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WTI Drops Below $100, Down Almost 10% On The Day, Complete Wipeout In Euro Brent

Tyler Durden's picture


The anti-speculator witchhunt is bearing fruit: following the wipe out in precious metals, the next, and key, target of this commodity take down, crude, just went from triple to double digits, hitting a low of $99.70, with the $100 limit orders resulting in a surge in the USD and accelerating the drop in EUR. Stocks continue to be completely disconnected from this massive liquidation across all commodities, as every mutual fund knows all too well that Ben will always step in and make sure that the Russell 2000 never has a downtick. Yet this complete isolation of equities from other products merely confirms that not even the HFTs correlate stocks to other asset classes. It also means that HFTs are no longer present in stocks, which means that even the fake liquidity provided by HFTs is no longer there, and we will likely have a far worse flash crash the second Brian Sack loses control of the stock market.

Yet the move in USD-priced crude is nothing compared to what is happening to Euro-priced Brent. In a word: "total wipeout"


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Thu, 05/05/2011 - 14:22 | 1244239 Cone of Uncertainty
Cone of Uncertainty's picture

Die oil bitches.

Thu, 05/05/2011 - 14:28 | 1244272 Manthong
Manthong's picture

I am so glad that all of this inflation fear fueled hysteria is ending and common sense and logic is bringing the costs of essential energy, commodities and precious metals back in line with the intrinsic value of currency.

Thu, 05/05/2011 - 14:33 | 1244281 camaro68ss
camaro68ss's picture

O NO DEFLATION!!!! Start QE3 now!

Thu, 05/05/2011 - 14:42 | 1244329 hedgeless_horseman
hedgeless_horseman's picture

Just the KSA saying thank you for the KIA, IMO.

Thu, 05/05/2011 - 14:48 | 1244366 narapoiddyslexia
narapoiddyslexia's picture


Thu, 05/05/2011 - 15:37 | 1244643 Texas Gunslinger
Texas Gunslinger's picture

I'm less concerned with silver today, and more concerned with oil. 

If Obama manages to keep the equity markets somewhat afloat, while simultaneously killing the commodity space, he will get re-elected in a landslide victory against whatever dolled-up, carnival-barker the Republicans can find at the Ms Conservative Milf USA pagent this summer. The killing of Osama is the icing on the cake.  And if unemployment improves a little?  Game over.   

The decline in oil is horrible news for Republicans and libertarians, based solely on the prospects for Obama and the 2012 election.  We can only pray that oil marches higher after this correction. 



Thu, 05/05/2011 - 15:49 | 1244710 What does it al...
What does it all mean's picture

Why can't speculators short?  ;-)

Thu, 05/05/2011 - 15:53 | 1244754 Texas Gunslinger
Texas Gunslinger's picture

In Texas, men don't wink at each other, you libtard. 



Thu, 05/05/2011 - 16:06 | 1244858 in4mayshun
in4mayshun's picture

You should replace Hannity Gunslinger. Then I might listen to talk radio.

Thu, 05/05/2011 - 17:43 | 1245327 JW n FL
JW n FL's picture
Republican-controlled committee voted for a 18-month delay of regulations intended to reduce risk in OTC derivatives.
Thu, 05/05/2011 - 16:07 | 1244834 in4mayshun
in4mayshun's picture

 "I am so glad that all of this inflation fear fueled hysteria....(blah blah blah)"

OH Please! These guys are so predictable you can play em' like a fiddle! I have been telling people for 3 months to expect a sharp correction in the markets. They're just laying the ground work for phase 3 of dollar destruction.

"Q-E INFINITY AND BEYOND!"- Buzz the Bernank Lightyear



Fri, 05/06/2011 - 01:43 | 1246488 ivars
ivars's picture

That is only temporary, and short temporary. With QE3, everything will be back and above (except silver) in July already.

Thu, 05/05/2011 - 14:32 | 1244276 DoChenRollingBearing
DoChenRollingBearing's picture

As smart ZH-er tmosley once wrote, it's going to be one of those days when many of us will not be very productive...

Thu, 05/05/2011 - 15:05 | 1244465 Dejean Splicer
Dejean Splicer's picture

Yea like totally.

One of these days the non-ZH shills have to rise up against the ZH shills. Hopefully we'll see lots of Hendron-Va red spilled and flowing.

Does one of you dumb fuckers understand that OPEC is retaliating for the death of Bin Laden via their collusive relationship with the The Peak Oil Scam?!!

Please get a fucking clue, Bitchez!

Thu, 05/05/2011 - 15:15 | 1244512 DoChenRollingBearing
DoChenRollingBearing's picture

Wow, Au down $53, Ag down $4.

Massacre, Bitchez!

Thu, 05/05/2011 - 15:24 | 1244565 DoChenRollingBearing
DoChenRollingBearing's picture

More info, FWIW.

