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The Bill Gross Effect: German Stocks, European Bonds, & US Credit Markets Are Plunging
Black Swan? Having seen liquidations of a relatively small fund yesterday send the NASDAQ down 2% and credit reeling, world bond and stock markets are reacting aggressively to Bill Gross' move from PIMCO. German stocks (PIMCO's parent Allianz is the 7th largest stock in DAX) are tumbling, European peripheral bond spreads are pushing wider (major holdings of PIMCO) and US credit markets are getting smashed (PIMCO is a major player in CDS markets and obviously a huge holder of US corporate debt) and concerns spread of redemptions triggering the kind of liquidity suck out we described yesterday.
US credit...
German stocks...
European peripheral bonds...
Charts: bloomberg
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LOL! Gross has a larger effect than the GDP print.
His new name is Master Blaster.
Who runs Bartertown?
Gross means "big" in german.
"One day cock of the walk, the next, a feather duster!"
It's "The Derek Jeter Effect" - nothing at all to do with Gross.
It was Charles DeGaulle who observed that graveyards are filled with indispensible people.
Talk about insider trading! The stock market dive yesterday came when news of Gross's departure from PIMCO was a done deal to insiders. Had not Gross exited stage left on his own ahead of the hook pulling him off, insiders would have had a field day today betting down equities that will be jammed by Gross's getting tossed.
I'm not even at work, and the air is electric. Beautiful moment, this is. Something special is afoot.
El-Arian must be pissed. No one gave two shots, when he left PIMCO. I guess Gross wins the $1 bet.
Bill has been an insider (and lucky) for quite a while..., did The Fed send him a message, is he sending one back? All of this is approved for public consumption, trust me on this. someone has to be the bagholder now. Once again, the weakest will be. (i.e. pension funds). The bank lobby is already preparing for war on the taxpayer (again).
How much longer can all that debt be rolled over in the western world....?
Cue the script writers...
Another piece of the puzzle LoP.
Its looking like something really big is coming down the pike soon.
The SDRM would make PIMCO worthless.
Did Bill get a memo, and cash out.
I can only assume that you are refering to the SDRM, or Sovereign Debt Restructuring Mechanism, which includes a discussion of China's currency and it's role in a much larger, truly global fraud.
The irony being that physical cash in mattrasses, especially coin, might be the new "safe haven" play. Dumbasses, I thought Ben studied the depression for Christ's sake...
No way WWIII is avoided, in my humble opinion.
Its never happened before without a WW, though the definition should prolly be: known
world war.
It can't happen now without the US MIC being castrated first.Thats a precondition for
the RoW to accept the SDR system.
If I know it, so do the bankers, maybe they have an app for that.
Joel Skousen seems to think we have 5 yrs before WW3 and has some good info for prepping.
Perhaps he didn't get the memo.
Not even 5 months from what I can glean from our peanut gallery.
No way the RoW will carry on using the USD for another five years.
The empire is trying to bring this to a head , before it loses GRC on the terms dictated by
others.
EKM is right that there are two very divergent factions emerging within the Deep State.
They were as one, but the bankers have to get rid of their MIC component otherwise we will
have a military coup d'etat.
I'm sure they have a plan, which is fine until you get punched in the face.
Last I knew popcorn was not yet GMO. I think you're right & it's time to stock up.
EKM??
Like I said earlier, I'm surprised by this reaction because everybody I know hs been pulling funds from Pimco due to the fact they believe Bill Gross has lost his mind.
In light of the shear volume of "assets" controlled by central banks now, you and I both know there is no "market".
Keep those crumbs coming...
"everybody I know hs been pulling funds from Pimco due to the fact they believe Bill Gross has lost his mind."
Couldn't have said it better myself. Now he gets to spread the infection to Janus. A move, which in itself, is borderline insane.
"Now he gets to spread the infection to Janus. A move, which in itself, is borderline insane."
Janus is already infected with Myron Scholes Disease.
derivatives timebomb to explode? short gamma's a bitch....
Global bond panic in 3...2....
Reminds of an exec I used to work with that great results quarter after quarter (consumer lending). He leaves, and 2 quarters later the shit hits the fan. Bad loans rocket higher.
Was his name Mozilla????
goes from a two trillion to 12 million fund..that is a pay cut...something really pissed him off.....must of been all the Obamacare rules and regulations...
must of been all the Obamacare rules and regulations
Oh crap, you just had to say that........ACA troll alert in 5, 4, 3........
hahaha... Plunging - that's rich.
30 yrs of rates falling and bond prices rising has finally reached the end. Game over.
and here i thought fidelity and calpers were the only ones dumb enough to buy "periphery" bondz bitchez.
All this panic though I'm sure there's a perfectly rational explanation like alien battle ships dropping into geosynchronous orbit.
Stop worrying.
just making room for an intergalatic space highway...
Yeah, I heard about that, that being the one that goes from Mexico through Texas and up to Jupiter, right? An intergalactic free trade zone.
No, as in the earth has been scheduled for demolition.
I guess we're all Gazans now.
http://www.gatestoneinstitute.org/4706/gazan-hamas-war-crimes
You like your job?
I was going to ask you that same question. Great minds think alike...
Uneducated swine have never heard of the Hitch-hikers guide to the galaxy! How can they possibly know anything about economics?
I was thinking the same thing - *swoosh* over the head.
The answer to life, the universe, and everything is 42.
Plunging; better than collapsing..
What %age of PIMCO AUM are separate accts. I wonder?
Larry Summers doesn't see crisis-like indicators.
Hehehehe
Not that there was ever a shortage of great jobs in the Newport Beach area but this is really good news for all the peeps I used to work with at Pimco. A bunch of them about about to get some serious pay increases.
Or pink slips if the fears of continued outflows are realized.
None of it matters people... The horse race is rigged!
(Unless ur a punter)
They aren't plunging. They are up .3 -.4% from the opening
So after Euro stawks close today, US once again 'catches down'? I guess none of it really matters, clowns juggling 5 or 6 balls, who really cares?
Stawks are up now. Where's the plunge? The market will be up 3% today on a surge of panic buying before the close.
Buy the fucking dip. Same as it ever was.
appropriate for many I am sure...
"Maybe you haven't been keeping up on current events, but we just got our asses kicked, pal!"
Hudson
Next up, a recommendation to nuke it from orbit!
Bill Gross was a genius in his own right. You think this was not a deliberate act? Trash the euro is the new trend.