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Central Banks Scramble To Stabilize Crashing Markets: China Fails, Switzerland Succeeds (For Now)
Following a week in which the Chinese stock bubble popped and a weekend in which the Eurozone bubble followed, it was all up to central banks to stabilize the devstation that would follow should the Plunge Protection Team, now global, not show up.
And while US equities futures were looking grim overnight, China at least started off on the right foot, rising a little over 2% in early trading following China's scramble to stabilize markets as it knows the alternative could very well be (deadly) civil unrest. And then something unexpected happened: the market did not follow the Chinese central bank script. In fact, as noted earlier, stocks plunged tumbling as much as limit down for CSI-300 futs, and the SHCOMP crashing the most since 1996.
This was not supposed to happen: in fact, with China unleashing the bazooka of the double rate cuts, it was virtually assured that at least China's stock would rise as the rest of the world tumbled on Greek worries. That it did not was the biggest red flag, far more so than what the Greek referendum reveals this weekend, as it means that after Sweden last week, now China has lost control!
According to Paul Chan, chief investment officer for Asia ex-Japan at Invesco in Hong Kong, "China’s fourth interest-rate cut since November failed to stabilize the stock market as it was seen as a stopgap measure to stem a slide in share prices rather than an effort to revive the economy." He added that "It seems like policy makers are more worried about the stock market than about the real economy. The economy is slowing down and they are so much behind the curve in terms of easing. But as the stock market corrected, they jumped in, putting in all the policies. It gives people a sense of panic."
That's about right: and now with rate cuts no longer stabilizing the market which as revealed was the PBOC's only real motive, the next and final option for the Chinese central bank is QE, just as we predicted.
But until we get then, there is a question: what happens in the interim. Because at the open, Europe looked in the abyss, and with no help coming from China, it did not like what it saw:
- EURO STOXX 50 FUTURES FALL 7% AT MARKET OPEN
- DAX FUTURES DOWN 5%. CAC DOWN -5.3%
- GERMAN BONDS SURGE AT OPEN, 10-YEAR YIELD FALLS 20 BPS TO 0.72%
- ITALIAN BONDS DECLINE WITH 10-YEAR YIELD RISING 57 BPS TO 2.72%
- SPANISH 10-YEAR BONDS DECLINE WITH YIELD RISING 43 BPS TO 2.54%
And then the answer came from the Swiss National Bank, which stepped in to prevent the collapse just as Europe was opening. Because seemingly out of nowhere, a tremendous bid came in to life the EURCHF, buying Euros (against the CHF and the USD) and selling Europe's last left safety currency.
We now know that it was the SNB, the same central bank which is the proud owner of well over $1 billion in Apple stock.
- JORDAN: SNB INTERVENED IN FRANC OVER NIGHT
- JORDAN: SITUATION OVER WEEKEND MADE INTERVENTION NECESSARY
End result:
As the SNB president admitted: “There was an increased demand for francs” over night, Thomas Jordan says at conference in Bern. “The SNB intervened in the market to stabilize it.”
In other words, without the SNB, the situation would have been truly dire.
And this is only on Monday night: we now have 5 more days of agonizing wait until we get to the Greek rerferendum, which may not even happen because as German FAZ reports Greece may not even have the funds to hold the Greferendum!
To be sure before the week is done every single other central bank will have a go at stabilizing the "market" although if everyone else decides to sell, the Chinese contagion will spread as central bank after central bank loses market intervention credibility. At that point, it will be time to really get the hell out of Dodge.
A deeper look at markets, starting in Asia: PBoC cut interest rates for a 4th time in 7 months by 25bps with the lending rate lowered to 4.85% and the deposit rate lowered to 2.00%, while it also cut the RRR rate by 50bps for banks which lend to agricultural and small and medium sized businesses and by 300bps for Non-banking financial companies. (China Economic Net)
Asian equities plunged as participants react to the latest developments in the Greek crisis, while losses in the Nikkei 225 (-2.9%), ASX 200 (-2.2%) and Hang Seng (-2.6%) were exacerbated by weakness in financials. Shanghai Comp (-3.4%) yet again traded in erratic fashion, as the index entered bear market territory having fallen 20% from its June 12th highs, with the PBoC's decision over the weekend to cut interest rates by 25bps months failing to provide a sustained rally in the index. Finally, JGB prices jumped by 39 ticks with USTs rising by over a point as safe havens benefited from a widespread risk-off tone.
Weekend developments in Greece have dominated headlines and market moves this morning, with Greek PM Tsipras announcing a referendum on 5th July and imposing a bank holiday for the week. For a full roundup of developments in Greece please click here. This saw European equities (Euro Stoxx: -3.1 %) open the session in negative territory, with FTSE (-1.4%) and SMI (-1.0%) outperforming as the UK and Switzerland are not members of the Eurozone. On a sector specific basis, financials are lagging with some Italian banks failing to post as opening price.
