7 Charts Showing The Lock Out Of European Capital Markets And The Surge In Counterparty Risk

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Tue, 08/23/2011 - 10:48 | 1590241 HelluvaEngineer
HelluvaEngineer's picture

No global bailouts.  Try global thermonuclear war.  Great game, btw.

Tue, 08/23/2011 - 10:49 | 1590245 Quintus
Quintus's picture

But the only way to win is not to play.


Tue, 08/23/2011 - 10:50 | 1590248 russki standart
russki standart's picture

Agreed, Quintus. In a rigged game, only the house eventually wins.

Tue, 08/23/2011 - 10:52 | 1590256 BetTheHouse
BetTheHouse's picture

Did someone mention me?

Tue, 08/23/2011 - 11:50 | 1590482 He_Who Carried ...
He_Who Carried The Sun's picture

Look at the $NYTV volume chart today!

Scary stuff!

Tue, 08/23/2011 - 10:52 | 1590259 Fish Gone Bad
Fish Gone Bad's picture

Fuck banks.  All this mess is from Woodrow Wilson being blackmailed for tagging his secretary.

Tue, 08/23/2011 - 11:06 | 1590323 achmachat
achmachat's picture

hmm... must investigate further.

Tue, 08/23/2011 - 11:22 | 1590383 Squid Pro Row
Squid Pro Row's picture

...Woodrow Wilson being blackmailed for tagging his secretary.

Do you have a reference for that?

Tue, 08/23/2011 - 11:45 | 1590463 Savyindallas
Savyindallas's picture

Benjamin Freedman is the most common source of this. Supposedly he was blackmailed with a demand for $25,000 with the threat of  an alienation of affections lawsuit, which was conveniently paid in exchange for promises of future favors  -ie Supreme Couurt appointments, US entry into WW1, Federal resrve, income tax, etc.

History books are king to the idiot Wilson, but he was the worst President in US hsitory  -  when it's all over the triumvirate of Clinton/Bush/Obama may collectively give him a run for it though.  

Tue, 08/23/2011 - 11:23 | 1590385 Squid Pro Row
Squid Pro Row's picture


Tue, 08/23/2011 - 11:45 | 1590465 Hearst
Hearst's picture

Wasn't Wilsons secretary male?

Tue, 08/23/2011 - 12:54 | 1590775 New_Meat
New_Meat's picture

Joseph P. Tumulty

Tue, 08/23/2011 - 10:57 | 1590281 Fox-Scully
Fox-Scully's picture

Engage them in a game of tick-tack-toe

Tue, 08/23/2011 - 10:58 | 1590291 Oh regional Indian
Oh regional Indian's picture

A  paradox like that must have a name in game theory. Nice. Very zen. If you do not fight, only then can you win.


Tue, 08/23/2011 - 11:19 | 1590374 Sgt.Sausage
Sgt.Sausage's picture

It's called the Joshua/WOPR/Falken paradox.

Tue, 08/23/2011 - 12:11 | 1590570 Zeilschip
Zeilschip's picture

They`re trajectory headings for Multiple lmpact Reentry Vehicles. - What does that mean? - l don`t know, but it`s great!

Tue, 08/23/2011 - 10:53 | 1590264 EscapeKey
EscapeKey's picture

Ghanji pissed me off. Once he'd blast continuous propaganda your way, he'd never stop. Khadaffy was cool. As long as you bombed him occasionally, he was happy.


Tue, 08/23/2011 - 10:56 | 1590279 BlackholeDivestment
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Tue, 08/23/2011 - 10:51 | 1590247 bill1102inf
bill1102inf's picture

oh the horror, DOW +147 

Tue, 08/23/2011 - 10:52 | 1590255 Dr. Engali
Dr. Engali's picture

Ben is working his little ass off hitting that printer button trying to push it above 11,000.

Tue, 08/23/2011 - 11:14 | 1590353 citta vritti
citta vritti's picture

so he doesn't have to announce QE3 this weekend (too great a danger to his own institution, as he said at end of last press conference), to allow for stuff to settle down so they can be called in again as heroes

Tue, 08/23/2011 - 10:52 | 1590258 Catullus
Catullus's picture

You know what would be awesome, if there was like a rate that told you the interbank offer rate at some random location where a lot of banks are located. Say like London. This could like tell me what the London Interbank Offer Rate is over a given period of time. I think I'd call it LIBOR. That would awesome. Alas, no such rate exists. Here's dreaming.

Tue, 08/23/2011 - 10:58 | 1590289 Quintus
Quintus's picture

What would be even better would be if your hypothetical interbank rate was not blatantly fudged by the banks who produce it in order to send whatever message of stability and normalcy they want the wider public to swallow.

Tue, 08/23/2011 - 11:14 | 1590359 citta vritti
citta vritti's picture

aka LIeBOR

Tue, 08/23/2011 - 11:17 | 1590369 Catullus
Catullus's picture

That's the part I really don't get. I know some are claiming that right now is a rigged sell-off to justify more printing. But why not manipulate the rate which you're already manipulating to reflect that? Unless everyone important already hedged out all interest rate risk and movement in this rate would instantly cause the banks to be decapitalized.

Tue, 08/23/2011 - 10:53 | 1590262 Ancona
Ancona's picture

Someone poured a bunch of cement in to their liquidity.

