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(Non) News Of Dexia "Bad Bank" Sends Market Soaring
If anyone had any doubt this market is broken beyond compare and controlled by complete idiots, this should put all doubts to rest. Anyone wondering why stocks are soaring, the reason is that according to non-news, because this was first reported yesterday by the FT, Dexia will park €180 billion in worthless assets in a bad bank. This is beyond ridiculous as Belgium, even in JV with France, will be unable to ringfence and hence fund this amount of capital for the now nationalized bank. It also means that Belgium is about to be downgraded following a long-overdue warning by S&P and Moodys to cut the country. It also means that Belgian CDS will soon trade points up front. It also means that Belgian funding costs will soar. It also means that French CDS will explode tomorrow and that interbank markets in Europe will collapse (even more) once the market realizes that France has just diluted its "bailout dry capital" by rescuing a Belgian bank. And so on. And so on. But for now the ripfest is here. Fade every uptick as this is sheer desperation out of Belgium which pretends it is Switzerland and can do with Dexia what the Swiss did with UBS. Hint: it is not and no, it can't.
From the WSJ Market Beat blog:
- Franco-Belgian lender Dexia is set to park assets worth in excess of EUR180 billion into a so-called bad bank, a vehicle backed by guarantees from the French and Belgian governments, in an effort to disentangle itself from gripping liquidity strains, people familiar with the matter said Tuesday.
- The bad-bank plan is part of a deeper makeover under which Dexia is considering selling all its core units and which may effectively lead to a dismantling of the lender.
- Under a plan submitted to Dexia’s board on Monday, the bank would ring fence into a special vehicle all the assets it inherited from an aggressive expansion push early in the past decade as well as units that can’t be sold under current market conditions, the people familiar with the matter said.
- These assets would include a portfolio of bonds worth EUR95 billion and about EUR30 billion in loans deemed non-strategic, they said. Dexia Crediop and Dexia Sabadell, the bank’s municipal lending units in Italy and Spain, respectively, would also be folded into the bad bank, the people familiar with the matter said. The European sovereign debt crisis has cast a cloud on most financial assets in Southern European countries, making it virtually impossible for Dexia to find buyers for the two units.
- Over the past year, Dexia had succeeded in reducing short-term financing needs stemming from its large portfolio of long-term bonds. Yet, in recent weeks, the bank was increasingly struggling to raise funding at affordable costs. With little hope that liquidity strains would ease in the short term, management came to conclusion that Dexia could no longer carry the oversized bond portfolio alone, one person familiar with the matter said.
- In a first step, Dexia may continue to carry the bad-bank vehicle on its books, but France and Belgium will give its guarantee to securities the bank must issue to meet refinancing needs, the people familiar with the matter said. Longer term, Dexia may transfer bad bank ownership to France and Belgium, these people said
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Yeah... cause you know... that will solve everything... it's all sunshine and unicorns from now on.
Wow. Absolutely frigging nuts.
Some relevant music:
Drexciya, bitchez
Digital Tsunami
(Chosen in honour of all the algos, and in honour of the massive tsunami of defaults we'll see when Greece goes under)
http://www.youtube.com/watch?v=jvHDucE6vhM
pulling from the archive
http://www.zerohedge.com/article/presenting-total-bank-assets-percentage...
Compare that to the top 5 banks in the US (a list which excludes hedge funds such as Goldman Sachs).
Unfortunately for Europe, there is a dramatic concentration of bank assets precisely in some of the most precarious regions. Which is why Germany may have kicked the can down the road for at least a month, but the issue will come back with a vengeance for the simple reason we have noted from the start of this crisis: only Bernanke has a money printer. Everyone else actually has to produce "stuff", sell it and collect taxes if they want to fill catastrophic budget deficits. And the latter, as we have seen, is something the developed world has been horrible at doing over the past decade, courtesy of the Goldman-facilitated innovation explosion.
Asia-> America "capitalism"
America-> Europe "socialism"
Europe->Asia "communism"
Africa...fucked as usual..."colonialism"
The ALGO must bid it up before it can sell it off. Must hit targets, must fill gaps, must retrace, must must must.
The Bank of America in St. Louis is surrounded by cops and barricades refusing to allow customers in to withdraw money. They're telling them that they have to use ATM's or do their banking on-line. Wait for it, it's coming to a neighborhood near you.
Riots, it's what's for dinner.
Is this a joke or for real? Can you cite a source?
