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Futures Surge Overnight Following Accelerating Central Planning Takeover Of Global Capital Markets
Anyone just waking up and noticing futures trading just barely below the closing print may get the impression that things are fine. They are not. Here is what has happened overnight as the global central planning cartel does everything in its power to prevent the global market rout, which has so far wiped out $7.8 trillion in market value around the world, from morphing into the catalyst that ends the status quo. To wit: ECB resumes buying Italian and Spanish bonds (UniCredit says the bank is losing a “game of chicken” with lawmakers by not holding out for budget cuts and higher taxes, and may eventually need to print money), the G-20 is prepared to take joint measures to stem a global crisis, Brazilian Finance Minister Guido Mantega said. Greece’s securities regulator banned all short-selling on the Athens exchange for two months starting today. Taiwan’s government bought stocks yesterday and this morning through four funds it controls. South Korea’s regulator asked pension funds, brokerages and asset-management companies to step up efforts to stabilize the market. South Korea also bans short selling for three months starting August 10. And lastly, rumors of an emergency Fed announcement are ripe. So... after all this global cartel intervention, is it any wonder that futures staged a near vertical move up overnight?
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The ASX staged a 'miraculous' comeback today along with the Australian dollar.
Must of been the second coming of Christ.
Yes seen him walking on Sydney harbor after close. But you have to admit we like to take a plunge when the odds are favorable. Just hope my bro didn't slam the whole Family wad down on the top 20 Nags. Could be a long walk home from Rosehill Racecourse with empty pockets.
Shock and awe PPT got up early to turn ES up 8% from overnight lows
Awesome. Here we go again
There are definitely some cheap stocks out there on a FCF yield basis, but few people are considering the impact to housing, unemployment, consumer spending, etc. in their analysis. Housing falls another 10-15% and you can say goodbye to bank equity....
I notice that one or two of the more thoughtful are starting to wonder if we will see a panic move from the Fed tonight Tyler.
This is not 2008 again, nor is it The End. The markets will stabilize this week. But it is the end of the Age of Printing and the beginning of the Age of Austerity.
http://themeanoldinvestor.blogspot.com/2011/08/manic-monday.html
"But it is the end of the Age of Printing and the beginning of the Age of Austerity."
You ain't seen no printing yet compared to whats coming.
How much funny money will be electonicly dumped into equities today to 'calm the markets'?
Mega, mega, mega...
The maniacs running this assylum will not go quietly into the night...
I agree Snidley, we haven't seen real printing yet
Nor any austerity, for that matter. - Ned
True dat! Run for the hills Bitchez!
There will be more printing, its all they know how to do...
No. In your case, it is still the Age of Normalcy Bias.
Austerity? Where the phuck is that part?
US futures still rising. The brainiacs must have fixed that BofA thingy lol.
Quick, sell your gold all is fine.
HA yeah. Prechter says you better sell your gold and get into treasuries. After all, this is deflation and nobody would try to print their way out of deflation.
I think what he said was, they will be incapable of printing their way out of deflation, not that they wouldn't try.
I'm so excited
And I just can't hide it
I'm about to loose control and think I like it
Ohhhyaaaaaaaaa!
Dark Tuesday, to follow Blackish Monday.
Any disambiguation on the Muni ratings -- according to the All-Pious Born-all-Over rating agency that is S&P yet TD?
There was an imminent QE3 announcement rumor going around at about 700GMT.
Interestingly enough, the equities desks were having a field day whereas credit and bonds weren't at all confirming the story. Italy and Spa lower yields but we all know thats fake. Also, GER getting attacked from 'vigilantes' on a wider CDS than UK.
how much wider?
don't know where to look
Just tightened but was wider before (Ger) Germany 80/84 last vs UK 81/85
that seems very significant in that it seems significantly odd...or it's just ho-hum the ecb and euro are about to completely implode.
am i understanding this correctly?
And when all of this fails....again....we will revisit the nightmare from last night.
Gonna be a big green day today. Tens of trillions of $ are going to be dumped into the markets by governments. +1000 easily.
The Fed may borrow a page from the EU playbook and say that they are going to take certain measures, only to reneg when time to implement those promised measures comes due.
They may try the traditional technique of 'jawboning' the markets, including more hints of QEs in the future.
Or, Benny may spend the day interviewing new candidates for his staff... since most have left already...or, maybe he will call in sick?
BTFD, QE3 coming.
buy what? phucking treasuries? at times you have to pay the government for the privilege of holding their just downgraded debt! IT'S MADNESS I TELL YOU!
Futures surge overnight.
It's called the -6.66% effect.
Will be an up-day today
The future's so bright... I gotta wear shades!
http://www.minresco.com/jpg/ablast.jpg
I think I hear the sound of a helicopter off in the distance. Gotta run out and stock up on Hefty bags.
