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USDJPY Goes Bidless

Tyler Durden's picture


One can only watch this devastation with horror. USDJPY drops to 76. Unbelievable. Many Wall Street FX desks are blowing up right at this moment.



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Wed, 03/16/2011 - 17:21 | 1063201 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

so it's yen to infinity and the dollar gets the big blue swirly.  Does that mean gold catches a better bid?

Wed, 03/16/2011 - 17:20 | 1063244 sunny
sunny's picture

yes as in YES!!!


Wed, 03/16/2011 - 17:26 | 1063295 LowProfile
LowProfile's picture

Actually just the opposite.

Short/medium turn, expect PM weakness.

And don't get all pissy about this, it's probably the last best buying opportunity.

Wed, 03/16/2011 - 17:29 | 1063322 Raymond K Hassel
Raymond K Hassel's picture

I don't get pissy about anything from yahoo finance.

Wed, 03/16/2011 - 17:35 | 1063376 ColonelCooper
ColonelCooper's picture


Wed, 03/16/2011 - 17:42 | 1063406 LowProfile
LowProfile's picture

Oh, I'm sorry.  I didn't realize the source wasn't up to your standards.

Does this make it more acceptable?


Wed, 03/16/2011 - 17:45 | 1063426 ColonelCooper
ColonelCooper's picture

Come on, it WAS funny.

Wed, 03/16/2011 - 17:53 | 1063470 d00daa
d00daa's picture

If you take some time, carefully clean the sand out of that cavernous vagina of yours, you just might, possibly,  find your long lost sense of humor.  Maybe.

Wed, 03/16/2011 - 17:55 | 1063486 ColonelCooper
ColonelCooper's picture

Now that's really funny.

Wed, 03/16/2011 - 18:24 | 1063669 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

alright you all. Group hug.

Wed, 03/16/2011 - 18:33 | 1063721 10kby2k
10kby2k's picture

78.14 right now

Wed, 03/16/2011 - 18:51 | 1063831 chumbawamba
Wed, 03/16/2011 - 18:52 | 1063837 chumbawamba
chumbawamba's picture

Oh shit, I didn't realize how punny this is until after I posted it.

I amuse myself.

I am Chumbawamba.

Wed, 03/16/2011 - 19:00 | 1063874 Fish Gone Bad
Fish Gone Bad's picture


Wed, 03/16/2011 - 18:55 | 1063842 LowProfile
LowProfile's picture

Laugh it up.

Hope you planned ahead.

Wed, 03/16/2011 - 20:19 | 1064165 I only kill chi...
I only kill chickens and wheat's picture

Howdy Col. I've disagreed with some your stuff, but what's with all

the junking. Obviously things are too intense for some people to handle.

Wed, 03/16/2011 - 19:56 | 1064085 let-them-eat-cake
let-them-eat-cake's picture

The junks you got will be out of pocket right about now and for the next week or so.

Wed, 03/16/2011 - 17:22 | 1063251 Yancey Ward
Yancey Ward's picture

"Would you say it's time for our viewers to crack each other's heads open and feast on the goo inside?"

Wed, 03/16/2011 - 17:25 | 1063283 morph
morph's picture

Yes I would kent.

Wed, 03/16/2011 - 17:26 | 1063298 Yancey Ward
Yancey Ward's picture

The Simpsons comfort me in times of zombie apocalypse.

Wed, 03/16/2011 - 17:34 | 1063351 Id fight Gandhi
Id fight Gandhi's picture

Me too

Controlled Nuclear fission is a demanding mistress.

Wed, 03/16/2011 - 17:53 | 1063475 eatthebanksters
eatthebanksters's picture

Mistresses by nature are out of control...

Wed, 03/16/2011 - 17:32 | 1063355 homersimpson
homersimpson's picture

I offer you a half eaten donut and thank you for your support for all my years at the Nuclear Power Plant. I didn't know so many people wanted to see me in action for so long.

Wed, 03/16/2011 - 17:45 | 1063429 10kby2k
10kby2k's picture

no disrespect homer, but i'm a southpark guy

Wed, 03/16/2011 - 18:58 | 1063860 homersimpson
homersimpson's picture

That wasn't Duff beer I just saw you drink..

