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It Wasn't Only China: Here Is What Else Is Crashing Overnight
It wasn't just China's long overdue crash last night. In addition to the Shanghai Composite suffering its biggest plunge since August 2009, there has been a sharp slide in the USDJPY which has broken its uptrend to +∞ (and hyperinflation), and around the time Chinese gamblers were panicking, the FX pair tumbled under 120, although since then the 120 tractor beam has been activated. Elsewhere, the Athens stock exchange is also crashing by over 10% this morning on the heels of news that the Greek government has accelerated the process to elect the next president and possibly, a rerun of the drama from the summer of 2012 when the Eurozone was hanging by a thread when Tsipras almost won the presidential vote and killed the world's most artificial and insolvent monetary union. And finally, the crude plunge appears to have finally caught up with ground zero, with ADX General Index in Abu Dhabi plunging 3.5%, also poised for the biggest drop since 2009. In fact the only thing that isn't crashing (at least not this moment), is Brent, which did drop to new 5 year lows earlier under $66, but has since staged a feeble rebound.

So... another record high in the fully decoupled from the rest of the world (as well as reality and reationality) S&P500 any minute now?
Some more details on the overnight action from RanSquawk
European equities trade in the red across the board following on from both their US and Asia-Pacific counterparts. Yesterday, saw a negative close on Wall Street, with the slide in WTI prices placing a further squeeze on energy names. This sentiment filtered through to the Asian session, however, the main focus overnight was on Chinese equities. The Shanghai Comp. (-5.4%) saw its biggest 1 day loss since August 2009, with the move lower led by a surge in money-market rates after the Chinese Securities Depository and Clearing Corp raised the threshold for collateral it would accept for repurchase operations. The PBOC tried to stabilise this by intervening in FX markets, setting a stronger CNY fix. However, USD/CNY actually saw its largest intra-day rise since 2008. It is worth bearing in mind that this slide in Chinese equities comes after the recent rally, which has seen the Shanghai Comp. surge circa 30% over the past month to a 4yr high, while US and European equities trade in close proximity to record highs.
This negative sentiment filtered through to the European session with all indices red across the board, with energy and basic material names the laggard sectors. On a stock specific basis, the notable underperformer in Europe is Tesco (-11%) after issuing yet another profit warning, which has subsequently weighed on other UK supermarket names. Furthermore, the FTSE has also been placed under pressure due to its heavy composition of commodity-related names. Fixed income products have benefitted from the softness seen in stocks, with Bunds continuing to extend on their recent gains, as the flight to quality has benefitted core European products. However, the Greek spread continues to widen to the German benchmark amid political uncertainty and potential snap elections, which has also weighed on the Greek stock index (-6.5%), with financials in the index down as much as 8%.
In terms of the day ahead, we kick this morning off with October trade reports out of both Germany and France and follow this up with both industrial and manufacturing production out of the UK. Later today we’ve got further employment data out of the US to look forward to with the JOLTS job opening print for October. Although we note that this data is somewhat lagging compared to other recent indicators, the print is still important given it forms part of the Fed Chair Yellen’s dashboard of economic indicators. Elsewhere in the US this afternoon we get the NFIB small business optimism reading along with the October wholesale inventories and the IBD/TIPP economic optimism print.
Bulletin Headline Summary from Bloomberg and RanSquawk
- European equities trade in negative territory after a heavy sell-off in China overnight (-5.4%) resulting from a spike higher in money-market rates and collateral tightening for repurchase agreements.
- The USD-index has erased Hilsenrath-inspired gains, with the softness in stocks prompting a safe-haven bid into JPY and CHF with JPY further underpinned by an unwind of carry trade positions.
- Looking ahead, today sees the release of US wholesale inventories, API inventories, with ECB’s Makuch, Praet and Constancio all due on the speaker slate.
- Treasuries steady before week’s $59b auctions begin with $25b 3Y notes. WI yield 1.095% after drawing 0.998% in Nov.; would be highest stop since April 2011.
