This page has been archived and commenting is disabled.

Goldman On Today's Coordinated Central Bank Bailout: "It Isn’t Enough To Save Anyone Or Solve Averything" And "Why Now?"

Tyler Durden's picture




 

Naturally, if there was one party that would be disappointed by today's action, it would be Goldman Sachs: on one hand because it is nowhere near enough to actually fix anything, and on the other because it delayed the moment when the 2-3 European banks which we have been saying for over a week would keel over and die leaving a power vacuum for Goldman to fill, has just been delayed. As a result, Goldman dissatisfied note makes more than enough sense: "Up, up, and away for stocks after the coordinated ease this morning. USD funding just got cheaper, which is of course a good thing. But the difference between OIS + 50 and OIS + 100 isn’t enough to save anyone or solve everything. It’s the symbolism of policy-makers again acting in concert that I find most encouraging." But, and there is always a but: "Although there is the obvious counter: why act now – is there something lurking around the corner? Those are worries for tomorrow though." Indeed, and when the worries resurface, as they will, especially following the resumption in European record yielding auctions, which incidentally the Fed's action does nothing to fix, following France and Spain bond auctions. And who knows what else. Oh yes, Goldman just cut its GDP forecast for Europe from +0.1% to -0.8%: hello, recession, the very same catalyst which S&P said a month ago will be sufficient for it to downgrade France. As usual, Egan-Jones was way ahead of the crowd.

More from Goldman:

If the FED is giving the world dollars, then sell your dollars. Less reason now to hold USD longs to cover your USD funding. EURUSD trade to a high of 1.3533. Stops the whole way up. A steady drip lower for the rest of the session though yesterday’s high providing support. Just missed out on a bullish key day reversal – that was what started October’s rally. Still 1% higher in EURUSD is nothing to sneeze at. AUD the day’s best performer though. Up 2.8% vs. the dollar. USDBRL back to 1.80. Amazing that just last week we were testing the top of the 1.70 / 1.90 range. So much for EM being an elevator only on the way down.

 

The rates market finished unchanged in the front end but 7-10bps weaker in the long end as risk assets rallied on the back of the news of the central banks cutting the swap line charge by 50bps and the better US data.  Much of the sell off in rates came early in the morning and interestingly our flows were skewed to better real money buying, possibly taking profits after we saw this account base better selling all yesterday.  Focus will remain on the data as skeptics claim this move higher in yields is short lived, but optimists see the possibility for a further sell-off especially if NFP comes in strong on Friday.

 

We out with our top trades of 2012. A round-up: 1. Short European high yield (long protection iTraxx Europe Xover index, Target 980bp) 2. Short 10y German bunds (target yield 2.80%) 3. Long EURCHF (Target 1.3500) 4. Long Canadian Equities (S&P TSX) vs Japanese Equities (Nikkei), fx unhedged (target 120) 5. Long Global Rebalancing Basket (Long CNY,MYR vs GBP, USD) (target 107) 6) Long July 2012 ICE Brent Crude Oil Futures (target $120)

 

Commodities lagged the broader risk rally but metals fared the best - Silver up 2.9%, Gold up 2.0%, and Copper the real winner up 5.4%. We just released our new energy forecasts, maintaining our Brent forecast of $120/bbl and WTI of $112.50/bbl for 2012 and introducing a 2013 forecast of $130/bbl for Brent and $126.00/bbl for WTI – overall theme of Brent-WTI spread compression as we move rail economics toward pipeline economics.  On the day: WTI up 0.7%, Brent down 0.4%. In Ags, Sugar up 0.9%, Corn up 0.4%, but Cotton down 2.0%.

In credit, index products massively outperformed single name CDS. We are seeing the liquid hedges outperforming illiquid hedges. IG and HY outperformed Equities, with IG making the largest one day move of the year.

 

Tomorrow brings PMI data across the globe starting with China tonight, CPI numbers for Korea and Indonesia, France and Spain bond auctions, and in the US we have ISM and initial jobless claims data.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/30/2011 - 20:23 | 1933181 DormRoom
DormRoom's picture

when doctors know the patient is going to die, they give out morphine with abandonment.

