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Cue Panic As Fed Resumes Liquidity Swap Lines, Lends $200 Million To Swiss National Bank, Most Since October 2010

Tyler Durden's picture




 

If yesterday's news broken by ZH that one bank was in dire need of US dollars and ended up borrowing $500 million from the ECB was enough to send the market down almost 5% today, then the follow up news that the FRBNY just reactivated FX swap lines with Europe will likely send ES limit down at tomorrow's open. The FRBNY has just announced that in the week ended August 17, it lent out $200 million to not the ECB, not the BOE, but the "most stable" of all banks: the SNB. This is the first use of the Fed's Swap Lines since March, and the most transacted under this "last ditch global bailout swap line" (see more on how the Fed bailed out the world using swap lines here) since October 2010. This event also gives us a hint that the European bank in question in dire need of cash is Swiss, which in turn means that it is not some usual PIIGS suspect, but one of the two "big ones." If true, this means that the European insolvency, liquidity and what have you crisis is about to take an exponential step function higher.

From the FRBNY:

And the history of FX swap usage:

 

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Thu, 08/18/2011 - 16:21 | 1574462 Sofa King
Sofa King's picture

Swiss banks...I thought that was the safe place to be, with their currency soaring and all?

Thu, 08/18/2011 - 16:27 | 1574500 Sudden Debt
Sudden Debt's picture

I'm actually VERY surprised to that one also.

I wonder where the loss cam from. Not a bank run. so....

 

Thu, 08/18/2011 - 16:32 | 1574540 I think I need ...
I think I need to buy a gun's picture

cue end of physical gold and first parabolic move

Thu, 08/18/2011 - 16:41 | 1574586 Pladizow
Pladizow's picture

Dont know much about international banking but....

Could the SNB be a middle man to hide the swaps final destination?

Thu, 08/18/2011 - 16:56 | 1574669 silvertrain
silvertrain's picture

yeah..the fx market intervention

Thu, 08/18/2011 - 17:26 | 1574815 akenathon
akenathon's picture

Ouppss this might be the end of the Dollar fall...

I am wondering that if with all the US dollars shorted around the world the next real crisis is not a gigantic short-covering into the USD as when markets start to realize that even with an S&P dowgrade of US, investors are still pourinig money into US Treasuries (unlike any other country in the world) at a crazy speed.

It would solve quite a lot of problems

1) Commodites to plummet (except for Gold and Silver where a sell-off would provide a big opportunity) which in turn would help the US and the entire world with lower energy prices and those likely to pay for this mess are likely to be once again OPEC countries as been in the 80's

2) Solve some of the current US to Chinese issues

3) Repatriation of US dollars into the US

etc......

The big thing is that if one of the two Swiss Banks were to fail, all Switzerland would be BK and as such CDS on the country would skyrocket as well - The same could be said for Japan.

The best trade might be to be long Gold in CHF and JPY at current levels as you would profit from a fall of the CHF and the JPY but have Gold upside

Thu, 08/18/2011 - 17:39 | 1574880 LowProfile
LowProfile's picture

My thoughts exactly.

1.  USD rip your face off short cover rally/deflation scare.

2. Commodities/stock plummet.

3. UST buying in earnest.

4. Printing presses go on MAXIMUM OVERDRIVE.

5. Dollars come home to roost.

6. New gold-reference monetary system born.

Thu, 08/18/2011 - 18:49 | 1575078 spiral_eyes
spiral_eyes's picture

i doubt it will be as fast. If there's one thing that central planning is good at it's making shit run really retarded 'til the wheels come off. they haven't even started directly monetising debt yet (which even paul krugman admits would stoke hyperinflation), and it will take months at step 4, and months at step 5 — of china and the arabs buying up gold and productive assets to kill their dollar pile — for step 6 to happen.

i do think you have your sequence pretty much right.

Thu, 08/18/2011 - 18:51 | 1575085 scatterbrains
scatterbrains's picture

Do these 6 steps occur in six minute, hours, days, weeks, months or yeas ?

Thu, 08/18/2011 - 19:11 | 1575131 Kali
Kali's picture

Yes

Fri, 08/19/2011 - 03:48 | 1576123 BaBaBouy
BaBaBouy's picture

 

3:47 ...............  Now Printing 1866.

 

KITCO is now out 1 ozs and 10 ozs Bars according to thier site.

 

Looks like public sheer (but silent) panic to buy is just starting.

 

My target still 2 ozs GOLD gets you an nice new F150.

 

Eat that SACKS ...

Fri, 08/19/2011 - 05:43 | 1576231 KrugerrandFan
KrugerrandFan's picture

Been buying Krugerrands for the last 2 years (saw the ZH light) but was told last week they had run out.  Was put on a list to get them as they come in!  That was the first time I've had to wait for them.  Says something I think.

Thu, 08/18/2011 - 20:42 | 1575340 Central Bankster
Central Bankster's picture

Exactly, panic first, then crazy monetization later.  If they really want to save the TBTFs they need to monetize IMMEDIATELY.  European TARPs, backstop all the banks for any losses etc.  They will do it eventually, probably after a few fail-- very Lehmanesque.

