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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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Thu, 09/15/2011 - 09:23 | 1672863 spandrall
spandrall's picture

we are saved! buy BofA

Thu, 09/15/2011 - 09:34 | 1672942 Divided States ...
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.

Thu, 09/15/2011 - 09:23 | 1672866 Sophist Economicus
Sophist Economicus's picture

Oh great, Uranus jokes again...

Thu, 09/15/2011 - 09:27 | 1672891 Mae Kadoodie
Mae Kadoodie's picture

Tyler, there are Klingons on Uranus.

Thu, 09/15/2011 - 09:28 | 1672902 spiral_eyes
Thu, 09/15/2011 - 09:34 | 1672939 Oh regional Indian
Oh regional Indian's picture

Europe has broken fundamentals chibez!

ORI

A Poem and Much needed Exercise!

Thu, 09/15/2011 - 09:45 | 1672999 eurusdog
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!

Thu, 09/15/2011 - 11:41 | 1673552 nyse
nyse's picture

There is no such thing as "fundamentals".

Thu, 09/15/2011 - 09:24 | 1672873 djsmps
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.

Thu, 09/15/2011 - 09:24 | 1672875 Sean7k
Sean7k's picture

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

Thu, 09/15/2011 - 09:26 | 1672886 MFL8240
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.

Thu, 09/15/2011 - 09:54 | 1673061 Mr Lennon Hendrix
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.

Thu, 09/15/2011 - 09:25 | 1672876 MFL8240
MFL8240's picture

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

Thu, 09/15/2011 - 09:26 | 1672888 hedgeless_horseman
hedgeless_horseman's picture

Uranus?

Thu, 09/15/2011 - 09:27 | 1672890 TradingJoe
TradingJoe's picture

Nowhere! Because Reality would mean DEATH for ALL BANCHEROS!

Thu, 09/15/2011 - 10:35 | 1673233 whstlblwr
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.

Thu, 09/15/2011 - 09:26 | 1672889 Tense INDIAN
Tense INDIAN's picture

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

Thu, 09/15/2011 - 09:34 | 1672941 Migrated Bird
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??

Thu, 09/15/2011 - 09:27 | 1672896 Everybodys All ...
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.

Thu, 09/15/2011 - 09:30 | 1672915 Thomas Jefferson
Thomas Jefferson's picture

Some dont believe in conspiracy.

Thu, 09/15/2011 - 09:31 | 1672923 Arttrader
Arttrader's picture

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

Thu, 09/15/2011 - 09:32 | 1672928 Reptil
Reptil's picture

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

Thu, 09/15/2011 - 09:39 | 1672973 nevadan
nevadan's picture

QEE.  Quantitative Ease Europe

Thu, 09/15/2011 - 09:29 | 1672900 Paralympic Equity
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 

Thu, 09/15/2011 - 09:28 | 1672905 Thomas Jefferson
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.

Thu, 09/15/2011 - 09:41 | 1672981 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That all depends.

Thu, 09/15/2011 - 11:50 | 1673586 KinorSensase
KinorSensase's picture

Is there a silver lining somewhere in those diapers?

Thu, 09/15/2011 - 09:29 | 1672910 gringo28
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.

Thu, 09/15/2011 - 09:30 | 1672914 Hedgetard55
Hedgetard55's picture

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

Thu, 09/15/2011 - 09:30 | 1672916 Hedgetard55
Hedgetard55's picture

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

Thu, 09/15/2011 - 09:30 | 1672918 monopoly
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.

 

Thu, 09/15/2011 - 09:36 | 1672949 Dugald
Dugald's picture

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

Thu, 09/15/2011 - 09:31 | 1672921 pamriallc
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.

Thu, 09/15/2011 - 09:32 | 1672929 unky
unky's picture

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

Thu, 09/15/2011 - 09:39 | 1672930 Dr. Engali
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.

