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Here Is Today's 3pm Rumor...
In true save-the-market style, as 3pm ET comes around we have another rumor from Europe. This time it purports to be the creation of an investment fund, as a subsidiary of the EFSF, which will 'attract' external capital sources, via tranching of returns, to enable the purchase of sovereign debt in primary and secondary markets. Headlines, via Bloomberg, for now suggest this is yet another strawman and given the concessions on this morning's EFSF issue, just who exactly is going to be investing in this levered product and why? Equity markets remain 'exuberant' relative to credit though HY is slowly catching up to the intrday heights of the S&P 500 futures.
*EURO PLANS FOR INVESTMENT FUND IN DOCUMENT FOR EUROGROUP TALKS
*EURO `CO-INVESTMENT FUND' WOULD BE SUBSIDIARY OF EFSF: DRAFT
*EURO `CO-INVESTMENT FUND' TO ATTRACT `EXTERNAL CAPITAL SOURCES'
*EURO FUND RISK SHARING ACHIEVED VIA `DIFFERENT CAPITAL LAYERS'
*EURO FUND WOULD BUY SOVEREIGN BONDS ON PRIMARY, SECONDARY MKTS
It really doesn't sound like anything but the beginnings of the structure of the SIV for the EFSF that we have been discussing for a couple of weeks now - but of course that is irrelevant - more leverage and more 'solutions' must be positive for US equities!
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Hey, that's a great idea. I do love co-investments.
Because tranching worked so well for subprime mortgages.
Gotta love these "external capital sources"... can I also tap some of that alien money gravy train? I got some uh.. shaxmatist bonds to sell, 1 trillion euros worth in fact, I can even tranche them into CDOs for you kind external capital source providers
Es didn't close above 1260 again. It's been trying since 11/3 even with that big push up in the last hour or so. Slapped down again. Maybe they go test the lower part of the range possibly closing the monster gap around 1198.
Who?
Extraterrestrials or the Federal Reserve through proxies that's who.
Why?
Extraterrestrials because they may not have witnessed this particular flagrantly obvious scam anywhere in the known universe before.
And the Federal Reserve because if Europe blows up the $1Q (yes that's quadrillion with a "Q") derivative market blows up and the party ends badly for their squid masters.
Yep- worked great for Enron......
YESSSSS!!! Europe saved again! I love these guys!
40 minutes to go ... I bet we drift back into negative territory from here.
We have to be certain this has been verified as "voluntary" on a voluntary basis.
Wow! Absolute MASTERS of salesmanship in Europe.
"We have this new idea for a leveraged piece of dog crap that WILL attract external capital. It will, ok...so just accept that first. Then you can kick yourself for even wasting the time it took to question us and start buying while there's still any dog crap left! It's going fast, dude! 3 billion Euros just flew off the shelf under almost uncontrolable demand from all sides. I'm gonna try to hold you something, but at this rate you only have like 50 years before it's all spoken for..."
Ahh, so that's what happened to the coke dealers I knew in college...
Pavlov's dog
I hope anybody who buys this crap is not a fiduciary....because when you lose your money you WILL have a lot of expalaining to do....gambeling on a low probability event versus investing... that's a class action I'd like to join.
Pick any mutual fund.
who holds the risk.. who eats the losses.
whomever that is.. should NOT be happy about this plan.
(hello? German taxpayers? Are you listening?)
I would be curious to know what the real sentiment is in Germany regarding all this.... Since all we hear is Merkels lipservice.
Thinks have tendancy to get real ugly when those Germans get riled up.
nobody ask the german public and probably will never, until the public don't ask the fucked up politicans/establishment.
Woah, woah, woah, woah, woah.
I went long hearing the 3 p.m. RUMOR would be free Lindsey Lohan BJ's for all investors in BAC.
WTF!?!?!
Selling my position now....
Fairly certain there are free Linsday Lohan BJ's for any bidder. And by bidder i mean any john.
