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Market Snapshot: Flip Flop.... Update - And Plunge On Bond Purchases, IMF, Lehman Comments

Tyler Durden's picture


Update 2: Draghi just killed IMF lending proposal - "lending money to IMF to buy Euro bonds is not compatible with the treaty" - EURUSD now in free fall.

Update: two additional comments, i) that the ECB is not the IMF, and that lending to the IMF would be very complex legally, and ii) that the liquidity situation is comparable to post Lehman have sent everything plunging to overnight lows. Lastly, Draghi just kicked the ball in Europe's court. This is about to get very ugly fast.


ES now well below pre-call levels and CONTEXT tracking lower too - risk-off, disappointment-on.

It was all going so well until Draghi dropped the coded 'less' bond purchases 'no bazooka' bomb-shell at which EURUSD, BTPs, European bank stocks, and ES all stalled instantly and started to revert to pre-Dragozel levels. BTPs are holding up the best for now, though almost entirely retraced, but a 1% up and down roundtrip in ES was enough for many to see the schizophrenic market at its best.

EURUSD 120pips off mid-speech highs.

European bank stocks surged (but remained well off yesterday's best levels) before reverting on Draghi's dose of reality.

BTPs almost entirely retraced but are doing the best so far as ES is now lower the pre-call levels. Sovereign spreads are at their wides of the day now as we note BTP spreads have risen 34bps from intrday tights.


Chart: Bloomberg


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Thu, 12/08/2011 - 10:04 | 1958093 midgetrannyporn
midgetrannyporn's picture

I prefer "Merkodrag".

Thu, 12/08/2011 - 10:12 | 1958145 scatterbrains
scatterbrains's picture

ot: could someone point me where in a broker's disclosures or client's signed agreement one might find the language that permits them to re-hypothicate etc ? Should we assume this is standard practice with all brokers ? Any Murial Siebert clients here know if they practice this ponzi technique ?

Thu, 12/08/2011 - 10:24 | 1958195 rufusbird
rufusbird's picture

I have been out of the business for over a decade but I will say that 20 to 30 years ago, brokerage customers had a choice of a ''Cash" or a "Margin" account. Supposedly, if you had a cash account your securities were not available for lending etc. Your choice and type of account was checked on the required account card which a broker was required to keep in his book.

Later, after money market features were added to most brokerage accounts, for money market sweep, it became more of a standard to treat all accounts margin accounts. By the late 1990's if a client wanted a truly segregated account they opened a DVP or delivery versus payment account in which the securities were delivered to an Independent Trust Bank to be held by the investor who had opened that account with the trust and held separately at their own expense. I had very few of those.

I am not sure of the status of those types of account today. That is the way it was.

Thu, 12/08/2011 - 10:13 | 1958149 GMadScientist
GMadScientist's picture


Thu, 12/08/2011 - 10:37 | 1958276 CreativeDestructor
CreativeDestructor's picture


Thu, 12/08/2011 - 11:01 | 1958429 vast-dom
vast-dom's picture

SImilarly, Teh Fed bailing out banks is not compatible with The Constitution, not to mention groslly exceeds the legal limitations of Teh Fed. The difference now is that Drag-man is leveraging for massive Eurozone QE.

Thu, 12/08/2011 - 12:44 | 1958967 Bananamerican
Bananamerican's picture

we'll find out soon enough...It could also be GD II "asset strippin' time"...

How fortuitous to have "The Drag-ster™" (Goldmanite) in the pole position in this mess...

Thu, 12/08/2011 - 10:05 | 1958095 Irish66
Irish66's picture

We are at Lehman

Thu, 12/08/2011 - 10:11 | 1958136 Spooky Polish
Spooky Polish's picture

Lehman States of Europe

Thu, 12/08/2011 - 10:32 | 1958244 junkyardjack
junkyardjack's picture

Maybe the banks will bail out the citizens this time

Thu, 12/08/2011 - 10:05 | 1958096 Temporalist
Temporalist's picture

Interesting.  The Romney/Gingrich markets.