Wed, 03/16/2011 - 17:58 | 1063512 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Stoopid drinking bird!!!

Thu, 03/17/2011 - 03:31 | 1065638 kita27
kita27's picture

"MELTDOWN is one of those fearful media terms, id like to call it an unrequested fission surplus"

Wed, 03/16/2011 - 17:37 | 1063382 djrichard
djrichard's picture

I think that's actually happening in Bahrain.

Wed, 03/16/2011 - 17:52 | 1063463 Confucious 222
Confucious 222's picture

Only if you came in to this debacle short the Yen.

If you came in short the yen against the dollar with both leverage and size, you have become goo already, yes indeedy.

Wed, 03/16/2011 - 18:20 | 1063657 Lets_Eat_Ben
Lets_Eat_Ben's picture

"Dig up stupid"

Wed, 03/16/2011 - 18:26 | 1063672 Lets_Eat_Ben
Lets_Eat_Ben's picture

Yes We Can

Wed, 03/16/2011 - 17:24 | 1063253 whatsinaname
whatsinaname's picture

I dont give a rats a... about what happens to the Japanese stock market, but a strong Yen ought to be in Japan's long term interest as it will minimize their re-construction costs and even if they see a reduction in export related jobs, they should hopefully see jobs in re-construction. Of course since when did CB's care about a country's LT interests ?

Of course, we continue to bear the brunt of meany beany's mild inflation babble in the US !!

Wed, 03/16/2011 - 17:58 | 1063496 machineh
machineh's picture

A strong yen will make energy and cement imports cheaper, but as a major manufacturing nation, Japan can source much of its rebuilding supplies domestically. But the strong yen is like a death ray to exporters. How can Japanese auto manufacturers compete, with the yen at 77 to the dollar? It's a horror show for them and many other exporters.

It seems perverse, that a country which was already deflationary is getting a further unwelcome deflationary jolt via out-of-control currency appreciation. This is the exact opposite of 'inflating your debts away.' Now the debt burden of the world's most indebted country is becoming heavier in real terms, just as it prepares to go on an epic deficit spending spree. No wonder default swaps on Japanese sovereign debt are reflecting higher risk.

The San Francisco earthquake in 1906 proved to be quite deflationary, leading to the Panic of 1907 (which in turn provided the impetus to create the Federal Reserve). One could imagine a similar deflationary impulse in Japan ... but followed by such reckless money printing and deficit spending that it pops interest rates and puts debt service on an exponential path to default, whether the Bank of Japan tries to inflate its way out or not.

It's horrible to contemplate that this natural disaster could be the tipping point which produces the first sovereign debt crisis in a major developed economy. 


Wed, 03/16/2011 - 18:13 | 1063616 Amish Hacker
Amish Hacker's picture

Well put. Imagine becoming the world's third largest economy, even though you had to import most of your energy and raw material inputs. Then an earthquake-tsunami-nuke disaster happens, and the only policy that will let you rebuild (strong yen) will destroy your exporters. This whole mess is starting to have the feel of an unstoppable force meeting an immoveable object.

Wed, 03/16/2011 - 19:41 | 1064013 zebra
zebra's picture

is it possible that Japan is at a survival mode that cannot think about exporting at all? all they have to think is to rebuild their infrastructure first. therefore, currency exchange rate will be in their favor if JPY is higher. and that will kill the Nikkie for sure.

Wed, 03/16/2011 - 17:29 | 1063331 camaro68ss
camaro68ss's picture

holy fuck man, is this it? Are we in the SHTF moad

Wed, 03/16/2011 - 17:40 | 1063402 dwdollar
dwdollar's picture

Not quite yet.  We need at least one more straw for SHTF territory.  Preferably a black swan event here in the US.

Wed, 03/16/2011 - 19:15 | 1063928 TemporalFlashback
TemporalFlashback's picture

Didn't mean to junk your comment. Apologies.

Wed, 03/16/2011 - 20:22 | 1064175 reading
reading's picture

Just an fyi, you can un-junk by clicking on it again...just in case you go on a junk rampage or your mouse goes wild.

