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"Prepare For Runs", IMF Warns Policymakers Of "Elevated Financial Stability & Liquidity Risks"

Tyler Durden's picture




 

The extended period of monetary accommodation and the accompanying search for yield are leading to credit mispricing and asset price pressures, increasing the chance that financial stability risks could derail the recovery.

 

 

Concerns have shifted to the shadow banking system, especially the growing share of illiquid credit in mutual fund portfolios.

Should asset markets come under stress, an adverse feedback loop between outflows and asset performance could develop, moving markets from a low- to a high-volatility state, with negative implications for emerging market economies.

 

Funds investing in credit instruments have a number of features that could result in elevated financial stability risks.

First is a mismatch in liquidity offered by investment funds with redemption terms that may be inconsistent with the liquidity of underlying assets. Many credit funds hold illiquid credit instruments that trade infrequently in thin secondary markets.

 

Second is the large amount of assets concentrated in the hands of a few managers. This concentration can result in “brand risk,” given that end-investor allocation decisions are increasingly driven by the perceived brand quality of the asset management firm. Sharp drawdowns in one fund of an asset manager could propagate redemptions across funds for that particular asset manager if its brand reputation is damaged, for example through illiquidity or large losses.

 

Third is the concentration of decision making across funds of an individual fund manager, which can reduce diversification benefits, increase brand risk, or both.

 

Fourth is the concentrated holdings of individual issuers, which can exacerbate price adjustments.

 

Fifth is the rise in retail participation, which can increase the tendency to follow the herd.

These features could exacerbate the feedback loop between negative fund performance and outflows from the sector, leading to further pressure on prices and the risk of runs on funds. These risks could become more prominent in the coming year as the monetary policy tightening cycle begins to gain traction.

 

Such stress might be triggered as part of the exit from unconventional monetary policy or by other sources, including a sharp retrenchment from risk taking due to higher geopolitical risks.

And, as we have discussed numerous times previously, less liquidity is available from traditional liquidity
providers...

 

The IMF is worried...

Policymakers and markets need to prepare for structural higher market volatility. Doing so requires strengthening the system’s ability to absorb sudden portfolio adjustments, as well as addressing structural liquidity weaknesses and vulnerabilities.

 

Advanced economies with financial markets at risk for runs and fire sales may need to put in place mechanisms to unwind funds should they come under substantial pressure that threatens wider financial stability.

Source: IMF

 

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Sun, 10/12/2014 - 19:55 | 5322218 TeamDepends
TeamDepends's picture

When runs give you the runs/make you run, we've got your back(side).

Sun, 10/12/2014 - 20:03 | 5322240 kliguy38
kliguy38's picture

but most importantly don't buy GOLD...invest in safe FRNs...oh, and Ebola will be stopped dead (emphasis on dead) and its not Airborne

Sun, 10/12/2014 - 20:08 | 5322264 philipat
philipat's picture

Fortunately, The US and The UK (Central Banks, Treasury etc.) have a massive Bank Failure simulation exercise planned for Monday.

....Another one of those purely coincidental occurences.

Sun, 10/12/2014 - 20:09 | 5322269 NoDebt
NoDebt's picture

Test run.

Sun, 10/12/2014 - 20:13 | 5322284 Philo Beddoe
Philo Beddoe's picture

However, when a real attack occurs at the same time the system will remain defenseless.  

Sun, 10/12/2014 - 20:18 | 5322299 TeamDepends
TeamDepends's picture

Quantum Down Cyber Attack Bank Drills 10/16,17 and 10/23,24. If they are not ready the first time.....

Sun, 10/12/2014 - 23:12 | 5322791 The Doofus
The Doofus's picture

We've been listening to this bullshit since the meltdown.  Where are these runs going to occur?  Latvia?  Greece?  Hungary?  Will these runs bring on another meltdown?  Highly unlikely. 

Mon, 10/13/2014 - 01:36 | 5322952 All Risk No Reward
All Risk No Reward's picture

No, the meltdown will bring on the runs once the banks have to admit they have $1 for each $100 owed.  Well, they won't admit that, but they will admit the need for "bail ins."  Once the "bail ins" start to zero out people's accounts, well, running to get their money out is the least a conscious person could do.

Mon, 10/13/2014 - 01:53 | 5323026 silverer
silverer's picture

I heard in a recent talk from Jim Willie that they actually test marketed the new "Republic Dollar". That's what Willie calls the "Scheiss dollar", which is German for sh-t. Well, once that goes out into general circulation (the existing currency will be illegal and voided here), expect a 40% devaluation. They really have no choice but to do something like that, because it is mathematically impossible to save the dollar at this point. We, the people that work for a living, will have had everything we worked for and saved stolen. It's that simple.

Mon, 10/13/2014 - 02:19 | 5323043 SAT 800
SAT 800's picture

Well; I read a lot of stuff; I wouldn't get that excited about Jim Willie. It's actually likely that the dollar will remain a strong currency for at least a few more years; there's good reason to expect the Pound and the Euro to continue to lose ground against it; and as for the Yen; sheesh. If you have savings you don't need to tap into for five years you might want to put them in 90% silver US coins; which you can buy; they trade at their silver content value so they won't lose any purchasing power.

