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Italy Sparks Market Bloodbath: Financial Stocks Collapse

Tyler Durden's picture


So much for the US decoupling. Following 5 days of persistent refusals to deal with reality, the real world finally came back with a bang, and while the overall market tumbled the most in two months, it is really financial stocks that took the brunt of today's beating. As the chart below shows, the XLF has literally collapsed with most major banks on the ropes, and the broker dealer index down 6.45% the most since August 10. The reason? Italy of course, and the fear that once the country is forced to write down its debt, the bank failures will proceed in waves: first Italian banks, then French, and then everyone else, especially those that have already been in the market's crosshairs for their exposure. And if today was ugly, tomorrow promises to be an absolute bloodbath with Italy deciding to proceed with the issuance of €5 billion in 1 year Bills into what may well be a bidless market.


Unable to scramble back to VWAP, the buy-the-dippers faced some uncomfortable reality today in equities as we closed near the lows of the day in ES (on heavy volume). Financials dropped over 5.5% with some of the majors (MS, GS, BAC) and Minors (JEF) stumbling very hard. The biggest drop in financials in over two months (and ES also!) was the worst performing sector as equity markets retraced more of that richness relative to credit that has been hanging over this rally's head. Wherever you looked there was pain with Copper smashed lower (along with silver and less so Gold) as the dollar tore higher after EURUSD fell over 330pips from its morning highs.

ES managed a small pull off the lows into the close but remained well south of both VWAP (light blue) and CONTEXT (dark blue) as volume was 30% above average by the close.


A one-day drop in the Financials ETF of over 5.5% is the most since the early August chaos.

And as usual, this is what happens when too much faith in central planning meets reality:

But it will get worse: unless the ECB steps in early and forcefully tomorrow, this is coming:

Away from stocks, credit was even more aggressively sold off (just as we saw in Europe this morning) with HY crushed - which will implicitly drag our expectations of equity market's relative-value down also.

We have been very vocal at the pump-and-dump we suspect has been going on in the HYG ETF and its underlying HY cash market and today saw HYG dramatically underperform at the close. It seems perhaps (once again) that the liquidity hedge prefernce shifted back to HYG (the high yield bond ETF) after HY17 (the suppoosedly liquid credit derivative index) dried up.

And then HYG also cracked lower into the close relative to SPY...

While taking advantage of this disconnection may seem simple, we suspect that HYG was simply the easiest place to set out hedges as we accelerated weaker into the close and every other market dried up. We discussed this at length last week and especially note that we were growing worried about the exuberance in the HYG and the HY bond advance/decline line.

The 'save' in Oil early on (around the report and the EU close) along with the weak auction in 10Y TSYs probabaly supported ES more than otherwise as broad risk assets did not drop quite as dramatically. TSYs closed well off the low yields of the day but were still down for the day quite handily. VIX blew back out as did implied correlation as macro overlays were grabbed at whatever cost for liquidity. Gold remains  up 0.8% on the week but gave back some today with Silver just negative on the week now. The
dollar strength and equity weakness combined to drag us back to -3% YTD
in terms of constant USD purchasing power (and -2.27% outright in the

Charts: Bloomberg


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Wed, 11/09/2011 - 17:05 | 1862955 Mister Ponzi
Mister Ponzi's picture

Time for the deer, bitchez!

Wed, 11/09/2011 - 17:18 | 1862964 Dr. Engali
Dr. Engali's picture

I shot one with a bow last week. It gave me the same look.

Wed, 11/09/2011 - 17:19 | 1863041 Dr. Engali
Dr. Engali's picture

Getting junked by a bunch of people who have no problem eating burgers from McSlaughterhouse.

Wed, 11/09/2011 - 17:22 | 1863055 john39
john39's picture

no animals were harmed at mcslaughterhouse...   soy doesn't scream.

Wed, 11/09/2011 - 17:25 | 1863073 Pladizow
Pladizow's picture

"You can ignore reality, but you cant ignore the consequences of ignoring reality"

- I think this quote is either Ayn Rand or Snooki discussing her herpes.

Wed, 11/09/2011 - 17:28 | 1863097 camaro68ss
camaro68ss's picture

O shit, the deer is out. What happend?

Wed, 11/09/2011 - 17:32 | 1863118 TruthInSunshine
TruthInSunshine's picture

A gaggle of 401(k) sheeple on the loose (already chipped & ear tagged), that need rounding up before the next culling/sheering:

Wed, 11/09/2011 - 17:34 | 1863128 Cdad
Cdad's picture

Lol...the fucking deer.  I cannot help laughing like an idiot every time I see that pic.

What a great fucking day today, no?  Drinks are on me.

A grateful Cdad

Wed, 11/09/2011 - 17:53 | 1863210 redpill
redpill's picture

Do it roaring 20s style, try a Sazerac!

Wed, 11/09/2011 - 18:37 | 1863429 TheSilverJournal
TheSilverJournal's picture

The USD is in much worse shape than the Euro. The only solution in the US and Europe is the printing press. A silver breakout is in the works. If countries leave the Euro, it will surely be a test for fiat currencies.

