Emerging Market Meltdown Resumes

Tyler Durden's picture


As South Africa hiked rates this morning (whose effect on the Rand was promptly overwhelmed by the Lira collapsing back to weaker than pre-rate-hike) stock markets around the world are rapidly deteriorating and the safety of bonds and bullion is being sought aggressively. S&P futures are -10 from pre-Turkey; Dow -100; Nikkei -30; and EEM swung from up over 2% to down almost 1% in the pre-open. Treasuries are 6bps tighter than post-Turkey and gold (and silver) are rallying smartly back up to $1268 (+$20 from post-Turkey lows). It would seem EM turmoil is un-fixed. Turkish stocks are collapsing and the Hungarian Forint is collapsing.

Dow and Nikkei have given it all back...


as have Emerging Market stocks...


As Turkish stocks collapse...


European Stocks are tanking...


and the contagion spreads to other currencies...


As Emergening Market CDS explode...


S&P futures are getting slammed...



Bonds are surging...


and so is gold...


We can't help but see the irony of this tumult and the possibility of a global financial meltdown occurring on the day of Bernanke's last FOMC meeting...

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Wed, 01/29/2014 - 09:55 | 4379345 Xibalba
Xibalba's picture

Whoever sold those vix calls is gonna get killed

Wed, 01/29/2014 - 09:58 | 4379364 devo
devo's picture

Whomever sold those vix calls is gonna get bailed out.


Wed, 01/29/2014 - 10:05 | 4379389 Occident Mortal
Occident Mortal's picture

Well my trade which I was touting all of December is looking good today.


Short DOW at 16,000 

Long Gold at 1,220


This was the best opportunity in a long time. Both trades are off 20 year trendlines.

Wed, 01/29/2014 - 10:07 | 4379403 eclectic syncretist
eclectic syncretist's picture

If the markets are making some sort of attempt to force Yelanke's hands, they are really going to rock some accounts when the Fed tightens today.

Wed, 01/29/2014 - 10:14 | 4379422 aint no fortuna...
aint no fortunate son's picture

Is this what it looks like when the world's central banks start losing control?

Because if so, it's gonna make 2008 look like a walk in the park and there will be no rock big enough for those miserable cretins to hide under

Wed, 01/29/2014 - 10:37 | 4379477 Headbanger
Headbanger's picture

But should this be such a surprise!?  All here knew many months ago this implosion would happen but the reality of it wasn't believed just like wars aren't until they happen.

Well,  it's finally here now!



From Daneric's blog

Wed, 01/29/2014 - 10:49 | 4379561 Oh regional Indian
Oh regional Indian's picture

Doomer Chart porn and if you are so inclined, I think it is going to get worse, then better, then beware the ides of march or the middle of February (Sochi, UK gov is SURE somethign will happen there....how do they know?)....But 20th MArch is their War date.....

Shades of 2003 in the air, irrationality abounds...



Wed, 01/29/2014 - 11:16 | 4379661 SAT 800
SAT 800's picture

Yes. next question please.

Wed, 01/29/2014 - 10:15 | 4379434 TruthInSunshine
TruthInSunshine's picture

"We can't help but see the irony of this tumult and the possibility of a global financial meltdown occurring on the day of Bernanke's last FOMC meeting..."

Go in pieces, Bernanke.

Shabbat Shalom, motherfucker.

Wed, 01/29/2014 - 10:16 | 4379441 Occident Mortal
Occident Mortal's picture

I think attempting to influence the Fed by moving the market is probably the most ridiculously expensive and wasteful idea I have ever heard.


How much money does it take to move the FX universe 100bps? More than the GDP of Switzerland.


You do not direct capital at the market to try and budge the policy makers, you direct it at their pocket. 

Wed, 01/29/2014 - 10:22 | 4379455 new game
new game's picture

shoots across the bow! retaliate, econ war has broke out- thanks ben, nice job! you can only fuck the world over so long befor intended consequence start what we have right now. dump treasuries if you want a real econ war. force the hand that slapped you. gold baby gold...

Wed, 01/29/2014 - 10:58 | 4379603 Silver Garbage Man
Silver Garbage Man's picture

It makes sense when you know the difference between money and wealth.

Wed, 01/29/2014 - 10:26 | 4379466 new game
new game's picture

nice-i'm cheer leading a no brainer with a timing risk..

