Market Response: The Euro Is Saved (If Only For A Few Hours)

Tyler Durden's picture

By now, we know that isolated central bank intervention has a half life of about 24-48 hours. Next, we will find out what the duration of a concerted global central bank intervention will be. The kneejerk reaction so far, at least in the EURUSD is good to quite good. And when the impact of this latest bailout is phased out, as it eventually will, who will step in for the next much needed heroin shot of unlimited liquidity? Mars? Or, more likely, Uranus.

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spandrall's picture

we are saved! buy BofA

Divided States of America's picture

Fuckin joke....they coordinated all this BS, all the fuckin central banks. THe eco data that came out are legit, but they know that there was going to be this coordinated bailout annoucement that trumps all this bad news so they didnt mind disclosing the real data because they know the robots will go orgy over this coordinated bailout move.

Sophist Economicus's picture

Oh great, Uranus jokes again...

Mae Kadoodie's picture

Tyler, there are Klingons on Uranus.

eurusdog's picture

EURCHF is actually lower after the announcement! Ha, now the SNB can fight themselves and the FED. Definition of a circle jerk if I have ever seen one!

nyse's picture

There is no such thing as "fundamentals".

djsmps's picture

They are positively giddy at CNBS. I heard the phrase "global recovery" and Cramer praising Geithner for his "no more Lehmans" remark.

Sean7k's picture

It does explain the relentless selling of gold and silver before the announcement. 

MFL8240's picture

Sure it does.  It helps to convince the sheep that Gold and Silbver are junk, believe in paperr currency to solve world problems.

Mr Lennon Hendrix's picture

The explaination is thus:  the bankers needed leverage and they continue to convince the rest of the Central Banks to go along with the fiat ponzi by loaning gold out.  Once the gold is loaned out, and only then, will the assets be stashed into the balance sheet.  Then the cash loans are furnished to the banks (Tyler's 'Firehose').

The change in the price of gold is two fold:  when the loan is made the price drops because in theory demand is quelled.  The other reason is because the loans were made in dollars, because it is the dollar that backstops the Euro.  The dollar supply is increased and the dollar weakens. 

Now comes the mega ride in the EUro, fresh stocked with dollars.  Gold will continue to increase, as it needs to soak up liquidiity to mask inflation, and the Euro will follow it.  Look for EUR/USD $1.60 by the winter solstice as well as $3300 gold.

MFL8240's picture

This shit is really beyond the pale.  Where does reality fit in?

TradingJoe's picture

Nowhere! Because Reality would mean DEATH for ALL BANCHEROS!

whstlblwr's picture

Reality fits with you. You see this so spread the word. Look at the gas today, it spikes.

So the central bankers give themselves hug and kisses while we spend hundreds to eat and fill up car. You guys spread the word too. It's easy to show friends this intervention to save Europe bank make gas and food sky high in US.

Tense INDIAN's picture

more liquidity......inflation in India ia racing towards double digits...last 9.8% petrol prices increased by 3.14 god...this will fly high ....tomorrow is RBI Rate Hike day .....remember they have Hiked rates 11 times in 18 months....what next???

Migrated Bird's picture

Well my friend.. We were already screwed anyway .. After a certain level, you do not feel pain because you are already in lala land.. 50bps hike tomorrow??

Everybodys All American's picture

Where does Geithner intend to go get this extra cash? Print. If this is not treasonous I have not seen it. Why are we bailing out Europe when our own destiny becomes more at risk? And no one votes or has a say in this intervention. Unbelievable.

Arttrader's picture

De stash of de cash is hidden in de-basement.

Reptil's picture

correction, you are not bailing out europe, you are bailing out (european) banks

Paralympic Equity's picture

I can't be angry, because I shorted into the printing press, and against the debasement of the USD.

This is no market, but I should undestand the basics by now 

Thomas Jefferson's picture

Phew.  That was a close one.  I soiled myself last night.

See you in 24 hours.  I have to go pick up another case of diapers.

KinorSensase's picture

Is there a silver lining somewhere in those diapers?

gringo28's picture

EURUSD up bitchez. told you so. there is no employment recovery in the US until the USD declines. in the race to devalue, we will prevail. position accordingly and stop pretending that this isn't a natural, predictable course of events.

Hedgetard55's picture

Someone said "there are no markets anymore, just interventions" recently on this page. Truer words were never spoken.

Hedgetard55's picture

Someone said "there are no markets anymore, just interventions" recently on this page. Truer words were never spoken.

monopoly's picture

How can anyone with 1/2 brain believe any of this bullshit. Just when I think I have heard and seen everything, a new script comes out. My goodness, when will this farce be over.


Dugald's picture

When Uranus is sore and ragged and hanging on the ropes....

pamriallc's picture

no problem. all of the sovereigns know that this has to be controlled. those wishing for armageddon will be wishing for a long while.  inflaiton, death, and taxes were certain before, certain now, certain in the future.  history has never been different.  ditch bonds, buy a few global index funds if they're "equal weighted" and throw a 20% metals position in the safe.  keep a years cash in the bank or some other form of cash.  pay off your house.  relax.  end of story.

unky's picture

My friends, now its time to change Euros into PMs ;- )

Dr. Engali's picture

This is just unbelievable. I can not comprehend how detatched these markets are from reality. What's it going to take for them to finally break? The good news is gold and silver are pulling back. I can add to my positions.

lizzy36's picture

2008 crisis checklist at 50%:

Short selling ban - YES

Coordinated CB liquidity ops - YES

Retail bank run - NO

Coordinated international gov bailout - NO

FunkyOldGeezer's picture

Is Tyler actually Ben Bernanke's alter ego????

Why so down on Europe unless you have something to gain, like world domination?

There is a way to report news without being so, in your readers' faces.

Irish66's picture

How many people got wiped out on the other side this morning?

youngandhealthy's picture

Run for cover short bitchez....

vegas's picture

Like I have said before, never underestimate the will of government [or exchanges] to change the rules to punish speculators and traders. The banksters aren't going to go out quitely, and they will have all the help they need from the likes of Turbo Tax Timmy and the rest of the gang.

docj's picture

And a nice 10-handle opening pop on the S&P on pretty much uniformly crappy data this morning.

Mission Accomplished.

Theta_Burn's picture

Square root charts across the board, record dillution and gold DOWN?

Que 2bil PISSED Chinese

MantiXX's picture

Exactly my thoughts...  What about the Trillion US and Billions of EU country style bonds the Chinese are holding.  THis is all Western Central banks and will cut their value in half.  WOW.  Get the popcorn, going to be a crazy ride.

Seize Mars's picture

...who will step in for the next much needed shot of unlimited liquidity? Mars? Or, more likely, Uranus...

Seize Mars!!!

FunkyOldGeezer's picture

Traders have to make money somehow, don't they? They ain't gonna make it by having the price of anything go just up or just down. That would imply half of them don't win. They have to spread the goodies around, so they can all feed at the trough.

Trading volatility such as this is great, if you have the cojones.

marcusfenix's picture

so here's the MW headline "US stock futures rise on ECB action". so it's no big deal that our own economy is stuck in a perpetual state of crappy, where millions of American's only meal selection today will be what they may find in the dumptster. just so long as one CB or another can continue to throw piles of cash at problems they have no hope of's all good for the markets.

this is not going to end well...

BigJim's picture

Hey! Think of all those high-end American-made goods the newly-flush European bankers can buy with all that freshly-printed green stuff!

Cleanclog's picture

Lower by end of trading today?  Or gotta wake up to how Europe digests 24 hours later?  Greek vacations boom.