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US Treasury Refuses To Comment On Euro Market Intervention

Tyler Durden's picture




 

Well, what are they gonna say: "We used US taxpayer money (thank you Ben Bernanke FX swaps) to prop up the European currency and kill the dollar." mmmk.

 

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Thu, 05/20/2010 - 15:12 | 363584 mikla
mikla's picture

No problem, I'll say it for them:

Ditto.

Thu, 05/20/2010 - 15:22 | 363640 Whizbang
Whizbang's picture

I was expecting a short squeeze here. No one else? The same exact thing happened in US equities back after the first leg down of the crash when the u.s. banned shorting on fins.

Thu, 05/20/2010 - 15:32 | 363676 mikla
mikla's picture

They already kicked all the shorts out of the market.  All the hedge funds and pensions were levered-long.

However, yes, for the "late arrivers" jumping in last night, I also expected a short squeeze.  They either had a problem doing that (too massive a market move to combat), or there weren't enough shorts to hurt.  (They can correct the market to send a message, and screw the shorts or longs later.)

So, we have a vacuum -- lookout below.

However, I refuse to play -- market correction?  Big intervention.  Bet long?  Market will correct, because long is impossible (other than through MASSIVE currency debasement).

There's just no chance to "guess" what's being decided in a phone call between central banks across the Atlantic -- because they probably want to whipsaw, because that's how they maximize the "profits" for the banks they are trying to re-capitalize (on the backs of everyone else).

No, you can't play this.  Not even if you want long-term (because we're not in the meetings to decide the scope of the debasement).

Thu, 05/20/2010 - 15:38 | 363693 Whizbang
Whizbang's picture

I couldn't agree more. I've been out of the markets for quite some time now. I just like watching, yeah. I'm a freak like that...

Thu, 05/20/2010 - 16:07 | 363770 curbyourrisk
curbyourrisk's picture

Not a vaccum....It is called Gravity.  Gravity always wins.

Thu, 05/20/2010 - 15:12 | 363586 ZeroPower
ZeroPower's picture

"We're short the EUR just like everyone else, then when the clowns at CNBC realized what we were doing, we decided to hedge"

Thu, 05/20/2010 - 15:14 | 363593 truont
truont's picture

There you go, TD, being "excitable" again.

Why ever would you think that the FED is secretly propping the euro?

Those 250bp gyrations must be due to something else, like strong confidence in the European Union.... <sarcasm>

Thu, 05/20/2010 - 15:13 | 363595 lizzy36
lizzy36's picture

the sound of silence speaks volumes.

Thu, 05/20/2010 - 15:17 | 363615 Carl Spackler
Carl Spackler's picture

So true, Lizzy.

What it really says is "Audit Me!"  Go ahead, I dare you.

Thu, 05/20/2010 - 15:15 | 363598 knukles
knukles's picture

Or they gonna say; "What?  We wouldn't touch that piece of shit with Taxpayer Money!"

Thu, 05/20/2010 - 15:19 | 363622 Debtless
Debtless's picture

+1 very funny. 

Thu, 05/20/2010 - 15:19 | 363608 Cognitive Dissonance
Cognitive Dissonance's picture

OT

On CNBC, Maria just verbally slapped Sharon because Sharon said it was still not certain what caused the Flash Crash. Maria asserts that's just plain incorrect, that we know exactly what caused it and the SEC was implementing the fix. She then went on to say this kind of talk destabilizes the market and we can't have that at this time.

Who says CNBC isn't the Financial Ministry of Propaganda?

Thu, 05/20/2010 - 15:20 | 363630 faustian bargain
faustian bargain's picture

Man...she said that out loud on TV? Didn't anyone tell her you're not supposed to read directly from the playbook?

Thu, 05/20/2010 - 15:26 | 363657 Double down
Double down's picture

One does not talk about the fight club

Thu, 05/20/2010 - 16:08 | 363717 Cognitive Dissonance
Cognitive Dissonance's picture

I couldn't believe what I was hearing. It was right after 3 PM when she takes over. They were doing the rounds with Sharon, Brian in the Nasdaq and Santelli. Sharon was talking about oil being down because, among other things, uncertainty about what caused the Flash Crash as well as "de-risking". Maria jumped down her throat. Santelli and Sharon tried to stop her but to no avail. It was Maria's two hour show and no one was going to say anything she didn't want to hear.

