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EURUSD Soars On Reuters Report That Greek Deal Is Reached... Which Is Same Deal As July 2011

Tyler Durden's picture





 

Yeah, we had the same response as our readers when we saw that freak move in the EURUSD. Apparently, despite the fact that absolutely nothing has been resolved, Reuters just ran a headline that "Euro zone reaches deal on second Greek bailout package." And that is all it took for the EURUSD headline scanning algos to surge by 60 100 pips. That there nothing substantial in it, or that this is merely a rephrasing of the actual Bailout 2 announcement from before, is irrelevant. Here is what the actual Reuters report said.

Euro zone finance ministers struck a deal early on Tuesday for a second bailout programme for Greece that will involve financing of 130 billion euros and aims to cut Greece's debts to 121 percent of GDP by 2020, EU officials said.

 

"The financial volume (of the Greek package) is 130 billion euros and debt-to-GDP (will be) 121 percent. Now it's down to work on the statement," one official involved in the negotiations told Reuters.

 

Another official confirmed that the financing would total 130 billion euros with the aim of reducing Greece's debts from around 160 percent of GDP now to 121 percent by 2020.

And from AP:

The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels - was expected to bring Greece's debt down to 120.5 percent of GDP by 2020, according to the official. That's around the maximum that the International Monetary Fund and the eurozone considered sustainable.

 

Some eurozone ministers had indicated before the meeting that they would not accept a deal that didn't put Greece's debt on a sustainable path. The official spoke on condition of anonymity because a formal announcement was pending.

 

The deal should also give the green light to a related debt relief from private investors, who are expected to take significant losses on Greek bonds they hold.

So just the little matter of the statement, aka the details, which is what has been the stumbling block for the past 6 months. And incidentally, the broad strokes of this announcement is a carbon copy of the second bailout deal reached back in the summer of 2011. In other words, there is nothing substantial to this, and is merely boilerplate. But it was good enough to fool the algos. Now the only question is how long until this latest and greatest deal concoction falls apart again, and the whole farce is repeated all over.

In other news, De Telegraaf reports that the PSI has been agreed on and will reach 75% a haircut on Greek bonds. Translation - next up we have an exchange offer, the failure to reach a voluntary threshold, CACs, and all the fun the trickles down from triggered CDS.

For those bondholders of peripheral debt, as the Greek one is now a lost cause, and will trade down even more, here is what you can expected, courtesy of William Banzai.

 


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Mon, 02/20/2012 - 23:06 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Soaring on bullshit!

Mon, 02/20/2012 - 23:08 | Link to Comment maxmad
maxmad's picture

Don't worry it will collapse by morning!

Mon, 02/20/2012 - 23:13 | Link to Comment TruthInSunshine
TruthInSunshine's picture

People should not fear Skynet.

As we can all now plainly witness, even semi-intelligent humans will have a huge advantage over the machines in terms of lag time when responding to real world events.

Maybe the inherent flaw in Skynet is that it vastly underrates the ability of humans, and especially politicians and economists, to engage in prolific bullshit.

I wonder if Skynet has been able to cull any reality from January's NFP report as provided by the Bureau of Lis & Bullshit.

I think the winning trade that's been in front of our eyes all along is to fade Skynet.

Mon, 02/20/2012 - 23:26 | Link to Comment flacon
flacon's picture

It should be summed up as, instead of Heads I win, tails you loose - Gold, I win. Gold, you loose. 2% inflation - come suck my nuggets!

Mon, 02/20/2012 - 23:31 | Link to Comment I think I need ...
I think I need to buy a gun's picture

gold is up one dollar in us terms on the NEWS!!!!! Someone has left the gold computer the last week its flatlining.......We are on AUTOPILOT Bitchez!!!!! Get your parachutes ready

Mon, 02/20/2012 - 23:32 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold has op/ex to deal with next week, and the fact that the bailout rumors will be refuted, they haven't even had the damn press conference yet.

In other news, Trichet looks pretty cool in a Teddy Boy.

Love me tender, love me true

That's his theme song.  Tender.  Get it? 

Mon, 02/20/2012 - 23:52 | Link to Comment flacon
flacon's picture

From AP: > The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels

 

How can it be a "deal" if the details haven't yet been worked out? Oh, it's one of those kinds of "deals". I getcha. No hand-shake, but a hand-shake promising to hand-shake on the "deal" once it is worked out. Great photo-op of the hand-shake of the promise to shake hands. Got it?! 

 

ONE MONTH TO MARCH 20TH.... tick, tock.... 

