Shock And Ouch: Turkish Central Bank Intervention Now Fully Faded As Lira Collapse Returns

Tyler Durden's picture

Update: full meltdown mode now:

Yesterday, the moment when the Turkish Central Bank intervention was jinxed was clearly marked by SocGen's fawning Benoit Anne, who said "In any case, I definitely feel much better about the TRY, at least on a tactical basis. Hence we just entered a long TRY/ZAR targeting a tactical move to 5.10. The TRY crisis is over." To which we responded: "As for the "TRY crisis being over" let's wait to see what the "popular" response is to this epic rate hike first thing tomorrow when Turkey awakes, shall we, and let's revisit the TRY crisis in 2-3 weeks when the country's housing market crumbles, when the economy grinds to a halt and the political crisis goes from worse to worse-est." We didn't have to wait more than 12 hours. As of this moment, the entire Central Bank move has been faded.

And now, the TRY crisis is back. Thanks SocGen.

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onewayticket2's picture


GetZeeGold's picture



The universe will not allow the Lira to's just too big.

TeamDepends's picture

Looky, metals are melting up!!!  $1300 snd $21 here we come!

Pool Shark's picture



"The TRY crisis is over"

DO, or DO NOT, there is no TRY...


Occident Mortal's picture

That’s the great thing about HFT, it makes a complete mockery of all the financial pundits as they scramble to explain all the fundamental reasons why the market has reacted in a particular way, only for the market to then reverse hours later once real world flow retakes control.


Oh it seems corporations and people don't use billion dollar algorithms to repatriate their capital, and they aint all that price sensative either.

BuddyEffed's picture

I think that what you hear out of financial pundits is often coordinated at a higher level with the positions the HFTs will be taking, especially in the short term.  It could be advantageous to have the pundits positions skewed with respect to the direction the HFTs will be swinging for when options can be leveraged and when short coverings or margin calls might get triggerred.  Treacherous and insidious the markets waters can be, with more maelstroms and betrayals than you might find in a Pirates of the Carribean movie.

SAT 800's picture

Golly, you mean it didn't work; again? these are some real bright boys; they never, ever, ever learn anything.

midtowng's picture

After the CB ent nuclear the market shrugged it off. That means complete and total meltdown ahead

superflex's picture

If you like your domino crisis, you can keep your domino crisis.

SWRichmond's picture

The consequence of the central banks' "total intervention" strategy is that now, instead of there being one potential Kreditanstalt, the banks are ALL Kreditanstalt

Silver Garbage Man's picture

If you like your Holy Fuck this is getting serious thoughts you can keep them.

Hindenburg...Oh Man's picture

Wow, watching futures. Wish that I had stayed in that short ETF a bit longer. 

youngman's picture

I would say the Central Bankers gameplan just failed...they need a new economist I think....a new way of could those smart people get it so wrong.....and more they know they are wrong...I doubt it

The Vineyard's picture

Somtimes you just can't win.  Lower the rates, the currency turns to shit.  Raise the rates, the currency still turns to shit.  Can't win for losing.

SAT 800's picture

It all becomes clear when you realize the currency is shit; and what you're seeing is just reality peeking out from under the covers.

Ghordius's picture

now the currency wars advance to the point where central bank reserves start to play their usual role

and of course the currencies being trashed by the markets have all a problem with size. size matters, in the monetary world

BoNeSxxx's picture

Yep... and beneath the covers what really matters is the Golden Rule... he who has the gold makes the rules.

Guess we better start to learn Chinese or Russian...

Panem et Circus's picture

Long gasoline, glass bottles, rags, and Bic lighters.

ghostzapper's picture

As I posted over the weekend and Monday the key levels remain:



Hit 1772.88 on Monday and bounced as expected.  Figured the hopium injections would come from somewhere and there you have it.  Interesting how quickly they are faded.  

No shocker if they test 1772-1773 shortly after the open.  

If no hopium from Fed this week or hopium injected and selling the rips ensues it's not that much of a leap to see that 1645ish level I projected as possible hit in the not too distant future.  Of course everything changes if a major CB announces its latest scam with a cutesie new acronym.  Interesting indeed.  Good luck.  

ghostzapper's picture

Well they held it off the 1772-1773 level off the open which surprised me a bit but sure enough later in the day some modest penetration of the 1772-1773 level ("I promise just the tip baby!") and a close just above that level.  

Same stance for tomorrow.

Nah, scratch that.  charts don't matter.  just go with how you "feel" or how you "think" things should be or what you read in some self-proclaimed genius' email blast or newsletter.  

Johnny Cocknballs's picture

I hate to say it, but I suspect its gonna be a very good day....

 For bitcoin.



edit: Don't say I didn't tell you junkers.

hapless's picture

"I definitely feel much better about the TRY, at least on a tactical basis."


Quinvarius's picture

Gold scandal...currency collapse.  Gold scandal..currency collapse...

Iocosus's picture

Did Stolper mentor Benoit Anne?

starman's picture

The train called capitalism just derailed!

THX 1178's picture

Capitalism doesn't force pirvate banks to use national banknotes. Thats called statism.

combatsnoopy's picture

Recep Tayyip Erdo?an might have sent teh hologram to Davos to dodge Russian Assassins regarding Cyprus oil? The Turks are not a part of the EU and they want to be, EU hasn't let them in because of their "religion". Turkey, a Muslim country has done very well by exporting to Muslim OPEC.  OPEC is probably getting a NICE bargain as of now.

Therefore Turkey has a very strong financial advantage over Greece, who had to increase their military spending to ward off the Turks who are after Cyprus oil- which is technically under Greek control? Well- this is when GOLDMAN SACHS dinged Greece with a bad credit rating and this is when Greece needed a bailout.
 Goldman Sachs engaged in some sort of interest rate/credit default swaps with the Greeks with some sort of submarine collateral to the business. 
It wasn't because Greeks were "lazy, entitled, etc." like the sock puppets said.
Who else is interested in the offshore oil near Cyprus? RUSSIA.

ISRAEL. (some dingbat Jewish lady snipped at me that "Israel has no oil"---others in the limelight tried to claim that they do. With all of the problems Muslims apparently caused for Jews- why wouldn't the Jewish community help us lobby for either domestic drilling or alternatives? Hmmm-makes you wonder, and Israel owes us.   Jews and Muslims get along, the fighting is purely political.  Muslims have money and Jews like---money.)... and some oil company out of Houston Texas USA wants a piece of the Cyprus oil business too.  Is that why the US sold weapons to the Turks? 

Big Brother's picture

Got long USDTRY @ 2.23...  I gotta say these exotics (TRY, ZAR, MXN) sure feed on momentum.

ThirdCoastSurfer's picture

This is just the dead cat bounce..or should I say a dead turkey. 

SAT 800's picture

Dead Turkey sounds right; obviously they just need to join the EU, right away, and conver to EUROS; that'll solve everything.

markar's picture

too bad they spent all that gold buying Iranian oil. It could have saved the TRY.

Spungo's picture

Is there a reason the VIX is shrugging this off? 

SmittyinLA's picture

We knew this was coming with the Syrian fail, they're also going to have a burgeoning Kurd problem (not that they didn't have one before)  their ethnic supression activities are tempered by EU membership desires and the internet.

Turkey and their fiat are toast, they got a Muslim problem