Dow Futures Plunge 170 Points After Yuan Crashes To 5-Year Lows As PBOC Loses Control
Dow futures are down over 170 points from the cash close, testing the lows of the day following carnage in the Chinese currency markets. Despite the biggest drop in onshore Yuan since August devaluation, Offshore Yuan has collapsed to its lowest since September 2010. What is more worrisome (or positive for Kyle Bass) is that the spread between onshore and offshore Yuan has blown out to 1250 pips - a record - indicating dramatic outflows and/or expectations of further devaluation to come.
Yuan is in free-fall... Offshore Yuan is down over 400 pips from intraday highs, testing 6.6800
CNH-CNY spread is now over 1320 pips - as it appears The PBOC is losing control.
And although Chinese stocks are "stable" thanks to some National Team play...
US equity futures are tumbling off the bounce close, trading back near the day's lows...
It appears Kyle Bass was right:
"Given our views on credit contraction in Asia, and in China in particular, let's say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there's one thing that is going to happen: China is going to have to dramatically devalue its currency."
And it is - sanctioned by The IMF...
Charts: Bloomberg
(15 votes)
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Actually it was the North Korean Nuke Test that caused the plunge. Dive hit the minute it hit the wires.
01.05 21:05 ET – BREAKING NEWS – 5.1 Earthquake Near N. Korea Nuke Test SiteThe plunge team will have the markets green by the close.
----> markets green tomorrow
----> markets red tomorrow
How about by the open. Were down 170, now down 140.
The market is a courrpt instrument used to determine the economy. It is not accurate in any respect compliments of Bernanke/Yellen.
It's costing the world tens of billions of dollars per day to keep the markets flat. That is not a good ROI.
I like that. The damage control is losing steam
Now dow(n) 305.
Down and down it goes.
Where it stops, nobody knows!
Disagree. It dropped .5% at the devaluation, fell further after.
Sum Ting Wong !!!
Like I keep saying, there is going to be no economic collapse. Nothing to see here, move on.
I dont think there will be an economic collapse just a prolonged economic crumble..... If you had a time machine and transported yourself three years back in time and then fast forwarded to today, by all objective measures it would be an economic collapse. in three more years now will look like a boom time in hindsight. the only thing that matters is that the keep the illusion of the stawk market up.... if they loose control of that, then there will be hell to pay. the sheep are stirring....
Not until almost everybody is fully invested in the markets and real estate
"Not until almost everybody is fully invested in the markets and real estate"
Well, I'm fully invested in my real estate (loan completely paid off). Can the collapse start now?
STEADY THE PLUNGE PROTECTION TEAM.
I NEED A GREEN HARD ON BY MORNING
Hory fuck
Exproding Ecronomeeeeeeeeeeeeee mudafucka
+400 on Wednesday
Thursday the market is down, Friday the market shoots higher on payrolls. Payrolls can be up, down, or "just right". Doesn't matter. That is what happened in Setember, October, and November.
The Chinese politburo clearly needs to kidnap MOAR short sellers.
Better not have kidnaped wb7 or hillbilly hells comin
Oh noes! You gonna go oveh line with that. Talk to you lateh. I gotta go mastah brake get car fixit.
"Stupid running capitalist dogs, we can Keynesify our currency much faster than you can!" - Vice Public Security Minister Meng Qingfeng
CC: Thomas Friedman ;-)
It will be green by tomorrow's close
Green by tomorrow's open
Time to get into the time machine
1983 Ratt/Motley Crue concert in L.A big tits, booze, and no fucks given.
haha Freeshitter you are the man! Everyone needs to contact Greg Abbott and say stand up to Obama. I just did. https://gov.texas.gov/contact/
PS my first concert was Black Sabbath 1995. Big Motely Crue fan too.
No worries
Getting a rise out of something every day gives Janet's poontang the sound and sensation of cold milk over Rice Krispies
She'll never stop
Malus, I am your father...
that's what she said
WTF
ZH edited their headline
Not unusual with a breaking story
Yes, House Rules. However you got exactly what you paid for!
And ya gotta admit, the commentary is much more diverse & thought provoking than Bloomberg or MSNBC! ;-)
#winning
any day now, I'm expecting Dow futures to announce that it too is HIV positive
Listen folks Orange Chicken is still the shit.
I tried to order some of General Tso's chicken but his wife said he went for a smoke and she hasn't seen him in a week.
It that chicken Dorito Orange?
Well even if so it is better the Boehner Orange. Cause if you ever had a an Orange Boehner before you know how painful that can be.
It's, almost, 10 pm. Yahoo Finance has Nasdaq, S & P 500 and Dow Futures on. I've never seen that, at 10 pm, the day before. It's getting interesting.
If you don't have all your stuff, WalMart delivers free for a $50 minimum order.
Boy that is weird on Yahoo.....
Maybe the meme is changing to crash it enough to require socialism to save us?
But But But The Green Shoots are flying out of Yellens Arse as Rome burns around her
Just a LITTLE too much info, my friend.
"HONEY....do we have any more Mind's Eye Bleach in the house ? "
How about plain ol' eye bleach?
http://www.eyebleach.com/
Well that was relaxing but now I have stiff muscle.
Those aren't green shoots, those are hemorrhoids. Her Romulan blood is copper based lending them the nice green tinge.
"Thank goodness the yaun is recognized stable money now or Keynesian Theory could take a major hit in respectability!" - Vice Public Security Minister Meng Qingfeng ;-)
Obama took care of the 'gun problem' earlier today. Tomorrow, he'd better give a speech on the economy. Maybe redo that "focus on the economy like a laser beam" speech he did a few years ago. So inspirational.
Obama gots some splaing to do, take our guns . While he let the world turn to shit on his watch
taking your gun.... fixed it for ya....
Obama only gives guns to people he trusts like Al Qaeda and ISIS so they can fight their oppressive government. What fool would trust lawful American citizens with guns and Second Amendment rights? What could they possibly need guns for?