Dow: -149

gld:slv ratio: 4.2 / eBay widget Au premium: 11.9% / eBay widget Ag premium: 43.1% (was 60% earlier today)

Thu, 05/05/2011 - 15:30 | 1244606 jus_lite_reading
jus_lite_reading's picture

It's not over until the FAT MAN sings! FUKUSHIMA IS SINGING!

REACTORS 2 -3 are smoking!!!!!! THERE IS SO MUCH GOING ON!





Thu, 05/05/2011 - 15:57 | 1244760 Smiddywesson
Smiddywesson's picture

I am shorting paper gold and buying physical gold.  I would imagine the big guys are doing the same.  I would also guess that it will make the snap back in gold very pronounced vis a vis the other commodities.

Thu, 05/05/2011 - 15:59 | 1244774 jus_lite_reading
jus_lite_reading's picture

Yes! The BIG BOYS are buying all the physical gold and silver they can! This shaking of the tree is BULLSHIT to bring on QE3.

Thu, 05/05/2011 - 15:57 | 1244781 SheepDog-One
SheepDog-One's picture

Funny, still cant find silver to buy for under $48 anywhere right now. Paper games.

Thu, 05/05/2011 - 17:50 | 1245348 Overflow-admin
Thu, 05/05/2011 - 14:36 | 1244292 tmosley
tmosley's picture

I sympathize with those invested in oil, as you have here a market where the fundamentals point firmly UP.  Sadly, you folks couldn't take physical delivery, and as such are much more vulnerable to paper games.  

Thu, 05/05/2011 - 14:46 | 1244363 JW n FL
JW n FL's picture

some people rented boats to park the physical in.. was the last thing I saw floating around in a prospectus.. that was 6 months ago? ish??

Thu, 05/05/2011 - 14:46 | 1244364 tekhneek
tekhneek's picture

GS is fucking pissed I bet.

SELL CLIENTS (so we can buy the dip you jackasses create) !


And as per usual gasoline will get more expensive. Love economics.

Thu, 05/05/2011 - 16:02 | 1244801 SheepDog-One
SheepDog-One's picture

Your avatar is a dead ringer for this girl who was the office nympho way back when, just give her a glance and she'd be sitting on your lap in your office at the drop of a hat. I swear its her.

Thu, 05/05/2011 - 14:55 | 1244428 Robot Traders Mom
Robot Traders Mom's picture

@tmosley-you don't get enough credit for your common sense approach. too much over analyzation by people on here.

it is what it either have it in your hands or you don't. you either believe in the end game or you don't.

Thu, 05/05/2011 - 15:00 | 1244455 wirtschaftswunder
wirtschaftswunder's picture

Only an idiot would give credit to an idiot

Thu, 05/05/2011 - 15:14 | 1244524 eisley79
eisley79's picture

you maaaaaaaaaad?

Thu, 05/05/2011 - 15:16 | 1244530 Green Leader
Green Leader's picture

Mosley is definitely not an idiot-- but rather a troll on payroll.

Most people here can't see that.

Thu, 05/05/2011 - 15:56 | 1244648 tmosley
tmosley's picture


Edit:  Seriously, wat?  Who on Earth would be interested in having an anarchocapitalist on their payroll?  You think APMEX is shelling out the bucks to me, a chemist, to come and sell physical silver?  Guess what, they don't need me.  Their inventory moves just fine on its own. 

Thu, 05/05/2011 - 15:59 | 1244798 Smiddywesson
Smiddywesson's picture

Simpletons, I'm the paid troll working for the Fed.  Buy the Russel 2000, buy.  These aren't the droids you are looking for.  You may go about your way, to buy more Russel.

Thu, 05/05/2011 - 16:01 | 1244811 SheepDog-One
SheepDog-One's picture

I cant find silver to buy anywhere today for under $48. I'll probably stop by my dealer later and see if he as any more boxes of silver dimes he can sell me by the pound.

Thu, 05/05/2011 - 16:31 | 1245025 tmosley
tmosley's picture

APMEX seems to have plenty for well below that price.

Thu, 05/05/2011 - 15:22 | 1244567 Reptil
Reptil's picture

Yes, that's nice. Simple and true, wheither way of the debate you are doesn't matter.

Question: Would it be a good idea to go into a paper trade, make profit and then transfer to physical (in time for that "endgame")? What would that end game look like?

I know there's a lot of people waiting for deflation, and buying opportunities, and stay liquid (euros, US dollars, swiss francs). Personally I think it's a good idea to cover all exits and own physical too, right now.

Your thoughts?

Thu, 05/05/2011 - 16:04 | 1244818 Smiddywesson
Smiddywesson's picture

I'm doing it and it's working out well so far.  I don't care if they run gold down to ten bucks.  My DGZ will earn profits I can pile into more physical.  Why lose sleep at night?  Hedge the physical position.

Thu, 05/05/2011 - 15:05 | 1244473 Dapper Dan
Dapper Dan's picture

I read that Morgan-Stanley chartered more oil tankers than Exxon.

