This page has been archived and commenting is disabled.
Egan Jones Jars Market Out Of Rumor Hypnosis
While European, US, and commodity markets (ex-Spain) were enjoying the hope/hype of ECB rumors and QE chatter, Egan Jones just burst the bubble, back to reality. Within minutes of their downgrade of Spain, EURUSD was plunging faster than Facebook and along with that cornerstone of correlated risk markets, gold, silver, oil, copper, and US equities had smashed lower.
EURUSD was not happy...as the headline hit BBG (10 minutes after we posted it here)...
and commodities reacted...
Before all of this reality-checking, our European EOD was thus:
ECB Rumor Pushes Europe Ex-Spain Higher
In the same way that Mrs. Lincoln was unable to enjoy the play, we fear Draghi, Barroso, and Rajoy did not enjoy today's broadly green close in the European markets because of the slow-motion train-wreck that is Spain. The Euro-Stoxx is up 0.6% with the majority of European equity markets up around 1% but IBEX dropped over 2.3% further, Spanish banks plunged dramatically (thanks to Bankia's restatement throwing doubts over pretty much anything not bnailed down in their assets), Spanish sovereign bond spreads leakeds wider and Spanish sovereign CDS pushed to new record wides. Credit and equity markets gave a little back into the close but generally warbled in a narrow range - gapping up at the open.
What's maybe most worrying is that Italian bond spreads started to underperform Spain today - adding 10bps from their tights while Spain only added 4bps
Chart:Bloomberg
- 9820 reads
- Printer-friendly version
- Send to friend
- advertisements -






When is the break-neck reversal and ramrodding right back up to the highs? Will it be directly at parity? I'm taking over / under wagers. Step right up.
3:24
Wanna go to the strip club while we wait?
"Plunging faster than facebook" HIYOOOO!!!!
Was...now back to your regularly scheduled pump job.
......correlated risk markets, gold, silver, oil, copper, and US equities had smashed lower.....
Ahhh.... the truth comes out! Gold IS a risk asset.
http://www.kitco.com/charts/livegold.html
Yep.... sure is...
I thought everyone was suppose to flee to gold when fiat currencies collapse? It seems every time there's financial chaos, gold goes DOWN, which is the EXACT OPPOSITE of everything the doomer goons believe.
*LOL*
MF
I think people ran to it BEFORE it happened as insurance. When it happened they liquidated to pay off losses, but with the boost they had from gold's increase. This is a short term blip.
More to the point, everything is a risk asset. No place to hide.
Thats it, lets all follow the crowd and not pay attention to China and Russia loading up on gold to eventually back their currency. Lets all invest in the Almighty worthless dollar, treasuries and falling real estate that will give a HUGE ROI.
All the way back to 1553!
If the market chooses to discount insurance as a crisis unfolds, then I'll take that discount thanks. Equivalent of having flood insurance being marked down in New Orleans as Hurricane Katrina rolled in off the Gulf.
You're an idiot, and ZH really, really needs an ignore button.
Here; let me play at being Maxie Fisher:
"My friends, let us postulate an investment, called miraculum. I tell you three times, people, miraculum is a SAFE HAVEN. Normally thought to be mythical, SAFE HAVENs have the property that they never drop in price! Particularly during times of uncertainty or distress. It is TRUE!. People can collectively store wealth in miraculum en masse, and when they pull wealth out, it has no effect on price!
Oh wait. Oh my! Bad times came and poor miraculum didn't act like a SAFE HAVEN after all! I guess it is really just a POS pretending to be a SAFE HAVEN! Aren't you all idiots for every buying miraculum! *LOL*"
The technique is known as "straw man", Maxie. The "safe haven" aspect is an easily deflatable claim to superiority that Gold never made, but in fact YOU adopted (I'm sure out of kindness) on Gold's behalf. Using straw men to demonstrate your superior position is lame, childish, and likely only to have effect on weak minds. (You're in good company; your idol P. Krugman does it all the time.) Is that really the best you've got?