Wed, 03/16/2011 - 17:41 | 1063405 malikai
malikai's picture

I'm afraid it may be here.

Wed, 03/16/2011 - 18:44 | 1063794 scratch_and_sniff
scratch_and_sniff's picture


Wed, 03/16/2011 - 19:07 | 1063896 strannick
strannick's picture

you mean silver

Wed, 03/16/2011 - 18:47 | 1063798 scratch_and_sniff
scratch_and_sniff's picture

...dont forget your beans.

Wed, 03/16/2011 - 17:39 | 1063391 IQ 145
IQ 145's picture


Wed, 03/16/2011 - 17:17 | 1063202 papaswamp
papaswamp's picture

Someone just stepped in and is defending at the very least 78..maybe 78.20...and they are loosing.

Thu, 03/17/2011 - 07:27 | 1065828 Iam_Silverman
Iam_Silverman's picture

"defending at the very least 78"


Wed, 03/16/2011 - 17:16 | 1063203 Boilermaker
Boilermaker's picture

LOL...not unbelievable at all.

Wed, 03/16/2011 - 17:17 | 1063212 John McCloy
John McCloy's picture

Tell us again Tim that Japan will not sell their treasuries.

Wed, 03/16/2011 - 17:27 | 1063294 Dr. No
Dr. No's picture

edit; read the chart wrong.  huh?

Wed, 03/16/2011 - 17:30 | 1063338 Cleanclog
Cleanclog's picture

If BOJ buys JGBs (and sells USTs), where will we see our interest rates tomorrow?  Is FED complicit?

Wed, 03/16/2011 - 17:55 | 1063482 EscapeKey
EscapeKey's picture

Not if they still wish to enjoy the US Army's protection vs a Chinese invasion.

Wed, 03/16/2011 - 18:35 | 1063750 False Capital
False Capital's picture

If by "protection" you mean mafia-style, then, yes.

Wed, 03/16/2011 - 18:43 | 1063781 EscapeKey
EscapeKey's picture

Oh, absolutely, it's a complete racket, but better the devil you know.

Thu, 03/17/2011 - 00:56 | 1065436 Harlequin001
Harlequin001's picture

and like the US can afford to give up on Japan?

'fraid the US is over a barrel on this one. It will take whatever Japan chooses to give it without question at the taxpayers expense...

Only one country is screwed by US debt and that is the US.

Looks like the US will take out its debt ceiling sooner than we thought...

Stand by for some explosive money creation...

Wed, 03/16/2011 - 17:17 | 1063215 monkeyfaction
monkeyfaction's picture

Jesus. There are going to be a few margin calls tonight.

Wed, 03/16/2011 - 17:23 | 1063255 mberry8870
mberry8870's picture

EXACTLY!!!! We have unprecedented money printing causing further malinvestment and we have at minimum some liquidity problems.

Wed, 03/16/2011 - 17:39 | 1063392 Cleanclog
Cleanclog's picture

European desks screwed if best traders are asleep. Granted most books move 24/day.

Oh, phone calls waking those traders up right now as G-7 calls for a conference call among the finance ministers tonight. Something major afoot - and I don't just mean our military people being sent into radiation's way in Japan.  Since when do we do that?  They know more (or are willing to take those risks to find out more) and suspect things are much worse at the reactors and of threat to US and US interests.  Just saying.

Wed, 03/16/2011 - 17:56 | 1063491 EscapeKey
EscapeKey's picture

There's no way Euro traders didn't spend half their day yesterday hedging Japanese exposure.

Of course, they would have hedged the exposure with eachother (and American banks), so they - and we - are still fucked.

Wed, 03/16/2011 - 17:20 | 1063224 papaswamp
papaswamp's picture

looks like we are headed into 76 territory...bam blowing right through. Are we witnessing live FX desk the collapse of a country?

Wed, 03/16/2011 - 17:27 | 1063311 whatsinaname
whatsinaname's picture

WRONG. It may collapse the bankers, insurers and the fx traders but it will help their economy.

