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And In The Meantime Back In Reality
As the market marinades in the latest confusing Bernanke Q&A aftermath, we get two very disturbing headlines. The first:
- China’s Zhu Says ‘Too Soon’ to Discuss Further EFSF Purchases
- While there are proposals to revamp the European Financial Stability Facility, “there’s no concrete plans yet so it’s too early to talk about further investments in these tools,” Zhu Guangyao, Vice Finance Minister, told reporters in Cannes today.
This goes hand in hand with the disaster that was the overnight news on the EFSF pulling a meager €3 billion bond auction. If you gave us Jefferies' rolodex, we could probably raise more for a bankrupt MF Global in ten minutes (kinda like what they did). Oh well, so much for Europe.
And in other news, and confirming what we have been saying over the past two weeks, namely that foreigners are dumping US bonds to shore up emergency balance sheet capital, we get the following confirmation from Dow Jones:
- IIF Sees Euro-Zone Banks Selling Govt Bonds To Meet Capital Targets
That's right: government.
Recall what we said last week "in the last 8 weeks foreigners have sold a unprecedented $93 billion across the custodial account bringing it to $3.392 trillion, the lowest since March 2011! So the next time someone asks where European banks are finding emergency liquidity now that commercial paper, money market and Libor Markets are all dead, you will have the answer." Now it has been confirmed. Because when raising capital, you don't sell the bonds which are trading at nickels on the dollar. You sell the liquid ones. It will be very ironic if Europe's collapse drags down America following a wholesale dump of US bonds, as we have been suggesting. Naturally this confirms 100% what we suggested two weeks ago, namely that the only reason the EURUSD is as high as it has been is due to liquidation of US bonds by French banks, and the prompt repatriation of the USDs into EURs. Meaning while the EURUSD correlated market figures all is well, everything behind the facade is falling appart.
In other words, expect to see the downward slope in the chart below to get more and more acute with each passing week as the European fiasco accelerates.
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Why would they buy EFSF bonds when they can buy bonds in re-emerging currencies tied to single fiscal policies of same in about 6 months?
The Chinese are not dumb, and of all things, they are known for being patient.
Because the big Panda is long about 1.1t of that superlicious Eurobamboo that will gap to the 30% to 40% recovery level, if they pulled the plug. It is pretty obvious that the socialist welfare states have spent all their money. They were funding itself with US MM funds (Northern Rock anyone?). And now that this market has dried up, all they have left is selling all their IG jewels, and hope it's enough to forstall nationalization. Can anyone say "Perastrioka":)
How much do they need to meet capital requirements? €3 trillion? Or was that the whole shebang; sovereigns included?
They are going to lever up the EFSF.
Which is the functional equivalent of getting a Rent-A-Center customer in default on their Plasma Screen $143 per week payment plan to sign another personal guarantee pledging that they "really, really, really are going to seriously catch up with their payments."
It should work.
/s
Sort of, but worse than that. It's like giving them another loan so they can make their $143 payment with borrowed money.
This is true.
They'd have to agree to double their payment and sign up for automatic deduction payment from their already overdrawn banking account before being allowed to sign the "cross my heart" repayment pledge.
this is why there is such a critter as:
double secret probation
I thought it was double super secret probation.
It's double penetration.
It's 'double top-secret probation.'
You forget ultra corrupt. The first known failure of a paper currency Ponzi scheme occurred in China during the 13th century.
I've said it for a long time...Sun Tzu, bitchez.
Timeline: 2011-01
SEC-DEF Gates (ret.) "The Debt is the biggest threat to US national security"
Timeline: 2011-08
Joint Cheif Mullen (current) "The Debt is the biggest threat to US national security"
http://www.defense.gov/news/newsarticle.aspx?id=65432
http://articles.cnn.com/2010-08-27/us/debt.security.mullen_1_pentagon-budget-national-debt-michael-mullen?_s=PM:US
So, why can we not have a War on Debt? Let the military occupy Wall St. for a while.
current and former members of the US military support Ron Paul more than all other candidates combined.