Mon, 02/20/2012 - 23:54 | Link to Comment trav7777
trav7777's picture

it'll be like those gov't shutdown budget deals that Dole and Gingrinch ironed out with clitton only to hear Al gore on the radio on during their drive back up Penn denying the whole thing.

Greece will reneg on a deal as soon as they agree to one...they are GREEKS.  They are NOT in the business of honesty or trying to actually work.

Mon, 02/20/2012 - 23:56 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

lQQk!

it's nessie!

i see nessie!

Mon, 02/20/2012 - 23:50 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

"How many fingers, Winston?"

Tue, 02/21/2012 - 03:21 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Four.  I want to see five.

Mon, 02/20/2012 - 23:52 | Link to Comment trebuchet
trebuchet's picture

+2    oh so good

Tue, 02/21/2012 - 00:06 | Link to Comment TruthInSunshine
TruthInSunshine's picture

..

Tue, 02/21/2012 - 00:06 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Well, despite all the naysayers, The Associated Press, that bastion of fine journalistic reporting and parsing of detail, is reporting that this is a done deal, and even that Greece received "$172 billion in extra bailout loans."

 

Provisional Deal for $172 Billion Bailout for Greece By THE ASSOCIATED PRESS 1 minute ago

The countries that use the euro reached an agreement early Tuesday to hand Greece $172 billion in extra bailout loans, a European Union diplomat said.

 

Bullshit!...errr.....I meant....Bullish!

Tue, 02/21/2012 - 00:15 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Look, I'm a robot!  I'm a row-bot!  Row-bot....row-bot.....

Mon, 02/20/2012 - 23:28 | Link to Comment JPM Hater001
JPM Hater001's picture

"Don't worry it will collapse by morning!"

Um, no, this will bleed and fester for a good week before we see the real consequences.

Mon, 02/20/2012 - 23:39 | Link to Comment Buck Johnson
Buck Johnson's picture

Oh I agree with you, this will most definitely collapse by morning or the latest afternoon.  Because nothing in this for one is different from what was pushed last summer.  And two, you can bet your last dollar that a big chunk of the debt holders won't go for this bond reduction.  They have a board and investors to think about for one and how can they go back to their fund and say they did good corporate work when they paid for insurance on the bond and they didn't take it because???????  They didn't take it because they where warned that they would get nothing which is a lie unless AIG and the other financial firms who sold insurance to these bonds (most from the US) are insolvent.  They never said that or will say that because that  would put in danger almost all bonds on this planet that these companies insured, they just hinted.

 

Tue, 02/21/2012 - 10:41 | Link to Comment Zero Govt
Zero Govt's picture

This Greek barge is sunk

..the Eurocrats are still re-arranging the deckchairs and, stiff upper lip, the band of civil servants plays on like all will be well

..the jobless (worthless) in Brussels and Strasbourg should over-take and out-strip Greek 'austerity' (lay-offs of lay-abouts) in the not too distant future.. crying shame that

Mon, 02/20/2012 - 23:16 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

Tweet from minutes ago that 'Private Debt Holders' will be "Asked" to take a 53% haircut on holdings.

I cannot see that happening, at all.

EDIT: More from CNBC

 

"Private sector holders of Greek debt are expected to take losses of up to 53.5 percent on the nominal value of their bonds as part of a debt exchange that will reduce Greece's debts by around 100 billion euros.

 Previously they were expected to take a 50 percent nominal writedown, which equated to around a 70 percent loss on the net present value of the bonds.

 The debt swap will be financed in part via "sweeteners" that will be paid to the private bondholders, who will also get 30-year bonds in exchange for the bonds they give up."

 

Someone explain to me HOW this does not trigger a 'Credit Event'?

Mon, 02/20/2012 - 23:20 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Apparently it doesn't trigger a credit event because they say it doesn't....pretty simple really.  

Mon, 02/20/2012 - 23:26 | Link to Comment JPM Hater001
JPM Hater001's picture

Looks like I picked the wrong week to quit Qualudes.

Tue, 02/21/2012 - 00:00 | Link to Comment TruthInSunshine
TruthInSunshine's picture

It looks like a lot of 'investors' picked the wrong week to swim naked.

Mon, 02/20/2012 - 23:50 | Link to Comment spastic_colon
spastic_colon's picture

No credit event because it was "voluntary"

Tue, 02/21/2012 - 02:36 | Link to Comment Kiwi Pete
Kiwi Pete's picture

This must collapse the whole CDS market. Who will pay good money to buy an insurance product that doesn't pay out when the product it is supposed to be covering fails?

