This page has been archived and commenting is disabled.

China Interbank Market Freezes As Overnight Repo Explodes To 25%

Tyler Durden's picture


It seems liquidity (or counterparty mistrust) is beginning to reach extreme levels in China as the nation's banking system is now quoting overnight repo transactions at 25%. The explosion in funding costs echoes the collapse in trust (and surge in TED spread) among US banks in the run-up to the Lehman bankruptcy. MSCI Asia-Pac stocks are down over 3% with China's Shanghai Composite -2.5% at seven-month lows.

  • China’s 1-day Repo Rate Climbs to Highest Since at Least 2006

China's bond market is also collapsing:

Yield on 3.1% govt bonds due January 2016 jumps 39 bps to 3.749%, biggest rise since notes were issued in January

China this week...


US in the run-up to Lehman...


Charts: Bloomberg


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 06/19/2013 - 23:27 | 3674083 ekm
ekm's picture

The pyramid scheme is running out of suckers. That's it.


A pyramid scheme can only collapse, it cannot unwind

Wed, 06/19/2013 - 23:36 | 3674112 King_of_simpletons
King_of_simpletons's picture

This is the part left out in Keynesian Economics 101 and covered in Austrian Economics 801. A little chapter called "Disaster".

Wed, 06/19/2013 - 23:47 | 3674138 Atlas_shrugging
Atlas_shrugging's picture

people.  relax.  trillion dollar coin.  nuff said

Thu, 06/20/2013 - 00:10 | 3674175 markmotive
markmotive's picture

Say what you will, but Jim Chanos has been raising red flags about China for a long time now.

Thu, 06/20/2013 - 04:00 | 3674381 James_Cole
James_Cole's picture

Anyone else watching the freefall in gold/silver right now? Brutal!

Thu, 06/20/2013 - 04:03 | 3674385 e-recep
e-recep's picture

players are selling paper, going for cash. 

Thu, 06/20/2013 - 05:48 | 3674442 Max Damage
Max Damage's picture

What paper cash ;)

Thu, 06/20/2013 - 06:06 | 3674468 Spider
Spider's picture

Well check out US 10 yr and 30 yr jumping by 2+ percent overnight.  Somethings broken...

Thu, 06/20/2013 - 06:11 | 3674472 fonzannoon
fonzannoon's picture

nothing is broken spider. we are settling in around 2.5% which is about right based on the pick up in economic growth. EM and high yield may crash, but after a slight selloff in stawks everyone will come in and scoop em up.

thats the meme and get used to it because they are going to beat you over the head with it.

Thu, 06/20/2013 - 06:33 | 3674485 Spider
Spider's picture

Its not the absolute level - its the volatility. 

Thu, 06/20/2013 - 06:56 | 3674490 fonzannoon
fonzannoon's picture

agreed, and treasury volatility will simmer down around here. other asset classes (pretty much anything else in credit) not so much.

But look at stocks. nice and calm.

I understand the junk. this is giving me an ulcer. 

Thu, 06/20/2013 - 07:22 | 3674547 RuiNsPro
RuiNsPro's picture

Would this be enough to finally bust the "China" hype?

Fri, 06/21/2013 - 01:21 | 3678251 papaclop
papaclop's picture

Maybe he meant paper gold. Try and find physical under 1325.

Thu, 06/20/2013 - 05:56 | 3674451 mt paul
mt paul's picture

silver just went sub 20 $

Thu, 06/20/2013 - 05:30 | 3674426 spinone
spinone's picture

But whos going to make all my cheap crap?

Thu, 06/20/2013 - 00:13 | 3674188 Oh regional Indian
Oh regional Indian's picture

Any straight thinker with an eye for history can see all the pieces falling in place for a general clampdown on borders, physical and now electronic that always precede a general break out of hostilities.

Everywhere, ME, Brazil, Japan, China, Fast asleep India, slowly being re-raped Africa.... things are coming to a head.... at some point, internal strife will be given a new bugbear, a furryner, the outsider, the jew, the despot across the border, US vs. Them....

War, it's what for dinner, like or hopefully NOT.

It is a jaggernaut, China too, but more so this slow unfoldment of rage... all manufactured....

Plenty of humans, very little humanity




Thu, 06/20/2013 - 02:24 | 3674328 icanhasbailout
icanhasbailout's picture

so.... good times?

Thu, 06/20/2013 - 02:51 | 3674339 Harlequin001
Harlequin001's picture


Thu, 06/20/2013 - 03:26 | 3674362 monkeyboy
monkeyboy's picture

Thanks for the simple expranation in Engrish boys.

