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Global Central Bank Intervention Half-Life: 30 Minutes?

Tyler Durden's picture




 

One of the bigger beneficiaries (BNP) of this mile-wide hose-pipe of USD provided by the global central bankers has already retraced more than 75% of the reaction spike. As humans realize the desperation in this move and that solvency and liquidity are two critically different things, we suspect reality will set in further.

Chart: Bloomberg

 

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Thu, 09/15/2011 - 09:39 | 1672974 MDIB
MDIB's picture

I think you meant 24-48 minutes...

Thu, 09/15/2011 - 09:42 | 1672984 mikmid
mikmid's picture

(the bernak) GET YOUR DOLLARS HERE, HEAR YE, HEAR YE, GET YOUR DOLLARS HERE, DOLLARS FOR ALL, GET YOUR DOLLARS HERE. (the carnival continures) Where is Bernie Madof when you need him?

Thu, 09/15/2011 - 10:57 | 1673362 disabledvet
disabledvet's picture

Dollars aren't the crisis. Euros are. Are they still wondering why there's a problem?

Thu, 09/15/2011 - 09:43 | 1672986 PaperBear
PaperBear's picture

The desperation is palpable.

Thu, 09/15/2011 - 12:23 | 1673723 Clorox Cowboy
Clorox Cowboy's picture

"Desperation is a stinky cologne"  Anyone?  Great movie, if you know it.

Thu, 09/15/2011 - 09:43 | 1672991 D.O.D.
D.O.D.'s picture

I'm not sure I understand how Europe getting a USD$ bailout is going to help americans get jobs... I hate being dumb....

Thu, 09/15/2011 - 09:49 | 1673022 dwdollar
dwdollar's picture

And now you know why the DOA 'Obama Jobs' bill was laid down last week.  It was merely a smokescreen.

Sat, 09/17/2011 - 09:40 | 1679597 franzpick
franzpick's picture

Yes, he obliterated coverage of the republican candidate debate with daily verbiage, then upstaged the developing greek wide-on, and i'll be watching to see if ongoing 'perception management' is all we are getting from the white house.

Thu, 09/15/2011 - 09:50 | 1673036 SheepDog-One
SheepDog-One's picture

More free gifts to Europe on the backs of bankrupt americans. Why people arent in the streets burning down banks, I have no idea, other than 'Idiiocracy'.

Thu, 09/15/2011 - 10:09 | 1673119 DosZap
DosZap's picture

SheepDog-One,

Simple bro, they ARE clueless it's happening,and if they did know, they would think the dollars ar coming from the Fed, and they are not responsible for paying THOSE back.

People are ignorant as hades when it comes to HOW their government of thieves works.

They will get the ideas soon enough.When the Tax man comes due, the SWHTF.

 

Thu, 09/15/2011 - 10:28 | 1673199 Smiddywesson
Smiddywesson's picture

This is all kick the can.  The money can't ever be fully paid back.  Once we reached that point, they started throwing money aroud with a vengeance.  When all is said and done, all that will matter is who has the biggest military, the most powerful friends, and how much gold they collectively have in their vaults.

Kick Can + Buy Gold = Game Plan for TPTB to screw everyone and remain in power.

Thu, 09/15/2011 - 12:22 | 1673718 lynnybee
lynnybee's picture

SHEEPDOG-1.....SHEEPDOG 1 ...... LET ME TELL YOU WHY PEOPLE AREN'T IN THE STREETS BURNING DOWN BANKS ....... from my personal point of view :

PEOPLE ARE STUPID & ill-educated.      I am sending out emails left & right to my friends (with links to educational material) about what the hell is happening.   I am begging them to run (not walk) to the coin guy & buy silver & gold while they still can lay their hands on it.    My friends either do not understand or do not care.    I am the PAUL REVERE of my circle of friends & all they want me to do is shut up & leave them alone.    I tell them to stockpile food & they laugh at me.    true story :   yesterday my best friend asked me how to become rich.   I wanted to strangle her.    i've told her 100 times to run & buy silver; but, no ...... she thinks the way to become rich is to have a bank account filled with money .        

Thu, 09/15/2011 - 14:58 | 1674241 macholatte
macholatte's picture

Denial is not just a river in Egypt.