While fixed income markets have seen Bunds trade around 175 ticks higher, fears of contagion have not been realised despite analysts at Goldman Sachs forecasting that Italian and Spanish spreads would widen by 150-175 bps against the German benchmark, but have instead widened by around 30bps and have come off their worst levels throughout the morning.
EUR initially weakened substantially as a result of the collapse in Greek talks, with many concerned not only with the possibility of a Grexit, but also the risk of contagion to other European periphery nations. This saw EUR/JPY fall as much as 460 pips as the impact on the cross was intensified due to safe haven flows into JPY. However the European open saw a less severe impact on European periphery bonds, with the Spanish and Italian 10Ys both widening against the German benchmark by around 30 bps, substantially less than the 150-175 forecast by Goldman Sachs, leading to EUR paring back much of its losses, bolstered by the limited contagion. As a result EUR/JPY traded lower by 180 pips and EUR/USD lower by around 60 pips heading into the US open.
Away from Greece, EUR/CHF saw an uptick this morning after SNB's Jordan stated that the central bank has active in the FX market overnight emphasising the potential for the SNB to step in to weaken the CHF. Also of note, supporting EUR this morning is the regular month-end related buying of EUR/GBP by Buba.
The USD opened higher today but has fallen throughout the European session to trade lower by around 0.8% amid JPY strength stemming from safe haven flows. Elsewhere, Fed's Dudley (Voter, Dove) has stated that a September rate-lift off is 'very much in play' amid stronger US data.
Looking ahead, today US Pending Home Sales as well as German CPI, with regional CPIs so far printing lower than expected. Participants will also be looking out for comments from EU'S Juncker at 1145BST/0545BST although a European Commission spokeswoman has already stated that no new proposals will be presented.
Gold (+ USD 3.10) strengthened overnight as a consequence of safe haven flows, however the yellow metal has come off its best levels throughout the European morning to trade back below USD 1180. The energy complex has seen weakness so far this morning with an Iran nuclear deal appearing close ahead of the deadline tomorrow, combined with concerns regarding China after the aforementioned weakness. Also of note CFTC oil speculators lowered their WTI net long positions by 5,314 contracts to 238,274 in the week to 23rd June.
In summary: European shares fall, though are off intraday lows, with the autos and banks sectors underperforming and basic resources, health care outperforming. Stoxx 600 falls as much as 3.2%, most since Oct. 15 Greece imposes capital controls, Athens stock exchange trading suspended until bank holiday over. Germany’s bonds surge most since 2011, Greek yields rise. China’s stocks fall 22% from this year’s June peak, entering bear market. The Spanish and Italian markets are the worst-performing larger bourses, the U.K. the best. The euro is weaker against the dollar. Commodities decline, with nickel, Brent crude underperforming and copper outperforming. U.S. Dallas Fed index, pending home sales due later.
Market Wrap:
- S&P 500 futures down 1% to 2075
- Stoxx 600 down 2.1% to 388.5
- US 10Yr yield down 13bps to 2.34%
- German 10Yr yield down 13bps to 0.79%
- MSCI Asia Pacific down 2% to 144.9
- Gold spot up 0.2% to $1177.4/oz
- All 19 Stoxx 600 sectors drop; basic resources, oil & gas outperform, autos, banks underperform
- Asian stocks fall with the Kospi outperforming and the Shanghai Composite underperforming; MSCI Asia Pacific down 2% to 144.9
- Nikkei 225 down 2.9%, Hang Seng down 2.6%, Kospi down 1.4%, Shanghai Composite down 3.3%, ASX down 2.2%, Sensex 0.6%
- Euro down 0.6% to $1.11
- Dollar Index up 0.24% to 95.7
- Italian 10Yr yield up 14bps to 2.29%
- Spanish 10Yr yield up 14bps to 2.25%
- French 10Yr yield down 9bps to 1.21%
- Greek 10Yr yield up 377bps to 14.62%
- S&P GSCI Index down 1.3% to 429.9
- Brent Futures down 2.3% to $61.8/bbl, WTI Futures down 2.1% to $58.4/bbl
- LME 3m Copper up 0.3% to $5773/MT
- LME 3m Nickel down 4.7% to $11870/MT
- Wheat futures down 0.1% to 567.3 USd/bu
Bulletin headline summary from Bloomberg and RanSquawk
- Markets react to latest Greek developments with PM Tsipras calling for a referendum & week long bank holiday seeing weakness in EUR & equities, while PBoC cut rates for the 4th time in 7 months
- Greek referendum announcement sees European equities trade firmly in the red with EUR also weaker, while periphery bonds have not suffered as much as expected due to limited contagion
- PBoC cut interest rates for a 4th time in 7 months by 25bps with the lending rate lowered to 4.85% and the deposit rate lowered to 2.00%, while it also cut the RRR rate by 50bps for banks which lend to agricultural and small and medium sized businesses and by 300bps
- Today US Pending Home Sales and German CPI, with comments also expected from EU'S Juncker at 1145BST/0545BST.
