THINK they tried to save us, when really they were only trying to save themselves and the value of their investments.  But again in the end someone has to control what's left.

Eventually everyone without a printing press backing their bets will lose and the house will take all.  The house is those that control the money supply, not us.  Or something resembling that in some form or fashion.  Of course it's a lot more complicated that than, and I know for sure I don't know everything and definitely not going into all that I suspect.

 

As larouche says, we're not in a depression situation, we're in a worldwide economic disintegration situation.  Statements like these from Bernanke sure don't make much sense if you want a functioning economy.  Less school, less science, less social security, etc.  Everything is how WE lose, and they get a free pass.  If we want a functioning economy, science and schooling is one of the things we must INCREASE investment in.  But to Bernanke, all that matters in the economy is whether or not the fraud continues, which of course to him, isn't a fraud.

http://www.larouchepac.com/node/14104

 

 

Thu, 04/08/2010 - 17:22 | 292135 yabs
yabs's picture

hmm I like your way of thinking
If they allowed deflation to take place then cash would be safe
If they keep prodding nothing will be safe
so when it bursts we will be left with nothing.
gold may be the only thing to saveguard ourselves

Thu, 04/08/2010 - 19:43 | 292290 ThreeTrees
ThreeTrees's picture

There is no conspiracy.  Those who attribute it to one don't seem to grasp how incredibly hard it would be to rig a market.  It's not that they can't find willing participants, it's that their scheme is tenuous at best.  And with all their supposed control the best they can manage is a sub .30% rise in the DOW on a GOOD day?  The slightest breeze in the right sector would literally ruin all their designs which is why it requires government sanctioned fraud to work.  And to boot they have self-interested governments from all over the globe with angry electorates threatening to cock up their plans at the slightest notice.

No, this is no conspiracy.  This is the only way bureaucracies function, by reacting.  These are the panicked ministrations of an administration losing what it thought was control.  They've mixed Lord Keynes' playbook with a doctrine of outright fraud and will do whatever they can to avoid the consequences of past excesses.  These  are the only things they can do in order to stave off a collapse that will, at best, cause millions to lose trillions, and at worst cause a global shitstorm of biblical proportions.  

Ben Bernanke has not had a good night's sleep in years.  His financial mechanations are keeping the economy afloat but inflation just wont kick in; the economy isn't "fixing itself" the way it's supposed to.  His paradigm is falling apart, and he knows it.  The problem is that he can only put off the consequences the math guarantees will manifest for so long.

Thu, 04/08/2010 - 20:45 | 292391 Buck Johnson
Buck Johnson's picture

I agree with you on alot of what you said.  It's hard to control something like the economy without people knowing that something is amiss and with the self interest of other govt. and private parties the world over.  I think they didn't count on this heating up as fast as it did and being as bad as it still is.  The inflation part is two fold.  One is that banks and other institutions aren't lending as much to the private sector but using that money in buying Treasuries and to use in the melt up that is happening to regain some profits if possible.  The second part is that their is inflation but in real goods like food and fuel (you know the things that they keep out of the inflation statistics in the US), if you have been to the grocery store lately you will tell that your favorite sauces and bottles of this either costs more or in smaller bottles and boxes or a combination of both, thats inflation.

We are in uncharted waters, in effect what happens when the most powerful country in the world goes bankrupt and defaults on their loans.  And what does that said country tell their people and state govt..

Thu, 04/08/2010 - 16:08 | 292022 jmc8888
jmc8888's picture

"So long sad times
go long bad times
we are rid of you at last
howdy gay times
cludy gray times
you are now a thing of the past

Happy days are here again
the skies above are clear again
so let's sing a song of cheer again
happy days are here again

All together shout it now
there's no one
who can doubt it noe
so let's tell the world about it now
happy days are here again

Your cares and troubles are gone
there'll be no more from now on
from now on

happy days are here again
the skies above are so clear again
so let's sing a song of cheer again
happy times
happy nights
happy days
are here again!"

Now where is the 2010 version of this 1929 song?

 

Fri, 04/09/2010 - 02:21 | 292724 yabs
yabs's picture

come on how can it not be a conspiracy only a complete tw*t could ever believe Keynes was right.
who could ever think you could spend and borrow your way out of debt?
do you really think they are that stupid
evil yes but not stupid

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