Wed, 11/09/2011 - 18:49 | 1863471 ratso
ratso's picture

Not true

Thu, 11/10/2011 - 00:16 | 1864592 jeff montanye
jeff montanye's picture

it's all true except for the part about the printing press.  and that part would be fine if there were quote marks around solution.  won't stop a relatively hairy bear market but it doesn't mean they won't try.

Wed, 11/09/2011 - 19:02 | 1863532 NewThor
NewThor's picture

Cramer just said American banks will thrive. LOL!

Wed, 11/09/2011 - 19:02 | 1863533 NewThor
NewThor's picture

Cramer just said American banks will thrive. LOL!

Wed, 11/09/2011 - 19:53 | 1863708 Mr Pink
Wed, 11/09/2011 - 17:34 | 1863127 redpill
redpill's picture

Probably just a technical glitch with the markets, it can't really be a sell-off.  Every day on Power Lunch they say things are getting better.  So they are, right?

Wed, 11/09/2011 - 17:43 | 1863161 TruthInSunshine
TruthInSunshine's picture

The Bernank is already tackling the vexing problem of E = mc2 (and the downside of contagian, velocity and leverage) in a bold attempt to disprove it or jerryrig a workaround.

Wed, 11/09/2011 - 18:07 | 1863288 smlbizman
smlbizman's picture

if it was not for the berskanke, our, not mine, banks would be penny stocks like the ones overthere......

Wed, 11/09/2011 - 19:08 | 1863552 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Damn Bernanke for keeping the squid alive.

Wed, 11/09/2011 - 20:05 | 1863746 Bay of Pigs
Bay of Pigs's picture

Wait a second, is that Corzine on his knees underneath Blankfeins desk? What's he doing there?

Wed, 11/09/2011 - 18:12 | 1863318 Nascent_Variable
Nascent_Variable's picture

The Bernanke is trying desperately to find a way to move faster than the speed of light, so that he can travel to a planet that won't be filled with angry mobs trying to guillotine him.

Thu, 11/10/2011 - 00:22 | 1864603 jeff montanye
jeff montanye's picture

or, rather, to time travel so as to kill alan greenspan's father.  and, perhaps, to pursue an honest profession himself.

Wed, 11/09/2011 - 17:44 | 1863173 kito
kito's picture

Was this a fear based sell off or an excuse to take profits from this cray run up? I would think the former. And if markets are forward looking, wouldnt tomorrows bond flop be built in already? Full disclosure-i hold DOG amd have been getting bitch slapped

Wed, 11/09/2011 - 18:47 | 1863465 Oh regional Indian
Oh regional Indian's picture

it was a bear fased sell-off.

it was a YU 55 based sell-off.

it was a prepping the market for a major dive sell-off.

it was a sell-off.


Paying Attention

Wed, 11/09/2011 - 20:39 | 1863891 Pike Bishop
Pike Bishop's picture

a 3% move in the equities yielded me +20% on the long VXX (VIX) today. With regression to strip out relative move, and a couple of other variables which inhibit capturing the pure residue/essence of short-term fear.....

That gave me my highest Shitting-of-Pants Multiplier since Japan fucked-with and failed on their JPY, and sent the first tidal wave to the Western asset markets on Aug 4. In fact, it's higher.

The Hedgies want their Dip n Rips to add a point or 2 before the end of the year?

Well, they may not get a tapering sell-volume signal, to buy this bitch back, even though they may think they have one when the time comes..

The primordial inertia of today, was not nearly spent in the selling. This is stronger than anything I've seen in 3 years.

Let's watch.

Thu, 11/10/2011 - 00:25 | 1864610 jeff montanye
jeff montanye's picture

primordial inertia, bitchez!

Wed, 11/09/2011 - 18:40 | 1863437 I Got Worms
I Got Worms's picture

I'm looking at the yahoo finance graph of the DOW today, and it shows a 400 pt jump for a split second at 3:00 Eastern - anyone else see that? what is the opposite of a flash crash?

Wed, 11/09/2011 - 20:17 | 1863793 SilverIsKing
SilverIsKing's picture

A Flash Dash?

Wed, 11/09/2011 - 19:50 | 1863695 mkkby
mkkby's picture

Turn off the HFTs tomorrow and let's watch this sucker drill down to the earth's core.

Thu, 11/10/2011 - 00:33 | 1864633 ceilidh_trail
ceilidh_trail's picture

Where's Robo and Harry when we need them???

Wed, 11/09/2011 - 17:37 | 1863139 Raskolnikoff
Raskolnikoff's picture

Gov has to put up a new firewall, looks like team PPT was too busy surfing for porn today and forgot to push the buy button.

Wed, 11/09/2011 - 20:13 | 1863779 Troll Magnet
Troll Magnet's picture

shit.  no wonder all the porn sites were slow today.  i was wondering why...

Wed, 11/09/2011 - 17:42 | 1863164 docmac324
docmac324's picture

Very good.


