The EU Jerk-And-Smirk

Tyler Durden's picture

Update: it just gets stranger and stranger. With a 40 minutes delay, now the  WSJ gets in on the action, with their spin:

  • Many ECB Members Surprised By Draghi's Comments Suggesting New Bond Buys, Source Tells WSJ
  • Draghi Wants To Discuss Buying Govt Bonds Simultaneously With Euro-Zone Rescue Fund, Source Tells WSJ

'Normal' - USD has now reverted higher, TSY yields back lower, and Gold off but stocks refuse to give up hope


and as a reminder of some odd reality in the medium-term...

EURUSD is now tumbling - we assume this reflects greater EUR printing dominating tail-risk fear removal and reduced QE expectations from the Fed... but buy stocks still...


Charts: Bloomberg

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Cult_of_Reason's picture

Draghi is preparing for Greece exit.

crawldaddy's picture

exactly. IN the real world we all know if you have to reassure your family everyday that your family is fine and you are not going broke,  it only means one thing.. you are going broke.

TruthInSunshine's picture

Ironically, the only thing the completely batshit lunacy of the  Bernank'd and now Draghi'd markets does is increase the total lack of trust that carbon-based life forms have of the "equity markets."

It's going to be epic to listen to and read Bernanke's statement on what he is doing next (Bang! Bang! Bernanke), how, and why.

I thought peak lunacy had been reached in 1999, and then again in 2007, but I was sooooo wrong...I don't know if this time we've hit peak lunacy, but if we haven't, I can't wait to see what is next.

The one thing I am POSITIVE about is that what I will call the Dr. Michael Burry For Whom The Bell Tolls Grim Reaper is coming, bitchez....he's coming (math always and inevitably prevails).

Michael Burry Giving His Estimation (based on solid arithmetic) As To The Extent of the Pain Train That Will Hit


Haager's picture

You can't hit peak lunacy because Einstein was right.

Precious's picture

The central bank manipulators are in full swing rigging the markets.

I always wonder why the banks they prop up advertise their foreclosed homes as "Bank Owned".

You would think it's some kind of invitation to mischief.

Carl Spackler's picture


This movie has dragged on for too long, I'm almost out of popcorn, and there is always the risk that watching movies can end in a disaster.

Mr Lennon Hendrix's picture

King dollar!


[pant, pant]


ACP's picture

And small investors in the stock market are preparing for a Greek entrance.

101 years and counting's picture

you nailed it.  (Draghi) keep looking at me and forget the Troika is in Greece confirming they've missed all targets, and will not get any more funding.

HD's picture

"Jerk and Smirk" indeed. Now I'm waiting for "Wank and Tank"...

MsCreant's picture


Re posted from another thread:

Jeeezus, folks they are criminals, don't you get it!!!! Anything you can think of that they can do they are doing it. They will print and deposit at will. Help me with the list that shows they are criminals, I will get it started:

1. The Fed is buying Treasuries via PDs. This is the equivalent of check kiting. 

2. Li(e)bor was rigged, and most knew it. Timmah knew it.

3. Most of the countries in the EU/Euro currency had help lying on their books so that they could get in. 

4. Subprime lending, need I say more? Rigged to skim fees and hand off bad collateral to create investment vehichles destined to be empty bags of shit promises and no more.

5. Changing the rules so that they don't have to mark their assets to market, they are permitted to hold and mark to model. WTF????

6. Big brokerage firms are commingling funds and they are becoming "vaporized" as in STOLEN.

Come on folks help me out here, keep this list rolling. I beg you. They are all criminals, don't you get it? They are doing any and everything they can think of. You sit here trying to guess if QE 3 will happen or not. Do you see what I am saying? They are sooooo beyond this with their criminal behavior.

EDIT: The QE3 debate is a distraction to keep you attention elsewhere, like any good magician/con artist.



Careless Whisper's picture

7. Wells Fargo/Wachovia & HSBC admit to money laundering for drug cartels.

MillionDollarBoner_'s picture

8) Deregulation

When is a crime not a crime?

When its not a crime ANY MORE ;o)

Atlas_shrugging's picture

9) "It would be disastrous to let [insert favorite TPTB program] fail".  Disastrous for whom again??

Carl Spackler's picture

8. It was disclosed that BOTH Con Holder and Louis Freeh, acting as legal counsel, received payments for advisory work to MF Global...since Corzine was installed as CEO/Chairman.

I smell previously undisclosed conflicts of interest and quid pro quo arrangements with Corzine/MF Global..."and now you know the rest of the story. Good Day."


