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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 | 2179630 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Soaring on bullshit!

Mon, 02/20/2012 - 23:08 | 2179633 maxmad
maxmad's picture

Don't worry it will collapse by morning!

Mon, 02/20/2012 - 23:13 | 2179653 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 | 2179710 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 | 2179731 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 | 2179746 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 | 2179799 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 | 2179817 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 | 2179837 slewie the pi-rat
slewie the pi-rat's picture


it's nessie!

i see nessie!

Mon, 02/20/2012 - 23:50 | 2179802 The Big Ching-aso
The Big Ching-aso's picture



"How many fingers, Winston?"

Tue, 02/21/2012 - 03:21 | 2180182 Winston Smith 2009
Winston Smith 2009's picture

Four.  I want to see five.

Mon, 02/20/2012 - 23:52 | 2179814 trebuchet
trebuchet's picture

+2    oh so good

Tue, 02/21/2012 - 00:06 | 2179874 TruthInSunshine
TruthInSunshine's picture


Tue, 02/21/2012 - 00:06 | 2179878 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 | 2179905 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 | 2179733 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 | 2179769 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 | 2180667 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 | 2179641 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 | 2179689 SHEEPFUKKER

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

Mon, 02/20/2012 - 23:26 | 2179725 JPM Hater001
JPM Hater001's picture

Looks like I picked the wrong week to quit Qualudes.

Tue, 02/21/2012 - 00:00 | 2179858 TruthInSunshine
TruthInSunshine's picture

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

Mon, 02/20/2012 - 23:50 | 2179801 spastic_colon
spastic_colon's picture

No credit event because it was "voluntary"

Tue, 02/21/2012 - 02:36 | 2180152 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.


Tue, 02/21/2012 - 09:02 | 2180419 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 | 2179737 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 | 2179945 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 | 2179643 stocktivity
Mon, 02/20/2012 - 23:11 | 2179649 SHEEPFUKKER

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

Mon, 02/20/2012 - 23:16 | 2179674 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 | 2180108 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 | 2179705 longdong silver
longdong silver's picture

this is bullish Silver...

At least till NY open

Mon, 02/20/2012 - 23:24 | 2179718 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 | 2179869 SAT 800
SAT 800's picture

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

Tue, 02/21/2012 - 00:25 | 2179941 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 | 2179632 AC_Doctor
AC_Doctor's picture

Fucking Ground Hog Day again!

Mon, 02/20/2012 - 23:11 | 2179648 JW n FL
JW n FL's picture



aint that thr truth!

Mon, 02/20/2012 - 23:15 | 2179673 Desert Irish
Desert Irish's picture

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

Mon, 02/20/2012 - 23:30 | 2179742 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 | 2179785 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 | 2179838 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 | 2179897 Waffen
Waffen's picture

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

Mon, 02/20/2012 - 23:59 | 2179851 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 | 2179924 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 | 2179955 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 | 2179967 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 | 2180073 MinnesotaMD
MinnesotaMD's picture

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

Tue, 02/21/2012 - 00:08 | 2179885 FeralSerf
FeralSerf's picture

Have you inquired about the possiblilty of a skin graft?


Tue, 02/21/2012 - 01:20 | 2180080 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 | 2180263 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 | 2179634 daccord
daccord's picture

robos FTW 

Mon, 02/20/2012 - 23:08 | 2179635 holdbuysell
holdbuysell's picture

Drama goes up, trust goes down.

Mon, 02/20/2012 - 23:17 | 2179680 Dr. Engali
Dr. Engali's picture

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

Mon, 02/20/2012 - 23:09 | 2179638 mktsrmanipulated
mktsrmanipulated's picture

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

Mon, 02/20/2012 - 23:15 | 2179670 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 | 2179754 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 | 2179768 Milestones
Milestones's picture

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

Mon, 02/20/2012 - 23:20 | 2179690 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 | 2179723 Schmuck Raker
Schmuck Raker's picture

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

Mon, 02/20/2012 - 23:28 | 2179735 Quaderratic Probing
Quaderratic Probing's picture

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

Mon, 02/20/2012 - 23:09 | 2179640 maxmad
maxmad's picture

Germany already talking about not backing this deal, Bitchez!

Mon, 02/20/2012 - 23:14 | 2179669 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 | 2179696 candyman
candyman's picture

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

Mon, 02/20/2012 - 23:17 | 2179676 stocktivity
stocktivity's picture


Mon, 02/20/2012 - 23:50 | 2179796 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 | 2179642 bob_dabolina
bob_dabolina's picture

Yeeee haawhhhhh

Mon, 02/20/2012 - 23:24 | 2179721 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Look, I'm a robot!  I'm a robot! 

Mon, 02/20/2012 - 23:10 | 2179647 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 | 2179650 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 | 2179700 pods
pods's picture

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


Mon, 02/20/2012 - 23:47 | 2179794 Dr. Engali
Dr. Engali's picture

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

Mon, 02/20/2012 - 23:56 | 2179841 DaveyJones
DaveyJones's picture

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

Tue, 02/21/2012 - 00:53 | 2180016 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 | 2179651 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 | 2179667 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!