"Nearly all men can handle adversity, if you want to test a man's character, give him power."
wisefool
Well at 8%, it ain't gonna happen, Herman(Big Lead Herman), just pulled a whopper.........the most knowledgeable/capable man on the A Team (Besides Ron P), just THREW the RACE card.
Now, he has some issues I do not agree with that could have been worked out.(w/his fiscal plan)
NOT NOW. When your ACCUSED(not proven ) of something you do not LOSE it, and you do NOT throw the race card.
He just lost my vote, and likely many others, this PC shit,makes me earp.
Looks like I picked a good month to short Treasuries.
+1
right on right on !
Sun Tzu at high Noon~
Allow me to show you how the Algos read the china headline:
“there’s [no]strike] concrete plans [yet so it’s too early]strike] to [talk about]strike] further invest[ments]strike] in these tools,” Zhu Guangyao, Vice Finance Minister
ALGO BUY!
Clever!
The best way to read the china head lines is sideways
like they'er truth telling
"everything behind the facade is falling apart".
It's about time. Good night insolvent banks. Too-da-loo liar Benocide and Geithner.
Welcome to jail, Mr. Corzine!!!
In a week, the entire world could change as the zombie banks will finally meet their maker. Here's hoping we have arrived.
Teheran banks might meet their maker first
UK military steps up plans for Iran attack amid fresh nuclear fears
http://www.guardian.co.uk/world/2011/nov/02/uk-military-iran-attack-nuclear
Yup. They've got Weapons of Mass Destruction.
We're going to have to invade to .... Y'know, I've forgotten but I'm sure it was a jolly good reason.
Something about invading to protect our freedoms? Or something.
The phrase you're grasping for is "Protect Civilians".
Quote: http://www.guardian.co.uk/world/2011/nov/02/uk-military-iran-attack-nuclear Unquote
So, will US strike using collapse of Europe as cover, or will Europe collapse using US strike for cover? Good grief, it's keystone cops.
first, we freeze their assets
Then their shit backs up.
Warmers and Ex-lax in great demand.
Say what you want about Shari'a Law, but compared to our 'lawless' society.... at least you know where you stand with them, the Iranians, radical muslims, etc.
Maybe so, but I would have had a hand or something worse cut off by now, so I'll stick with our "lawless" society and maybe have a chance to be part of the change for the better.
in order to keep the euro ponzi scheme alive treasuries will get dumped. a lot of ppl are bullish on the dollar. i'm not so sure. my gold is looking pretty shiny today though
+ 1
Gold is now the default option. And some FRNs. Be armed to protect what you have.
Good one. I see what you did there.
Can ZH stop dealing in "reality" please. I am too busy ramping up my equity exposure as some people on CNBC just said that equities were undervalued.
As soon as the dollar drops in value your equities will rise. They are presently undervalued because the dollar is so over valued at present.
Can someone remind me again, what's the necessity of insolvent banks? What purpose do they serve in our economy?
Again, no banks = no loans = no business = no jobs. Congress gets re-elected on jobs, Jobs, JOBS! k?
Would be interested in hearing which banks are currently lending to small businesses.
This economy needs to purge the leeches and parasites: The BANKS. Until then,
"they terk err jerbs!"
Only small community banks lend to small business.
Maybe there's a missing piece... no savings = no investment = no banks = ...etc
-8? wtf, you guys are crazy.
-12 now, and climbing...
I'm down voting because all the other kids are doing it.
I guess thats where QE comes into the frame...
They hold many toxic assets which if released into the environment could be detrimental to human wealth.
no.. they don't. FED bought them all and paid 100% LTV.. 2 Trillion worth.. Banks get paid to "service" those "assets" on the FEDs Black Hole Books.
Which we'll never see.. F.U. FED!
