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Will The Japanese Earthquake Be The Straw That Breaks Europe's Back?

Tyler Durden's picture





 

Two months ago many were scratching their heads when Japan announced it was buying Eurozone bonds.  After all - why would Europe want to have a marginal buyer (or as the case may be seller) of its debt be the country that is known by all to be the most indebted entity in the world? Of course, it became promptly clear that it was not the Japanese government doing the buying, but mostly its financial companies, with an emphasis on its insurance and reinsurance companies. Fast forward to today when Japanese insurance companies are getting pummeled in local trading on concerns the payoffs to the decimated Japanese infrastructure will be unprecedented. So what will happen? Why a scramble for liquidity of course, just like we saw back in September 2008, when cash stricken companies sold all their liquid assets first, resulting in a toxic loop of self-fulfilling prophecy selling which almost tobbled the $25 trillion shadow banking system. And what will said Japanese insurance companies sell first? Why the very same Eurozone bonds they acquired with so much pomp and circumstance, by the minions of the insolvent Eurozone, back in January of course. Furthermore, now that Japan will have no choice but to launch a mini round of Quantitative Easing and flood the market with JGBs, there will be a dramatic spike in supply for sovereign paper, which of course means yields across the board will rise.

Which begs the question: if an earthquake flips its wings in Japan, does the Eurozone go bankrupt, especially in the month when its most insolvent countries face billions in debt rollover requirements, tens of billions in maturity funding needs, even more in deficit funding requirements... and no cash?

h/t Geoffrey Batt

 


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Fri, 03/11/2011 - 10:06 | Link to Comment idea_hamster
idea_hamster's picture

Well, it was the Kobe quake that indirectly blew up Barings.

Leeson was financing his 88888 Account by shorting straddles on the Nikkei, and when Kobe hit, that was that....

Fri, 03/11/2011 - 10:54 | Link to Comment Ray1968
Ray1968's picture

Quack quack said the Black Swan...

Didn't see this one coming.

Fri, 03/11/2011 - 12:38 | Link to Comment Michael
Michael's picture

The BOJ will step aside in 7 days.

The Japanese people will not let this crisis go to waste. They will use it as an excuse, and justifiably so, to sell US treasuries to finance reconstruction an eventually default on it's 200% national debt.

Make preparations for this eventuality.

This is an example and warning to the USA when say California or other place has a natural disaster of the magnitude and we can't finance reconstruction. This is a major national security issue that needs to be dealt with.

Fri, 03/11/2011 - 14:27 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

"This is a major national security issue that needs to be dealt with."

Damn.  You are right.  Send in the army!!

Fri, 03/11/2011 - 13:53 | Link to Comment jmc8888
jmc8888's picture

Great movie with Ewan McGregor on that. 'Rogue Trader'

Fri, 03/11/2011 - 10:07 | Link to Comment props2009
props2009's picture

That funny. really. By that logic Tyler, US should be shut by the end of year as Japan will have to dump all its treasuries too?

Dude....

Fri, 03/11/2011 - 10:13 | Link to Comment idea_hamster
idea_hamster's picture

Actually that point was made in a front-page guest post a few weeks (months?) ago.  That idea was more general, that Japan's demographic issue was bearish for Japan but even worse for the US, where our markets have become accustomed to a steady outflow of capital from Japan.

The general idea of a capital flow reversal causing upheaval in the US markets can be extended to this particular situation, albeit in a shorter-term context.

Besides, with either QE3 or NotQE3 on the horizon, what made you thing the US wouldn't be shut by the end of the year, anyway?  ;-)

Fri, 03/11/2011 - 10:27 | Link to Comment superman07
superman07's picture

I didnt read anything there about Japanese Insurance companies being net buyers or sellers of UST over the last 6 mo.Do you not understand the coorelation with liquidity concers in the wake of insurance damages, and what they will likely sell first?

Did you read the piece, or just crap on yourself?

Try again.