 

This is a metaphor for the current situation.

 

risk on portends to what future?  Chinese hard landing?  Southern Europe depression?  Northern Europe stagnation, because of austerity, and an over-indebted Southern Europe?  runaway stagflation? global mercantilism? currency wars?  Japan bust because of persistent Western monetization?

 

sub-prime student loans bubble popping in 3-5 years, when I and my colleagues enter a job market entrenched in structural unemployment, and have no way to pay back our huge debts?

 

yeah.. risk on a=hoy.

Wed, 11/30/2011 - 20:24 | 1933203 redpill
redpill's picture

Funny these guys pretending like they didn't get the wink on Monday.

Damn squids.

 

Wed, 11/30/2011 - 21:16 | 1933389 Teamtc321
Teamtc321's picture

Ya, no shit. Wonder if GS would like to take a stab at explaining why they are on the newly fed audit list?

http://www.dailypaul.com/188540/audit-teh-federal-reserve-reveals-16-trillion-in-secret-bailouts Audit The Federal Reserve Reveals 16 Trillion in Secret Bailouts

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places
View the 266-page GAO audit of the Federal Reserve(July 21st, 2011):http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: http://www.gao.gov/products/GAO-11-696
FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf
Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4b...

www.unelected.org 

Wed, 11/30/2011 - 21:39 | 1933444 riley martini
riley martini's picture

  Of That $16 trillion only $4.5 trillion was fully collateralized and met House banking rules . Who works for who ? The banksters are masters of the US congress vote accordingly. Ron Paul chairman of the house banking committe.

Thu, 12/01/2011 - 00:03 | 1933827 AldousHuxley
AldousHuxley's picture

TRANSLATION:

 

Ben, we need to print more so we can get more bonuses!

 

smart doesn't matter when they are evil.

Wed, 11/30/2011 - 21:25 | 1933412 WhiteNight123129
WhiteNight123129's picture

Global gold manipulation is too dangerous for US at this point, that would just make China and Russia too happy to accumulate, Central banks do not care about silver , too bulky so good candidate for CME and JPM manipulation. I would like to know who is behind tyler durden, I found the idea of shorting a market under pumping particularly dangerous for leveraged short trades. If you have the stamina and intelligent hedge on your specific shorts ok, today was a good day to increase a hedged short for example (VALE) . As of now the exit of Greece will happen that will be a short squeeze on the dollar  , I do not know why this Goldman piece is not edited, because this will create a rally on the dollar through a short squeeze given cental bank dumping of euro and eurozone lomg exposure to emerging markets. Why listen to Goldman to sell dollar, to buy BRL? Please, the currency is exposed to euro unwinding and China banking crisis (relatively good incomparison to EUR break-up an USD implosion). If you buy gold and short currency china exposed VAL# while being lon Titanium oxide mining, ok, if you sell USD to BRL you are being sucked into manipulation. Tyler any willingness to edit?

 

Thu, 12/01/2011 - 08:25 | 1934402 kralizec
kralizec's picture

Thick with irony.

Wed, 11/30/2011 - 20:57 | 1933261 DaveyJones
DaveyJones's picture

less morphine, more criminal conjob . Here's worthless paper. Now foreign central banks, pass this hot potato along and ask Italy and others to pledge their gold as collateral.  Why should anyone pledge anything to these bastards. Give them the Iceland finger  

Wed, 11/30/2011 - 20:47 | 1933286 Imminent Crucible
Imminent Crucible's picture

Yes, but "those are worries for tomorrow, though."

And tomorrow always turns into Today a lot faster than you expect.

Wed, 11/30/2011 - 20:57 | 1933324 Buck Johnson
Buck Johnson's picture

Spot on, spot on. 