She sounded like she was scolding an unruly school girl, that being Sharon. I suspect from her tone of voice that either she really believed what she was saying or she just finished the cup of fast acting Kool-Aid before she went on the air and she was getting a rush.

Thu, 05/20/2010 - 16:14 | 363788 monmick
monmick's picture

Maria obviously didn't listen to the Shapiro and Gensler testimony earlier today, or else she was half-listening while doing her hair and didn't really pay attention...

Thu, 05/20/2010 - 17:39 | 364058 velobabe
velobabe's picture

http://woodycreekcellars.com/VeloBabe.html

 

maybe, just take the shirt off next pic†

Thu, 05/20/2010 - 17:48 | 364089 Cognitive Dissonance
Cognitive Dissonance's picture

I was wondering if you saw my request for a blow up of your new avatar. Should I post it for all the world to see how fine our ZH women are or do we keep it under wraps?

Thu, 05/20/2010 - 19:56 | 364450 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Isn't Beale making a ZH calender?

Fri, 05/21/2010 - 06:49 | 365260 velobabe
velobabe's picture

yeah, and i am miss september†

Fri, 05/21/2010 - 06:50 | 365259 velobabe
velobabe's picture

let's not wrap it right now.

thanks for asking. might come up with some other mischievous deeds†

 

Sat, 05/22/2010 - 05:34 | 367400 anotheranon
anotheranon's picture

I'm not gonna lie, I kinda like the idea.

Thu, 05/20/2010 - 15:21 | 363633 Whizbang
Whizbang's picture

Diss, c'mon man. It's finminitruth. Don't make me report you for malreporting.

Thu, 05/20/2010 - 15:27 | 363662 truont
truont's picture

doubleplusgood post

Thu, 05/20/2010 - 15:44 | 363711 ZerOhead
ZerOhead's picture

The SEC is implementing the 'fix' ?

Hey everybody it's confirmed... CNBC has just reported the 'Fix' is in!

Thu, 05/20/2010 - 16:23 | 363835 economessed
economessed's picture

You guys are still watching CNBC?

(I suppose it's only to see the curvy girls, eh? Kind of like the opposite of why you subscribe to Playboy "only for the quality of the journalism")

Thu, 05/20/2010 - 15:16 | 363609 anonymike
anonymike's picture

No audit, no worries, until they turn off that fire hose under the Euro and it falls all the way back down, and more, along with stocks that are highly correlated since the intervention began...

Thu, 05/20/2010 - 15:18 | 363610 carbonmutant
carbonmutant's picture

"WASHINGTON, May 20 (Reuters) - The White House said on Thursday it continued to believe that European governments must take strong measures to address the euro zone's debt crisis."

"Europe is having to deal with the problems within Europe and we continue to believe those are some tough steps that are going to have to be taken," White House spokesman Robert Gibbs told reporters.

Thu, 05/20/2010 - 15:20 | 363629 DonnieD
DonnieD's picture

"WASHINGTON, June 1st (Reuters) - The White House says the jokes on us. Ben Bernanke actually owns every share of stock in the world."

Thu, 05/20/2010 - 15:22 | 363638 John McCloy
John McCloy's picture

Double Post

Thu, 05/20/2010 - 15:22 | 363639 John McCloy
John McCloy's picture

I am going to say one thing.

These scumbags are OUT of control.Completely and utterly out of control and they have no idea how weak they are making our nation appear. What country do we live in? We have rising unemployment and all they are concerned about is propping up bankers in other nations.

Thu, 05/20/2010 - 15:25 | 363651 Gold...Bitches
Gold...Bitches's picture

Oh no, no, no.  Dont you see?  We have to bail them out.  Otherwise it will be Armageddon - or so they keep saying.  As if it isnt already there yet?

Thu, 05/20/2010 - 15:31 | 363673 downrodeo
downrodeo's picture

Watch for the revolution meme to pick up some momentum this summer through November. We need to find our contemporary George Washington(s), then we're off to the races...

Thu, 05/20/2010 - 15:40 | 363696 Rebel
Rebel's picture

The first American Revolution was primarily fueled not by the old guys, but by a group of young malcontents with nothing to lose, known as the Sons of Liberty. We are lacking that same spirit today in the younger generation. The old have too much to lose, and the young are playing Xbox.