People are not so stupid or dumb as they are ignorant and foolish. It is difficult to challege a belief system. Few people are capable of it. It is easier to pull the covers over your head and click your red shoes and say home home home. We (the ZH crowd) know more today than we did yesterday because we search for knowledge. We work at trying to connect the dots to make sense of it. To bring it into focus. Most people choose not to do that because it simply scares the crap out of them. There will be no riots and not even any marches on Washington. What is happening does not involve abortion, civil rights, racism or any of the hot buttons the MSM feeds off of. The sheeple will walk quietly to wait in line to board the cattle cars to take them to a destination they choose not to know about. That's just MHO.

 

Men are so simple and so much inclined to obey immediate needs that a deceiver will never lack victims for his deceptions.
Niccolo Machiavelli

 

Fri, 09/16/2011 - 02:48 | 1676293 BooMushroom
BooMushroom's picture

The fucking Department of fucking Education has armed agents.  You wanna mess with the FBI?  People aren't in the streets burning down banks because they're scared of death scared of any conflict, like telling the waiter that the steak is undercooked, because they are afraid of their food being spit in.  You want those people burning banks?  Good fucking luck.

Thu, 09/15/2011 - 09:44 | 1672992 pamriallc
pamriallc's picture

think again.... it's the opening rush to get in, then the averaging *UP* after a morning pullback that flows to the end of the day, closing at the top, and remaining level throughout Friday going into the weekend.  walk away from the monitors, go to sleep.

Thu, 09/15/2011 - 09:48 | 1673020 SheepDog-One
SheepDog-One's picture

I'd say its the 3 Stooges on the free buffet now, theyll tear thru this in half life 30 minutes, not the 3 months they believe. 

Thu, 09/15/2011 - 09:53 | 1673054 ww2vet
ww2vet's picture

fool -- spy will make new 2011 high before september ends!!

Thu, 09/15/2011 - 09:54 | 1673062 SheepDog-One
SheepDog-One's picture

Yea sure whatever troll. Bet on it then.

Thu, 09/15/2011 - 09:44 | 1672995 bigdumbnugly
bigdumbnugly's picture

geithner

superman suit

S on the front is a $ sign

kryptonite boulder overhead tied onto frayed noose

 

sorry another peyote induced vision...

Thu, 09/15/2011 - 09:53 | 1673053 DaveyJones
DaveyJones's picture

but Geithner's true creators are making a litlle more money than Superman's

Thu, 09/15/2011 - 09:44 | 1672996 criticaster
criticaster's picture

Just because one can find a bank stock with a big spike in it that subsequently falls back (possibly because all the buyers already bought) does not mean that the 'half life' is 30 mins (especially since during the time of writing this post, it has moved up again). If only it were that simple.

Thu, 09/15/2011 - 09:49 | 1673024 pamriallc
pamriallc's picture

actually it is that easy. no one can tax people more right now. CB's will print and cause asset inflation.  average guy doesn't have assets to "inflate" so no problem.  markets move higher ono stimulus and inflation, taxes rise in the 24 monthhs after elections, cash repatriated to the treasury.  coordinated efforts rewarded with more peace than disruption.  relax.  own lots of cash, some metals in a vault somewhere, some equal weight global index funds, emerging markets, walk away for 5 years.  earnings and interest rates will be higher, you'll have a portfolio that appreciated.

Thu, 09/15/2011 - 09:56 | 1673066 criticaster
criticaster's picture

I meant: if only statisitical analysis of price time-series was that easy. I wasnt aiming to get into a bullion-length comparison competition, so chill. Good for you.

Thu, 09/15/2011 - 11:00 | 1673376 disabledvet
disabledvet's picture

Hahahahaha. Please tell me you manage billions!

Thu, 09/15/2011 - 09:49 | 1673026 pamriallc
pamriallc's picture

actually it is that easy. no one can tax people more right now. CB's will print and cause asset inflation.  average guy doesn't have assets to "inflate" so no problem.  markets move higher ono stimulus and inflation, taxes rise in the 24 monthhs after elections, cash repatriated to the treasury.  coordinated efforts rewarded with more peace than disruption.  relax.  own lots of cash, some metals in a vault somewhere, some equal weight global index funds, emerging markets, walk away for 5 years.  earnings and interest rates will be higher, you'll have a portfolio that appreciated.