Wed, 11/30/2011 - 21:10 | 1933363 max2205
max2205's picture

Look at chinas chart.... This may be more about stopping the china bleed than any euro bs

Wed, 11/30/2011 - 21:10 | 1933364 Carlyle Groupie
Carlyle Groupie's picture

If any one of you do not think it's time to cut the squid into 100 pieces and ship him and his ILK to Japan to save those poor lost soles you have missed the meaning of Zerohedge!

END THIS SHIT NOW!

Please awaken and take a knife to the throat of whoever may be trying to capture you.

Turn this ship around!

FUCK YOU GS! Bring it.

Wed, 11/30/2011 - 23:10 | 1933683 hardcleareye
hardcleareye's picture

Yup, like having a bad dream and telling yourself it's a bad dream and you need to wake up....  but it just keeps getting worse.

It ain't over yet, sit back and watch the show, maybe you will live to tell your grandchildren about it.

Thu, 12/01/2011 - 07:13 | 1934290 WhiteNight123129
WhiteNight123129's picture

Of course GS will go down, all psychopatic organization go down. The psychopath are numb to other people feeling. THat gives them an unbelievable ability to manipulate other people because they do not care. From that they derive that they are special, superior and unstoppable. This self confidence on its own is an asset which sways other people, that is called leadership. All great psychopath ended up badly. Caesar ==> killed, Napoleon ==> in hole in the middle of the South Atlantic Ocean. Mussolini ==> Hanged upside down. Hitler ==> killed himself in a Bunker. Stalin ==> Heart attack in his bedroom bunker, since noone could open from outside he did not get assistance.

GS is psychopatic organization which believe it is unstoppable. My answer look at the history and you will realize that it will blown away like a grain of sand like the rest of all human experiences.

 

NOW ABOUT MY COMMENT ON USD: WAIT FOR THE EURO IMPLOSING, UNWINDING OF DOLLAR AND THEN SHORT THE DOLLAR IF YOU WANT. IF YOU OWN GOLD IN EMERGING CURRENCIES I THINK IN THE SHORT YOU MIGHT DO BETTER IF THE EURO IMPLODES THAT´ALL I AM SAYING.

 

Wed, 11/30/2011 - 20:19 | 1933182 knukles
knukles's picture

Really?

Wed, 11/30/2011 - 20:19 | 1933183 CreativeDestructor
CreativeDestructor's picture

This was all Goldman coordinated... No one mentione that Criminal Sachs stopped out their Buy china call just a day ago and after 5% loss, and that is after calling it a buy just few days before that to place their block, and that is just when they stopped out their buy EUR call.

buy china buy eur just to fuck everyone over?

Those lowlifes make it look like they can't find their own dick with both hands.

Wed, 11/30/2011 - 20:20 | 1933190 knukles
knukles's picture

But they sure can find other peoples'.

Wed, 11/30/2011 - 20:23 | 1933197 kengland
kengland's picture

Who cares about the headline today. The take away is that it's now global in effort and they have greater ability to work. The hat tip is in, the aces have been shown, etc.

Feel free to short up at will

Wed, 11/30/2011 - 20:24 | 1933201 chump666
chump666's picture

Yes Goldman... shorts at 12000 Dow, 1290 S&P.

Oil at 100+ will sink nails into the EZ coffin, and get China all frisky. 

Wed, 11/30/2011 - 20:24 | 1933202 Strider52
Strider52's picture

At the risk of sounding completely ignorant, just what are we swapping? So, europe gets dollars. What did we 'swap' for? Do we get euros that nobody has? Unless someone is printing fantasy digits in a computer somewhere, I don't get it.

Wed, 11/30/2011 - 20:30 | 1933223 Flakmeister
Flakmeister's picture

Its almost like you print mine and I'll print yours....

Wed, 11/30/2011 - 20:38 | 1933251 lotsoffun
lotsoffun's picture

yup.  and somehow as a child it just never seemed appealing to me to be printing boys to boys.  not that i have any problem with you boys that want to go boys to boys.  (need to be PC.  don't want to hurt anybodys feelings, right).

and i know timmy and bennie (and barry) are all real men - they wouldn't swap with other boys.

so i guess - somebody is gonna have to be the bitch here.