Thu, 08/18/2011 - 20:16 | 1575272 Syrin
Syrin's picture

akenathon, forgive my ignorance.   I am not a finance person by trade.   However, I do follow this stuff with a fair degree of regularity, but my depth of knowledge is still shallow compared to those here.  Your theory intrigues me, but I am a bit confused.

 

What do you mean by " gigantic short-covering into the USD"?

 

Wouldn't repatriation of US dollars into the US cause mass hyperinflation?  

 

Thanks in advance.

Fri, 08/19/2011 - 01:36 | 1575917 akenathon
akenathon's picture

Syrin,

Money was created for the last three years, which in turns has been flowing into the system and fuelled a bubble into the short dollard trade as it has been leveraged 100 of times...

Now if part of this money (as per BSN trade) is asked back, the consequences on the USD is that you are likely to assist at many financial institutions running for USD at the same time, thus the USD short-covering.

On the monetary consequences I think it would serve the US by floowding the world with even more dollars but at the same time it would completely debase all other currencies (including the swiss franc and the japanese yen) and as such the entire world would be pegged to the dollar.

Don't forget that 80% of the emerging markets are already in dollars and once the remaining EU mouribound currencies are gone, the likely result is to have a world currency which is the US dollar where its intrinsic value is almost zero...

The people would have no choice but to accept those dollars and if everyone were to exchange those dollars for hard assets, we could assist at a $10'000 in Gold unless the FED in conjunction (Bretton Woods II ????) with world's central banks peg the USD to Gold.

Thu, 08/18/2011 - 20:31 | 1575303 CrashisOptimistic
CrashisOptimistic's picture

You do realize the Brent spread is now north of $24?

In all history it was about minus 50 cents until this year.

All fall in the price of WTI does not define what the world pays for oil.  It doesn't even define what the US pays for oil.  It's an obsolete parameter because so little WTI comes out of the ground anymore.

Thu, 08/18/2011 - 20:37 | 1575317 Flakmeister
Flakmeister's picture

I have been trying to make heads or tails out of this for a while and I am at a loss... BTW, it reached $24.97 today at one point. The spread can be arbed away for about $7, the cost of transport by rail car to the LOOP.

Is it massive short positions with the IBs at the behest of the Treasury to drive down the price and to be covered by the SPR releases?

Is it the beginning of a decoupling of the US dollar and oil?? Brent is world price, WTI is US internal price. Damned if I know.... 

Thu, 08/18/2011 - 20:55 | 1575365 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

JPM et al are shorting oil and they are using the SPR release they aquired as the location.  The are shorting WTI contracts, because even though America produces squat for oil, the dollar vs WTI is still the international reference point concerning both.  This is similar to how silver is still treading water, when we all know demand has increased much more than the price action.  JPM shorts real assets to keep the dollar above water, because the dollar trades inversely to real assets.  What else is new.....

Fri, 08/19/2011 - 08:00 | 1576436 Flakmeister
Flakmeister's picture

Ok... but to what end? The price at the pump reflects Brent. Do they really think the sheeple are that stupid?

Looks like the spread has blown out to $26.30....

If this is the true spread, VLO should have insane earnings, last I checked they don't. Something is very amiss. 

Thu, 08/18/2011 - 17:26 | 1574816 akenathon
akenathon's picture

Ouppss this might be the end of the Dollar fall...

I am wondering that if with all the US dollars shorted around the world the next real crisis is not a gigantic short-covering into the USD as when markets start to realize that even with an S&P dowgrade of US, investors are still pourinig money into US Treasuries (unlike any other country in the world) at a crazy speed.

It would solve quite a lot of problems

1) Commodites to plummet (except for Gold and Silver where a sell-off would provide a big opportunity) which in turn would help the US and the entire world with lower energy prices and those likely to pay for this mess are likely to be once again OPEC countries as been in the 80's

2) Solve some of the current US to Chinese issues

3) Repatriation of US dollars into the US

etc......

The big thing is that if one of the two Swiss Banks were to fail, all Switzerland would be BK and as such CDS on the country would skyrocket as well - The same could be said for Japan.

The best trade might be to be long Gold in CHF and JPY at current levels as you would profit from a fall of the CHF and the JPY but have Gold upside

Thu, 08/18/2011 - 16:59 | 1574681 goldinpenguin
goldinpenguin's picture

at least one of the big swiss banks was gobbling up Fedbucks during the lehman era meltdown and the Bloomberg FOIL lawsuit forced that disclosure, maybe the Fed has gotten more devious and will just flow the bailout funds thru SNB to avoid FOIL law

Thu, 08/18/2011 - 17:14 | 1574758 Pure Evil
Pure Evil's picture

Why would they want to swap Swiss Franks for toliet paper?

Thu, 08/18/2011 - 18:49 | 1575077 1984
1984's picture

Because a lot of their clients took big dumps?

Thu, 08/18/2011 - 19:02 | 1575113 thatthingcanfly
thatthingcanfly's picture

da-dum, tisssss. 

