Oilpocalypse Wow! Stocks, Bond Yields Plunge As Bank Risk Soars

Tyler Durden's picture

What The Bank of Japan gives, The Japanese Finance Ministry taketh away...

Artist's impression of the last few days in crude, JPY, and US stocks...


Oil closed under $30 after Russian productiuon and OPEC denials... From bull market to correction in 2 days - This was the worst 2-day drop in oil since January 2009...


And today's other major driver - exploding US bank risk...


USDJPY started to snap today as JPY and NKY erased half their post-BOJ NIRP shifts...


But everything was awesome yesterday? US equities erased all the post-BOJ NIRP gains...


The worst performer today was Trannies and Small Caps as even Nasdaq was hammered despite GOOG earnings hope...


Since The Fed hiked rates, Bonds & Bullion have soared as Crude and Stocks have plunged...


Why F.A.N.G performance diverging?  FB and GOOG both very strong sets of #s – and both are ad rev plays unlike AMZN and NFLX (both of which are underperforming).. but in the end the selling pressure was universal in high beta tech.


As YHOO flounders around desperately...


Sectors breakdown...

  • E&P weakness– APC's Al Walker on his CC seemed to be complaining, for lack of a better term, about how Moody’s and how the other rating agencies may change the methods by which they rate E&P companies.  Causing some concern today along with poor S&P 500 and WTI Mar ’16 technicals – Sisto, sector specialist

Energy credit was a bloodbath...

  • Media underperforming – GOOG and FB competitors for the media ad revenues, some think the strong GOOG #s show them taking money from the media plays
  • Transports weak DAL prasm # inline, F and GM #s show Car sales continue to be very weak
  • Healthcare lower; More neg press on drug price hikes “Shkreli Not Alone in Drug Price Spikes as Skin Gel Soars 1,860%” http://washpost.bloomberg.com …VRX hit on speculation of circulation of House of Rep committee documents that mention the company specifically with regards to drug prices -ttn
  • Financials hit as US 10Y falls to multi month lows


It's not over yet...

  • Utes outperformance is impressive. The group has now outperformed the S&P by 14.5% since the day of the fed hike. Flows continue to be driven by LO buyers, but todays action feels XLU driven as i'm quiet and haven't seen any meaningful prints go up



VIX started to pick up... but remains anything but panic land. It would appear that equity exposure is being reduced dfirectly rather than synthetically through a hedge...


Many traders have noticed that volatility in the last hour of trading has increased significantly in recent weeks.

CS notes that while true, we find that the increase is not isolated to the end of the day. Rather, the effect stems from an increase in overall intraday volatility levels throughout the day. The ratio of the high-low move in the last hour compared to the whole day is actually not far from the norm.  In January, the price swing in the last hour was about 40% as big as the whole day’s swing.

Treasury yields collapsed today... 10Y at 1.85% is the lowest since April 2015...


Today's yield plunge was the biggest drop since June 2015


The yield curve has collapsed... 2s10s is flattest since Dec 2007!!



The USDollar Index extended its losses today... very notable strength in JPY today as commodity currencies gave some recent gains back...



Gold & Silver were flat today as copper and crude flailed...


The crude oil roller coaster continues... with increasing volatility...


Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
PoliceThePolice's picture

The United States is now 19 trillion in total debt. It took over 75,000 days to rack up the first trillion dollars in debt. It took them just 427 days of printing to pile on this last trillion dollars.

Think about that timeline for a minute. If that does not make people sick to their stomach, what does?

This fucker is gonna crash and burn without a doubt. I just hope when the smoke clears, Janet and her bankster money printing elite are swinging from light posts!

Boris Alatovkrap's picture

Many graph in article is present picture of confusion. Boris is summarize for graphically illiterate:

Excrement is full contact with blade of rotation air pressure gradient inducing apparatus. Cover face and expose body part from airborn spray.

remain calm's picture

Can someone intelligently explain how the Japanese Yen strengthens on this???? PLease

Father Thyme's picture
Father Thyme (not verified) remain calm Feb 2, 2016 4:21 PM

Everyday is "Opposite Day" in progressive-land.

Central Bankster's picture

On CNBC they just had an analyst calling for zero on many EU banks.  


Anyone see the 52 week low on DB?  


Gambit's picture

Yes, its today.  Scares the shit out of me to be honest.  They are THE LARGEST derivative holder. 

Reality Creator's picture

Germany is still trying to conquer the world, I see...Zee bing yoo dawhn unce ahn fow-all!!!