How does anyone know? Neither the Fed nor the banks produce trustworthy books on which to base such an assessment. Maybe they're sound, maybe they aint. Their silence, however, speaks volumes
The Fed did not buy them ALL. 2 trillion is big but it's still just a drop in the bucket of the banks' exposure. The big banks are most definitely insolvent.
Well, they don't quite have them all yet. Not to mention, more toxic PIIGY futures to come.
insolvent banks make political donations, so they need to be kept around for political funding. First they provide the liquidity for the campaign, then they provide the liquidity for the mad scientist ideas of the political establishment. The insolvent banks are key to the preservation of power for the politically connected.
Resources are there to be consumed. Put in a fair tax code and we'd get something better than cicus de' olay.
What? China is not in a hurry to misallocate capital into worthless Euro debt? Huh?
How many "China to bailout Europe" headlines have we had now....six? Priced in, I'm sure.
Did you have to tell every one before the market closed? ha
Does this mean Sarkozy's Cadillac CTS for his Mistress is going to cost him more than he thought?
Bunga Bunga!
Chinese name for The Bernank is Hoo Flung Poo.
The Bernank did a mahvelous job at his presser today, as he summoned the spirit of Shakey 'Quivers' McShakester, a famous potato famine era central bankster from Ireland.
I am going to create one of those Calvin & Hobbes auto glass decals, but it will be of The Bernank pissing on Main Street & the (former) middle class.
I'd buy that! Do you take paper?
http://www.bloomberg.com/news/2011-11-02/eu-bank-recapitalization-plan-h...
Probably why...
Did somebody say reality?
Hot Searches (USA)
1. ricin 2. oakland strike 3. frank mccourt 4. ben gibbard 5. cl p 6. bieber baby 7. zooey deschanel 8. new gmail 9. san onofre 10. justin beiberTouche.
I'm... I'm reminded of the sadness.
You know that girl is lying she ain't got bieber's baby, she just need to quit it. Like Bieber needs that drama in his life. Shoot I'm still torn up about the Kardashian marriage, if they start up on Bieber I don't know what I'm gonna do. I have to get back to reality and watch my Tivo'd Housewives of Beverly Hills tonight. There's no recession on that show.
tell you what though I'd love to show that bibers girl friend, that gomez babe, what its like to be with a man who can last longer than 30 seconds...
I'm sure she'd be in ecstacy as I ejaculated right into her after a full minute and a half!
thank god i don't know what any of those things are...
then you must be a terrorist!
FT bullish rumour ...................5......................4.....................3
FT as in Full reTard
So I sell my government bond so I can buy EFSF bond later. Yeah sure.
What? The dumb bastards are selling U.S. treasuries and not their gold? Can it be?
Sweet and Sour Pork Bitchez! Mostly Sour!
and meantime, Bernanke actually just had the balls to say that fixed income investors shouldn't sweat negative real rates of return -- because they can invest in the stock market and see outsized returns due to ZIRP! Nothing says stable, prudent retirement income like 2-3% daily market swings.
He really should be hung.
Hung?
Why, to sully the reputation of a fine piece of rope?
Nah. Just throw him to the sharks. I doubt they mind feasting on vile human piles of excrement.
sharks deserve better!
Rage inducing. Hands literally balled into fists when he made that remark.
did he really say that?!?!
Marie Antoinette's "let them eat cake" pales in comparison!
10 year still at 2.00%, Fed can buy it all. we owe it to ourselves anyway...yeah right.
http://en.wikipedia.org/wiki/United_States_public_debt
News Flash....BlowHorn [CNBC]...some asshat in the always bull/bull debate known as the Closing Bell:
"I think we could have a Santa Clause rally." First instance this year of this tired cliche' being used.
Followed up by another asshat: "It doesn't take a genius to figure out that unemployment is going higher."
Okay then...makes perfect sense.