Overfed's picture

Wells Fargo/Wachovia, HSBC, FBI, BATF, and the US DEA admit to money laundering for the drug cartels.


Fixed that for ya'.

same old story's picture

we all know they are criminals.  but they are hardly going to prosecute themselves, so does it matter?  If you could do as blatant an act as corzine and walk away then I think the message is clear.  timmy was sent an email where a barclay trader said they were rigging libor - timmy did nothing and nothing will happen to timmy.  


Sometimes, I think TPTB come on here for a laugh to read how we are all upset that they are getting away with it, but then I wake up and realize they are all to busy jetting here and there while raking in the wealth to waste their time reading what the slaves are saying.

MillionDollarBoner_'s picture

but...but...but...its all being done with your best interests in mind...

Caviar Emptor's picture

9) Supposedly private banks live off of Fed corporate welfare: borrow at near zero only to lend back to the Fed and make money on the spread. And many other Fed tricks to keep zombies alive

battle axe's picture

So write your congressman...nothing will change. 

CPL's picture

That's easy.  Everyone is getting ready for a nuclear war.


Turn on private browsing.

Google News and cut and paste the following.  Syria is a smoke screen for other things going on.

(arms|weapons|bombs|shells|chemical|nuclear) (attack|kill|shell|mortar|defend|violence) (toward|away|retreat|conflict|fighting|deployed) (company|troop|platoon|military|security|group|army|navy|air|force|police|operations) -syria

Then in French

(armes | bombes | Sièges | chimique | nucléaire) (attaque | kill | shell | mortier | défendre | la violence) (vers | away | retraite | conflit | combats | déployé) (société | troupe | peloton | militaire | Sécurité | groupe | Armée de terre | La Marine | air | Force | | Opérations de police) -Syrie

Picture not quite clear enough yet?



????||??|??| |???????|?|??|??||???????|?????????????|??|??|??|??|??|??|??|??| |?????- ???


Have fun.

disabledvet's picture

Wasn't I just talking about the 30 year per your request? Weren't you? This cannot be considered a surprise. "not priced in" of course...but a surprise? This is the ONLY tool monetary authorities not only have but use: devaluation.

crawldaddy's picture

Reality- world economy going into the shitter


Politicians and Bankers- pander and release nonsense statements 


So who do you trust?  reality we all see and have to live in, or some lying politician and banker.  For the so highly educated wall streeters.. thats simple.  trust the politicians and bankers.


THe stOopid is so extreme and so system wide you cant even make it up any more.

Caviar Emptor's picture

We here at the Fed care so little about this so-called "reality" and "the real economy" because we know you all live off of what trickles down our legs

BanjoDoug's picture

so what's gonna happen when stocks DO GIVE UP HOPE.....   I expect it ain't gonna be pretty....

crawldaddy's picture

Japan shows us, we should be trading in the 8000 range.

MillionDollarBoner_'s picture

how can "stocks give up hope" when the only buyers are the FED and their agents?

Geddit !;o)

Plausible Deniability's picture

At what point do we give up? We are sitting on the sidelines, making an occasional trade. But, so far, I have been dead wrong. Economy is shit but the market doesn't care. I'm sitting in gold, which has been dead money for the past 10 months, and a lot of cash waiting for a pull back that refuses to come. Meanwhile, the cash I am sitting in continues to get debased while asset prices surge. Who's the idiot??

crawldaddy's picture

depends are you a trader or an investors?  If you think you have the knowledge and guts to trade this market, money can be made.  However if you are an investor, you/me and everyone else has no business what so ever even thinking about dabbling in this horseshit.


Its a casino man. I for one dont gamble with my future

Plausible Deniability's picture

I hear ya. I'm a money manager. Just getting harder and harder to pacify clients. This thing has run so much further and gotten so much crazier than I anticipated. Look at Nike. Has a horrible quarter and has already recouped its losses. Its nuts. I was mainly just voicing frustration. The other thing I keep thinking about is the quote "Just because something is inevitable does not make it imminent". I'm just hoping I'm still solvent when this market regains its rationale

crawldaddy's picture

I feel for you. Its like your know a bad storm is coming and you are telling all your friends to remain inside,  yet currently its sunny out and they are getting restless. Be assured the storm is coming, math doesnt lie.  All this bullshit the central banks are doing are just making it worse in the long run.

