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Rand Crashes, EM Stocks Plunge As Trader Warns, Absolutely Ignore The "It's-Priced-In" Meme
Extending its losses from yesterday, following the untimely sacking of a fiscally responsible finance minister, South Africa is in freefall - Rang crashed above 16 (record lows), stocks have crashed, and bond yields exploded:
China's Yuan hit a fresh 4 year low...
EM Stocks are plunging...
And of course US High Yield Bonds...
And as Bloomberg's Richard Breslow notes, there’s nothing chauvinistic in saying that, after a slew of monetary policy meetings by major economies, the opening acts are over.
It’s time to focus on the only one that matters. Since the financial crisis exploded in the face of the global economy, we have been living in an age of central bank coordination. Keep rates low and headed lower. And make sure speculative assets know they have friends in high places. Next week, for the first time in a long time, central banks will experiment with going their own ways
It is entirely ambiguous, based on the numbers and global economy, whether this is the right move at the right time. Opinions differ strongly among very strong thinkers
The Fed has made the decision that the imperatives of trying to creep toward some sort of monetary policy sanity outweigh the risk. Taking it back will be next to impossible
Multiple hundreds of billions of dollar-denominated debt issued by emerging market countries will come due in each of the next few years. Just how difficult will that be to repay? What will it be replaced with, at what interest rate?
The Chinese yuan hit another multi-year low today, the MSCI Emerging Market Index looks awful
So many unknowns, good and bad. Maybe this revives animal spirits and global capex spending takes off. The hysterical for hysteresis school of thought. Either way, absolutely ignore the "it’s priced in" claims
The Fed will drive home the lower and slower mantra. That is all spin, signifying nothing. Dot plots have proven to be bad guesses. They are strictly event dependent, in either direction. Volatility will be king as each economic miss will be over interpreted.
What happens on Dec. 16 or during the balance of 2015, will make good headlines, but tells us nothing about how the best trade ideas for 2016 will fare. The Fed is going to raise rates next week, and anyone who claims it is not a huge deal is fooling you, as well as themselves.
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OMG!
Everyone remain Calm..
Women and Children FIRST!
Funny thing is that there won't be a rate hike next week so everyone can go back to bed now.
agree
Sounds like a job for Martin Riggs and Roger Murtaugh...
Agree.
If Mr. Yellen had any balls, he’d raise next week… He don’t so they won’t.
http://i.imgur.com/QTqkte8.jpg
MvM. For a long time I agreed with that sentiment. The Fed really can't raise rates. But they've so overshot things with their Fedwords that I'm thinking they will do it. I didn't think they'd taper, but they did - just on a delay.
Either way, the slow-motion train wreck seems to be moving from Inception level 3 to 2 in 2016.
… and, anyway, it’s Bush’s fault!
See how many dominoes will fall by threatening a rate hike
They plan on bringing in Dana Carvey just for the event.
https://youtu.be/4QHHGHve_N0
(Running through with my hair on fire) "There's money on the sidelines! There's money on the sidelines!!!
A world that cannot survive an interest rate hike of 0.25% is a seriously wrong world.
Something is seriously wrong.....the US has 18 trillion dollars in debt.
Maybe if we ask Obama to leave early we could afford it.
The big spenders (read borrowers) will still have their cheap money, but the pension funds etc. will be eviscerated. The -$800 Bil. is gonna' hafta' come from somewhere, and it won't be from the top.
No matter what happens, Wall street makes money, Main street pays.
Look for prices to go up, spending to go down, savings to disappear, and the spiral to continue downwards at an accelerated pace.
Precisely, if the markets cant handle a quarter point they are obviously in cloud cunting cuckoo land. They are, but you know what I mean,
Rand crashes, however a Krugerrand purchased with paper Rand has increased in value.
And US dollars purchaced with Rand has increased in value even more, as gold begins it plunge.
Wait to see gold and silver prices next week after the interest rate increase. I don't think gold will break $1000, but will come close.
hope so......got a big pile of worthless greenbacks still in reserve if it does.....come to papa
Indeed.
Gold currently at All-Time Highs priced in Rands:
http://www.kitco.com/gold_currency/index.html?currency=zar&timePeriod=10y&flag=gold&otherChart=no
Absolutely spot on : "The Fed is going to raise rates next week...."
I stand by my earlier prediction, 0.25% "lift off" next week, not because they want to but because at this point is impossible for them not to.
Nothing is impossible when you control the minds of the sheep.
If what you say is true then there is no reason not to raise rates. What they have been doing is not working, why shouldn't they try a new tack.
As Trader Warns, Absolutely Ignore The "It's-Priced-In" Meme
Watch gold and silver freefall too.
I love it when a plan comes together - The Tribe.
hey - the "tribe" stole that from Hannibal Smith
When the whole world is lowering interest rates, with Europe continuing QE and markets collapsing, the US is gonna raise rates???? Great fucking timing Yellen. If she wanted to raise rates, she should have done it early or the Bernank should have done it so that asset prices dont create this huge bubble. I want to see Yellen raise rates now. The Fed, what a fucking joke
How many times have they said they are going to raise rates and how many times have they not raised rates.
See a correlation?
Hey everyone, all at once...pull my finger!
That means this would be a great time to surprise you.
Those who believe the Fedspeak will be surprised.
The Fed is still short the dollar and long risky assets, being Jews who live to serve their tribal masters.
Putin will likely even the score and double down. Conflict set to escalate.
Gold is jumping $1 in seconds now. Volatility getting worse and worse. I want to see Mr. Yellen in a gutter.
Rate hike or not means nothing. The market is fake. The collapse is coming and cannot be avoided for much longer. But we must have articles about it or what would we read on ZH and where would I comment?
Guys guys guys! Don't be so negative!
CNBC says "Spending rose as the holiday shopping season got off to a brisk start, suggesting enough momentum in the economy for the Fed to raise rates".
ENOUGH MOMENTUM, see??
Correct Bernoulii, and the Fed's / Yellin's head Gimp Mr Hilsenanus even spewed forth last week confirmation that the Fed will raise rates in December.
The Fed is in a serous box. They shot blanks last time and the markets tanked. They will raise rates this time and the markets will tank. When That massive underground "bunker" in Tifton Ga that is listed for $17.5MM gets sold, you know this shit is the real deal and the mother-fucker is going down !!!!
Bitcoin, anyone?
"Glencore to sell Optimum Coal Mine in South Africa for $136 million: administrators"
Look for another miners' strike in SA. That will make things worse.
Anglo-American cutting dividends and 85,000 jobs after shares lowest close in 16 years.
damn, and he was doing so well early on. even spells fare correctly toward the end but immediately follows with: The Fed is going to raise rates next week, and anyone who claims it is not a huge deal is fooling you, as well as themselves.
drivel. not only that but the tenor of the article suggested the summation would include something like: it doesn't matter if the fed hikes or not because they are irrelevant. C+ HAHAHAHAHA!! [/Ralphie's teacher]
You'll shoot your eye out.
You'll shoot your eye out.
HAHAHAHAHA!!
and, anyway, it’s Bush's Mens fault! bald move waxx it kalahari feminist.gov on time!