Thu, 05/05/2011 - 15:09 | 1244498 Urban Redneck
Urban Redneck's picture

Statistics, Damn Statistics, and Lies

Thu, 05/05/2011 - 15:55 | 1244769 Smiddywesson
Smiddywesson's picture

LOL T, too funny

Oh well, that's the slippery nature of the oil trade.

Thu, 05/05/2011 - 15:19 | 1244537 grekko
grekko's picture

More market manipulation?

Thu, 05/05/2011 - 14:22 | 1244240 ZeroPower
ZeroPower's picture

And nothing compared to what is happening to silver.

Howeer, looking for a re-nice entry point here.

Thu, 05/05/2011 - 14:30 | 1244269 Sudden Debt
Sudden Debt's picture

Just wait untill Ben wants to give a speech.

Who knows how low they can push it.


Thu, 05/05/2011 - 14:48 | 1244388 Josh Randall
Josh Randall's picture

Exactly right -- anytime the Bernank gets on the mic, or starts cracking his knuckles, Gold and Silver will get their upside-ON again. Old story in this rigged market - artifically knock it down so you can buy MORE cheaply, and then take your hand off the joystick and let the true market pressures move your newly priced commodity higher than it was before

Thu, 05/05/2011 - 14:48 | 1244345 Pegasus Muse
Pegasus Muse's picture

I was just on the phone with my mint.  They had me on hold 20 minutes to talk to a bullion sales rep.  That’s never happened before.  Longest wait ever. 

You think they might be lining up out the door to buy physical silver on this dip?  The rep told me his caller cue was 40 deep when he walk in this morning.  LMAO. 

It will probably be a record sales day for physical silver, thanks to the criminal Bankster Mafia running the Paper Silver Scam at the COMEX/CME.  The sales rep said he is running 2 buyers to every seller.  Buyers are accumulating more silver than the sellers are selling. 

I wonder how much physical silver the Asians and Indians are taking off the market today given the 20% Off Sale the Wall Street Mafia are giving them?  


Thu, 05/05/2011 - 14:47 | 1244353 Pegasus Muse
Pegasus Muse's picture


Thu, 05/05/2011 - 15:00 | 1244441 Dapper Dan
Dapper Dan's picture

I believe this is called volatility,  but it may be transitory, or is it better than expected?  annualized? lobotmized, how about irrational exuberance? counter intuitive, no i think it is or it should be marginalized,  a tea cup and handle? No  I got it, it is a Fibonacci retractment or is it retracement, margarine compression no that would be squashed butter. Could it be a bear trap? no that's illegal in this state.

What ever it is I'm confident you all will figure it out, I getting sick of it all, (not the ZH think tank) need to get more done around the ranch/farm.


Thu, 05/05/2011 - 14:25 | 1244242 Drag Racer
Drag Racer's picture

good to see a drop in price, but at the same time it screems trouble

Thu, 05/05/2011 - 14:25 | 1244243 Seasmoke
Seasmoke's picture

$2 gas here we come, atleast until November 2012

Thu, 05/05/2011 - 14:36 | 1244293 j0nx
j0nx's picture

Just like the guy in fast and furious that hits his nitrous too early, you are too early on your call. Gas drops to the cellar this time next year for at least 6 months until after the election. You can bet your ass on it. Otherwise my prediction that Obama loses his primary to Hillary WILL come true and she will be our next President. Romney is the ONLY GOP candidate that even has a snowball's chance in hell of winning the Presidency against Hillary. If gas prices are this high or higher come November 2012 then the GOP could run a monkey with cymbals and beat Obama. There is at most another year of high gas prices and then we see relief at the pump. Major relief. At least for a little while. These predictions are of course predicated on nothing else major blowing up in the world between now and then literally or financially which is a stretch all by itself.

Thu, 05/05/2011 - 14:49 | 1244368 AK338WM
Thu, 05/05/2011 - 16:07 | 1244865 Smiddywesson
Smiddywesson's picture

Now that we know they can ramp the dollar, knock down commodities, and hold up the market at the same time.  What's going to make them stop?  Everything is going well for the Fed, and the other central banks who undoubtably been screaming their heads off are probably sighing like they just passed a kidney.  The politicians getting ready for 2012 love it too.  Nobody wants it to stop, so how deep will the rabbit hole go for gold and silver?  You might want to hedge with paper.

Thu, 05/05/2011 - 20:52 | 1245993 trav7777
trav7777's picture

not without crushing economic activity...$3 might be achievable.

Oil priced low enough to support $2 gas will cause apeshit economic activity in developing nations which would provide price support

Thu, 05/05/2011 - 14:26 | 1244248 Hugh G Rection
Hugh G Rection's picture

Oil only costs $5 to pump out of the ground

Thu, 05/05/2011 - 14:27 | 1244254 Azannoth
Azannoth's picture

.. but 80$ to find that barrel

Thu, 05/05/2011 - 15:17 | 1244525 Urban Redneck
Urban Redneck's picture

PLUS THE CUT FOR THE GUY WHO OWNS THE LAND.  US Integrated producers don't own any real estate.  Uncle Sam doesn't like to talk his petro buck inflow.

