FX Market Opens, EUR Hammered, CHF Bid; S&P To Open -30pts
As Citi's Steven Englander suggested earlier, the developments in Cyprus will lead to EUR selling and USD, CHF, GBP, NOK and SEK buying (in that order). He adds, the issue is whether to believe that the Cyprus levy on depositors is one-off, but depositors and investors elsewhere could easily see this as another in a string of ‘one-offs’ and react badly. The risk-return to depositors in countries with weak banking systems may not favor taking the risk that Cypriot banking system was so unique that such a levy would never be considered elsewhere. The levy on deposits ostensibly covered by deposit insurance may also undermine confidence in weak banks. The question is whether this becomes a full-blown crisis or a mini-crisis. For now, as FX markets open, it appears EURJPY is getting hammered (from 124.47 close to 121.6) implying S&P futures will open down around 30 points. We are sure Abe is watching closely...
Given the element of surprise, it is probably the case that euro zone policymakers will not have concrete measures prepared to convince depositors elsewhere that this will never happen again. So it seems likely in the first instance some resurgence of tail risk will re-appear and that there is a risk that we could see a downward spike in the euro and significant backing up of spreads.
EURUSD has opened and is -140 pips for now...
and CHF is bid...
and all that good jawboning by Carney gone dow the drain... as GBP bid too...
the question is will the Swissie bid on Europe's risk flare recouple the S&P 500 with reality once again... as it did after theItalian election...
and of course everyone's favorite USDJPY...
Leaving us asking 'Is This It?' as a terrible case of deja vu comes over the market once again...
or this?
or perhaps more appropriately this?
Charts: Bloomberg
(31 votes)
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If Cypriots spoke Spanish, they could call their deposit freeze a 'corralito.'
The EU has gone Argentine on us. Just like the Vatican.
Chew on that, bItCHeZ.
Quick, someone dress up Dick Bove's cadaver, so he can tell us it's all peachy, swell, keen.
when did he die?
Sh. Don't tell him.
Every little ting, gonna be all right.
https://www.youtube.com/watch?v=FJd21z7T99g
I am very curious how gold will react. It's either going to get hammered down to $1,560 again or it's going to $1,619. .... I am just afraid of an excuse to hit it down big time.
gold will be up tomorrow. I don't care if the dollar skyrockets. they will both be up. GLD may have to issue more shares to keep up with the demand for pieces of paper...
I plan on donating 100 oz. of silver Wood Bisons to my farm's lake bottom upon delivery.
Ya Gatta Love These Fecking BankSters ...
They Have All Our Paper Fiats On Their HARD-DRIVES, And Can Do Whatever The Fuck They Want With It ...
And The FEDi Has Most Of The Worlds CB's GOLD Burried Under an NYC Street (Just TRY And Get It Back...) ...
All Will Soon Learn That GOLD $50K Is Not That Far Off ...
Expect negative interest rates...like take 10% of your deposits. Everyone expecting bond rates to skyrocket can forget it. Getting zero% is a great return in a deflation...
didn't Goldman recommend buying EURGBP a few days ago?
muppet slaughter continues
After Kevin sobers up from the St. Paddy’s all-nighter, he’ll be buying EUR to bring it back up.
S&P down 30??? I think you mean Dow down 30...PPT now working over the weekends too. This market doesnt look like it wants to fall over anything.
http://www.zerohedge.com/news/2013-03-12/goldmans-stolper-says-go-long-e...
TRIPLE LINDY HEADFAKE...
~~~
Those fucking jews prolly engineered this whole shebang...
1. ISSUE 'GO LONG' reco [to muppets]
2. Haircut Cyprus 'savers'
3. All Hilarity ensues
4. Cover PUTS & go long Euro during panic
5. Hire the PRICEY clown act for Solomon's bar mitzvah [& lavish LasVegasDave a BONUS for cleaning the pool]...
er...duh.
http://armstrongeconomics.com/2013/03/16/forced-loans-they-can-take-you-money-giving-govt-bonds/
Gold popped at the opening -- $1600+
it will do the opposite of what you expect
So expect the opposite, Bitchez !!!
Limit down!!! Followed by bank runs!! Well played EU!! Well Played!!
We demand the deer in headlights!!!
Sorry, the homeless people ate venison last night.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/drag...
I can't think of a clearer confirmation that this is the time to convert any cash you might have in ANY bank and convert it into metals. So given that, if the best form of insurance against the oligarchical thievery that just occurred in Cyprus goes DOWN in price, I'll take that as a gigantic gift.
Only if it is HEAVY METAL
National Socialist Black Metal?
Hah, anyone else singing along ... ?
http://www.youtube.com/watch?v=_2_gOpU0eWU
Regards,
Cooter
Long swastika rounds.
Only if it is HEAVY METAL
What happens to the "cash" I have stashed in a Paypal account? It normally goes to pick up a few PM trinkets now and then. Their lack of a bank charter could come in handy? ...or not?
I wanna rape your gold after this all collapses.
It doesn't matter what gold does.
There is no doubt in my mind that I should keep buying.
If it drops, I'll buy more. I bought recently at about the current price so for now I'm done with shopping unless the price becomes significantly cheaper - then I'd go out of my way to buy more.
Today I expect it to jump to at least $1,610.
http://blogs.telegraph.co.uk/finance/matspersson/100023412/tomorrow-cypr...
Heh..
Right this very second would be a good time to put your hands on your current fiat currency, as it's physical value is about to quadruple.
This is the ONLY time fiat currency has any fungible value, and it DOES NOT last very long.
US will feel this big time.
Lotso fiat gonna move in a fuckin hurry..
thing of it iz yah niggers gonna pay us bankstas come hell or high water.. don't git it fucked up
Every little ting, gonna be all right.
~~~
Turn dat frown upside down, Mon...
Will this be seen as gold positive???
Time to Cyp-RIOT.
He who sells first....
Ben will protect us...sure
When you get zero interest, why leave it in the bank when this could happen. Deposit Insur or not.
From a game theory perspective, don't the banks hold the upper hand to the ECB? The ECB is threatening to cut liquidity lines to Cypriot banks. Personally, I'd call the ECB out on their bluff -- no way they'd allow the contagion that would come from that.
I agree, but you know behind the curtain someone has a gun to their head.
"I play chicken, with the train"
https://www.youtube.com/watch?v=NUPK9z59yUc
I wouldn't be surprised if the "politicians" come out randomly with "positive spin" headlines to cause spikes in these markets to burn any shorts. That's what usually happens.
Cue Europe-wide "Short selling bans" tomorrow.......
Never short positive rhetoric.
that's what they usually do
+1
It's pretty hard to spin "We chose to screw depositors rather than the politically connected debt risktakers."
The level of understanding will permeate the next stubborn layer, even if decision makers pull back from the plan by Wednesday. They've revealed the next in line to lose after all state-owned collateral has been pledged.
It is also revealing that this drastic action came before meaningful budget and public spending cuts.
Air pocket, Bitches.
Don't worry Kevin Bacon is on crowd control:
http://www.youtube.com/watch?v=zDAmPIq29ro
Thank you sir, may I have another?
"Assume the position"
youtube.com/watch?v=qdFLPn30dvQ
Assume the postion folks, it's coming.
Here ya go... Fraternity Paddle