It's like if I buy fire insurance on my house which burns to the ground and the insurance company saying it is still actually there so not claimable. Or, hey, the doorpost is still there so not totally destroyed. What sort of bizzaro world is this? I feel like I'm taking crazy pills.

http://www.youtube.com/watch?v=wC8y0HoopVE

 

Tue, 02/21/2012 - 09:02 | Link to Comment Vince Clortho
Vince Clortho's picture

Hey, if nobody calls the bluff, we can all pretend it's real!

Mon, 02/20/2012 - 23:29 | Link to Comment ISEEIT
ISEEIT's picture

No insult intended, but in this "radical free market", This fundamentalist "capitalist system", These wanna be gangsters just do as they like. Law be damned.

It isn't about the law today you see. It is about the "transformation" of law as we react to the "changing environment".

It is a criminal gang.

What else did you expect?

The 'free' market has failed my ass. These sick mobsters ought to be made into hotdogs and sold at OWS protest.

Tue, 02/21/2012 - 00:26 | Link to Comment MinnesotaMD
MinnesotaMD's picture

This is the antithesis of free market. How are you defining "free market"? Central governing authority CYA=free market?

Mon, 02/20/2012 - 23:10 | Link to Comment stocktivity
Mon, 02/20/2012 - 23:11 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

This time it is different.....until the next time. 

Mon, 02/20/2012 - 23:16 | Link to Comment Eireann go Brach
Eireann go Brach's picture

On a scale of world priorities, keeping Obama away from a 2nd term in office still dwarfs everything else including Greece!

Tue, 02/21/2012 - 01:43 | Link to Comment amadeusb4
amadeusb4's picture

I'm sure Mittens will do a splendid job of keeping teh gays from marrying and slashing taxes on magical uderwear.

Mon, 02/20/2012 - 23:22 | Link to Comment longdong silver
longdong silver's picture

this is bullish Silver...

At least till NY open

Mon, 02/20/2012 - 23:24 | Link to Comment I think I need ...
I think I need to buy a gun's picture

that should be bullish for us stocks

Tue, 02/21/2012 - 00:04 | Link to Comment SAT 800
SAT 800's picture

With regard to the FX chart; shortcovering anyone? No?, how about tennis.

Tue, 02/21/2012 - 00:25 | Link to Comment Douglasnew
Douglasnew's picture

Central Banks can continue their policies to keep the Status Quo for only so long. The rubber meets the road with food and oil prices worldwide. Bernanke and his ECB counterparts know that the policy of QE and rewarding the same players that caused this mess and propping up Stocks does not help the average person that doesn't own much of these assets. Serious erosion in standards of living in the Western economies will spell the same social ills we are seeing in Greece. Just because they make a deal to keep the Status Quo happy will not quiet the masses. The middle class is being gutted. Every dog will have his day.

Mon, 02/20/2012 - 23:08 | Link to Comment AC_Doctor
AC_Doctor's picture

Fucking Ground Hog Day again!

Mon, 02/20/2012 - 23:11 | Link to Comment JW n FL
JW n FL's picture

 

 

aint that thr truth!

Mon, 02/20/2012 - 23:15 | Link to Comment Desert Irish
Desert Irish's picture

I'm sick and tired of popcorn - default now bitchez!!!

Mon, 02/20/2012 - 23:30 | Link to Comment JPM Hater001
JPM Hater001's picture

You should study tantric sex...the wife will thank you. This is nothing more than tantric sexual economics.

Mon, 02/20/2012 - 23:43 | Link to Comment Waffen
Waffen's picture

Can one perform tantric sex after having zionists convince pediatricians to hack and slash our penisis?  Yes I am angry that my wang was cut without my say in the matter.

Mon, 02/20/2012 - 23:56 | Link to Comment JPM Hater001
JPM Hater001's picture

Let's be honest... You are more bothered by the prospect you lost length...alas it was never there.

Tue, 02/21/2012 - 00:13 | Link to Comment Waffen
Waffen's picture

No I am far more concenred about losing 90% of my natural sensitivity.

Mon, 02/20/2012 - 23:59 | Link to Comment Hugo Chavez
Hugo Chavez's picture

Oh god what a freak.

Cut wangs are much better looking and preferred by women rather than a smegma filled sausage casing. Nasty.

Tue, 02/21/2012 - 00:19 | Link to Comment Waffen
Waffen's picture

Oh god what a freak.