Thu, 08/18/2011 - 19:18 | 1575150 Strider52
Strider52's picture

All of your Swiss Bikini Team are now belong to us.

Thu, 08/18/2011 - 21:14 | 1575344 Central Bankster
Central Bankster's picture

Damn all you titty avatars!  I try to read this stuff at work and instead, I find myself looking over my shoulder for co workers.

Fri, 08/19/2011 - 00:58 | 1575834 Little John
Little John's picture

  If you're really a central bankster you should, perhaps, be looking over you shoulder for something a bit more alarming.  The rodeo is near.

Fri, 08/19/2011 - 01:00 | 1575840 Little John
Little John's picture

  If you're really a central bankster you should, perhaps, be looking over you shoulder for something a bit more alarming.  The rodeo is near.

Fri, 08/19/2011 - 07:25 | 1576335 StychoKiller
StychoKiller's picture

Are we talkin' footlong corndogs here?

Thu, 08/18/2011 - 16:36 | 1574562 Bicycle Repairman
Bicycle Repairman's picture

Weren't the Swiss big financers of the real estate bubble in eastern Europe?  That can't be good.

Thu, 08/18/2011 - 16:49 | 1574628 CH1
CH1's picture

If memory serves, they were... at least one of the big ones.

A pigmenationally gifted swan alert?

Thu, 08/18/2011 - 18:17 | 1574994 mkkby
mkkby's picture

Did I hear my name?

Thu, 08/18/2011 - 19:17 | 1575148 Ratscam
Ratscam's picture

just came back from a dinner with an MD from CS who got 3 new bosses within 3 months, anymore questions? good bye Swiss major banks. same shit happening at UBS.
told them to cover their vested shares by writing calls and buying puts, they all laughed at me. hahaha the last laugh is the best!
go long gold and silver, the real money, not currency!

Thu, 08/18/2011 - 17:13 | 1574752 Flakmeister
Flakmeister's picture

Massive exposure to Poland and Hungary...

Thu, 08/18/2011 - 18:18 | 1574998 trav7777
trav7777's picture

75% of world debt is denominated in dollars.  40 years of BW has made the dollar like herpes.  You just have to live with it and the inconveniences and pain of occasional outbreaks.

Thu, 08/18/2011 - 16:53 | 1574612 slaughterer
slaughterer's picture

The fact that the SNB used the Fed facility and not one provided by the ECB should be worrying.  It shows how strapped the ECB really is.  Whether the SNB was paid to stand in for another bank (cough cough Soc Gen or Dexia) can only be revealed through extensive forensics.  The Swiss used to be able to protect all inquiry into their FX management, but this time, since it came through the newly transparent, user-friendly Fed, they are caught with the tide going out...  Expected drop in European indices tomorrow: approx. 2%.  BTW, every German banker I talked to today was extremely grumpy.  Guess they were not prepared for the DAX double bottom.     

Thu, 08/18/2011 - 16:56 | 1574666 Spitzer
Spitzer's picture

No.

It shows how the ECB is set on their only mandate, price stability.

Thu, 08/18/2011 - 17:09 | 1574739 slaughterer
slaughterer's picture

The ECB has about 3 different unofficial mandates right now, liquidity being one of them.    

Thu, 08/18/2011 - 17:09 | 1574740 THE DORK OF CORK
THE DORK OF CORK's picture

Bollox

Thu, 08/18/2011 - 17:17 | 1574771 slaughterer
slaughterer's picture

"Price stability" has a wide variety of interpretations for Mr.  finger-at-the-bazooka-before-I-retire Trichet.  ;-)

Thu, 08/18/2011 - 17:03 | 1574706 Mike2756
Mike2756's picture

No kidding. WTF! Is the dollar backstopping everyone on the planet?

Thu, 08/18/2011 - 17:13 | 1574755 New_Meat
New_Meat's picture

Well, for a while, don't cha' know.

Thu, 08/18/2011 - 17:18 | 1574773 Iam_Silverman
Iam_Silverman's picture

"Is the dollar backstopping everyone on the planet?"

Not surprising since the USD is the Global Reserve Currency (for now).

Thu, 08/18/2011 - 17:18 | 1574777 Clampit
Clampit's picture

Not everyone, just countries with government funded by central bank operations.

Thu, 08/18/2011 - 18:50 | 1575080 Kali
Kali's picture

+1823

Fri, 08/19/2011 - 07:29 | 1576340 StychoKiller
StychoKiller's picture

All it takes is one wild pitch to get by the catcher for the run(s) to score!  GAME OVER!

Thu, 08/18/2011 - 17:04 | 1574714 Greater Fool
Greater Fool's picture

ECB has its hands full with dollar funding needs of Euro-area banks.

This surprises me a bit. If SNB is intervening by pumping out CHF they would need to buy up at least some USD in addition to EUR to prevent their intervention from driving EUR up excessively against other majors in the process. Anyone who understands central bank FX interventions better than I do want to explain?

Thu, 08/18/2011 - 17:08 | 1574737 A Man without Q...
A Man without Qualities's picture

Good call - the SNB may very be acting as a conduit to a European bank - in theory, they shouldn't be short of capital.  Or maybe they don't want to have BofA as a counterparty?