Thu, 06/20/2013 - 01:18 | 3674281 Fox Moulder
Fox Moulder's picture

Gonna need a bigger coin.

Thu, 06/20/2013 - 02:23 | 3674326 Tsunami Wave
Tsunami Wave's picture

So then what are the chances of a bank collapse?  Aside from this looking like LIBOR circa 2008-9, and regional stock markets & currencies dropping (along with all asset classes getting hammered), this makes liquidity issues look like only the start. 

It might be too late for China to do a rate-cut or get anything together to loosen credit/liquidity.

Thu, 06/20/2013 - 08:13 | 3674671 Bindar Dundat
Bindar Dundat's picture

coin(s)  at least twenty...

Wed, 06/19/2013 - 23:48 | 3674140 knukles
knukles's picture

Whose better at this than I am?
Been sayin' this stuffs gonna happen post haste.

Just you people wait.
Benji screwed the pooch.
World wide economies are sick, sick, sick...
Otherwise wouldn't have kept the Buy & Print open 24/7/365

So all's he's got's left is suppressing rates further, particularly LONG rates (viz Operation Tittytwister) and
Goosing stock prices

And Look what Ben Wrought
Just when you thought it was OK to get your pecker back in that babe again, you find she already gave you AIDS

Fucking Disaster

Mark my words
They're gonna be printing and monetizing everything inanimate till hell freezes over to compensate for this shit.

You ain't seen nothin' yet, folks!

Oh it's crisis time again,
I'm gonna see it,
I can see the look of panic
In your eyes
If the world starts unraveling around us
Benji and the boys
Will print

Until they die


La la la la

I can't wait for Maria Buttaroma tomorrow... gonna be a hoot!
But unfortunately, I'll be golfing.

Thu, 06/20/2013 - 00:05 | 3674165 LetThemEatRand
LetThemEatRand's picture

The answer my friend, is blowin' in Warren

The answer is blowin' Warren.


Thu, 06/20/2013 - 00:09 | 3674174 lewy14
lewy14's picture

I thought it was Becky, not Maria.

[Anybody done any decent fanfiction on this topic? Who knows it could be the next 50 Shades...]

Thu, 06/20/2013 - 06:51 | 3674497 MisterMousePotato
MisterMousePotato's picture

knukles, you ignorant slut. Everyone knows it's the Print & Buy.

Thu, 06/20/2013 - 00:28 | 3674215 Hulk
Hulk's picture

Simma Down Now Knukles, you be scarin the childrens...

Thu, 06/20/2013 - 00:44 | 3674240 AR15AU
AR15AU's picture

Amen, brotha...

My first post in years!  And it goes to Knuckles.

Thu, 06/20/2013 - 07:06 | 3674513 CheapBastard
CheapBastard's picture

Panic and Print will be their mantra just like last time when Hank P got up there, trembling with quivering voice warning the mushrooom cloud over the financial world if we don't Bail'm out. Then followed four of the most Glorious Banker Bonus years in the history of Mankind....while the rest of the Nation has sunk deeper into recession.

Bankers cannot stand deflation....printing is their lifeblood so QE (or whatever they call it in whatever form) will certainly continue for the next several years...maybe for the rest of my life. Stock markets and the Housing Bubbles will still see a correction but maybe ben can limit it to a 30-40% drop, or less.

Thu, 06/20/2013 - 00:16 | 3674193 kchrisc
kchrisc's picture

Actually it is called the "crackup boom" by Mises. And who says Austrians are boring?!

The expectation of a general progressive upward movement of all prices does not bring about intensified production and improvement in well-being. It results in the "flight to real values," in the crack-up boom and the complete breakdown of the monetary system.

Thu, 06/20/2013 - 00:33 | 3674219 Strut
Strut's picture

It’s about fucking time... Can we get this impending collapse shit underway already? My food stockpiles are nearing their expiration dates.

Thu, 06/20/2013 - 01:00 | 3674250 LetThemEatRand
LetThemEatRand's picture

If the cans are flat, and heavy, and the seams are intact, they are okay.   

Thu, 06/20/2013 - 05:27 | 3674424 Wile-E-Coyote
Wile-E-Coyote's picture

Yes I read somewhere recently that on a revisit to Scott's Antarctica base camp they found tinned meat that was still edible, though it would have lost some taste and nutrients over time. It is how you store the cans that is important.

Thu, 06/20/2013 - 06:59 | 3674507 MisterMousePotato
MisterMousePotato's picture

There were also bottles of whiskey there, too. I remember at the time reading that they would be put up for auction (with fantasmagorical estimates), but I never heard a word thereafter. Bet those .GOV fuckers drank it all.