Thu, 12/08/2011 - 10:10 | 1958128 Martial
Martial's picture


Thu, 12/08/2011 - 10:06 | 1958102 CreativeDestructor
CreativeDestructor's picture

with this half QE measures (unlimited loans for unliited time lets be realistic) which is supposed to save banks, if i were the nation who is supposed to signover my sovereignity, i'd show the middle finger.

ECB just lost credibility by backdoor QE-ing... game of chicken all the way... they'll never sign treaties, no way. would you sign if you knew ECB was still backstoping you?

Thu, 12/08/2011 - 10:29 | 1958234 StychoKiller
StychoKiller's picture

It's so hard for a drunk to get sober when someone keeps buying more shots of Jagermeister and Curvoisier -- Opa!

Thu, 12/08/2011 - 10:34 | 1958252 ucsbcanuck
ucsbcanuck's picture

Ouzo as well - although apparently that gives one a nasty hangover...

Thu, 12/08/2011 - 10:06 | 1958104 Maiden Lane
Maiden Lane's picture

The Market is once again trading on solid data and not rumours

Thu, 12/08/2011 - 10:07 | 1958105 Temporalist
Temporalist's picture

Gold and silver charts are exact copies....big middle fingers.

Thu, 12/08/2011 - 10:09 | 1958119 death_to_fed_tyranny
death_to_fed_tyranny's picture

And the Central Banksters continue to hold paper gold back. More naked shorting. Wash. Rinse. Repeat Adnauseam!

Thu, 12/08/2011 - 10:07 | 1958111 TradingJoe
TradingJoe's picture

Shake it Baby! As in "week hands, get out"!





Thu, 12/08/2011 - 10:07 | 1958113 HedgeFun
HedgeFun's picture

This market has mood swings that are almost as bad as my wife!

Thu, 12/08/2011 - 10:12 | 1958142 knukles
knukles's picture

You are a very luck man to have such a sweet lady for your bride. 

Mine learnt Jihad about 2 minutes after the I do's.

Thu, 12/08/2011 - 10:07 | 1958114 Cdad
Cdad's picture

...and J. Cramer is infuriated because the rule of law has been upheld in Europe.  Gives you a true glimpse into the Banana Republic Tree dreams of the criminal syndicate known as Wall Street.

Thu, 12/08/2011 - 10:38 | 1958134 GeneMarchbanks
GeneMarchbanks's picture

Yep. I'm not sure about rule of law, but the formidable opponent has emerged...

Thu, 12/08/2011 - 10:16 | 1958161 Everybodys All ...
Everybodys All American's picture

Guys like Jim Cramer and so many others on CNBC when this all fails are going to be held accountable for their part in the financial scam/show on the American people.

Thu, 12/08/2011 - 10:24 | 1958212 Cdad
Cdad's picture

I believe America is lurching towards your conclusion...however reluctant criminal syndicate Wall Street bankers are concerning the rule of law.

Cue the Corzine hearings.

Thu, 12/08/2011 - 10:09 | 1958118 RobotTrader
RobotTrader's picture

Yep, gold trading in exact lockstep with ES.


PM bulls better hope the SPY turns around, otherwise there is going to be an avalanche of selling at the COMEX.

Thu, 12/08/2011 - 10:11 | 1958140 PaperBear
PaperBear's picture

All this brings the day when the COMEX is out of physical metal.

Thu, 12/08/2011 - 10:39 | 1958292 Sean7k
Sean7k's picture

In the last two months, the CRIMEX has delivered 59 tons of gold and yet, the dealer inventory hasn't changed. There has been little to no deposits or withdrawls from the dealers. 

For someone to believe the Crimex is just sad. The only thing you can believe in is what your own eyes see and what your own hands hold.All the rest is smoke and mirrors.

