Greece... Mattered: Surveying The Carnage

Tyler Durden's picture

Greece... mattered!!


The market be like...

*  *  *

It began as FX markets opened ugly in early Asian trading, but once stock markets started to open, the focus shifted there...

Japan spanked... Nikkei 225 down 730 points from Friday's close...


China collapsed...


When Europe opened it was ugly in stocks...


And bonds... European spreads exploded - biggest risk increase in 7 years...


But The Swiss National Bank did its best to sell Francs and buy EURs to make it all appear "contained"... Which squeezed EURUSD all the way into the green... a 325 pip ramp!!!


And the Sudden "hand of God" move in EUR around 1340ET


While Greek stock markets were closed, their bonds were not.. .and carnaged 420bps higher to 15.10%...


And stock ADRs and ETFs traded in the US:

  • EUFN - European Financials, down 4% - broke below its 200DMA
  • NBG - Nation Bank of Greece, down 26% on record volume
  • GREK - Greek Stocks, down 18% on record volume


*  *  *

In The US, the initial carnage dip was bought with gusto but that ramp failed and by the close we were testing new lows...


Trannies managed to get back to unchanged before plunging...


Cash markets were a one-way street from just after the open...


Financials hammered!!


Post-FOMC: Bonds best, Gold glitters, but Stocks stink...


Leaving The Dow red and S&P unch for the year...


All major indices broke significant technical levels today...


VIX surged to 19.00... (from 11 handle last Tuesday)


As the 50.98 million share short of the 63.9 million outstanding in VXX suffered greatly... above 20 to 7-week highs on massive volume


The last time VXX rose more than 14% in a day was 913 trading days ago (more than 3 years ago on November 9, 2011) and Bernanke bailed out Europe


VIX term structure inverted once again...


Treasury yields plunged as a near-record short position felt the squeeze... this was the best day for 10Y yields since January


The dollar tumbled as the manipulated EUR surge "proved" there was nothing to fear... USDJPY did not play along wioth the manipulation.


Gold held onto gains but copper, silver and worse Crude (down 2.4%) all slide despite the USD weakness...


*  *  *

Oh and then there is Puerto Rico collapsing...


And Bitcoin is surging...

*  *  *

Amid all this with stocks down just 3% from their highs... The Fear & Greed Index collapsed to just 12!!!!



But apart from that...

Charts: Bloomberg

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InjectTheVenom's picture

can't someone come up with a cute new trendy hashtag or something to save us ? ! ?

NoDebt's picture

John Hilsenrath summarizes Fed meetings in mere minutes after their release.  Tyler summarizes the entire's days' market events 2 minutes after the close with full-color graphs, witty quips and even some youtube videos.

I'm not sayin' nothin'.  I'm just sayin'.

It is nice to see the return on the deer, though.  They've been away too long.

Winston Churchill's picture

Leave Tyler Hilsenrath alone you bully.

nuubee's picture

Cmon guys, we have to at least be self-consistent. We can't laugh every day at what passes for a market these days, and then think that a major selloff demonstrates that something "mattered"....


We have no markets, so the selloff is meaningless until certain, shall-we-say, less-ideal assets start to move.

James_Cole's picture

This one matters, weird shit has been going on for past few months. Tyler is a bit boy who cried wolf but this looks real, see how they can paper over it..

jefferson32's picture

I recommend this great 2012 piece by Peter Shiff's Europac. Disconcertingly prescient on the current Syriza/ECB-UE standoff.

What if Greece Just Printed the Euros It Needs?


ZerOhead's picture

The Schiff family is always very prescient. They married into the Rothschilds after all.

Of course then $20 million in gold that Jacob Schiff allegedl provided the Bolsheviks when he was the head of Kuhn and Loeb never gave him any return. I wonder why he hated the Czar so much? I'm sure it had nothing to do with the Czar not wanting a Rothschild bank on his soil...


InjectTheVenom's picture

>>>>  Jim Rickards

>>>>  Peter Schiff

ZerOhead's picture

Come to think of it Peter's idea to just print the banknotes makes a great deal of sense. After all... the Greek debt was just created out of thin bankster air to begin with anyway.