- Treasuries surge, led by 7Y and 10Y, as Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro.
- History suggests capital controls hardly ever work; while dozens of countries have imposed such measures since World War I, the IMF found that only those few with sound economies and strong institutions succeeded in slowing capital flight
- The Greek government plans to ask voters on July 5 whether they accept the latest proposal by creditors on implementing budget cuts in return for more financial aid, and advocates a “no” vote
- Markit iTraxx Europe CDS index surged by as much as 20%, the most since Lehman in Sept. 2008, to 80bps
- Morgan Stanley sees Greek EUR exit now as base case, with odds at 60%; RBS sees 40% odds of Greece leaving EUR
- Chinese stocks tumbled, sending the benchmark index into a bear market, as signs of an exodus by leveraged investors overshadowed the central bank’s effort to revive confidence with an interest-rate cut
- Chinese regulators are considering suspending IPOs to stabilize the country’s tumbling stock markets, people familiar with the matter said
- With two days left in Puerto Rico’s fiscal year, the cash- strapped commonwealth is struggling to pass a budget that would allow it to make payments on a $72b debt load that the island’s governor said is unsustainable
- Sovereign 10Y bond yields lower with the exception of peripheral EU; Greece 10Y +379bps, Italy, Spain and Portugal yields also higher. Asian, European stocks plunge, U.S. equity-index futures decline. Crude oil lower, copper and gold slightly higher
US Event Calendar
- 10:00am: Pending Home Sales m/m, May, est. 1.5% (prior 3.4%)
- Pending Home Sales y/y, May (prior 13.4%)
- 10:30am: Dallas Fed Mfg Activity, June, est. -16.9 (prior -20.8)
DB's Jim Reid concludes the overnight recap
Well, well. What a week we have ahead. If the drama around the upcoming Greek referendum and the weekend Chinese rate cut are not enough then we have the confusion of an extra second being added to world time at midnight GMT tomorrow - the first time this has been done during international trading hours. The variability of the earth's rotation will play second fiddle to the ongoing Greece saga though.
Before we dig into all the details, a snapshot of markets this morning shows the expected sell off. However there is no panic yet and bourses are generally trading better than where they opened the Asian session. The Nikkei (-2.18%), Hang Seng (-2.68%), Kospi (-1.35%) and ASX (-2.18%) have all fallen though, while S&P 500 futures are around -1.49% as we go to print. The Shanghai Comp is -3.75% although markets in China have been particularly volatile once again with the PBOC rate cut muddying the waters. In bond markets, 10y Treasury yields are 17.0bps tighter at 2.303% and at the lows for the session. 10y yields in Australia (-13.9bps), Japan (-2.4bps), South Korea (-3.4bps) and New Zealand (-7.1bps) have also taken a leg lower, while credit indices in Asia, Australia and Japan are +7bps, +8bps and +6bps respectively, although all traded as much as +10bps wider on the open. In FX markets the Euro is 1.48% lower versus the Dollar at $1.1002 (touching $1.0955 briefly), while the single currency is also down against the Yen (-2.45%), Aussie Dollar (-1.42%), Swiss Franc (-1.39%) and Sterling (-1.21%).
So let's quickly recap the news and then delve into some of the issues. Tsipras has called for a referendum on the 'final' EU bailout offer (which was never actually formally finalised) to be held next Sunday (5th July). Ironically any agreement that might have been available expires tomorrow night so it will become largely hypothetical by then. It is also a pretty vague question being asked and one that leaves it open to interpretation what citizens are in effect voting for. A yes vote will actually probably only start a new round of negotiations with what would be seen as a discredited government - assuming they survive.
Tsipras is campaigning for a no vote. In response to the weekend news the ECB has capped the ELA at Friday's levels. After the current program expires tomorrow night all eyes will be on whether the ECB actually suspends the ELA, effectively deeming the Greek banks insolvent. There will be little going back if they do so we would expect them to just keep the cap for now until the vote is made.
Meanwhile, shortly after 3am local time in Greece, the Greek government as expected issued a decree closing banks and imposing capital controls on the back of the ELA decision. Banks are set to be closed until July 6th with cash withdrawals at ATM’s limited to €60 per day. At the same time, any bank transfers or payments abroad are set to be banned. The move confirms earlier comments from Piraeus Bank CEO Thomopoulos following a crisis meeting of Greek government and finance officials earlier on Sunday and also comes following various reports of long queues at ATM’s and petrol stations as well as suggestions that 500 of the country’s more than 7000 ATM’s had run out of cash by Saturday morning.