Thu, 05/20/2010 - 16:04 | 363763 John Law
John Law's picture

Not me. I'm 25 and I'm more than willing to lead or be a part of any revolution.

Thu, 05/20/2010 - 16:28 | 363862 ConfederateH
ConfederateH's picture

Your entire electronic history and those of your entire family have just been sucked into the TSA's "suspected terrorist" database for future datamining operations by the TSA, the justice department and the IRS.  This data will be deleted 20 years after your death.

Just kidding, but the only thing that could protect you from this is the constitution, and the Democrats running the country are busy pissing on that document.

Thu, 05/20/2010 - 16:50 | 363940 SteveNYC
SteveNYC's picture

Your avatar is fukin brilliant!

Thu, 05/20/2010 - 18:02 | 364144 jomama
jomama's picture

JFK tried to stand up to the banksters.  They blew his head off.

Fri, 05/21/2010 - 08:41 | 365363 Mesquite
Mesquite's picture

And Abraham Lincoln.....

Thu, 05/20/2010 - 18:26 | 364221 Apostate
Apostate's picture

Oddly enough, I have to agree.

I'm 23. My generation is a pathetic crew of slaves. I've been a freak my whole life for actually... reading... books. Most conversations revolve around television shows, movies, and celebrities - even among people with perfect SAT scores, elite college berths, and jobs.

The average sub-25 year old is functionally retarded. They will adopt whatever opinions make them feel "cool." They take all cues from television and crass advertising.

There are exceptions, but youth in general wants to pop some Zoloft, chug beer, have terrible sex maybe once a year, and spend the rest of the time nattering or checking Facebook. 

Not like the olds tend to be that much better. 

Violent revolutions have a terrible track record... 

Thu, 05/20/2010 - 19:37 | 364413 ZeroPower
ZeroPower's picture

Not sure where the lame once a year sex comes in for our generation.

Is it because i rather be tweeting instead of fucking?

Thu, 05/20/2010 - 19:20 | 364376 hbjork1
hbjork1's picture

Rebel,

I think Ben Franklin, G. Washington, James Madison, Thomas Jefferson and quite a few others where plantation owners and men of property.  G. Washington had 30 slaves at the end of the revolutionary war and 317 when he died.  He made them freemen in in his will.  It was the intelligencia of the colonies that probably would have been hanged if the Americans had lost the war. 

Just the history man, just the history.

Thu, 05/20/2010 - 16:45 | 363925 kwvrad
kwvrad's picture

we need Andrew Jackson now not GW

Thu, 05/20/2010 - 15:28 | 363663 DaveyJones
DaveyJones's picture

I vote John's comment, "I'm gonna say one thing, these scumbags are OUT of control" the best comment of the week.

You know you have fiscal concerns when "scumbag" enters the financial analysis.  

Thu, 05/20/2010 - 16:06 | 363769 bigkahuna
bigkahuna's picture

Yes, the rarely seen scumbag rating has found quite suitable fodder in the financial community.

Thu, 05/20/2010 - 15:42 | 363705 Gold...Bitches
Gold...Bitches's picture

Oh no, no, no.  Dont you see?  We have to bail them out.  Otherwise it will be Armageddon - or so they keep saying.  As if it isnt already there yet?

Thu, 05/20/2010 - 15:26 | 363656 Mitchman
Mitchman's picture

Nope.  This way they can spin it as: "Our stock market is down and it's the fault of those euroclowns who can't seem to get their act together.  Our economy is great but they're spoiling things for us."  Just read the headlines even on Bloomberg.

Thu, 05/20/2010 - 18:29 | 364228 drwells
drwells's picture

You know, I remember when I first played the game depicted in your avatar (early 2001) and it actually seemed like fiction.

Thu, 05/20/2010 - 15:17 | 363613 BlackBeard
BlackBeard's picture

I hope this big Kenysian ponzi E-induced carnival collapses on itself in my generation, so that my children and grandchildren can focus on being good productive people instead of having to play this ridiculous game.

Thu, 05/20/2010 - 15:24 | 363646 exportbank
exportbank's picture

BlackBeard... this is my concern as well - every action being taken is simply to kick the debt onto my kids and grand-kids.  Allowing (actually encouraging) this is an act of terrorism against my children and children still to be born.