Facts: There is no miraculum. SAFE HAVENs don't exist in the world of investments. If they did everyone would own them. And (physical) GOLD merely represents a counterparty risk-free option for wealth preservation; accepted as fungible wealth world-wide by people who matter when IT really counts; proven to get the job done handsomely throughout the ages; publicly hated by the con men that own and run the world; yet secretly coveted by almost all. It is The odds-on favorite to be one of the few things still standing after our current Tower of BS eventually collapses under its own weight.
Please mature or mute. (I'm dreaming). Or... continue to do your best to shoo people away from one of their best options during these time. I suppose there's nothing like being a happy cog in the world's MOPE machine.
That's quite a response for someone wanting an ignore button. I thought libertarians were staunch protectors of freedom of speech and everything else the Constitution guarantees? Oh, yes, I forgot... only when it serves their own self-interests.
My point is simple: the central thesis of the doomer goons - gold is a safe haven - has repeatedly been proven to be FALSE. This is central to doomer goon ideology. This is NOT a strawman made up by me this morning.
MF
Free speech for all, yes. Implied wisdom for all; hardly. Freedom from repercussions for spouting idiocy, um, Maxie, you need to go over those libertarian tenents again. We are *all* about failure when merited, and thus the freedom for all to fail spectacularly.
PS. "Ignore" and "mute" allow ME to conveniently avoid YOUR drivel. They do nothing to stop you from driveling. It is Telling that someone who wants to clap his hands over his ears in your presence is somehow violating YOUR rights.
Gold's time has not yet come.
Max, Max, Max. Tisk tisk.
The 'doomers' ALSO say that they are not interested in the paper gold (i.e, Comex future market, london future market) price of gold. The doomers are PHYSICAL buyers and are holding gold because the paper gold price is a fraction reserve price which SIGNIFICANTLY understates the the rarity of gold.
Gold is a hobby horse of mine too. I love accumulating on these price swings DOWN (please tell me you never buy your favorite asset as prices go up). I believe that the paper price of gold and silver is vastly understating the rarity too.
I might be wrong, but since we haven't had a currency crisis yet, the jury is still out. It seems like we're heading into one and lots of doomers wll be patient and continue to accumulate. Seems like a winning strategy for the last 12 years.
But, of course, your usual sniping doesn't address that wealth preservation philosophy.
WHEN was gold not a safe-haven? For 5000 years it has been true right up to this day. Please explain your nonsense
Its astonishing that you have a handle that iplies intilect. Your posts repeatedly show you dont understand what the fuck is going on.
Its ok MF, its good that many people including you have no foresight. Cattle need to be calm and not stampeding before they are slaughtered.
iplies intilect?
*LOL*
Typical doomer goon.
Buy silver, crash JPM!
MF
Keep it up bitch, you might win the Nobel prize...
Just blips on a 10 year graph Max. Look 5 years back and think 5 years forward and beyond.
Gold is a store of value, which is a different concept than a risk-on, risk-off asset.
It is also a commodity, and as such can have significant short-term swings in market value re fiat.
It can also serve as a portfolio insurance policy, with 3 to 5% gold and gold related stocks (mining) not being unreasonable.
If you chose to focus on short-term fluctuations, especially in today's HFT dominated market, and day-trade gold futures, you are just being another muppet.
Gold is not a risk asset. It has no long term correlation to risk assets. It simply moves up to counter government debt and money printing. What you are trying paint as a risk correlation is something that happened in a paper hedging market where no gold actually changed hands. The paper price has nothing to do with gold accumulation or value in the short term. Everyone likes the paper price to rise. But gold's true value = (national debt/gold ounces held by government). That is where the paper gold will eventually go as well.
You don't understand gold. But you aren't alone.
Anyone know how to get on Egan's insider update mailing list? It would be nice to front run one of these announcements.
It looks like the world is too broke to keep up with the Egan Joneses.
I think the ratings agency of choice needs a new Moniker: Egad Jones.
ori
booom!
Last time Mr. Jones was first to blaze a similar trail the SEC (in the interest of the US tax-payer...I'm sure) he had G-men popping in/out of his sphincter
His closest colleagues now call him "Vegan Jones"
"Egad Jones and the Temple of Doom!"