Thu, 06/20/2013 - 07:29 | 3674567 Maxter
Maxter's picture

Average antarctica temperatures are below 0 C.  So I guess that might have helped them a bit with conservation.

Thu, 06/20/2013 - 01:17 | 3674279 zhandax
zhandax's picture

FIFO,  it's what's for dinner

Thu, 06/20/2013 - 01:31 | 3674295 ironsky
ironsky's picture

Tell me about. Eating canned carrots with everything.

Thu, 06/20/2013 - 04:28 | 3674398 giggler123
giggler123's picture

Y'r supposed to be eating it anyway, replacing it with new when eaten.  Don't forget they'll get you with their leaching BPA canned products anyhow so is it really worth it?

Thu, 06/20/2013 - 03:37 | 3674370 mick68
mick68's picture

Game of musical chairs between countries with each trying not to be the first one to fall. 

Thu, 06/20/2013 - 06:04 | 3674464 Bangin7GramRocks
Bangin7GramRocks's picture

Gandolfini was about to blow the lid off the whole scheme so they silenced him. Beat that for a new conspiracy!

Thu, 06/20/2013 - 11:54 | 3675485 Winston Smith 2009
Winston Smith 2009's picture

"A pyramid scheme can only collapse, it cannot unwind"

But isn't a collapse just a very, very fast unwind?  Besides, I'm a PhD doctor, Jim, not an economist. -- Ben "Bones" Bernanke

Wed, 06/19/2013 - 23:28 | 3674088 Never One Roach
Never One Roach's picture

How do you spell relief?



Wed, 06/19/2013 - 23:31 | 3674101 MeMadMax
MeMadMax's picture

Pepto works great too.

Wed, 06/19/2013 - 23:48 | 3674139 flacon
flacon's picture

Johnnie Walker Black Label. 


Here's me at my trading terminal.

Wed, 06/19/2013 - 23:53 | 3674151 otto skorzeny
otto skorzeny's picture

no ZH on that screen?

Thu, 06/20/2013 - 07:02 | 3674510 MisterMousePotato
MisterMousePotato's picture

My mother told me that she actually prefers JW red to black, which makes me wonder. (Doesn't black cost twice as much as red?)

'Course, she lives in Maine, which, because .GOV sells booze, price may be a significant factor. Probably affect my tastes, too.

Thu, 06/20/2013 - 05:26 | 3674423 Wakanda
Wakanda's picture

Left hand for Johnnie Walker - Right hand for buy/sell button

Now thats a system I can understand.  : - >

Wed, 06/19/2013 - 23:47 | 3674137 Scro
Scro's picture


Thu, 06/20/2013 - 07:31 | 3674574 Martial
Martial's picture

Or, what do you call a homo in a wheelchair?



Wed, 06/19/2013 - 23:29 | 3674089 LetThemEatRand
LetThemEatRand's picture

And there is NO connection between the sudden Chinese crisis and Snowden.  None.  So please please move along and go see that nice man with the body armor.

Wed, 06/19/2013 - 23:41 | 3674127 Tulpa
Tulpa's picture

The PRC has been heading for a crash for quite some time.  Not sure how you think the Snowden debacle could have precipitated a liquidity meltdown.

Wed, 06/19/2013 - 23:46 | 3674132 LetThemEatRand
LetThemEatRand's picture

Because their dealer is pissed.  Snowden is a potential game changer.  You don't need a large percentage to change the paradigm.  

Wed, 06/19/2013 - 23:51 | 3674147 Matt
Matt's picture

New rule: All new conspiracy theories shall be assumed to be true, until proven false, since the average rate of conversion from theory to fact is greater than 50%.

Thu, 06/20/2013 - 00:21 | 3674154 LetThemEatRand
LetThemEatRand's picture

The people are presumed innocent (so say the Founders) and only their peers (not the King in secret Court) may find him guilty. In the days of Kings and Queens this made sense and was urgently needed to be committed to writing.  Today as well.

Thu, 06/20/2013 - 07:03 | 3674512 MisterMousePotato
MisterMousePotato's picture

@Matt. You are smarter than a lot of us. Bon mot.

Thu, 06/20/2013 - 08:11 | 3674664 Race Car Driver
Race Car Driver's picture

Yeah ... the words are still there. They mean what they mean. In the meantime, they don't mean shit to TPTB ... because they're only words - not sticks or stones. Sticks and stones - and guns and bombs - are what TPTB use to communicate with the serfs and keep them in line. It's always been such.

