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STUPID Longs Scramble For Cover

Tyler Durden's picture





 

The STUPID Index is on a roll: it is now 12bps wider to 224, the widest level since April 4, 2009. With UK CDS nearing 100 bps, STUPID non-member, and the country which will ultimately have to fund rolling bailouts, Germany - is somehow trading inside the US, north of 50 bps. Absent the Deutsche Mark making a stunning comeback, coupled with its becoming the reserve currency upon its reintroduction, there is no reason why the Germany-US spread should be negative (which is not to say the the US CDS is rich here).

 


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Thu, 02/04/2010 - 12:04 | Link to Comment Master Bates
Master Bates's picture

Your post holds true in another way.

STUPID LONGS!!!  Aha... die longs die!

I know you meant about the STUPID CDS trade though...

Thu, 02/04/2010 - 12:47 | Link to Comment Anonymous
Thu, 02/04/2010 - 14:17 | Link to Comment GoodBanker
GoodBanker's picture

+100000000

Thu, 02/04/2010 - 12:10 | Link to Comment godfader
godfader's picture

Why? Because the US won't be on the hook for Portugal, Spain and Greece. But Germany will be. The CDS reflect the risk of bund issuance to finance the EUR zone bailouts.

Thu, 02/04/2010 - 12:15 | Link to Comment curbyourrisk
curbyourrisk's picture

Hey...I heard the stupid talking heads poking fun at the STUPID name you guys started this morning.  Karl Quintania seemed to think it was funny, but wouldn't actually laugh about it.

 

 

Thu, 02/04/2010 - 12:15 | Link to Comment curbyourrisk
curbyourrisk's picture

OH SHIT.  I just outted myself for watching CNBS.  Well, its for the 12 minutes from out of the shower...to out the door.  That's it....I promise.

Thu, 02/04/2010 - 12:34 | Link to Comment Master Bates
Master Bates's picture

I have to admit, I have it in the background so I can look up at quotes from time to time.

Watching it and believing it are two different things.  Like when I watch Fox News.  Sure, I see Glenn Beck ranting and concocting bullshit on his chalkboard, but it doesn't mean I believe it.

Same with Crudlow and butt-Crammer.

Thu, 02/04/2010 - 13:18 | Link to Comment Anonymous
Thu, 02/04/2010 - 12:22 | Link to Comment John McCloy
John McCloy's picture

The beauty part of this ensuing crash of all crashes is that so many bulls will hold hoping for a bounce since they are so near that 1 year mark for long term cap gains tax rate. Its a beaut Clark..a beaut.

Thu, 02/04/2010 - 12:29 | Link to Comment A Man without Q...
A Man without Qualities's picture

I didn't think the Fed had to pay CGT....

Thu, 02/04/2010 - 12:51 | Link to Comment Anonymous
Thu, 02/04/2010 - 14:05 | Link to Comment Anonymous
Thu, 02/04/2010 - 12:52 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Just buy them dips folks.

Thu, 02/04/2010 - 13:02 | Link to Comment curbyourrisk
curbyourrisk's picture

You got it Leo.  Those are marching orders, right??

 

haha

Thu, 02/04/2010 - 14:03 | Link to Comment Missing_Link
Missing_Link's picture

HA!  That's hilarious!

And to think I thought you were being serious up until now.  How could I have missed it?  Brilliant satire, Leo  ...  a bit subtle though.

Thu, 02/04/2010 - 14:08 | Link to Comment SteveNYC
SteveNYC's picture

When it "dips" to about a 8x PE on the DJIA and a 5% - 7% dividend yield, I'll be buying those dips. Until then, selective shorts and cash, cash, cash.

Thu, 02/04/2010 - 13:33 | Link to Comment Anonymous
Thu, 02/04/2010 - 13:43 | Link to Comment Anonymous
Thu, 02/04/2010 - 14:01 | Link to Comment Missing_Link
Missing_Link's picture

"I'm with STUPID."

Do NOT follow this link or you will be banned from the site!