- Fed officials are discussing the future of their vow to hold rates low for a “considerable time,” ahead of a meeting next week where they will weigh that pledge against signs of economic strength
- China’s clearing agency said yesterday it won’t allow bonds rated below AAA or sold by issuers graded lower than AA to be used as collateral for short-term loans obtained through repo
- The new rules sparked a retreat in lower-rated bonds of local government financing vehicles and contributed to the biggest tumble in Shanghai shares since 2009 as noteholders reassessed the appeal of owning such debt
- China’s leaders gathered for an annual meeting to map their economic plans for next year under the theme of “new normal,” a phrase adopted by President Xi Jinping to reflect a push to manage slower expansion
- China’s residential building boom is petering out, with the effects seen from slumping steel and cement prices, to electricity use, rail-freight traffic and retail sales
- Oil prices will stay at about $65 a barrel for at least half a year until OPEC changes its collective production or world economic growth revives, said the head of Kuwait Petroleum Corp
- Because energy accounts for as much as half the cost to produce food and metals, all sorts of commodities will keep dropping, according to SocGen and Citi
- ECB plans to limit duration of emergency liquidity aid (ELA) to banks to six months, Handelsblatt reports, citing unidentified central bank staff
- U.K. manufacturing output unexpectedly fell for the first time in five months in October, declining 0.7% after 0.6% gain in October; median est. in Bloomberg survey was for 0.2% increase
- Greek stocks and bonds slumped after Prime Minister Samaras opted to bring forward the process of choosing a new head of state, risking parliamentary elections in Europe’s most indebted state as early as January
- Sovereign yields mostly higher. Asian stocks lower, Shanghai falls 5.4%. European stocks and U.S. equity-index futures decline. Brent crude and gold higher, copper falls
US Event Calendar
- 7:30am: NFIB Small Business Optimism, Nov., est. 96 (prior 96.1)
- 10:00am: JOLTs Job Openings, Oct. (prior 4.735m)
- 10:00am: Wholesale Inventories, Oct., est. 0.1% (prior 0.3%); Wholesale Sales, Oct. (prior 0.2%)
- 10:00am: IBD/TIPP Economic Optimism, Dec., est. 47 (prior 46.4)
FX
The USD-index was initially seen higher overnight following the latest piece from WSJ’s Hilsenrath which suggested the Fed may drop the "considerable time" phrasing sooner rather than later”. However, the gains for the index were trimmed and subsequently reversed into losses, with the flight-to-quality alongside the slide in stocks benefitting JPY and CHF. Gains for JPY were further boosted by profit-taking in USD/JPY and an unwind of carry trade positions. Elsewhere, despite trading lower overnight, AUD has mounted a modest recovery vs. USD as energy prices pare some of yesterday’s heavy losses, while the latest production data from the UK provided a modest downtick for GBP.
COMMODITIES
Energy prices have posted a modest recovery of yesterday’s heavy losses which saw WTI settle down over 4% at the NYMEX pit close, which marked its lowest settlement price since July 2009, ahead of today’s API inventory report. Precious metals prices have also posted a modest recovery and trade in positive territory alongside the softness in the USD-index. However, iron ore prices were once again weighed on, this time as a result of JPMorgan cutting its 2015 iron ore price forecast by 24% to USD 67/ton, cut 2016 forecast by 23% to USD 65/ton. On a geopolitical front, Ukrainian Military has suspended combat in Eastern Ukraine and is ready to 'observe a day of silence', while Russia's Lavrov says a `contact group` on the Ukraine to meet in coming days to discuss implementation of ceasefire plan in Eastern Ukraine.
* * *
DB concludes the overnight event recap
There's still plenty to play for in 2014 and yesterday we got another date for the diary as Greece's Presidential election process was accelerated to start next Wednesday December 17th with the results likely known on December 29th. Our expert George Saravelos thinks that if the vote is successful the Troika and government should be able to find common ground once this political risk is over but its all coming to a head slightly sooner than anticipated. The failure to elect a President by the existing parliament would lead to a national general election within 3-4 weeks, with the current SYRIZA opposition party leading in the polls (according to various opinion polls). So very large electoral uncertainty and the lack of an official financing backstop ensures a meaningful period of uncertainty ahead for Greece. In rounds 1 and 2 (Dec 17th and 22nd) the Government requires 200 out of 300 MPs which is extremely unlikely. In the final round (Dec 29th) they require 180 votes. George believes that the probability of an early election is 60/40. This risk has fallen a little of late as some swing voters have leaned towards the Government but this is becoming quite a binary event into year-end with the process starting on the same day as the Fed have their all important meeting. In itself this may not be a huge global macro story but it could indirectly lead to the first non mainstream party being elected after a few near misses in recent years. How they behave if they get elected may give us some clues about the end game in Europe. Would SYRIZA be successful in pushing for further debt restructuring and a different policy approach or will the negotiations with the EU force them to toe the existing line due to the consequences of not doing so? An interesting period ahead.