Wed, 11/09/2011 - 19:57 | 1863717 mkkby
mkkby's picture

I never eat at those places but I broke down last week and used a free coupon at Burger King.  I shared a few tiny pieces of "meat" with my cat, and he threw it up.  That shows you how poor the quality is.

Wed, 11/09/2011 - 20:20 | 1863808 Ms. Erable
Ms. Erable's picture

So your feline friend is apparently not cannibalistic.

Wed, 11/09/2011 - 20:03 | 1863739 Coronal Mass Ej...
Coronal Mass Ejaculation's picture

You don't have to be soy dramatic

Wed, 11/09/2011 - 17:23 | 1863059 achmachat
achmachat's picture

Believe it or not, over here:
1) hunting with wide dispersion shotgun = perfectly legal
2) hunting with bow and arrow = illegal

Wed, 11/09/2011 - 17:27 | 1863088 Dr. Engali
Dr. Engali's picture

That's just nuts. I prefer to hunt with a bow. I don't care to hunt with a gun,although I will if need be.

Wed, 11/09/2011 - 18:04 | 1863272 Quantum Nucleonics
Quantum Nucleonics's picture

how 'bout a 50 cal mounted on a pickup?

Wed, 11/09/2011 - 18:52 | 1863484 tmosley
tmosley's picture

Or a helicopter.


Wed, 11/09/2011 - 19:48 | 1863688 disabledvet
disabledvet's picture

That's what I hunt people with! Just renewed my license too! Looks I'm only allowed ten this season.

Wed, 11/09/2011 - 17:23 | 1863061 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Can we start calling "bulls", "deers"?  It would seem more fitting.

Wed, 11/09/2011 - 19:51 | 1863699 disabledvet
disabledvet's picture

Yes you can...cuz as anyone whose ever hunted for them will tell you "I shot him five times and he got away."

Wed, 11/09/2011 - 17:25 | 1863079 Spastica Rex
Spastica Rex's picture

Yes - pre-ground, hemetically sealed meat packets are morally superior to animals you have to kill and prepare yourself. America: if I don't want to know about it, it ain't real.

Thu, 11/10/2011 - 00:30 | 1864620 jeff montanye
jeff montanye's picture

last sentence sums up much of the last half century.  maybe a whole lot more.  it may be the human condition.

Wed, 11/09/2011 - 17:27 | 1863083 spartan117
spartan117's picture

Curious, did you eat the deer?  I didn't junk you btw.

Wed, 11/09/2011 - 17:31 | 1863107 Dr. Engali
Dr. Engali's picture

Yes I do. I would never kill for killings sake. Hunting is my prefered method for putting meat on the table.  If I figure all my costs in it comes to 40 cents per pound and it's all natural.

Wed, 11/09/2011 - 17:41 | 1863156 o_rly
o_rly's picture

I respect that. If I could hunt for my meat where I live I would do that. People eating meat from McDonalds or supermarkets are eating meat that most likely came from a suffering and boxed in animal. Hunting deer usually saves them the pain of dying of old age, as long as the properly aged deers are killed, and as long as the hunter is a good shot. 

I don't get hunters who just hunt for sport w/o eating their kill. Sickening.

Wed, 11/09/2011 - 17:47 | 1863184 Dr. Engali
Dr. Engali's picture

One thing that peolpe don't know is that the meat that they are buying in super markets is injected to enhance both color and flavor. Actual meat looks nothing like that.

Another thing that people don't understand is that if the deer are not harvested they overpopulate and do a lot of civilian damage as well as crop damage.

Wed, 11/09/2011 - 18:01 | 1863251 catacl1sm
catacl1sm's picture

and cause human deaths from car crashes.

Wed, 11/09/2011 - 18:57 | 1863510 Joe Sixpack
Joe Sixpack's picture

"...and cause human deaths from car crashes."


And give us the opportunity for "deer in the headlights" photos for use on Zerohedge!

Wed, 11/09/2011 - 20:38 | 1863882 Esso
Esso's picture

Oh well, the guy in the car was going to die anyway when his car hits the tree in front of the deer.

Tough titty says the kitty...

Wed, 11/09/2011 - 18:16 | 1863334 DosZap
DosZap's picture

Dr. Engali

as well as STARVE to death.......................

If we did not have hunters, we would have no wildlife.(Except predators, for a while).

Wed, 11/09/2011 - 19:12 | 1863565 candyman
candyman's picture

Processors also pump water into the beef to increase weight so you can pay more per Lb.

Wed, 11/09/2011 - 20:30 | 1863850 TheAntiGov
TheAntiGov's picture

Beleive it or not. But also put concrete in the feed.

Wed, 11/09/2011 - 17:48 | 1863189 run4thehills
run4thehills's picture

mmm....I love those McRibs!!!  Nothing like a good ol' caged in, boxed up, compressed meat-wich.  Yummmy

Wed, 11/09/2011 - 18:17 | 1863340 s2man
s2man's picture

Our neighbor calls meat from the store, "fake meat", so she can pretend it wasn't an animal.  You should have seen the look on her face when we told her we were raising rabbits. TO EAT!