There are going to be lots of technical questions as a result of this move to referendum and what seems certain to be a non-payment to the IMF tomorrow. Will it immediately be termed a default? Will it lead to a cross-default on EFSF loans, GGB and Greek CDS? It might not immediately (the EU for starters might wait until after the referendum) but the debate will start. However I think it’s important not to get too bogged down in the technical details at this stage as surely the likely result of the referendum is going to be the most important event this week and ahead of this the perception as to the result.
On this, it’s likely that we start to see a number of polls pop up this week which will get the market debating. There was plenty of attention on two polls in particular in the Greek press on Sunday morning which showed support for making a deal with Greece’s Creditors at 57% in the Alco Poll for Proto Thema and 47% (with No's at 33%) in the Kapa Poll for To Vima, although the latter with a carefully worded question based on making a ‘new painful agreement’. It’s worth noting however that these polls were run prior to the announcement of the referendum and so are somewhat outdated. It’ll also be important to caution against the questioning in any upcoming polls with the government likely to campaign emphasizing the negative aspects of an ‘austerity package’, while the opposition will likely stress the equivalence of a euro exit and so as a result it’s likely that we see different segments perceiving the question differently. Whoever is more effective as getting their interpretation across may help swing the vote.
In the meantime, the IMF and EU will surely tread a careful path and whilst they will want to make it painful this week for Greece they won't want to cut them off completely. Indeed Merkel has been strangely quiet so far which may reflect a desire not to antagonise a delicate situation. Overall the EU are likely to try to show the voters that things have taken a turn for the worse (without making any irreversible decisions) and give them a glimpse of the chaos that might arise at the end of the week if they don't vote yes?
DB’s resident expert George Saravelos notes however that even the consequences of a yes vote are far from certain. Finance ministers on Saturday highlighted the important credibility issues that would arise from Greek government implementation of an agreement it campaigned against. A change in government therefore and a cabinet of national unity - possibly under the pressure of a continuously strained banking system – may well be the most the likely outcome, however any agreement would have to happen fast given the accelerating impact of the crisis on the economy.
In terms of markets could this be a big test of the poor liquidity that there is at the moment. I'm sure most clients in Europe would like to lighten up on risk this morning and buy the safe havens but there are some markets (like European credit) where this will likely to be very difficult to do efficiently. I wouldn't expect panic at the moment but this could be a test of the new regime of awful secondary market liquidity.
One important factor to consider will be the ECB’s reaction function this morning. We’ve already got verbal evidence of support following the ELA decision with the associated statement including such rhetoric as ‘determined to use all instruments available within its mandate’ and the bank is ‘closely monitoring’ market conditions. Given the tools available, specifically QE, it’ll be interesting to see if we get an aggressive response from the ECB in the market this morning. It would certainly be a statement of intent from Draghi should he feel the need to accelerate asset purchases.
A personal view is that this story won't get too out of hand unless we start to see any evidence that the Greek's are likely to vote No on Sunday. At this point the sell-off could get messy. If this doesn't happen the negativity may well be contained even if the story will be far from over.
Of course, the other news story over the weekend came out of China where we got the news that the People’s Bank of China has cut the one-year benchmark lending rate and deposit rate by 25bps to 4.85% and 2% respectively. At the same time, there was also an RRR cut of 50bps for some banks who’s lending to rural borrowers and small and medium-sized enterprises is over a certain threshold, while there was a 300bps RRR cut for financing companies. DB’s Zhiwei Zhang, noted that the cuts were more than he expected and believes that the recent equity market sell-off triggered the action. Zhiwei notes that his baseline forecasts remain the same, that being another interest rate cut and a broad-based RRR cut in Q3 of this year. He does however note his concerns around the downside risks to the economy, particularly in 2016. Zhiwei believes that the government is following a strategy of leveraging the equity market to boost economic growth, which although helped in Q1 (through a boost from the financial service sector), is showing signs of volatility now which may pose risks to growth in the future. He notes that if the equity market drops significantly, the contribution from the financial service sector to GDP growth may return to its historical average or even lower.