Thu, 05/05/2011 - 14:27 | 1244261 camaro68ss
camaro68ss's picture

I just spit up my water reading your comment. lol hella funny

Thu, 05/05/2011 - 14:38 | 1244306 Hugh G Rection
Hugh G Rection's picture

Who the fuck touched my junk?

Thu, 05/05/2011 - 15:23 | 1244560 TSA gropee
TSA gropee's picture

I was wondering the same thing. Actually when the wife won't, I make it a point to opt out of being irradiated and have me some grope and change. Travel is now satisfying as well as glorious...   <sarcasm>

Thu, 05/05/2011 - 14:39 | 1244324 Temporis
Temporis's picture

That is just too damn funny.

Thu, 05/05/2011 - 14:53 | 1244403 JW n FL
JW n FL's picture
by Hugh G Rection
on Thu, 05/05/2011 - 14:26


Oil only costs $5 to pump out of the ground


it is that cheap becuase it is a by product of pumping other things!


#1 at the top!


of the top 10 things you can NOT! do with Oil!


drum roll ...................................... "You can't eat it"

Thu, 05/05/2011 - 15:47 | 1244696 dugorama
dugorama's picture

$0.50 / barrel FOB in Saudi Arabia.  So what?  I'm not Saudi so there ain't nothing I can do about it but bid against everyone else in the world for it.

Thu, 05/05/2011 - 14:26 | 1244249 No Bid
No Bid's picture

The Fed always wins.

Thu, 05/05/2011 - 14:34 | 1244284 traderjoe
traderjoe's picture

Until they don't.

Thu, 05/05/2011 - 15:11 | 1244506 Hook Line and S...
Hook Line and Sphincter's picture

they always win when you play with their monopoly money... did anyone really expect not to have their ass kicked?

Thu, 05/05/2011 - 14:26 | 1244250 Azannoth
Azannoth's picture

I guess Ben B. wasn't lying when he said 'the Fed has many tools at it's disposal..'

Thu, 05/05/2011 - 14:30 | 1244267 Boilermaker
Boilermaker's picture

That's the beauty of keeping the data secret and only announcing the 'results' of things.

It shore would be interestin' to see exactly who is buying and selling what everyday...wouldn't it?

Thu, 05/05/2011 - 14:42 | 1244327 SheepDog-One
SheepDog-One's picture

Nah the FED really only has many different sized hammers at its disposal.

Fri, 05/06/2011 - 03:26 | 1246579 zhandax
zhandax's picture

'the Fed has many tools at it's disposal..'

Yup, Barry and Timmay and Larry (oops, is he gone yet?) and the other 435 stooges at the ass end of Pennsylvania Ave.......

Thu, 05/05/2011 - 14:25 | 1244251 TheGreatPonzi
TheGreatPonzi's picture

When will the commodity massacre stop? 

It looks like a 2008 redux. Except that this time, stocks don't move.

Playing the western collapse is harder than one could imagine: it all depends of political reactions and insider info, with two strictly opposite outcomes: inflation or deflation. 

Thu, 05/05/2011 - 14:46 | 1244278 Construct
Construct's picture

The Stock Market is 'Remote Controlled'.

Thu, 05/05/2011 - 14:37 | 1244299 tmosley
tmosley's picture

Physical gold wins in either scenario.

Silver is for the more optimistic, since bulls a really relying on continued industrial production.

Thu, 05/05/2011 - 15:01 | 1244457 JW n FL
JW n FL's picture

bite your toungue!

I will have you know sir! that gold is mined and turned into bricks which then are stored.. forever!

Silver is mined for $3 to $5.. and is a by product of Gold that is then used in everything! like your computer, your T.V. and anything else worth its weight in salt that is electronic.. your car? iPod? and the list goes on..

but what you dont have.. is a bunch (professional silver bug term) of piles of it sitting around collecting dust.. so in a finite world silver is more scarce! than Gold!

and we all know how I LOVE! the only Catholic President Kennedy! who's good name has been smeared for decades now, becuase he liked good. no scratch that good shit! GREAT! He LOVED!! GREAT!!!! PUSSY!! how can a man be faulted for fucking Marilyn Monroe!


Back to the Point.. Kill the FED! Kill the FED's Debt held against "We the People" at 6% interest.. and put us back on a PM based monetary system. I offer..

Executive Order 11110


That how ya' get'er dun!

Thu, 05/05/2011 - 15:20 | 1244558 Urban Redneck
Urban Redneck's picture

Fucker can't be faulted for his taste in pussy, but he deserved to die a much more painful death.  Executive Order 11037.

Back to the Point.. Kill the FED!

Fri, 05/06/2011 - 06:27 | 1246655 falak pema
falak pema's picture

deserved to die for issuing a ban on US citizens holding gold assets outside the USA??

Why such a rabid and 'red necked' stance?

