This page has been archived and commenting is disabled.
Good News Is Terrible News: Dollar Surges As Bonds, Stocks, Commodities Purge After Payrolls Print
"Everything is awesome." The Fed got just what it wanted... surge in jobs and a surge in wages - which has sent December rate hike odds from 56% to 74%.
A big surge from before...
This appears to be a problem for everything else.
The dollar has soared (EURUSD almost a 1.06 handle), Bond yields have exploded (though the long-end is notably outperforming), stock prices plunged, and commodities across the board are getting hammered.
Charts: Bloomberg
»
- 129 reads
- Printer-friendly version
- Send to friend
- advertisements -
But! Your last article?! Payrolls?! What happened to the party?!
Don't worry, it's priced in. ;)
Ich achtung, baby.
This is amazing. I'm so happy, Christmas came early. This proves the FED was right all along and was smart of them to wait! This poves with out a shadow of a doubt that December IS the time to raise rates. I'm so relived and I'm sure so is the FED. We'll be back to normal rates very soon now. The only question is how much will they raise it in Dec? I'm thinking at least .75 now. Congrats FED! The Dec hike is nothing but a formaility now.
Things sucked last Friday, but now we're ready to rock n roll on higher rates this Friday!
.75 like a drop in the bucket!
If the S&P can handle a quater point then it can go and fuck itself.
Whelp, there's a "good fucking morning!" gold print if I ever saw one. /sarc
Stock markets will be up no matter what today since they are no longer based in reality! I got a feeling reality is very close to making a return party though.. What a horrowshow haha
PMs back in the downward channel.
Success, FED.
Better start enjoying taking it in the ass like this.
Yeah, we're basically at 2008 levels of pricing on AU, and it's like that whole multiple-trillions-of-dollars-printed thing never happened.
I'm to the point where I just DGAF anymore. Nothing is real, everything is lies.
I think I'm now months away from just saying fuck money, converting everything to hard goods in a few strategic stashes and just dropping out of society altogether. This current system has nothing to offer anyone who actually works other than penalties and fines. Fuck them all.
Buy low, sell high.
Or, if you buy now, it will be Buy High, Sell Low.
More people are supposedly working and making more money, STOCKS FALL.
Last month was terrible, less people working than they thought, STOCKS SOAR 12% TO THE BEST MONTHLY GAIN EVA!
The market is truly insane.
I think all we truly need to embrace the insanity fully is President Sanders.
Any alien civilization watching us would at that moment turn their devices off and say, "Have a nice life Earthlings, we're out."
Nope, they would say, your out, we'll try again with the nice life.
merely a distraction from the elections as the current party is losing ground........they will not raise rates in december because this report will be a distant memory to the next terrible report.
No rate hike once the Fed went ,gov
Markets will be red today. Things are inverted. Dollar climb hurts and LC fall hurts.
Gold down even more, and just on specualtion of a quarter percent rise. What will happen when interest rates actually rise?
The past couple years I've been saying that gold is still HIGH and as soon as interest rates go up, even a little, gold will plummet. Have had lots of good laughs at the expense of gold bugs, who, in their magical thinking, keep saying that gold is cheap and buy. Nope, you ain't seen nothing yet.
Gold will only go back to its forner glory when this ponzi explodes. Simple as that.
This is the same ponzi that is keeping gold high. Gold is a luxury, and when the chips are down, so go luxuries.
Dumb fucker. Gold went up while interest rates went up in the 70's and 80's. Gold exploded higher when Greenspan lifted rates in 2004 to 2006. gold will go up when rates really do go up. Not when they talk about them going up but when they go up
Gold is incredibly cheap, because it's being priced in USD that is utterly worthless long-term. Unfortunately the CBs are in control of the markets so there's no way to see this truth. At some indeterminate point in time but likely in your lifetime the whole fascade is going to implode -- by their own admission in 2008 we were hours away from total systemic collapse, and you're insane if you think the situation has improved since then.
I do agree, though, we'll probably see gold go lower, shit, it might even go to zero, before this happens, but it's purely an artifact of an unreal market. When it reverses it will happen at a speed so fast no one will have time to act, and AU will probably be priced either in terms of itself or in a currency other than USD.