Kings and Queens have always been psychopathic bullies. The serfs have always outnumbered them and could topple them anytime they want - but they:

a) don't have the drive or kill instinct because they aren't psychopaths and mostly just want to be left alone

b) usually wind up attaching their fate and future to Kings and Queens (see: Welfare). Don't bite the hand that feeds - even if it beats from time-to-time.

c) have family members and neighbors who work as the Kings men and women - and it just isn't right to start killing family and neighbors in trying to get to the King.

d) don't perceive the psychopaths to be the cause of their problems because their problems are local and the King lives a ways off. The serfs become so mired in toil to pay taxes and keep the chicken coop and garden plot maintained that they can't focus on much of anything else. 

And it's still that way today, just bigger and more refined. The serfs can still scrub their society and culture clean - start over if they wanted - but most can't think of a reason to do so or just don't have the means, energy or inclination to start. The toxins produced by TPTB and introduced into the environment via processed food and other methods only help to make matters worse for the serfs. Seems everyone I talk to these days has some type of memory problem among other weird health issues. Auto-immune diseases are running rampant and new viruses are cropping up seemingly daily.

Sure, the BOR is composed of important words - but by themselves they don't mean much of anything without action ... or when the K&Q's say that other words, like the Patriot Act and NDAA are the words that now matter and will be acted on.

The serfs will always be fucked because the minority of psychopaths keep it that way. The only time the psychopaths get a beat-down is when God shows up to do it.

Nothing new under the sun.


Thu, 06/20/2013 - 12:00 | 3675509 Winston Smith 2009
Winston Smith 2009's picture

"The serfs have always outnumbered them and could topple them anytime they want"

Don't forget the calming effect of the middleman, religion, who was allowed to share power with kings for that very reason.  "Don't revolt, serfs, you'll get your reward in heaven and 'they' will fry in hell."  Same shit, different day...

Thu, 06/20/2013 - 00:05 | 3674167 prains
prains's picture

after 9/11 the theory to trooth is almost batting 1000

Thu, 06/20/2013 - 00:28 | 3674214 Tulpa
Tulpa's picture

Snowden isn't going to amount to a drop in the bucket.  He threw away his life for nothing.

Anyone who was paying attention (sadly, not most Americans) already knew that the NSA was spying on phone calls and emails.  Hell, BO himself was trying to score political points on the Bush NSA's misbehavior back in 2007.  It's the epitome of old news.  All that the latest revelations have done is produce some uncomfortable moments for members of the administration because they can't plausibly deny anymore. You'd have to be on crack to think this is going to mean the end of the spying program(s); other than that I'm not sure what the people here are hoping for as an effect.

This isn't a Hollywood movie; "getting the word out" about govt misdeeds is not enough, because most people don't give a crap as long as they can eat all the cheeseburgers they want and Dancing With The Stars isn't preempted by some boring news story.

Thu, 06/20/2013 - 00:31 | 3674223 LetThemEatRand
LetThemEatRand's picture

Go get fucked.  By yourself you fucking fuck.  Jesus is this really the best you fuckers can do?  "It was already known so who cares?"

Thu, 06/20/2013 - 00:36 | 3674229 Tulpa
Tulpa's picture

Which is not what I said.  I said that it's not going to have any lasting effect because the people who are finding out because of ES mostly don't care.  What effect do you think it's going to have?  So far all you've got is vague innuendo and obscenities, which isn't enough.

Thu, 06/20/2013 - 00:41 | 3674235 LetThemEatRand
LetThemEatRand's picture

May I be repetitive?  Go fuck youself you fucking fuck.  NSA much?

Thu, 06/20/2013 - 00:40 | 3674236 otto skorzeny
otto skorzeny's picture

Ooooo- cat fight.

Thu, 06/20/2013 - 00:47 | 3674242 LetThemEatRand
LetThemEatRand's picture

Says the pussy.

Thu, 06/20/2013 - 04:56 | 3674411 Gavrikon
Gavrikon's picture

You are what you eat.

Pussy!  It's what's for supper!

Thu, 06/20/2013 - 00:37 | 3674230 prains
prains's picture

No LT it gets better, it's NEEDED, so they con stop the trrrrists, just like they did in Boston, you know the trrrrrists that were folied in their plot because the USofNSA had been watching everything for everyones good

Thu, 06/20/2013 - 00:43 | 3674238 LetThemEatRand
LetThemEatRand's picture

Damn straight.  It works because we said so.  Now go eat your Boston Marathon bombing meat.  Because if you don't eat your meat, you can't have any pudding.

Thu, 06/20/2013 - 00:58 | 3674253 prains
prains's picture








Thu, 06/20/2013 - 01:01 | 3674256 LetThemEatRand
LetThemEatRand's picture

And work.  Shall set you free.