The rain in Spain washes facebook down the drain.
"When is the break-neck reversal and ramrodding right back up to the highs?"
Only for stocks and currencies. Unbacked risk assets like gold? Not so much.
I'm waiting 4 the Fed 2 do a FB IPO. I'm expecting it 2 open at $0.00 & with plenty of downside.
I'm starting to feel good about some July XLF 15 puts I bought at 1.11 a couple of hours ago.
Going to need that Zerohedge IPO announcement soon to help prop up the markets.
The euro/gold currency is crashing ...
"and commodities reacted..."
If I get shares based on the number of crappy posts I've made I'm gonna be rich.
Another raid on gold. Another chanceto stack coming up.
Here's a list of such dips for ya - http://flic.kr/p/cgMBw3 - enjoy. Update 52-week ROC model not ready yet
Wow, faster than Faceplant.
Will fb break the $30 today? I still keep waiting for a melt-up in this dog.
Where are the market makers??????????????
It's times like these when we need RoboRetard to give us hope things are gonna get a lot better.
providing liquidity ... who do you guess is selling????
daaa
Will fb break the $30 today?
Break in which direction?
It is 28.77 at the moment - 30+ handle at close today does not look too promising. The day's chart for it is more or less a single, steady decline - a 28.50 close would not be unreasonable to expect.
USD and Treasuries are the "safe havens"... <snicker, snicker>
Yes you better load up, there is plenty of upside from current levels.
for realz! When the shit starts flying you'll be paying protection money to hold U.S. paper.
If I were Egan Jones I'd invest in state of the art drone detection.
I've been wonder about that...... any start up companies doing that yet?
Damn. I already took one cold shower this morning.
Mrs. Cog wasn't exactly receptive. And now this. :>)
You should have Mistress Cog on standby then............
Mrs. Cog ain't gonna like that idea.
Mr. Cog and his "irrational exuberance" can be easily replaced. But a sparkling gem like her is real hard to find. I think this old horn dog is staying home. :>)
Have a radish for me buddy.
Sadly we are between radish crops.
But it does look like Spinach salad is cued up for the week.
Whatever. Married 18 years here, the first 3 or 4 were pretty awesome.
But when a WIFE realizes the ONE duty she is OBLIGATED to perform becomes OPTIONAL, then she is ENCOURAGING her husband to seek refuge elsewhere. When she uses sex as solely a reward or bribe and you LET her, you are TOAST!!!!!
Trust me in this...............all men are horn dogs dude. It's just the married "faithful" ones that are always dying to get laid...........
Sex is gonna cost you one way or the other........
It most certainly isn't an obligation on her part. That mentality is the sign of a failed partnership. From my point of view I see it as my job to keep her (very) interested. And for the most part I have been (very) successful. I can't control anything other than my point of view, which serves as my motivation. I suspect most (not all) women will remain interested if the man doesn't make it routine.
Mornings like today are the exception, not the rule. Thus I don't roam the field. Keep it interesting for both partners (especially when one or the other doesn't feel motivated) and there's no need for this dog to hunt anywhere else.
I respect your view. But sex isn't an obligation???? My best friend's wife went cold on him and the court granted him a divorce on grounds of constructive abandonment. YOU DAMN SURE STRAIGHT IT IS AN OBLIGATION!
For those who have successful marriages, I say congrats. But your suspicion that "most" women will remain interested.......????? You need to get out in the real world guy. Women are spoiled, their children are spoiled and you are seeing that play out in the culture.........because if women don't get what they WANT........and kids don't get what they WANT.........
It's ruining the country bro..................needs are so 1950's..........
Maybe your attitude towards women has something to do with your wife's sexual interest in you!
Or maybe it's because my wife spends too much time watching Real Housewives of Wherever and Oprah and crap like that and has a false sense of what being a wife means nowadays. You can't change my perception: too many spoiled bitches on TV and too many spoiled wives in the real world.....
I know there is a time and a sure place for kids.I had em'.
Wouldn't trade them now for the world............
But, want to guarantee a dead/near dead sex life, have a/some kids.( esp if the wife has a career also).........double dead.