So the voting kicks off on FOMC day and talking of the Fed, they will surely be scratching their head at the fact the 10 year Treasuries is back to 2.26% only one trading day after the positive shock from payrolls. We traded at 2.25% just before Friday's blockbuster report only to then hit intraday highs of around 2.34% yesterday before rallying hard into the close. It was a particularly data-light day in the US so some dovish notes from Atlanta Fed’s Lockhart (who will be a FOMC voting member next year) appeared to provide some direction. Specifically, Lockhart commented that ‘inflation is the one key element that does not seem to be consistent with what we are seeing in terms of growth and what we are seeing in the labour market’ and also that ‘if inflation goes completely sideways or begins to indicate a decline, disinflation, then I think it will raise some concerns’. The largely centrist figure went on to say that the Fed should be in no rush to drop the ‘considerable time’ language if it conveyed an imminent lift-off decision, although re-iterated his projection of a ‘midyear lift-off’. On that note, WSJ's Hilsenrath reminded us that Fed officials are seriously debating dropping the ‚considerable time? language at the upcoming meeting but no decision has yet been made apparently.
The demand for Treasuries was probably also fuelled by what was a notably weaker day for risk assets yesterday. The S&P 500 came off its record highs to close -0.73% at the end of play whilst credit markets also softened with CDX IG +2bps and HY energy bonds generally off a couple of points. The day saw another big leg lower in Oil markets with both WTI (-4.24%) and Brent (-4.17%) closing at $63.05/bbl and $66.19/bbl, respectively. Both oil grades closed at their five year lows and are extending those declines in trading this morning. There were a few negative reports which may have added pressure on oil. Saudi Arabia last week reportedly (Bloomberg) sold crude into Asia at the deepest discount in at least 14 years whilst the head of Kuwait Petroleum Corp was on the wires saying that Oil prices will stay at about US$65/bbl for at least half a year until OPEC changes its collective production or world growth revives. Interestingly Kuwait yesterday also announced that it plans to spend about $7bn to develop heavy oil fields despite where oil prices are now which serves as a contrast to what its US peers are doing. Indeed ConocoPhillips is planning to cut its 2015 capex spending plans by 20% relative to what it did this year. Specifically the company plans to slow its activity in US shale exploration. Back to market moves, Energy stocks (-3.9%) led the sector declines in the S&P 500 yesterday by closing lower for its third consecutive day. Large cap names such as Exxon Mobil, Chevron and ConocoPhillips closed -2.26%, -3.67%, and -4.16%, respectively.
Turning our attention to this side of the Atlantic, there was something of a rally in both core and peripheral government bonds yesterday following comments by the ECB’s Nowotny. Looking at the price action, 10y benchmark yields in Germany (-7bps) and France (-6bps) tightened to 0.713% and 0.970% respectively whilst looking across the peripheral space, there were notable gains for Spain (-4.8bps), Portugal (-2.9bps) and Italy (-3.4bps) to 1.785%, 2.719% and 1.943% respectively – all fresh record lows. Indeed the latter has hit a record low despite a move on Friday after the market close by S&P to cut its sovereign rating to BBB- (stable) from BBB. Coming back to the comments from Nowotny yesterday, sentiment was somewhat lowered after the ECB member was quoted as saying that ‘we see a massive weakening in the eurozone economy’ as well as expressing concerns that inflation would fall further in 2015. On the subject of QE however, and in stark contrast the Bundesbank Chief’s Weidmann recently, Nowotny appeared to be more on board with the idea of public QE, specifically saying that it was ‘widely formulated’ that the central bank was considering all assets and instead saying that ‘of course we’re thinking specifically about government bonds’. Wrapping up the market moves, the Stoxx 600 closed -0.67% - not aided by a decline in the energy component although in reality all sectors finished the day in the red. Finally German industrial production came in at a modest miss, the +0.2% mom figure below market consensus of +0.4%.
Away from the declines in energy stocks, EM currencies are one other such asset class feeling the force of a plummeting oil price as well as a stronger Dollar. An article in the FT pointed out that an index measuring a variety of emerging market currencies has dropped to its lowest level since 2000. The falls appear to be wide-ranging, with the likes of oil-sensitive producers like Russia and Nigeria in particular suffering from the slump in prices and hitting all time lows whilst oil consuming countries including Turkey and South Africa are also suffering from a depreciating currency. Just staying on this topic of FX markets, there was news yesterday that Mexico’s central bank is planning a currency intervention following a drop in the Peso to a two year low at 14.39/$ - slumping around 10% over the last six months (Reuters). The central bank have stated that policy makers will auction $200m on days when the Peso weakens at least 1.5% from the previous close – mirroring similar support put in place in November 2011.