Wed, 11/30/2011 - 20:49 | 1933293 Flakmeister
Flakmeister's picture

I think we went a little too far with that metaphor....

Wed, 11/30/2011 - 20:54 | 1933314 lotsoffun
lotsoffun's picture

unfortunately - i don't think we did.  if you follow american politics - clinton and cigars, spitzer, mcgrevey, weiner. i can't even go any further.  that's really part of the problem.  honesty and accountability.  it's nothing new, but it accelerates.

 

Wed, 11/30/2011 - 21:34 | 1933436 Flakmeister
Flakmeister's picture

Ah...shit you were doing great until your political bias showed.... not one Repub... bad form.

I'll see you with one Larry Craig and raise you one Mark Foley... since you seem to be tititllated by boy on boy

Wed, 11/30/2011 - 21:51 | 1933476 lotsoffun
lotsoffun's picture

no political bias - i just read the ny post on the blackberry.  repubs and dems - all the same.  don't want to start a war, just having some fun.  was j. edgar hoover a dem or repub?  don't remember.

 

Wed, 11/30/2011 - 21:56 | 1933493 loveyajimbo
loveyajimbo's picture

I think J. Edgar was a transvestite like Bush.

Wed, 11/30/2011 - 21:58 | 1933505 nmewn
nmewn's picture

Naw...that was Janet Reno.

Wed, 11/30/2011 - 23:05 | 1933670 hardcleareye
hardcleareye's picture

rotflmao

Wed, 11/30/2011 - 20:46 | 1933282 DaveyJones
DaveyJones's picture

a race to devalue. The beginning of the end

Wed, 11/30/2011 - 20:31 | 1933227 MFL8240
MFL8240's picture

Spit

Wed, 11/30/2011 - 20:36 | 1933235 Everybodys All ...
Everybodys All American's picture

Currency swaps ... very short term lending. Which means that businesses were frozen out of the short term lending facilities by banks unwilling to lend even for 24 hour periods. That should tell you how messed up the entire system is right now. Hey but rally on until ... the cliff. Never mind the Fed will be there until even they can't stop the train wreck.

Wed, 11/30/2011 - 20:50 | 1933298 DaveyJones
DaveyJones's picture

all this crap is crowding to the short end. The Supernova before the black hole

Wed, 11/30/2011 - 21:07 | 1933352 Imminent Crucible
Imminent Crucible's picture

The swaps extend out to as long as 90 days, but they can be rolled over again and again through February of 2013 under this new arrangement.

The Fed used the phrase "in unlimited quantities" to attempt to snow the bond markets into complacency. So far, it didn't work. The bond markets remember that the Fed first opened these lines in September of 2008, when the financials were falling to pieces and interbank credit was frozen.

All they did was confirm the conviction that the wheels are coming off. For some reason, my wife bought two cases of wine today. Maybe it's just a coincidence.

Wed, 11/30/2011 - 21:48 | 1933471 Everybodys All ...
Everybodys All American's picture

Wondering if you have a specific bank in mind who may be the culprit for this Wednesday morning Fed rescue. We all know the 2008 swap rescue didn't prevent the eventual collapse of some very well known IB's. I think we are seeing 2008 playing out all over again.

Wed, 11/30/2011 - 20:36 | 1933241 disabledvet
disabledvet's picture

And that's the question isn't it! I'm not sure what's been done here either--and so far i haven't heard a satisfactory explanation either. Clearly "you been Sphinxered again" as BOTH The TD's and The Squid to claim "they saw this coming" is as ridiculous as it is false. I do have it on good authority however that "the special song" had to get played by the Treasury Secretary to make it all happen:
http://www.youtube.com/watch?v=JA6id4--BDg&feature=player_detailpage
that's right--it's Foreigner again. And... "it moved him."

Wed, 11/30/2011 - 20:42 | 1933263 knukles
knukles's picture

OK, here's the deal.  Really quite simple....