 

Thu, 05/20/2010 - 15:33 | 363684 Duuude
Duuude's picture

Exportbank, me too. I consider what is going on to be Treason.

Thu, 05/20/2010 - 16:16 | 363764 Whizbang
Whizbang's picture

No no no! that is the whole freaking point! It's to provide my generation and all those below with no education, saddle us with debt that we can't possibly pay back, and force us to pay for the health care and retirement of our elders. After that the intentional food and resource shortages start, which lead to endless warfare and the confiscation of wealth for the war effort. Finally, we will have no choice but to turn to the government for food and shelter. By that point we'll be too stupid and helpless to even put up a struggle when the North American Union Merges with the South American Union. Your generation has already doomed that of your grandchildren decades ago. We will be slaves unless the entitlement system of socialized nations is corrected. But which of you will vote to cancel your medicare and social security benefits? Step on up! Thats what I thought.

This has been in the works since the end of WWII and it's been completed around the world at least a dozen times in a dozen countries with varying amounts of success. Think of the Khmer Rouge as a dry run.

Thu, 05/20/2010 - 19:25 | 364383 Kali
Kali's picture

I would vote to cancel it if they give me my money back.  Oh wait, that's right, they already stole it!  Nevermind.

Thu, 05/20/2010 - 15:17 | 363617 sheeple
sheeple's picture

this is getting outta hand, i'm turning off my screen

Thu, 05/20/2010 - 15:20 | 363626 Tyler Durden
Tyler Durden's picture

A reader's impression of the CNBC octobox today

 

Thu, 05/20/2010 - 15:21 | 363631 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Tyler stop!  You are making me want to turn on cnbc!!!

Thu, 05/20/2010 - 15:23 | 363641 Gold...Bitches
Gold...Bitches's picture

That is the funniest thing I have seen in a while. Thank you.

Thu, 05/20/2010 - 15:24 | 363647 faustian bargain
faustian bargain's picture

I'm sitting alone in my empty house laughing out loud. Oh man, thanks for putting a smile on my face.

Thu, 05/20/2010 - 15:32 | 363678 Slewburger
Slewburger's picture

Damn T, lets keep it PC.

Remember its Octomom, and if we can't play nice Cramer will never plug us.

<sarcasm=off>

Thu, 05/20/2010 - 15:32 | 363681 SilverIsKing
SilverIsKing's picture

...and a sense of humor to boot but be careful, someone may construe one of those photos as kiddie porn.  Master Bates???

Funny stuff.  Thanks.

Thu, 05/20/2010 - 15:35 | 363690 carbonmutant
carbonmutant's picture

But they Promised...!

Thu, 05/20/2010 - 16:58 | 363967 etrader
etrader's picture

The last time Simon has that look was when he couldn't make the Berlin love parade....

While Maria doesn't take to kindly not being able to fly citi.....

 

Thu, 05/20/2010 - 15:20 | 363627 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What did BS say when Grayson was birdoggin' him?  "It will only cost tax payers if the loans lose money."  I think that was it.  Demagogical, pompous, self righteous, sadistic/masochistic, son of a!!!...I'll stop there, as I didn't know Ms. Bernanke....but Ms. Bernanke, you did a poor job raisin' that boy!

Thu, 05/20/2010 - 15:21 | 363632 Bruce Krasting
Bruce Krasting's picture

The invisible hand of government is steering the market and there is no disclosure. Do "They" think jerking the fx mkt around in the afternoon is going to bring back confidence?

Not for me it doesn't.

Thu, 05/20/2010 - 15:41 | 363660 hedgeless_horseman
hedgeless_horseman's picture

The U.S. Treasury Department is required by law by every six month to determine whether any country is manipulating its currency to gain an unfair trade advantage.

Obama criticized Bush for failing to label China as a currency manipulator, but so for has decided against doing that himself.

Obama criticized Bush for failing to ________________, but so for has decided against doing that himself.

(close Guantanimo, pull out of Iraq, etc.)

http://www.google.com/url?q=http://s0.ilike.com/play%23Madonna:Papa%2BDon%27t%2BPreach:12532:s46052891.11794669.4434200.0.&ei=t4z1S5OvDorYsgOPmsSIBQ&sa=X&oi=music_play_track&resnum=1&ct=result&cd=2&ved=0CBYQ0wQoADAA&usg=AFQjCNFVf_KEjo2cLneh1s5zzumVxj5W-A

Thu, 05/20/2010 - 16:22 | 363833 monmick
monmick's picture

I regularly play with the coins in my pant pockets. Does that make me a currency manipulator?