Thu, 11/10/2011 - 03:51 | 1864903 TruthInSunshine
TruthInSunshine's picture

Your neighbor may be referring to meat scraps slapped together and melded with 'meat glue,' but you would be in a better position to know than I.

Rabbit is among the best tasting proteins, especially when sauteed or stewed, and treated as the Italians or French do.

It's my personal opinion that game taken quickly and dispatched humanely is far more moral on all levels (as well as healthier) than factory farmed, genetically modified animals (most people have no idea that all store bought chickens are artificially inseminated, as the breast is so large - Americans love that white meat of the breast on chickens - that it prevents the now female genetic frankenstein freak of science lab and test tube chickens to copulate as normal chickens do - their breasts are too large to allow the male to do his business, literally).

I do not enjoy killing animals, but I do find that if we're honest, and consume animal protein, we should at least not live in a sanitized fantasy of shrink wrapped, factory farmed, assembly line killed and gutted, pre-packaged cuts of meat, raised on growth hormone laced, genetically modified grain, fattened with genetically modified lysine, pumped full of antibiotics, and that hunting for sustenance and not sport, and dispatching with our game as quickly and humanely as possible is far superior from an ethical and moral standpoint.

In defense of the vegetarians, of which I am not one, I believe Henry David Thoreau once wrote (in Walden) that it is sheer folly and quite ironic to believe that man must consume meat in order to preserve his strength, when the very Ox or Horse that the farmer hitches (or used to hitch) his plow to in order to till his fields are vegetarians, but then again, the GI tract of an ox or horse is far different than that of a man, and men lack certain enzymes that oxen and horses do have that allow conversion of hay and grass into digestable and nutritionally absorbable nutrients.

Therefore, I do believe that a compelling argument can be made that a 100% vegetarian diet, without animal protein at least once or twice a week, if even in small portions (4 ounces or so), is an inferior one, and puts people in greater jeopardy of certain nutritional deficiencies.

Thu, 11/10/2011 - 07:23 | 1865001 i-dog
i-dog's picture

"vegetarian diet ... is an inferior one"

Absolutely. Human brain development accelerated away from earlier primate species specifically because we learned to eat cooked meat protein (after discovering the uses of fire). Also, the brain is almost solid cholesterol - so eating only lean meat is not necessarily biologically helpful.

Thu, 11/10/2011 - 11:55 | 1866092 DaveyJones
DaveyJones's picture

I never knew hotdogs and harvard had so much in common. Lots of cultures have lots of vegetarians and I hear some of them have some pretty smart people. Although protein and amino acids come in all sorts of packages, the biggest challenge is B-12. The way most "primitive" cultures get that nutrient is through organic composting and recycling animal waste into their soils. That said, I became a vegetarian about four years ago. Not sure why just slowly came into it eating less and less meat. Would never be lacto ovo, tht seems pretty challenging. I've honestly never felt better but it could just be my system, some systems tolerate some foods better than others.

Wed, 11/09/2011 - 18:19 | 1863350 Calmyourself
Calmyourself's picture

Mmm backstrap with a little ginger fried in olive oil.. 

Wed, 11/09/2011 - 18:27 | 1863390 Dr. Engali
Dr. Engali's picture

I can guarrantee you that all the people junking me will be begging for any meat when the shit hits the fan. The golden horde will find out the hard way that meat doesn't come from a package.

Wed, 11/09/2011 - 19:08 | 1863550 Calmyourself
Calmyourself's picture

Yeah but the deer I hunt in the backyard and peter cottontail will disappear quick if it comes to that, most folks will not willingly starve.  Be prepared to live on what you have stored for a while..


Wed, 11/09/2011 - 19:32 | 1863643 Chump
Chump's picture

Yeah I think the local game populations will be pressed, but it's not like just because Joe and Jane McSheepleton up the road are going to be facing starvation that they'll have any luck trapping or hunting.  Generally speaking, the people with hunting and trapping skills already do those things.  Hard to learn on the fly, ya know, especially if your motivator is death.

Tangentially, the .22LR is a much-overlooked round in my opinion.

Wed, 11/09/2011 - 19:58 | 1863720 UP Forester
UP Forester's picture

I concur.  .22LR is dirt cheap, and a solid between the running-lights takes down most animals.

Wed, 11/09/2011 - 19:54 | 1863709 Mr. Lucky
Mr. Lucky's picture

Know any good soylent green recipes?

Wed, 11/09/2011 - 19:27 | 1863614 jomama
jomama's picture

ok, i have to draw a line somewhere.  if the shit hits the fan so bad that people are begging you for meat, odds are humans have lost the ability to cool the outstanding 441 global nuclear reactors.  if they all melt down, we're in extinction event so fast people won't have a chance to be begging for meat, nor will it matter if you have any.

Wed, 11/09/2011 - 20:06 | 1863754 trav7777
trav7777's picture  it would not even be close to an extinction event.  in fact, it would hardly kill anybody

Wed, 11/09/2011 - 21:14 | 1864010 Bobbyrib
Bobbyrib's picture

I'm sure people were begging for meat during the Great Depression too.