The Fed sends a bucket or two of US dollars to the other foreign central bank.
The other foreign central bank sends the Fed an offsetting bucket or two of foreign currency.  Euros, Swissy, Sterling, whatever.  Dog shit if the Fed'll take it in.  Which is all a question of how fucking bad is the world at the moment.  (Think all the horseshit in Maiden Lane(s))
The Fed charges interest on the transaction, now being 0.05%, or essentially next to naught.
At the end of the deal (term) the transaction is reversed, the Fed get the dollars back and the foreign central bank gets whatever they sent to the Fed back as well.
(Supposedly)

Now, the complications come in with the currency and counter-party risk.

Counte-rparty- if the other central bank can't find the requisite number of buckets of dollars to send back to the Fed at the end of the deal (term).
Opppps!

Currency risk- say if the other central bank can't find the dollars and the Fed's stuck with the foreign currency at what rate can they exchange it back to dollars?

Now, some would say that central Banks can't go belly. 
All Fine and Dandy Andy.
Don't believe everything you think.

If the foreign central bank has printed why the fuck too much currency and faces illiquidity with respect to sourcing foreign currencies (think Zimbabwe some years ago) then well, if it all fucking falls apart, the Fed eats the shit left on the shingle... or rather the tax payer does.
And in any case, the taxpayer (you and me) is the one who bears all the burden of this crap, since nothing is for free and we're the only ones left at the end of the day.

OK?

Oh and PS.  It is (Forget anyone else telling you otherwise.) potentially inflationary as it creates new dollars that get injected into the global banking system and is in full and complete effect, another QEWhateverthefucknumberwe'reatnow

Wed, 11/30/2011 - 20:54 | 1933313 DaveyJones
DaveyJones's picture

well said knuckles. The central banks say trust us because we're central banks. The people will (or have) figure(d) out the irony of that claim.  

Wed, 11/30/2011 - 20:59 | 1933330 Mike2756
Mike2756's picture

How much will they have to print to negate the drag of high energy prices? Kind of thinking along the lines of escape velocity here.

Wed, 11/30/2011 - 21:21 | 1933397 DaveyJones
DaveyJones's picture

there's not enough paper to counter that effect. 

Thu, 12/01/2011 - 01:48 | 1934009 DeadFred
DeadFred's picture

To the contrary the basic chemical composition of paper is CH2O while the the basic chemical cpmposition of oil is CH2. Paper therefore has half the energy contents that oil does (actually closer to 4/9ths) so 2 barrels of paper is about equal to one barrel of oil. The ink on the paper has psychological interest but no real energy value.

Wed, 11/30/2011 - 20:51 | 1933300 chump666
chump666's picture

a major USD swap.  thing is the FED has made the rate so cheap it's basically like free money (USDs) going into the world.  it's insane.  They have sent inflation in all directions.  That is why commodities oil/gold and everything else went bid.  Markets are juiced on liquidity and the FED are experts and printing.  But market players gut instincts are kicking in...say Middle East, EZ and China will not be happy with a sharp USD devaluation.

Wall Street knows that the rally is legless, it's a suckers rally or bull trap.  Maybe another day of small gains, hits resistance and then rolls over. 

Wed, 11/30/2011 - 20:25 | 1933206 BlueStreet
BlueStreet's picture

Fed achieved what they wanted this week, a strong close to the month to keep the technicians on the defensive.  This is a fucking war though and what they don't realize is that the bears will come back more emboldened the next time.  Once the calendar turns to the new year there is nothing they are going to be able to do.

 

 

Wed, 11/30/2011 - 20:41 | 1933259 lotsoffun
lotsoffun's picture

only two things in this dynamic. (from the US perspective)

1 - you can't have 401k's etc drop because we have to have the xmas spending (which also helps drain savings and lessen bank runs)

2 - you have to get the WS bonuses out.

 

Wed, 11/30/2011 - 23:43 | 1933771 ucsbcanuck
ucsbcanuck's picture

Plus Obama remembers what happened the last time the market REALLY tanked - the incumbent party lost. The sheeple start thinking when their 401 k crashes...