Refreshing our screens this morning Asian equity markets are mostly trading lower with the exception of China. China interest rate swaps rose to a 3 month high on news that the regulator has stopped accepting new applications for repo for lower graded credits spurring expectation of lower demand for these issues. The volatility has forced one of the top-tier issuers (State Grid Corp of China) to delay its planned bond sale. This weakness has also prompted demand for China 5y CDS which widened by about 2bps overnight. Malaysia is also bit of an underperformer as its CDS moved 6bp wider with the oil exporter suffering from the further declines in crude. Back to equities, the Hang Seng, Nikkei and KOSPI are all down -1.12%, -0.87% and -0.30% as we type. Staying within the region we also have the AUD moving sharply lower overnight. The Aussie is now trading at around 82.3 cents against the USD down from around 83.2 at the end of last week as RBA rate cut expectations continue to build.
In terms of the day ahead, we kick this morning off with October trade reports out of both Germany and France and follow this up with both industrial and manufacturing production out of the UK. Later this afternoon we’ve got further employment data out of the US to look forward to with the JOLTS job opening print for October. Although we note that this data is somewhat lagging compared to other recent indicators, the print is still important given it forms part of the Fed Chair Yellen’s dashboard of economic indicators. Elsewhere in the US this afternoon we get the NFIB small business optimism reading along with the October wholesale inventories and the IBD/TIPP economic optimism print.
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The Greek vote will go the way that best suits the EU. This is a very interesting trend that never fails.
Whenever there is a vote in the South of "Europe" it always, always,always goes the way that the EMZ needs to continue its existance.
Its likely egregious voter fraud, but it is the way it is. Nothing will change until there is a bloody violent overthrow somewhere.
AKA the Status Quo continues.
why "likely egregious voter fraud" when a super-majority of Greeks want to keep the EUR? or, better, don't want to go back to the Drachma? still in the ballpark of 65%-70%
there is only one political party that is in part against the EUR: SYRIZA. And they are very socialist, to boot, with an electoral potential for some 35% of the votes, at max
Golden Dawn is now for the EUR? News to me.
I am talking about the trend, over (Greece 2010) and over (Italy 2012) and over (Greece 2012) and over again -- there are "close"elections where the pro status quo party wins. At what point do YOU being to scratch your head, and think "what are the odds?"
I forgot Golden Dawn, though their numbers are negligible, at the moment, and might be declared illegal, at some point
Haus, whenever you analyze foreign countries... do you include local sources, be them locals or local media? Or do you let yourself be led by the English-speaking media and your hopes?
I have pointed several times here on ZH that there is a conservative "backbone" in continental europe that is regularly disregarded by the English-speaking world. Possibly because the AngloSphere does not recognize it as "conservative", since conservativism and liberalism are strongly interwined, in the AngloSphere, possibly because of the two-party leading FPTP voting systems. Or possibly because of a lack of understanding of different cultures, or a different narrative led by "talking about your book"
fact is... conservatives tend to like the status-quo, in general. it's socialists and liberals that usually strive for progress, or change
Greece is a strongly conservative country, like all southern european countries. If you want any change whatsoever, you have to first convince or bypass conservatives, there. And this includes the EUR, by now
A stronly conservative country, which has
PASOK - Socialists
New Democracy - Extreme Left of Center
SYRIZA - Left Socialists
Greek Commie Party - Commies
These 4 parties together consist, of over 75% of the voting population.
Yes, yes very conservative.
I agree with you from the outside, but polls are easily skewed, and in many cases are used to herd behavior in a general direction. It's human nature to think that the crowd has wisdom. Also, I don't consider 65-70% a 'supermajority', but we can disagree.
you got me checking, and you are right: "two-thirds" are not considered everywhere a super-majority. I'm used to places where it is so, but it isn't so everywhere
Syriza is what Greece really needs.
Neo Democratia are just muppets of the Eurocrats.
But the Greeks are the ones to choose. The price they pay for having the EUR is getting dearer by the day. Soon enough they will qualify for African Union membership, if standard of living is anything to go by. OK maybe not that bad, but you get the picture.