Boston's picture

52 week low on DB ??


Try 20+ year low on DB. My charting software doesn't go back any further!

Buckaroo Banzai's picture

DB is doing a slow-motion Lehman. DB is what Lehman would have looked like if the gang had tried to put it on life support, instead of putting a bullet in its head.

Global Hunter's picture

The BoJ has been trying to devalue the Yen through lower interest rates and QE, after announcing NIRP policy on Friday and today cancelling he March 10 yr auction the market sees it that they are failing in their attempts to devalue further.  So the opposite to devalue occurs.

I THINK...this is what I read into it.

r101958's picture

Remain Calm- It is because, no matter what is officially stated, all the other central banks are printing MOAR than the JCB.

greenskeeper carl's picture

the japanese are savers, its almost baked into their DNA.  Despite NIRP they refuse to rush out and spend all their money. That, and they have pretty much reached the limit on their ability to talk the yen lower. Plus, china.

Renfield's picture

Enjoyed that very much. Many thanks. The professor is clear and absolutely correct, this is why so many of us are so easily fooled: not understanding the exponential function.

(I enjoy lectures, going to learn from all 8 of these....)

CrabbyR's picture

awesome video...Im passing that one around , everone should check this one out

3rdWorldTrillionaire's picture

Yen buying to cover f/x-driven carry trades as shit unwinds globally.

Au_Ag_CuPbCu's picture

I can't quite put my finger on it but when I se this clip I think of the Fed....hmmmm




Enki Anu's picture

Yen is stronger than $, because they make cars, we make them too, but in Mexico and Canada. Any more question?

zeroaccountability's picture
zeroaccountability (not verified) remain calm Feb 2, 2016 6:12 PM

"Can someone intelligently explain how the Japanese Yen strengthens on this???? PLease"

Well, you see, the Japs decided to pay negative interest rates on govt. bonds, so, since the bonds can't be sold to anyone now

aaaaaawwww, forget it....Hell if I know!

Beatscape's picture

EU banks can use NIRP and buy these money losing bonds from each other by decree since they're all in the EU together -- their hands are tied.  Japan is an island.  Who wants to pay the BoJ a monthly fee for the privilege of owning their sovereign bonds and willingly take a loss?  Not any traders that I know of. No wonder the BoJ had to cancel their auction today. This venture in NIRP for Japan is going to be a complete disaster. ZH is right that it strips away the final veneer of legitimacy from the CBs.

pathosattrition's picture

Yen strength is the result of Japan's trade balance shifting (as a net oil importer) in a risk-off trade compounded by their gargantuan debt service needs.

Also, proof of the (financial) apocalypse.

Chuckster's picture


You are a natural born quantum mechanic.

Chuck from Chuckster's Corner "We put the balls to great ideas!"

Quant Jockey's picture

I'm still cleaning off my screen. That's freaking hilarious!

sam i am's picture
Anti-Putin opposition leader Kasyanov caught in Strasbourg with his pants down and blames Kadyrov



Taint Boil's picture



Had to log in and up vote you for describing the device that produces a current of air by the movement of a broad surface or a number of such surfaces.

Duc888's picture




fuck 'em, it's not my debt.  I never signed on the dotted line.



new game's picture

i think the message is getting out to the moms and pops, go away well before may...

chunga's picture

Meanwhile...over in Iceland, where banks aren't too big to fail.

Iceland central bank preparing new weapons to fight capital rush


With interest rates higher in Iceland than in virtually every other developed economy in the world, Gudmundsson said, it was unlikely locals would be rushing to take their money out of their bank accounts. It was more likely foreign investors will put more in.

Chupacabra-322's picture

@ Duc888,

If you pay taxes to the Criminal Fraud Enity called the UNITED STATES, CORP. INC. & its Criminal Corp. Inc. Fraud Affiliates at the STATE & LOCAL levels you have enterd & agree / CONSENT (Blaxk Law's Dictionary) contractually to the Criminal Fraud being perpetuated.

Sign a check, accept a SS Card, register your car, agree to have a Driver's LIEcenser, etc... Then, you agree to privileges granted to ypu by said Criminal Fraudulaent Corp. Inc. Entity/s.

Chupacabra-322's picture

Under ignorance or Silence is also CONSENT. Also, when your mother signed ypur birth certificate contract. She voluntarily handed you over to the State as collateral to pay back the Debt from the Bankruptcy of 1933.

the Independent Treasury Act of 1920? No, you say.... Hmmmmmmm....?