Thu, 08/18/2011 - 18:00 | 1574941 icanhazapple
icanhazapple's picture

lulz, what is with the set of tits for avatars? am I late to the gang bang?

Thu, 08/18/2011 - 18:51 | 1575083 RockyRacoon
RockyRacoon's picture

Sloppy 750ths I'm afraid.

Thu, 08/18/2011 - 19:47 | 1575211 knukles
knukles's picture

Does that make him "holeier than thou"?

Thu, 08/18/2011 - 16:49 | 1574634 speconomist
speconomist's picture

With all the billions in deposits they are getting doesn't make much sense.

Thu, 08/18/2011 - 16:57 | 1574671 espirit
espirit's picture

200 Mil seems like chump change, doesn't it?

Thu, 08/18/2011 - 16:51 | 1574638 kengland
kengland's picture

When should we expect to see a blow out in LIBOR and TED?

Thu, 08/18/2011 - 17:31 | 1574850 johngaltfla
johngaltfla's picture

So we loaned the SNB $200 million so they could buy the UUP or short the UDN?

Thu, 08/18/2011 - 18:53 | 1575088 RockyRacoon
RockyRacoon's picture

The "financial media" will not parse the situation as well as it is being done here.   It will look upon the face value of the event and ACT accordingly.   Hence, the prediction of "...ES limit down at tomorrow's open."   Just go with the flow.

Thu, 08/18/2011 - 20:03 | 1575242 johngaltfla
johngaltfla's picture

Nah, it's OPEX. I'm just going to take a precious metal bath and invite nekkid women over to join me.

(Don't tell my wife)

 

Fri, 08/19/2011 - 07:31 | 1576349 StychoKiller
StychoKiller's picture

2 hours before the open:  Dow futures down 100 to 200 right now.

Thu, 08/18/2011 - 19:41 | 1575198 legal eagle
legal eagle's picture

Swiss or American, it is all about the bankers.  They could give a shit about their account holders.

Thu, 08/18/2011 - 20:29 | 1575294 tbone654
tbone654's picture

That sound you hear is the toilet flushing...  I don't think you can stop that, once it's begun...  especially if it's one of the really big toilets...

And yes, the big toilets can flush too...  but when they go, they all go...

Thu, 08/18/2011 - 16:22 | 1574465 Dr. Richard Head
Dr. Richard Head's picture

Que the mother black swan.

Thu, 08/18/2011 - 16:37 | 1574566 Sancho Ponzi
Sancho Ponzi's picture

OT:

I'd like to see a ZH poll where we can vote for our all-time favorite troll. Anyone?

Thu, 08/18/2011 - 16:57 | 1574587 Dr. Richard Head
Dr. Richard Head's picture

On Topic: Do you believe me to be a troll?

Just an FYI - I hold no paper and only mortgage debt.  Nothing but beans, bullets, and bullion.  I come here for news that I will not see or read about anywhere else.  I am not a trader, nor do I wish to be.  The comments I make allow me to relieve my deep despair for the farce of a paper world we live in.  This place keeps me sane.

Thu, 08/18/2011 - 17:00 | 1574686 Sancho Ponzi
Sancho Ponzi's picture

On Topic: You typically don't reply quickly to a post, your avatar isn't a flag or some animated face that looks like it was stolen off of Yahoo, and you don't post solely to agitate. So my opinion is 'no'. 

 

Thu, 08/18/2011 - 17:13 | 1574749 slaughterer
slaughterer's picture

On topic: what about me?  look at my tits.  Schooling: Robotrader trained me before he left to work for Doug Kass.   Hint: I am here to seduce and mislead you all.  Conclusion: Slaughterer = troll.   He only has 20,000 ounces of physical silver.  

Thu, 08/18/2011 - 17:16 | 1574766 Flakmeister
Flakmeister's picture

Not a troll... just someone who probably wasn't breastfed and as a result has deep issues that he can only articulate with an avatar...

Thu, 08/18/2011 - 20:02 | 1575241 homme
homme's picture

+36 DD

Thu, 08/18/2011 - 17:22 | 1574790 Iam_Silverman
Iam_Silverman's picture

"look at my tits"

Now, if that rack was hung on RobotTraders Mom, you'd have the perfect woman!

Thu, 08/18/2011 - 17:31 | 1574825 fuu
fuu's picture

I would call you a troll for the tits. All we need is for this site to get blocked as adult because of the images.

Otherwise no I like reading your comments.

Thu, 08/18/2011 - 18:34 | 1575043 Strider52
Strider52's picture

Not huge, but perky little devils.

Thu, 08/18/2011 - 20:03 | 1575243 OneEyedJack
OneEyedJack's picture

Yeah

 I have small children who like to see what Dad is doing.

While you do have every right to your Avatar, Your choice has the result of me having to limit my time here.

I won't complain, as I said it is your right.

but, do you understand how it affects others?

 

Fri, 08/19/2011 - 00:45 | 1575808 LongBallsShortBrains
LongBallsShortBrains's picture

Have you tried unchecking "display images" in your browser?