Wed, 01/29/2014 - 10:02 | 4379366 Cult_of_Reason
Cult_of_Reason's picture

Where is that retarded SocGen analyst?

The CBRT did not disappoint tonight. The CBRT just announced a massive 425bp rate hike. Governor Basci, you have avoided a domino crisis in EM... I definitely feel much better about the TRY... Hence we just entered a long TRY/ZAR targeting a tactical move to 5.10. The TRY crisis is over.

Page Benoit Anne STAT!!!!

Wed, 01/29/2014 - 10:05 | 4379395 Grande Tetons
Grande Tetons's picture

Wearing a gorilla costume in the cargo hold of a Parisian train. 

Wed, 01/29/2014 - 10:16 | 4379437 Cult_of_Reason
Cult_of_Reason's picture

I often puzzled by market's irrational reactions to a headline. Now I understand, it is because of the imbeciles as Anne Benoit gambling with billions of other people's money.

There are just too many greedy imbeciles (most of them are incompetent cronies) working at these TBTF banks.

Wed, 01/29/2014 - 10:25 | 4379467 Grande Tetons
Grande Tetons's picture

The Lira soared on light vol and got crushed on heavy volume a couple hours before the US open. The Lira got the PM hammer today. Something smells fishy....as usual, mind you.

Wed, 01/29/2014 - 10:59 | 4379604 SAT 800
SAT 800's picture

There are just too many greedy imbeciles working at these TBTF banks"--- Ya think?

Wed, 01/29/2014 - 13:30 | 4380335 A Nanny Moose
A Nanny Moose's picture

Where's Beeks?

Wed, 01/29/2014 - 10:10 | 4379411 Frank -THE COIN -
Frank -THE COIN -'s picture

And Jim Cramer said anybody that didnt start buying on Monday was "Stupid "

Wed, 01/29/2014 - 10:14 | 4379430 SAT 800
SAT 800's picture

Holy Shit, Leroy; t he Silver Market has gone vertical ! New York is losing control; Bleeep, Bleeep, Bleeep; emergency stations !!

Wed, 01/29/2014 - 10:20 | 4379445 SAT 800
SAT 800's picture

S&P500 futures down 15 points in the night market; silver is going vertical; holy shit, Jim. The Long Bond is up 13 ticks; somebody is nervous in the service; INCOMING ! get your head down !.

Wed, 01/29/2014 - 10:21 | 4379452 SAT 800
SAT 800's picture

And you thought the NFL was exciting; now this is some real shit. be a lot of homey's jumpin out of buildings soon.

Wed, 01/29/2014 - 10:24 | 4379458 SAT 800
SAT 800's picture

Obammey promises to act alone on t he economy, and singlehandedly scares the crap out of every market participant from Yonkers to Belfast.

Wed, 01/29/2014 - 10:27 | 4379470 bobert
bobert's picture


4 up arrows. One for each post.

I was thinking about a cup of coffee, however, don't need one now.

Love your humor.


Wed, 01/29/2014 - 10:30 | 4379476 eurogold
eurogold's picture

Can't wait for VIX to finally start rocking ! Been sitting on my VIX Calls for awhile too.

Wed, 01/29/2014 - 09:55 | 4379347 Truther
Truther's picture

neh.... here is a jackass.... Let's ride him

Wed, 01/29/2014 - 09:57 | 4379349 papaswamp
papaswamp's picture

Gold and 10yUST are acting like taper off...even complete reversal. Equities are acting like a larger than anticipated taper. OR a rate hike is coming.
VIX maybe the smart trade to run today.

Wed, 01/29/2014 - 10:03 | 4379380 ghengis86
ghengis86's picture

I have no fucking clue what's going on; the mindfuck is complete in the 'new' normal.

CBs ease; gold hammered. CBs 'tighten'; gold pops a boner (soon to be a little chubby after the BIS gets to work this am)

Good news is bad I news is good news is bad news...no news matters, until it does.

Trillions in CB balance sheet expansion, hot money everywhere, leveraged to the hilt on margin...

Wed, 01/29/2014 - 10:10 | 4379408 SAT 800
SAT 800's picture

You can't look at the dailiy events; they're just noise. like static on a radio. In the long term the paper currencies are doomed and their stock markets are too;

Wed, 01/29/2014 - 10:19 | 4379450 ghengis86
ghengis86's picture

I do and I don't. I stack and don't contribute to my company 401k program any longer (been trying to pull the cash, but they're giving me the run around; gotta get terminated in order to pull it or some shit). So daily gyrations don't really have an impact on me.