Cut labia and clitorus are much better lookign and preferred by men rathern then protruding, unsightly skin folds. Nasty.

 

 

Women throughout history seemed to do just fine with smegma filled sausage casings(do you bathe?) BTW you might want to inquire with your European cousins as to if they have such issues?

btw Canada Australia and New Zealand recently banned circumcision(for non medical reasons) and Eruope has steadly held an under 5% circumcision rate.

Cutting off parts of peoples bodies without their consent is wrong.

Tue, 02/21/2012 - 00:31 | Link to Comment MinnesotaMD
MinnesotaMD's picture

Penile bowenoid cancer rate, and juvenile Urinary tract infection rates are higher in uncircumcised males. And you are breaking covenant with God.

Tue, 02/21/2012 - 00:39 | Link to Comment Waffen
Waffen's picture

well in that case, cut kids penisis, despite the fact that close to 200 children die from botched circumcisions a year.

lots of women die from breast cancer, why dont we just remove all the breast tissue from new born girls? breast milk is passe anyhow we still have formula, so they really arent needed.

Tue, 02/21/2012 - 01:17 | Link to Comment MinnesotaMD
MinnesotaMD's picture

Say that again, I got lost staring at your icon.

Tue, 02/21/2012 - 00:08 | Link to Comment FeralSerf
FeralSerf's picture

Have you inquired about the possiblilty of a skin graft?

 

Tue, 02/21/2012 - 01:20 | Link to Comment MinnesotaMD
MinnesotaMD's picture

People stretch the skin. Grafting unlikely to be functional due to restrictive scarring. Ask John Bilbo Bobbit, someone stole his precious.

Tue, 02/21/2012 - 06:53 | Link to Comment grunk
grunk's picture

They say our love won't pay the Krauts,

Before it's earned the money's gone to bailouts.

I guess that's so, Goldman's running the show,

But at least I got a piece of concrete to throw.

Babe. I got you, Babe. I got you Babe.  

Mon, 02/20/2012 - 23:08 | Link to Comment daccord
daccord's picture

robos FTW 

Mon, 02/20/2012 - 23:08 | Link to Comment holdbuysell
holdbuysell's picture

Drama goes up, trust goes down.

Mon, 02/20/2012 - 23:17 | Link to Comment Dr. Engali
Dr. Engali's picture

You're making the assumption that there was trust to begin with.

Mon, 02/20/2012 - 23:09 | Link to Comment mktsrmanipulated
mktsrmanipulated's picture

sec should charge news agencies with mkt manipulation for false and misleading statements

Mon, 02/20/2012 - 23:15 | Link to Comment dracos_ghost
dracos_ghost's picture

Another official confirmed that the financing would total 130 billion euros with the aim of reducing Greece's debts from around 160 percent of GDP now to 121 percent by 2020, but cautioned that drafting of the deal was only just starting.

 

It would be nice if the algos would scan beyond a headline.

Mon, 02/20/2012 - 23:33 | Link to Comment JPM Hater001
JPM Hater001's picture

Let the algo's scan this... Our debt...true debt is about the same as Greece all in.

I'm having a really hard time as a libertarian not wanting to shut the fuckers down.

But I show restraint. They will destroy themselves just like the free market does.

Mon, 02/20/2012 - 23:40 | Link to Comment Milestones
Milestones's picture

Your green/red thing ain't working--green anyway.     Milestones

Mon, 02/20/2012 - 23:20 | Link to Comment SAT 800
SAT 800's picture

sec? you mean the SEC? OH, God knows they wouldn't want any false and misleading statements. Are you for real?

Mon, 02/20/2012 - 23:25 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Instead, the news agencies are charging the SEC for the service.

Mon, 02/20/2012 - 23:28 | Link to Comment Quaderratic Probing
Quaderratic Probing's picture

All Newspapers are run by Farsatronic Software a division of Skynet Inc

Mon, 02/20/2012 - 23:09 | Link to Comment maxmad
maxmad's picture

Germany already talking about not backing this deal, Bitchez!

Mon, 02/20/2012 - 23:14 | Link to Comment LongSoupLine
LongSoupLine's picture

yep, 60 pips on rumor and 30 pip drop when Germany says, "F-off!".  As always, a 30 pip win for the shithead banking crooks.

Mon, 02/20/2012 - 23:21 | Link to Comment candyman
candyman's picture

Stupid f'ing Germans never learn. All talk ,no action. And I love Germany.