Fri, 08/19/2011 - 04:30 | 1576173 saulysw
saulysw's picture

Oh, nuts, that's all we need.

Thu, 08/18/2011 - 17:17 | 1574768 New_Meat
New_Meat's picture

Sancho, Dr. Richard Head isn't a troll.  A dick-head, ya, he'd give u that one ;-)

Bur really, we've been around here long enough that your suggestion would fall into the "molden-oldies" category, imho.

- Ned

Thu, 08/18/2011 - 17:19 | 1574779 slaughterer
slaughterer's picture

No, I want to be the greatest troll of ZH.  After Harry Wanger, after Leo, after Robo-tard, after "it only costs $5 to dig it out of the ground..."  

Thu, 08/18/2011 - 17:25 | 1574808 Young Buckethead
Young Buckethead's picture

It would be hard to beat Harry on that one. Or is it Hairy?

Thu, 08/18/2011 - 20:07 | 1575250 Almost Solvent
Almost Solvent's picture

Master Bates is my favorite golden oldie troll

Fri, 08/19/2011 - 02:37 | 1576031 MsCreant
MsCreant's picture

AKA Johnny Bravo!

Thu, 08/18/2011 - 17:28 | 1574828 Sancho Ponzi
Sancho Ponzi's picture

'it only costs $5 to dig it out of the ground'

That phrase still makes me laugh every time, as do the deer in the headlights and O pics.

Thu, 08/18/2011 - 17:32 | 1574853 Flakmeister
Flakmeister's picture

In the spirit of the Canada thread "The Bachmann Corn-Dog Overdrive" photo will become iconic... 

Thu, 08/18/2011 - 19:14 | 1575140 Spastica Rex
Spastica Rex's picture

Did you make that up? Fucking brilliant!

Thu, 08/18/2011 - 19:22 | 1575162 NotApplicable
NotApplicable's picture

Takin' care of business?

Thu, 08/18/2011 - 19:50 | 1575219 knukles
knukles's picture

I wanna see her stuff six of 'em at once.

Fri, 08/19/2011 - 01:18 | 1575871 redpill
redpill's picture

Thats for paying subscribers only. But if you sign up, you get to see Randy Travis eat six too.

Thu, 08/18/2011 - 19:59 | 1575237 Flakmeister
Flakmeister's picture

SR, I humbly must take credit....

Thu, 08/18/2011 - 18:31 | 1575035 New_Meat
New_Meat's picture

slaughterer:  If you want to get into training to be the "greatest" then you have a long slog ahead of you.  But, well I'll offer to, ... er ... <oh yeah> ya, "coach" u on how to ... er ...

- Ned

Thu, 08/18/2011 - 20:57 | 1575371 Flakmeister
Flakmeister's picture

Slaughterer.... Leo was many things but he was'nt a troll....not at least by the standards of the Hedge

Fri, 08/19/2011 - 07:35 | 1576364 StychoKiller
StychoKiller's picture

Leo is/was deluded in a very different manner than the typical troll, fer sure!

Thu, 08/18/2011 - 16:22 | 1574468 max2205
max2205's picture

$200 milion....seems like not a lot TD...why mention it?

Thu, 08/18/2011 - 16:25 | 1574486 Azannoth
Azannoth's picture

Central Banks have infinite leaverage, they can x1000 this is they want

Thu, 08/18/2011 - 16:27 | 1574507 Whizbang
Whizbang's picture

If that's the case why even bother with the $200m? Why not just give $2? There's something else happening here. I don't see this as a big deal at all.

Thu, 08/18/2011 - 16:25 | 1574492 treemagnet
treemagnet's picture

Because its customary to first ask for a glass of water before you order.

Thu, 08/18/2011 - 16:38 | 1574567 andybev01
andybev01's picture

Poetry. Pure poetry.

Thu, 08/18/2011 - 16:52 | 1574646 IBelieveInMagic
IBelieveInMagic's picture

Traditions are traditions!

Thu, 08/18/2011 - 16:26 | 1574495 Tyler Durden
Tyler Durden's picture

Because unlike in 2008, when the ECB was completely unprepared to deal with any of this, now the ECB is supposed to be handle such liquidity issues on its own. It doesn't matter if $1 was transacted or $1 quadrillion: its mere usage means there is something very much broken in European liquidity conduits.

Thu, 08/18/2011 - 16:30 | 1574523 Sudden Debt
Sudden Debt's picture

But Swiss? Wasn't everybody pumping their money in those banks?

How can this be?

 

Thu, 08/18/2011 - 16:33 | 1574547 nonclaim
nonclaim's picture

Whoever needed it needed *dollars* and could not source it in the open markets. I think that is the essence of it.

Thu, 08/18/2011 - 16:45 | 1574609 Bonesetter Brown
Bonesetter Brown's picture

Paging Bruce K.

We need an update to the Swiss-Central-Bank-bluffs-on-the-peg post.