The Independent Treasury Act of 1920 suspended the de jure (meaning "by right of legal establishment") Treasury Department of the United States government. Our Congress turned the treasury department over to a private corporation, which when seen in its true light, is a fascist monopolistic cartel, the Federal Reserve and their agents. The bulk of the ownership of the Federal Reserve System, a very well kept secret from the American Citizen, is held by these banking interests, and NONE is held by the United States Treasury:

Rothschild Bank of London
Rothschild Bank of Berlin
Warburg Bank of Hamburg
Warburg Bank of Amsterdam
Lazard Brothers of Paris
Israel Moses Seif Banks of Italy
Chase Manhattan Bank of New York
Goldman, Sachs of New York
Lehman Brothers of New York
Kuhn Loeb Bank of New York

The Federal Reserve is at the root of most of our present statutory regulations, "laws", in the control and regulation of virtually all aspects of human activity in the United States, through successively socialistic constructions laid upon the Commerce clause of the Constitution. Basically, the Federal Reserve is the "STATE" of the United States.


RadioactiveRant's picture

Are you sure this is correct and not some cut and paste jibberish? Lehman has gone, theres no Rothchild bank in Berlin, I dont think Israel Moses Seif Banks exists...

Chupacabra-322's picture

@ Radioactive,

Yea, I'm sure. Here's a speech given by the late James Traficant on The Board of Trustees (House) Floor. It's a long pipe but worth the read.

The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303

Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:

"Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.

It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.

The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: "The U.S. Secretary of Treasury receives no compensation for representing the United States?’

Gold and silver were such a powerful money during the founding of the united states of America, that the founding fathers declared that only gold or silver coins can be "money" in America. Since gold and silver coinage were heavy and inconvenient for a lot of transactions, they were stored in banks and a claim check was issued as a money substitute. People traded their coupons as money, or "currency." Currency is not money, but a money substitute. Redeemable currency must promise to pay a dollar equivalent in gold or silver money. Federal Reserve Notes (FRNs) make no such promises, and are not "money." A Federal Reserve Note is a debt obligation of the federal United States government, not "money?’ The federal United States government and the U.S. Congress were not and have never been authorized by the Constitution for the united states of America to issue currency of any kind, but only lawful money, -gold and silver coin.

It is essential that we comprehend the distinction between real money and paper money substitute. One cannot get rich by accumulating money substitutes, one can only get deeper into debt. We the People no longer have any "money." Most Americans have not been paid any "money" for a very long time, perhaps not in their entire life. Now do you comprehend why you feel broke? Now, do you understand why you are "bankrupt," along with the rest of the country?

Federal Reserve Notes (FRNs) are unsigned checks written on a closed account. FRNs are an inflatable paper system designed to create debt through inflation (devaluation of currency). when ever there is an increase of the supply of a money substitute in the economy without a corresponding increase in the gold and silver backing, inflation occurs.

Inflation is an invisible form of taxation that irresponsible governments inflict on their citizens. The Federal Reserve Bank who controls the supply and movement of FRNs has everybody fooled. They have access to an unlimited supply of FRNs, paying only for the printing costs of what they need. FRNs are nothing more than promissory notes for U.S. Treasury securities (T-Bills) - a promise to pay the debt to the Federal Reserve Bank.

There is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration." Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.

Their lust is for power and control. Since the inception of central banking, they have controlled the fates of nations.

The Federal Reserve System is based on the Canon law and the principles of sovereignty protected in the Constitution and the Bill of Rights. In fact, the international bankers used a "Canon Law Trust" as their model, adding stock and naming it a "Joint Stock Trust." The U.S. Congress had passed a law making it illegal for any legal "person" to duplicate a "Joint Stock Trust" in 1873. The Federal Reserve Act was legislated post-facto (to 1870), although post-facto laws are strictly forbidden by the Constitution. [1:9:3]

The Federal Reserve System is a sovereign power structure separate and distinct from the federal United States government. The Federal Reserve is a maritime lender, and/or maritime insurance underwriter to the federal United States operating exclusively under Admiralty/Maritime law. The lender or underwriter bears the risks, and the Maritime law compelling specific performance in paying the interest, or premiums are the same.

Assets of the debtor can also be hypothecated (to pledge something as a security without taking possession of it.) as security by the lender or underwriter. The Federal Reserve Act stipulated that the interest on the debt was to be paid in gold. There was no stipulation in the Federal Reserve Act for ever paying the principle.

Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913)

"Hypothecated" all property within the federal United States to the Board of Governors of the Federal Reserve, -in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a "beneficiary" of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their "subjects," the 14th Amendment U.S. citizen, to the Federal Reserve System.