Mon, 02/20/2012 - 23:17 | Link to Comment stocktivity
stocktivity's picture

link?

Mon, 02/20/2012 - 23:50 | Link to Comment ISEEIT
ISEEIT's picture

Talk is like poo.

Everybody produces it, and no matter how you may attempt to make yours seem different, It all still smells like SHIT.

Mon, 02/20/2012 - 23:09 | Link to Comment bob_dabolina
bob_dabolina's picture

Yeeee haawhhhhh

Mon, 02/20/2012 - 23:24 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Look, I'm a robot!  I'm a robot! 

Mon, 02/20/2012 - 23:10 | Link to Comment TradingJoe
TradingJoe's picture

Hah hombres you call EUR/USD 1.32xx and S&P +6.x soaring ?!?! WTF?!?! Give the fools some time to read through the "statement" :))) eh?!

Mon, 02/20/2012 - 23:11 | Link to Comment Dr. Engali
Dr. Engali's picture

I would love to have control of what comes out of Reuters and the associated press. I would pump out headlines that would just fuck with the robots. They wouldn't know which way to turn.

Mon, 02/20/2012 - 23:22 | Link to Comment pods
pods's picture

Now THAT is something that would really stir the pot.  Anonymous?

pods

Mon, 02/20/2012 - 23:47 | Link to Comment Dr. Engali
Dr. Engali's picture

I watched Vendetta today. Needed a little pick me up.

Mon, 02/20/2012 - 23:56 | Link to Comment DaveyJones
DaveyJones's picture

why not, they've already made it a battlefield and a crime scene 

Tue, 02/21/2012 - 00:53 | Link to Comment swissbene
swissbene's picture

if not creative control then at least some disruption to the careful choreography and fraud.

Mon, 02/20/2012 - 23:11 | Link to Comment infiniti
infiniti's picture

EURUSD approaching 1.33

 

/NQ up 10+ points since the news, because we all realize that iPad shipments were hanging in the balance

Mon, 02/20/2012 - 23:14 | Link to Comment TradingJoe
TradingJoe's picture

We've been at 1.33 not long ago only to back off again!!! Nice knee jerk reaction though, bet won't hold for long!

TVIX COMPANEROS!

Mon, 02/20/2012 - 23:17 | Link to Comment LongSoupLine
LongSoupLine's picture

yay, just put my DOW 13k hat on...then took it off and shit on it.

Mon, 02/20/2012 - 23:41 | Link to Comment JPM Hater001
JPM Hater001's picture

It's a hat...much better to shit in...

Mon, 02/20/2012 - 23:13 | Link to Comment navy62802
navy62802's picture

And there were laughs all around ..

Mon, 02/20/2012 - 23:12 | Link to Comment rosebud
rosebud's picture

sore loser channel right here

Mon, 02/20/2012 - 23:21 | Link to Comment maxmad
maxmad's picture

Market is back down to where it was before the announcement., Nothing gained, just smoke!

Mon, 02/20/2012 - 23:42 | Link to Comment JPM Hater001
JPM Hater001's picture

It's a sled...there, now go away.

Mon, 02/20/2012 - 23:58 | Link to Comment DaveyJones
DaveyJones's picture

but given his post, it should be a joint

Mon, 02/20/2012 - 23:13 | Link to Comment ISEEIT
ISEEIT's picture

Fake is the new black.

Fuck this game.

Absurd.

Mon, 02/20/2012 - 23:13 | Link to Comment swissbene
swissbene's picture

congrats to those frontrunning the headline. anyone know how to join this program? no info/signup on the reuters site.

Mon, 02/20/2012 - 23:23 | Link to Comment pods
pods's picture

As Carlin said, it's a big fucking club, and you and me ain't in it!

pods

Tue, 02/21/2012 - 01:47 | Link to Comment I Got Worms
I Got Worms's picture

"It's called the American Dream, cuz you have to be asleep to believe it."

Boy, we sure could use Carlin and Hicks around these days. RIP

Mon, 02/20/2012 - 23:13 | Link to Comment maxmad
maxmad's picture

so they needed 245 billion Euros, and only got 130!!!  And now they aren't sure they'll even get that!

Mon, 02/20/2012 - 23:13 | Link to Comment BobPaulson
BobPaulson's picture

Acid flashback? I dunno. I think there was a Star Trek TNG episode where they kept going in a loop in time. Mr. Data, get us the hell out of here.

Tue, 02/21/2012 - 00:11 | Link to Comment CAUSE_EFFECT
CAUSE_EFFECT's picture

I believe it was referred to as a causality loop, and even Mr. Data did not get it until he was radically modified in some matrix like manner. Glitch in the program - Deja Vu!!!