Just becasue you WISH something to happen, doesn't mean it will. No, gold is a commodity and will only get cheaper relative to whatevery unit of meause you want to use.
Total systemic collapse in 2008? Not by a long shot. Down, yes, but out, not even close.
And speaking of 2008, gold PLUMMETED. Tell us, why was that? if it's supposed to be miracle money?
Gold fell because the banks holding it sold it -- they last, most liquid asset -- to save themselves. It plummeted in the first half of September 2008, and then launched in the coming months.
Let's give you a refresher, since your statement makes it clear you have no idea what gold did in 2008.
15 July - Gold hits peak of $962.
10 September - hits low of $749. Here's a refresher on the news that day. Lehman was imploding, stocks were dropping and people were trying to generate liquidity using their most liquid assets.
12 days later:
22 September - hits $887. Here's the news for then.
You'll notice in that article, "Gold prices jumped more than $44 an ounce as investors looked for safer assets than stocks and also worried about the inflationary aspects of the bailout plan". That's a 5.2% move up in gold in a day, and up 18.4% from the Lehman collapse low.
Oh, and that bailout plan -- why is that taking place? Because the banks were imploding. How serious was that?
Here's an excellent summary from Wikipedia:
And not close to total systemic collapse? Watch this video, which confirms what multiple representatives reported, and that Paulson also confirmed was the case. Virtually every player directly involved has confirmed -- months to years later -- that due to the drawdown rates, the US and global economy were hours from collapse. The situation was so serious they had to double the FDIC insurance limit and provide a $700 billion bailout to banks less than a week after Lehman, and the Fed had to dump $105 billion into the market just to keep it working for a few hours. The outflows were so great they literally couldn't keep up, which is why the bailout and FDIC guarantees happened -- to stop the outflows and prevent the collapse of the global financial system.
You need to go back to school or start paying attention, and probably would be a good idea to stop spewing blatantly incorrect statements.
Does Putin get paid in Euros (the currency, not the pipple) .... for his oil and gas .... oh, my .... that's like a banana republic .... slipping on it's own banana peel .... and this on the heels of the Surprise in Sinai .... sorry, Putin lovers :<) ?
Can't you get your nose out of Putin's ass for just 5 seconds? Sheesh.
I love how you take pleasure out of dead civilians. Piece of shit.
Gold in AUD hasn't changed that much.
australia's cb doesn't print gold like the us fed does. they may some day, just not today. the us fed is on a non-paper wealth destroying fanatical binge.
How convenient! The market doesn't like being lied to.
Proving the only thing that matters now is the continued free flow of free money.
Dollar rising will not be good for America. If dollar rises other emerging market currencies like Chinese Yuan will fall and in order that Yuan doesn't fall too much, China would sell their treasury bonds to collect dollars and from those dollars they will buy yuan so that yuan doesn't fall and in the process they will be able to get rid of dollars and treasury bonds. Other emerging market countries will also start selling US Treasury bonds to prevent their currencies from falling. As a result of this, the whole world will loose trust on treasury bonds which will make the yield to rise. So then it will be more difficult for American goverment to repay their debt and get more cheaper debts. Once the dollar will reach its own country it will create the hyperinflation. Yellen thinking to raise rates is a great mistake.
You can say that again!
Dollar rising will not be good for America. If dollar rises other emerging market currencies like Chinese Yuan will fall and in order that Yuan doesn't fall too much, China would sell their treasury bonds to collect dollars and from those dollars they will buy yuan so that yuan doesn't fall and in the process they will be able to get rid of dollars and treasury bonds. Other emerging market countries will also start selling US Treasury bonds to prevent their currencies from falling. As a result of this, the whole world will loose trust on treasury bonds which will make the yield to rise. So then it will be more difficult for American goverment to repay their debt and get more cheaper debts. Once the dollar will reach its own country it will create the hyperinflation. Yellen thinking to raise rates is a great mistake.
And just like that, stocks are green by the open.
"Everything is awesome." The Fed got just what it wanted... surge in jobs and a surge in wages and soon a surge in stocks as well. Bad news is good news, good news is also good news so for the time being.......everything is fixed, but........the Big Bang will be coming, no matter what.