Fri, 03/11/2011 - 11:21 | Link to Comment jus_lite_reading
jus_lite_reading's picture

No need to worry. This is a green shoot. Think of all the infrastucture and products that will need to be bought. These major events are good for the markets as you can see the markets have rallied and are UP! BEnron is very happy this morning. The focus is off of him AND the markets can finally rally.

Oh, and the earth just EFFFFING SHIFTED ITS AXIS 4 INCHES!!!!! Another Green SHOOT!

http://fiatsfire.blogspot.com/2011/03/massive-earthquake-hits-japan-decl...

 

 

Fri, 03/11/2011 - 11:27 | Link to Comment curbyourrisk
curbyourrisk's picture

My company is probably already thinking of ways to increase our construction machinery sales into Japan.

Fri, 03/11/2011 - 10:08 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Tora! Tora! Tora!

Fri, 03/11/2011 - 10:09 | Link to Comment bigking12345
bigking12345's picture

Black swan sunami! Great name for a band or global destruction.

Fri, 03/11/2011 - 10:40 | Link to Comment Arch Duke Ferdinand
Fri, 03/11/2011 - 10:42 | Link to Comment Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Safest quadrant on our planet...

Canada's four Western Provinces w/ a plethora of natural resources and only 12.5 million citizens...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/02/vancouver-bcworlds-most-liveable-cities.html

Fri, 03/11/2011 - 11:31 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Does anyone think the Super Full Moon has anything to do with this?

Fri, 03/11/2011 - 12:10 | Link to Comment Ahmeexnal
Ahmeexnal's picture

China already has plans for a takeover of Canada's four Western Provinces.

 

Fri, 03/11/2011 - 11:56 | Link to Comment steve2241
steve2241's picture

A Tsunami of Sushi, playing your favorite Techno dance music, Wednesday's and Friday's. Also, streamed on zerohedge.com.

Fri, 03/11/2011 - 10:11 | Link to Comment max2205
max2205's picture

Today will mark the end of Japans Deflation Era.....Rebuilding Infrastructure will make Japan the most modern economy

Fri, 03/11/2011 - 10:47 | Link to Comment jesse livermoore
jesse livermoore's picture

the entire country was not leveled  just one or two cities got flooded. lets not get carried away..this will not  mark the end of deflation.  did katrina hiting new orleans jump start the infistructure of the US....?   no

Fri, 03/11/2011 - 10:54 | Link to Comment tonyw
tonyw's picture

Plus as well they already have a pretty good infrastructure, bullet trains, they've built bridges to everywhere, got nuke power....

 

Fri, 03/11/2011 - 10:11 | Link to Comment apberusdisvet
apberusdisvet's picture

Black swan contagion?

Fri, 03/11/2011 - 10:32 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Oh... you mean Volatility isn't just something we short into oblivion without risk of loss? :)

Fri, 03/11/2011 - 10:54 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Black swans are something that's right in front of you and you realize it after it all falls apart.

This is a disaster and unexpected.

How many global issues can be up in the air? Why should stocks surge anymore?

Japan is going into recession for sure now

Fri, 03/11/2011 - 11:27 | Link to Comment johny2
johny2's picture

It looks like there is a whole flock of Black Swans flying around right now. 

Fri, 03/11/2011 - 12:10 | Link to Comment bingaling
bingaling's picture

We covered this a month or so ago I think we all came to the consensus to call it the aflockalypse.

Fri, 03/11/2011 - 13:17 | Link to Comment johny2
johny2's picture

aparently it is good for stock markets....After the mankind is wiped out, the HFT robots will push the dow jones to the 36000

Fri, 03/11/2011 - 12:14 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Unexpected?

No, it was fully expected.  So is "the big one" that will hit California in a few days.

So is the one that will level Mexico City. The one that will decimate Lisbon. The one that will obliterate Berlin. The one that will bury Ankara.