Wed, 11/09/2011 - 19:04 | 1863536 yabyum
yabyum's picture

With a nice cheap pinot noir and some Yukon Golds from YOUR garden,

Wed, 11/09/2011 - 19:27 | 1863613 UP Forester
UP Forester's picture

I prefer farva beans and a little Chianti, fipfipfipfipfip!

Wed, 11/09/2011 - 18:44 | 1863458 I Got Worms
I Got Worms's picture

I go to a holistic nutritionist who's done wonders for my health, and he says that eat organic meat at all costs, BUT if it is at all possible, eat wild game, such as hunted deer, dove, quail, fish, etc.

Wed, 11/09/2011 - 18:50 | 1863477 Dr. Engali
Dr. Engali's picture

Natural meat has a very high protein count with very little fat. And there are no additives.

Wed, 11/09/2011 - 21:15 | 1864018 Bobbyrib
Bobbyrib's picture

I eat organic meat whenever I go shopping. I never really go shopping though.

Wed, 11/09/2011 - 17:28 | 1863092 LFMayor
LFMayor's picture

Piss on those pansies. 

Wed, 11/09/2011 - 17:59 | 1863243 GOSPLAN HERO
GOSPLAN HERO's picture

There are lots of wounded deer with with an arrow stuck in a non-lethal area.

Also, unlike a large caliber bullet or slug, an arrow provides no shock effect on impact.


Wed, 11/09/2011 - 18:10 | 1863311 Socratic Dog
Socratic Dog's picture

Nah, not too many.  With modern cutting heads added to the weight of the arrow, they go straight through.  Like, through the ribs on both sides, then the humerus (breaking it), and buried in the ground on the other side.  That isn't gonna stick anywhere.

Wed, 11/09/2011 - 21:46 | 1864136 pods
pods's picture

Exactly why a bow is way superior to a large caliber bullet in terms of dressing and cut up.  

I have shot deer with a bow that have ran about 20 yards, stopped to see what happened, then fell over dead.

During gun season, I usually see at least one poorly shot deer that the hunter surely thought would go down simply because of the kinetic energy of the round.

I do agree on shot placement.  One shot or no shot.


Wed, 11/09/2011 - 18:24 | 1863377 rpboxster
rpboxster's picture

No. Getting junked if you had to shine one to shoot it.

Wed, 11/09/2011 - 18:34 | 1863406 Dr. Engali
Dr. Engali's picture

Never have to shine. I hunt after work between 4:00 and 7:00 when the sun goes down. Shining is for hunters with no skills.

Wed, 11/09/2011 - 18:53 | 1863494 Delonglaw
Delonglaw's picture

I signed in just to vote you up.  Interesting thing...I am a vegetarian, so is my son, and so was my grandfather.  It is a family "tradition" you'd say.  But the main reason I don't eat meat is that the "food" they sell in the supermarket is so sub-standard.  I would eat venison (humanely hunted), I eat fish (caught in their natural state) and I have raised and slaughtered chickens myself when I had the proerty to do so. If anyone voted you down with a mouth full of "meat" or a leather belt or leather shoes, they are a hypocrite.  Carry on with your hunting!  It is a skill that will be VERY useful in the coming times...


Wed, 11/09/2011 - 19:00 | 1863525 Dr. Engali
Dr. Engali's picture

I can appreciate your position. I like to stay as natural as I can when it comes to eating. And there is a certain amount of personal satisfaction knowing that God is providing me with the skills to put food on the table during good times and bad.

Wed, 11/09/2011 - 20:14 | 1863781 Chump
Chump's picture

You can tell a lot about someone by how they hunt, and your comments here point to you being a pretty decent dude.  I was excited to go out hunting with a group of guys at work when I first started there, until one described how they set up their choke points for the dogs to run to.  I told him running dogs is not hunting, it's entertainment via torture.  We are still not friends for some reason.

My grandfather in one of the few hunting lessons he was able to pass on to me said, "if you see a dog chasing a deer, shoot the dog."

Wed, 11/09/2011 - 21:49 | 1864144 pods
pods's picture

That is our standing policy.  Of course, there are so many coy dogs now Old Yellar surely is inside during season.


Wed, 11/09/2011 - 19:58 | 1863721 disabledvet
disabledvet's picture

Adolph Hitler was a vegetarian. Did I just ruin it for you?

Wed, 11/09/2011 - 19:15 | 1863573 nmewn
nmewn's picture

"Getting junked by a bunch of people who have no problem eating burgers from McSlaughterhouse."


The junk to green ratio looks about right...about 20% would starve if someone didn't feed them ;-)

Wed, 11/09/2011 - 17:20 | 1863044 Ahmeexnal
Ahmeexnal's picture

rally tomorrow
rinse and repeat

Wed, 11/09/2011 - 18:08 | 1863289 baby_BLYTHE
baby_BLYTHE's picture

It seems as if everyone, including ZHers were caught long. What is holding the market up other than air and rumors of QE? I bought TZA the other day for the first time ever in my mini trading account. Not a bad day for me. If the Eurozone collapses that would crash the US markets too, no?