Wed, 03/16/2011 - 17:30 | 1063340 dbach
dbach's picture

without any historical precedent to help, it will be interesting to see at what number the buyers decide to step in for a long term bottom. I don't think we're near it yet, but who knows really? its a competition of fiats so pricing is tough. PPP is in the 90s though, I think, so the Yen has been rich for a while by that measure.

Wed, 03/16/2011 - 17:21 | 1063231 asdasmos
asdasmos's picture

Very concerning

Wed, 03/16/2011 - 17:22 | 1063265 mberry8870
mberry8870's picture

nicely understated

Wed, 03/16/2011 - 17:31 | 1063344 asdasmos
asdasmos's picture

This is without it being one of the worst possible outcomes (so far) ..... if it leads to a critical meltdown then I would very alarmed.


No need to panic. Just act swiftly and prudently.

Wed, 03/16/2011 - 17:21 | 1063234 Ben Probanke
Ben Probanke's picture

dollar swiss below 0.90

Wed, 03/16/2011 - 17:45 | 1063431 IQ 145
IQ 145's picture

 making good money on my June EUR/USD short; that I described here. The Treasury Bond Contract I reccommended yesterday is about $1000/contract out of the money; short it right here if you didn't already; give it another 1/2 point to run before you bag it; these flights to quality don't last long, and the underlying is bearish.

Wed, 03/16/2011 - 17:51 | 1063455 Freebird
Freebird's picture

Clears throat heard the 89 handle here first.... ( only the finest Cubans thank you )

Wed, 03/16/2011 - 20:37 | 1064234 Ahmeexnal
Ahmeexnal's picture

Cuban ladies. Fine indeed.

Wed, 03/16/2011 - 17:21 | 1063235 John McCloy
John McCloy's picture

Hope Ben has an unlimited texting plan on his BlackBerry.

Wed, 03/16/2011 - 17:27 | 1063303 faustian bargain
faustian bargain's picture

that's a golf clap and chuckle right there.

Wed, 03/16/2011 - 19:11 | 1063913 strannick
strannick's picture

All Ben's planning is based on 'unlimited

Wed, 03/16/2011 - 17:21 | 1063242 misterc
misterc's picture

I'm not exactly getting it.

Japan is wasted, they will need to rebuild. Therefore, they will sell various assets, including US treasuries. THe Bank of Japan will print a lot to stabilize domestic markets.

Then why does the USDJPY go bidless? What is the market pricing in that I cannot see?

Wed, 03/16/2011 - 17:23 | 1063262 InconvenientCou...
InconvenientCounterParty's picture


Wed, 03/16/2011 - 17:27 | 1063304 sdmjake
sdmjake's picture


Wed, 03/16/2011 - 18:07 | 1063557 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

ouch...pulls out clump of hair with relative ease.

Wed, 03/16/2011 - 19:25 | 1063957 e_goldstein
e_goldstein's picture

i just spit my teeth out all over my keyboard because of your comment.

Wed, 03/16/2011 - 17:23 | 1063279 John McCloy
John McCloy's picture

Default is what is being priced in. The dollar is still king and after having 2 years now of dollar destruction eventually Ben will need to tighten either to tame commodities or metals. 

Wed, 03/16/2011 - 17:31 | 1063335 misterc
misterc's picture

Whose default? Excuse my stupidity, but why should Japan default when they are selling assets? 

Wed, 03/16/2011 - 17:41 | 1063407 John McCloy
John McCloy's picture

    Maybe I am stupid. My guess is that this is a result of eventual expectations that the Japanese will need to sell treasuries and this will mean not only are they not participating but selling so eventually Bernanke will have to tighten to attract bidders.

Japan is already well over their heads in debt and if they cannot raise the cash by selling treasuries they will have to print to repay debt which I believe will lead to a stronger dollar.Maybe Japan will have to restructure and haircuts will be necessary. We have to be talking over a trillion in damage not counting financial damages if Tokyo has to be evacuated. 

Wed, 03/16/2011 - 18:54 | 1063844 JLee2027
JLee2027's picture

A Japan debt default could start a cascade of defaults.

This indeed, may be it.