 

Fri, 03/11/2011 - 13:21 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

that will hit California in a few days

1) link please; 2) definition of "a few days"

Fri, 03/11/2011 - 14:03 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

he's jivin' you (sort of). fact is, anything could happen any given day. fact is, most major faults are "due" or over-due". that's a fact. we just cross our fingers and go merrily on our ways..... WTF else ya gonna do?

Fri, 03/11/2011 - 14:01 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

you forgot the New Madrid that will split USA in half & re-route the Mississippi. and the one in New York....

Fri, 03/11/2011 - 10:14 | Link to Comment Larry Darrell
Larry Darrell's picture

Ben will print the money and backdoor it to the Eurozone banks so they can buy Eurozone country bonds.

 

Hell, maybe the Eurozone banks can even get in on the "flip that bond" action so American taxpayers can help recapitalize them too.

 

Nothing to see here.  Move along.

Fri, 03/11/2011 - 10:15 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Why isn't gold going to the fucking moon!?

Fri, 03/11/2011 - 10:21 | Link to Comment Larry Darrell
Larry Darrell's picture

Because right now people are selling their "paper gold" in order to cover losses in their other paper products. 

Fri, 03/11/2011 - 10:23 | Link to Comment ZEITGEIST
ZEITGEIST's picture

the manipulation is either off the charts..or the idiot Hedge Funds are running to the so called safety of dollar and US Treasuries....these guys will blow themselves up sooner or later trying to pick up nickels on the trade..cant be any shorter term thinking than these guys.....

Fri, 03/11/2011 - 10:47 | Link to Comment johnQpublic
johnQpublic's picture

thats what i was thinking....

 

Fri, 03/11/2011 - 11:43 | Link to Comment Pegasus Muse
Pegasus Muse's picture

NAI out with a new piece today.  They've made some pretty good calls lately.  Comparative geniuses, really, compared to CNBC favorite BSer's Dennis "I'm short of gold" Fartman & Dougie "all my 2010 predictions were wrong" Kass.

=====

March 11, 2011

U.S. Dollar Collapse Could Occur at Any Time

http://inflation.us/dollarcollapseanytime.html 

Fri, 03/11/2011 - 10:13 | Link to Comment John McCloy
John McCloy's picture

If today is not a risk off day between the tsunami, yesterdays dma breach, elevated oil going into a weekend of unknowns in the Middle East I do not know what is.
Makes you question QE 3 if the Japanese are no longer buying Treasuries.

Fri, 03/11/2011 - 10:17 | Link to Comment Larry Darrell
Larry Darrell's picture

QE3 is a done deal, just like QE4ever is already sealed.

It's just a question of whether or not they stack them up back to back or allow for some deflationary pain between issuances.

There will be QE regardless.

Fri, 03/11/2011 - 11:23 | Link to Comment MachoMan
MachoMan's picture

If they want to avoid diminishing returns as much as possible, they'll stuff deflationary pain in between...

Fri, 03/11/2011 - 10:44 | Link to Comment Apostle of Unknown
Apostle of Unknown's picture

so far, the tape suggests you don't know...

Fri, 03/11/2011 - 10:18 | Link to Comment clones2
clones2's picture

$INDU breaking the 50 DMA this morning.

All 3 indices have broken that support...  This is playing out picture perfectly... After its top a couple weeks back - we got very choppy action right above support...  No a break below support...  I expect some more choppy action below these support levels before another leg down within the next couple weeks.

Interesting note - markets pressured this morning down around -.4% right now... bonds flat.  Not looking like much of a safe haven right now.   And silver getting nailed.   Everyone going to cash or what???

Fri, 03/11/2011 - 10:20 | Link to Comment toros
toros's picture

Everyone has debt, but no cash?  Where is all the cash that has been raised by all the debt?  In assests.  Assest liquidation is  coming and with it deflation.  Equities, PM, bonds all up for sale?