Backtracking to markets on Friday, there wasn’t a whole to report as markets largely traded to the tune of what are now mostly redundant headlines concerning Greece. In Europe the Stoxx 600 (+0.12%), DAX (+0.17%) and CAC (+0.35%) all finished modestly firmer on the day, while Greek equities closed +2.03% higher in what is expected to now be the last trading day for the ATHEX before the referendum on Sunday. Equity markets were slightly more mixed in the US as the S&P 500 finished (-0.03%) more or less unchanged while the Dow (+0.31%) was a tad higher. In bond markets meanwhile, yields had drifted steadily wider with 10y Treasuries and Bunds +6.4bps and +6.1bps respectively. It was a similar story in peripherals meanwhile as Italy, Spain and Portugal ended +6.0bps, +4.5bps and +3.4bps respectively. There was little to report on the data front other than an upwardly revised June University of Michigan consumer sentiment reading, with the final print revised up 1.5pts to 96.1bps.
Headlines dominating Greece are set to be front and centre this week, however elsewhere we’ve also got a busy week for the data docket and we start this morning in the UK with consumer credit and money supply data before we get a range of confidence indicators out of the Euro area shortly after. German CPI is due this afternoon before we pass over to the US where pending home sales for May will be the highlight, shortly followed by the Dallas Fed manufacturing activity index. Tuesday starts in Japan where we’re expecting housing starts and cash earnings data. It’s a busy day in the European timezone with French PPI and consumer spending, German unemployment, the final Q1 UK GDP print and Euro area CPI and unemployment readings all due. In the US on Tuesday we’ve got more house price data with the S&P/Case Shiller house price index, while the ISM Milwaukee, Chicago PMI and June consumer confidence reading are all due. It’s a busy start in Asia on Wednesday where we see the Q2 Tankan survey out of Japan, shortly followed by the manufacturing and non-manufacturing PMI’s for China. The final June manufacturing PMI’s are also scheduled to be released in the Euro area, Germany and France on Wednesday while we’ll also get the latest revision for the UK. It’s a busy session in the US on Wednesday when we get ADP employment change data for June, Challenger job cuts, manufacturing PMI, ISM manufacturing and prices paid, construction spending and finally vehicle sales. Euro area PPI kicks off Thursday morning shortly followed by the latest ECB minutes from the June 3rd meeting. In the afternoon however we get the week’s main data event with US payrolls for June, as well as jobless claims, average hourly earnings, ISM NY and factory orders. We end the week on Friday in the Asia timezone with services and composite PMI readings for China and Japan. We’ll also get these for the Euro area shortly after as well as for Germany and France. The latest revision for the UK will also be due. Euro area retail sales rounds off the releases with the US closed for Independence Day. Fedspeak wise Bullard is scheduled to speak.
Stand by for a hectic week.
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Central Banksters are succeeding - gold up a measly $4 in one of the largest financial crisis to hit in years. Silver up all of 7 cents an ounce now.
All Western markets are fake now - owned and manipulated by Central Banksters.
Shields : UP
Welcome to Thunderdome.
Tyler, you shouldn't mock the SNB for owning a bn $ worth of AAPL stock. It may well be the only valuable asset on their books now, since their gold was likely already leased out a gazillion times and will never ever return.
tick tock boom
http://www.philiacband.com/propaganda.html
tick tick boom would be Tsipras tabling a draft agreement for Greece to leave NATO.
THAT would be fun to watch.
Forget the bank reporting large withdrawals to the Dept of Treasury. It's time to get yours out of the bank. Its better to be on that list than to be in a bank line [or worse]. Going to be a bumpy summer....
<=== That's FINALLY all she wrote, look out below
<=== Rampalooza and we close green, more of the same
It appears that liquidity is the problem.... I'll posit a solution with the least bloodshed possible:
World- it is now time to remove the billionaires. They are sitting on 1/2 of the world's wealth. In order to free up some capital with the fewest deaths, it seems to be a realistic solution.
They have been sending the children of the poor to die in foreign lands in the name of freedom, while they safely accumulate the spoils of war.
Since this process has permitted their success, it is now their duty to pay in their blood, not someone else's.
Release the Kraken
SNB, hummm. Knew since mid-January, no?
Still think they didn't have an agenda?
The issue is only partly Greece. I think the central planners thought they had that contained and if Greece came alone I think they would have. The wrench in the plan is it is coming with a stock bubble in china that appears to be popping and the coattail news from the Purto Rican Governor that their debts are unpayable. These three events taken together may prove to be closer to the black swan that could really cause contagion. They will say they could have never seen them coming all together when the writing all the wall was clear for all three, just not hitting simultaneously. I wonder what brilliant retiree shifted their portfolio to Purto Rican bonds for the yield?
At some point market participants will realize a huge portion of the bond market is not payable, and since it won’t be paid it is not a liability of the debtor, thus not an asset. Hear that Kurgman, your zero sum game theory is a farce.
"central planners thought they had that contained ...Greece"
til Spain, Portugal, Ireland, and Italy (I'm thinkng that order) suddenly come into play.
The swiss and the chocolate they rode in on, are fooked, as well are you.
Long BlackMarkets.