Fri, 05/06/2011 - 08:09 | 1246773 Urban Redneck
Urban Redneck's picture

The US was founded in a bloody attempt to escape a condition of tyranny of the State by establishing a new sovereign State.  Kennedy's executive order created new US government sovereign authority well beyond that which the British colonies originally fought to liberate themselves from.  To me that is Treason.

Why should the State have jurisdiction over the rights and actions of its citizens when they leave the jurisdiction of the State?  To me it reaks of slavery through the NWO concept of universal jurisdiction.  

Why not round up all Americans who have visited Amsterdam on suspicion of drug law violations, and use their assets to pay down the national debt? 

What happens to the poor schmuck who finds himself subject to two diametrically opposed laws- one commanding him to do something and one forbidding him from doing the same thing? 

What does it say about the US's respect for the sovereignty of other Nations when they enact laws which are intended to supersede the laws of other States within their own sovereign borders? 

Thu, 05/05/2011 - 15:04 | 1244459 DoChenRollingBearing
DoChenRollingBearing's picture

Platinum is for the REAL optimists!

Thu, 05/05/2011 - 15:15 | 1244518 wirtschaftswunder
wirtschaftswunder's picture

Tell us how it feels to be waterboarded.

Thu, 05/05/2011 - 16:02 | 1244816 DoChenRollingBearing
DoChenRollingBearing's picture

I wouldn't know.

My average price in physical Pt is about $1200.

Thu, 05/05/2011 - 16:45 | 1245000 JW n FL
JW n FL's picture

I have been looking at some 2006 set of proof polished, burnished and whatever else.. that have some really kool looking platinum..


the 2006 sets of anything are bad ass.. I am now some kind of nerd junky coin guy.. sorry if it is not of interest..


sorry here is the platinum set


I do not reccomend the above dealer, I dont know them to be good or bad and have no relationship with them.. they just had a picture!

Thu, 05/05/2011 - 16:32 | 1245033 tmosley
tmosley's picture

Feels like free water, bitch.

Thu, 05/05/2011 - 15:01 | 1244460 equity_momo
equity_momo's picture


Thu, 05/05/2011 - 14:24 | 1244252 Boilermaker
Boilermaker's picture

I just looked through my blinds at the gas station down the street.

Still $4.29 a gallon.

Oh, I'm getting cornholed on my REIT shorts also.  I didn't know the news today was so bullish for CRE.  I was wrong....very very wrong.  That shit is resilient.

Thu, 05/05/2011 - 14:39 | 1244307 tmosley
tmosley's picture

It usually takes a few days for gas to come down after an oil smackdown.  The nice part is that it also takes a few days to go UP.

I'd look for cheaper gas by Monday if this move holds up.

Thu, 05/05/2011 - 15:05 | 1244464 DoChenRollingBearing
DoChenRollingBearing's picture

"Three gets you five" you are wrong there.

Gasoline prices are notoriously "sticky" going back down.

We'll see!

Thu, 05/05/2011 - 15:42 | 1244658 tmosley
tmosley's picture

Personal observation.  I didn't keep notes or anything.

Thu, 05/05/2011 - 16:07 | 1244841 DoChenRollingBearing
DoChenRollingBearing's picture


$4.15 at the station closest to me just awhile ago.  If anything changes, and I see you around next week, I'll give a personal observation as well.

Thu, 05/05/2011 - 16:19 | 1244932 Smiddywesson
Smiddywesson's picture

"Gasoline prices are notoriously "sticky" going back down."

Yes, and that goes doubly so with food.  Nestle and all the other middlemen who process and package food are not going to pass along any savings for quite some time.

Thu, 05/05/2011 - 14:59 | 1244436 Bob Sacamano
Bob Sacamano's picture

Flat-to-lower interest rates are probably a REIT friendly environment -- given their use of debt and given their dividend yields are likely sustainable absent a late 08/early 09 economic repeat.

Thu, 05/05/2011 - 14:24 | 1244253 kengland
kengland's picture

Wah??? But Bill Gross said....

Thu, 05/05/2011 - 14:25 | 1244256 carbonmutant
carbonmutant's picture

ZSL is looking Green....

Thu, 05/05/2011 - 14:32 | 1244279 No Bid
No Bid's picture

so are dollars.


think 35 has support?  interesting that 40 didn't offer any resitance on the way up.

Thu, 05/05/2011 - 14:47 | 1244328 carbonmutant
carbonmutant's picture

There are two .50 gaps from under the current position on 3/18-3/21 that can take this down to ~33.60 fast.

Thu, 05/05/2011 - 16:12 | 1244535 carbonmutant
carbonmutant's picture

Damn, we closed both gaps before the end of the day.


Thu, 05/05/2011 - 14:26 | 1244257 Sudden Debt
Sudden Debt's picture

this is just getting funny :)

I wonder how they do it. Is it with the GS programm? Are they dumping the stock they have been buying these last 2 years?