Called a job-less recovery. Get with it Cdad... sheesh
actually for the dow it does make sense. higher unemployment saves a lot of money, espeically if earned overseas so earnings should be swell. pity the domestic retailers like Macy's and Nordstroms, but Go Go Gadget Intel, Altria, CAT and MMM!
Fuck if I don't hate the CNBC bullshit-speak. "Santa Clause rally." That's as fucking stupid as dumbass sellside analysts who use the word "color" a billion times during conference calls when asking for information. Or "doves" for money-printing whores.
"Color"? "Santa Clause"? "Doves"? Shut the fuck up.
If Abby Joseph Cohen comes out of her troglodyte cave and sees the shadow of a bullish wedge, prepare for a Nikkei like equities winter.
The political morons keep printing more money diluting what little net worth the middle class has and the only people that do anything are the OWS 'ers. Fine the 1% may take all of our money but there are many more of us than them. They may pull the strings but ... you figure it out. When the "average guy" gets pissed enought then things will "happen".
Hey numbnuts, was Corzine one of the 99%?
He's a crook, a 1% deadbeat.
Good vocabulary. Do you kiss your mother with that mouth?
Ferris calling the Buzz Kill / Financial Times?
Financial times? Financial Times? Swap rates?
China may be #1 in manufacturing but the USA is still #1 in issuing EBT cards (food stamps). Nearly 46 million people (15% of the poplulation) are participating, up 8.4% during the past year, up 1.2% last month. If the economy grew 2.5% last quarter why did the number of EBT card holders continue to grow??? How many of "Occupy..." protesters are EBT cardholders??? When will the media ask?? Issing EBT cards is America's growth industry over the past 5 years.
SNAP and other Government (bread&circus) Electronic swag/gift cards are made in Guangdong Province, Zone #2, supervised by Bang Dae-Ho.
Are you serious! China finances their exports via the USD~! Chomp on this ya bull shitting scum bag http://www.foxnews.com/world/2011/10/05/russia-claims-to-have-detained-c...
And this http://www.mrc.org/projects/china/welcome.asp
China steals anything they can get their hands on! Period! Gun Powder is their contribution to " HUMANITY"!
My local pizza place has a "We gladly accept EBT cards" sticker on their window.
Large pepperoni with extra cheese and two liters of Pepsi please!
Nice circle jerk, eh? - government, corporations, a franchisee, and some huddled masses yearning to eat free.
Yes, JPM makes good money on those. Prelude to Solyent Green crackers.
The real question is what is the birthrate number of EBT holders over the past two years? More mouths to feed equal more benefits.
And when individual Europeans pile into US Tsys as a safe haven like they have done so many times in the past??
China will be selling to them?
Steve LIESman is busy servicing Ben Bernanke.
like how he had the first scripted question this afternoon like usual...
This market move is just minor short covering. Asset re-allocation for November.
WTF does that mean? We're getting 1%+ moves in both directions sometimes on alternating days. Sometimes on the SAME day.
There isn't asset allocation going anywhere. There's nothing but headlines and kneejerks in reaction thereto.
Sell 'em if you got 'em.
and short Ag...
We'll see what the market actually thinks tomorrow, no one is even bothering to trade right now. This can't be good for gold in the short term but maybe its at a bottom
<=== yep
<=== nope
question of order, comrade BiCheZ:
can the europeons short OUR Treasuries?
TBT, TMV
Any other questions?
<=== yep
<=== nope
Is John Corzine not only a member of the players club (senategovenor) but also a customer (MF Global)?
Seriously Tyler. Sneak in a "children of men" avatar in just for an old man. Pull my finger.
Ha, so the Bernanke carrot is still working. Did he say QE3? I think he may have said QE3, buy buy buy. What a joke.
The traders have no clue. It's like their store went out of business and they don't know where to shop. They all have money they need to spend or it just goes away, government money is a bitch.