Wed, 03/16/2011 - 18:59 | 1063868 Al Gorerhythm
Al Gorerhythm's picture

And if Japan sells treasuries, then China sells treasuries as well, followed by the oil exporters and the Cayman Islands..................... Well I suppose there's always Britain as buyer of last resort.

Thu, 03/17/2011 - 07:33 | 1065846 Iam_Silverman
Iam_Silverman's picture

"Well I suppose there's always Britain as buyer of last resort."

Providing we (the FRB) loan them the money to buy UST's with......

Wed, 03/16/2011 - 17:35 | 1063356 macholatte
macholatte's picture

Maybe it goes like this:

When there's a crisis, people, and institutions, liquidate assets to build their supply of local currency. You can't take diamonds and gold coins to the supermarket (not yet anyway). The local currency is what is accepted.  In this case, everybody is dumping assets and reaching for Jap Yen causing a huge demand for that currency. It's panic buying and will fade into the sunset in a week or so.

Closing the markets, putting the brakes on, intervention by Bof J and global central banks is all quite appropriate to stop a financial meltdown. Of course, all that takes place AFTER the elites have vacated the premisies.

IMHO. That's all.


Thu, 03/17/2011 - 07:42 | 1065854 Iam_Silverman
Iam_Silverman's picture

"In this case, everybody is dumping assets and reaching for Jap Yen causing a huge demand for that currency."

Sorry about the stupid question - but I am clueless when it comes to FX.  What you are describing is an internal demand, not external (foreign), so it seems to me what would happen is that the sale of assets would be deflationary as the supply of Yen becomes exhausted locally.  What I thought those FX charts were showing that there was little to none (OK, none actually) demand from holders of USD to purchase JPY.

Wed, 03/16/2011 - 19:14 | 1063923 Oracle of Kypseli
Oracle of Kypseli's picture


At the moment they are repatriating yen. That means that they are buying Yen with dollars, euro, Austr/dollars, NZ/dollars etc. that strengthens the Yen. At the same time they are digitally printing additional yen.

However, Bernanke's digitizer is faster and therefore, they can not devalue as fast.

Expect Gold and Silver to bounce to the moon after the stock downward trend is done.

Unless of course we have total market melt down. 5% chance for the foreseeable future.

Wed, 03/16/2011 - 17:29 | 1063254 monmick
monmick's picture

If this continues, it will kill the Japanese tourism industry.... err... never mind...

Wed, 03/16/2011 - 19:25 | 1063966 e_goldstein
e_goldstein's picture

but on the bright side, all of the hollywood starlets will positively glow...

wait for it...

in the dark!

Wed, 03/16/2011 - 17:21 | 1063257 homersimpson
homersimpson's picture

Sorry to repeat this, but I will admit I'm not a currency expert:

If the Yen drops against the Banana Ben Buck, does this mean the Nikkei index goes up? After all, whenever the dollar dropped, the US stock markets shot up. Therefore, shouldn't Japan's gov't be happy about this?

Wed, 03/16/2011 - 17:22 | 1063271 Infinite QE
Infinite QE's picture

May mean that they are dumping all foreign assets they have and pulling that money back home.

Wed, 03/16/2011 - 17:25 | 1063300 fuu
fuu's picture

As i see it the Yen is climbing vs the dollar. That is the problem. Up until Friday Japan wanted you to get more yen for each dollar. Now you are getting fewer yen per dollar.


In that context the Nikkei should be just about dead right now.


Not that I am forex trader/expert/nor did i stay at a holiday Inn Express last night.

Wed, 03/16/2011 - 17:27 | 1063310 homersimpson
homersimpson's picture

whoops.. some folks have told me I'm backward.. sorry about that (and thanks for informing me).. doh!

Wed, 03/16/2011 - 17:34 | 1063357 SilverIsKing
SilverIsKing's picture

Assets are being sold as Yen are in high demand by those who need to pay for things in Yen. Treasuries are just one of the assets being sold.  PM's may be another but that will surely be temporary.  This high demand for Yen will strengthen the Yen and if, I understand it correctly, could lead to a bank holiday.