Wed, 11/30/2011 - 20:28 | 1933217 Whoa Dammit
Whoa Dammit's picture

The squid never has enough and always wants more. 

Wed, 11/30/2011 - 20:29 | 1933219 SHEEPFUKKER
SHEEPFUKKER's picture

CLUSTERFUCK NATION

Wed, 11/30/2011 - 23:46 | 1933786 Flakmeister
Flakmeister's picture

You a Kunstler fan??

Wed, 11/30/2011 - 20:29 | 1933220 death_to_fed_tyranny
death_to_fed_tyranny's picture

THE WAR HAS JUST BEGUN! THE SYSTEM IS CRIMINALLY CORRUPT! DO NOT PASS GO. STRAIGHT TO THE GUILLOTINE BANKSTERS!

Wed, 11/30/2011 - 20:32 | 1933230 chump666
chump666's picture

also...Goldman and Wall Street know very well that the Iran situation is about to go hot. and if the UK do something silly + China making sure the oil flows to them + Obama acting like a manic = oil bid, stocks go to hell.

F*cking EZ...I would be locking in civil unrest in Germany now thanks to oil going parabolic.

Wed, 11/30/2011 - 20:44 | 1933275 lotsoffun
lotsoffun's picture

UK won't do anything stupid, they are the masters.  the middle east was part of their empire for 100+ years - they have to show some indignation.  they are much better diplomats then we will ever be, but they can't take a middle finger and not put on a show.  as far as their poor indigenous population, they have to show they still have a stiff upper lip - even if they lost the slave colony, and as far as the immigrant population (overwhelming) goes, they can't go to far.  but remember - the immigrant haven't been running back either, have they?  got to know which side the marmalade is on.

 

 

Wed, 11/30/2011 - 21:49 | 1933462 chump666
chump666's picture

UK is a failed empire.  It has no natural resources, nothing.  Iran knows this, hence the UK embassy in Iran free for all ransack.  Now the UK may try and send warships across to Iran.  Iran just tightens the oil pumps, inflation cripples England, civil unrest/riots/implosion.

Overall Europe is about to face major pain.  This 'swap' will backfire on the CB's.  The ECB is a f*cking joke and the FED is run by a lunatic.  WHat are they going to do re-cap all Europe's banks with USD swaps?  Maybe.  Then inflation takes Europe off the map.  

It will only get worst now. 

Wed, 11/30/2011 - 21:48 | 1933467 chump666
chump666's picture

yes Germany is next

Wed, 11/30/2011 - 22:24 | 1933567 BigDuke6
BigDuke6's picture

Your depressing me with these scary pronoucements even though i agree so much with them i moved country and deserted the sinking ship GB.

What i want to know, if any of the illuminati are reading....  what are the percentage chances of it kicking off in Iran?

Only illuminati or suckers of satans cock (lloyd b) need respond.

 

Wed, 11/30/2011 - 20:37 | 1933242 Zgangsta
Zgangsta's picture

"I know that you've been damaged
you soul has suffered such abuse.
But I am not your saviour
I am just as f**ked as you.

I can not save you.
I can't even save myself.
So just save yourself."

Stabbing Westward - Save YourSelf

Wed, 11/30/2011 - 20:39 | 1933252 Caviar Emptor
Caviar Emptor's picture

The stakes keep getting higher, not lower. It's the gambler's paradox: gotta keep doubling-down just to hope to get back to even. 

Specifics? I think a major rumored bank failure in EZ was probably accurate. But as always since 08 that alone means the potential lock-up blow-out of the entire global financial system, especially since shadow banking has expanded so drastically in the last few years as reported by ZH. 

That's as big a systemic risk as it ever gets and it will always be there, lurking, haunting, for many years to come. It's one rarely discussed aspect of the Japan lost decades: chronic fear of impending blow-ups when insiders actually know just how toxic and levered banks really are. 