Thu, 05/20/2010 - 17:50 | 364102 Cognitive Dissonance
Cognitive Dissonance's picture

At least that's your cover story. What are you really manipulating while your hand's in your pocket?

Thu, 05/20/2010 - 15:43 | 363706 Sancho Ponzi
Sancho Ponzi's picture

They've already succeeded in bankrupting the day traders, as well as pilfering from pension funds and retirement accounts. I reckon pole axing the FX traders is the logical next step.   

Thu, 05/20/2010 - 18:52 | 364304 ratava
ratava's picture

are you sure fx did not jerk because of the blatant stock manipulation?

Thu, 05/20/2010 - 15:21 | 363636 Arkadaba
Arkadaba's picture

And this breaking news headline on Marketwatch just slayed me:

BREAKING

U.S. stocks trim declines as euro recovers

Euro recovers ....

 

Thu, 05/20/2010 - 15:25 | 363653 Hephasteus
Hephasteus's picture

You can't spell recover without OVER.

Thu, 05/20/2010 - 15:33 | 363685 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Implying....

DO over?

or....

ROLL over?

Thu, 05/20/2010 - 15:44 | 363713 Sancho Ponzi
Sancho Ponzi's picture

or fu@#ed over

Thu, 05/20/2010 - 15:52 | 363736 Duesco
Duesco's picture

Translation:

 

Breaking: U.S. stocks trim decline as Fed buys them and every other fucking thing on the planet Earth

Thu, 05/20/2010 - 15:59 | 363755 Arkadaba
Arkadaba's picture

crashing now though - I did not expect this - maybe tomorrow but not in the last few minutes before market close

Thu, 05/20/2010 - 15:25 | 363650 Cheeky Bastard
Cheeky Bastard's picture

I told you so [with Tyler] 2 weeks ago.

No one listened and everyone was yelling about "imminent EUR implosion".

Truth is; i just overstated the entry level, incorrectly calling for 1.25, when 1.23xx was when FX-sw began.

EUR was oversold once it passed 1.2500, and after that it was just a matter of time until a) short covering would start b) FX-sw become fully operational.

 

Thu, 05/20/2010 - 15:29 | 363666 SDRII
SDRII's picture

outstanding call

Thu, 05/20/2010 - 15:33 | 363683 Cheeky Bastard
Cheeky Bastard's picture

look; you can take a piss at me all you want; but facts are facts.

search for the article which was published shortly after EMU members announced the amount of funds to be infused. Also, make sure to read about how secondary market buybacks will be done by the ECB [hint; not with EUR]. 

Thu, 05/20/2010 - 15:42 | 363699 Whizbang
Whizbang's picture

I agree with you, you cheeky bastard.

I called it yesterday. I got killed for it too. Swarmed all over by gold bugs, they bite too. the little bastards.

Thu, 05/20/2010 - 15:42 | 363700 Sudden Debt
Sudden Debt's picture

It's up 1% at a multi billion dollar cost.

The euro still has a lot of downside. I think it will go to 1.17

Reason is because it's trashing european earnings for Q2.

THATS IN 5 WEEKS FROM NOW!!

Europeans do a lot of import in dollar!

This is trashing margins with at least 20%!

Also, there is A MAJOR liquidity problem in the EU for the last 2 weeks.

 

Thu, 05/20/2010 - 16:05 | 363765 Hephasteus
Hephasteus's picture

Who is spreading the rumor there will be earnings in europe Q2. That's the craziest thing I've heard all week.

Fri, 05/21/2010 - 08:27 | 365338 ZeroPower
ZeroPower's picture

IFRS has just as many loopholes as US GAAP. Youll be pleasantly surprised;)

Thu, 05/20/2010 - 16:09 | 363742 SDRII
SDRII's picture

no snark; excellent call. Question now is what next? JPY gdp print is screaming more QE but BOJ is resisting. HH saying risk of hyperinflationary (Rossy out yest with simiilair setuip call) event but every bigger deflationary catalysts needed - japan. Thoughts on what happens assuming EUR stabalization.. 

http://www.marketfolly.com/2010/05/hugh-hendrys-eclectica-fund-sees.html

 

Thu, 05/20/2010 - 16:46 | 363930 Joeman34
Joeman34's picture

CB, great call, right on the $.  But the question is, will we now see a sustained rally?  I think you've said in the past we'll see EUR/BGP/USD parity - with which I agree.  But I'm wondering if we'll see EUR 1.3 before JUN futures expiry?  Your thoughts are much appreciated...