Thu, 08/18/2011 - 16:53 | 1574652 SwingForce
SwingForce's picture

There is not enuf gold in the world, nor Swiss Fracs in the world, for everyone to take refuge in. So why not buy Con Edison stock? Pays over 4%, made a new 52 week high yesterday, down only 0.24% today.

Thu, 08/18/2011 - 17:05 | 1574719 Citxmech
Citxmech's picture

I wouldn't because I don't think it will be too long before ConEd will need to start cutting off a substantial segment of its customer base for lack of payment.

 

Thu, 08/18/2011 - 19:38 | 1575195 Esso
Esso's picture

We're coming up to that charming & delightful time of year when the utility companies send out their cutoff thugs, en masse, to shut people off before the law prevents them from doing so. Most localities don't allow them to cut folks off from late Fall through Spring to prevent people from freezing to death in their homes.

On the flip side, there's ordinances that make it illegal to occupy a dwelling that doesn't have a minimum of water and electrical service.

So, what happens is that the utility cuts a person off, notifies the "authorities" then they show up and remove the occupants by force.

See it every year. This year oughtta be a doozie. The vacancy rate in my neighborhood is over 50% so far. Pretty soon, I'm gonna be sitting here alone.

Thu, 08/18/2011 - 17:07 | 1574733 Young Buckethead
Young Buckethead's picture

How many 40 year old nuke plants do they own that were only designed to run 20? How many run MOX?

You're investing in a company that will eventually (sooner rather than later) kill millions of people.

Long non-specific eugenics, Bitchez!

Thu, 08/18/2011 - 17:22 | 1574788 New_Meat
New_Meat's picture

Well, a) they don't own any nuclear plants any more, b) almost all (and all current) were designed for 40 years.  NO MOX yet (years away).

I'd say that, since you don't know above, you ought to look towards the southern end of Manhattan and surrounding NJ and CT areas for the organizations that will be the root cause of  your scenario.

- Ned

Thu, 08/18/2011 - 17:54 | 1574890 Young Buckethead
Young Buckethead's picture

Michael Mariotte, executive director and the chief spokesperson for the Nuclear Information and Resource Service, said: “Nearly one out of five – 23 – of the operating reactors in the U.S. use the GE Mark I design. All but two of these began commercial operation between 1971 and 1976. The U.S. Nuclear Regulatory Commission has approved 20-year license extensions for 18 of these aging GE Mark I reactors. Two applications are currently under review; three reactors have not filed for license renewal. When the reactor designs are the same, and the reactor’s ages are the same, comparisons seem more than appropriate – indeed, it would be irresponsible not to understand what lessons may be learned from the Japanese experience that would apply to so many aging U.S. reactors that are still in use.”

Tom Clements, Southeastern nuclear campaign coordinator, Friends of the Earth, said:  “In the U.S., the Department of Energy is considering use of MOX fuel in the Tennessee Valley Authority’s Browns Ferry reactors, of the same aging Mark I boiling water reactor design as Fukushima Unit 3.  Analysis by the Tennessee Valley Authority of unsafe MOX fuel made from surplus weapons plutonium must be halted and the $850 million request related to this in President Obama’s FY2012 must be rejected.  The cost of the MOX plant now under construction at the Department of Energy’s Savannah River Site has skyrocketed from $1.4 billion in FY 2004 to $4.9 billion in FY 2009 and has become a program driven by special interests that profit from it.”

http://coalgeology.com/nuclear-threat-u-s-implications-of-the-japanese-n...

a)Seems true.

b)Only the older GE Mark I reactors were designed for 20 years.

c)Other than a Letter of Intent with the TVA to use MOX in their Harpers Ferry facility, there does not seem to be any commercial use of MOX in the US.

Some good news. Maybe it is a good investment, considering they don't have any nuke exposure, unlike like most other large electricity suppliers. If there is massive consolidation in the electricity industry, they may come out on top. Once people stop paying their bills, the Gov't. will appoint someone TBTF, and gather all the losers under their umbrella.

Thu, 08/18/2011 - 20:23 | 1575278 Element
Element's picture

"...The cost of the MOX plant now under construction at the Department of Energy’s Savannah River Site has skyrocketed from $1.4 billion in FY 2004 to $4.9 billion in FY 2009 and has become a program driven by special interests that profit from it." ...”

 

Unbelievable! Forget the fuku incident, the e-CON-omics of MOX just killed this, stone dead.

(I guess those Chinese solars just became an 'economic' energy-resource-tech then? ... )

Thu, 08/18/2011 - 21:40 | 1575542 New_Meat
New_Meat's picture

... er ... dude:

" ... c)Other than a Letter of Intent with the TVA to use MOX in their Harpers Ferry facility, there does not seem to be any commercial use of MOX in the US. ..."

have another hit.

TVA doesn't have a Harpers Ferry facility.  That's kinda' north towards them Yankeez.

- Ned

{OK, just talked to Madame and she sentences you to 8 weeks of self-criticism.  Enjoy.}

 

 

Fri, 08/19/2011 - 02:14 | 1575995 Oh regional Indian
Oh regional Indian's picture

There is NO such thing as good nuclear energy. There is no such thing as  a safe Nuclear Plant.

