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Surveying The Carnage: Bullion Bounces, 30 Year Below 2014 Lows, Stocks Dump
While it took a few hours for people (and machines) to realize exactly what China did last night, the fallout in risk markets is now clearly evident when a central bank decides enough-is-enough for speculative wealth creation bubble-followers. As we described last night, China's tightening has dramatically influenced the carry trade (USDJPY back under 120) and thus global stocks (from Abu Dhabi to Greece), global corporate bonds (all significantly wider) and European peripheral bonds (cracking wider) all face pressure. The beneficiary safe havens so far are precious metals (Gold > $1315) and US Treasuries (30Y at 2014 low yields). For now the mainstream media's narrative is that this oil-driven (which is fantasy as oil prices are up today) - this is the fallout from the marginal removal of $80bn of leverage collateral from the world's carry trades...
First - the winners...
and bonds hit low yields of the year...
And the damage...
USDJPY - carry - and thus Japanese stocks plunged...
Chinese investors realized what was going on...
European stocks and bonds are dumping
And America wakes up to PBOC tightening and good news is bad news...
And as a reminder...
And
* * *
But but but - the US is the cleanest shirt and what about Jobs Friday?
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Buy Gold Bitchez!
Hey ZH'ers
Do you think we can convince Vladdy Putin to take the long side of December Gold Contracts from the Crimex and demand delivery? Imagine the fun when the bankster bastards finally default.
Hey LL, I gave you a green up arrow. How do we know Putin hasn't already established those positions? I've been postulating for months that Putin and/or Chinese may just show up at the Comex some day soon demanding their PM's. Yeah. That would be a hoot! Nice tits, by the way.
One month of S&P gains wiped out in two days.
Do you think we can convince Vladdy Putin to take the long side of December Gold Contracts from the Crimex and demand delivery?
Not sure. All I know is if you're going to invade Ukraine....the first thing you do is get the gold....oops.
I wish you were right Latina, but as long as the Crimex can cash-settle, that won't happen. The criminals tilt the rules in their favor.
Boy - that escalated quickly. That really got out of hand fast!
And no one saw it coming.
Gold > $1315 ....... OK
Give it a few days....
Tomorrow.
Sold to the author for $3015!
What will the TBTF intervention du jour be this time? I'm pretty sure Jamie and Lloyd are mulling that over, with a steaming cup of grande sumpin' in their greasy paws.
Mayhem, the reverse repo action tells me all I need to know. They can't remove liquidity fast enough, all those digital claims are seeking real goods and services... ...especially the paper claims coming from Asia.
Nevermind all the high yield junk bonds in the energy sector that are blowing up. I thought we put an end to "Enron"...?
We can totally hook you up with some Enron.
Might even have a little Bre-X around here. I'll look around....don't hold me to it.
But, but, but... NFIB Small Business Optimism is at the highest level in 7 years!!!
Well when you're the only small business left in town you've got to be optimistic.
because, if you're not laughin' you're crying'.
This is just the beginning. Count down to real crash in 5...4...3...2...1
When do we "recouple"? There is a trade in there somewhere.
Its Putin's fault. I know it is.
We f&^%ed some folks.
I Can't Breathe.
Got pretty excited on the (Gold > $1315) typo... for about 3 seconds until kitco loaded, hah.
Makes sense though as I'm about to get some dry powder to spare for the first time in months. It'll no doubt be headed to $2000 before Monday - you're welcome.
Gold and silver are still up over yesterday, as of this morning.
I am staying the fuck out of this today. Btw, Santa called, he's not feeling quite as bullish as usual.
it is about time and its still too little
the 10-yr was at 1.6 2 years ago. its still at 2.2 now. there's a long way to go, yet.
$1315 raised my blood pressure a little also. Would love for this NE rain to wash out a lot of dirt and scum.
And so it begins. 1,220 first, than 1,240. Just keep that hand on the Tiller. A long long way to go.
And none of this news or a surprise to those of us who have been here a while. It has always been just the timing.
Might be a good time to pick up a lump of gold for your Christmas stocking guys. Just saying, maybe.
Muppets roasting on an open fire....
tastes like polyester stuffing.
Let Mr. Henry have his coffee first, geez.
Hi-yo silver!
This is going to be one wild day. Fasten those seat belts and hang on.
<-- Finish Green
<---Finish Red
I voted red and then realised I don't even know what market this refers to?
s&P 500, sorry.
My vote remains unchanged
Silver Bitchez!
FFS!
You know what would be really wild?
If gold and silver move up and stay up.
That would be really different. Keep your powder dry, they're still out there.