Another retailer bites the dust, not a very big one but they had most of their stores in newly built shopping centers. Retail is just bleeding in reality, contrary to the BS reports put out by the greatest fictional authors in history, corporate accountants.
October looking great for jobs, all the headlines say. Duh, holiday season temps. All the jobs are temporary, pay $8 an hour, and are part time. BUT A JOB IS A JOB ON A PIECE OF BS REPORT. Rally on even if the average worker only clears $500 a month, that is enough for DOW 50k right?
Reality is a bitch. Wall Street and the media empire that supports it prefers Hollywood America. It's so much more fun when you can change the script as you go. You can write a guy as a millionare and it will happen. Just write Zuckerberg is a billionare and he can make you all rich, doesn't matter if it doesn't really exist. Life is just a fictional fantasy written by a group of men sitting in a hotel at some undisclosed place.
purchases of what? the efsf isn't even structured! insanity
I am dollar long! This asshat on CNBS is a Joke! How does he think those machines are fueled?
Over a week ago, before the great HOPIUM last Thursday. Clearly a long dollar approach is the best " mid term " idea.
Commodity prices are erroding Western Civilization!
In other world news:
In spite of an interview with a former Greek finance minister who said emphatically on CNBC that the referendum was 'dead' the Greek parliament just approved it....
So don't ever believe any cr@p uttered on the 'financial' channel for ibeciles.
PS I bet 100:1 hat the Greeks will vote out the entire bailout scam.
One would presume that they will also be selling their Gold to raise cash, no?
if they hire Gordon Brown as a consultant they will be.
You can't eat SNAP cards.
The Chinese are not going to gamble on the Euro at this stage. Maybe a few crumbs in exchange for meeting some of their demands. They do like to tease though.
"If you gave us Jefferies' rolodex, we could probably raise more for a bankrupt MF Global in ten minutes (kinda like what they did)."
You crack me up, TD! Real news was never so much fun, then again, this is the first place I ever experienced it.
LNKD taking a bath today as short sellers pile on.
Earnings Thursday and lockup ends on the 14th. I am sure insiders will be stepping all over one another to sell on the 15th.
Over the past 3 weeks China has made it very clear that they have no intention of bailing out Europe. Has anyone been listening?
Sure the : PROC, will bail out anyonyone ! For a Massive price! The ants just consume, and sell JUNK!
Look at all the PONZI IPO's!
News Flash...BlowHorn [CNBC]...Scott Wapner....
"China isn't slowing down." Ummmm....we JUST posted bad China manufacturing data. JUST!
Pull the license to broadcast, please.
Two words Mr. Wapner: Ginko Biloba
And according to CNBC the market is encouraged that the FED will act if needed and has more tools left. And tell me again how that has helped the REAL economy?
What is this "real" economy of which you speak?
The "market" only consists of large banks and the governments that depend on them all circle jerking each other, with CNBC having to up the porn material from time to time. Why do you think Erin left? She in no way could compete with Amanda and those luscious D's...
My favorite " watch that AUDUSD saying: No China slowdown"
Crash.Burn.Fail.
"it’s too early to talk about further investments in these tools"
So is he calling all Europeans "tools" or just the people running the EFSF?
Make sure to buy some Group On IPO on Friday.
I heard a rumor from the shoe shine boy that it's a sure thing.
And seconds after the bell, Bob Pisani reports that all aide to Greece shall be halted until after the referendum. Nice timing, Bob...and after five or six "I think the important thing is" from you, too. Did you think this was not important enough to release until the AH session?
Unreal!
Pull the BlowHorn's [CNBC] license to broadcast, please.
That's CNBSC's 'The Closing Smell' for ya'.
Look...we all know the score on the disgusting, bank whoring network...but today, literally EVERYONE OF THEM was talking out of their literal ass holes. This network needs to have its antenna pulled down. We have crossed over into a new level of public betrayal when they will hold news like this Greece debt story today until seconds after the bell so that criminal syndicate Wall Street bankers could convert their dumb ass positions prior to release.
