As Pummeling In GC-Reserve Carry Unwind Continues, All Carry Shifts To FX - Mrs Watanabe Wins After All

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Wed, 04/06/2011 - 10:51 | 1140831 Ferg .
Ferg .'s picture

Everyone is piling into FX carry trades . I'm looking at the charts for commodity dollars and I can barely believe my eyes . VERTICAL .

Wed, 04/06/2011 - 11:14 | 1140867 camaro68ss
camaro68ss's picture

USD getting bitch slaped right now

Wed, 04/06/2011 - 11:05 | 1140882 falak pema
falak pema's picture

what goes up fast, comes down hard next day! Just ask Benocide. He'll be willing to oblige.

Looks like the Euro will hit 144. JCT will have his work cut out tomorrow.

Wed, 04/06/2011 - 11:13 | 1140961 Ferg .
Ferg .'s picture

I'm think it'll finally hit the dust between 1.4400 and 1.4500 . Blow off top . Tomorrow is going to be volatile  !

Wed, 04/06/2011 - 10:53 | 1140840 Clueless Economist
Clueless Economist's picture

I propose a $4 trillion stimulus so we can create millions of shovel-ready jobs.  John Maynard Keynes is GOD

Wed, 04/06/2011 - 11:22 | 1141018 TruthInSunshine
TruthInSunshine's picture

Paul, I have read (i.e. have been subjected to your tortured logic) some of your works.

You no doubt believe that we can eliminated the national debt by printing the matching number of FRNs, no?

Wed, 04/06/2011 - 15:29 | 1142314 Attitude_Check
Attitude_Check's picture

Not when they are borrowed into existence!  Now if they were directly printed without the underlying debt..... Of course the value would drop (to a more realistic value).

Wed, 04/06/2011 - 10:53 | 1140843 Yen Cross
Yen Cross's picture

And the AUD is the benefactor of every free trade known known to Man and Woman. Greed!!!

Wed, 04/06/2011 - 10:54 | 1140849 SDRII
SDRII's picture

2018 bonds bid 5.5x - sold to you

Wed, 04/06/2011 - 11:16 | 1140948 Ferg .
Ferg .'s picture

Fundamental analysis is dying everywhere . It's quite silly that AUD is still up at these levels , making record high after record high . Every logical support has deteriorated to some degree : rate hike expectations , economic data , the Chinese juggernaut etc...but of course now that the investment world has forgotten or no longer cares about the disasters in Japan , widespread revolution in the Middle-East , ongoing efforts by Chinese authorities to choke inflation , the relapse of the European periphery and a shit load of other stuff that could be categorized as ' risk negative ' , equities have given the one finger salute to logic and the bears and the AUD is moving in tandem , once again the darling high yielder of the FX world .  

Excuse me while I throw up in a bucket  .

Wed, 04/06/2011 - 11:31 | 1141088 Yen Cross
Yen Cross's picture

Hey Technicals, Fundamentals, and Trend. All but the 2 most important are alive. Europe is going to hit a shitstorm alright. The Euro @ 143. ! I'm selling the news and the rumors over the next couple of weeks. I have done well, and some one else can fish for the last 20%.

Thu, 04/07/2011 - 09:36 | 1144862 Ferg .
Ferg .'s picture

Well looks we didn't get that blow off top I was expecting . Hope you got a decent price if you were selling ! ( short from 1.4310 myself ) .

Thu, 04/07/2011 - 09:21 | 1144842 Ferg .
Ferg .'s picture

A junk ? What part of my post warrants a junk ?

Wed, 04/06/2011 - 10:54 | 1140845 arnoldsimage
arnoldsimage's picture

i highly recommend your followers to read the book of luke chapter 21. we truly are running out of time.

Wed, 04/06/2011 - 11:26 | 1141069 sschu
sschu's picture

Luke chapter 21.

There are some real powerful messages here.

Without getting into a deep eschatology discussion, do you think Jesus was speaking about the 2nd destruction of the temple in 70AD or the end times?


Wed, 04/06/2011 - 11:31 | 1141104 arnoldsimage
arnoldsimage's picture

i believe he is referring to end times.

Wed, 04/06/2011 - 11:58 | 1141265 sschu
sschu's picture

It could be both. 

Wed, 04/06/2011 - 11:53 | 1141228 pvzh
pvzh's picture

21:1  He looked up, and saw the rich people who were putting their gifts into the treasury.

Hmm.. "putting their gifts into the Treasury"... Looks like 401k/IRA will be "confiscated", i.e. all assets in them will be swapped for treasuries.

Wed, 04/06/2011 - 12:56 | 1141526 Abitdodgie
Abitdodgie's picture

Like all readings in the bible it is very ambiguous and could be con scribed to mean anything, also in the old testament have you ever tried to add up how many people God killed ,I gave up after everyone on the planet except Noah and his family ,it is not very all as one loving is it , more up there with pol pot or Hitler , or Genghis Khan

Wed, 04/06/2011 - 12:58 | 1141551 arnoldsimage
arnoldsimage's picture

perhaps you should read Job.