The truth about nuclear energy and nuclear bombs, what happened over Hiroshima/Nagasake etc., would stun the world.

http://aadivaahan.wordpress.com/2011/06/17/nuclear-american-cross-other-thoughts/

 

But this game is not about power or investments or any of these mundane things that we are kept dis-tracted by any longer. It's about, Survival or Thrival?

ORI

Thu, 08/18/2011 - 17:12 | 1574744 sampo
sampo's picture

Actually there is enuf gold in the world. Silver? I wouldn't bet.

Thu, 08/18/2011 - 18:02 | 1574948 SwingForce
SwingForce's picture

There's 16x more silver than gold, and why does EGG have 2 g's? And why doesn't your phone say HELLO? automatically? Have you ever thought about all the extra words you say in a day or type? Yes, enuf's enuf.

Thu, 08/18/2011 - 18:06 | 1574969 Flakmeister
Flakmeister's picture

16x, in the ground maybe, not above ground, not by a long shot... Production ratio is 9 to 1

Fri, 08/19/2011 - 02:23 | 1575999 Oh regional Indian
Oh regional Indian's picture

Flak, the above ground, three olympic sized pool theory is just so much bullshit. They just opened the vaults of an ancient temple in southern india after a period of 500-700 years. Over 3 tonnes of Gold (in bar and coin and other bulion form) was found. That does not count giant statues made of solid gold.

IT is the big lie about gold. It's scarcity. Yes it is scarce and magical and thus it's desirability, but not as scarce as they'd like us to believe.

ORI

http://aadivaahan.wordpress.com/2010/10/18/an-opportunity-and-a-golden-warning/

Fri, 08/19/2011 - 09:18 | 1576727 Flakmeister
Flakmeister's picture

Scarcity is relative.... I was commenting on the above ground Au/Ag ratio.

Now check this

http://www.goldsheetlinks.com/production2.htm

Pre SA, average production was ~ 0.2 tons pa, I'll give you 3000 years of that, or 600 tonnes. Post 1900 production is ~150,0000 tons....

This works out to be ~ 7 x10^9 cm^3 or  7000 cubic meters...

Thu, 08/18/2011 - 19:01 | 1575105 mayhem_korner
mayhem_korner's picture

SwingForce

Link for you to Melvin Dewey's spelling reformers:

http://www.childrenofthecode.org/code-history/dewey.htm

About the English language Dewey writes:
"Speling Skolars agree that we hav the most unsyentifik, unskolarli, illojikal & wasteful speling ani languaj ever ataind."

Thu, 08/18/2011 - 20:40 | 1575225 knukles
knukles's picture

Mae West Syndrome:
If some is good
And plenty is better
Then way the fuck too much is just about right. 

Fri, 08/19/2011 - 01:21 | 1575883 redpill
redpill's picture

Still, but only $200M? Looks like a dress rehearsal for something bigger. Maybe they did this one to see if anyone noticed.

Fri, 08/19/2011 - 07:38 | 1576370 StychoKiller
StychoKiller's picture

All right, who's bogartin' the FRNs?  Perhaps the deflation of the US Currency is worse than The Bernank knows!

Thu, 08/18/2011 - 17:01 | 1574692 Stoploss
Stoploss's picture

I was thinking that maybe they had to use whatever 'assets' they had to hold the chf down.

Definitely a holy fucking shit moment, cue deer in headlights photo for me, as i am sure that was the look on my face when i saw this.

Thu, 08/18/2011 - 16:38 | 1574576 kaa1016
kaa1016's picture

These guys must have been short their own currency.

Thu, 08/18/2011 - 17:02 | 1574699 Thorlyx
Thorlyx's picture

If so, congratulations. They are genius......

Thu, 08/18/2011 - 17:30 | 1574842 Alea Iactaest
Alea Iactaest's picture

Or is this how the Fed buys CHF?

Thu, 08/18/2011 - 18:05 | 1574961 SwingForce
SwingForce's picture

Technically that's counterfeiting, think about it, creating more currency.... SWISS doesn't need U$D you're being HAD, its some kind of diversion, you took your eye off the ball. What's really going on out there? (They want our Dollars...)

Thu, 08/18/2011 - 17:11 | 1574742 max2205
max2205's picture

Thanks TD. Like it is bad to borrow from the fed window. Gottcha

Thu, 08/18/2011 - 17:32 | 1574855 Iam_Silverman
Iam_Silverman's picture

"Like it is bad to borrow from the fed window."

No, not if you're a US banking institution.  Maybe you missed the part where he mentioned that is was the central bank of Switzerland?  It seems odd for one country to need to borrow from another country - doesn't it?  Especially of they are using the loan to intervene in their own currency appreciation - by purchasing the currency of the loaning institution?

It may just be smoke for funneling resources to a black op.

Thu, 08/18/2011 - 17:56 | 1574926 Young Buckethead
Young Buckethead's picture

Another chopper going down?

Fri, 08/19/2011 - 02:20 | 1576002 Oh regional Indian
Oh regional Indian's picture

Was it the old 1-2 followed by the Chin-hook?