Wed, 03/16/2011 - 17:45 | 1063437 Monetary Lapse ...
Monetary Lapse of Reason's picture

My understanding is that store shelves are empty all around Japan.. velocity of money has gone ballistic.

Wed, 03/16/2011 - 17:51 | 1063367 dbach
dbach's picture

The BOJ wants a weaker YEN to help their exporters, which is something Benny has been going for as well. In the short run for Japan though, a stronger Yen should help them with their imports over the coming months.

Also honest questions are better than Harry Wangers (tho Harry's good for a laugh) so no need to apologize

Wed, 03/16/2011 - 20:41 | 1064256 reading
reading's picture

They are an export economy (well they import a lot too, but they actually make and sell things unlike us) so their currency appreciated is very costly for them.

Wed, 03/16/2011 - 17:22 | 1063259 sudzee
sudzee's picture


Wed, 03/16/2011 - 17:22 | 1063260 Infinite QE
Infinite QE's picture

Looks like Robot's love life!

Wed, 03/16/2011 - 17:23 | 1063263 silvertrain
silvertrain's picture

 And now they tell us this shit,

Wed, 03/16/2011 - 17:24 | 1063266 LMAO
LMAO's picture

Shocking really

Waiting on BOJ intervention in 3,2,1.....


Wed, 03/16/2011 - 18:11 | 1063560 djrichard
djrichard's picture

BOJ could have easily stepped in and injected more Yen for low-risk assets.  Maybe all that's left to sell is higher-risk assets and the BOJ doesn't want any?

Other than that, it makes me wonder if the BOJ simply wants to see some volatility like this to bring down players that are exposed.  [Edit: to increase the supply of dead bodies for the rest of the wolves to feed on.  A liquidity pump merely staves off starvation.  A dead body provides actual nourishment.]

Wed, 03/16/2011 - 17:22 | 1063268 sulfur
sulfur's picture

dukascopy trading feed starts and stops every few meltdown

Wed, 03/16/2011 - 17:25 | 1063269 papaswamp
papaswamp's picture

I'm getting a drink and more popcorn...

Wed, 03/16/2011 - 17:24 | 1063273 Confucious 222
Confucious 222's picture

How about that 76 handle???

Wed, 03/16/2011 - 17:24 | 1063275 Jim in MN
Jim in MN's picture

This is streaming, screaming headline news on the Japanese TVs.  Maybe the housewives are reeling in their positions? 

Wed, 03/16/2011 - 17:23 | 1063277 Wakanda
Wakanda's picture

I felt a lot like this in 1964 when JFK was murdered, and again on 9/11/2001.

Zeitgeist = time ghost or spirit of the age

Welcome to a "new" age ushered in by a radioactive/financial meltdown.

Prayers for Japan and the Japanese.

Wed, 03/16/2011 - 17:42 | 1063410 Bam_Man
Bam_Man's picture

I felt a lot like this in 1964 when JFK was murdered

I felt a lot like this when I heard the Germans had bombed Pearl Harbor.

Wed, 03/16/2011 - 17:50 | 1063450 IQ 145
IQ 145's picture

 The Germans bombed Pearl Harbor? darn, no wonder everyone is so upset; I didn't even know.

Wed, 03/16/2011 - 18:18 | 1063644 nope-1004
nope-1004's picture

Umm.... Mr. IQ.

Ummm..... JFK was shot in 1963.  Git the joke?

Wed, 03/16/2011 - 17:52 | 1063459 Pool Shark
Pool Shark's picture


"Forget it; he's on a roll..."


(btw, don't junk him; just point and laugh...)

Wed, 03/16/2011 - 20:08 | 1064126 samsara
samsara's picture

You know you can click on the EDIT button and correct that little mistake if you want to.  

Or not.

Wed, 03/16/2011 - 17:23 | 1063278 AGoldhamster
AGoldhamster's picture

usdchf dropping  too ... like a rock

Wed, 03/16/2011 - 17:24 | 1063280 ReallySparky
ReallySparky's picture

And 2 years from now no one will watch the congressional hearings on the derivatives that blew up the world.  Most americans will not be able to afford cable or their next meal.