Mon, 10/13/2014 - 02:23 | 5323046 runningman18
runningman18's picture

With the current speed of de-dollarization, there's no chance the dollar will remain strong for a few more years.

Mon, 10/13/2014 - 06:12 | 5323226 GetZeeGold
GetZeeGold's picture

 

 

 

Number 7.......now serving number 7.

 

Bring me a cup of fat and Christine Lagarde's head.

Mon, 10/13/2014 - 06:29 | 5323236 negative rates
negative rates's picture

Well we have giraffe dolls for sale over here, maybe she'll settle for one of those.

Mon, 10/13/2014 - 03:29 | 5323110 FreedomGuy
FreedomGuy's picture

It is not at all mathematically impossible to save the dollar. It is mathematically impossible to simultaneously save the dollar and keep the govenment solvent, meaning speding and debt.

So, the dollar will lose because it is the political chicken shit way to go rather than a structured default. A default also reveals the incompetence and clay feet of the central planners.

Mon, 10/13/2014 - 01:31 | 5323011 ebworthen
ebworthen's picture

"IMF Warns Policymakers Of 'Elevated Financial Stability & Liquidity Risks'..."

Read:  "Central Banks - get ready to bail out banks/corporations/insurers all over again with the public treasury!"

Remember 2008?  S&L crisis?  1987? 

Yup, like that.  Skullduggery and Legerdemain is the rule of the land.

"Of the Banks, by the Banks, for the Banks" is the motto.

Mon, 10/13/2014 - 01:48 | 5323020 silverer
silverer's picture

It goes like this: what can't go on forever, won't. Now I hope some genius can actually keep the Ponzi going as long as possible, since either way, it will suck once everything crashes. It really can't be any good, because they've waited far, far too long to fix it the right way. But I don't see this going on for much longer. It's moving much faster than I would have imagined just a couple of years ago. Thank modern technology.

Mon, 10/13/2014 - 02:21 | 5323045 SAT 800
SAT 800's picture

There's actually a lot of very convincing evidence that the dollar for instance can go on for say another 3 years; after that it gets harder to predict. Watch out for Jim Willie he's basically a nut. What you say is true, of course, it can't go on forever; but it actually has several things changing right now in its favor and it looks pretty good for the dollar for 2 or 3 years.

Mon, 10/13/2014 - 07:30 | 5323295 Squid-puppets a...
Squid-puppets a-go-go's picture

those 'favorable' factors are shallow when compared to the global de-dollarization process. And anyway, its a system for which longevity=increasing instability. Sure they could pull out all stops to keep it alove longer, but not without increased volatility between asset classes that only magmify the destruction of capital through malinvestment

Mon, 10/13/2014 - 02:23 | 5323047 SAT 800
SAT 800's picture

Actually, my reply would be it's moving slower than I thought a few years ago, and slowing down further. The dollar is kind of got some new tricks up its sleeve.

Mon, 10/13/2014 - 03:46 | 5323121 Duffy Duck
Duffy Duck's picture

Those tricks will involve special operations forces as sword and US troops as shield in Iraq and Syria...  you can count on the fact that .gov is working on selling a much larger re-intervention in Iraq and invasion in Syria.

Before regime change in Iran on the absurd pretext of a non-existent nuclear weapons programme.

Sun, 10/12/2014 - 20:13 | 5322286 Winston Churchill
Winston Churchill's picture

Maybe a live test.

Sun, 10/12/2014 - 21:01 | 5322417 logicalman
logicalman's picture

Based on the exercises going on on 9/11 and 7/7, Tomorrow could be an interesting day in the financial markets!

 

Sun, 10/12/2014 - 21:59 | 5322590 OldPhart
OldPhart's picture

Isn't Monday a bank holiday?

 

Sun, 10/12/2014 - 22:13 | 5322630 SoilMyselfRotten
SoilMyselfRotten's picture

Every day is a Holiday for the banksters

Sun, 10/12/2014 - 22:27 | 5322667 Treason Season
Treason Season's picture

AFAIK, it's a bank holi but not a stock holi.

Mon, 10/13/2014 - 08:12 | 5323364 swass
swass's picture

So expect little stock movement?

Sun, 10/12/2014 - 22:29 | 5322679 Raaaaaaaaady
Raaaaaaaaady's picture

Fire drill with arsonists? This world has gotten very intersting!

Sun, 10/12/2014 - 23:42 | 5322841 rbg81
rbg81's picture

Not to worry, our bankrupt Federal Government will guarantee everything.  The Plan?  We'll just import more illegals, Muslims and Ebola.  Hey, it's all good--they got this!

Sun, 10/12/2014 - 20:09 | 5322266 Stroke
Stroke's picture

Thanks.....That's the only laugh I've had for a week....Had a little bourbon come into my nose.

Sun, 10/12/2014 - 20:12 | 5322280 Cognitive Dissonance
Cognitive Dissonance's picture

Where I come from we called runs 'the trots'.

<I grew up in a small town of predominately first and second generation Italian immigrants.>

Sun, 10/12/2014 - 20:28 | 5322328 booboo
booboo's picture

We called it the Hershey Squirts.

