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Swiss Safety Sought With Markets Mired In Misunderstanding
There is a lot of strangeness out there today - though that in itself is not so strange anymore. Spanish and Italian (and Portuguese) bond spreads rallied back to only +12bps on the week (but Spain's equity market is rolling over (down 2.5%) into the close. The S&P, Dow, and Nasdaq are all pushing unchanged on the week (ignoring Cyprus) but the Dow Transports is plunging (as FedEx is smashed lower on the biggest volume in 6 months). 2Y Swiss rates have dropped to their most negative in 2 months as safety is chased and we suspect the EUR strength (a 100 pip pop on yesterday's US close) is much more repatriation flows than risk-on confidence flows. US homebuilders are bid (+2.2% on the week) as hope springs eternal for high-beta chasing and a UK housing bailout. European credit markets have not recovered from Cyprus, while stocks... have.
EUR strength - confidence or repatriation flows...
FedEx - huge volume plunge... Confidence inspiring... (accounting for 30 of the Dow Transports 35 point drop)
Europe's fulcrum security - Spanish stocks sold off in the US/EU overlap...
European credit markets are still notably worse than pre-Cyprus, but stocks - all good!!
and the US indices are testing reality once again...
as Homebuilders lead the way...
Charts: Bloomberg
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A total Global fraud by the gangsters running the banking sham!
alas alotta alliteration
"Buy our shit!"
Ignore the noise and keep stacking gold and silver.
http://jimroger.blogspot.ca/
'The important thing is', don't get all mired up in 'misunderstanding'! The Bernank's GOT this shit I tells ya! Don't worry, all funds and life savings and whatnots are perfectly safe in the hands of the Maniacal Monetizers!
Maniacal Monetizers. Perfect.
So, big miss with FedEx....no solution for Cyprus.....stock market soars.
This is getting boring. The central bankers are bailed out by governments, who are themselves kept afloat with new money printed by central bankers, who use the new money to prop up financial markets and use their insider knowledge to boost their earnings, which is used to pay themselves massive bonus's.....savers are crushed, and speculators rewarded.
Where does this all end? At what point does the system vomit and keel over? I am stunned that it has lasted this long.
And to top it all off, there is not one government in the world that dares to stand up for the people....they are all captive to the bankers and organized crime (the same thing I guess). Not one banker has gone to jail....after robbing us of trillions.
why does the system have to vomit and keel over? Why does the market have to decapitate itself and finally lose any shred of confidence it is unsuccessfully trying to inspire?
Maybe the market is finally a broken mechanism that will only benefit very few people? Shit the whole economy is basically designed to benefit the few at this point...maybe the market finally is more representative of reality?
"Maybe the market is finally a broken mechanism that will only benefit very few people? Shit the whole economy is basically designed to benefit the few at this point...maybe the market finally is more representative of reality?"
Now there's a thought. Of course, whether TPTB like it or not - the poor working SOBs need that carrot on the stick or the whole system grinds to a halt. The carrot used to be a house, two cars and nice vacation once a year. Now the carrot is a new iThing and reloading your EBT card.
I remember a 60 mins episode a year ago showing how great disney world was doing. they asked a few families walking in about their vacations. the first family said they saved for 5 years to be able to afford it. Another family said they could not wait to go to epcott center so they could see what Europe was like. the reporter asked them why they did not just go to Europe. They all laughed heartily and said "We are never going to be able to afford to go to Europe!"
at least they had a sense of humor about it.
"Where does this all end? At what point does the system vomit and keel over?"
Honestly, this is about all I really want to know at this point - everything else is trivia.
what if already vomited and pitched 90% of the people overboard and the market represents the few lifeboats left with the rich people safe and secure on them?
Maybe. I won't pretend I'm smart enough to know. Ben has printed four trillion just to get the bubble back to the 2007 highs - that isn't sustainable. FED is just one massive bad bank at this point. Earnings have peaked and unemployment DOA at best. I don't see what the engine is to propel the market higher. 85 billion a month is just enough to hold the balloon in the air... for now.
The Dow followed Transports up, so will probably follow it back down.
"and the US indices are testing reality once again..."
lol
Everybody knows the Dow will +250 once Bernanke speaks. What could go wrong?
Today has nothing to do with the euro, Cyprus, Italian elections, bad FEDEX news, bad Caterpillar news or failed fake rumours. Its all about the bernank and FED tonight and pushing DOW to new super retarded ultra bullish "nothing to see here" all time highs.
ooooo....look at the emperor's new clothes....aren't they so fancy!!!
truly a sign of a bankrupt system, where we hang on the words of the bankers spokesman.
"Well, Bernanke blinked more than usual today, which is a sign that he is nervous about the markets, so we can assume that the Fed will increase money-printing, and this is bullish. Good for 1,000 points today!"
Here's what I would do. Canoe over to a Greek bank from Cyprus, pay the $3.50 fee/penalty for withdrawing from a bank outside of my network and clean out my accounts.
Your Cypriot bank will already have been dis-connected from the data network, and your ATM or Visa card denied.
Too late, Sucka.
No Cypriot bank transactions are taking place, right now.
None.
So foolish to think you are in control.
CHF swaps in all durations are going lower again. That's gonna fuel the domestic real estate market even more.
FYI: We got the Swiss gold initiative eligible for a popular referendum today!
http://www.nzz.ch/aktuell/schweiz/ueber-105-000-unterschriften-fuer-gold...
Background: http://www.pmbug.com/forum/f2/switzerland-referendum-prohibition-gold-sa...
the spanish market is up 1.5%
Short covering in banks and TEF?
FedX and UPS both are complaining the US gubmint now wants all packages snooped on and inspected. Hit to the bottom line as well. We know Gov.co is OK with laundering drug money (HSBC) so maybe they want to eliminate the threat of small amounts of PMs and currency leaving the country. WWAD?
What Would Argentina Do?
What Would Argentina Do?
Nationalization of Fedex and UPS due a takeover by the USPS.
The new FedX offices are very nice now. They appear to be competing with Romney's Staples but with the benefit of immediate shipping on site. Doesn't seem to help much when there is no shipping taking place.
The sooner we get rid of the FED and the rraitors in Washington and take the country back the better. Who wants to live in a world without a country to protect them from the globalists and the Council of Foreign invaders, Jamie Dimon, Eric Holder and Lord Bankfeind.