Thu, 12/08/2011 - 10:15 | 1958157 firstdivision
firstdivision's picture

Shouldn't you be loading up with LULU?

Thu, 12/08/2011 - 12:17 | 1958806 SheepDog-One
SheepDog-One's picture

Or financial like BAC? Oh, thats down -3% today too. Looks like Robo will have to rely on bragging about things like Home Depot for today.

Thu, 12/08/2011 - 10:15 | 1958158 Cdad
Cdad's picture

Indeed...I think.  I cannot call the gold trade.  Failed many times in that areana.  However, I have to believe the downside on a barrel of WTI crude is at least $5 per barrel.  And Americans everywhere will rejoice at this deflation.

Thu, 12/08/2011 - 10:22 | 1958200 Stax Edwards
Stax Edwards's picture

I was afraid of a bad outcome in EZ.  

Anytime RoboTard goes all hyperactive posting a lot like he has this week is usually a good indicator of a top in the Markets.  You are the canary in the coal mine robo.

Thu, 12/08/2011 - 12:07 | 1958757 SheepDog-One
SheepDog-One's picture

Robo still seething with anger that he sold his gold at $900 calling the firm top is in.

Thu, 12/08/2011 - 10:09 | 1958122 Tsar Pointless
Tsar Pointless's picture

I'm horny.

Thu, 12/08/2011 - 10:16 | 1958163 Shleprock
Shleprock's picture

Me Too!

Thu, 12/08/2011 - 10:09 | 1958123 Saxxon
Saxxon's picture

Die SPY die!

Thu, 12/08/2011 - 10:09 | 1958124 Barry Freed
Barry Freed's picture

This Kabuki theatre followed by watching Corzine squirm is just too good, time to make some popcorn.

Thu, 12/08/2011 - 10:18 | 1958176 BandGap
BandGap's picture

No shit, "I don't know", WTF.

Man, I could use a Guinness about now.

Thu, 12/08/2011 - 10:10 | 1958129 Irish66
Irish66's picture

No printing.......we are at the end

Thu, 12/08/2011 - 10:10 | 1958133 RobotTrader
RobotTrader's picture

James Turk must be puking.


Gold down $35 from its highs in mere seconds.

Thu, 12/08/2011 - 10:14 | 1958156 Sean7k
Sean7k's picture

Like James Turk doesn't know a paper dump when he sees it? 

Thu, 12/08/2011 - 10:47 | 1958340 tmosley
tmosley's picture

You don't know an all you can eat buffet from vomit in the back alley, Robo.  Probably because they are the same thing to you.

Thu, 12/08/2011 - 12:15 | 1958764 SheepDog-One
SheepDog-One's picture

Robo puking....still cant get over his 'top is in' call on gold at $900.

Or his call to get all in long big time at DOW 12,700.

Thu, 12/08/2011 - 10:10 | 1958135 Global Hunter
Global Hunter's picture

The shoe is dropping even for the CNBC anchors.  

Thu, 12/08/2011 - 10:11 | 1958141 Atomizer
Atomizer's picture

Hmmmmm, which European currencies’ do we resurrect to backdrop peasantry panic? LOL

Thu, 12/08/2011 - 10:12 | 1958143 RobotTrader
RobotTrader's picture

Draghi doing exactly what Peter Schiff recommended.



And gold folded like a cheap suit.

Bye bye Euro Pacific Capital.........

Thu, 12/08/2011 - 10:22 | 1958182 Global Hunter
Global Hunter's picture

You could be correct on the other hand what will the value of gold be when the whole banking system grinds to a halt and the masses realize their state pensions no longer exist?  Schiff on one side of the ideological debate you on the other.

edit: I referred to it as an ideological debate because nobody knows what is going to happen when the ATMs stop working, my theory the first few days cash will be king but then after that all bets are off.