Mon, 02/20/2012 - 23:14 | Link to Comment WiretapWilly
WiretapWilly's picture

Hasn't the Greek-fuelled imminent collapse been coming since 1,100 S&P?  *yawn*

Mon, 02/20/2012 - 23:29 | Link to Comment ekm
ekm's picture

At the cost of printing 1 trillion of euros?

I don't know if you know, but "clinically dead" human beings have their organs still working via battery at the hospital, but "brain dead".

All Europe is brain dead right now. Let's see how long will the battery of euros last.

Mon, 02/20/2012 - 23:14 | Link to Comment chump666
chump666's picture

The market is dumb.  Algos gamed both the AUD and EUR at the same time, sold the AUD 2cents down, then went nuts on the EUR.  AUD then rebounded.

Confused and panic buying.  This market is going to be flushed soon.  Just crazy.

Mon, 02/20/2012 - 23:17 | Link to Comment ekm
ekm's picture

"In individuals, insanity is rare; but in groups, parties, nations and epochs it is the rule" – Nietzsche

Mon, 02/20/2012 - 23:19 | Link to Comment SAT 800
SAT 800's picture

Uhm, hmm.

Mon, 02/20/2012 - 23:20 | Link to Comment TradingJoe
TradingJoe's picture

Ja, der alte Friedrich, immer am spass haben :)))!

Mon, 02/20/2012 - 23:23 | Link to Comment ekm
ekm's picture

I pasted it on google translate.

Danke schön

Mon, 02/20/2012 - 23:26 | Link to Comment TradingJoe
TradingJoe's picture

Kudos at least you tried :))) my mom was German god bless her (bailout) heart :)))!

Mon, 02/20/2012 - 23:34 | Link to Comment ekm
ekm's picture

God bless her, for sure!

I actually studied german on my own a long long time ago. Too tough.

Mon, 02/20/2012 - 23:45 | Link to Comment SAT 800
SAT 800's picture

Ach; there's no need to listen to the old one. We are all so modern. We wear suits and ties. We are rational. We deny the "Jewish" psychology. We have no dark emotions. We have a leader. Our leader will see us through! The will is everything! The triumph of the will! "The will of the people is supreme"; it doesn';t matter if the Euro is worthless; we will triumph over all! Pessimism is a crime against the State! And then---and then; the awful time when the ears cannot hear, and the buildings are falling into the street and the sky is on fire; what went wrong? what went wrong?

Mon, 02/20/2012 - 23:57 | Link to Comment ekm
ekm's picture

Even crude oil had a jump. Insane.

Mon, 02/20/2012 - 23:29 | Link to Comment chump666
chump666's picture

Nietzshe is right.  In fact he was right about a lot of things.  But the market is now insane, a viral insanity.  How do you trade this?  Well, the insane usually collapse, the EUR meltup and the AUD meltdown (then meltsup) is a warning sign (major flash crash coming?)  right there.

But back to insanity, I can't see this going on and on and on...it's gotta give.  Hence the flush.  When?  I dunno.  Maybe soon.  Just watch your top ranges.  Some nut may want to join the party and run a long position. He will probably be killed.  This market looks frightening.

Mon, 02/20/2012 - 23:32 | Link to Comment ekm
ekm's picture

THERE IS NO WAY TO TIME INSANITY.

When they leave, they just leave at the same time and they will.

Mon, 02/20/2012 - 23:40 | Link to Comment TradingJoe
TradingJoe's picture

Me think TVIX at 15 bucks or less is just the cure,eh?!

Tue, 02/21/2012 - 00:04 | Link to Comment chump666
chump666's picture

if the s&p retests feb 5 lows at 1343, breaks that, we have a correction.  doesn't.  gotta set shorts from the top again.  but the tvix and vix are scaping along lows, which is bearish signal. 

 

Mon, 02/20/2012 - 23:56 | Link to Comment smb12321
smb12321's picture

The best indicator of market activity is a quick glance at options.  These - more than any stock or sector -represent future trends.  Thus, when silver peaks, the volume on AU put options sky rockets.  (Option sentiment has spiked upwards)

Mon, 02/20/2012 - 23:59 | Link to Comment ekm
ekm's picture

That is correct in "normal market". This is no market. This is just primary dealers = plunge protection team trading with each other like in 1929.

- They will either run out of money - no more fed printing when congress orders them so

- Or they will end up buying up the whole market.