Transitory desperate moves to prop markets, I believe the saying is "pulling out all the stops". For the avg. man in the trenches, there really wasn't a recovery. Just a whole lot of air (money printed by the FED) to pump up the stock market. Gold is offering the clearest indicator of these manipulations.
This is just another desperate attempt to calm the herd on their way to the slaughterhouse. Price the market in gold, not FRNs.
Mr. Durden,
My realization viz. finance and world affairs, and the little guy's ability to effect real change collectively (ulitlizing their greed -- in a good way) is where i'm at; and you got me here.
but i didn't get here because my own faculties forced me to the conclusion; no, i was initially attracted to the elegance and clarity of prose like the above. i know that's shallow...but whatever it takes...right?
i just wanted to say hip, hip! thanks. and, like it or no, i've concluded that you are doing God's work; and that you are under a burden...bear it well, my man; the rewards are rich and gooey.
oh, and finally, i'm here because iron sharpeneth iron -- and i'm honiing to a razor-like edge.
...so store ye up treasures which neither moth nor rust corrupt and the thief cannot plunder,
janus
"i've concluded that you are doing God's work"
Hmmm. Since its abuse by some IB head, this phrase is not as complimentary as it once was.
they're usurpers and idol worshipers.
and, whatever they call this swine-god they pray and make supplication to, i'm sick of choking on its flatulance and slopping its sty.
hehehe... the "swine-god" as you call him, His Name is MAMMON.
http://en.wikipedia.org/wiki/Mammon
By shorting and speculating, all traders are somewhat under His Spell...
(warning: the above religious content is only for serious financial research)
there is only one subject to which Christ devoted more attention than money; can you guess what it is?
even so, the fact that He dealt with it so bountifully should tell us something.
and the widow, when losing her piece of silver/
will she not scower every corner with out ceasing till it's found?/
and when it's found will she not then rejoice?/
you are worth much more than silver.
but silver's still worth something, too
I'm here for the lost silver of israel...all of it,
janus
ONLY THE HOLY VAMPIRE SQUID DOES GOD'S WORK - REPENT, YOU SINNER
whey they said repent/
i wondered what they meant
L Cohen
'G-20 is prepared to take joint measures to stem a global crisis.'
This is the worst possible result. Yesterday a ZeroHedge contributor suggested that S&P's downgrade might dissuade the US from foolish notions of contributing financial backing to Trichet's folly.
But no -- 'G-20 joint measures' are the financial equivalent of roping a climbing party together on the Matterhorn, so that if one slips, all 20 slide off the precipice to their doom.
The gods are insane ...
"global crisis" You mean the summer of recovery is over?
Unless they announce a number today, it's a bluff. They may get a tiny rally. The second wave down is going to be just as epic.
...he said, while peering intently into a crystal ball guaranteed to confirm biases...
Of course they will attempt to halt the waterfall collapse. But they will try first with fiat injection and vague hints of QE in the future.
Hey, as long as money is rushing out of equities into treasuries they can't be too unhappy cause it delays more printing right now.
When did central banks place equity holders interests ahead of bond holders interests? In the long run equities will be thrown under the bus to save bond holders.
Billy!!! We are saved!!! Can I get a hallelujah?!!!!
To the little people...don't worry inflation will resume shortly.
And what's with all this symbolism, don't they know 666 is so passe.
From Mish on overnight action...
"More Overnight Intervention; Bear Market Vacuums and Heroin Rallies; Is the World Saved?Equity futures are ripping in early morning action following an equity market reversal in Asia Pacific.
There was more red than green but the reversal off the lows was huge.
As I type S&P 500 futures are +27 after being down as much as 35." http://globaleconomicanalysis.blogspot.com/2011/08/more-overnight-intervention-bear-market.html Can you say 'coordinated intervention'?
Gold doesn't seem to be biting on the play action...
Right now gold has decoupled from everything on a fear based stampede to safety.
Tomorrow? Who knows? Too much depends on the azz clowns that are trying to run a centralized economy... You know, like the old CCCP? Didn't that work out well?
market tanked on obamanation's bday. he wasn't too pleased as he was munching on his ribs with jay-z. http://nation.foxnews.com/president-obama/2011/08/05/obama-parties-chris...
it then tanked futher after yesterday's speech where he was more focused on his agenda of expanding his power than saving the economy
so he gave uncle ben a call and said "make the market go up or your fired"
everyone's least favorite furry banking gnome is now scrambling to cook up some more alchemy
and when in doubt, blame it on the republicans
It's like they purposely closed at 6.66% lower.
Based on that , sign, I say today closes higher.
Reverse psychology bitches.
And let's forget that when Gold hits a certain number it will be confiscated.
That's the whole put of TSA. To prevent citizens from leaving the country will gold.