Fri, 03/11/2011 - 10:32 | Link to Comment falak pema
falak pema's picture

You forget the excess liquidity held by the world plutocrats, estimated at 80 trillion USD stuffed in tax haven accounts...That money has to travel...like Q's sovereign funds...all sunk in Italy et al. Half of that 80-100 trillion is corporate money on shadow banking investments via HF. Pulling that back into US economy would be the kicker that Obama has up his sleeve by a Homeland investment act...M. Gross must be watching his liquid pile of dough ....wondering which way to go. He's hoping a USD surge and Euro meltdown.

Fri, 03/11/2011 - 10:37 | Link to Comment Bastiat
Bastiat's picture

The Japanese will sell some foreign assets, sure. The net effect will be more money printed out of thin air.  Increased demand for commodities required to rebuild. 

Fri, 03/11/2011 - 10:21 | Link to Comment Oh regional Indian
Oh regional Indian's picture

This is the event that will cause the Yen carry trade to snap. Back. Hard.

Because this is not even near over yet. + the Japanese were heavily invested in Oz and NZ, both hammered recently.

Japan on the edge, for sure.

ORI

http://aadivaahan.wordpress.com/2011/03/11/axis-trembles/

Fri, 03/11/2011 - 10:24 | Link to Comment wirtschaftswunder
wirtschaftswunder's picture

Still wondering how no Variable Annunity providers failed in 2008-09.

Fri, 03/11/2011 - 10:25 | Link to Comment falak pema
falak pema's picture

dollar and euro punching it out to see who goes down first. Looks like a Charlie Chaplin Tramp movie he made on a boxing match. If you ever saw it you wouldn't want to be in the place of the referee! A true classic that WB7 should re-animate for all of us in his wonderworld!

Fri, 03/11/2011 - 13:27 | Link to Comment Treason Season
Treason Season's picture

LOL

Fri, 03/11/2011 - 10:28 | Link to Comment AccreditedEYE
AccreditedEYE's picture

This is what happens when we live in the trailer park trash style that modern policy makers and economists have supported for decades. (read: living beyond means and having zero to negative net worth)Things work fine until you have unaccounted for massive problems... like a massive earth quake.

Did everyone see the big slug Larry Summers out saying that this could be a boost to Japanese GDP from rebuilding? What bull... I'm glad Fat Larry did the calculations of the loss of manpower due to an as of now unknown number of dead. (among a host of other issues that could crimp Japan aside for Debt to GDP ratio)

Fri, 03/11/2011 - 10:46 | Link to Comment Josh Randall
Josh Randall's picture

Vultures they are -- and misguided to say the least. Try rebuilding an infrastructure when commodoties are going through the roof, oil may be $ 200 a barrel soon, you live in an Island enviorment with all of those challenges, and many of the countries over there hate Japan's guts (see Koreas, and China). No - this sounds like a job for an unfunded US taxpayer to bail out, with money we dont have and borrow from China.

Fri, 03/11/2011 - 11:38 | Link to Comment AnAnonymous
AnAnonymous's picture

Miracles are achieved thanks to money you dont have...

Fri, 03/11/2011 - 12:17 | Link to Comment steve2241
steve2241's picture

Loss of manpower? Metro Tokyo must have a population of some 13 million people. I'm guessing 10,000 dead will be the final count.

Mon, 03/14/2011 - 15:31 | Link to Comment AccreditedEYE
AccreditedEYE's picture

My LARGER point within the post was to bring up just one of a list of other items that Japan has to deal while Larry Summers just comes out and says "all is well, GDP boost!" Do you need me to write out the list?  (BTW- right now, those "only 10,000 dead" are very important to the people of Japan) PS- Thanks for the junk.

Fri, 03/11/2011 - 10:34 | Link to Comment gwar5
gwar5's picture

I was worried about Japan before. This isn't going to help things.

Power is out & nuclear plant isn't cooling down after shut off.

Godzilla can't be far away....

Fri, 03/11/2011 - 10:38 | Link to Comment sabra1
sabra1's picture

i heard Ultraman is on his way to kick the bernanks big butt!