But it isn't really worch buying C or BAC for a freebie. Hell, the streetwalkers in our tourist town probably cost more than a share of thsoe two dogs combined! (not that I'd know, rumor has it, etc....)
You rang?
But what about every Tom, Dick, and Harry?
don't think so, t
but maybe tom's hairy dick...
You bought BAC? ... I'm pretty sure all you have to do is hang out on Hollywood Blvd. and Lindsey will show up and service you for free ...
Alchemy vs. Math: the battle is on.
It would be nice to see whoever is dumb enough to buy on a rumor like this to be promptly shot in the head.
Sell the rumor, buy the news.
Tranching sure saved CDO's circa 2006. Good luck with the 2012 version.
LMFAO.
I believe they are trying to lure all that private money from Uncle Warren, Rockefellers, Murdoch, Rothschilds, Soros, and <insert Globalist dupe name here> to invest in their Ponzi scheme in the open and not have it raise eyebrows
Whew! Now I can relax for the rest of the year... err... month... err... week... err... day!
The rumors are a cover for shadow banking to inject fiat into TBTYF acct's. Fucking horseshit. All this on top of Shapiro and Gensler totally washing hands of ANY MF Global shit.
This whole game needs to burn to the ground NOW!
Looks like Europe is being more creative. They keep juicing the market. It usually comes at the last hour of trading.
Shit! I thought it was because Jacksons Dr verdict was in!
FAZ - going long and staying strong..
At least profit off the HFT's stupidity while you still can..
I love the resolve but you have to be sitting on some big paper losses, no?
I just don't see the leveraged funds working as a long hold.
Be careful broski.
Well, I haven't been that long.. it's only been a couple weeks now.
But the market is too juicy and overpriced to let go of FAZ now.
The DJI gains are miniscule but irritating.. but the crashes are what makes FAZ too tempting to not hold during times like these..
The LONGER this goes on, one can't help that we are being screwed, from another LESS newsworthy event, on our side of the pond.
The Right hand is moving, whats the LEFT up to?.
classic pump and dump.
tomorrow, they will have a plan to make new debt insturments out of used kleenex
All this does is to turn more and more "investors" away from eurosovereign "markets". Seriously, besides the japanese gubbmint, who the fuk would buy this kind of crap??? And the more leverage, layers and confusion you add to the mess, the underlying "AAA wallets" are starting to look very shaky themselves.
Shh no one pay attention to gold knocking on $1800's door. All is well in the land.
I've been paying attention ...
should expect another rumor at about 3:45 just to make sure the /ES rips past 1260.
Lovely. VIX is falling. i'll reload once under 30 in a few moments...
Sell the Russel. Check that down volume this morning on IWM. Then look at the ridiculous, no volume melt up in the last two hours. Simply stupid.
Some short bus, dumb ass criminal syndicate Wall Street bank is doing its part to prop this mess up...in a levered fashion. Look for that player to get absolutely obliterated/forced out of that position in the next 18 hours.
Nice Pachinko machine.
Off balance sheet SIV. Shades of Enron.
If they only were able to hide that shit for a little longer, Enron would now be seen as a perfectly legitimate business model using a "capital structure similar to competition and broader industry"
"an investment fund, as a subsidiary of the EFSF, which will 'attract' external capital sources, via tranching of returns"
What could possibly go wrong? I'm buying the lowest tranch! It's got the best return and the agencies still say it's AAA!
Wasting away in MF Globalville...
Searching for my lost shaker of salt....
Some people say it a Corzine to blame but I know, it's my own damm fault....
What the heck are 'DIFFERENT CAPITAL LAYERS' ?
A new way to say tranches? Only different.
What the heck are 'DIFFERENT CAPITAL LAYERS' ?
Debt 1, debt 2, debt 3, and so on.
Me thinks all yous guys are short and just keep adding and adding....praying and pleading...and yet, the elevator of late has an inop down button. Don't you just love the market?
this is not a market.