Thu, 05/20/2010 - 17:02 | 363977 Cheeky Bastard
Cheeky Bastard's picture

My opinion [im not a professional] is that the next step is GBP/EUR parity which will happen well above 1.33xx, maybe even north of 1.37xxx. Of course your will see volatility in the process, but it will happen. Once the parity is achieved the market will give equities a nice calm period to breathe and adjust. After that; its basically an open game. But what will trigger the ultimate run down to trilateral parity will be a crisis in the UK; since another EMU situation will only affect achieved parity. In my opinion [strictly based on indicators of debt, redemption's and derivatives market] UK is the next BIG [not Greece big, but BIG] crisis on the horizon. New government, massive QE, unsound fiscal politics etc etc. This will be the mother of currency depreciation [throw in Spain in the Continental Europe [or Portugal, which is the next crisis withing the PIIGS, followed by Ireland]] and you have all the variables of the equation under control. Again, do not take my word for it; it doesn't matter if i was right about this; it was an easy call; predictable. I'm not a pro, but i do spend north of 16 hrs a day/6-7 days a week with my head buried in this.

Thu, 05/20/2010 - 16:00 | 363740 John McCloy
John McCloy's picture

  Where does it end?

How many billions before someone says enough is enough? With the Federal Reserve holding the largest bag in history what happens when the realize they cannot control the entire financial markets of the world and the market crashes along with the value of all the bullshit they have been adding into the american tax payers bag? How do you unwind  a long position of this magnitude?

Will they hold for decades? How dare Congress believe this authority should remain with one man and an unconstitutional authority. We had veterans giving their lives for two centuries protecting this nation from external forces and we have allowed it to be captured internally. Decades of entrepeneurs, risk, hardship, savings and stablity and they have stolen it all and are now beginning to take future decades?

And then the Dems come out with fresh hit pieces of Rand Paul today after his win as the mainstream media began in concert to paint him and the Tea Party as racists again because he does not agree with the Civil Rights Amendment. For the love of God all he is stating is that, "There is no need for a civil right act because the U.S. Constitution provides all the rights of liberty anyone needs". Do you honestly think someone as liberal as Rand Paul is foolish enough to judge people on their color and not actions? That sort of mindset is for cretins and shame on you media and concern yourselves with the extraction of liberty we are seeing on a annual and now daily basis.

The Bill of Rights, Amendments 1 to 10 of the Constitution, protects the individual's rights to liberty from the power of government. The 1st Amendment, for example, says that Congress shall not take away a person' freedoms of religion, speech, press, assembly, and petition. The 4th Amendment protects personal liberty; it guarantees the right of the people to be secure against unwarranted intrusions into their private lives by forbidding “unreasonable searches and seizures” by government officials. The 5th Amendment prohibits the federal government from taking away a person' “life, liberty, or property, without due process of law.” And the 14th Amendment applies the same prohibition against abuses of a person's liberty by state governments.

This is no country I was born in and certainly one I would want to die in.

Thu, 05/20/2010 - 23:03 | 364857 Mitchman
Mitchman's picture

+1.  Bravo.

Thu, 05/20/2010 - 15:35 | 363689 Lucky Guesst
Lucky Guesst's picture

drugs r bad, mmmk.

Thu, 05/20/2010 - 15:42 | 363703 primefool
primefool's picture

Now why would they leave the EUR at such a high level - it would be a gift to the many Asian CBs who are trapped in Euro positions Iam sure they would love to get out of - if there is a bid on the other side. After all over the past 5 years all these CBs moved a lot of their reserves to the Euro from the Dollar. These guys are very long term - so why would they want such a high exposure to a currency that may not even exist in a year or two?

Folks focussing on the futures short positions are missing the big picture - the futures traders are really small potatos - compared to the big real money players - the CBs.