Wed, 11/09/2011 - 18:16 | 1863336 mjk0259
mjk0259's picture

Most big US companies do a lot of business in Europe so their earnings will get hit by Euro recession, possibly somewhat offset by currency gains when translated to dollars. Banks are unknowably interlocked with each other and Euro gov's thru the magic of CDS so they all go down togethere which alone brings down the US stock avgs since financials are a big component.

Thu, 11/10/2011 - 07:08 | 1865108 swissbene
swissbene's picture

Non US earnings will have negative pressure for these multinationals with strenghthening (relative) USD... depending on some details like hedging...

Wed, 11/09/2011 - 18:29 | 1863399 Hedgetard55
Hedgetard55's picture

Yes. +55 kajillion.

Wed, 11/09/2011 - 19:13 | 1863566 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

That's the number before, "Fucktillion", right?

Wed, 11/09/2011 - 18:40 | 1863443 Panafrican Funk...
Panafrican Funktron Robot's picture

It depends on the manner of the crashing.  If, for example, Merkozy follows through on the two-tier plan with the "core" in the Euro currency, that would be extremely bullish for US equities by way of a substantially stronger EURUSD.  The direction of that currency pair trade makes up the large majority of the US equity market action.   

Wed, 11/09/2011 - 18:49 | 1863468 homersimpson
homersimpson's picture

HELLZ NO on me being caught long. I took my beating with FAZ.. but IT'S DAYS LIKE TODAY THAT REMIND ME WHY I HOLD FAZ.

Sorry. I'm a believer that FAZ can defeat economic policies born out of stupidity and desperation.


I'm long FAZ - and short on stock market integrity and financials.


Wed, 11/09/2011 - 17:27 | 1863085 Richard Chesler
Richard Chesler's picture

unless the ECB steps in early and forcefully tomorrow.

Bring out the Pea Shooter!

Wed, 11/09/2011 - 17:38 | 1863149 Dr. Richard Head
Dr. Richard Head's picture

SO those were the peas Obama was talking about.  Damn.

Wed, 11/09/2011 - 17:29 | 1863101 BandGap
BandGap's picture

Taking my kids out when firearm season opens in a week.  Nothing like it.

Wed, 11/09/2011 - 17:41 | 1863160 Crack-up Boom
Crack-up Boom's picture

You shot a deer in your headlights with a bow and arrow?  Around here, spoltlighting is illegal, but people who spotlight usually use guns.

Wed, 11/09/2011 - 17:43 | 1863170 Piranhanoia
Piranhanoia's picture

You will tell us if you get gored or stomped by one of your unarmed vegetarian victims?  At least have your next of kin let us know so we can have a laugh if they terminate you with prejudice.

Wed, 11/09/2011 - 17:56 | 1863198 Dr. Engali
Dr. Engali's picture

I suppose you prefer to have your vegetarian meat killed by lethal injection from a third party, so you don't have to get your hands dirty. Typical comment from a morally superior snob.

Wed, 11/09/2011 - 20:06 | 1863750 Coronal Mass Ej...
Coronal Mass Ejaculation's picture

We will eat that virgin venison with pride and shove some down the throats of fucking holier than thou vegetarian shits...

Wed, 11/09/2011 - 18:01 | 1863252 the_magician
the_magician's picture

I salute you! I shot wild boar once, it ran away..

Wed, 11/09/2011 - 19:19 | 1863590 nmewn
nmewn's picture

I shot an elephant in my pajamas...

Wed, 11/09/2011 - 20:07 | 1863759 Coronal Mass Ej...
Coronal Mass Ejaculation's picture

I shot my load once...or animals were injured.

Wed, 11/09/2011 - 20:33 | 1863869 nmewn
nmewn's picture

Yes, the ole premature mis-fire.

I always use premium ammo when hunting dangerous game...cuts down on the "anxiousness" ;-)

Wed, 11/09/2011 - 19:18 | 1863585 jomama
jomama's picture

that takes skill. for reals.  i personally can't stand the budweiser swilling fat knucklheads nailing them from 300 yards out with an automatic rifle who think they're so great.

Wed, 11/09/2011 - 20:01 | 1863731 UP Forester
UP Forester's picture

Really?  I personally couldn't hit shit at 300 yards with 3-round burst.  Dem guys are good, eh?

Wed, 11/09/2011 - 23:38 | 1864497 stant
stant's picture

elks good and ferral hogs are big target here these days. meat is meat man gota eat. the market  is best watched with popcorn. as for deer hard to dodge when on a cell or texting.

Wed, 11/09/2011 - 17:11 | 1863001 X.inf.capt
X.inf.capt's picture

time to raise the...

"FREAK OUT" flag...



le chic, 

le freak




Wed, 11/09/2011 - 18:04 | 1863270 slewie the pi-rat
Wed, 11/09/2011 - 18:12 | 1863316 Yen Cross
Yen Cross's picture


Wed, 11/09/2011 - 18:56 | 1863503 Manthong
Manthong's picture

It ain't over yet..

That fat lady has a a whole pile of lamb chops to chow down on before it's singing time. 