ORI

Thu, 08/18/2011 - 20:03 | 1575240 prophet
prophet's picture

After re-reading the 2009 post referenced above I'll be amending my "G-20. BINGO. The Great Intervention" (GI not QE) number from $5T, per your assertion that $6.5T was not enough, to $11T. 

Thu, 08/18/2011 - 20:33 | 1575306 CrashisOptimistic
CrashisOptimistic's picture

Y'all did notice the CAC40 down 5.5% today?  Prohibiting short sales is just so God damned effective.

Thu, 08/18/2011 - 20:42 | 1575338 Everybodys All ...
Everybodys All American's picture

You've got to think the same bank got the 500 that is getting the 200 mil. My suspicions tell me it's an IB with a very low tier one capital ratio.

Fri, 08/19/2011 - 02:42 | 1576037 TruthInSunshine
TruthInSunshine's picture

The European Union experiment is dead. It died, officially, on Tuesday (or that's when the proclamation and subsequent eulogy took place).

All that remains is the necessary delay in the winding up to allow an attempt at some sort of less-than-total-chaos transition into something other.

The basic math killing it was simple:  Germany is unable to subsidize the rest of the, nearly without exception, broke (many who are bankrupt) members of the EU.  Germany could try to do so, but they'd simply bankrupt themselves in the process, and buy another 24 months, at best, while sowing the seeds of a German Revolution.

China has been intervening to prop up the EUR, but they don't have the horses to do anything large scale enough for a long enough time other than hopefully buy some additional time for their exporters and repatriate some money.  Besides, China has quite the debt & economic crisis brewing on the home front.

Has anyone computed total Eurozone member state debt outstanding? I think the math says Germany would be put into a deep recession or depression just trying to bail out Spain & Greece, let alone Spain, Greece, Italy, Portugal, Ireland & France.

Fri, 08/19/2011 - 04:37 | 1576180 saulysw
saulysw's picture

Yes, but if they all owe it to each other, does it still count?

Thu, 08/18/2011 - 16:26 | 1574499 redpill
redpill's picture

Wish I could get an emergency $200 million loan at ~0% interest.

 

Thu, 08/18/2011 - 16:49 | 1574633 TuesdayBen
TuesdayBen's picture

whatcha got fer collateral?

Thu, 08/18/2011 - 16:59 | 1574685 speedy
speedy's picture

I've got second hand cat vomit.  Will that do?

Thu, 08/18/2011 - 17:03 | 1574705 Thorlyx
Thorlyx's picture

if you leverage correctly, you might get the double amount.

Thu, 08/18/2011 - 17:15 | 1574760 tsx500
tsx500's picture

any way u can enlarge your avatar ?   my atf 

Thu, 08/18/2011 - 17:23 | 1574799 New_Meat
New_Meat's picture

"show us your ... er ... thanks"

Fri, 08/19/2011 - 07:42 | 1576382 StychoKiller
StychoKiller's picture

speedy, what happened to your "bouncing" avatar?

Thu, 08/18/2011 - 17:03 | 1574707 Coldsun
Coldsun's picture

All of my major purchases are overvalued, I am suffering from an insurmountable amount of debt, I make bad decisions when purchasing, and I have no time or money to fulfill most my obligations. So when can I get that check?

Thu, 08/18/2011 - 17:17 | 1574769 LeBalance
LeBalance's picture

Check?  Just sign "Hank the Skank" and we'll give you cash, pay your mortgage in full, and shine your shoes.

Fri, 08/19/2011 - 07:43 | 1576387 StychoKiller
StychoKiller's picture

What happened, did The Bernank kick you out of the Banksta club?

Thu, 08/18/2011 - 20:33 | 1575310 tbone654
tbone654's picture

it's not the amount... it's who...  seems a simple concept...

Thu, 08/18/2011 - 20:39 | 1575326 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

It's tantamount to you having one dollar left in your pocket to get you through the next 10 days!

They is busted!

Thu, 08/18/2011 - 16:22 | 1574469 the not so migh...
the not so mighty maximiza's picture

F U FED....FU!!!!!!

Thu, 08/18/2011 - 16:23 | 1574477 reader2010
reader2010's picture

Ponzi is the name of the game. 

Thu, 08/18/2011 - 16:24 | 1574480 MsCreant
MsCreant's picture

Maybe loaning them the money on purpose to make them look bad so that their currency goes down?

Like my stylish tin hat?

Thu, 08/18/2011 - 16:25 | 1574487 Caviar Emptor
Caviar Emptor's picture

I don't like it. Too simple. There must be a more complicated explanation 

Thu, 08/18/2011 - 18:26 | 1575019 Two Towers AU AG
Two Towers AU AG's picture

Mabe the SNB just likes uncle Ben.

Thu, 08/18/2011 - 19:32 | 1575183 Big Corked Boots
Big Corked Boots's picture

"The genius of you Americans is that you never make clear-cut stupid moves, only complicated stupid moves which make us wonder at the possibility that there may be something to them which we are missing."
- Gamal Abdel Nasser

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