Fri, 03/11/2011 - 10:49 | Link to Comment Sophist Economicus
Sophist Economicus's picture

That's a relief, because Mothra and Rodan are on their way too...Seems like the sunami woke them from their slumber

What ever happens, I hope they don't wheel out those midget twins with the squeaky voices!

Fri, 03/11/2011 - 10:31 | Link to Comment Grouch
Grouch's picture

The MoF cross border data refutes this hypothesis.... the evidence is to the contrary... most participants have been sellers of froreign bonds for a long tome now.

Fri, 03/11/2011 - 10:33 | Link to Comment DUNTHAT
DUNTHAT's picture

Will Japan still be able to buy U.S. treasuries??

Fri, 03/11/2011 - 12:19 | Link to Comment steve2241
steve2241's picture

Will Japan still be able to buy U.S. treasuries??

Bernanke will lend them the money, if necessary.

Fri, 03/11/2011 - 13:26 | Link to Comment Zero Govt
Zero Govt's picture

ask yourself how a 200% in debt bankrupt Japanese Govt can afford to buy debt from a steaming towards insolvency US Govt? ....are these absolute nutters in an asylum yet? ..if not why not???

Fri, 03/11/2011 - 10:37 | Link to Comment VFR
VFR's picture

I like that word

"Tobbled" almost like toppled and trouble combined! 

 

Fri, 03/11/2011 - 12:23 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

i thought he might be enjoying some imported chocolate.

the greatest danger, now, seems to me to be the nuclear reactor.  however, since these are always, without fail, 100% safe no matter where they are built, by whom, and, of course well-maintained, there should be no problem.

and, if there were, do you think anyone would be allowed to publish that info at this point?

here are some copy/pasties from my fuking around:

1) (C. Sci, Monitor): One oil refinery went up in flames about 40 miles outside Tokyo, 11 nuclear plants were shut down and a nuclear emergency was declared for one because its emergency cooling systems stopped working. Officials there say the situation is under control and there's no danger of fallout.

2) (Asia-Pacific on MSNBC): The plant, which is in Onahama city, about 170 miles northeast of Tokyo, experienced a mechanical failure in the backup power generation system to supply water needed to cool the reactor. The reactor core remains hot even after a shutdown... Meanwhile, an administrator at the Tohoku Electric Power Co's nearby Onagawa facility said the process for the cooling reactor is "not going as planned," adding that "nuclear emergency situation" has been declared. The company asked people nearby to stay calm, the official TV news channel NHK reported...Another plant at Onagawa, which is in the worst-hit Miyagi prefecture and further north from the Fukushima facility, also is experiencing a water leak, though it is unclear whether the incident is significant...Prime Minister Naoto Kan said: "Parts of nuclear plants were automatically shut down but we haven't confirmed any effects induced by radioactive materials outside the facilities."

3) (guardian.co.uk): Residents within a 2 mile (3km) radius of Tokyo Electric Power's (Tepco) Fukushima Daiichi nuclear plant had been told to evacuate, Japan's chief cabinet secretary, Yukio Edano, told a news conference. Kyodo news agency said around 3,000 residents were being moved out..."There is a falling trend (in water levels) but we have not confirmed an exposure of nuclear fuel rods," he said.

4) (alex jones' Infowars.com):  Under Japanese law, authorities are mandated to issue a nuclear emergency if the cooling mechanisms fail, and they did exactly that for the first time in Japan’s history after it became clear that attempts to cool the reactor were “not going as planned”.

Fukushima No. 1 is one of the largest nuclear plants in the world and has eight separate units located on the site. Thankfully, so far there’s no evidence of any radioactive leakage.

slewie, again:  now, as far as any economic impacts go, oncologists on the w. coast are ordering new Tesla Roadsters as i write, and 'hello, kitty' has tsunami-like real-time orders for its evening release: "Fuk-u-shima's Revenge".

Fri, 03/11/2011 - 10:36 | Link to Comment VFR
VFR's picture

I like that word

"Tobbled" almost like toppled and trouble combined! 