Speaking Of Shorts.....Be Still And Watch....As The Hopium Induced Bulls Lose Their Shorts when The BullShit Covered Arse Wipe Starts To Unravel. Powder Keg Just Waiting To Blow.
does this not sound like sub prime MBS? except this time there will be no private investors. just private shorters.
maybe AIG will underwrite the CDSs.
stealing a line from "The Departed": Maybe, maybe not, maybe go fuck yourself!
that about sums it up.
is that like my co-insurance?
or is it more like my co-pays?
Count me in.
http://i.huffpost.com/gen/361309/thumbs/r-MONOPOLY-MONEY-large570.jpg
A courageous man dies once, but cowards die a thousand deaths.
Why they jail the insider traders? This type of rumor traders are worse.
rumor-manufacturing...
one of the last remaining growth industries.
last week on alex jones, a reputable guest was on, forgot his name, mentioned that once the iran takedown starts, bank holidays would be announced, to coincide with a new world currency! could all this daily ramping frontrun such an announcement? YOU BET!!!!!
It doesn't matter whether your eating ribs, loin or bacon, it's ALL PIIGS regardless!
Maybe they can throw in some mortgage back securities, Bank of America stock, and some BitCoins in to sweeten the pot?
Everyone is waiting for Europe to roll over, but the final trigger may come from China:
http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/?vgnextoid=965242935fe53310VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Property&s=Business
See originall post here:
http://pragcap.com/is-the-chinese-property-market-collapsing
Its 3pm and Nurse Ratched is announcing medication time. Dig in boys
Anytime you see credit enhancements you should run not walk.
Banks' ECB overnight deposits hit 2011 high
"Banks continue to feel an extreme level of uncertainty" due to the ongoing debt crisis, said Luca Cazzulani, an economist at UniCredit in Milan.
http://www.marketwatch.com/story/banks-ecb-overnight-deposits-hit-2011-h...
Some folks are being cautious
much like lotto balls...KEEP THEM IN THE AIR.....
DO NOT let the truth out....
bottom line, and in all seriousness, Greece has 50B+ in debt to repay this month, and that is shy 10B I think, not sure about the real amount, but that is P&I for this month....nromally in this Charles Ponzi world they would issue, yes, you guessed it, more debt. But, who will buy more shit???
Much like we did in 1989 to the Japs by selling Pebble Beach Golf Course, auction off some relics...Parthenon anyone?? 1B????
Seriously, the bill is coming due this month and how in THE hell they will come up with this funny money is beyond me and everyone else....
ECB somehow, someway monetizes new debt. No other way. Hence gold on the rise.
Well At 6 Minutes Before Market Close...the markets sure seem to be buying the shit!! Talk about unfounded confidence...or blind faith....or just plain stupidity!
I can only assume that the functioning of the market is controlled by some force that resembles the id, rather than a rational mind. The endless news chatter out of the the Eurozone is exhausting in its tedious sameness.
From the price action, it looks to me that people are buying in a hurry fearing that the DOW will be 30000 tomorrow or something. It does look like a short covering thing to me.
Market's been doing this for a while. Closing at the highest high or highest low making it appear as if it were a sign of a strong bull market. To me it looks like it's all predictable and being painted by the PPT with the seal of approval followed by the TBTFs. The Dow should ease off a little and then ramp up to close up about 80 or 90 higher. That's what the pattern has been....Until everyone catches on then it's kill time.
Yes I agree. Good Call Gonzo. 2:59 and the Dow at 82. This type of activity always happens before a major reversal. The lemmings piling in while those in the know unload quietly allowing the markets to push up on emotion and hopium so they can cash in for as much as possible. Then....party time....Time To Short! The lemmings will now watch in despair as their hope crumbles along with their investments. And they will all say..."I didn't even see it coming".
Meanwhile on the domestic front, as 'substitution' and 'hedonics' have not made 'official' inflation low enough, Congress is considering moving to another measure which would lower COLA even more. Woot.
Soon we shall have deflation everywhere if we continue to 'innovate' our inflation measures....
http://www.fundmymutualfund.com/2011/11/congress-considering-moving-to-new.html
Just noticed that the Dow Jones is right at the 200 day moving average. I think they are trying to get a break out instead of a break down.
