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Crude Carnage Contagion: Biggest Stock Bloodbath In 3 Years, Credit Crashes
We leave it to Jack to explain what happened this week...
Quite a week!!
- WTI's 2nd worst week in over 3 years (down 10 of last 11 weeks)
- Dow's worst worst week in 3 years
- Financials worst week in 2 months
- Materials worst week since Sept 2011
- VIX's Biggest week since Sept 2011
- Gold's best week in 6 months
- Silver's last 2 weeks are best in 6 months
- HY Credit's worst 2 weeks since May 2012
- IG Credit's worst week in 2 months
- 10Y Yield's best week since June 2012
- US Oil Rig Count worst week in 2 years
- The USDollar's worst week since July 2013
- USDJPY's worst week since June 2013
- Portugal Bonds worst week since July 2011
- Greek stocks worst week since 1987
Some serious intraday volatility this week as hope kept shining through but in the end, reality won. Despite spiking euphoria among US Consumers, concerns over Greek elections, Japanese elections, the GDP-plunge-driven collapse in oil prices (with neither OPEC nor non-OPEC willing to blink yet on cutting production), and contagion to high-yield finallly caught up with stocks after they blindly followed the mainstream media narrative that low oil prices are unequivocally good for every muppet.
First things first... 2014 so far... "why would you buy a Treasury bond when you can buy stocks with dividends?"
Here's why crude matters...
ES trading vs. Crude for the week pic.twitter.com/Dv5yweu5aZ
— Not Jim Cramer (@Not_Jim_Cramer) December 12, 2014
No Hindenburg Omen today but it appears the Dow & S&P are pressing down to test their 50DMAs...
On the week, The Dow was the laggard... NOT OFF THE LOWS
And Energy sector the worst...
The Russell 2000 closed the week negative year-to-date...
VIX surged this week (ignore the excitement over percentage moves)...
Treasury yields collapsed...
Leaving the decoupling at epic levels... between bonds and stocks..
and between credit and stocks...
The Dollar slipped a little today to end the week down over 1%
Gold and Silver had great weeks - very stable as the rest of the markets turmoiled - while oil prices
Crude is now down 25% from the initial OPEC leaks...back below $58!!
Makes you wonder eh? The decoupling began when QE3 was hinted at...
and energy credit is near 1000bps now... and is starting to spread to rest of the HY markets...
notably worse than stocks (for now)...
* * *
But it's all about the fundamentals!! Great Jobs Data, Great Retail Sales Data, and Great Consumer Confidence Data - unless that's all totally manipulated bullshit?
Charts: Bloomberg
Bonus Chart: How much longer can this go on?
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Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.
FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...
It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
------------------------
Global Debt Crisis
Authored by PANAGIOTIS TRAIANOU
Sell the rips....cups of coffee/speed dating the fucks....yeeeeeeeeeeeeeeee HAWWWWWWWWWW!
Laughable quoting western CIA run media about Russia.
Just think what they try to do to Russia via blatant FX speculation. Exactly what FED wants to do here in US, spawn inflation and debase dollar for our own good.
Production of Russia industry and agriculture for domestics market increased already 20% this year and keep going. Obviously instability breeds speculation so poor Russian are being hurt at least in short terms but jobs are plentiful and pay increases.
Mercedes cars are being shipped from Germany as nothing happened and car prices are going up only slowly more or less with wage growth. They will wait to repatriate profits back to Germany when exchange rate improves.
In roubles Russia’s GDP is growing. Even jobless from bordering EU countries moving there to find work due to EU economic collapse and Russia response to Western sanctions. That should tell you who is suffering most.
Cheap food imports are coming from Brazil, Argentina, Chile, Venezuela, China, India, Iran etc. countries which also had their currencies collapsed against dollar. But who cares they trade among themselves in their currencies. Putin signed over $Trilion in none dollar denominated trade with Asia over next 20 years.
Listen to Putin what he said why prices of oil are falling. He admitted that the major reason is, long hidden, collapse of demand mostly in western world and now in Japan and rest of Asia, by as much as 60% in some countries over last 6 years. Oil prices were held artificially high by cartel after 2009 to slowly unwind derivative bets by few TBTF banks using QEs of CBs meanwhile they loaded last storage tanks and tankers they could put their hands on to hide the loot as well as lying through teeth about production numbers.
Now Saudi, with US blessing, in order to break Russia’s support for Iran and Syria dumping oil cheap on market as Saudi brothers in ISIS do. Except for China no one is really buying even at $60 due to FX exchange rates. It looks like, support for fascists in Ukraine and their war mongering, sanctions against Russia and general bully attitude accelerates process of de-dolarization of world trade, first for countries with low US nominated debt.
Keep up good job Barrack. Don’t hurt yourself.
First order of the day is to stop panic contagion going into the end of the year....else the herd will stampede and all try to fit through that few days wide door.
TPTB will put a floor under the market ......power it higher and burn some shorts along the way. And end of year bonuses are at stake so...attempts to ramp from the usual suspects.
The strong USD is a problem...but the end of year approach and weakness in stock market could set up a perfect storm...they will want to insure against that risk first.
My feeling is that TPTB wil try and keep it all together to the end of the year.....BUT I think there will be too many nerves about the new year...and many might not want to hold through it......last minute sell off.