Wed, 11/09/2011 - 20:15 | 1863784 slewie the pi-rat
slewie the pi-rat's picture

that's her DOW 11K hat!

she's ready to show us her tonsils, BiCheZ!

Wed, 11/09/2011 - 17:14 | 1863013 bania
bania's picture

Today was certainly Deer Worthy

Wed, 11/09/2011 - 17:15 | 1863018 brew
brew's picture

i missed that furry little critter.  hadn't seen him for awhile...

Wed, 11/09/2011 - 21:52 | 1864151 krispkritter
krispkritter's picture


Wed, 11/09/2011 - 17:16 | 1863026 blu
blu's picture

Bring it, Bambi!

Wed, 11/09/2011 - 17:22 | 1863048 hedgeless_horseman
hedgeless_horseman's picture

La Biche, bichezzz!!!

Wed, 11/09/2011 - 17:25 | 1863076 Nothing To See Here
Nothing To See Here's picture

Time for the good bank / bad bank split rumor !

Wed, 11/09/2011 - 18:00 | 1863249 Carlyle Groupie
Carlyle Groupie's picture

Then the 'China will buy the bad bank because it's flush with cash' rumor.

Wed, 11/09/2011 - 18:30 | 1863400 Calmyourself
Calmyourself's picture

China do to a tranched swap with Rmb leveraged bonds with variegated maturities cross indexed to Cuban oil futures with a splash of Venezuelan gold repatriation guarantees.  We should be good for six months..

Wed, 11/09/2011 - 17:29 | 1863093 CompassionateFascist
CompassionateFascist's picture

No big deal. Just shaking loose some $$$ for upcoming US Tbill auctions. This will go on for awhile yet. US paper will be the last to burn.

Wed, 11/09/2011 - 18:08 | 1863298 CPL
CPL's picture

Best looking horse in the glue factory...

Wed, 11/09/2011 - 18:49 | 1863469 I Got Worms
I Got Worms's picture

Tallest midget.

Wed, 11/09/2011 - 19:21 | 1863598 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Maybe, but your statement is true only by deault, because gold will never burn.

Wed, 11/09/2011 - 20:17 | 1863791 Everybodys All ...
Everybodys All American's picture

True, but if we don't get our act together quickly a further downgrade of our debt is forthcoming and the wtf moment catches everyone running for the exits. Treasuries included.

Wed, 11/09/2011 - 17:54 | 1863185 Taint Boil
Taint Boil's picture



Deer In The Headlights:


Urban Dictionary:
A mental state of high arousal caused by anxiety, fear, panic, surprise and/or confusion, or substance abuse. A person experiencing the "deer in headlights" syndrome often shows behavioral signs reminding those of a deer subjected to a car's headlights, such as widely opened eyes and a transient lack of motor reactions.

Mike doesn't like cars; he's like a deer in headlights when he goes to his driving lessons



Wiki Answer 

When deer are in the dark say by the side of the road and a car's headlights shine on them, they are blinded momentarily and are susceptible to being shot. That why this method of deer hunting is against the law.


It is an expression that means that you are too stunned to move. In other words you are terrified. It comes from when you catch a deer in your headlights and they just freeze.


The Word Detective 

We do know that “to look like a deer in the headlights” leaped into the public vernacular in a big way with the 1988 Presidential campaign of George H.W. Bush.  Bush’s running mate,  Senator James Danforth (“Dan”) Quayle, was widely (and arguably unfairly) regarded as unprepared for the job of Vice President.  During a debate with Senator Lloyd Bentsen, Quayle defensively compared his level of experience to that of John F. Kennedy when he became President, to which Bentsen famously replied “Senator, I served with Jack Kennedy.  I knew Jack Kennedy.  Jack Kennedy was a friend of mine.  Senator, you’re no Jack Kennedy.”


Using English 

When one is caught off guard and needs to make a decision, but cannot react quickly.




used to refer to a state of fear, panic, or confusion so extreme that it is impossible to act or think normally:faced with too many choices and not enough real information, we are like deer caught in the headlightshis deer-in-the-headlights expression



deer in the headlights (uncountable)

(idiomatic) A mental state of high arousal caused by anxiety fear, panic, surprise and/or confusion, or substance abuse. The behavioral signs are like a deer subjected to a car's headlights, such as widely opened eyes and a lack of motor reactions.



Wed, 11/09/2011 - 19:47 | 1863685 jdelano
jdelano's picture

Had to stop by for one more comment--either Ambrose has lost his mind or it isn't him writing anymore.

Wed, 11/09/2011 - 22:38 | 1864269 Buck Johnson
Buck Johnson's picture

Tomorrow is going to be bloody.  With Italy trying to sell 5 Billion in bonds and the possibility of the rate going to 8% and beyond along with the largest municipality bankruptcy happening in the US.  Will have the markets in the negative 300 to 400 range by 10 AM.

Wed, 11/09/2011 - 17:18 | 1862956 TruthInSunshine
TruthInSunshine's picture

If you're enjoying what's just the beginning of the implosion of all things Italia, grab some popcorn, and get ready for Spain & France, bitchez.