 

My take? I'm awed at how SMALL this central bank intervention turned out to be considering the magnitude of the risks and the large sums that hang in the balance. After all this time around it's not just banks we're worried about, it's geopolitical turmoil of the highest degree since sovereign debt, wealth and the ability of governments to survive is hanging in the balance. I think that once again the Fed is acting in moderation because they're boxed in by the inflationary side-effects of past sins. Crude and food prices globally are hovering in redline territory which itself can take down stability. All happening at a juncture where economies are slowing. They gotta walk a fine line. 

 

Wed, 11/30/2011 - 20:47 | 1933285 Mike2756
Mike2756's picture

That's what i wondered about. They can't go all in, it probably would have the same effect as doing nothing.

Wed, 11/30/2011 - 21:09 | 1933359 Caviar Emptor
Caviar Emptor's picture

The danger is kicking off serious inflation. THat's why they can't go all-in. That's why they put off QE3 which everyone expected this summer. 

Wed, 11/30/2011 - 21:39 | 1933441 Cursive
Cursive's picture

@Caviar Emptor

At our current rate, milk will be $10/gal. by February 2010.

Wed, 11/30/2011 - 23:44 | 1933774 ucsbcanuck
ucsbcanuck's picture

You mean Feb 2012 right?

Wed, 11/30/2011 - 20:47 | 1933287 lotsoffun
lotsoffun's picture

caviar emptor - regarding 'my take? i'm awed...' - dude, read the posts.  word went out to the insiders, dow was up 4+% - the insiders buy 2x, 3x etf's in large quantitys.  when was the last time you made 8% in a day.  that's what matters and is happening.

it's great stuff - if you've got the news.  let me ask you this.  what happens next??  how's going to know about it?

 

Wed, 11/30/2011 - 22:08 | 1933509 DaveyJones
DaveyJones's picture

well said Caviar. One hitch of course, they've passed the point of no return. That fine line has become infintesimally small. They're the addict/ drunk walking the impossible road side line test - heel to toe, heel to toe, keep your hands down at your sides, now turn. They will fail.  

Wed, 11/30/2011 - 20:43 | 1933264 midgetrannyporn
midgetrannyporn's picture

The squid doth protest too much, methinks.

Wed, 11/30/2011 - 20:43 | 1933269 ZeroPower
ZeroPower's picture

I like their thoughts on HY for 2012 going long the XOver and shorting bunds.

Wed, 11/30/2011 - 20:44 | 1933270 tmftdoyle
tmftdoyle's picture

why now? because ben b and his minions still hold onto the delusional belief that by regularly squeezing the equity markets at each successive flirtation with a major breakdown level that they will
"save the economy" and "improve the lives of average americans".

it's a sad comedy!

Wed, 11/30/2011 - 20:44 | 1933271 tmftdoyle
tmftdoyle's picture

why now? because ben b and his minions still hold onto the delusional belief that by regularly squeezing the equity markets at each successive flirtation with a major breakdown level that they will
"save the economy" and "improve the lives of average americans".

it's a sad comedy!

Wed, 11/30/2011 - 20:44 | 1933272 tmftdoyle
tmftdoyle's picture

why now? because ben b and his minions still hold onto the delusional belief that by regularly squeezing the equity markets at each successive flirtation with a major breakdown level that they will
"save the economy" and "improve the lives of average americans".

it's a sad comedy!

Wed, 11/30/2011 - 20:44 | 1933273 tmftdoyle
tmftdoyle's picture

why now? because ben b and his minions still hold onto the delusional belief that by regularly squeezing the equity markets at each successive flirtation with a major breakdown level that they will
"save the economy" and "improve the lives of average americans".

it's a sad comedy!

Wed, 11/30/2011 - 20:52 | 1933310 TrulyStupid
TrulyStupid's picture

Jim Sinclair's take on this: (he usually gets it right)

"The reason that sovereign debt cannot fail is the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing that garbage against failure.

If euro debt fails, the Western financial world implodes, so it will not now."

 

http://www.jsmineset.com/

Wed, 11/30/2011 - 21:37 | 1933437 Cursive
Cursive's picture

@TrulyStupid

 If euro debt fails, the Western financial world implodes, so it will not now."

Why not now?  If not now, when?