There is no "Greek Government" anymore...
thinking of China...now, in my opinion, China remains untapped, because Chinese children are taught to do, and not really think creatively. The 'doing' has brought them to where they are. But they are very prone to groupthink. And when 20,000,000 people take the online trading academy and learn how to use stop losses, expect some real rides. But...I don't think they've hit the bandwagon mass exit yet. Chinese people (and I love China, don't get wrong) move like large schools of fish. When they move, you'll feel it..and I don't think we're there yet.
Captain Debt Crash, as always, thank you for your insightful analysis and shared commentary. I appreciate your efforts, and have learned much from your site.
How could the Fed have seen Puerto Rico coming???
From the NY FED:
"At the Federal Reserve Bank of New York (popularly known as the New York Fed), we are proud that Puerto Rico is part of the Second District, which we represent in the Federal Reserve System. We are deeply committed to the people of the Island and to its growth and prosperity."
They are lying or incompetent. No wonder they won’t turn over documents to Congress.
MOAR POWER MISTER SCOTT!
MOARRRRR!!
You forgot Biotch!
" If you don't hold it ...."
Looking forward to 9:30 am EST.
Yeah, I can't wait to BTFD.
Looking forward to sep. EBT
The central banksters fooked us.
Or to put it another way. Stock markets around the world are all within 10% of their all-time highs. Wake me up when the "markets" are even back to 2010 levels. This is induced fear to get Greece to kneel down and accept its proper face fucking. When the government falls, the new one will get in line and magically all "markets" will rise again. Rinse & repeat.
could change to "greece" in song below:
ANITA
Puerto Rico,
My heart’s devotion--
Let it sink back in the ocean.
Always the hurricanes blowing,
Always the population growing,
And the money owing.
And the sunlight streaming,
And the natives steaming.
I like the island Manhattan,
Smoke on your pipe and put that in.
GIRLS (chorus)
I like to be in America,
Okay by me in America,
Everything free in America -
BERNARDO
For a small fee in America.
ANITA
Buying on credit is so nice.
BERNARDO
One look at us and they charge twice.
ROSALIA
I’ll have my own washing machine.
JUANO
What will you have, though, to keep clean?
ANITA
Skyscrapers bloom in America.
ANOTHER GIRL
Cadillacs zoom in America.
ANOTHER GIRL
Industry boom in America.
BOYS
Twelve in a room in America.
ANITA
Lots of new housing with more space.
BERNARDO
Lots of doors slamming in our face.
ANITA
I’ll get a terrace apartment.
BERNARDO
Better get rid of your accent.
ANITA AND THREE GIRLS
Life can be bright in America.
BERNARDO
If you can fight in America.
ALL GIRLS
Life is all right in America.
ALL BOYS
If you’re all white in America.
(an interlude of WHISTLING and DANCING)
ANITA AND CONSUELO
Here you are free and you have pride.
BERNARDO
Long as you stay on your own side.
ANITA
Free to be anything you choose.
ALL BOYS
Free to wait tables and shine shoes.
BERNARDO
Everywhere grime in America,
Organized crime in America,
Terrible time in America.
ANITA
You forget I’m in America.
(An interlude of MORE DANCING)
BERNARDO
I think I go back to San Juan
ANITA
I know a boat you can get on.
BERNARDO
Everyone there will give big cheer.
ANITA
Everyone there will have moved here.
Music by Leonard Bernstein, lyrics by Stephen Sondheim.
© 1956, 1957 Amberson Holdings LLC and Stephen Sondheim. Copyright renewed.
Leonard Bernstein Music Publishing Company LLC, Publisher.
Buy the America vocal selections online!
Click here to purchase the West Side Story Vocal ScoreLeonard Bernstein Music Publishing Company / Boosey & Hawkes
Maybe the 20 year old kids running western market are too young to know it’s a safe haven asset? Until the gooks and Indians start buying physical by the Chinamax its probably gonna be fairly static. Its lost 11% in 12 months, next to oil (down 35%) and coppers (down 20%).
What I'm finding fascinating today is that the MIB is still up 20% YTD? FTSE back to 1.38%, DAX 15%, DAX14%, and the MIB is still at 20??
Well then ~let's make some money https://www.youtube.com/channel/UC24i0-R52E-Y4PHhsjLUbYg
Listen children, don't you hear it? The bugle call, its Captain Yellen and his cavalry coming over the hill!
Printers on stun.
Get the helicopters in the air.
Romeo foxtrot.....shall we dance?
https://www.youtube.com/watch?v=ZkH5Ak4wAnY
That's not the cavalry, Sir. It's just the noise aired by uncle ben who keeps repeating endlessly: it's all contained, guys, it's all contained.
last week got news from all my friends working in IT departments for financial institutions all over the world that they got directives to prepare to be able to face a shitstorm of epical proportions. it was expected and if you think it wasn't u r just a plain ignorant retarted ass.