Thu, 06/20/2013 - 01:11 | 3674270 Ignatius
Ignatius's picture

It seems to have worked in my case, being retired and all.

Thu, 06/20/2013 - 01:23 | 3674290 LetThemEatRand
LetThemEatRand's picture

Imagine what it will be like when Medicare doesn't exist.  Or do you have a pension with insurance?

Thu, 06/20/2013 - 01:37 | 3674302 Ignatius
Ignatius's picture

No, no insurance, I'm goin' 'naked'. 

Also, a personal decision and explicit instructions to my son not to hand what little I've accumulated go to the American Medical Mafia at the end.  You know, "On a long enough timeline...."

Thu, 06/20/2013 - 05:55 | 3674450 fiftybagger
fiftybagger's picture

+ 30 more years

Thu, 06/20/2013 - 04:00 | 3674380 Overflow-admin
Overflow-admin's picture



Uh, double post with LetThemEatRand 

Thu, 06/20/2013 - 04:12 | 3674388 RabidLemming
RabidLemming's picture

it has more impact when written in the original NAZI.

Thu, 06/20/2013 - 12:04 | 3675516 Winston Smith 2009
Winston Smith 2009's picture




Hmmm, where have I heard that before.

Thu, 06/20/2013 - 00:54 | 3674248 Ignatius
Ignatius's picture

Look for the interview with NSA whistleblower Russ Tice currently available at 'boilingfrogspost', but to be released to the web by this weekend.  A mind blower of who's been wiretapped and by whom.

Thu, 06/20/2013 - 03:57 | 3674376 Overflow-admin
Overflow-admin's picture

Yes there's one:


Wed, 06/19/2013 - 23:29 | 3674093 infiniti
infiniti's picture

Meh. It came back down, you changed the chart. The only question is how many Nikkei futures contracts should one buy?

Thu, 06/20/2013 - 00:29 | 3674216 UP Forester
UP Forester's picture

You might as well buy them all, it's fun to pick up pennies in front of mushroom clouds!

Thu, 06/20/2013 - 07:23 | 3674553 StychoKiller
StychoKiller's picture completely red, except for Cotton & the Dolla.

Wed, 06/19/2013 - 23:30 | 3674094 inevitablecollapse
inevitablecollapse's picture

Pretty apropos IMO - The Doors :: The End

Wed, 06/19/2013 - 23:30 | 3674095 The Shootist
The Shootist's picture

Lehman? I'll believe it when I see it. U.S market still calls the shots.

Wed, 06/19/2013 - 23:32 | 3674105 kliguy38
kliguy38's picture

and they will continue........until they don't....and if you think you're going to be given advanced warning 

Wed, 06/19/2013 - 23:33 | 3674110 The Shootist
The Shootist's picture

Im just being contrarian because ZH posts stuff like this every day and the criminals keep playing their bankster games without consequence.

Thu, 06/20/2013 - 00:15 | 3674192 lewy14
lewy14's picture

Fair point. But this one looks interesting.

The US market action today looked interesting, too. The asset which seemed to do quite well today was... cash money. 

If there is something the ZH "house view" has in common with the Keynesian orthodoxy, it is that omg don't hold cash. Because inflation. And because shut up.

The disagreement concerns simply which assets to buy.

We Were All Muppets Today.

And tomorrow and tomorrow and tomorrow...

Wed, 06/19/2013 - 23:33 | 3674107 ekm
ekm's picture

US repo market is the same as the chinese one, but in a larger scale, it's a pyramid scheme which ran out of suckers in 2008 but managed to make the Federal Reserve as the SUCKER IN CHIEF

Thu, 06/20/2013 - 01:59 | 3674320 SDShack
SDShack's picture

Ga Dam U Mongolian Bernake, you tear down my shitty Repo Wall!

Thu, 06/20/2013 - 00:08 | 3674153 DormRoom
DormRoom's picture

Nope.  US doesn't call the shots.  Rehypothecated chains are global, and systemic. China is the epicenter of copper rehypothecation. What happens when you need to claim assets, and discover everyone has a claim.  You trust no one, and demand more yield to offset risk.


There's not enough safe collateral in the world to back up the fungible money from Central Bank printing presses.  It's likely a lot of rehypothecated chains were created on finite safe collateral.  Classic pigeon hole problem. 


However, the assymetry of trades (folks stagger wages, and exit all once) can turn rehyptothecated trades into leveraged doomsday plays, as everyone wants to exit their position concurently.