Mon, 02/20/2012 - 23:17 | 2179675 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 | 2179774 JPM Hater001
JPM Hater001's picture

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

Mon, 02/20/2012 - 23:13 | 2179656 navy62802
navy62802's picture

And there were laughs all around ..

Mon, 02/20/2012 - 23:12 | 2179657 rosebud
rosebud's picture

sore loser channel right here

Mon, 02/20/2012 - 23:21 | 2179694 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 | 2179776 JPM Hater001
JPM Hater001's picture

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

Mon, 02/20/2012 - 23:58 | 2179850 DaveyJones
DaveyJones's picture

but given his post, it should be a joint

Mon, 02/20/2012 - 23:13 | 2179659 ISEEIT
ISEEIT's picture

Fake is the new black.

Fuck this game.


Mon, 02/20/2012 - 23:13 | 2179661 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 | 2179708 pods
pods's picture

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


Tue, 02/21/2012 - 01:47 | 2180112 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 | 2179662 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 | 2179663 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 | 2179854 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 | 2179664 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 | 2179739 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 | 2179668 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 | 2179679 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 | 2179683 SAT 800
SAT 800's picture

Uhm, hmm.

Mon, 02/20/2012 - 23:20 | 2179687 TradingJoe
TradingJoe's picture

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

Mon, 02/20/2012 - 23:23 | 2179713 ekm
ekm's picture

I pasted it on google translate.

Danke schön

Mon, 02/20/2012 - 23:26 | 2179726 TradingJoe
TradingJoe's picture

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

Mon, 02/20/2012 - 23:34 | 2179757 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 | 2179788 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 | 2179843 ekm
ekm's picture

Even crude oil had a jump. Insane.

Mon, 02/20/2012 - 23:29 | 2179734 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'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 | 2179747 ekm
ekm's picture


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

Mon, 02/20/2012 - 23:40 | 2179771 TradingJoe
TradingJoe's picture

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

Tue, 02/21/2012 - 00:04 | 2179870 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 | 2179839 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 | 2179856 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 | 2179671 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 | 2179672 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 | 2179681 maxmad
maxmad's picture

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

Mon, 02/20/2012 - 23:19 | 2179682 chinaguy
chinaguy's picture

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

Mon, 02/20/2012 - 23:23 | 2179706 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 | 2179684 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 | 2179717 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 | 2179822 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 | 2179685 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 | 2179693 LongSoupLine
LongSoupLine's picture

ahhh, bingo!

Mon, 02/20/2012 - 23:22 | 2179702 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 | 2179722 dracos_ghost
dracos_ghost's picture

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

Mon, 02/20/2012 - 23:34 | 2179756 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 | 2179880 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 | 2179797 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 | 2179688 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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

Mon, 02/20/2012 - 23:20 | 2179692 CrashisOptimistic
CrashisOptimistic's picture

If Germany said no, how does this proceed?

Mon, 02/20/2012 - 23:22 | 2179699 LongSoupLine
LongSoupLine's picture

It will promptly move to the next rumor du jour

Mon, 02/20/2012 - 23:39 | 2179770 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 | 2179715 maxmad
maxmad's picture

It doesn't! 

Mon, 02/20/2012 - 23:50 | 2179803 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 | 2179697 williambanzai7
williambanzai7's picture


Mon, 02/20/2012 - 23:23 | 2179711 LongSoupLine
LongSoupLine's picture

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

Mon, 02/20/2012 - 23:33 | 2179745 Manthong
Manthong's picture

WB, who gets the Brazilian in the Banzai Boutique?

Mon, 02/20/2012 - 23:36 | 2179763 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 | 2179823 thedrickster
thedrickster's picture


Mon, 02/20/2012 - 23:29 | 2179738 uno
uno's picture

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

Mon, 02/20/2012 - 23:31 | 2179744 chump666
chump666's picture


"The Ceaser."

Tue, 02/21/2012 - 00:06 | 2179876 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 | 2180291 dvsteenk
dvsteenk's picture

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

Mon, 02/20/2012 - 23:22 | 2179703 tmosley
tmosley's picture

I am so ready for this shit to be over.

Mon, 02/20/2012 - 23:30 | 2179741 thedrickster
thedrickster's picture

I guess Trav doesn't like this.

Tue, 02/21/2012 - 00:16 | 2179912 DaveyJones
DaveyJones's picture

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

Mon, 02/20/2012 - 23:57 | 2179847 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 | 2179714 chindit13
chindit13's picture

Over/under on Euphoria is 90 minutes.

Mon, 02/20/2012 - 23:25 | 2179720 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 | 2179732 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 | 2179784 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 | 2179800 Uber Vandal
Uber Vandal's picture

In regards to FDIC protection:

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....


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 | 2179884 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 | 2179753 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 | 2179787 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 | 2179727 navy62802
navy62802's picture

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

Mon, 02/20/2012 - 23:27 | 2179729 navy62802
navy62802's picture

Riots in Greece in the next 24 hours.

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