Thu, 05/05/2011 - 14:27 | 1244262 Cpl Hicks
Cpl Hicks's picture

Oh for christsake! Here I am with no SCO!

Serious. I was told to buy it last week.

Thu, 05/05/2011 - 14:27 | 1244264 John Law Lives
John Law Lives's picture

CREEP (Committee for the Re-Election of the President) can't have surging food and energy costs.  Neither can Chairsatan.

What a manipulated market scam this all is.  I particularly enjoyed seeing the Dow Jones surge 100 points in about 45 minutes on piddling volume starting at 11:15 AM (Eastern).

No manipulation here... move along...


Thu, 05/05/2011 - 14:53 | 1244407 Strider52
Strider52's picture

CRAP (Committee for Re-Americanizing the President) has been busy lately, photoshopping birth certificates, shooting Bin Laden's corpse (for being unemployed), supplying large american flags for students at 11PM on a Sunday night, man, what a great movie this would make.

Thu, 05/05/2011 - 15:09 | 1244495 John Law Lives
John Law Lives's picture

Strider52, you have an amazing... profile.  Yowsa!

Thu, 05/05/2011 - 14:30 | 1244265 willien1derland
willien1derland's picture

 "We believe that Federal Reserve Enhanced 'free' market capitalism  is the best path to prosperity for 1% of the U.S. population!"

- Larry Kudlow (with the Bernank's hand shoved up his A$$)


Thu, 05/05/2011 - 14:30 | 1244266 Alcoholic Nativ...
Alcoholic Native American's picture

Obama is on fire.  First he kills Osama now he's killing speculators.

Good work Obama will vote for you again+++++

Thu, 05/05/2011 - 14:32 | 1244287 Cpl Hicks
Cpl Hicks's picture

Sure and I wish he would get over his 'sensitivity issues' and release the pics of the dead oil speculators.

Thu, 05/05/2011 - 15:06 | 1244476 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Nice shot!  Similar in form to the earlier $5-out-of-the-ground snark...

Thu, 05/05/2011 - 14:28 | 1244268 DavidJ
DavidJ's picture

Buying WTI at $85 - 95 ....Peak Oil + problem in Middle East makes this a good middle to long term investment.

Thu, 05/05/2011 - 14:28 | 1244273 camaro68ss
camaro68ss's picture

WTF is going on???? Im so lost.

Thu, 05/05/2011 - 14:52 | 1244416 CrashisOptimistic
CrashisOptimistic's picture

This is what peak oil does.  It smashes consumption.  Then the GDP hit is ugly.  Then GDP tries to recover, increasing consumption, but the lower available supply won't allow that so the price spikes again.

And it repeats.  A sawtooth pattern of GDP and life, sloping relentlessly downward.

The only significant news of the day was twofold:

1) Iraq finally admitted it won't be able to do 12 million barrels/day by 2017 (or ever).  They cut their target in half to 6.5 mbpd.

2) The Russians have gasoline shortages and are adjusting duties on export.  The formula for those duties only work with oil priced lower than 100.  Never, ever forget that Russia, not Saudi Arabia, are the largest pumpers of oil on Earth.

Thu, 05/05/2011 - 14:30 | 1244274 Law97
Law97's picture

Yes, please tell me how stocks are immune. 

Oil plummetting on demand fears, silver, gold, copper, everything, on economic slowdown fears causing a fleeing out of the inflationary risk trade, and stocks are down only 1% from their multi-year highs?  By all rights, stocks should also be getting wiped out.

It's almost as if there is an invisble hand propping up stocks... 

Thu, 05/05/2011 - 14:31 | 1244285 Alcoholic Nativ...
Alcoholic Native American's picture

After the flash crash that helped push through TARP, they put in circuit breakers.  Markets can't go down more than around 200 points a day now without approval.

Thu, 05/05/2011 - 14:40 | 1244315 Boilermaker
Boilermaker's picture're going to let out the secret.

Explain this...

Thu, 05/05/2011 - 15:12 | 1244513 Dont Taze Me Bro
Dont Taze Me Bro's picture

Stocks are backed by Bernanke puts

Thu, 05/05/2011 - 14:32 | 1244275 Cdad
Cdad's picture

It also means that HFTs are no longer present in stocks, which means that even the fake liquidity provided by HFTs is no longer there, and we will likely have a far worse flash crash the second Brian Sack loses control of the stock market.

It's coming...the complete disconnect and flash dump.  Today's trading is entirely FUBAR.  Haven't seen anything like this since 2009...just in the other direction this time.  If I can see it, surely the terminators are seeing it, as well.

Helmets on.  Wicked reversals are very near now as levered up long and short ETFs lose their minds.  But I'm sure Mary Schapiro will soon stop her relentless meetings with the criminal syndicate known as Wall Street just in time to not matter.

Thu, 05/05/2011 - 14:34 | 1244298 DoChenRollingBearing
DoChenRollingBearing's picture

Well put, Cdad.