I don't remember dealing with you before.
When engaging Ghordo on anything "European" remember that his outlook on "Europe" is very similar to this;
http://youtu.be/7jiaU0xbOKs?t=7s
Never let petty things like Democracy and the fundamental right of Human Self-Determination get in the way of the "dream."
I like the Targaryens. Fire melts ice, but I haven't read the books so I do not know how it will pan out.
The project should have been a northern European one all along, they fucked up with too much expansionism towards East and South, countries who are simply not ready fiscally as the north to make it work.
You are 100% correct.
Now we have to wait for Ghordo to tell us how this conclusion based in economic reality ignores "Continental Europen Culture" and is simply a product of the "English Speaking Anglo/American Culture"
Make the EUR and NEUR and I am the biggest fan ever.
The status quo is fucking stupid based exclusivly on the dilusion that I gave you in the video above. The EU's Anthem is "Alle Menschen werden Brüder" (All People Are Brothers) illustrates this insanity, and regrettably, as things get worse, the idiots in Brussels drink more coolaide. Sadly this will not work itself out without extreme bloodshed.
Actually it means 'all people become brothers'.
werden = to become
sind = are
You are correct. My apologies.
when the famous German writer Friedrich Schiller wrote that little poem... well, he was engaging in a cultural excercise involving classical (and romantic) concepts like Elysium. Question is, did you ever had to write on Elysium or similar things in school? Plenty of Portuguese, Spaniards, Frenchmen, Germans, Italians, Greeks, etc. that I know did that, and could, in a polite conversation at a table, talk about it. Or why Elysium is such a "tongue-in-cheek" thing for Schiller to write about, and the root causes of that revolution in Ancient Athens
England and America both used to belong to this cultural fold. The same discussion could have been done with the US Founding Fathers. They were full of classic references, and built things like a Capitol, or a Senate, or quoted Roman sources in matters of law
I can't change the fact that at a certain point in history both the US and the UK left this cultural fold. I can only speculate that it was in order to more easily nurture the concepts of "American" and "British", which are imho meta-cultures, or at least were that
nevertheless... your very example highlights in my eyes what I'm trying to explain to you - things that are happening, and for which you don't have an answer - while using a very badly suited medium for that, the "fast blog comment".
So my suspicion is that you can't understand Schiller's poem's meaning in the way it is used there, which is very subtle and layered in depth
So if it is tongue & cheek -- then the EU is mocking itself.
Which is it?
depends... on which side you are. It all comes to why you are in Elysium. Are you, like Solon, out of free will, so that your constitution won't be changed? Or were you banned, straight, like most?
the simplest point of Elysium is that when banished from their context or country, and in the same foreign/neutral/sanctuary/sacred place, sworn enemies can become friends, even brothers. something Ex-Pats can tell a few things about
so the simplest point of that poem is a very simple question: if we can refrain from killing each other in Elysium... why don't we declare our countries or factions part of Elysium and scrap this endless killing?
(I think btw that George Washington - the first US president - wrote something about Elysium and against factionalism. I have to look in some old notes I made)
LOL. I still have only a faint idea what the Targaryens are. Further, re my outlook... well, this continent is smaller for me then for you. A function of me being older and having visited extensively the different countries, for both peasure and work
Meanwhile... "Never let petty things like Democracy and the fundamental right of Human Self-Determination get in the way of the "dream." "
Seriously? Again engaging in projection? A proper confederational setup of any kind of alliances takes care of both fundamental issues. The main difference between a federative and a confederative approach is... the exit door kept open
It's you slightly despising "Southerners" while moaning that they don't vote the way you would
Brazen Heist points to a completely different matter: the expansions. Interesting point, worthwile discussing, yet one reminder: without Italy and France, there would have been neither an EU nor a German Reunification nor an ECB
And since Haus-Targaryen considers even the French to be something like the "Latins" in the US... you'd be talking about a very Nordic "Nordic Alliance"
Question is... based on what? Which commonalities of thought and customs? House does still not know enough about european history to understand why it's the Latin countries of Europe that "have the mortar for that", or even how "Latin" countries like Austria or Germany are, in their cultures and history. Culturally speaking, modern Germans are Latizined Germanic Tribes, in the same way as the Normans that invaded England in 1066 were Latinized Norsemen
In order to attempt to prove your point, you go back 1,000 years. Excellent.