I wish I'd had my camera yesterday, the parking lot at a local BAC was absolutely packed. I thought business was booming.
Or maybe acct closings.
The website being down for several days looks like an on-line bank run. Something smells rotten. Maybe I'm just paranoid.
well its not raining in STL today, and that video has people carrying umbrellas.... something is off.
It's not rain, it's tears
http://www.shtfplan.com/headline-news/swat-teams-in-st-louis-protecting-bank-of-america-refusing-customer-withdrawals-directing-customers-to-broken-bofa-web-site_10042011
here is the story
Shenanigans. That video is from Aug 12 2011 during a rally in which people were protesting.
You can't protest at a bank, duh. <snarf>
Putting your deposit into Banksters of America is entrusting your grandfather's trust fund into Goldman Sach's hands.
Shenanigans. That video is from Aug 12 2011 during a rally in which people were protesting.
You can't protest at a bank, duh. <snarf>
http://www.youtube.com/watch?v=Db_P0wHsSz0&feature=player_embedded#!
They seem to do this often:http://dangerousintersection.org/2011/08/13/bank-of-america-forbids-withdrawal-of-money-protest/
source, link, proof?
Is it 3:30 yet? Yep, right on Q!
Welcome to the Truman Show.
Loving every minute of this--watching these desperate fucks try sooooo hard to stop the bleeding, only to have the credit markets come along and chop off the other arm. "It's a bloody flesh wound! I'll gnash you with my teeth!" Hahahaha.
Wait for it because the arms are now gone, next will be the legs so that it can't run while it gets put down.
Btw where did you get that coconut shell?
Run Away!!!!!!!!!
And the unicorns shit "Skittles" too...
Yea, no kidding. Sunshine and Unicorns here we come. This is what you call EPIC FAIL!!!!!!!!!! Now what about the servicing of the debt (180 billion euro's) that must be sent out to all the bond holders including Belgium, who's going to pay that? If Belgium (I don't know why they are calling this debt backed also by the Belgium govt., because didn't they dissolve their govt. over a year ago?) can't service this debt, then essentially what they did was say we are defaulting.
Bear Stearns.
Tyler is getting picky, picky, picky...
You can't expect markets to look forward 24 hours, er, 8 hours, uh, oh whatever.
Dexia stock going to zero. France going to be put on ratings watch. Short this rally
BAC is black.
The stock market is not rallying because of that supid bank news, it is going up because Kim Kardashian has bought a Ferrari, we should all buy one now we know what to drive.
MS ramp to the moon! Short the EOD BS.
Epic rally is epic
Epic dollar fall is epic.
I assumed it was because investors were optimistic that the Japanese might learn a thing or two about entombing toxic shit from this exercise.
Fade this BS
Whew! I was getting worried there for a bit.
A bear rally that lasts 2 or 3 days can kill you though...
I'm so glad I covered my shorts this morning. I'll keep an eye on my candidates and put it back on once they show weakness again
These vacuum tubes are as clever as the chairSATAN
they have to keep squeezing shorts to keep the 'markets' from collapsing.. yeah, healthy that is
Another press release to the rescue.
Big dollar dump there in the last 40 minutes.
yep...and the front of Bob Pisani's pants just exploded.
What the hell ???? Ha ha just noticed S&P and Dow charts looks like this W
Edit: That lasted for about a minute - can't believe this crap!
must.... close.... green....
Nah it is the weak story by the FT about some coordinated EU plan to recap the banks.
Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan.
There is an increasingly shared view that we need a concerted, co-ordinated approach in Europe while many of the elements are done in the member states,” Olli Rehn, European commissioner for economic affairs, told the Financial Times. “
So there you have it the mouth piece of the EU versus an actual Finance Minster.
Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan
I guess they discussed it in the afternoon session...
"Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan"
I guess they discussed it in the afternoon session...
Well Tyler, you've sum it up as it is! And the thing is the markets will hopefully realize tomorrow that things are indeed as you wrote and then turn south.
And the DOW moves to positive territory.
Manic-depressive psycho clownfest.
All day trading profits erased in 30 minutes on this idiocy... gotta love this market.
You day-trade in this?
ADP leaked rally
Exactly. +300 up tomorrow on fabricated stats.
Banksters breathe a sigh of relief as more junk offloaded to the poor and sick
I thought BB farted.