+ 1 oz Au

Thu, 05/05/2011 - 14:30 | 1244277 Cassandra Syndrome
Cassandra Syndrome's picture

Any data on the more liquid components of Money Supply recently? A sudden drop in the past few weeks?


Thu, 05/05/2011 - 14:34 | 1244294 Burnbright
Burnbright's picture

If I recall last M1 and M2 were both up. 

Thu, 05/05/2011 - 14:44 | 1244356 Cassandra Syndrome
Cassandra Syndrome's picture

M0, MB, M1 and the liquid elements of M2 have perfectly lead the grouped commodity prices for the past 2 years.

If MS is still going up, then what happened today?

Thu, 05/05/2011 - 14:30 | 1244282 Jack Sheet
Jack Sheet's picture

Guess I can shower with hot water again this month

Thu, 05/05/2011 - 14:35 | 1244289 mynhair
mynhair's picture

Has the jobs report been leaked already?

Thu, 05/05/2011 - 14:46 | 1244344 SheepDog-One
SheepDog-One's picture

Its Thursday afternoon, so yes definitely the ADP report has been released and pre traded by the criminal syndicate. Wow it must be a doozy.

Thu, 05/05/2011 - 14:36 | 1244291 WineSorbet
WineSorbet's picture

Hmm, seems like that GS commodities call not too long ago is coming to fruition.  Ah, the bankers win again. 

Thu, 05/05/2011 - 14:34 | 1244295 fiatspyder
fiatspyder's picture

But .. but .. but ... I thought you guys said silver was going to $100!

Thu, 05/05/2011 - 14:38 | 1244314 tmosley
tmosley's picture

No-one said it would be a smooth ride.

Paper silver might not make it there, but physical sure will.

Thu, 05/05/2011 - 14:40 | 1244332 Thunder Dome
Thunder Dome's picture

This smash is getting so ugly I'm starting to feel bad for all the ignorant silver bugs.

Thu, 05/05/2011 - 14:47 | 1244355 SheepDog-One
SheepDog-One's picture

I love it! I consider it an extra free oz per $100 fiatsco bill!

Thu, 05/05/2011 - 14:48 | 1244358 homersimpson
homersimpson's picture

I've seen worse.. like starting in Sept 2008. Regardless, most PM bugs don't feel bad for the dumbass trolls that either missed the ride the last 7 months or still fail to realize most ZH readers who have been here a while have made more than enough on silver to ride out this artificial shakeout.

Thu, 05/05/2011 - 14:51 | 1244385 tmosley
tmosley's picture

Exactly.  Most silver bugs have a super low cost basis, and would only use a dip below that cost basis as an opportunity to lower it.

Christ, if physical metal were available for less than my $16 dollar cost basis, I'd sell my damn house to get at that.

Thu, 05/05/2011 - 15:00 | 1244453 Johnny Lawrence
Johnny Lawrence's picture

Provided you could actually sell your house.

Thu, 05/05/2011 - 15:40 | 1244666 tmosley
tmosley's picture

lol, true.

Thu, 05/05/2011 - 14:49 | 1244370 Hearst
Hearst's picture

In recent times can anyone ever remember a day when Silver would move up $3-$6 per day?  I can't.  And yet on the way down, no problem.  The cocksuckers over at the CME keep releasing reports on why they are increasing the margin requirements.  They keep spouting all this nonsense about volatillity on the way up but they sure don't give a rats ass about volatillity on the way down!  Of course this is because their masters and insider friends are profiting immensely from this crash down just like in 2008. 

Thu, 05/05/2011 - 14:49 | 1244392 tmosley
tmosley's picture

To be fair, that is always the case.  Escalator up, elevator down.

Thu, 05/05/2011 - 16:07 | 1244840 web bot
web bot's picture

If that was the case - divergence between physical and paper, then why isn't Sprott's physical backed bullion trust also dropping a corresponding amount? Their fund is 100% backed and they DON"T LEASE out product.

There is a supply squeeze from the mint to the stores... but there is plenty of silver, just momentarily tight at the consumer end. Make no mistake about it, the coin shops have orders in at $50... and if they can't sell at $50, then they take a loss. They are trying to keep their premiums up until they work through their $50 bullion purchases.

Thu, 05/05/2011 - 16:36 | 1245053 tmosley
tmosley's picture

Any coin shop that has been around since before 2008 is hedged.  If they weren't hedged, this volatility would kill them, and they would be closed half of the time.

Sprott's fund, though supposedly fully backed by silver, is still paper.  Unless every investor can take delivery with a minimum order of 10 oz or so, it will trade like paper, but with a higher premium that is available elsewhere.

Thu, 05/05/2011 - 14:34 | 1244296 BORT
BORT's picture

I wonder how that Texas University feels right now.  You got some splainin to do Lucy.  I went back and looked at some charts.  It appears the energy complex has been in front of big market down moves the last four years

Thu, 05/05/2011 - 14:37 | 1244312 tmosley
tmosley's picture

Why would they feel any differently?  They bought the gold sometime last year, as I recall.  They just recently took delivery of it.