Thu, 12/08/2011 - 10:19 | 1958185 Fred C Dobbs
Fred C Dobbs's picture

fuck you

Thu, 12/08/2011 - 10:48 | 1958352 tmosley
tmosley's picture

Down all of 1.5%.  How's that NFLX treating your pretend portfolio?

Thu, 12/08/2011 - 12:14 | 1958773 SheepDog-One
SheepDog-One's picture

Robo gave up $900/oz on gold when he sold....seething with rage about it still today...called the top a little premature huh? 

Just get over it Robo and face suck.

Thu, 12/08/2011 - 10:13 | 1958148 PaperBear
PaperBear's picture

How do you say 'price (in)stability' ?

Thu, 12/08/2011 - 10:13 | 1958153 GMadScientist
GMadScientist's picture

Whaddaya mean, "it didn't put the lotion in the basket"?!

Thu, 12/08/2011 - 10:15 | 1958159 PaperBear
PaperBear's picture

Every fiat paper currency is being destroyed so why are tangible assets like gold/silver being sold by the paper monkeys ?

Thu, 12/08/2011 - 10:18 | 1958174 Jim in MN
Jim in MN's picture

It's just being repriced with currency fluctuations.  No biggie.

Thu, 12/08/2011 - 12:11 | 1958782 SheepDog-One
SheepDog-One's picture

They got to cover margin calls and bond losses somehow.

Thu, 12/08/2011 - 10:16 | 1958162 youngman
youngman's picture

Gold will come back....its will be here in the next three years...the Euro won´t..and possibly the US Dollar too...China and Russia are licking their lips.....Japan is committing Hari Kari...this gets interesting now.....but we got Bernanke..he will loan the IMF money....get er done...a BANKER can never lose money...that is the golden rule...

Thu, 12/08/2011 - 10:21 | 1958192 Everybodys All ...
Everybodys All American's picture

The IMF will not get money from the US without Congressional approval. That doesn't mean Bernanke won't use the back door though. He is on a slippery slope politically though and he knows it.

Thu, 12/08/2011 - 10:16 | 1958164 Jim in MN
Jim in MN's picture


Goldman's writhing, sweaty wet dream



Union of the

Continent of


United, not, gonna, happen people! 

Playing this market is like looking up the elevator shaft from the basement as the cables fray to the last strand.

Thu, 12/08/2011 - 10:16 | 1958167 Lotus
Lotus's picture

note to reporters.    Dont ask Mario two questions in a row.

Thu, 12/08/2011 - 10:17 | 1958169 Sean7k
Sean7k's picture

1% reserves and money for nothing- that's the way you do it. 

Thu, 12/08/2011 - 10:17 | 1958172 1fortheroad
1fortheroad's picture

Stick save in 3-2-1 then more rumors.

Thu, 12/08/2011 - 10:18 | 1958173 John Law Lives
John Law Lives's picture

The vacuum tubes need to tweak the settings on the fine tuning knob.  Less schizophrenia would be welcomed...

Thu, 12/08/2011 - 10:18 | 1958177 monopoly
monopoly's picture

But, Cramer said it was all better. I just do not understand.

Thu, 12/08/2011 - 10:18 | 1958179 Everybodys All ...
Everybodys All American's picture

Selling begets more selling. All very predictable.

Thu, 12/08/2011 - 10:23 | 1958203 ISEEIT
ISEEIT's picture

Burned again! I only shorted from 1.3412. 

Thu, 12/08/2011 - 10:25 | 1958215 PulauHantu29
PulauHantu29's picture

QE3 in January?


Thu, 12/08/2011 - 12:12 | 1958790 SheepDog-One
SheepDog-One's picture

Right, more insolvency will force more debt....OK and then what?

Thu, 12/08/2011 - 10:26 | 1958220 Temporalist
Temporalist's picture

I knew I'd seen Merkel before:

Stay away from the Beligian chocolates Angela!!!