Also, why Germany needed France and Italy's permission for reunification is still beyond me. But I bet you have some extreme right-brain justification for why one group of people needs to have another group of people's permission to do something. But alas, I digress.
And you are correct, the problem is what we have is not a confederation. The door is not open to leave. Remember Mario Draghi's "This is irreverisble" statements over and over again? Doesn't sound like the door is open to me.
There is economic cultures in Europe that are materially different than one another, see this;
http://www3.weforum.org/docs/GCR2013-14/GCR_Rankings_2013-14.pdf
Because I know you will try and spin this, and most people won't click the link;
World's nations based on competetiveness in my proposed NEURO;
3. Finland
4. Germany
6. Sweden
8. Netherlands
15. Denmark
16. Austria
17. Belgium (Flemish and German parts)
Nations I propose in my proposed SEURO
22. Luxembourg
23. France
35. Spain
49. Italy
51. Portugal
So Ghordo, ball is back in your court to explain to me what Italy and Finland have so much in common that they can share a currency. I have laid out what they don't have in common (e.g., the ability to compete with one another on an internatinal stage) The commonalities are simply -- a common way of managing economies that si derived from the underlying monetary cultures of over-production and under-consumption.
Oh yeah, Greece is 91. Explain to me why they share the same currency as #3.
not only excellent, also very... continental
Germany did not need permission. it needed support. Against the UK's policies of those times
Draghi? Words? You might not have understood what function Draghi's words have. Just listen what he is promising, and have a look what the ECB is really doing
again, you are looking at a currency zone and discriminate against nations. further, you believe in underlying monetary cultures. with Germany having a sound monetary culture, despite it's long history of hyperinflation and monetary mismanagement, and recent better management... but wait a moment, didn't Germany increase the DM's monetary zone to... Eastern Germany? At 1 to 1, against all advice, for political purposes? Something that is still costing a bundle to every German taxpayer? Ask around you what a "Solidaritätszuschlag" is, and how it came about
Nope. I'm sorry, you are still a neophite when it comes to monetary policies. It's ok, you are still young. But you might learn something if you read and remember carefully this: a successful monetary policy set has very little to do with competitiveness. in fact, during a currency war, competitiveness might even be a critical hindrance, at points. Your A-Team? nice, but it would be eaten up by experienced "players" of the "currency game". You don't believe me? Then ask yourself who is beating who, at the moment. Note how Russia's Ruble is being trashed, and explain why. Read, think, and perhaps in twenty years you'll remember old, insufferable, pompous Ghordius and his words, and realize a few things. Cheers, I have to go
Have a good evening.
I thought the treaties were silent on whether you can leave the euro. And withdrawal from the EU is possible. Then again House, what matters is not so much what is in these treaties, but whether Germany has the capacity to leave if it wants to. I contend it has not. The EU has no army, but Germany is an occupied country hand I suspect the American intelligence services are all over the place. The German elite is happy with this. The majority of Germans seem not to mind too much as long as their economy is strong, which is a legitimate point of view. Economic pain might change that equation and the TPTB know that perfectly well, that is why they thread so carefully. The coming years will be interesting to watch. Germany is playing an outsized role in economics, not so much in the security architecture of this world. Both are very much linked. Simply shouting that you need your own currency is foolish without the military and intelligence clout to match.
I will leave my personal opinion on what I think ought to happen, which is quite nuanced yet not completely formed, out of it.
So if it is tongue & cheek -- then the EU is mocking itself.
Which is it?
What a choice !
European Union scum or Communist far left scum ?
BTW this country is completely broke, it doesn't matter anyway apart the Eurozone collapse of course.
I know. But hey, its Greece. I've lived there. It is a very sharply divided society between left/right, with the fascists in charge of the police forces and the moderate ones supporting Neo Democratia, whilst the extreme ones with Golden Dawn.
The rest of society are either communists, anarchists and other versions of leftists. There are hardly any in between. Man, I've been to a few riots over there, they don't fuck around. The police are banned from entering universities in Greece due to mistrust from the Junta era. So naturally, university is where you organize all the protests.
PASOK lost credibility with their handling of the crisis, while Neo Democratia are frequently associated with the corruption that lead up to the crisis, so little choices left, except the new firebrand kid on the block, ALex Tsipras.
And who the fuck paid for those polls that determined this Euro love?