Since there are no more suckers, either way will lead to sudden collapse, 1987 style.

Mon, 02/20/2012 - 23:15 | Link to Comment AndrewJackson
AndrewJackson's picture

So besides these dumb announcements and meetings, what are the actual real barriers that must be crossed before said 130 billion can be distributed? Does the bailout have to be ratified by each country or something of that nature? 

Mon, 02/20/2012 - 23:15 | Link to Comment Manthong
Manthong's picture

They are celebrating the weaker dollar at the Fed right now.. all is proceeding as planned.

The German financial officials are all crying in their beer. 

Mon, 02/20/2012 - 23:18 | Link to Comment maxmad
maxmad's picture

Exactly!  This is why the Krauts won't go along with this deal!

Mon, 02/20/2012 - 23:19 | Link to Comment chinaguy
chinaguy's picture

Rally never gained any traction, already falling back. Idiot robots.

Mon, 02/20/2012 - 23:23 | Link to Comment TradingJoe
TradingJoe's picture

Yep, already backing off hehehehehe what a joke and I hoped for some good laughs, oh well not what it used to be anymore, go figure :((!

Mon, 02/20/2012 - 23:21 | Link to Comment AC_Doctor
AC_Doctor's picture

70% haircuts mofo's and this is not going to trigger CDS's and CAC's????

Mon, 02/20/2012 - 23:24 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's not a default, it's a haircut.  C'mon!  Why aren't you guys happy?  Rally time!  Rally time!  Ooha-oowa!!!  Ooha-oowa!!!!  Come on, bitchez!  Oohwa-oohwa!!!!

Mon, 02/20/2012 - 23:54 | Link to Comment JPM Hater001
JPM Hater001's picture

When you end up a eunich it doesn't mean the circumcision was successful...

Thats gotta be worth +40

Mon, 02/20/2012 - 23:19 | Link to Comment Golovia
Golovia's picture

Where are the EUR 130 Billion coming from? How is Greece going to cut the deficit to 121% of GDP?

Mon, 02/20/2012 - 23:20 | Link to Comment LongSoupLine
LongSoupLine's picture

ahhh, bingo!

Mon, 02/20/2012 - 23:22 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

"How is Greece going to cut the deficit to 121% of GDP?"

 

Why, with HOPE-N-CHANGE Unicorns, of course!

The United Federation of Planets should be arriving with them just any day now.

Just ask anyone in the newsrooms at NBC/MSNBC/CNBC!

Mon, 02/20/2012 - 23:25 | Link to Comment dracos_ghost
dracos_ghost's picture

Sssshhhhh, ignore the man behind the curtain, all is well in Oz.

Mon, 02/20/2012 - 23:34 | Link to Comment HoofHearted
HoofHearted's picture

Wait wait wait Golovia...they're cutting the deficit to 121% of GDP? Here I thought it was the debt. Well, shit, even the Greeks can handle a deficit of 121% of GDP.

Tue, 02/21/2012 - 00:07 | Link to Comment Hugo Chavez
Hugo Chavez's picture

I would love a permanent sustainable subsidized deficit of 121 percent of my gross domestic product.

Mon, 02/20/2012 - 23:48 | Link to Comment smb12321
smb12321's picture

As posted in other blogs, the original bailout was with borrowed money (or was it leveraged?)  This one will require actual Euros - not an accounting trick.  And since Germany is increasingly hesitant about throwing its money into the black hole of PIIGS debt, it can only come via printing (however you want to phrase that).

Mon, 02/20/2012 - 23:20 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Tomorrow, Timmah battles the Algo Machines from Hell!  Muahahahahaha!!!!!!

Mon, 02/20/2012 - 23:20 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

If Germany said no, how does this proceed?

Mon, 02/20/2012 - 23:22 | Link to Comment LongSoupLine
LongSoupLine's picture

It will promptly move to the next rumor du jour

Mon, 02/20/2012 - 23:39 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What's on the menu at next week's meeting?  Muah????

Mon, 02/20/2012 - 23:28 | Link to Comment maxmad
maxmad's picture

It doesn't! 

Mon, 02/20/2012 - 23:50 | Link to Comment SAT 800
SAT 800's picture

Through the wormhole, on a left-handed corkscrew. this is no longer a rational process. It is human beings at their finest; believing things. they are very good at believing things.