Thu, 12/08/2011 - 10:27 | 1958222 homer8043
homer8043's picture

In addition to the market updates, which are very educational and I am very thankful for the majority of days they are posted, can we get a paragraph by a political scientist and a psychologist? Can the psychologist please be trained in many forms of abnormal psychology including manic/depressive disorder?

It may provide more insight into this market beyond the insight which the excellent analysis of what lies beneath ES and bond market moves these updates provide. And my request was only half in jest.

Thu, 12/08/2011 - 10:27 | 1958224 darteaus
darteaus's picture

This is just the latest round in a high stakes game of chicken.

The Euros and Tiny Timmy all know the Øbama will throw the $ and the US taxpayer under the bus to get reerected.

So, to prevent the Euro contagion from spreading to the U$ markets and ruin Øbama's reerection plans, the US (via the FED => IMF Global), will team up with the Euros to kick the can down the road past Nov/2012.

Thu, 12/08/2011 - 11:01 | 1958427 RobD
RobD's picture

"reerected" Hmm yes I think that works... we are going to reerected it Obama gets re-elected. Briliant!

Thu, 12/08/2011 - 10:28 | 1958225 Jim in MN
Jim in MN's picture

I have to say, the little red circles/ovals on the charts are kinda unnecessary today, dontcha think?

Thu, 12/08/2011 - 10:31 | 1958240 topcallingtroll
topcallingtroll's picture


I got short friday.

Bring it bitchez.

Time to collapse the fucker
( although more than likely I will just lose money again)

Thu, 12/08/2011 - 10:36 | 1958268 Dr. Gonzo
Dr. Gonzo's picture

Looks like we won't be hearing from Robot Trader today. Maybe he'll chat with us tomorrow.

Thu, 12/08/2011 - 10:38 | 1958281 Odin
Odin's picture

Major Malfunction, it was all actually hopium...does not compute. does not compute...000100111000101100000001

Thu, 12/08/2011 - 10:43 | 1958320 Dr. Gonzo
Dr. Gonzo's picture

Whoops. Never mind. He's here and he's pissed.

Thu, 12/08/2011 - 10:36 | 1958271 Odin
Odin's picture

Ready, Set, Fall Bitchez

Thu, 12/08/2011 - 10:48 | 1958350 ucsbcanuck
ucsbcanuck's picture

Market's sagging like an old woman's tits

Thu, 12/08/2011 - 10:51 | 1958362 IamMarla
IamMarla's picture

"lending money to IMF to buy Euro bonds is not compatible with the treaty" the bitch who is screaming for another fix is the IMF and she is not getting scratch because there is a Proctoscope very far up where the sun does not shine in her dealer. Sorry baby no juice this week. Sweet dreams.

a full nelson(headlock)

looks like the throw down has happened.

Thu, 12/08/2011 - 11:12 | 1958484 ucsbcanuck
ucsbcanuck's picture

Oh yeah... watch 0:14 - 0:17

Thu, 12/08/2011 - 11:13 | 1958495 ucsbcanuck
ucsbcanuck's picture

BAC down 2.38% ...

Thu, 12/08/2011 - 13:01 | 1959051 Bananamerican
Bananamerican's picture

what's that, like, 2¢?

Thu, 12/08/2011 - 14:20 | 1959650 ucsbcanuck
ucsbcanuck's picture

LOL! So that would mean my opinions are now worth more than BAC?

Right now it's down nearly 4% at 5.66.

Thu, 12/08/2011 - 13:05 | 1959073 Snakeeyes
Snakeeyes's picture

Depression sets in in the Eurozone as the Magic Bullet fantasy begins to explode.

ECB Does Quantitative Easing, Eurozone Bonds Drop, Franco/German Proposal In Jeopardy

Thu, 12/08/2011 - 14:32 | 1959386 Hard1
Hard1's picture

Never mind

Thu, 12/08/2011 - 14:18 | 1959636 ucsbcanuck
ucsbcanuck's picture

BAC down nearly 4% today

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