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Did The Fed Just Buy Europe A Week?
One of our most watched indications of the pressure on European funding markets is the EUR-USD cross-currency basis swap. This simple trade is a way for European entities to take the excessive EUR funding they can get from the ECB and 'swap' it into USD to meet their significantly problematic USD funding needs. It has smashed higher (well lower in the charts) as the cost of the transaction moves with demand for the swap - indicating that demand for USD is huge and we are in as much of a liquidity crisis as we were in the middle of the 2008 critical period. What is fascinating to us is today's reaction - a 22bps jump - while being large, merely moves us back to the same levels of stress we were at one week ago. So even if this is seen as some huge form of liquidity surge, it seems not to have even solved the liquidity problems of banks, let alone solvency problems.
Short-term we are back to stress levels in the USD swap funding market from only a week ago. But on a longer-term basis, this is still extreme by any standards.
Charts: Bloomberg
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Not even a week. This is all just so disgusting! And illegal! And unconstitutional! And.....
Half life by Friday. Then Plan B (Iran war) kicks in.
Dump in more dollars...big deal. The problem isnt a LACK of money, its that money is now worthless.
While everyone is mesmerized by futures, we're at world war.
Yes. Financial sector effectively experiencing hyperinflation. Trickle-down will accelerate in 1H 2012.
How we measure wealth is readying to shift from $'s to .oz's. Simple 'nuff.
Au Bitchezzzzz.
Right now, it's being measured in Black Gold. Iranian Oil, bitchez!
Yes and either way oil goes past $120 and further squeezes global markets in bihyperstagflation nightmare along with more downgrades.
oil goes - But GS will make a killing via ICE.
Yep, better pile in to crude post-haste.
Look, a WW3 with Iran is not going to be permitted by the international coalition which includes the Russians, Chinese and the Pentagon (and others). The elite will do anything to delay their collapse and the expected arrests & indictments of thousands of miscreants. 0% chance of WW3 from some that knows (and not talking about of his ass).
We are nearing the end for the banking cabal.
Popcorn anyone?
Sounds good, but I think you are dreaming.
I'd like to agree, however I fear they would rarther destroy us all then submit... These are, after all, some ruthless mother fuckers...
Syria first..it'll choke Iran supplies,,, then the Feces hits the orbiting surfaces of the rotary device.
...being ignored by 95% of the world population?
Yes, I agree. It's terrrr-i-ble. (Said in my best Cleveland Brown voice)
Doesnt everyone see whats going on? yesterday consumer confidence soars, today adp employment soars, warmongering with iran, pakistan, today markets soar on interest rate manipulation. This is the EXACT same shit bush jr pulled to get reelected. This makes me sick.....
"The yellow jester does not play, but gently pulls the strings,
And smiles as the puppets dance, in the court of the Crimson King." -- King Crimson, "Court of the Crimson King"
When they throw in the kitchen sink and start bailing out aliens, you know the end is here.
LOL. Escalation pure and simple. Cameron cannot get this iRan thing started fast enough.
Since everyone will soon forget about the complete clusterfuck that is/was MF Global, I'd just like to say one last time: Fuck Jon Corzine.
Cameron is merely following his hero, Tony Blair, and wanting to start his own false murderous expensive mindless war
i think it insures a $1m consultancy contract with Credit Suisse when he leaves office with country in even more of a mess than when he started.. it's a performance bonus
I am certain Barclays already own Cameron, but perhaps he will be alowed some consultancy gigs as well. Blair has JPM covered, his peace envoy bullshit job is perfect cover for doing JPM chores.
These people are truly above the law, how I wish it were not so.
Cameron is Just Following Orders, for criminy...
So true. Did you see how soon after visiting with the US prez (and his henchmen) he was touting Turkey for EU membership (yet again) ?
This dispite the fact that all the major European leaders are quite happy to go on the record and say "there's not a chance in hell we will allow a(nother) US satrap into our club".