Sun, 10/12/2014 - 20:39 | 5322362 klockwerks
klockwerks's picture

And where I'm from we call them "the back door trots"

Sun, 10/12/2014 - 23:39 | 5322832 RockyRacoon
RockyRacoon's picture

The "trots"... yes indeed.  That comes from the increased activity on the path from the house to the outhouse.  Peeking out thru that crescent-moon cutout in the door with a case of the squirts is no fun.  Sears & Roebuck catalogs were really scratchy.  All because granny got some noxious weeds mixed in with the poke salat.

Mon, 10/13/2014 - 04:56 | 5323162 messymerry
messymerry's picture

Down here in Texas, we call 'em the galloping trots...

Sun, 10/12/2014 - 21:39 | 5322528 TheReplacement
TheReplacement's picture

Ebola is an honorary member of both the 82nd and 101st. 

Mon, 10/13/2014 - 00:50 | 5322940 buttmint
buttmint's picture

..oh yes....I am sure we all have buds who's number has been called to staff AFRI-CONN to fight ebola. Maybe through them, we will be able to get some accurate photographs of events unfolding. Will flamethrowers be packed?

The US Military heading to Africa are not defenseless. They have all been dose with TeMira's anti-ebola vaccine. As well they should. DOD funded TekMira (Vancouver BC) many millions of dollars about 5-7 years ago. 

Walk-in-stiffs from West Africa to any US Hospital need not apply. Ya gotta love the ambulance chaser lawyers crying discrimination.

Mon, 10/13/2014 - 01:29 | 5322966 g'kar
g&#039;kar's picture

"They have all been dosed with TeMira's anti-ebola vaccine"

 

The military, real-time test subjects that can't say no.

Mon, 10/13/2014 - 06:25 | 5323233 GetZeeGold
GetZeeGold's picture

 

 

All I know is if I'm a Marine....no way in hell I'm doing that crap....you go do that crap.

Mon, 10/13/2014 - 09:34 | 5323616 g'kar
g&#039;kar's picture

When I was in during the 70's and 80's they shot us up with all sorts of shit and didn't tell us what it was. Usually before a deployment.

Sun, 10/12/2014 - 20:18 | 5322304 Stormtrooper
Stormtrooper's picture

The central planning cavalry will ride to our rescue although their horses may be running backwards.

Sun, 10/12/2014 - 20:26 | 5322325 SAT 800
SAT 800's picture

Man them IMFers shur talk purty. I wonder if they know how to skin a skunk ?

Sun, 10/12/2014 - 21:38 | 5322531 TheReplacement
TheReplacement's picture

Convince someone else to do it for you?  That seems to be how they get rich.

Sun, 10/12/2014 - 21:15 | 5322453 SAT 800
SAT 800's picture

fig. 1.21. is a feedback loop. study carefully; they'll be an essay test during the last 15 minutes of class today.  Urrrgggh.

Sun, 10/12/2014 - 21:15 | 5322457 MsCreant
MsCreant's picture

TP? Printed, of course, with added extra cushioning.

Mon, 10/13/2014 - 04:28 | 5323141 SAT 800
SAT 800's picture

I've got a print out from a MarketWatch front page hanging on the wall behind my monitor that;s from Oct.6, 2008; the headline is WORLDWIDE WRECKAGE. I;m waiting for the next one, so I can a pair; one on each side.

Sun, 10/12/2014 - 20:00 | 5322233 armageddon addahere
armageddon addahere's picture

Is that what they call liquidity in the market?

Sun, 10/12/2014 - 20:01 | 5322237 Philo Beddoe
Philo Beddoe's picture
 · Oct 10 

WOW: Lacker Calls for Possible Repeal of Fed Emergency Lending Powers

Wow, indeed.

Sun, 10/12/2014 - 23:04 | 5322479 Yen Cross
Yen Cross's picture

  +1

 Hey squint?   OOOps , I lost my train of thought.

Mon, 10/13/2014 - 02:28 | 5323049 SAT 800
SAT 800's picture

was that yours? I just saw one chugging by here a few minutes ago ?

Sun, 10/12/2014 - 20:01 | 5322241 nmewn
nmewn's picture

Sub Headline: IMF Say's Print Moar!

Sun, 10/12/2014 - 20:31 | 5322342 SAT 800
SAT 800's picture

Well, I think we should be sure we have our plan together; you're going to lift the mask and see if he's on your list; and if he is, I'll shoot him in the face; don't worry if you're standing right next to him, it;s  perfectly safe. Ill just be a kind of dead stick on a tree about a 100 yds away. then you can check the next one. we gotta have this organized so we can through a 100 or so before lunch.

Sun, 10/12/2014 - 20:46 | 5322378 nmewn
nmewn's picture

Looks like thats what its going to take, the mask is "the law", while we are only about justice.

Perhaps its time to introduce a little more "anarchy" into the justice system ;-)

Sun, 10/12/2014 - 20:48 | 5322387 CheapBastard
CheapBastard's picture

 

"Prepare for the Runs," warns the IMF.

Talking their book, I suppose.

mmm ... they must have stock in Immodium's Pfizer.

Sun, 10/12/2014 - 20:50 | 5322392 SAT 800
SAT 800's picture

Now don't start up with that lawyer stuff.