What...does J. Dimon actually produce the programming now?
No aid for you!
Grab the pikes, storm the place and sharpen the guillotine.
The EURO crash will trigger Q3 and massive printing of USD for the race to the bottom. The US and Chinese won't tolerate a lower Euro in the 3-legged race.
Who gives a happy horse shite what piiisany says? Italy , Ireland , Portugal, Spain, France,... <<<< Greece is just the tip of the
ICEBERG! Europe is about to implode. Russia is even worse off! YES the worlds' # number 1 , exporter of crude.
On the verge of collapse!
Hi YC -- how and why is Russia on the verge of collapse? Thanks!
Minimum Clearance ,
My sentiments exactly, they have been RELENTLESS in attacking our Fiscal Woes.
And, they have been buying GOLD every chance they get.....................So, like you, I do not get it.
IF true, PEOPLE IN GLASS HOUSES,you know the rest.
I have come to an astute (IMHO) observation, the folks on ZH are the only SOLVENT body left.
(Of course along w/ the 1%er's).LOL
Did anyone see the Peter Schiff interview w/ the OCCUPY group?...........most folks he spoke to GOT it.
Except for one rabid Brother, who thought he should give more than the 70% taxes he now pays.
To which Peter retorted, if that were the case, WHY would I work for $0.30 on the dollar?,and have all these employees I have.
Answer, I wouldn't, I would stop at my MAX allowable take home for the year,and lay off all my employees.
Same thing the Canuck Dr's have been doing for YEARS.(Coming to America to put in the rest of the year.).
i think this was all expected and if someone stop to live in the accounting frauds...suddenly realise that this is a complete train wrack. Now its time for Germany and France to make things going, they will not wait for greece to decide their fate. They are proud nations and the their people would hang every politician who sold their savings and then their ''currency''for greek referendum. They would throw Greece away before referendum. I dont know how they want to ride the chaos after the derivatives blowout...but they dont know what they are doing no matter what they are doing. EURo is dead, nationalism on the rice, trade barries welcome.
what tools are left?
Lie, Obfuscate, complicate - why the fuk u gunna buy expensive EFSF CDO with wacky guarnatees and insurances BY THE SAME ENTITIES THAT CREATED TEH SITUATION?
Ransquawk : EU's Barroso says EU stands ready to provide IMF with more funds
Er... ok this time I lend and you borrow
Tyler, can we have a story and picture of:
Sarkozy + Gaddafi shaking hands.
Sarkozy + Hu Jintao shaking hands.
How much more do you think will be dumped for the curve to sharply fall? Trillions in bonds? I suspect the EU will be crank the printing press while the Bernanke stands with unloaded gun. Its the EUR that will become worthless.
After re-patriating the Euro's, what are they doing with them, parking them at ECB?
for the elderly, widows, orphans, and middle [endangered species] class - the fortunate ones get a credit spread with their burnt toast-
"Treasuries Crap Game"
ie. 'safe treasuries make you poorer'
http://www.forbes.com/forbes/2011/0912/investing-william-baldwin-retirem...
William Baldwin [9/12/11]
china's zhu says, "the europeans are not ready to capitulate yet so we will wait until they say oncle and give us all we want in exchange for buying greece, itlay, spain, portgugal and maybe ireland."
This is going to end badly, only 3 Billion thats it. The rate they are going they should be able to sell the whole Trillion leveraged or more by 2024.
Relax would ja? Doe's r just "Transitor - tory government" tings. Gessce. I'ts like bein in firist grade r somtin.
yea in the meatime did zerohedge take down the latest piece less than a couple hours ago on gold moving higher, whats the matter in hedge country? the thought of inflation and metals maybe moving significantly higher got somebody scared out of their naked shorts? or they plum ran out of peanut butter and had to lay down the pc and run to the grocery store.