Wed, 06/19/2013 - 23:32 | 3674102 booboo
booboo's picture

Polish Firing Squad. "Ready, fire, aim"

Wed, 06/19/2013 - 23:36 | 3674114 russwinter
russwinter's picture

A Chinese bank run will prompt one of the greatest precious metals short squeezse of all time.

Wed, 06/19/2013 - 23:36 | 3674119 robertocarlos
robertocarlos's picture

In the end it's always the fucking bankers that don't trust each other and the system dies.

Thu, 06/20/2013 - 01:01 | 3674255 prains
prains's picture

kinda like crime syndicates when they don't trust each other

Thu, 06/20/2013 - 01:32 | 3674296 Northern Lights
Northern Lights's picture

.........................and start sending out their "little people" sons' to meet with the heads of said families in hopes of ironing out the issues, only to find that when son returns from washroom, he's now got a 45 in his hands and he starts wiping out the other heads sitting at the table enjoying their eggplant parmigania.

Wed, 06/19/2013 - 23:39 | 3674124 Element
Element's picture



a n d   F U C K   Y O U   t o o   M a o!

Wed, 06/19/2013 - 23:40 | 3674125 whisperin
whisperin's picture

When does the shooting start?

Wed, 06/19/2013 - 23:42 | 3674130 LetThemEatRand
LetThemEatRand's picture

In the "new normal," it started already.  The bankers would MUCH prefer a shooting war to the war that has started.  They don't get hurt in a shooting war.

Thu, 06/20/2013 - 00:09 | 3674173 prains
prains's picture

a shooting war helps the bankers GDP, making Good Dead People and leaving the bad to continue ass fucking whats left of the world

Thu, 06/20/2013 - 00:21 | 3674206 Colonel Klink
Colonel Klink's picture

Let the shoosting begin!


Wed, 06/19/2013 - 23:44 | 3674133 Mad Max
Mad Max's picture


Wed, 06/19/2013 - 23:47 | 3674136 chump666
chump666's picture

Wow a China crash, watch those USTs!  Global bond dump is primed.  This is actually really bad, China crashes, sends up the 30yr on mortgages.  Will wipe out the so called housing recovery, tightening liquidity in the US - stocks crash, yields blowout and Detroit is the name of the game.


Wed, 06/19/2013 - 23:52 | 3674149 Element
Element's picture

Detroit should go the IPO route ... what have they got to lose? ... they could make trillions in a market like this

Wed, 06/19/2013 - 23:54 | 3674150 TruthInSunshine
TruthInSunshine's picture

The downside to seeing the moment most sheeple realize Bernanke is full of shit & has no effective means left to control bond yields (and the core interest rate structure in the real world, as deemed appropriate by Mr. Market) is that there will be shit hitting the fan and much collateral damage already taking place.

Thu, 06/20/2013 - 00:11 | 3674182 prains
prains's picture

sure hope the PBC printers aren't made in China, they'll be running hot for awhile

Thu, 06/20/2013 - 05:44 | 3674440 merizobeach
merizobeach's picture

How long until Bernanke starts wearing a cape and a spandex suit with a big 'B' on the chest?

Wed, 06/19/2013 - 23:50 | 3674145 TulsaTime
TulsaTime's picture

Probably not long now.  China meltdown will bleed to Japan, to Europe, then the US.  How many electro dollars will be wiped out in this crash I wonder? Trillions, with a T.....

Wed, 06/19/2013 - 23:54 | 3674152 Golden_Rule
Golden_Rule's picture

hmmm... did Bass factor a Chinese credit crunch into his Japanese timeframe?

Thu, 06/20/2013 - 00:00 | 3674160 Mike Cowan
Mike Cowan's picture

I still like Singapore.

Thu, 06/20/2013 - 06:02 | 3674460 Bokkenrijder
Bokkenrijder's picture

So do I, especially Ipanema! :-P

Thu, 06/20/2013 - 00:02 | 3674161 ekm
ekm's picture

What if....chinese have accepted to be the next Lehman in order to clean the system?


Remember, Lehman was all  preplanned



Thu, 06/20/2013 - 00:03 | 3674164 The Shootist
The Shootist's picture

They would need a lot of gold and stolen technology.

Thu, 06/20/2013 - 00:06 | 3674166 ekm
ekm's picture

Just a couple of major banks and few millions of people losing savings.

Now it's China's turn to take the hit and what is more important,,,the blame.

. If there is something really global, that's the financial system


It will affect the fin systen in the west also

Thu, 06/20/2013 - 00:08 | 3674170 ekm
ekm's picture

As far as I remember, Lehman wiped out 100 trillion in notional derivatives.