Sun, 10/12/2014 - 20:53 | 5322396 SAT 800
SAT 800's picture

well, all you can do is make a few closed coffin burials; and see if the hearts and minds start coming around, I suppose.

Sun, 10/12/2014 - 21:26 | 5322489 nmewn
nmewn's picture

Sometimes you have to pry them open so they can see whats really inside.

The hearts & minds, not the coffins ;-)

Sun, 10/12/2014 - 21:28 | 5322493 SAT 800
SAT 800's picture

Don't care, really.

Sun, 10/12/2014 - 22:01 | 5322595 nmewn
nmewn's picture

I'm an eternal optimist.

Thats why I laugh it, mostly ;-)

Sun, 10/12/2014 - 22:56 | 5322757 zstard
zstard's picture

you seem to be a bit trigger happy tonight my friend. 

Mon, 10/13/2014 - 02:30 | 5323055 SAT 800
SAT 800's picture

I'm very pissed off at being part of a country that's paying for murderous thugs to invade innocent peoples homes and rape and kill them. It makes me remember old time "conditiioning" I had as a youngun; you know, "kill a commie for mommy". but with a different angle to it.

Sun, 10/12/2014 - 20:03 | 5322247 Tasty Sandwich
Tasty Sandwich's picture

increasing the chance that financial stability risks could derail the recovery

A true recovery would mean recovering to a housing bubble.

Now, where did I put my crazy pills?

Sun, 10/12/2014 - 21:09 | 5322437 logicalman
logicalman's picture

If the present state of the world is a recovery I really don't want to see a recession!

 

Sun, 10/12/2014 - 20:02 | 5322249 rsnoble
rsnoble's picture

"Elevated STABILITY"?

Actually probaly not a typo that's probably what they'll really say lmao.  "No worries, the markets are crashing  but everything else that matters is stable".

Sun, 10/12/2014 - 20:03 | 5322252 EHM
EHM's picture

I am Jacks complete lack of surprise

Sun, 10/12/2014 - 20:04 | 5322253 starman
starman's picture

"Financial stabilty risk"? like "small big house" and to much "white in the black paint" or "wet dry" thay all make 0 sense!

Sun, 10/12/2014 - 20:05 | 5322255 Cautiously Pess...
Cautiously Pessimistic's picture

I had 'liquidity' all over my trade blotter last week. Was not a pretty sight.

Sun, 10/12/2014 - 20:09 | 5322268 tom a taxpayer
tom a taxpayer's picture

"First is a mismatch in liquidity offered by investment funds with redemption terms that may be inconsistent with the liquidity of underlying assets. Many credit funds hold illiquid credit instruments that trade infrequently in thin secondary markets."

Wonder which funds that could be. Scary.

 

Sun, 10/12/2014 - 20:13 | 5322288 NoDebt
NoDebt's picture

If Bill Gross has any of his tattered mojo left, he may well have known that on the way out the door at PIMCO.  And if anyone knows which ones, it would be Bill.

Sun, 10/12/2014 - 20:35 | 5322346 SAT 800
SAT 800's picture

Which credit funds ? All of them. we did this before, remember, and they were sending out letters saying you'll have to wait thirty days, and so forth.?

Sun, 10/12/2014 - 20:48 | 5322389 MsCreant
MsCreant's picture

Mark the shit to market, make it mandatory. Why does everyone pussy foot around these liars? The problem is they are claiming to have money they don't have. That is called Theft or Embezzlement, yes???

Lying pieces of shit.

There are legitimate reasons for the runs here and in West Africa (and Spain and Dallas).

Sun, 10/12/2014 - 20:58 | 5322410 SAT 800
SAT 800's picture

Now, come on you know why they pussy foot, (giggle giggle) around; it's because they belong in the same club and it's profitable. See if a few of 'em get shot in the face with a high velocity Russian military round; they'll have to have a closed casket funeral, (trust me, it makes a mess); and then some of the club members will; oh, I dunno, "come to Jesus"; or as close enough as nevermind. They do it; because we have become a lawless country and there's not penalty. OKay? please respond to this post even if you're sure it's crazy.

Sun, 10/12/2014 - 22:13 | 5322629 Dragon HAwk
Dragon HAwk's picture

my bet is you can't get within a 100 yards of any of the real Movers and Shakers..

 But Hey,  I wish you Luck... :)

Sun, 10/12/2014 - 22:19 | 5322646 SAT 800
SAT 800's picture

Luck is always good.

Sun, 10/12/2014 - 22:46 | 5322732 zstard
zstard's picture

May you get the chance (and a good look)

Sun, 10/12/2014 - 21:14 | 5322448 logicalman
logicalman's picture

Fraud??

Listen to this link - it makes very clear that those in power corrupt the system for their own advantage.

http://www.youtube.com/watch?v=g2oWZ6Z3Pks

 

Mon, 10/13/2014 - 00:01 | 5322872 RockyRacoon
RockyRacoon's picture

A very interesting piece.  Thanks for the link.   I like the "crime in the streets -- crime in the suites" reference.

He could very well have been describing the U. S. situation as to the organized crime aspects of what is going on in the financial industry.   (Ha! An "industry" which makes nothing.)