Plausible Deniability's picture

Yeah, thats what I keep telling myself. We shorted sbux at 55 which was a good trade. And we have had a few of those. The moves we have made have been vastly profitable. But, just not nearly enough of them to keep up with this crazy run. I don't know. I guess I'll just keep my MLP's and gold, keep trading the vixx and pick off an occasional short. Hell of alot more work than just going long but I just don't see any other option.

johngoes's picture

Or like the 2004 boxing day tsunami - people were fascinated by the water retreating and followed it out, picking up shells and goodies, only to be swept to their deaths when the tsunami swept back in faster than they could ever run. Anyone following this market up are just picking up shiny trinkets and will loose a lot more than their shorts when this finally breaks.

Caviar Emptor's picture

We all know that the turns are going to be fast and furious. Both ways. The stock market is just a re-cycle bin for money from the Fed. But when big players become illiquid enough they'll dump the recycle bin out ASAP to raise cash

q99x2's picture

I knew there was way too much for banksters to lose on the Euro/USD. There wasn't enough money on the other side if everyone cashed out.

The system is locked within bounds. Once it hits one it has to come back. And, the bounds are getting closer and closer together. Tick Tick Tick

Jlmadyson's picture

It will all kick when they get no Bernake put and ECB easing and cutting next week.

Clearly what folks are realizing in the Euro.

Hey I give Draghi and friends credit as 2-3 cents worth of BS talk is still decent upside right!

Well maybe by 1-2 cents end of day heh.

miker's picture

I disagree.  Draghi is no amateur.  He wouldn't have made those comments without confidence that he was going to act.  In fact, because he made those comments, I believe they will act and soon.

I believe they talked it up today to buy a few days for the announcement.  Probably Monday or Tuesday. 

Everyone has gotten so anesthisized with all the euro bad news over the past couple of years that it's hard to see when the cliff has been reached.  I believe it has.  I think they have to resolve Spain's debt in some substantial way immediately lest they risk a major collapse in confidence.  They may have already waited too long....not sure.

Dollar Bill Hiccup's picture

Stocks are bullet proof, must be that 44% beat ratio on Q2 revenues!

Mr Lennon Hendrix's picture

Biderman looks like a fucking genius right now.  Tyler, keep posting him.  You and he are looking like a couple of rockstars right now.  Bob the Bear?  A fucking genius.  Max Keiser?  Fucking genius.  Fucking genius squad...tally ho!

crawldaddy's picture

really genius, where you think the market ends up 2 years from now?  Hasnt done shit for a decade.  Go ahead trade this market, go ahead think you are the "smart" guy in the room.  

This is nothing but a rigged casino, and unless you are a made man, it wont end well.


You are like an idiot trader in 2007 Japan with the NIkkei at 18ooo,  what possibly could go wrong...

Mr Lennon Hendrix's picture


ALl I am saying is that obviously the weak financial "asset" is fiat so using fiat as a metric to denominate deflation is stupid.  Deflation happened in '07 - '09, and now we are in a hyperinflationary envrionment.  Tens of trillions of fiat currency is created every year, and this will push asset prices higher.  So shorting equity is foolish.  Will it go straight up from here?  No.  The "fiscal Clif" scare will likely push equity down, but then they will raise the debt ceiling and kick the can.  Wash, rinse, repeat.

And as far as what I do for my investments?

Crash JPM - Buy Silver TM

crawldaddy's picture

uhh you couldnt be more wrong. We are still in a delfationary environment,  or has my houses worth doubled along with my take home and no one informed me.


You are clueless

eddiebe's picture

 Lennon, I came to the same conclusion. Stocks are a pretty good looking horse in the glue factory when you compare it to Treasuries and fiat nags. The PM's have been sent to the butcher, but I doubt he will kill them; rather he's saving them for a rainy day.

Mr Lennon Hendrix's picture

Biderman put FB on his conviction buy list at $31/share, never mind he said to buy the IPO.  Biderman is a fucking dunce.

miker's picture

It is foolish to trade anything in this market, especially currencies.  Even most of the BSD's don't know where things are headed fully, except more easing.  But where and how much?

This is a make or break moment for Euro and for other developed economies for that matter.  If Spain goes down (defaults on debt in major way), US, China, Aust. all will be close behind.  You can sense it in the fast change downward in all the numbers.  This thing is accelerating down.

Since they don't have enough money to shore up all the debt and/or will to spend each of their own countries savings, they will have to inflate.  Only way.  Alternative is total collapse of the euro and worse.

crawldaddy's picture

here is the thing. Politicians lie. bankers lie, hell even your loved ones lie, we all lie from time to time.  you know what doesnt lie?  MATH

The PIIGS all are going down.