Thu, 12/01/2011 - 11:04 | 1934828 TrulyStupid
TrulyStupid's picture

Because of the credit lines just extended, a short term remedy to be sure.. but sure to be followed by more QE.

Wed, 11/30/2011 - 20:56 | 1933318 blue
blue's picture

GS pissed the long euro trade at 1.45 got killed couple mo's ago,unless we upset the Iranian's more, oil back to 80...

Wed, 11/30/2011 - 20:58 | 1933325 fpscod9
fpscod9's picture

Yes, Yes, Yes, it is all criminal behavior,,BUT,,rally will continue because the Governments are the criminals and nothing you can do about it, EXCEPT , revolution,,good luck with that...CAN'T BEAT THEM JOIN THEM...Long Financial and Material..

Wed, 11/30/2011 - 21:06 | 1933350 slewie the pi-rat
slewie the pi-rat's picture

we'll give you a good deal to get you started in this new round of credit expansion, but you still gotta pay the vig, ok?

Wed, 11/30/2011 - 21:26 | 1933410 Joseph Jones
Joseph Jones's picture

Who are these walking brain dead "investors" who bought stock today?  They must have the IQ of those infamous Wal Mart shoppers with their pants down exposing their butt crack (or worse). 

Is today's stock market move an "inside" joke for Bernanke and his buds?

Oh, and I love the disclaimer on NPR news, repeated several times with "alert" inflection et all: "...this fixes none of the several major long term issues at hand..."

Doh!  Ya think? 

Ya'all said the bottom might fall out as soon as this Monday...guess you were right! 

 

Wed, 11/30/2011 - 21:54 | 1933485 loveyajimbo
loveyajimbo's picture

I would trust AG Holder before anything from Goldmans gob... and he is one corrupt slime ball.

 

William Black for President!!

 

Grant for Treasury

 

Paul for Fed Chairman

 

And that NY Atty general for the new AG!

 

Blankfein for ambassador to Iran

Wed, 11/30/2011 - 22:55 | 1933643 Dr. Gonzo
Dr. Gonzo's picture

The DOW loved oil blowing past $100 today so much that it felt the need to close up almost 500 points to celebrate. It might go down 500 points tomorrow if someone farts too loud but the important thing is that the volatile up down swings are the signs of a perfectly healthy and well functioning market. -sarc-

Thu, 12/01/2011 - 00:06 | 1933834 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

Why does the squid even pretend to be surprised, alarmed, or even publish investing "advice"(L.O. fucking.L). Everyone knows they are spoon-fed (how appropriate) all market moving events directly from TPTB.

Thu, 12/01/2011 - 00:51 | 1933927 ucsbcanuck
ucsbcanuck's picture

Does anyone think BAC will test the $5 line again soon?

Thu, 12/01/2011 - 01:05 | 1933947 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

Are they doing this to get past the  treaties? is this the legal loophole for the ECB to create unlimted money?

Thu, 12/01/2011 - 01:22 | 1933974 optionmillionaires
optionmillionaires's picture

Goldman has lost their clout. Their Conviction Buy list has been a joke, when it used to be an instant 5%+ Pump...

Hard to take them serious anymore ~

Thu, 12/01/2011 - 01:25 | 1933977 chump666
chump666's picture

A major USD swap was coming.  Will it force bond yields down.  Nope.  ECB bond buying will do that, will the ECB start to buy unlimited amounts?  Hmm maybe not, if they do, oil will go to 200, gold 2500, stocks flat. Then war.

I think this is the FEDs 'QE3' via this swap.  They won't go nuts with official easing.  The ECB won't buy bonds unlimited.  It's just that bizarreness economic/military strategy devised by nutjob Bush era butboys i.e shock and awe etc etc.  Good for a few more days.  The market/Europe is broken, a weak USD won't even help.

Thu, 12/01/2011 - 06:08 | 1934257 Weisbrot
Weisbrot's picture

 

 

 

Now is when Goldman becomes honest?

 

Do NOT follow this link or you will be banned from the site!