Mon, 10/13/2014 - 07:34 | 5323302 Squid-puppets a...
Squid-puppets a-go-go's picture

yerrrsss... no mention of crimes in the Boardroom...

Sun, 10/12/2014 - 20:39 | 5322270 Yen Cross
Yen Cross's picture

 I've got plenty of "dry powder"... Those silver(xag) rounds have a rope attached to the anchor. ;-)

Sun, 10/12/2014 - 20:11 | 5322277 philosophers bone
philosophers bone's picture

Long mattresses.

Sun, 10/12/2014 - 20:15 | 5322291 holdbuysell
holdbuysell's picture

Ten FRNS says this is simply the IMF talking its SDR book and agenda to continue (exacerbate?) the trend.

Even USA Today is plugging these guys:

http://www.usatoday.com/story/money/business/2014/10/07/china-currency-push/16852193/

Sun, 10/12/2014 - 21:25 | 5322296 ekm1
ekm1's picture

All preplanned

 

This is not a matter whether there will be a Triple Lehman or not. That is inevitable.

 

The issue is:

Who will be the sacrificial lambs?

Sun, 10/12/2014 - 22:58 | 5322761 IndyPat
IndyPat's picture

Taxpayers get ze tab. Prolly a few left here some wheres.

Sun, 10/12/2014 - 20:19 | 5322306 Millivanilli
Millivanilli's picture

Is this the part of the show where the shiny teevee personalities say, thanks for not bailing on your 401k plans.  You made many private wealth funds fabulously rich.  As you dilligently "invested" they took profits and bought real assets.  Now that the market has crashed we regret to tell you that you are BROKE, SUCKAZ!

Sun, 10/12/2014 - 23:15 | 5322799 IndyPat
IndyPat's picture

Yikes. Someone out there forgot to bite the bullet and drain their 401K? Sucks for that dude.

Mon, 10/13/2014 - 01:12 | 5322980 MsCreant
MsCreant's picture

It's worse than that. Some of us have employers who put money aside for our retirement that we cannot get out unless we are fired or retire. I am way too young. When/if this goes south, I am fucked. I try to tell myself it is mythical money. Not real. Like social security. And hey, at least I did not pay in! But it is still gonna hurt, even if I do know better.

Sucks for this dudette.

Mon, 10/13/2014 - 02:36 | 5323060 SAT 800
SAT 800's picture

If you're like my sister; you probably have a system where you get three choices and you can only change once a year. Like Stock Index Fund, Federal Bonds, and something else, money market? just change to Federal bonds, if you didn't already; if this soiunds crazy; e-mail me and I'll explain it. Be sure and check the program carefully make sure you understand what options exist.

Sun, 10/12/2014 - 20:19 | 5322308 Oxygen
Oxygen's picture

'US and UK finance officials, including Janet Yellen and Mark Carney, will bunker down to engage in a financial “war game” on Monday, in an experiment on how to deal with the future collapse of a multinational bank.'

Is just a test or it's the reality for tomorrow?

http://m.afr.com/p/business/companies/janet_yellen_mark_carney_face_off_...

Sun, 10/12/2014 - 20:40 | 5322364 MsCreant
MsCreant's picture

A Hedger posted about these drills and the organization of businesses and corporations that work with government on these drills. He noted that there was a drill going on when 9/11 happened which made it difficult to respond to the hi-jacked planes. 

There are other events that have taken place (Boston, Sandy Hook, the downing of the plane over the Ukrane) where drills had been going on.

I am not a conspiracy person.

I am watching with interest.

Sun, 10/12/2014 - 23:30 | 5322820 IndyPat
IndyPat's picture

...He noted that there was a drill going on when 9/11 happened which made it difficult to respond to the hi-jacked planes. "

Yeah, that was like the second biggest tell in my awakening. A drill at NORAD, I believe, that just so happened to be based on the scenario of....you guessed it...hijacked planes. There where simulated images on scope so nobody could figure out what was real and what was bullshit. Neat, huh. I heard some of the recordings. Complete shitshow. Purely coincidental of course.

Sun, 10/12/2014 - 20:41 | 5322370 SAT 800
SAT 800's picture

Oh you mean they're going to have a drill; like a pretend failure; like they did the day the airplanes came to New Yorlk? Oh well, then I'm sure everything will work out just fine. Important to have these practice alert things, I think.

Sun, 10/12/2014 - 23:46 | 5322847 IndyPat
IndyPat's picture

After they are done with the drill, they can move the "simulated money" to Ft. Knox along with some ISIS weapon purchase orders and other receipts and maybe the Kennedy files, too, for safe keeping. Government email servers would probably be best stored there, too. Maybe even take out some insurance on it that morning.

Turn the security cams off before the Daisy Cutter comes down. Scatter some Maylasian 777 wreckage and sing some songs on the steps of the capital building after its done as a show solidarity for whatever it is they think we still believe in.

Presto!

They call that one the "Dirty Donald PaperShredder" @ the War College. Still quite popular.

Sun, 10/12/2014 - 20:19 | 5322310 limacon
limacon's picture

When all else fails ,

use a tried and tested Hazmat suit .