 

Fri, 03/11/2011 - 10:40 | Link to Comment 6 String
6 String's picture

.....And the markets are turning green! No POMO! No Shit! Truly the most amazing stock market I have ever seen. Looks like this baby is gonna stand on its own. No QE3.

Russell 2000 to a trillion.

Fri, 03/11/2011 - 11:38 | Link to Comment SME MOFO
SME MOFO's picture

AND THE VIX IS DOWN

Doesn't anyone in the trading pits notice a huge earthquake this morning??? 

I feel like I'm taking CRAZY PILLS.

http://www.youtube.com/watch?v=4DVAsmrwdtQ

MORE ODDNESS

The Other Deal: Lockheed Martin wanted to sell F-16 fighter jets to the Thai government but the Thai government didn't want to pay in cash, so it proposed paying with 80,000 tons of frozen chickens. 

AND THE MILLION TONS OF SUGAR JPM TOOK DELIVERY

THEY ARE GETTING READY TO LAUNCH THE LIFEBOATS BEFORE THE ASTEROID HITS AND WE AREN'T INVITED. THAT'S WHAT IS CAUSING THE EARTHQUAKES. chicken and cake buffet for the elites watching us from ORBIT

Fri, 03/11/2011 - 10:42 | Link to Comment Broomer
Broomer's picture

Am I the only person who still remembers the Day of Rage in Saudi Arabia?

Fri, 03/11/2011 - 10:49 | Link to Comment silvertrain
silvertrain's picture

There's alot of shit going down..These things right here is where you have to watch the other hand...

Fri, 03/11/2011 - 11:23 | Link to Comment pazmaker
pazmaker's picture

yep cause nothing is happening there.

Fri, 03/11/2011 - 13:23 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Crazymaking times indeed.

Looks like there are more than 2 hands to look out for anyways.

ORI

Fri, 03/11/2011 - 10:44 | Link to Comment vitoox
vitoox's picture

Let the Katla errupt!!!

Fri, 03/11/2011 - 10:48 | Link to Comment Misean
Misean's picture

Shadow bankings interlinked bets get whalloped again.

Fri, 03/11/2011 - 10:50 | Link to Comment Misean
Misean's picture

BTW, did Brian Sack look at the POMO schedule and say, "f*ck it, I'll just buy the indexes myself"?

Fri, 03/11/2011 - 11:15 | Link to Comment kaiten
kaiten's picture

What a nonsense. Just look at the euro. Euro is the new safe heaven. Eurozone will get its house in order by 2012-3 and then bye-bye dollar.

Fri, 03/11/2011 - 11:36 | Link to Comment AccreditedEYE
AccreditedEYE's picture

The only thing that pays the bills for Trichet's Super CDO is German manufacturing... I hope BMW and VW have currency hedges in place....

Fri, 03/11/2011 - 11:22 | Link to Comment AN0NYM0US
AN0NYM0US's picture

Margaret Brennan on Bloomberg just now - Inteviewing Bill Gross, "in light of the tsunami you still made it into the office today?"  Bill responds "oh yes we are all at work today, we are well above the water line here in Newport and our Tokyo offices are open as well."

 

Let's see if Bloomberg edits out that part of the clip when it is posted

Fri, 03/11/2011 - 12:24 | Link to Comment steve2241
steve2241's picture

Where in Newport Beach is "well above the water line"???

Fri, 03/11/2011 - 11:25 | Link to Comment HedgeFundLIVE
HedgeFundLIVE's picture

i swear one of our guys called the earthquake last night before it happened!!!: http://www.hedgefundlive.com/blog/earthquakes-and-flash-crashes-the-coming-mini-flash-crash

Fri, 03/11/2011 - 11:37 | Link to Comment falak pema
falak pema's picture

must have eyes in the back of his head! Weird!

Fri, 03/11/2011 - 12:21 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Miss Cleo?

Wasn't she working with Al Gore with that "voter's intent" bullshit?