No Duh!
Did you, by chance, happen to have posted that information LAST WEEK?
And to their surprise is the voting force of Puerto Rico.
Crash! Crash! Crash! Its the only way to reset. That may sound a little negotive but fuck it, our wonderful leaders threw us all under a bus several years ago and they are only looking after there own interests now.
The question is, if there's a reset, who decides how it is set up? TPTB will try to use the situation to their advantage. NWO
https://www.youtube.com/watch?v=A_sY2rjxq6M
Reality in Greece:
—Banks will remain closed from Monday until at least next Monday, July 6, the day after the referendum.
—Cash withdrawals from ATMs will have a daily limit of 60 euros ($67) per card.
—Credit and debit card transactions within the country will not be limited. In practice, however, many retailers were already not accepting card transactions as of Monday morning, and were demanding cash payments only.
—Internet and phone banking within the country will have no restrictions, but no money can be transferred out of the country.
—For emergency needs, such as importing medicines or sending remittances abroad, the Greek Treasury will create a Banking Transactions Approval Committee to examine requests on a case-by-case basis.
—Foreign bank cards, whether debit or credit, will not be affected and tourists will be able to withdraw the full amounts their own banks allow them to.
If I were operating a company in Greece why would I need a greek bank account? You could just as easily use a German or Danish bank account under SEPA.
Well, at least the Brits are taking things seriously (from The Guardian):
"How the Greek financial crisis could affect your holiday plans"#GreekBanksMatter
Oh Bloody 'ell. Tandy and the boys won't be able to tod off to Glastonbury for a fresh pair of denim knickers. Bloody Greeks are at it again, I suppose.
Yep! As expected, all futures melting up now. Yesterday evening Dow futures were down over 300. Now they are down a mere 185. PPT doing their thing, again.
Central banks = central to the problem.
Just keep rolling along, keeping this overpriced garbage floating while those in charge write one law after another in an attempt to gain control of absolutely everything. It might be a good idea to pray for the collapse, actually.
The idea behind such legislation was that the money would never, ever not be there to fund the genius government program. Troops in Bosnia? Sure. Troops in Afghanistan, Iraq? Sure. Medicare Part D? Sure. Intervention in Libya, Syria, Ukraine? Why not? Obamacare? Absolutely! Welfare state? What can go wrong!
The merits of politicians' little experiments never ended up getting any scrutiny and any and all irresponsibility could be funded. Western prosperity and deficits combined to be what turned out to be rocket fuel for the engine of our destruction, namely, some seriously sick hubris about meddling with economics and human nature. The essence of modern life has been socialism and to appreciate its essence one needs only look at Sweden where its politicians on the hour come up with the most psychotic policies you can imagine. Actually, you can't imagine the stupidity and malevolence of the"leadership." The rest of Europe is not far behind and the people in lock step with them for the most part.
Post-1914 USA or the EU or the USSR or the UN it was all the same: we can do this. Our critics are evil reactionaries. Their malevolence drives them, not any rational perception of our sinful pride in our intelligence. The complexity of of the modern world, let alone life itself, is child's play to the cognoscenti.
Collapse would, with luck, educate these fools and modern Westerners in general. Kunstler is always on about peak oil. How about peak hubris?
Ace006
I thought the $16 Trillion USD handout to the banksters fixed all that stuff you listed.
I blame Sarah Palin.
Seriously guys,,, get into bullion as soon as you can..while its still affordable ..
www.teamramgold.com
sure thing, thanks for the tip...
I tried selling bullion that I received as a gift in the early nineties. I wanted to sell a gram of Credit Suisse. No bank would buy it. I actually had to take it to a pon shop and sold it for 10% less than market price. People will be really upset when they realize that nobody is obligated to buy it from them. Additionally, there will probably be vast quantities of gold plated bullion sold to some poor souls!
If you really sold bullion for 10% below spot then you are an idiot. Ever heard of apmex.com? They pay over spot for all bullion - yes unfortunately I've sold some gold lately. Also, reputable pawn shops/jewelers DO pay at least spot - I've done that too. Never sell to any store which advertises as "We Buy Gold" - they are theives, and are a dime a dozen. But by far the easiest way to sell bullion for OVER spot is apmex.com.
I'm not an idiot. The Internet didn't even exist then! I would never buy gold off the Internet though! If I were going to sell gold plated bullion, that is exactly where I would sell it!
I apologize for the "idiot" remark. I meant it in a light-hearted way, but it didn't translate.
Good man.
The next QE's will be Bigger then the last. Unfortunately, 90% of it will simply flow to Bankers' pockets once again while the average Middle Class private sector Joe gets slammed.