This has been historically battle proven . It might save some lives  Regards Andre xxxxxxx http://andreswhy.blogspot.com/2011/07/rotting-clothing.html https://www.academia.edu/8743634/Ancient_Mongolian_Hazmat_Suit
Sun, 10/12/2014 - 20:36 | 5322351 MsCreant
MsCreant's picture

I'll beat you with that suit...

No...

Instead, I'll counter with this suit:

http://www.pinterest.com/pin/297800594082090261/

Sun, 10/12/2014 - 20:47 | 5322384 SAT 800
SAT 800's picture

Jesus H. Christ; t hat's some ugly shit, there, girl.

Sun, 10/12/2014 - 20:55 | 5322400 MsCreant
MsCreant's picture

The eyes are glass and the nose cone has herbs in it to help the plague doctors breath through the stench, which was, at the time, thought to be the cause of the disease. The plague doctors lived a little longer than most in those outfits. 

Sun, 10/12/2014 - 21:03 | 5322418 SAT 800
SAT 800's picture

Oh, I believe you; I'm not questioning its benefits; but its as ugly as deer guts hanging on a door knob.

Sun, 10/12/2014 - 21:19 | 5322467 OC Sure
OC Sure's picture

Fascinating! Delighted to find your blog, Andre.

Cowabunga The Origin and your salute to Palagius was a welcomed education. Thanks.

http://andreswhy.blogspot.com/2014/08/cowabunga-origin.html

The economy of productive work still needs to find its own "turning of arrows" against those who have usurped it.

...in search of modern economic's Cova Domenica. /shrug

Sun, 10/12/2014 - 20:24 | 5322318 redwater
redwater's picture

Media has been dropping stories lately that evil russian hackers are going to heist everyone's bank accounts.

Gonna have to pin the blame on someone when it all gets Corzined.

Sun, 10/12/2014 - 20:25 | 5322323 homiegot
homiegot's picture

I thought at first this was a warning about Ebola.

Sun, 10/12/2014 - 20:31 | 5322338 MsCreant
MsCreant's picture

What a tease, that IMF.

Who would profit from a run?

Isn't it the case they have put rules in place to lock things down if there is a run? Orderly redemptions?

Sun, 10/12/2014 - 20:45 | 5322377 SAT 800
SAT 800's picture

MsCreant did you understand all that shit at the top of the article? Cause I sure didn't. Man those folks really do talk purty.

Sun, 10/12/2014 - 21:12 | 5322446 MsCreant
MsCreant's picture

The mutual fund folks bought shit they can't get cash for easily. If they all offer their hard to sell shit at the same time, the value of those assets will, by definition, deflate. If these fund managers fuck up bad enough and their customers find out about it, they will want to get out of the funds, all at the same time. Thus the run. Meanwhile they put rules in place that if there were too many people trying to get out of those funds at the same time, they are going to either slow down or outright halt redemptions. The reason people are normally in these kinds of funds is that you can get in and out of them pretty quick. But these fund guys wanted yield, so they put the ability to convert to cash at risk as a sacrifice.

I am not sure if Gross knew this was coming and got out of the way, or if he was trying to trigger this event when he left PIMCO. 

Or, like some are saying here, this is to scare the public to make them demand a centralized money system. 

Even if this is the case, everyone who knows about it still have short and mid term plans to "cash in."

Sun, 10/12/2014 - 21:24 | 5322485 SAT 800
SAT 800's picture

Yep. you understood it. it'll probably work out all right; I mean they don't plan on a lot of people cashing out in the same week; and it really does take time to sell a lot of this stuff. but it's also true that the advertising for the funds is deceptive to say the least.

Mon, 10/13/2014 - 06:19 | 5323228 GetZeeGold
GetZeeGold's picture

 

 

Man those folks really do talk purty.

 

If they used plain talk......the natives would lynch them.

Sun, 10/12/2014 - 23:53 | 5322859 IndyPat
IndyPat's picture

And here I thought we already had a centralized money system.

Mon, 10/13/2014 - 00:42 | 5322930 RockyRacoon
RockyRacoon's picture

I just love it when you talk finance, Missy.  It's ... it's ... well, you know.

Mon, 10/13/2014 - 01:05 | 5322960 MsCreant
MsCreant's picture

Always warms my heart to see you around, Rocks! You are such a sensible yet fun raccoon!!

What is your take on this Ebola stuff? For my part, I am not conspiracy minded so much as I think incompetence, inexperience, and hubris could kill us all before they get their "legs" under them with this thing. And no one wants to spend the money to really contain this. I don't see the articles talking about the idea that no one wants the bill so they keep handing off the hot potato until someone else spreads it and dies. They will only do stuff that is high visibility but maybe not high effectiveness (temperatures at the air port). And in a Rahm kind of way, I am sure they are attempting to not waste a good crisis.

I value your opinion as you know. Hope you see this. 

Meanwhile, this is the financial crisis that never ends, is it not? I got a case of crisis fatigue. And that can make one so innured, you are not ready when you need to be.

Mon, 10/13/2014 - 01:20 | 5322989 cherry picker
cherry picker's picture

MsCreant

I know you were replying to a raccon, I'm just a dog :)

Anyway, this Ebola thing hit my mind with something new.  I am not worried about the outbreak as it appears to have different survival rates, depending on location and type of care given, however with the number of healthcare workers affected and so many of them no longer here, I am starting to wonder if the health care system is the primary cause of the disease spreading?