Thank heavens that our wonderful men and women in the military are fighting and dying for FREEDOM & FREE-MARKET capitalism ... I want to PUKE!
So what changed? The World Reserve Currency was shown to be a whore with addiction to Debt, pock marked and impure like the whore of Babylon (and it still is) Margin calls were still made, CDS calls made, The PIIGS are still wearing lipstick and busily grunting for more slops at the trough, Austerity is showing anarchy in England, The World Economy is slowing as it should into Austerity. Nothings changed - there is not enough money in the World to repay the debts owed and deflation just showed its puckering anus at us.
Well may you seek QEIII from the major players but you know it buys you time and little else. What profit you think you make today/next week/ Next month is irrelivent if its not liquid and in your hand at days end.
Its a Ponzi and while Greed is a strong motivator you just know your buying what is air, an illusion, smoke and mirrors from a frightened and now co ordinated push to stop the flow to cash/gold/silver.
The monster from the ID is still out there and it coming for you no matter what you shoot at it.
Sleep well - you will need your rest for what is coming when the bullets run low.
Most people still don't see the end game here. Markets aren't only going down, they are going away. Hedge funds/money managers are still bigger than governments en toto. At some point the the 'printing' and other govt guarantees make nationalization a formal concept instead of a stealth one. At what % government ownership/guarantee does is make sense to still have leveraged speculation on commodities/stocks? We're approaching that level. The other option is that currency markets (which ARE bigger than governments for a few more years yet), disrupt the whole thing then its lights out (possibly literally). I wish people on here would spend more time looking at and discussing 2 or 3 steps ahead here instead of just loudly pointing out the obvious (that markets are broken)
I agree with the wish to predict instead of observe... but I wonder if what you're predicting is based on sound observation, or it still includes a bit of cognitive dissonance. My own take on this is available readily as i say it often enough... the markets will surely go away, but not because the market will not make sense when it's controlled by central planning, but because the wealth we have now will have evaporated. In fact, that's not the right word... the wealth we had would have been transferred, but some would just be destroyed.
In any case, there will be a QE3 or QE4 or whatever mechanism the financiers decide to use to extract more wealth from our pockets. The prior bailouts were nothing but debt bombs tossed into the citizenry, so we now have debt (or expense), they now have the money. QE3 will serve the same purpose, even if it appears in the guise of propping up the market. Because the prop is either funded by a credit card (or at our expense), and eventually the payment will be due and eventually the market will inevitably collapse... only difference is, we'll have the debt and the collapse, vs just the collapse (or, there would be negligible positive effect as it was our money used to prop the market intended to keep us from losing wealth).
Given that the market is declining, it seems clear taking money from the people to prop up places that make them work to create wealth for the financiers is not such a brilliant idea, but then again, it never was. The present situation was inevitable, based on the structure of capitalism. Eventually, someone would have won most of the bets, someone would have the most power, someone would weild the "self-interest" ruthlessly. The more obscure thing most people do not seem to recognize is that that someone won a long long time ago and controls the entire world already. Nothing we're seeing today appear to be arbitrary, and in fact, almost all events seem to lead directly, logically, to an end game where the financiers win it all, again.
So where are we headed? Feudalism. The Financiers are overthrowing government and landlords and all other oligarchs in order to be the single super power. This is on the same magnitude as the transition from feudalism to mercantilism to capitalism. Except, ironically, that entire transition had the seeds of the virus that's infecting us... property means nothing, it's the intangible "money" that has all value, with the ability to devalue real property and indebt landowners too. So this is definitely a well planned Coup. On so many levels it makes the head spin. It's a philosophical, economic, social, structural, linguistic, etc transition from one world into another. Along the way, expect a pack of lies to conceal the truth.
So fuck the market moves. Either way, we're doomed if we continue to play their game.
When Rome fell, be assured that MANY PEOPLE thought it was 'the end of the world'. It was not, and here we are today. We will be here 2maro and all the worlds $$ has to and must go someplace. The markets are not 'going away', and the lights are not going out either. The world is changing, but only very, very slightly. Nothing could be better for everyone than if BAC and C go BK along with AIG, WFC and most other financials. And maybe just maybe Americans will realize that their outsourcing has killed our country and finally reverse course. America is the most technologically advanced country, we have the most nuclear weapons, the best military, we grow all our own and much of the worlds food, we conquered the Japanese empire, and all of Europe, UK/Israel/France/Poland/ would NOT EXIST directly without us, lets not forget that. Neither would kuwait, we conquered Iraq and Afghanistan, and Iran is only a matter of time. Saudi Arabia and Egypt would not exist as they do today without both the US economy AND the us military either allowing them to or protecting them.
Come on Bill. America has been outsourcing since the 1770's. It is natural.
It took a lot of money to make futures move that much....anyone wanna venture a guess where that came from?