Isn't that how long it lasted when they did it for Lehman
arrggh.. the ogligarchs wil (have)l monetize! high to hyper inflation for the 99. Reward the speculators, and punish savers.
The West is headed straight into uncontrolled stagflation in 2012. And Japan will go bust, because of central bank monetizing.
They must know, but don't care. The hubris!
http://bpp.mit.edu/usa/
Interesting. So, Japan logically to go first, given their debt levels, but followed by whom ?
Perhaps.
It also bought Bank of America a few more days.
Wait until next week. This will be a distant but painful memory.
And things will be much much worse than they are now.
Final bazooka has been utilized. Clear the way for the drones and warships.
Funny how we're ALREADY at 'So, whats next'? Even Cramer just said it wont last but for a moment.
Even Cramer said it might only last a week at best....
looks like the Germans put their foot down (on the brakes) in the ECB
you can always depend on Kamakazi Ben and Turbo Tim to hit the gas peddle ...the Thelma & Louise of futile suicidal economic morons
A LOT CAN HAPPEN IN A WEEK!!
I ONCE LOST 3 POUNDS ON A CRASH DIET OF 1 WEEK!
Lost pounds?
Pound? Lost?
SHORT THE POUND!!!
What you/we all need to understand is that this is a short term fix. It allows banks to fund their USD exposure a littel cheaper. But at the end of the day, you still have a solvency problem in the EU which this move does not address. Therefore, you need to keep your positions small, so as not to have margin issues. But the flip side of this coin is that when this puppy moves, you will get your bang for the buck. :)
Please make to sure to tell the algos that all is NOT well.
They're retards.
it is long enough for TPTB to get in..or get out..whatever they needed to save themselves cash....in the meantime we the peons lose it...
Good I hope they do that till inflation crushes everything. Silver and gold bitchez!
Steroid shots make a dying system feel and look better for awhile. That's all this is.
Two minute offense down 4 TDs. Should be fun. :D
whatever it is ...the LONGs should book profits....::
http://markettechnicals-jonak.blogspot.com/
Bad day to be short the euro...poor me
You haven't been paying attention
A week is too optimistic, every word-powered floor since August's and September's market plunge, along with October's ramp, has seen its time span decreasing since "investors" became more desensitized and immune to unsubstantiated rhetoric.
Risk will be sold into any ramps as even the robots know, that until the solvency matter is addressed, the current market is a minefield, despite the jubilant global bullshit.
they catuallyjust made the situation way worse with oil zooming higher
this will kill the economy
Anyone has an estimate of the liquidity (in usd) beeing flushed into the system?
Get ready for a classic '9:45 a.m. flameout' in US stocks.
This is overdone.
eurpopean stocks are now up almost 10 percent in 2 days
obscene
Global Central Banks Go to Defcon 4 - "Fire up the printing presses, gang!" Or at Least Swaps
http://confoundedinterest.wordpress.com/
Look at Euro bond yields versus US yields. US yields actually ROSE.
For a novice non-specialist, could someone answer a question please? How does a move like this compare with the anticipated "QE3" people keep sighting on the horizon? Thanks in advance.
Bought a week to find real uinicorn farts, isn't that just fabulous....
take what you can NOW
take what you can NOW
Currency/derivatives creation has literally exploded to super nova..............running around 100 million a minute since the intervention announced.....this is the funding for the bailout.
Tyler,
This letter is from Survival Blog. IT seems that Zero Hedge among others is blocked on government servers.
James,
They are now blocking SurvivalBlog along with Zero Hedge and I Hate The Mediafrom work where I work. Yes I'm on a government network. I assume that more of the alternative media sites are going to be blocked, shortly. I'll send you updates as they are blocked. Thanks for your time. - C. in Northern Virginia.
You can still get to all sites banned by typing the ip address into the url address bar
You asked (or will...) for it boyz 'n grillz, so here it is:
ZeroHedge IP addresses:
http://188.126.66.66
http://188.126.66.6