It may sound ridiculous, but if they are wearing protective clothing, etc, as is the case with a number who have contracted the disease, and if the disease is not airborne like the common cold is, it may be time for the health people to check for possible causes in the system.  Are the health care workers getting a vaccine which infects them?

The only other person in Texas who caught the bug is a health care worker, who was supposedly protected, yet his family and others who had contact with him haven't been publicized as having caught it yet, and they were exposed to him for longer without the protection.

 

 

Mon, 10/13/2014 - 10:38 | 5323779 RockyRacoon
RockyRacoon's picture

Well, I don't worry about things until they need to be worried about.  Sounds like circular logic (and it is...), but I see no reason to fret with things that others are supposedly taking care of.   Yeah, there are incompetents out there who will violate even the best protocols for treatment and containment.  If there are conspiracies afoot then we must also entertain the fact that Ebola is not particular about the body it infects.  The elites will fall victim just as surely as the auto mechanic.  If there is a plan to thin the unruly herd of lumpenproletariat, then there is a cure as well.  The cure must be kept from the masses and used only for the salvation of those who "matter".   I can't find it within myself to spend a whole lotta time on this particular world event since it is only an echo of past history.  Time will tell -- when the archives are released 50 years from now.  I'll be dead of natural causes by then.

The same philosophy applies to the financial crisis, point by point.  All I can do is prepare for the worst and expect close to that when the smoke clears.  This will not end peacefully. 

"A great nation is not saved by wars, it is saved by acts without external picturesqueness; by speaking, writing, voting reasonably; by smiting corruption swiftly; by good temper between parties; by the people knowing true men when they see them, and preferring them as leaders to rabid partisans and empty quacks."
-- William James

Since we are no longer a "great nation", the future is cast.

Sun, 10/12/2014 - 20:46 | 5322379 SAT 800
SAT 800's picture

Yeah, t hey're prolly jest funnin with us'n; runnin off to london, and all to play hide the squash.

Sun, 10/12/2014 - 21:20 | 5322432 Yen Cross
Yen Cross's picture

  SSDD, has been offically renamed ,  "Groundhog Day"...

 This shitstorm wreaks of 1987 and October 2007.

 The VIX just above 20. LMFAO! It will be pushing 40 before the end of next week, Bitchez

 

 Look at the bond complex. Look at F/X. Long USD?

 The usdx opened down off the 10-10 daily candle. Risk(yield currencies) are UP.

  Go pound sand, BAC & Citi

Sun, 10/12/2014 - 22:10 | 5322618 himaroid
himaroid's picture

Dead on it Yen.

But it "reeks "of 87. And it will "wreak" havoc like 2007.

I may add some short equities to my long tbond bets.

Sun, 10/12/2014 - 23:02 | 5322775 Yen Cross
Yen Cross's picture

 I sure hope Clint( filo bedo)

 has his head, "screwed on straight".

 That Sandra Lockhart  homewrecker?

Sun, 10/12/2014 - 21:18 | 5322465 logicalman
logicalman's picture

Interesting times!

 

Sun, 10/12/2014 - 21:19 | 5322466 luna_man
luna_man's picture

 

 

Like 600ft. of tangled yarn...Do the CRIMINALS, have the time & patience to unravel or will they start to cut?

 

be ready, i'm sure they'll cut and try to run

Sun, 10/12/2014 - 21:29 | 5322494 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

CANADA is an emerging economy, Legarde. If the USA sneezes we get a cold. Wtf is with you people? Every country in the world is practically an emerging economy. The IMF is annoying IMHO. Legarde is a money whore

like the Mayflower Madame and we ain't getting blowjobs here folks. We are getting fucked, tonight, tomarrow, and the next day too, yippie.

Sun, 10/12/2014 - 22:14 | 5322632 SAT 800
SAT 800's picture

You wanted a blowjob from LaGarde ? You been out in  the snow too long.

Mon, 10/13/2014 - 00:06 | 5322882 IndyPat
IndyPat's picture

If she flips out the fangs and comes out of reptile cloaking during the act, it's probably going to leave a mark on ur dingaling. May want to rethink.

Sun, 10/12/2014 - 22:04 | 5322600 DOGGONE
DOGGONE's picture

Major mispricings and overconsumings are kept unseen
http://patrick.net/forum/?p=1223928
in order to deceive the people.
Crash & burn is explained in advance ...

Sun, 10/12/2014 - 22:22 | 5322649 AdvancingTime
AdvancingTime's picture

 It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward.  When this happens we are at the end game.

At some point the return on loaning money is simply not worth the risk!  Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.

The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.

http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit...

Sun, 10/12/2014 - 22:38 | 5322710 litemine
litemine's picture

All these Games are to create a NEW  set of Super Elite Royals. The Control has been sanction by the American Tax Payer whether they like it or not.

Sun, 10/12/2014 - 23:17 | 5322788 Yen Cross
Yen Cross's picture

  There's always room at the top.

 How you exploite that position, is up to you.

  You live in a country that allows you "free speech".

 How you dispose of your thoughts, is why we write constitutional amendments.