This one may double or tripple that if my speculation comes out true

Thu, 06/20/2013 - 00:10 | 3674180 Clowns on Acid
Clowns on Acid's picture

I wonder if the China repo rates rising to 25% will "puzzle" Bernanke

Thu, 06/20/2013 - 00:12 | 3674185 ekm
ekm's picture

Bernanke "puzzled" = he is the one who caused it

Thu, 06/20/2013 - 00:11 | 3674181 kchrisc
kchrisc's picture

How do you say "gremlin" in Chinese?!

Thu, 06/20/2013 - 00:24 | 3674210 Colonel Klink
Colonel Klink's picture


Thu, 06/20/2013 - 00:26 | 3674212 Hulk
Hulk's picture

MogWai Bitchez !!!

Thu, 06/20/2013 - 00:11 | 3674183 Jim in MN
Jim in MN's picture

Boo hoo, PLA corruption spoils gettin vaporized.

I need a tissue....thin veneer of civilization over the iron bootheel.

Boo hoo hoo.

Apple and the rest deserve whatever cornholing they get over there.

Thu, 06/20/2013 - 02:53 | 3674341 Cosmicserpent
Cosmicserpent's picture

Oooh! I bet the hardliner communists have been itching to give Apple and the rest of the western corporations an epic cornholing! In fact this could have been the plan all along!  China could save us all by stringing up some bankers, nationalizing western corporate assets and forcing jobs back to the US.  Mao is dead, long live Mao!

Thu, 06/20/2013 - 00:12 | 3674186 joego1
joego1's picture

Time to hook the equipment trailer to the diesel truck and make a costco run. Could be one of the last runs. God Bless America. Good luck ZH'ers.

Thu, 06/20/2013 - 00:16 | 3674196 The Shootist
The Shootist's picture

'Murica! ;)

Thu, 06/20/2013 - 00:39 | 3674234 otto skorzeny
otto skorzeny's picture

I think about buying shit but figure I'll get it fo free during the SHTF riots.

Thu, 06/20/2013 - 01:08 | 3674266 Tulpa
Tulpa's picture

I just hate it when civilization collapses the day before my payday.

Thu, 06/20/2013 - 00:14 | 3674189 syntaxterror
syntaxterror's picture

In China they'll take any bankster scammers out back to the firing squad. Big difference.

Thu, 06/20/2013 - 01:06 | 3674264 WAMO556
WAMO556's picture

And send the bill for the ammo to the family!

Thu, 06/20/2013 - 00:22 | 3674207 JJ McApe
JJ McApe's picture

guys don't you worry. you should go long stocks nao. a bird twittered that aapl could hit 1234 soon enough.

*cough cough*



Thu, 06/20/2013 - 00:58 | 3674251 syntaxterror
syntaxterror's picture

I'll still take AAPL over stupid shit like priceline, netflix and amazon...

Thu, 06/20/2013 - 00:39 | 3674232 q99x2
q99x2's picture

The Chinese know how to deal with banksters.

Get the cameras ready. Heads are going to roll.

Thu, 06/20/2013 - 01:02 | 3674257 Dr. Engali
Dr. Engali's picture

" we are a bit puzzled by that" may go down in history as the words that finally blew up the system. The moment the Bernank uttered those words rates really started to blow out. Loss of confidence is a bitch.

Thu, 06/20/2013 - 01:41 | 3674305 Schmuck Raker
Schmuck Raker's picture

That was my thought.

"Better to remain silent and be thought a fool, than to speak and remove all doubt."

Thu, 06/20/2013 - 03:00 | 3674345 Cosmicserpent
Cosmicserpent's picture

I just about shit my pants when I heard that! (In a good way since I immediately realized my puts were going to pay off bigtime).  Apparently, Bernake is not enough of a sociopath to pull it off.

Chairsatan is instead, a motherfucking idiot.  We are completely fucked.

Thu, 06/20/2013 - 01:11 | 3674272 HaroldWang
HaroldWang's picture

Not sure why we're not entering full panic mode right about now but I'm sure this will be spun (or not even mentioned) by BubbleHeads. Shit's gettin' serious, folks!

Thu, 06/20/2013 - 01:12 | 3674273 seek
seek's picture

OT, on Hasting's death:

Working on a story on the NSA, contacts Wikileaks, a few hours later his car goes boom in a way seldom or never seen before.

I guess the race is on between the financial collapse and full disclosure...

Thu, 06/20/2013 - 05:50 | 3674443 bunnyswanson
bunnyswanson's picture

Taking down  a  General.