You may be right Ghord - but when Euro leaders have hinted at a vote to leave the EU they have pretty quickly been given the boot (happened in Greece and Italy remember?). The people tend to go with the PR and that has been directed at keeping the status quo going.
Remember the "stupid American voters" comment - pretty much goes for the majority of voters everywhere.
K@
well, yes, when the Greek Prime Minister started to talk about having a referendum... the Greek Parliament found they needed a new government, and booted him
That's the way their constitutions work, both in Greece and Italy, and most of europe
China goes up 30% in the past month and then "crashes" 5% overnight. "yawn". It's all Bullshit!!!
Time to mention QE4? Or tomorrow....
Oh give it up already.
They're DONE with QE bullshit.
That doesn't mean they are done talking about it.
Sorry headbanger. I disagree. If rates rise the American government goes bankrupt, or depositor confiscation and a massive credit crunch.
Or they inflate the currency away, and blame Putin when the whole thing explodes.
But, But, But US markets will stage "unexpected" out of a$$ rally as safest country in the world...
Exactly what will happen soon!
Because they can't stop it now with the entire financial system made into a Ponzi scheme
What part of it's doomed to implode and there's nothing anyone can do about it don't you get?
You people simply can't comprehend there's going to be a complete financial collapse soon.
Followed by a major global war
Oh but just keep dwelling on safe problems to worry about like global warming bullshit.
What in the actual fuck?
I know the whole thing is a Ponzi scheme and will implode.
I know it will be a complete financial apocalypse.
I know it will be followed by a major war.
I know global warming is bullshit.
Chill man.
So a Financial melt down and a Global war....Hmm so they will fight this war for free?
I almost forgot to add
BECAUSE OBAMA!
Word is he has isolated himself and is drinking heavily....maybe we should check in on him.
Then again maybe we shouldn't lol
You may want to look into Executive Order 13603. "According to EO 13603, the President, or the head of any federal agency that he shall designate, can conscript “persons of outstanding experience and ability without compensation,” in both “peacetime and times of national emergency.”" The govt can, for the most part, take all you have including your labor.
Hmm, I thought gambling was forbidden by Islam.
Instead of taking people heads off.......just play Bingo......it's fun and it doesn't cost much.
Rules and laws are for the little people.
It's kinda like Scientology......you pay enough in.......you can do any damn thing you want.
no, no no. That's Catholocism. Give the child rapists enough money and your sins are foregiven. In scientology, if you give enough money, you can talk with tomatoes.
Dollar gets crushed next
And the Feral Reserve is forced to jack up rates to save it.
And force the US government to admit it's insolvent?
Sounds like true price discovery to me...I welcome it.
Philosophically I agree, but I hope you have a bunker to wait in for a few months while the masses starve and kill each other.
...and i just converted my 401/superannuation to precious metals
im sleeping well tonight. how bout you boys?
We're scared, aint you boys scared?
Got my MyRa........who's nervous?
$CU is off the lows....to even lower lows. Someone got a hard on for WTI and NG. Also, and I'm sure its our mysterious Belgian buyer with unlimited credit, is pumping the shit out of AUD trying to spark some momentum buying.
https://www.bing.com/videos/search?q=this+is+the+day+song&qpvt=this+is+the+day+song&FORM=VDRE#view=detail&mid=145D03870A8194F2F24B145D03870A8194F2F24B
Cue the full retard QE...
http://olduvai.ca
A Yen movement that unwinds carry positions should be bearish for SPX, given the correlations.
Buckle up!
Markets are just taking a much needed rest, prior to the next leg up. It's all very bullish!
The great Amerikan consumer will save the day as always.
All we need is MOAR!
Don't worry, Mr. Rothchild is in firm control.
Yes but the US stock market has decoupled unto a totally fraudulent set of FED software applications under the guise of national security and on behalf of Goldman Sachs.
Anyway, it's about time to smash gold again, and especially the miners.
<-------- 1% correction by 4 pm
<-------- rally by 4 pm
Rally... Bulltard will make a not so subtle comment to assuage all fear. To the moon, Alice.
days like this i wish i just stayed in my harum
"there has been a sharp slide in the USDJPY which has broken its uptrend to +? (and hyperinflation), and around the time Chinese gamblers were panicking, the FX pair tumbled under 120, although since then the 120 tractor beam has been activated."
Greatest phrase in recent memory
It's an interesting system in which the jugglers try to fit the financial system to a model that's not actually happening in reality. They are about to be served up the result their foolishness.
you mean we are