Wed, 03/16/2011 - 17:38 | 1063398 Lord Welligton
Lord Welligton's picture

Most Americans won't understand what happened. Actually most of the people on the planet won't understand what happened.

I'm long xtranormal.


Wed, 03/16/2011 - 17:57 | 1063508 ReallySparky
ReallySparky's picture


Wed, 03/16/2011 - 18:09 | 1063586 eatthebanksters
eatthebanksters's picture

If this shit really causes the end of the world as we know it, well then, I will go hunting for the highly intelligent yellow bellied bankster.  When the world ceases to have law and, that's already happened here in the good ol' US of A...

Wed, 03/16/2011 - 18:19 | 1063642 Lord Welligton
Lord Welligton's picture

I'd say there will be law and order. Just not as we know it.

After that. The deluge.

All depends on how Japanese society responds to this. Assuming the worst at Fukushima.

Having said that the derivates market will be chaotic.

The whole reason for QE1 QE2 was to stop an unravelling.

Not sure the Bernake can stop that now.


Wed, 03/16/2011 - 19:29 | 1063981 justtotaketheedgeoff
justtotaketheedgeoff's picture

Weasel. The other yellow meat.

Wed, 03/16/2011 - 17:25 | 1063292 Fredd00
Fredd00's picture

Buy the fucking dip!

Wed, 03/16/2011 - 17:24 | 1063293 sudzee
sudzee's picture

Here we go again, low was 76.40.

Wed, 03/16/2011 - 17:26 | 1063297 matthylland
matthylland's picture

Wow...put an order in to buy USD just for shits as it crossed the time i typed it in and hit send it was 77.50.


Pure gamble on a very small order...but my god, I didn't even care I was down 50 pips in 2 seconds I was in awe.....amazing

Wed, 03/16/2011 - 17:31 | 1063347 hedgeless_horseman
hedgeless_horseman's picture

You are fucking nuts to trade this.  Levered?

Wed, 03/16/2011 - 17:44 | 1063418 ZeroPower
ZeroPower's picture

Id guess 50:1..


Wed, 03/16/2011 - 19:16 | 1063935 matthylland
matthylland's picture

yes. haha


out with 84 pip gain....don't have the balls to hang onto that when I can't watch i guess hopefully that shows I'm not clinically insane at least.


Going to be an interesting night!

Wed, 03/16/2011 - 17:25 | 1063299 Quinvarius
Quinvarius's picture

I guess people would rather have radioactive money than dollars.

Wed, 03/16/2011 - 17:26 | 1063305 MGA_1
MGA_1's picture

I don't get this - this is deflation for Japan, right ?  The USDJPY should go the other way if they were have an currency crisis.

Wed, 03/16/2011 - 17:27 | 1063316 redpill
redpill's picture

BBC business reporter Mark Gregory says: "You would expect the currency of a country in crisis to fall in value. But the opposite has happened in Japan. During trading on Wednesday, a dollar was briefly worth less than 80 yen for the first time in 16 years. It is driven by the belief that Japanese firms will need to repatriate some of their vast overseas holdings to pay for reconstruction. This would mean swapping other currencies for yen, pushing the yen higher. This is bad news, though, for Japanese exporters. A high yen means their goods become less competitive in foreign markets just as they are reeling from the impact of an earthquake, a tsunami and a nuclear emergency. A similar rise in the yen took place after the Kobe earthquake in 1995. Indeed, that was the last time the Japanese currency was valued near the current level."

Wed, 03/16/2011 - 17:37 | 1063389 TomJoad
TomJoad's picture

THEY are not having a currency crisis, WE ARE!

Wed, 03/16/2011 - 18:22 | 1063655 fredquimby
fredquimby's picture

Yes Sir. Look at CHF to USD

Down below 0.90

Summats afoot for sure

Wed, 03/16/2011 - 17:39 | 1063400 SilverIsKing
SilverIsKing's picture

The play here then is to go long USDJPY right about now.  I think I'm going to take a dip in that pool.

Wed, 03/16/2011 - 17:45 | 1063440 ZeroPower
ZeroPower's picture

Yes. Am waiting to see how the nuclear thing pans out, and i dont typically touch FX, but i will be looking to gain exposure one way or another to a long USDJPY play.

