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BANK RUNS BANK RUNS BANK RUNS!!!!!!!!!
And you run and you run to catch up with the [banks] but their sinking
Racing around, to come up behind you again...
credit: "Time" (Waters/Gilmour)
Where bank runs?
And the crooks this morning, still trying to ramp the fake ass SPY futures LOL This is going to be a bloodbath today after the crappy payroll numbers are released. No way in hell those are good.
There are the numbers, and then there are the real numbers. If QE3 is not ready for launch, they will just make them up.
Everyone is waiting for QE3 to be launched at any moment. I am skeptical. Inflationary forces are still lurking with interest rates near all time lows. Wait until the market bloodbath is over and interest rates are double digits, then the printing presses will fire up!
Well said. People tend to forget that long-term unemployed are not counted in the unemployment rate which is cited by Uncle Sam and the MSM.
...And these days we have the highest rate of long-term unemployed since the early 30's.
500 pts down on thurs, going into NFP with FOMC next week and a BS conference btw Merkel n Sarkozy?
Smells like a setup to squeeze the shorts.
Im sitting this shit out, short the bounce, too much risk here.
Watching Olli Rehns’ address and following questioning raises quite a few eyebrows. In Fact it appears that Olli’s own eyebrows seem permanently attached to his forehead, marking he’s not believing any of the crap he’s spouting himself.
That would be a first ! A politician believing what he says...... Come on, where are you coming from ?
No problemo--they will just make margin calls illegal.
"no man--no problem" --Joseph Stalin
Could somebody take the time and explain the underlying mechanism a little bit more in detail? Thank you in advance!
I'm no expert but here's how i look at it: normally bond vs equity are two to one in size of respective markets. Right now it's more like ten to one. In other words even a small increase in margin on percent is huge number wise. Since we're all broke there's no cash therefore u must sell either the actual instrument or if youre shorting buy back the collateral. Since almost all liquidity comes in form of shorting treasuries it's a double whammy of outright buying and the mother of all short squeezes. If QE 3 arrives that should pretty much kill pimco and wisdom tree.
Oliver, it has to do with bond holders who purchase on margin. When the value of an asset decreases, the clearing house or those who allow investors to buy on margin require higher collateral to borrow. If everyone is buying heavily on margin, when they sell their bonds the clearing house immediately takes cash from the sales of the assets from the seller to meet the new margin requirements. Most likely these same investors are losing money on bonds elsewhere, thus, they have to sell more to make up for the withheld cash and other loses. They are forced to sell to make the new margins. It is a downward spiral.
First of all thank you for your help and explanations (both of you). Let see if I've got it right. ... banks in Europe (and not only in europe) are taking loans from eachother and from the central banks and use this money to buy bonds (for example spanish bonds). Then they use these bond as collateral to get more cheap loans and to buy more bonds and other assets. This is one spiral. right? The clearing is made trough clearing houses like this LHC clearing house. Which has the rule to raise margin requirements if a bond passes 450 basis points. So then they need to raise more cash to mantain their positions. In this case if they have not enough cash they have to sell some assets. Right? So they sell for example spanish bonds to meet the margin requirements. But they can also sell stocks, futures or enything else they have as assets. Right? So this could be another spiral downward. This could be also the reason that gold and silver and other not related assets are getting hammered down on these days when the markets are paniking, because big players have liquidity problems and has to sell off everything they have in order to raise cash. Is it right more or less?
Is it also possible to get first the money and then buy bonds and place them as collateral. Is this meant by repo mechanism?
Margin call bitchez!
Ultimately the system works. Now watch for the markets to be suspended. In the public interest, of course. "Bank holiday". (Bitchez).
LHC = Large Hadron Collider?
LHC = Long Hairy Cats ?
I know this girl. Her name was Shirley Moon or something like that. Nice tits by the way.
This is both funny to watch and painful at the same time. I love to see the politician bastards squirm but I hate to see the pain the masses are going to feel.
never fear...germany, france and spain are holding a conference call
Seems that the menu du jour will be Tapas, Bratwurst and Profiterolles. Why not....
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