That sucks.

Tue, 08/23/2011 - 10:54 | 1590269 slaughterer
slaughterer's picture

Nobody wants to miss the next rally 

Who needs wars when you have HFTs and gold-collateralized Eurobonds?

Tue, 08/23/2011 - 10:55 | 1590273 Misean
Misean's picture

Transitory contained liquidity problems. Won't last 15 minutes.

Tue, 08/23/2011 - 11:02 | 1590277 carbonmutant
carbonmutant's picture

More Bennibux on Friday...

Dexus Ex Bitchez

Tue, 08/23/2011 - 10:58 | 1590285 Oh regional Indian
Oh regional Indian's picture

Eurozone is the right hand here folks.

What is the left hand doing? Besides bombing the bejeesus out of freedom hating mooslims, what is the left hand doing? 

Black swans always fly out of left field.

Could it be that there will be one more attempt to leave Asia holding the bag? Asia is floating on carry currencies, mainly. And exports in the self-same denominations. We will fall really really hard. Internal demand is a joke, another credit pumped joke.

Interesting times indeed.



Tue, 08/23/2011 - 11:06 | 1590319 centerline
centerline's picture

I always enjoy your posts ORI. Interesting times for sure.

Tue, 08/23/2011 - 11:19 | 1590375 Oh regional Indian
Oh regional Indian's picture

Thanks and likewise Centerline. Though it seems you err on the side of brevity and me low-key-ciousness? ;-)

Vivek (ORI)

Tue, 08/23/2011 - 10:59 | 1590292 ArkansasAngie
ArkansasAngie's picture

get it over with already.


Tue, 08/23/2011 - 11:03 | 1590305 HelluvaEngineer
HelluvaEngineer's picture

The crash has been postponed until Friday.  Please check back later.

Tue, 08/23/2011 - 12:02 | 1590536 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

"...maybe the smartest thing to do is pull it. And they made that decision to pull and we watched the...collapse."

Tue, 08/23/2011 - 11:01 | 1590302 Sudden Debt
Sudden Debt's picture

As RBS and Barclays seem to be winning this race, can you call this still a Europe catipal markets article?

I mean.... England... pound...



Tue, 08/23/2011 - 12:05 | 1590447 cowdiddly
cowdiddly's picture

You want to know how the story ends? Easter Island..... Where the heck did these big stone heads come from? Musta been space aliens..............gasp surely the inhabitants did'nt eat each other. Where was Malthus from again?

Moral: never live on an island in TEOWAKANI without a damn good boat.

Tue, 08/23/2011 - 11:04 | 1590312 Dr. Engali
Dr. Engali's picture

I'm long gold an silver physical, but I sure wish gold would get a smack down so I can get more. This run is over done. Come on margin hikes.

Tue, 08/23/2011 - 11:34 | 1590424 rubearish10
rubearish10's picture

It's hard to sit and wait for a "dip". The feeling of "I should have sold or not being long enough" is most difficult to endure. "this run is over done". Nah, not really.

Tue, 08/23/2011 - 11:07 | 1590325 buzzsaw99
buzzsaw99's picture

the bernank will buy that libor back down, it is transitory.

Tue, 08/23/2011 - 11:07 | 1590327 csmith
csmith's picture

"...and thus actually had dry powder to do so,..."


Dry Powder. Plenty of it around.


"I got a monetary plan and it involves a lot of toner."

Tue, 08/23/2011 - 11:09 | 1590333 Sudden Debt
Sudden Debt's picture

Did anybody read this excellent aritcle about the SLV on SeekingAlpha?




Tue, 08/23/2011 - 12:29 | 1590643 smore
smore's picture

SLV is for the unwashed, Goldmoney is for the washed.

Tue, 08/23/2011 - 11:14 | 1590356 LookingWithAmazement
LookingWithAmazement's picture

I don't see any trouble. The interest in keeping Europe up is too big to let it fail. The Bernank will drop a line, just like with that 1.2 trillion. Comes good. Boring world we live in.

Tue, 08/23/2011 - 11:21 | 1590378 TideFighter
TideFighter's picture

No QE3, but "Operation Twist circa 1961" will be the plan. I fail to see how this will stop a DOW plunge to 600 or less. When do we short T's?

Tue, 08/23/2011 - 11:37 | 1590434 vast-dom
vast-dom's picture

my humble advice: start dollar cost averaging into TBT now!



Tue, 08/23/2011 - 11:23 | 1590391 adr
adr's picture

A true crash is Netflix falling to $50. Until that happens we are still in a bubble. Imagine the shitstorm that would be Netflix dropping to a p/e of 10. 

Tue, 08/23/2011 - 11:27 | 1590402 alpha60
alpha60's picture

on the first chart, how about an explanation


these are the overnight lending rates that each of the banks are offering the market? or overnight rates each of the banks are getting in a particular market? which one?

Tue, 08/23/2011 - 11:32 | 1590417 scratch_and_sniff
scratch_and_sniff's picture

Psssst, hey you, pssst, what ever you do, dont look at the charts...

Tue, 08/23/2011 - 11:37 | 1590435 lesterbegood
lesterbegood's picture

All this bankster badness pales in comparison to the celestial object approaching our planet from the southeast. Go to google sky and search 'Mercury". Click the infrared tab, look in the left-upper quadrant of the map.

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