You can bet on that.
there is a possibility that this "crisis" will be used to scramble the helicopters for a fiat drop on real people so they can buy real things including their own debt.
The new and improved 'flight to safety' https://finviz.com/futures_charts.ashx?t=NG&p=m5
"Quick Ashton Carter, plunge the world into WWIII Nuclear Holocaust! Your Zionist Pig Rothschild demands it!
this a btfd if ya got some balls or lips. seriously, does anyone really think the int. ppt will fail?
how can they? they control everything except faith, but they are working on that 24/7 with the media and education centers world wide. so imfo, BTFD!
I have to agree. Where is the limit of intervention? If none of this is real, then what's the biggie? If I am beginning to suspect that financial markets are irrelevant, then what is everyone else doing? At some point, if continued interventions allow for the continued existence of "markets", in which the elite make money, while everyone else starves, eventually, the facade of the "market" will fade away, leaving the reality- feudalism- that has lurked beneath the cloak of CB intervention for some time.
THIS IS GREECE: these are the people who brought down countless empires that did not respect them. Time for one more.
Optimist.
China's bear market shockwave will be hitting US shores soon.
https://www.youtube.com/watch?v=BUREX8aFbMs
...and still no shorts will actually pay out.
Looks like touists entering Greece with multiple plasic cards linked to foreign bank accounts will be key to man-in-the-street liquidity this week.
This one quote sums it up
The difference between China and US is China doesn't have primary dealers and algos contolling their markets
US PPT is a well-oiled machine, while China still relying on duped speculators to hold up market
-------------
According to Paul Chan, chief investment officer for Asia ex-Japan at Invesco in Hong Kong, "China’s fourth interest-rate cut since November failed to stabilize the stock market as it was seen as a stopgap measure to stem a slide in share prices rather than an effort to revive the economy." He added that "It seems like policy makers are more worried about the stock market than about the real economy. The economy is slowing down and they are so much behind the curve in terms of easing. But as the stock market corrected, they jumped in, putting in all the policies. It gives people a sense of panic."
I still have a hard time reading these bitcoin boards but gold was only up around .58% US. Bit is up last I saw and bitcoin is up 7% CNY (how stupid is that) with some hefty volume. Bitcoin if anything else serves as an interesting new source of info. Euro appears to be down 10% in exchange. The Chinese are eating it up.
http://bitcoincharts.com/markets/
LIESman: "This just doesn't make any sense, the fundamentals are strong".
no crash. gold and silver are not ramping. who cares about bitcoin.
wtf is really up? all these banks should be properly hedged. this isn't a lehman surprise. greece has been waiting to happen for several years now.
Lol the markets are a complete fabrication, there is no one bidding but banks with counterfeit FIAT lol . . .
No-One to sell to but the Wizard of OZ.
http://s22.postimg.org/frh4d3lwx/Chart14.png
A serious question now becomes where to put savings? Are any of the big banks solvent? Are any banks at all solvent? Most all have risky loans secured by bubble-priced assets or even worthless “assets”, i.e. car, boat and motor home loans. Many banks now have portfolios which include equities as they try to increase profits. Japan, Switzerland…etc…one worldwide Ponzi scheme. The FDIC doesn’t even have 10% of what would be needed to bail out WFC, or BAC, or C, or any of them. They would run to congress for a bailout of their bailout. Congress has nothing but trillions of $ more debt. Is Spain next? All are broke and the entitlement societies are crushing them. The U.S. is no different, EBT cards, S.S., Medicare, Medicaid, Obamacare, veteran benefits, and military retirements, etc, etc.
This may get beyond the ability of the oligarchs and bankers to control using faith and hope. When 95 million fools all panic at once, nothing will stop the freefall. Bears long ago had their faces ripped off, so no support there.
The last time the Fed bailed out the banks by taking all the bad loans and hiding them on their books, now $5 TRILLION later it is all blowing up again, as many predicted. I doubt most will hide money under the mattress as rioters and looters will roam all the big cities. Physical gold too hard to deal with and same issues with criminals everywhere.
If this accelerates the Silicon Valley property bubble collapse, it is lights out, permanently. Is anything going to safe at that point?
Massive, cheap liquidity being provided from CB's, liquidity all around us, and not a drop to drink can be found...
All of the liquid from central banks is salty. Only bankers can drink it.
Someone from the Greek Chamber of Commerce was on Bloomberg saying the same thing. But the government so badly out of cash after, what, three or four days that it can't print 10 million black and white A5 fliers and fuel vehicles to drive to the polling stations? It's not impossible ... but it doesn't seem probable, and given who's pushing the idea I'm inclined to think it's BS. Now, maybe people will have trouble getting to the polling stations because the buses and private cars are short of fuel, that would seem more plausible.