Just noticed that the Dow Jones is right at the 200 day moving average. I think they are trying to get a break out instead of a break down.
And By Next Week We Will Have These Headlines:
*EURO `CO-INVESTMENT FUND' WOULD NOW BE A SUBSIDIARY OF THE SUBSIDIARY OF THE EFSF
*EURO FUND RISK SHARING ACHIEVED VIA `DIFFERENT CAPITAL LAYERS AND MORE LAYERS ON TOP OF THOSE LAYERS AS NEEDED
*EURO FUND WOULD BUY SOVEREIGN BONDS ON PRIMARY MKTS, PLUS SECONDARY, AND EVEN THIRD MKTS IF NECESSARY
Whatever It Takes As Long As The Markets Are Happy On Hopium, Which They Have Once Again Smoked Towards The Latter Part Of The Trading Day
Would you mind applying this correction:
*EURO FUND RISK SHARING ACHIEVED VIA `DIFFERENT TRANSIENT CAPITAL LAYERS AND EITHER MORE DIFFERENT VOLUNTARY LAYERS, OR VOLUNTARILY DIFFERENT LAYERS ON TOP OF THOSE TRANSIENT LAYERS AS URGENTLY NEEDED
HFT's mine news feeds, on smallish volume that eat up anything that causes a lazy wall street trader to slap a large long pos. HFT's (low volume) x support + dumb 'smart' money buying a bull trap = the FUBAR trade from hell will soon be upon us all.
Wake up people! We are being played AS FOOLS! Why doesn't somebody smart, like a guy with a Ph.D. and a beard, open their mouth and say ENOUGH! Shit or get off the pot! Did G-Pap quit yet? They can'e even get THAT right.
Oh Puh-leeze!
It's just the same old PPT Bump 'n' Grind ... Burlesque at its best. As for those rumors ... you thought you saw "something" there for a split second (pardon the pun) but it was just a shadow.
But the whole show's not for the likes of regular ZH readers who are - face it - beyond the reach the propaganda and yet statistically insignificant ... the show is for those wavering on the edge of no-man's-land and is designed to ensure that the population of critical thinkers stays statistically insignificant. That's what Trolls do.
Rumor or not, this is all still HFT bots driving up the price on "good news" syntax... I feel sorry for the suckers who trust their money to hedge funds who use those pieces of shit... That, or it is in fact just the PPT... You can see another mini ramp up around the 3:30 mark....unbelievable...
Right on time, God bless their souls. I started worrying that sense would start moving the market; the fool.
heluva rumor, brownie!
Pathetic!
Just get on with the collapse so that something - anything can be rebuilt afterwards. Who gives a damn about the Corzines of this world....Let them eat cake on their way to the gallows.Would be fun though if the scaffold and gallows would be decorated with...paper products.
At 13:51:1236555681 Eastern Standard time.....in a server farm co-located next to the NYSE.....
Computer A to computer B - "would you like to buy spy for 0.1% above market?"
Computer B to computer A - "yes...will settle next week"
....2 nano seconds later....
Computer B to computer A - "would you like to buy spy for 0.1% above market?"
Computer A to computer B - "yes...will settle net next week"
repeat 5 billion times, then start shorting.
"If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society." Jin Liqun, chair of China's sovereign wealth funds.
http://www.aljazeera.com/programmes/talktojazeera/2011/11/2011114434664695.html
"A most marvelous and profitable undertaking,
no one to know what it is".
Sign on a London stock kiosk, South Sea's Bubble
From Charles MacKay's "Extrordinary Popular Delusions And The Madness Of Crowds"......1849.
No worry about rumors or lies put out by Market Makers, the SEC is back to doing what thay like, reviewing porn instead of policing.
These traunching schemes rely on the assumption that defaults are non-correlated. Is there anyone out there who thinks sovereign defaults won't be correlated? When the dominoes all fall down the upper traunches are just as worthless as the bottom.