Mon, 02/20/2012 - 23:21 | Link to Comment williambanzai7
williambanzai7's picture

OFFICIAL BONDHOLDER HAIRCUT GUIDE

Mon, 02/20/2012 - 23:23 | Link to Comment LongSoupLine
LongSoupLine's picture

William, just when I think you can't top yourself...

Mon, 02/20/2012 - 23:33 | Link to Comment Manthong
Manthong's picture

WB, who gets the Brazilian in the Banzai Boutique?

Mon, 02/20/2012 - 23:36 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Don't say LeGarde, don't say LeGarde, don't say LeGarde, don't say LeGarde....

Mon, 02/20/2012 - 23:54 | Link to Comment thedrickster
thedrickster's picture

Merkel?

Mon, 02/20/2012 - 23:29 | Link to Comment uno
uno's picture

no mullet!  or the Dyke aka I hate Men butch haircut

Mon, 02/20/2012 - 23:31 | Link to Comment chump666
chump666's picture

lol

"The Ceaser."

Tue, 02/21/2012 - 00:06 | Link to Comment Dr. Engali
Dr. Engali's picture

Where's the Obama cut ? And don't say Corzine has his cut :)

Tue, 02/21/2012 - 07:58 | Link to Comment dvsteenk
dvsteenk's picture

That must be Trichet, now that he's retired, he opened a hair salon

Mon, 02/20/2012 - 23:22 | Link to Comment tmosley
tmosley's picture

I am so ready for this shit to be over.

Mon, 02/20/2012 - 23:30 | Link to Comment thedrickster
thedrickster's picture

I guess Trav doesn't like this.

Tue, 02/21/2012 - 00:16 | Link to Comment DaveyJones
DaveyJones's picture

cause he didn't blame it on "the blacks"

Mon, 02/20/2012 - 23:57 | Link to Comment SAT 800
SAT 800's picture

Well then you're readier than 98% of the population, who don't even know that "something" is going to be over. "We who are about to die, salute you Caesar".

Mon, 02/20/2012 - 23:47 | Link to Comment chindit13
chindit13's picture

Over/under on Euphoria is 90 minutes.

Mon, 02/20/2012 - 23:25 | Link to Comment tobinajwels
tobinajwels's picture

So what happens when the market opens tomorrow? The mainstream media keeps saying a deal is reached? I still dont get it? Did the bond holders agree to take a haircut? Could someone please explain thanks!

Mon, 02/20/2012 - 23:28 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

The best thing to understand is that you need to be out of "the market".  Just don't play anymore.  Buy bank FDIC insured CDs.  Buy bonds.  Buy rental real estate for Section 8 vouchers.

There is no longer a stock market.  It's no longer a place where people try to find value in companies.  Now it's a place where computers manipulate prices and the companies themselves are irrelevant.

Mon, 02/20/2012 - 23:43 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

In the Obama/Soros-World Banker Bailouts Economy, it's best to go long in Hookers, Blow, And Booze.

Anything that can be purchased with an EBT/SNAP card.

Mon, 02/20/2012 - 23:54 | Link to Comment Uber Vandal
Uber Vandal's picture

In regards to FDIC protection:

http://news.firedoglake.com/2011/10/18/the-next-bailout-bofa-moves-deriv...

Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.

The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

And, you might want to keep an eye on this list, just to make sure that your bank is not on it one Friday....

http://www.fdic.gov/bank/individual/failed/banklist.html

 

In regards to Section 8 housing, are you implying that one should be a land lord?

Have you ever spoken to someone that was or is a land lord, and how often the tenants have more rights than you?

 

And bonds... Well, things did not go as planned for GM bond holders, didn't it.

 

In short, there is no safety.

Tue, 02/21/2012 - 00:07 | Link to Comment DaveyJones
DaveyJones's picture

There is a "market" but it's the one where ignorant pigs go to get slaughtered

Mon, 02/20/2012 - 23:33 | Link to Comment stocktivity
stocktivity's picture

"So what happens when the market opens tomorrow?"

Market opens over 13000 and the CNBC talking heads gush over each other and get so excited they spit in each others face (especially Cramer and Pisani).

Mon, 02/20/2012 - 23:44 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

"Market opens over 13000 and the CNBC talking heads gush over each other"

 

While praising the MEdia MEssiah, and doing the Obama Bump on live TV.

Mon, 02/20/2012 - 23:27 | Link to Comment navy62802
navy62802's picture

Euro soaring? Try EVERYTHING. Everything is soaring right now.

Mon, 02/20/2012 - 23:27 | Link to Comment navy62802
navy62802's picture

Riots in Greece in the next 24 hours.

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