Will there be a follow up meltdown in the U.K. or Portugal first, the U.S. or China?

What's brewing in Japan?

We'll all just have to wait to find out.

Count on this:   There are two paths to clearing the sepsis, and both require massive amounts of pain, deleveraging, haircuts and financial and economic (in the broader sense) losses.


When The Bernank Broke All Markets; A Historical Lesson In Monetary Policy Madness (Random House)

How Old Man Rothschild Turned Me Into An Indentured & Indebted Serf & Busted My Balls and I Loved Him For It; A Modern Money Mechanics Love Story (Red Shield Press)

Let's Borrow A Lot More Fiat To Pay Off Our Debt; Dr. Paul Krugman's Recipe For An Ailing, Automized Economy (Wu-Tang Publishing)

2 + 2 = 5; The Diatribes of Christina Romer (Monkey Ass Stank Clearing House)

Larry Summers Knew Everything Before He Did A 180 - And He Knew Everything All Over Again; Confessions Of A Narcoleptic & Narcissistic Custard Donut Addict (JabbaHut Cafe Press)


Wed, 11/09/2011 - 17:19 | 1863040 onelight
onelight's picture

But didn't the MHFT say it was all bullish from here on out?

Wed, 11/09/2011 - 17:20 | 1863046 TruthInSunshine
TruthInSunshine's picture

Yes, and he is watching 'Money Never Sleeps' in the shower as we converse, and buying ES hand over fist AH.

Wed, 11/09/2011 - 17:20 | 1863050 DaveyJones
DaveyJones's picture

"Dimi, Dimi, why you do this to me Dimi?"

Wed, 11/09/2011 - 19:23 | 1863602 nmewn
nmewn's picture

Gotta keep your head on a swivel these days ;-)

Wed, 11/09/2011 - 17:23 | 1863063 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Excellent, TIS!

Your timeline is as good as anyone's.  No, we will not escape it either.  My guess is that we get hyperinflation.

Gold will help ease the pain.



Wed, 11/09/2011 - 17:29 | 1863098 DaveyJones
DaveyJones's picture

more than a guess, it's just about certain. History doesn't lie, just the folks who write it. As someone else pointed out earlier, FOFOA's latest piece is golden.  

Wed, 11/09/2011 - 17:51 | 1863196 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, FOFOA's piece was extraordinary!



Just took out $2000 more from the bank today.  I will buy gold with it!

Wed, 11/09/2011 - 18:43 | 1863455 Overflow-admin
Overflow-admin's picture

+1 for FOFOA

I expect a correction in Gold(CHF) for a good entry point but the recent relative move of the Gold(CHF) is greater than Gold(USD) and Gold(EUR). So I stand with my Hildenbrands and cross the fingers for the printing-press not to go full gear before years end.

Wed, 11/09/2011 - 19:24 | 1863604 chump666
chump666's picture

China is next, should take out the world.  If they go mad buying USD's next few hrs. 

The begining of China's great sell off.

Wed, 11/09/2011 - 17:05 | 1862957 GeneMarchbanks
GeneMarchbanks's picture

Just had a Deergasm!

Wed, 11/09/2011 - 17:05 | 1862959 Dr. Engali
Dr. Engali's picture

Ben's firing up his new German made printing presses now.

Wed, 11/09/2011 - 17:07 | 1862967 kengland
kengland's picture

Exactly, as are the Chinese and ECB. Go for it. Short the close.

Wed, 11/09/2011 - 17:09 | 1862980 HelluvaEngineer
HelluvaEngineer's picture

How could I do that at 4:07?

Wed, 11/09/2011 - 17:20 | 1863047 NewThor
NewThor's picture

Time machine bitchez!


Wed, 11/09/2011 - 18:21 | 1863356 s2man
s2man's picture

And the bartender says, "we don't serve time-traveling subatomic particles in here".

A quark walked into a bar.

Wed, 11/09/2011 - 18:34 | 1863417 Hedgetard55
Hedgetard55's picture




Wed, 11/09/2011 - 20:18 | 1863798 yabyum
yabyum's picture

@s2 Thanks after the butt hurt session on the miners: I needed that.

Wed, 11/09/2011 - 17:10 | 1862986 Dr. Engali
Dr. Engali's picture

Uh Oh Keynsian junker alert. Monitoring this site.

Wed, 11/09/2011 - 17:11 | 1862998 walküre
walküre's picture

Whatever announcements of liquidity juicing the markets, it will have to wait a bit.

Short the close and sit tight for a few weeks.

US is technically still in growth mode. Fake but growing nevertheless.

The "tools" (just another word for operating a printing press) will come out a bit later.

If not, the world will starve.

Wed, 11/09/2011 - 17:20 | 1863045 Mark123
Mark123's picture

Cue Israel/Nato attack on Iran, backed by the UN based on substantial yet unverfiable evidence that they may have some sort of atomic bombish technology they are working on.  Good thing the most radical bunch of religious loonies in the middle east already have a stockpile of hundreds of nuclear weapons.

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