Thu, 09/15/2011 - 09:33 | 1672931 lizzy36
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

Thu, 09/15/2011 - 09:32 | 1672933 FunkyOldGeezer
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.

Thu, 09/15/2011 - 09:36 | 1672952 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Such ingratitude!

Thu, 09/15/2011 - 09:32 | 1672934 Irish66
Irish66's picture

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

Thu, 09/15/2011 - 09:36 | 1672948 youngandhealthy
youngandhealthy's picture

greed killed the cat....

Thu, 09/15/2011 - 09:33 | 1672936 youngandhealthy
youngandhealthy's picture

Run for cover short bitchez....

Thu, 09/15/2011 - 09:35 | 1672945 vegas
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.

Thu, 09/15/2011 - 09:35 | 1672946 docj
docj's picture

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

Mission Accomplished.

Thu, 09/15/2011 - 09:36 | 1672947 Theta_Burn
Theta_Burn's picture

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

Que 2bil PISSED Chinese

Thu, 09/15/2011 - 13:32 | 1673973 MantiXX
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.

Thu, 09/15/2011 - 09:36 | 1672953 Seize Mars
Seize Mars's picture

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

Seize Mars!!!

Thu, 09/15/2011 - 09:40 | 1672956 FunkyOldGeezer
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.

Thu, 09/15/2011 - 09:38 | 1672965 marcusfenix
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 fixing...it's all good for the markets.

this is not going to end well...

Thu, 09/15/2011 - 10:46 | 1673294 BigJim
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!

Thu, 09/15/2011 - 09:38 | 1672967 Cleanclog
Cleanclog's picture

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

Thu, 09/15/2011 - 09:39 | 1672971 Dr. Engali
Dr. Engali's picture

So this week everything is good and all problems are solvedwe are all happy. Next week  we go back to problems with BAC and our banking problems. Then back to Europe blah blah blah

Thu, 09/15/2011 - 09:40 | 1672976 Gandalf6900
Gandalf6900's picture

SO they have officially said they will give USD liquidity to the banks (haven't they been doing this all along covertly), the banks are saved but when are they gonna save the economy?

Thu, 09/15/2011 - 10:20 | 1673161 azmi
azmi's picture

You guys really need to stop pitching every event with such a cynical dismissive attitude. You lose credibility that way. Trade the narrative mate - stop crying wolf all the time. Its just becoming a nuisance at this point.

Thu, 09/15/2011 - 10:37 | 1673197 Theta_Burn
Theta_Burn's picture

While i agree about the cynasizm, that is a very short term outlook you have there.

I'm no expert in these matters, but I DO know this, Historical never before seen manipulation, NOTHING has been fixed, throwing TRILLIONS to paper over fraud. etc.

The ones in charge ( the experts) what grade would you give them? but who knows maybe this will finally pull all of it together and greece will continue exporting olives and Ireland beer as i love both

Thu, 09/15/2011 - 10:38 | 1673252 waldocktrades
waldocktrades's picture

Commercial traders knew that the old boys network would pull them through for an opportunity make even more money off of the general public's lack of access to information. Close attention to the Commitment of Traders reports would've put you on the right side of this morning's ECB intervention.

See Tuesday's trade call - http://www.commodityandderivativeadv.com/andyftp/euro%20currency%20rally...

Thu, 09/15/2011 - 10:48 | 1673311 BigJim
BigJim's picture

And when the impact of this latest bailout is phased out...

They'll just do it some more.

Thu, 09/15/2011 - 10:57 | 1673363 Smithovsky
Smithovsky's picture

Gold is from Mars, silver is from Uranus!

Thu, 09/15/2011 - 14:20 | 1674145 Orange
Orange's picture

Add another serial winner to the Euro-realists. After Soros also Lee Kuan Yew says the Euro will fail. He knows something about disparate people living under one umbrella.

http://www.faz.net/artikel/S30638/singapur-gruender-lee-kuan-yew-asiens-vordenker-sieht-euroraum-vor-dem-ende-30687251.html

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