Fri, 03/11/2011 - 11:33 | Link to Comment Yen Cross
Yen Cross's picture

It's the Piiglets. euro/yen support has been on the back of usd/jpy this week. eur/usd will trade sideways. GBP has me puzzled. Via the yen.

Fri, 03/11/2011 - 11:39 | Link to Comment Yardfarmer
Yardfarmer's picture

then there is the little matter of Euro dependence on Libyan crude with Ireland and of course Italy with more than +20% total imports shut off in the pipeline.

http://arthurzbygniew.blogspot.com/search?updated-min=2011-01-01T00%3A00...

Fri, 03/11/2011 - 13:11 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

We are not consuming the same amount of crude that we were doing back in 2007.

Outside of the multinational and farming sector the entire economy has collapsed.

I cannot get any decent up to date Irish energy stats but at a guess I imagine our petrol and diesel consumption has dropped 15 - 20% from its highs.

We have a truely massive trade surplus in Ireland now.

Fri, 03/11/2011 - 12:05 | Link to Comment pazmaker
pazmaker's picture

wow right after this article was posted the eur starts rocketing back on it's way to 1.39 vs usd after being down to 1.375 at 5am est.

 

Not looking too sideways to me.

Fri, 03/11/2011 - 12:29 | Link to Comment mhjhnsn
mhjhnsn's picture

Some say the great SF earthquake of 1906 started the chain of events that led to the Panic of 1907.

Fri, 03/11/2011 - 13:08 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

well.... "it's different this time" (ha!). seriously, back in ought-7, no Fed (matter of fact, I think it was '07 that "justified" the Fed). also - proportional degrees of damage to consider

Fri, 03/11/2011 - 12:35 | Link to Comment IAMAM
IAMAM's picture

I think it is a warning sign the US dollar must rallying now, what is going on in the background, Aug is back over $35, do you think a panic soon, I guess, is the next shock USD, and then fireworks start and then WAR?

Fri, 03/11/2011 - 13:28 | Link to Comment Zero Govt
Zero Govt's picture

"Will The Japanese Earthquake Be The Straw That Breaks Europe's Back?"

No

...Europe will be going bankrupt in its own time thank you... i reckon we've 1-2 months for the major European stock indexes to collapse into the toilet, the PIIGS are already on their way... then the Eurozone economies follow 2nd half of 2011... between 2012-14 it'll be nothing but carnage and the parasitical EU and Eurozone Govts falling apart at the seems as the peoples finally kick off against this scum... the fireworks and toys being thrown out of the political prams should be a sight to behold (and i'm going to fuking love it;)

Fri, 03/11/2011 - 13:46 | Link to Comment mach777
mach777's picture

Should I be going gold or wait for the dip? Will gold fall as liquidation begins, or will it rise as a sign of capital fleeing to safety?

Fri, 03/11/2011 - 14:56 | Link to Comment Zero Govt
Zero Govt's picture

Mach  -  Gold has had a mighty good run. I think this is the last run-up started today to maybe $1,500 (maybe Sinclairs $1,650), so up to you wether you join in. And yes if the deflationary epocalipse takes hold and liquidation begins Gold and all Commodities get hammered, as per 2008-09 

Fri, 03/11/2011 - 13:51 | Link to Comment falak pema
falak pema's picture

You sound like you belong in a pram... permanently...

 

Fri, 03/11/2011 - 13:39 | Link to Comment cdskiller
cdskiller's picture

So, is it a good time to buy Portuguese bonds and gold?

Fri, 03/11/2011 - 13:52 | Link to Comment falak pema
falak pema's picture

Try bacalao its safer.

Fri, 03/11/2011 - 22:47 | Link to Comment gall batter
gall batter's picture

As soon as I heard that the nuclear reactors were safe, I looked at my dog Trooper in disbelief.  This registered with him. As if anyone would be allowed to report that those facilities could wreak havoc on generations!  Just like the Gulf Coast is back to normal after an unnatural disaster. Eat your seafood.  Ignore those dispersants.  Shop.

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