Thu, 05/20/2010 - 15:45 | 363716 Apostate
Apostate's picture

3rd Quarter ends on June 30th. I expect the mass layoffs at public companies to hit afterwards. None of the CEOs will bring out the big guns until then.

I expect IBM will have to take their labor restructuring one further: sending the best engineers to ARAMCO-style campuses overseas.

At least, that's what I would do. Not all CEOs are morons. Only most of them. 

Game Over, USA, Game Over!

Thu, 05/20/2010 - 15:46 | 363718 hambone
hambone's picture

This stuff is killing business - no way my company or others can (will) build product for 6, 9, 12, 15 months out and make any assumptions about oil, currency, deflation, unrest in production countries (Thailand, others).  Business is tucking horns back just like investors.  Double, triple dip on the way.

Thu, 05/20/2010 - 15:46 | 363720 Leo Kolivakis
Leo Kolivakis's picture

Do speculators tell the US Treasury when they're shorting the euro? Disclosure is nice & all, but this is trench warfare. You got to cut off those big hedge fund balls when they least expect it. Go Bubble Ben and Tongue Twister Trichet!

Thu, 05/20/2010 - 15:46 | 363721 ConfederateH
ConfederateH's picture

Funny how we never hear about China intervening.  Theoretically, since the Renimbi is pegged to the dollar and the EU is their biggest importer, they should be the ones buying Euro's.  Hell, they could even decrease their dollar/treasury holdings by selling dollars and buying euro's...

Thu, 05/20/2010 - 19:30 | 364391 Kali
Kali's picture

Excellent question, have heard nothing about that, or what the Russians think about all this. 

Thu, 05/20/2010 - 15:49 | 363729 hambone
hambone's picture

Should we expect a big eod sell off as 200dma is breached and mutuals run for hills?

Thu, 05/20/2010 - 15:51 | 363734 hambone
hambone's picture

Look for the flash to 1066 at close?

Thu, 05/20/2010 - 16:31 | 363877 Rusty_Shackleford
Rusty_Shackleford's picture

Good call.

Thu, 05/20/2010 - 15:53 | 363739 Abundance
Abundance's picture

Martial Law coming. Don't let your loved ones be caught off guard by the financial collapse.

Thu, 05/20/2010 - 15:56 | 363750 SDRII
SDRII's picture

The U.S. said it will sell $113 billion of notes next week, $5 billion less of the maturities than it auctioned last month

Thu, 05/20/2010 - 16:13 | 363783 MaxVernon
MaxVernon's picture

Since the FX is totally unstable, I'm moving all my investments to my local bookie. At least there I know the house rake.

Thu, 05/20/2010 - 16:22 | 363827 economessed
economessed's picture

<deleted>

Thu, 05/20/2010 - 16:35 | 363889 Rusty_Shackleford
Rusty_Shackleford's picture

Complete and utter lawlessness on all levels.

 

The middle simply will not hold.

 

Started re-reading my dog-eared copy of Patriots again a few days ago. 
I'd advise all in the know to do the same.

Thu, 05/20/2010 - 17:01 | 363981 SWRichmond
SWRichmond's picture

The middle simply will not hold.

That die was cast a long time ago.  Most recently, when Bernanke decided he could take the entire world economy in his hands and hold it securely, being lender, buyer and guarantor of last resort, to the tune of $23.7 Trillion; an act of calculated insanity.  Of course it can't work, and of course the act of trying is insane.  There are people who believe he is smart, though I can't imagine why.  I maintain my pace of political activity, but I am looking over my shoulder more and more.

Thu, 05/20/2010 - 16:39 | 363907 crzyhun
crzyhun's picture

You all know what this is about, don't you? It is about debt a mile long, wide and deep. All this static about this that and the other thing is fine, and does not address the issue. DEBT = The world has a debt wish! Whether Greece or here, there or anywhere, we are awash in it. I repeat myself, sorry.

Until you/we/thee address the why of this, the what and how is BS. Euro/socialand including UK and soon here, will look more and more like the breadlines in USSR et.al. in 50's. Yesss coming to a mall near you. With debt there is little to do. RIOT, yah right! Grow! Go try it. Inflate, I don't buy it. Deflate, pass by it. Tax, look at 80%, shred it.

Debt is the question, my readers. How to end it?