But then again they do as interest rates, inflation and the FED fuck things up for the fiat paper in which I am forced to transact.

For the past few years now, I've been hoping for this thing to burn to the ground so we can get on with it, regardless of what the future holds, good or bad. This slow motion train wreck is nauseating.

Wed, 01/29/2014 - 10:29 | 4379479 new game
new game's picture

tune in, tune out, drop a little dust outa that coon skin cap...

\timmy oleary where are you? surfs up, a raddy swim today?

Wed, 01/29/2014 - 10:31 | 4379483 bobert
bobert's picture

You sound young. (Unlike me.)

Those nearer to retirement age may depending on the language of the 401k plan be eligible for "inservice withdrawals."

Getting terminated to cash in a 401k doesn't sound like a good idea.

Money Market perhaps?

Wed, 01/29/2014 - 10:10 | 4379413 bobert
bobert's picture

Fear not Ghengis.

You can now invest "risk free" in MyRA.

Not really mine, I mean yours.

You'll get 2.5% too!

Safe and rich.

Isn't life great?

Wed, 01/29/2014 - 10:28 | 4379473 ghengis86
ghengis86's picture


Some .gov flunkie needs to explain to us why people can't just open a Roth IRA and by treasuries. Because you don't get pre-tax treatment? So .gov is giving up the marginal tax benefit so that they can confiscate the entire MyRA funds (covertly or overly)?

By the way, where is that LulzSec outfit? Did the sequester reduce the CIA's fictions online 'hacker' division?

Wed, 01/29/2014 - 10:39 | 4379504 bobert
bobert's picture

Had the same idea.

There are plenty of treasury mutual funds available for your 401k (if you have an independent accoutn) and or IRA's.

Roth's may be better for growth.

Wed, 01/29/2014 - 10:27 | 4379461 Son of Loki
Son of Loki's picture

Gold and treasuries are reacting to ....Fear ... is what my broker told me this morning.

Wed, 01/29/2014 - 10:05 | 4379393 devo
devo's picture

This could be due to the MyRA. I mean, I want gold more than ever if the FED exit strategy is selling 4tril in bonds to citizens as "retirement"...

Wed, 01/29/2014 - 10:30 | 4379478 yogibear
yogibear's picture

Stuff the Obama fans with the Fed's $4 trillion. The sheep like getting sheared.

Guess Obamacare wasn't enough.

Wed, 01/29/2014 - 10:34 | 4379487 eurogold
eurogold's picture

The desperation is becoming public and obvious !

Wed, 01/29/2014 - 10:11 | 4379415 eclectic syncretist
eclectic syncretist's picture

OR,....equities are acting like investors are realizing that no amount of QE can induce people to buy the latest version of the same old products in ever increasing quantities.

Wed, 01/29/2014 - 10:13 | 4379424 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

That is the new norm...."maybe" because nothing makes any fucking sense anymore.

Wed, 01/29/2014 - 09:56 | 4379350 BadKiTTy
BadKiTTy's picture

Yipee kyaaaaaa mother****ers! 



Wed, 01/29/2014 - 10:02 | 4379382 TeamDepends
TeamDepends's picture

May you live in interesting times.

Wed, 01/29/2014 - 10:12 | 4379418 bobert
bobert's picture


A little too interesting.

Wed, 01/29/2014 - 10:13 | 4379423 ghengis86
ghengis86's picture

Is that Chinese saying meant to be a blessing, a curse, a warning, an insult or a nonsense compilation of words to fuck with people?

Wed, 01/29/2014 - 10:21 | 4379454 TeamDepends
TeamDepends's picture


Wed, 01/29/2014 - 13:44 | 4380392 StychoKiller
StychoKiller's picture

Those amazing inscrutables!

Wed, 01/29/2014 - 09:56 | 4379353 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Loving the voltility lately, shaking out the weak longs is make making things interesting.

Wed, 01/29/2014 - 10:01 | 4379354 SheepDog-One
SheepDog-One's picture

This is easy, ObaMao simply needs to take moar unilateral action and force american debt serfs to buy his new stawk index IRA's with their unemployment checks.

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