And since every Euro note has a code letter indicating which nation printed it I strongly suggest the Greeks change their alotted "Y" to the German "X" when printing.

As they say... the "X" (Deutsche)marks the spot.

Automatic Choke's picture

saved my ass on that pile of VIX 17 july calls i was ready to write off......   i'll wait for tomorrow's "happy ramp" to roll them off to fall i guess.

Mr. Magoo's picture

Since everyone is predicting the collapse in September I think the elite are deciding to accelerate it to prove everyone wrong

Ms No's picture

Hah, Schiff's son Mortimer was a banker and a leader for the Boy Scouts of America..... that couldn't have been good.    

KnuckleDragger-X's picture

And this is only Monday. We're gonna go full Rod Serling this week......

dimwitted economist's picture

i openly admit i HATE the Fucking stock market... (Always have) but, these last few years... the shit is Beyond Weird.

Paveway IV's picture

Captain: What happen?

Mechanic: Somebody set up us the bomb.

Operator: We get signal.

Captain: What!

Operator: Main screen turn on.

Captain: It's You!!

IMF: How are you, gentlemen!! All your base are belong to us. You are on the way to destruction.

Captain: What you say!!

IMF: You have no chance to survive make your time. Ha Ha Ha Ha ....

Operator: Captain!!

Captain: Take off every "euro"!! You know what you doing. Move "EU". For great justice.

El Vaquero's picture

The following video explains it:


It's from a bad Japanese to English translation.

Theosebes Goodfellow's picture

And this: (which was the catchy little musical bit to it, (so to speak):

spdrdr's picture

Google "all your base are belong to us", and your query will be answered.

It is a very old Internet meme, which youngsters today simply don't know about.


MayIMommaDogFace2theBananaPatch's picture


El Crusty's picture


that will be the message from every central bank for the next few months/years/decades....

Not Too Important's picture

They can print to infinity, but it won't buy faith and trust.

It's over.

ATM's picture

It will however buy time.

Bangin7GramRocks's picture

Good point. Those charts look scary, but are not that big of a deal. One rumor of a new deal will rocket all these "markets" back to new all-time highs. I'll wait just a bit on the hyperbole.

Pool Shark's picture



Tyler had plenty of time to survey this slow-motion trainwreck.

Markets spent the entire afternoon augering in.

[S&P 500 now down for the year...]


[PS: Since when is a 3.7% increase in BitCoin over a 3-day period considered a 'surge?']



vexrizor's picture

It's not a "surge" at all. It's just exaggerated language commonly used by the people who write these commentaries.

IRC162's picture

Where's Satoshi?  He'll have you worshipping Bitcoin, hatin' the USA,  and wishing you were ex-patting in CN too.....I wonder how well he is blending in to his surroundings....hmmmmmm

Satoshi - do you copy - over

ZerOhead's picture

Is your goal is to protect your family or try to make money?

If you hold a physical PM or an asset that will have value when TSHTF you will still have the metal or asset 100% until the cops come and take it away from you.

If you hold bitcoin when TSHTF then you may have something after TSHTF to buy a physical PM or an asset that has value.

Tough call...

Money Boo Boo's picture

how is something that relies on the electrical grid, an owned and controlled encryption and 0's and 1's an asset?  It's a phantasmagorical unicorn of skittelisious proportions

itchy166's picture

The same as a US dollar, except you can't just add to it on a whim...

qomolangma's picture

I wanna frame your lines into a nice quote, perhaps something goes like this :-)

"Bitcoin, or any internet coin or so-called crypto-currency: some newly coined material in the 21st century that relies on the electrical grid, an owned and controlled encryption and 0's and 1's and taken as an asset." - MoneyBooBoo


Btw, what is "skittelisious", dig around but can't locate it

Captain Debtcrash's picture

I agree, and I hold about 200x the dollar amount of PM's as bitcoin.  I have railed against bitcoin here. But I am humble enough to admit I don't know it all and bitcoin seems to have stabilized nicely after the bubble.  I would just have a hard time calling the economy and PM's not work out quite as well as expected.  After the watching bitcoin react well in these little hiccups  its worth a small allocation, just in case. 