Wed, 04/06/2011 - 11:02 | 1140870 falak pema
falak pema's picture

I recommend swimming off the Fukushima water front for all those who believe that war is the only solution to our problems...anywhere, any time, any how; Just war more war. Go take a swim in Fukushima mon amour. 

Wed, 04/06/2011 - 12:23 | 1141384 Canucklehead
Canucklehead's picture

Falak, you are missing the point.  Since time immemorial, you tack into the wind while navigating troubled waters.  If war comes calling, you answer... or submit.  It is a zero-sum decision.  Nobody really wins.  The victor loses less.

Now you can attempt to place yourself in a seat of judgement and pontificate.  That does not always end well.  It may buy you some time.  You may find "friends" who will protect you, for a price.

Wed, 04/06/2011 - 11:02 | 1140883 Bold Eagle
Bold Eagle's picture

Was yen intervention really necessary? Rhetoric question, I know.

Wed, 04/06/2011 - 11:34 | 1141113 Yen Cross
Yen Cross's picture

Everyone runs for a target. No it wasn't. Didn't you see the spike down 2 weeks ago.

Wed, 04/06/2011 - 11:07 | 1140910 flustercuck
flustercuck's picture

i have a bridge to repo out... anyone want to take the other side?

Wed, 04/06/2011 - 11:09 | 1140941 prophet
prophet's picture

"Crony capitalism strikes again"

David Stockman rips the fed

Wed, 04/06/2011 - 11:24 | 1140970 TruthInSunshine
TruthInSunshine's picture

Bernanke is running out of time.

In fact, he's out of time.

There's not going to be any easy coordination or implicit co-operation on currency policy given the events in Japan, China and the Eurozone, and if anyone here thinks that Bernanke won't be made a sacrificial lamb by the ever calculating Team Obama, should the trends enraging and dispiriting Americans continue much longer, as Obama attempts to reclaim office, well, you just haven't been paying attention to what a fresh coat of paint can do for a rusty pig.

Besides, Axlerod and Plough's calculus will be that Independents want more austerity and more hawkish monetary policy (less inflation on food, energy and other things of necessity), and that Obama needs to retain at least a significant chunk of independents in order to win re-election, so it's a matter of when and not if.

For those who watched Steinhardt's dressing down of ObamaNomics on CNBC with Joe 'SmugFace' Kiernan and Becky 'knobgoblin' Quick, you couldn't have missed the reference to retirees getting tossed under the bus due to ZIRP, nor his remarks that the average American living outside of Manhattan or D.C. has been forgotten about.

So it will be Obama for King Dollar sometime in late 2011 or early 2012, because politics is all about the when.

You heard it hear first!

Wed, 04/06/2011 - 11:34 | 1141111 JLee2027
JLee2027's picture

Sounds like the Fed is losing control.

Wed, 04/06/2011 - 11:35 | 1141117 SheepDog-One
SheepDog-One's picture

Lets see, before the quakes, tsuniamis, and reactor melt downs Japan was totaly bankrupt as a nation. However now theyve suddenly got complete rebuild and GDP recovery priced in? Utter nonsense.

Wed, 04/06/2011 - 12:19 | 1141372 topcallingtroll
topcallingtroll's picture

Sounds like everyone is a buy the dip contrarian now. How to pivot ahead of the crowd these next few months is the issue. I say sell in may and go away.....risk off will be the new risk on.

Wed, 04/06/2011 - 11:34 | 1141125 Yen Cross
Yen Cross's picture

The Fed is not even remotely close to being able to direct monetary policy. They are still stuck in damage control mode.

Wed, 04/06/2011 - 11:38 | 1141140 SheepDog-One
SheepDog-One's picture

The FED is just living day to day now, damage control best as possible today to live to damage control another day.

Wed, 04/06/2011 - 11:41 | 1141170 99er
Wed, 04/06/2011 - 11:47 | 1141201 alexanderstollznow
alexanderstollznow's picture

i am guessing that Shiela Bair doesnt get a lot of dinner invitations to the Bernanke household....

Wed, 04/06/2011 - 12:16 | 1141351 topcallingtroll
topcallingtroll's picture

I bet a lot of people miss ur subtle humor at times!

We financial junkies know what bored japanese housewives do when they think no one is looking.

Who would have thought a guy might get bored with a small harem so quickly? but i have learned that man does not live by pussy alone, but by every word from the mouth of tyler.

Wed, 04/06/2011 - 12:17 | 1141360 Irwin Fletcher
Irwin Fletcher's picture

Is this the first post-tsunami japanese housewife joke? Glad to see ZH returning to some semblance of 'normalcy', whatever that means in today's world. It didn't take the Japanese BitTorrent crowd long:

Wed, 04/06/2011 - 12:19 | 1141362 simon says
simon says's picture

Banks to Fed - Pay Us More On Reserves ... Or Else.

Wed, 04/06/2011 - 13:07 | 1141590 99er
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