I think they will try and keep gold range bound without really trying to trash it more and spark further strong buying...
You can't artificially lower the prices without risking supply. Remember the soviet union? Stuff was cheap, everyone had the money only the shelves were empty. This will end up the same.
Hey Meat- I quit my job back in sept to get my 401k $. Felt the exact same way. It's my money not there's. Not to mention I hated my job and was about to throw my general manager in the oven ala Goodfellas style. I'm just waiting for the first of the year for tax purposes as in so I don't have to pay any.
If you really want to go rogue just stop filing a return. It's illeagal to sign it as it makes you a felon to do so. And you have 5th amendment protection from self incrimination.
The gov only throws you in jail for avoiding or evading taxes. You would be doing neither. You are just following the law.
Welcome to freedom my friend.
Please elaborate..
The disclaimer before you sign your return states that it is a felony to knowingly put false information when file. If you know the tax code itself is fraudulent and the irs can't guarantee the accuracy of your return then you would be committing a crime by signing it.
Also because your W-2 is an inaccurate document because it does not fully state your true income and tax liability. The FICA match made by your employer is actually paid by you the employee. That means the income that was denied to you and the %100 taxation on that income never shows up on your W-2 so you'd be filling out your return with incomplete information.
Also the federal tax you pay in after tax income via inflation never gets reported. Inflation is a hidden tax on everything and so you have no choice but to pay federal tax on income that has already been taxed. So that means that if you can't account for the taxes via inflation on everything you purchases, including food, then your tax return would have false information thus making you unable to sign your return.
Oh and there is the whole federal reserve being unconstitutional and we are forced to operate in a system that funds illegal money laundering, terrorism, you name it.
You are just following the law.
People should start slowly buying crude (go etfs if you are affraid it will go under 40). More cars are sold but thats not even the point the use of PLASTICS is going way way up, using metal is expenssive where as plastics are more durable and cheaper and what do you need for plastics? OIL.
If you want more reasons: Geopolitics, supply, lobbying.
So while we are waiting for fusion power or those orbiting solar panels, oil is here to stay.
People should start slowly buying crude (go etfs if you are affraid it will go under 40). More cars are sold but thats not even the point the use of PLASTICS is going way way up, using metal is expenssive where as plastics are more durable and cheaper and what do you need for plastics? OIL.
If you want more reasons: Geopolitics, supply, lobbying.
So while we are waiting for fusion power or those orbiting solar panels, oil is here to stay.
More QE coming folks, and i guarantee it.
As for the decrease in oil price, just one of the spinning plates fell and broke. The juggling will continue for now. And whatever you do keep smiling like it was all part of the act.
Like sand through the hour glass, so are the days of our lives.... doo ti do do doo doo doo....
Don't ever forget how important it is to keep monkeyhammering gold. Much more so, than say supporting commodity prices, like, say OIL!
Would some judicious use of torture help this situation? Couldn't we get the truth?
Long non perishables
Short TV
Apparently the bankstas are trying to blame Putin for banker deaths.
http://www.dailymail.co.uk/news/article-2872583/If-happens-not-accident-...
I'd like to see the shit show crash also but I'm getting complacent with all this magnificent plunge rescue. I have friends that are much smarter than me and personally knowledgeable about the total economic fraud that we have become. To a person all I get is head scratching when I ask how long this can go on. Everyone is surprized at the legs of fiat. I beleive the Fed masters and muppeteers are surprized too. They are caught in thier own web, no where out, just stalling for time while the pile of C4 grows. Oh what a tangled web they weave, when first they practice to decieve, lie, cheat, steal, lay you over and bugger you.
The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls
OR
When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.
http://www.marketoracle.co.uk/Article40231.html
Can anyone imaging any respected world leader spending 20 days lolling around on a sunny vacation with all the problems going on. The stock market dive is the least of it.
FortWalton- your mistake is that you think Barry is leading anything. He is a puppet, someone elses hand is up his ass. Oh and someone else is pulling Barry's strings. He always has someone or something up his ass regardless.
What you say may well be correct but these lengthy Hawaiian Christmas and Marthas Vineyard August vacations sure have a "Let them eat cake" aspect to them.
Who wants to make a bet come Monday the market will rally and PM's will get slammed because of the passage of Cromnibus. Funding till next year means more gov money to prop up the economy. Plus France was just downgraded which means the dollar will strengthen against it and Russia. Not to mention that people will BTFD on oil which is good for the dollar bad for PM's.
I'd say a 250+ djia and a %2.4 drop in metals.
"We are right on schedule. Collapse the world economy, get the guns from the goys in America, then let the savages from Mexico and Central America run lose and rape and pillage and destroy the populace of European descendancy. Destroy Russia and let our Israeli oligarchs pillage the remaining resources whilst our Bolshevik ancestors stream in to rape and pilage the Russian people. Right on schedule"
-Lord Rothschild
yeah baby! https://www.youtube.com/watch?v=EADAxuqnqqQ
Many ZHers have been yelling till they are hoarse at these yield chasing muppets. Now vindicated in this month where markets should be lackluster for the hols. These muppets should remember to send gifts of the Season to their snake oil financial advisers.