Thu, 09/15/2011 - 09:45 | 1673004 Silverhog
Silverhog's picture

Bail out dialog keeps mutating looking for positive results. Lot easier then fixing the real problem.

Thu, 09/15/2011 - 09:58 | 1673079 Byte Me
Byte Me's picture

That's bcuz you just can NOT fix the Status Quo in a paper fiat sys:

viz:- http://www.youtube.com/watch?v=KhwCqAmggnM

 

Thu, 09/15/2011 - 09:46 | 1673009 boom goes the d...
boom goes the dynamite's picture

are we buying or selling gold?  I can't remember.

Thu, 09/15/2011 - 10:24 | 1673180 tmosley
tmosley's picture

Buy physical, sell paper.

Thu, 09/15/2011 - 10:33 | 1673222 Smiddywesson
Smiddywesson's picture

Yes, you can make money in the paper market, but not if  you confuse it with real physical gold.  Just because the paper price has to rise in response to the Boyz buying physical, doesn't mean it has to do so in a logical fashion.  It's not a market, it's a game.

Thu, 09/15/2011 - 09:48 | 1673023 DaveyJones
DaveyJones's picture

"critical reality" is setting in

Thu, 09/15/2011 - 09:49 | 1673027 g speed
g speed's picture

printing is --well --just printing--and zeros are only zeros--

Thu, 09/15/2011 - 09:50 | 1673031 lemarche
lemarche's picture

Hope this spike will last just that, hurting my shorts you dirty central bankers/ front runners !!

Thu, 09/15/2011 - 09:51 | 1673032 Jack Burton
Jack Burton's picture

It is desperation, you can smell the fear. Central banks can pump money, what they can not do is pump money backed by real economic wealth.

Printed paper without a store of wealth behind it is what? Toilet paper. Markets will have to wake up to the fact that liquidity isn't changing economic fundamentals. But by a perverse method may be transferring wealth from savers to speculators.  "May" could be read as "ARE".

Thu, 09/15/2011 - 10:01 | 1673085 DaveyJones
DaveyJones's picture

So true. the powers always go for inflation, it puts them first at the trough unlike deflation. Things they can't print are BTUs of energy,viable food systems, and healthy business

Thu, 09/15/2011 - 09:50 | 1673035 reader2010
reader2010's picture

here is the Page16 story.


Banks, Governments Move To Restrict Personal Gold Bullion Purchases

 

http://www.shtfplan.com/precious-metals/banks-governments-move-to-restrict-personal-gold-bullion-purchases_09092011

Thu, 09/15/2011 - 10:11 | 1673128 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

CA city looking down on that barbaric relic!  Buy while you can you terrorists you!

 

http://www.10news.com/news/29112802/detail.html

Thu, 09/15/2011 - 09:52 | 1673043 hungarianboy
hungarianboy's picture

I wonder when Tyler is going to post Gold chart?

Thu, 09/15/2011 - 09:57 | 1673071 ww2vet
ww2vet's picture

he's broken clock, at best

Thu, 09/15/2011 - 17:39 | 1674941 Lord Koos
Lord Koos's picture

I look at yearly gold charts everyday with great enjoyment...

Thu, 09/15/2011 - 09:54 | 1673057 TradingJoe
TradingJoe's picture

Keep buying Physicals! Nothing Else! Leave the "stock market" to the algos and their masters, at some point they will feed upon one another and game over! Physical is here to stay, for a long long long time! it will save your assets, your lives and families! get out of the "stock market" as long as you have enough left to buy more REAL GOLD! This will end so bad people are goiong to be so shocked they won't be abel to act, react or anyhting else, they will be so startled so incredibly afraid you'll see! This is no doomsdaying etc.'s this is the LOGICAL CONSEQUENCE of PRINTING! And for all it's worth, IT DOES NOT MATTER HOW MUCH LONGER IT TAKES BUT WE WILL GET "THERE"!!!

Thu, 09/15/2011 - 09:59 | 1673084 ww2vet
ww2vet's picture

world wants $, a few fools want gold

Thu, 09/15/2011 - 10:10 | 1673125 TradingJoe
TradingJoe's picture

yes wothles dollars that is, be my guest, buy as many as you like, once it's buying power really goes to "KNOWHERE" you will be rememberd of calling me a fool!