""As part of her job in the National Democratic Institute she had gone to meet a group of Sunni politicians from the Iraqi Islamic Party she was instructed to conducted a training seminar for the Sunni politicians who were located in Yarmouk, a west Baghdad neighborhood where shootings and executions are common.

 and after she did she left in a convoy with her armed guards but just moments later the convoy was ambushed resulting in the death of 28-year-old Andi and three bodyguards. They tried to protect Andi but were outgunned never imagining they would be targets of such cruelty."

Thu, 06/20/2013 - 12:19 | 3675539 Winston Smith 2009
Winston Smith 2009's picture

"Working on a story on the NSA, contacts Wikileaks, a few hours later his car goes boom"

Move along, nothing to see here, just a coincidence.

His car burned only after it hit a tree.  He was probably drugged.  Unless they supect foul play as they should, any toxicolgy tests will probably only include commonly abused recreational drugs.

BTW, here's another recent revelation of a lie:


Thu, 06/20/2013 - 14:33 | 3676014 Winston Smith 2009
Winston Smith 2009's picture

Hastings last article, posted on 7 Jun 2013:

Why Democrats Love To Spy On Americans - Besides Senators Ron Wyden and Mark Udall, most Democrats abandoned their civil liberty positions during the age of Obama. With a new leak investigation looming, the Democrat leadership are now being forced to confront all the secrets they’ve tried to hide.

Once some military personnel, most likely those already socio- or psychopaths, are desensitized to killing other human beings in wars, what do you think would stop them from following through on threats like this?:

Michael Hastings conspiracy theories: Web goes wild after NSA, CIA reporter killed in crash

"Hastings wrote in his book, "The Operators: The Wild and Terrifying Inside Story of America's War in Afghanistan," that he received a death threat from a former McChrystal staff member.

"We'll hunt you down and kill you if we don't like what you write," the staffer threatened, according to Hastings, who calmly responded: "Well, I get death threats like that about once a year, so no worries."

Hastings went on to say: "I wasn't disturbed by the claim. Whenever I'd been reporting around groups of dudes whose job it was to kill people, one of them would usually mention that they were going to kill me."

Thu, 06/20/2013 - 01:27 | 3674292 Schmuck Raker
Schmuck Raker's picture

I can Haz Gold???? Preaze?

Thu, 06/20/2013 - 01:33 | 3674297 Schmuck Raker
Schmuck Raker's picture

In a few moments 'someone' will explain why this reminds them of the US........ waiting........waiting............

Yeah, thought so. There is no comparison. Markets ARE different! It is NOT about "WE", or "THEM". It is not about "First" or "Second"!!


But in the world of commentary you evaluate on a daily basis the most likely area of "discordance(?)".

Thu, 06/20/2013 - 02:22 | 3674325 Central Ohio
Central Ohio's picture

Didn't know what a repo rate was.  Here is definition I found:

"The discount rate at which a central bank repurchasesgovernment securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases reporates (so that banks can swap their holdings of government securities for cash). To contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets themarket determine the appropriate repo rate. Repo is short for repossession."

Thu, 06/20/2013 - 02:57 | 3674343 chump666
chump666's picture

Amusing.  Finally Asia (HK/Shanghai) is down over 2%, we need Europe down over 2%.  Futures are pointing towards a tiny fall.  The market will have to figure out how the Fed can flood China, the problem is, Yuan swaps won't work (make it worst) and no one touches China's bonds.  China's banking system starts to collapse, they will print, but loss of confidence will flow straight into US dollars.  This is a perfect endgame situation.


Thu, 06/20/2013 - 04:00 | 3674379 Awakened Sheeple
Awakened Sheeple's picture

Where's YC when you need him. FRNs are SURGING tonight. Dollar/Yen just hit 98. Gold getting absolutely hammered.

Thu, 06/20/2013 - 04:13 | 3674390 Tenshin Headache
Tenshin Headache's picture

Let me try: "Scramble for liquidity."

Thu, 06/20/2013 - 03:17 | 3674354 resurger
resurger's picture

this is fucking serious.... better double print

Thu, 06/20/2013 - 04:07 | 3674386 dojufitz
dojufitz's picture

Hammer time...Gold & Silver paper price......

Thu, 06/20/2013 - 04:14 | 3674391 e-recep
e-recep's picture

can you hear the echo in JPM's vault?

Thu, 06/20/2013 - 04:15 | 3674392 Sid James
Sid James's picture

It can't be that serious, tanks and parachutes haven't been sent to Africa yet.

Thu, 06/20/2013 - 04:44 | 3674393 PaperBear
PaperBear's picture

Papaer gold down to $1,310/oz and paper silver down to $20/oz.

What a farce these markets are.

Meanwhile panic buying of the physical around the world, especially in Asia.

Do NOT follow this link or you will be banned from the site!