In return, the Federal Reserve System agreed to extend the federal United States corporation all the credit "money substitute" it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their "economic slaves", the U.S. citizens as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national parks forests, birth certificates, and nonprofit organizations, as collateral against the federal debt. All has already been transferred as payment to the international bankers.

Unwittingly, America has returned to its pre-American Revolution, feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the people have exchanged one master for another.

This has been going on for over eighty years without the "informed knowledge" of the American people, without a voice protesting loud enough. Now it’s easy to grasp why America is fundamentally bankrupt.

Why don’t more people own their properties outright?

Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?

We are reaping what has been sown, and the results of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.

America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order! Wake up America! Take back your Country."

Buckaroo Banzai's picture

Actually, here's the case that the source of all financial shenanigans in the last 80 years has been the Treasury Dept.'s Exchange Stabilization Fund. Jim Willie turned me on to this exquisitely-researched presentation on YouTube. It appears that the Fed is merely the ESF's beard.

"It is impossible to understand the world today without knowing what the ESF is and what it has been doing. Officially in charge of defending the dollar, the ESF is the government agency which controls the New York Fed, runs the CIA's black budget, and is the architect of the world's monetary system (IMF, World Bank, etc). ESF financing (through the OSS and then the CIA) built up the worldwide propaganda network which has so badly distorted history today (including erasing awareness of its existence from popular consciousness). It has been directly involved in virtually every major US fraud/scandal since its creation in 1934: the London gold pool, the Kennedy assassinations, Iran-Contra, CIA drug trafficking, HIV, and worse..."


Chupacabra-322's picture

Who is running America? Have you ever asked that question?

Under the doctrine of Parens Patriae, "Government As Parent", as a result of the manipulated bankruptcy of the United States of America in 1930, ALL the assets of the American people, their person, and of our country itself are held by the Depository Trust Corporation at 55 Water Street, NY, NY, secured by UCC Commercial Liens, which are then monetized as "debt money" by the Federal Reserve. It may interest you to know that under the umbrella of the Depository Trust Corporation lies the CEDE Corporation, the Federal Reserve Corporation, the American Bar Association, the legal arm of the banking interests, and the Internal Revenue Service, the system's collection agency.

Now you know who is running America!
You might want to take exception to the name on the marquee at the entrance to 55 Water Street.

chunga's picture

I'll take "who is the tribe for all the marbles alex"

mcmc's picture

DTC was established in 1973. 

peddling-fiction's picture


And the truth shall set you free.



mt paul's picture

fuck 'em, it's not my debt. I never signed on the dotted line.

read the fine print
on your birth certificate

JRobby's picture

"This is the end, beautiful friend, the end......

Of our elaborate plans, the end".

lakecity55's picture

Chief: "CAPT, we took a guy like you up the Nung River about 6 mos ago. He and his portfolio vanished."

Neil Patrick Harris's picture

When I hear "blah blah blah $19 trillion in debt, I have to ask, what does that even mean?

The private Federal Reserve prints fake paper money backed by nothing. The dollar only has value for 4 reasons:

  1. currency pegs with key oil producing countries.
  2. control over the SWIFT ledger protocol.
  3. faith in a corrupt system.
  4. the fact that global finance is completely dependent on the fiat bankings system, and every other currency is in a shittier debt situation than the dollar.

I agree that this sucker is going down in a fiery explotion, but not because of "government debt" whatever that is. Keynesian economics relies on government credit to create bullshit collateral convince people to labor away for printed paper. The nature of money itself is collapsing. Keynesianism is collapsing.

Escrava Isaura's picture



Your post started so well, the middle of it was very telling but, the end failed my expectations.

You can do better than that by leaving finger pointing a person that is dead for about 60 years and instead, focusing on the marriage of state capitalism and private capitalism on the era of plenty energy.

SgtShaftoe's picture

You also missed the most important: The reserve currency is backed by the petrodollar and the US military.  You try to sell oil in anything else but Dollars and see what happens, kinda like Gaddafi, Saddam, and what's happening in Syria.  The currency is ultimately backed by violence.  The power of the US government domestically is also backed by violence. 

runningman18's picture

The banksters are degrading the U.S. military and feminizing it.  Also, there is no way the U.S. can forcefully counter a currency depeg by multiple OPEC nations at once, which what is likely to happen.

10mm's picture

They won't be swinging from light posts. But it is a good wish.

runningman18's picture

There won't be anything left to put a rope around...