Thu, 09/15/2011 - 10:25 | 1673188 tmosley
tmosley's picture

Uh-huh.  Why don't you tell that to the ten year performance of both of those things?

Thu, 09/15/2011 - 10:56 | 1673359 Smiddywesson
Smiddywesson's picture

Yes, those of you who are trading paper gold in IRAs may want to start taking profits off the table and paying that 10% penalty to access your money.  A 10% tax hit is a small price to pay for having your assets safe in a financial hurricane.  Then there's also the appreciation issue.  The gold those remaining funds purchase is likely to go a long, long way in retirement.

Thu, 09/15/2011 - 19:08 | 1675328 Lord Koos
Lord Koos's picture

This is good advice -- I waited until I could take mine out without penalty in March, but I would have been even better off taking the 10% hit and buying gold last fall.

Thu, 09/15/2011 - 09:54 | 1673059 tyxaios
tyxaios's picture

A new wave of crisis is coming and everybody will run to buy some dollars. Central Banks, the liquidity watchdogs, are barking. That's all for now.

Thu, 09/15/2011 - 10:25 | 1673190 mess nonster
mess nonster's picture

As long as Central Banks think more debt (liquidity) equals solvency, massive impending debt-deflation will mean a strong dollar.

The world will not end by economic catastrophe. The ability of TPTB to string this along dulls the drama. Steady deterioration is the game-plan. No sudden crash, just a long wheezing slow death by congestive heart failure.

The QE dollars are consumed by the black hole of global insolvency as fast as they are printed. Gold is the preservation of your assets in amber. IOW, buying power petrified- just don't let the inevitable deflationary crash of gold in dollar terms scare you. Just because someday, a 20 dollar gold piece will be worth exactly 20 dollars doesn't mean you won't be able to buy just as much with it as ever.

Thu, 09/15/2011 - 11:03 | 1673382 Smiddywesson
Smiddywesson's picture

I like the way MessMonster put the deflation argument, but I have to disagree with his belief that deflation will continue to infinity or even that hyperinflation will do the same, bringing the dollar down to zero.  That would be suicide for the central banks.  They will pull the plug on the patient long before that happens. 

Rather than ride the dollar up, or print it into oblivion, we are likely to see them announce a new monetary standard related to gold.  They are walking a fine line now between inflation and deflation, but this is reality, not an academic argument.  They are going to change the game when it suits them, because the world of money is the world of Extremistan where anything can happen.

Until then, they are buying gold and kicking the can. 

Thu, 09/15/2011 - 09:56 | 1673072 russwinter
russwinter's picture

Occupy Wall Street Sept. 17 crowd map details.

http://usdayofrage.crowdmap.com/

Thu, 09/15/2011 - 09:59 | 1673082 tocointhephrase
tocointhephrase's picture

We all know what the ten year looks like Hungry Robo

Thu, 09/15/2011 - 10:00 | 1673091 TzaristBondHolder
TzaristBondHolder's picture

Bloomberg:

French banks Societe Generale SA and BNP Paribas SA said yesterday they didn’t borrow dollars from the ECB. BNP Paribas rose as much as 22 percent in Paris trading, leading European banks higher, after the ECB’s announcement today. BNP Paribas rose 5.57 euros, or 21 percent, to 32.47 euros as of 3:18 p.m.

 

Rediculous.  22% up????

Thu, 09/15/2011 - 10:04 | 1673106 lemarche
lemarche's picture

Yeah, obviously BNP does not these dollars..... Everybody seems to know that by now given the spike at +20%...

Thu, 09/15/2011 - 10:26 | 1673194 MDIB
MDIB's picture

Should central banks really be providing liquidity to entities the mkt thinks shouldn't get liquidity?  Central planner arrogance run amok.

Thu, 09/15/2011 - 15:36 | 1674365 jmcadg
jmcadg's picture

Lynnybee - Paul Revere, love it. I so hear what you're saying. I know ABSOLUTELY no one in PMs, and the few I've tried to convince think I'm barking!

Quick thought, this central bank funding is an admission of illiquidity (and insolvency?). An effective QE+++

So why is gold being kicked in the ass? Surely there are many thinking BTFD. Fucked.

I think people here in the UK think they are immune and snigger that they are not in the Euro. Fuckin' LOL

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