Thu, 05/20/2010 - 17:37 | 364049 doggings
doggings's picture

Ive had CNBC  on all day today too, its funny as fuck watching them trying to be positive when its all going wrong (ie down badly) and lmao at those pics, Tyler, you da man.

 

Thu, 05/20/2010 - 19:15 | 364362 Tart
Tart's picture

A fine example why zerohedge is a financial tabloid.

"Well, what are they gonna say: "We used US taxpayer money (thank you Ben Bernanke FX swaps) to prop up the European currency and kill the dollar." mmmk. "

Thu, 05/20/2010 - 19:25 | 364382 Cheeky Bastard
Cheeky Bastard's picture

Dont be angry young Harvard Law/U. of Washington Political Science Kansas Fed/Treasury staffer. All will work out for you; the only thing you need to do is go to Barney Franks/Christina Romer office and suck cock. You'll see; if Timmy could have made it to where he is now; anyone can. 

Thu, 05/20/2010 - 19:59 | 364455 BlackBeard
BlackBeard's picture

Timmay: *Slurp* Barneeeee!!!! you ate your asparagus today!!!!

Thu, 05/20/2010 - 20:18 | 364495 ambrosiac
ambrosiac's picture

 

 

Let's play some music to this

 

http://www.youtube.com/watch?v=LKb9XQ39-zc

 

"Games Without Frontiers"

 

Peter Gabriel

 

[ Jeux sans frontieres   Jeux sans frontieres ]

Hans plays with Lotte, Lotte plays with Jane
Jane plays with Willi, Willi is happy again
Suki plays with Leo, Sacha plays with Britt
Adolf builds a bonfire, Enrico plays with it
-Whistling tunes we hid in the dunes by the seaside
-Whistling tunes we're pissing on coons in the jungle
It's a knockout
If looks could kill, they probably will
In games without frontiers-war without tears
Games without frontiers-war without tears

Jeux sans frontieres

Andre has a red flag, Chiang Ching's is blue
They all have hills to fly them on except for Lin Tai Yu
Dressing up in costumes, playing silly games
Hiding out in tree-tops shouting out rude names
-Whistling tunes we hide in the dunes by the seaside
-Whistling tunes we're kissing baboons in the jungle
It's a knockout
If looks could kill they probably will
In games without frontiers-wars without tears
If looks could kill they probably will
In games without frontiers-war without tears
Games without frontiers-war without tears

Jeux sans frontieres

 

Thu, 05/20/2010 - 20:39 | 364516 Buck Johnson
Buck Johnson's picture

I agree, the Treasury doesn't want to talk about it and the congress won't talk about it either.  We essentially bailed out the ECB's and it still isn't a cure all for everything.  American people would say what the heck are we doing bailing out other countries when they can't even bailout regular citizens.  Also I have a link to the CNBC on Maria Bartiromo's Closing Bell and you posters who pointed it out is correct.  When Sharon Epperson started to talk about how traders are still trying to figure what was the cause Maria jumped down her throat and said she was incorrect, essentially saying that Sharon Epperson facts are wrong and her reporting is wrong.  Rick Santelli chimed in and I think said something to the effect that it was "person error" (he knows that whatever reasons they have thrown out about some fund in arkansas being the culprit is idiocy).  The job now for the MSM is to portray and think happy thoughts and good tidings and always always positive market news.

I'm surprised that they didn't remove that from the website, bet they will from the archive when tomorrow gets here.

 

http://www.cnbc.com/id/15840232?video=1499488332&play=1

Fri, 05/21/2010 - 00:00 | 364949 Rabelais
Rabelais's picture

All one has to do, to realize where we are going in terms of the rights of individuals, is to watch the behavior of the characters in law enforcement on today's television shows.  Would not be the first time that the media spoke for more government control, and less respect for its constituents.  Looks like someone got to Maria today as well.

Fri, 05/21/2010 - 00:16 | 364985 Grand Supercycle
Grand Supercycle's picture

 

For several days I warned of EURUSD buying support as detected by my indicators - and this has been confirmed by the recent Euro break out.

The proprietary indicators I use can identify trend changes before they occur.

http://stockmarket618.wordpress.com

http://www.zerohedge.com/forum/latest-market-outlook-1

Tue, 03/29/2011 - 01:50 | 1111748 fiona
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