Women typically choose their mates (unkown to them, AND men) by the natural process of best candidate for strong,healthy kids.
Its the facts jack.( this of course applies to those that want children,and /or are just looking for the rich dudes,(ever notice the prettiest women USUALLY are with the mediocre/flat ass fugly dudes,but loaded?).
CD,
It most certainly isn't an obligation on her part.
It most assuredly is her obligation, as much as yours.
Marriage is not 50-50, its 100-100.
You dudes who are short changed and or cut off, seek counseling immediately.( just a train wreck about to happen)
Been married over 30 plus years..... you chose poorly!!!!!
CD, a little humour mixed with some truth, put a smile/smirk on my face.
Next time try a hot shower with Ms. Rosy Palms. You can't miss.
Let's see what bond markets do tomorrow.
http://confoundedinterest.wordpress.com/2012/05/29/is-catalonia-actually-california-spain-considering-guaranteeing-regional-debt/
yet the dow is holding.....hmmmm....and who said central planning doesnt work ;)
And back to + triple digits!
That pullback was scary shit!
as long as that last bastion of americas wealth effect holds, commodities will continue to be plagued by a deflationary contracting environment, because there is no incentive to print.........ben continues to be a one man show stopper. bringing raw commodity prices down, competition (gold) out of harms way, and letting joe america sleep soundly with dreams of 401k splendor...................
You mean super Mario is not bailing out all the EU banks.....shocking.
How stupid can the markets be? The world already knew Spain is f'd up big time....and they react to a company ratings downgrade?
I rather think that the market was pumped up for certain nefarious reasons, and then the magic support was removed after the market makers had taken their positions. Or maybe it was something to do with the Mayan calendar???? When I read the entrails of the chicken I sacrificed this morning there was no mention of a Spanish downgrade.
I guess the herd can remain stupid for longer than we can remain patient. (Just keep buying).
Did you forget the ritual sacrifice at dawn ?
Edgar Jones shuts off the red light at Big Ben's Liquidity Tit Suck Hotel and Bar. Nice................
Silver, ALWAYS GOING DOWN...
Just like your rating on your last silly comment. if you're waiting for silver to hit single digits, then you mind as well start investing in Zimbabwe dollars because that ain't happenin'.
Reminds me of your mom.
Reality bites. The signal to FLEE TO PAPER.
This drop does not bother me one bit. Too many weak holders that do not follow us here. I know what the end game is.
Got all that I need and not changing anything, off to the garden.
@Egan-Jones,
"I find your lack of faith disturbing"
Farcebook on the express elevator to hell. 29.70.
Long sonic electronic ball breakers.
Is THAT what weirding modules do? Mu'ad Dib!!
Is it strange that the FB ticker from google finance now starts on 5/21/12 not on 5/18/12?
-23% vs -30%
Hey all, just think of the names, Bernank, Obama, Pelosi, Reid, Panetta, Boehner, Dimon, and the all knowing members of the Fed. You really want to hold "dollars", or invest in the "stock market".
Everything went wrong today and the markets are doing great. The markets must not have anything to do with anything. They've decoupled. Maybe no one owns them anymore. Or maybe they've been attached to the Bernank's kids computer and he's doing a research project for school with them. Somthing doesn't seem right.
Thought you guys might like this...
If you cant see the pisture click here http://finance.yahoo.com/news/europe-agrees-greece-laziest-most-142205717.html;_ylt=Aq1BFv4d1k7bxJfjsa.cPE2iuYdG;_ylu=X3oDMTQ0dGk1dXY0BG1pdANGaW5hbmNlIEZQIFRvcCBTdG9yeSBSaWdodARwa2cDODUzYTg0ZjktN2RjOS0zMzcxLWFiMjctYzQ2NTE0ZWJiNDllBHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyA2FhYmUxNTYwLWE5OTktMTFlMS1iN2ZmLWVkMTNjNjFiYTkzYQ--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
Look at the Greek vote for hardest working people in the Euro.
Now that image deserves to be posted if only to show the severe (Greek) Cognitive Dissonance at play.
http://www.pewglobal.org/2012/05/29/european-unity-on-the-rocks/
Oh god that's funny!