Wed, 03/16/2011 - 17:28 | 1063312 Tail Dogging The Wag
Tail Dogging The Wag's picture

1 CHF = 1.11736 USD

1 USD = 0.894965 CHF


Wed, 03/16/2011 - 17:27 | 1063314 PicassoInActions
PicassoInActions's picture

BOJ will be around 6.20

they won't touch right now

Wed, 03/16/2011 - 17:28 | 1063315 Quinvarius
Quinvarius's picture

Bank run in Japan as everyone leaves the country IMO.

Wed, 03/16/2011 - 17:31 | 1063328 redpill
redpill's picture

Agreed.  As rumors of potential market closure there become widespread there will be a rush to cash.

The problem is that the Yen is one of the three legs of the wobbly table that is the global currency market.  If it crumbles, the global financial ramficiations will be substantial.

Wed, 03/16/2011 - 17:34 | 1063358 Wakanda
Wakanda's picture


Wed, 03/16/2011 - 17:42 | 1063409 Lord Welligton
Lord Welligton's picture


Wed, 03/16/2011 - 17:55 | 1063476 IQ 145
IQ 145's picture

 sounds right.

Wed, 03/16/2011 - 17:56 | 1063483 silvertrain
silvertrain's picture

 make it a hat trick +++1

Wed, 03/16/2011 - 17:56 | 1063495 Pool Shark
Pool Shark's picture


Nah, we'll just restart the Yen carry trade.


Lather, rinse, repeat...


[Sarcasm off]


Wed, 03/16/2011 - 18:38 | 1063763 saulysw
saulysw's picture

Yes. This simple explanation makes a lot of sense. Capital flight.

Volatility is going to go crazy, as various bits of the global financial machine seize up.

Wed, 03/16/2011 - 17:29 | 1063323 Jim in MN
Jim in MN's picture

Really wonder if its institutions or households getting their cash in hand here.  Japan unhooking from global capital?

Wed, 03/16/2011 - 17:30 | 1063326 PicassoInActions
PicassoInActions's picture

Last time it cost 33 billion for BOJ to intervene for 200+ points ( i lost a lot that time)

This time they will need to move at least 400-500 pips. Wander how much will take.

Wed, 03/16/2011 - 18:03 | 1063541 Debtless
Debtless's picture

I'm sorry Dave. I can't let you do that.

Wed, 03/16/2011 - 19:03 | 1063881 JLee2027
JLee2027's picture

What's the problem Hal?

Wed, 03/16/2011 - 17:29 | 1063330 Boilermaker
Boilermaker's picture

Japan now saying radiation levels "Extremely High" acc. CNN

Wed, 03/16/2011 - 17:34 | 1063353 redpill
redpill's picture

It's just repeating the Energy Sec'y remarks to Congress, based on old info.  Doesn't mean those levels aren't still high now, but that report is yesterday's news (literally).

The situation on the ground changes so rapidly that it is very difficult to stay appraised of what is actually going on there.  Many MSM outlets repeat old news when they don't have anything new, and wind up making the entire situation more confusing.


Wed, 03/16/2011 - 17:29 | 1063332 cocoablini
cocoablini's picture

Well Carrytrade YEN is unwinding faster than carrytrade 2(USDollar.) Everything is getting poured out to get YEN for the carrytrade unwind. A fucking BLOODBATH.

Carrytrade 2 killed us in 2008 when the DXY went to like 91.

This is huge and deflationary for JAPAN with the destruction of money supply, velocity and asset value.

Gold, silver, stocks, etfs,dollars, euros and more. For YEN

Wed, 03/16/2011 - 17:38 | 1063397 PeterB
PeterB's picture

Don't forget the AUD carry trade. Talk about overcrowded the AUD is heading for a big spank spanky now that their sugar daddy is KO'd

Wed, 03/16/2011 - 18:42 | 1063779 saulysw
saulysw's picture

Yes. The AUD is getting slammed. A few days ago, it was well above parity with the USD. Now it's $0.975 ..

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