Sun, 10/12/2014 - 23:36 | 5322827 the grateful un...
the grateful unemployed's picture

bonds were never meant to be liquid.

Sun, 10/12/2014 - 23:59 | 5322870 Yen Cross
Yen Cross's picture

  I beg to differ. The short end of the curve ?

 I see your point though.

 Fonz brought up a good bond arguement last week. He suggested yields would rise for exactly your reasoning.

Mon, 10/13/2014 - 06:21 | 5323230 GetZeeGold
GetZeeGold's picture

 

 

He brought up a argument......right before the incident.....which shall not be mentioned.

Mon, 10/13/2014 - 00:14 | 5322888 aka_ces
aka_ces's picture

and now the IMF profers medical advice to the Ebola-positive ...

Mon, 10/13/2014 - 00:28 | 5322915 Ginsengbull
Ginsengbull's picture

Last time anybody prepared for runs, was when Reagan was giving out the gubmint cheese.

Mon, 10/13/2014 - 00:33 | 5322916 Fuku Ben
Fuku Ben's picture

It's like yelling fire in a crowded movie theater

In honor of her heinous the IMF anteater

https://www.youtube.com/watch?v=deLe6DoNGIs

Mon, 10/13/2014 - 00:52 | 5322944 JR
JR's picture

Turn the Crooked International Monetary System on Its Ear | LewRockwell.com

Jeff Deist and Claudio Grass on the Swiss Gold Referendum.

Jeff Deist and Claudio Grass discuss the uniquely Swiss mindset behind the upcoming Swiss gold referendum, and how decentralization of political power is part of Swiss DNA; the tremendous geopolitical aftershocks that would occur if the referendum passes — including the physical repatriation of gold to Switzerland; and how the Swiss people may be waking up to the sellout of their country by the Swiss National Bank and the IMF.

http://www.lewrockwell.com/2014/10/no_author/turn-the-crooked-international-monetary-system-on-its-ear/

Mon, 10/13/2014 - 04:36 | 5323148 SAT 800
SAT 800's picture

Well I;m sure all our thoughts and prayers, (whatever they are), are with them in resisting the huge barrage of propaganda that's coming down on them from their "leaders"; not to mention the UN, The IMF and the BIS.

Mon, 10/13/2014 - 01:25 | 5322999 ich1baN
ich1baN's picture

Great, the correlation coefficient of mutual funds and hedge funds is moving closer to 1 signifying that diversification benefits are at an all time low, due to the fact that the variability in returns of stocks are ever more interconnected in a world distorted by quantitative easing.... not so anymore! Gold and 10 year yields on treasurys just moved in tandem for the first time that I have seen in consecutive day periods in a LONG LONG LONG TIME. It is time my friends that the negative correlation of gold to the market will shine in the upcoming period. 

Get ready to earn some extreme alpha if you believe in MPT.... or if you are Buffet, just buy what is valuable and if you are Jim Rogers, just get lucky. 

Mon, 10/13/2014 - 01:25 | 5323000 ich1baN
ich1baN's picture

Great, the correlation coefficient of mutual funds and hedge funds is moving closer to 1 signifying that diversification benefits are at an all time low, due to the fact that the variability in returns of stocks are ever more interconnected in a world distorted by quantitative easing.... not so anymore! Gold and 10 year yields on treasurys just moved in tandem for the first time that I have seen in consecutive day periods in a LONG LONG LONG TIME. It is time my friends that the negative correlation of gold to the market will shine in the upcoming period. 

Get ready to earn some extreme alpha if you believe in MPT.... or if you are Buffet, just buy what is valuable and if you are Jim Rogers, just get lucky. 

Mon, 10/13/2014 - 03:22 | 5323099 Peter Pan
Peter Pan's picture

In the English language the "runs" is another word for diarrhea. If you are running to the bank to get your money out in fear of losing it, I can see why bank runs could be linked to diarrhea.

Mon, 10/13/2014 - 04:58 | 5323164 GoldIsMoney
GoldIsMoney's picture

I wish for an end of the madness be it in the form of the IMF or any central bank on the world.

Mon, 10/13/2014 - 04:58 | 5323165 dolbiere
dolbiere's picture

prepare for runs? the assholes have been running for years.

Mon, 10/13/2014 - 06:56 | 5323260 Aremo
Aremo's picture

Great. Now with Obola even the banks are getting the runs.

Mon, 10/13/2014 - 07:14 | 5323280 AdvancingTime
AdvancingTime's picture

 The markets are extended beyond beyond and all this comes at a time when the IMF is calling for more QE. It seems this might be a good time to review the reasons this is economically unsound and a bad idea. Remember markets are setting new record highs while economies continue to struggle. The policies of the last six years have yet to produce the desired and expected results promised.

All this money has benefited Wall Street but not Main Street. As a consolation we are told by many economist, bankers, and those who have benefited greatly we would be in far worse shape if current policies had not been taken. It seems Central Banks and the IMF are clueless on how to proceed and on a policy going forward.  The article below looks deeper into the current status quo and the limited options before us. We have gotten to the point where we are pushing on a string.

 http://brucewilds.blogspot.com/2014/09/central-banks-and-imf-clueless-on...

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