It's probably accurate from a subjective point of view: for the Greeks it's really hard to work; whenever they are working it's very hard for them; therefore they are the most hardworking.
DJIA stii up 85 you doomers. Bernanke bid 4evah!
That'll all be gone by Noon Wednesday at the latest.
Sometime in June, Bernank will announce the latest attempt to save the banks and bankers.... "Operation Armagedon 1".
Then the fun begins.
It's really not necessary to put directional arrows on your charts.
Just a suggestion...
FB, My goodness.
My guess is the SEC has sent Egan Jones several boxes of Blue Fin tune as a "gift":
http://www.zerohedge.com/contributed/2012-05-29/%E2%80%9Cabsolutely-ever...
It's a variation on the 'horse head in the bed' routine....
Billy Bats might be asking Sack today "come on you fucking feelin strong?"
Can't let all this giddiness from this morning fade away the faces on the comedy channel will be longer than I'll Have Another's face.
anybody know if the greek stockMkt is strong again today?
stocks still green, but s&p toeing the line
long bond just went thru 148. again. the treasure can put us another $Tril in the debt hole; permanently; the checks are IN THE MAIL!!!
maybe stocks are gonna look good with these commodity prices down; we can pay $4.69 for a jar of mayo and the corpo margins will be wonderful...til 29% inflation kicks in...
5 more weeks til the 2nd Quarter ends
everthing is still screwed down pretty tight except the stuff zeroHeads own; altho the miners are down, today, they did have a heluva run for a coupla weeks
are we seeing the reverse of last year when daBoyz bought gold and sold the stocks; are they now buying stocks and selling gold? well, paper gold; not right now, but stay toonered
soybeans are up ok @ 13.93; they may have been oversold after abt $15, but corn and wheat are down 2+% with wheat $0.95 rich Vs. corn! i don't recall seeing them spread that wide for moony moonz
the crimex has got more action than stocks, it appears; more 'beta'
gold is $120/ oz above plat; the banksters and traders are just pumping&dumping the spreads on the metals and grains
and recall that margins were lowered last week...; and the cots report last week indicated increased open interest and options in the PMs; i think
better double-check
COT Gold, Silver and US Dollar Index Report - May 25, 2012
By: GoldSeek.com
yep: gold open interest up 13Kcontracts; ^29K w/options
silver open interest contracted -561, but +3K with the options
and, the mogambo is upStupendous Mogambo Advice (SMA)
and graceland stewie, too!Gold And Growth With Safety both also on goldSeek
now: is this risk0n or risk0ff?
Town 4 Sale
Apple cannot exist without economic slavery;
Google cannot exist without invading privacy;
Priceline cannot exist without false advertizing; and
Facebook cannot exist without the false economy of fake people.
The Buffets and Gates of the world are shorting their own enterprises, Oprah can’t get money out of a bank, and Silicon Valley is confident that it can spend tax dollars best. When stupid is the correct answer, you are watching empire TV, breeding stupidity to scale economies with MAD derivatives, while the operators all hide in their offices, paid week to week by the taxpayer, the Fed, watching Wisconson.
Pick a town, any town. They are all for sale, whether you know it or not, if you can pay the escalating tribute. And, in case you didn’t hear the proclamation through all the noise, Congress temporarily digitized local government pensions by throwing Social Security under the bus. Where is Jerry Lewis when you need him? Walking on water somewhere I suppose, once his manservant drops the stairs.
They keep adding pictures to the Facebook wall, and dropping those coins in the slot. First it was straw; now it’s pictures, instead of bricks. That didn’t work for Kodak, Rochester, or anyone else. It only works in Hollywood. Have you ever been to Hollywood, anxiety with no place to go but inward?
An empire is a depression.
So, I’m in Oprah-land and kid Latin cop pulls over in his $1/2M RV mortgage, looking for Oprah’s house, like she takes a risk on mingling with the lower robots, in a town for sale at $2M. I would have directed him across the country to Virginia, but he already had enough fairy tales, like his pension, to chase.
Just glad that Egan Jones is STILL sticking their finger in the SEC's eye(s)...