ZerOhead's picture

Warren Buffet avoided the Tech bubble crash because his policy was to never invest in something that he didn't understand.

If you really hold 200X the amount of PM's you own in Bitcoin you are in need of an immediate CATscan. Call 911 NOW.

Say what you want about Warren but those are wise words...

Not Too Important's picture

Didn't he try to go all in with the purchase of GeneralRe, and got rebuffed? And if he had bought it, he would have lost everything.

That episode gets lost in the noise.

Captain Debtcrash's picture

No, I own much more in physical precious metals than I do in bitcoin, about 200 times, but I do have a small allocation to bitcoin.  I still think there could be many flaws in the crypoto currency but I don't know for a fact so I think a small allocation considering how it has reacted thus far is reasonable. 

I wonder if part of the reaction of those who hate bitcoin is because they don't own any and thus hate to see it do well. I have argued against bitcoin on some levels but see some of the positive attributes as well.  I can't stand the commentators and financial advisors who say that the proper allocation to precious metals is zero. Are you sure that your bias against bitcoin isn't rooted in the fact that you don't own any, much like those who don't own PM's?  Anyone who completely avoided tech because they didn't understand some aspects of it were shutting their portfolio to great gains by the way. 

I'm fine with losing my investment in bitcoin, it is a speculation and I see many ways it could go to zero.  But I would have a hard time forgiving myself for not getting in when I saw a glimmer of possibility in the crypto currency.  Do I think it has vulnerabilities?  Yes. Is that enough to make an absolute conclusion that I should not own any, no.

I own precious metals, cash and equities, which I'm sure you do too.  To give bitcoin a fair shake in assessing it you need to own some and do some research.  Go on coinbase, buy 100 bucks worth.  That's it, that's all it will take to change your psychology and put it on an even field with the aforementioned assets. It will help you do proper unbiased research. It did for me, and though I am certainly not a crypto currency convert, it has changed my perspective. 

Shibumi2's picture

Its interesting to me that the BITCOIN is being promoted because it is supposedly anonymous (which it certainly isn't ) whereas no one is fighting the planned demise of paper fiat (which certainly IS anonymous).


Goes to show you what passes for logic today

Captain Debtcrash's picture

I don't think bitcoin is anonymous.  There are a few possibilities with bitcoin, it was created by a malevolent government, as say, an E Dollar beta test, it was created by a benevolent govt (Greenspan good guy argument), it is what the believers think (a strike of genius programming) and still fails, or it is what the believers think, succeeds, and changes the world of finance (slim chance but we have seen some amazing technology).  None of these seem like too much of a risk for a small allocation, particularly if you're not using it for nefarious reasons, but if you don't hold any and it ends up being the best protection against a well known, at least in these circles, debt based monetary collapse you might really kick yourself.  To each their own.

Shibumi2's picture

Its interesting to me that the BITCOIN is being promoted because it is supposedly anonymous (which it certainly isn't ) whereas no one is fighting the planned demise of paper fiat (which certainly IS anonymous).


Goes to show you what passes for logic today

jmcwala's picture

And who knows when TPTBs will outlaw Bitcoin. Just saying.

Captain Debtcrash's picture

I agree there are plenty of things that make bitcoin suspect. 

Money Boo Boo's picture

there are a multitude of "things" that make bitcoin suspect therefore anything more than zero things that make it suspect make it a fools errand to chase. Hence there are a lot of fools.  Bitcoin is a knowledge arbitraged ponzi scheme, nothing more, nothing less.

MayIMommaDogFace2theBananaPatch's picture

And who knows when TPTBs will outlaw Bitcoin. Just saying.

Or make private ownership of PMs illegal?  Who will you sell to?  Better call Saul!

LawsofPhysics's picture

LOL!!!  Unless you live on your own private island with good security and the ability to feed yourtself for years, finance and "the cops" are going to be the least of your concerns!  LOL!!!