Thu, 05/05/2011 - 14:44 | 1244340 lieutenantjohnchard
lieutenantjohnchard's picture

the crude complex has been very kind to the endowment. they're not the least bit worried. the seed capital for the endowment to become the second largest university endowment came largely from oil, and a whole lotta taxes on the oil by the railroad commission.

plus, they've been long gold for some time. just released the info recently. kyle bass gave their exact cost basis. they're up substantially. plus gold is only down 6.2% from its peak.

Thu, 05/05/2011 - 14:51 | 1244381 tekhneek
tekhneek's picture

Gasoline's $4.17 in Webster, TX -- About 1/3rd of a mile from several oil refineries. It's more expensive across the street from where they make it than it is hundreds of miles away. Explain that to me, please.

Thu, 05/05/2011 - 14:52 | 1244399 tmosley
tmosley's picture

Local taxes, perhaps?

Fri, 05/06/2011 - 09:18 | 1245968 Flakmeister
Flakmeister's picture

Free market... why sell at a relative loss locally? If someone over yonder will pay $4.39.... 

Thu, 05/05/2011 - 14:38 | 1244313 g-money
g-money's picture

I love the media spin on this, at least Bloomberg had it half right they

pointed out that the price drop was due to margin hikes in order to bring the speculators 

under control. Seems to me this is a bold faced attempt to crush the mid sized and little guys as to better control the market by a handful of bigger of players. Widening margins will only hurt those who do not have the cash to stay thus enabling those who can to buy more at a cheaper rate (due to massive selling by the weaker holders) and eliminating the competition. 

Meanwhile the priemum on physical is widening +30% from what I have seen.


Thu, 05/05/2011 - 16:00 | 1244782 Siggy
Siggy's picture

I just bought a few Maple Leafs on Apmex at a 4.2% premium. Is that high?

Thu, 05/05/2011 - 14:41 | 1244320 Thunder Dome
Thunder Dome's picture


Thu, 05/05/2011 - 14:43 | 1244336 nobusiness
nobusiness's picture

Will the CME reduce Silver margin requirements today? No

Thu, 05/05/2011 - 14:46 | 1244350 tmosley
tmosley's picture

They have reduced it ONCE in the last year.

I wonder if a longer term chart of this nature is available anywhere?

Thu, 05/05/2011 - 14:46 | 1244339 Law97
Law97's picture

Seems as if there is a rolling wipeout taking place.  First silver, then gold, then then euro, then oil.  The only asset still virtually untouched are stocks.  We may well be seeing the makings of an historic crash tomorrow.

Thu, 05/05/2011 - 15:11 | 1244486 oogs66
oogs66's picture

I think stocks are just shell shocked today and don't know what to make of the move.  The unprecedented moves are scary but some stock investors clinging to hope that this will take pressure off of margins.  I think it will sink in that something is extremely wrong with all markets and stocks will head much lower.

Thu, 05/05/2011 - 16:38 | 1245081 Smiddywesson
Smiddywesson's picture

The Return of the Bernank...

You will buy stocks.  He will destroy all other markets. 

But, is that legal?

"I will make it legal"

Thu, 05/05/2011 - 14:43 | 1244341 Tracerfan
Tracerfan's picture

Peace has not broken out in the Middle East.


Thu, 05/05/2011 - 14:44 | 1244347 NOTW777
NOTW777's picture

just went by a gas station and prices are up

Thu, 05/05/2011 - 14:46 | 1244352 mogul rider
mogul rider's picture

Huh, John Williams Any comment or did you get so far up your ass you forgot to look macro.


Man the pumpers are everywhere.


Inflation my ass.

USD to .90

Oil retests 35

gold to 1100 or less

silver - bottomless pit from hell full of Elmer Fudd's and Hegdies who were leveraged 10:1 probably who believed the pumpers. That is just downright ugly. I won't even guess where the bottom is on that pig.


But I will have the bus warmed up when it does


Thu, 05/05/2011 - 14:50 | 1244374 SheepDog-One
SheepDog-One's picture

Nothing has changed, Federal Reserve Fiatsco still in a mad pump fest, about to shift into 6th gear, jobs and overall economy a disaster. No, what we're seeing here is the World Currency War just upped a few notches.

Thu, 05/05/2011 - 14:50 | 1244405 lieutenantjohnchard
lieutenantjohnchard's picture

so when you buy will you be a pumper? or will you post that it's still a pig in a bottomless pit?

btw: when you buy does that mean you'll be an elmer fudd, too?

Thu, 05/05/2011 - 14:52 | 1244418 willien1derland
willien1derland's picture

Unfortunately, all these moves could occur by Friday noon & reverse by Monday - welcome to the Ponzi

Thu, 05/05/2011 - 14:48 | 1244362 SheepDog-One
SheepDog-One's picture

Anyone yet consider how bad this pisses off people like the Saudis? And Iran, head of OPEC?

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