Once these back office monkey wanna-be fake ass Timmy Sikes day trading douchtards cover their shorts and go crying home to mommy, the market will snap back to reality and realize it is game-fucking-over-bitches.
yippee ky yeah
The bottom is in!!!!!!
The bottom is in!!!!!
Oh wait there's tomorrow yet. OK after that I"m sure the bottom is in.
Oh wait there's the day after....................................
In machine world - everythang is possible.
Thde Belgians are suffering from acute dis-Drexciya...
Jetison the trash. Sure.
So ... there shan't be any bonus? Right?
lol.. the markets are so fucking broken.. Daytraders must being having nervous breakdowns with all the volatility. trading algos never sleep.
short 20 more /es from 1104.50
bring it
Ouch that was painful to watch. Next time consider checking your shields before asking for the most sinister and powerful force in the universe to open a can of whoop-ass.
still 10mins left, triple digit gain anyone?
We just might....
but actually, this is a rally to get as much shorts out as possible, the news is just an excuse.
The key is the bonds... IS THE TOP IN ?
That was one hellofa market ramp up +300 points in 40 minutes. That may be one of the top ten market ramps in history !
Was that a POMO injection or what ? WOW !
This market is so fucked up ! How anyone has the balls to joust against these HTF computers is amazing to me. I have a question: Who are the ones losing all the money ? It's coming (being extracted) from somewhere ?
anybody know ?
QE3 after close?
I remember the bad bank piece from Monday. This is pure HFT action. On the other hand, not only do you have hundreds of billions of Greek toxic bonds, you now have toxic French paper lifting its vapours through the boulevards.
Royal Flush Crush
This is insane
Fast Dash
Fat Trigger Finger Blast
yeah, that fixes JACK SHIT.
fucking cocksukers.
Wow... just fucking wow.
Talk about some shock and awe.
Must be near to Wall Street bonus time. The bounce most pronounced in crappy bank shares.
I have benn trading since 1983 but what I saw fro 3 years in a row now is utterly sick and for sure won't end well, no matter how long it might still take but thelonger it goes this way the more catastrophic the outcome!
I closed shorts this morning but put on new ones just a little while ago! I won't miss this opportunity to be IN when this shit goes to 1000SP points in short order!
I love this place. Thanks Tyler, was watching the tape and thought WTF. Hold those shorts kids. My plan is to dump them later in the week, then wait out the fake rally, and then enter again. Evidently the hedge funds need some cover to dump. Shocktober, here we come....
Why don't they just announce what the DOW is?
A 250 point vertical climb in about 20 minutes sounds plausible to me.
pods
Stay vigilant my fellow shorts
Making a complete mockery of the entire system....classic
It's ok to close up one some rumors, I am selling this top.
Who will finally eat this turd when the day of reckoning arrives? WTF is going on? This is like a 27 inning baseball game and when it is over someone has to lose.
This is only the 3rd inning too, get some peanuts.
Aah, You can see the green shoots rising all over! Only in this case you have a bank in the country that shall not be named, so Green Sprouts. Inedible cabbage foisted off as food for centuries. On this and gunmaking they base an economy?
Wow. I'm calling this the Agita Market. I don't think the bots heard the occupy protests.
Twilight zone
/ES up 45 points in 45 minutes. What can possibly go wrong?
Twilight zone
Rip meet face
Up +170 points now ??????????????????????????????????????//
400 point swing in 50 minutes ??????????????????????????
WTF !
desperation... anything to peek it alive. Turds fall from the sky + 500
As Joe Rogan would say, "God damn son"
What a joke.....the people familiar with the matter said
Ah-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha
http://www.bloomberg.com/apps/quote?ticker=TNA:US
WTF?
My thoughts too. What just happened?
As Peter said, traders are now saying 1120 was resistence. Well, it blew past that. Expect to see 1200 by month end. Sigh. Next time I know the world is going to end any second, I'm gonna go long for a spell. You know the algo's will just pick up some bullshit news, any fucking news and spin this thing far higher and fry all the shorts who keep feeding the wall stree machine.
No need to junk me, I was being sarcastic. I won't play this market. Period. It's a stupid fucking game from any angle at all....
I TOLD YOU IT WAS BONUS TIME AT DEXIA!!!
That was incredible. Hahaha. That was just another opportunity to short.
mentioned earlier about ricochet off 200 month MA
I'm not fazed. Will just average down from here. I REFUSE TO GIVE IN
Wow that lit a fire under Silver.
Bonkers.
I've seen melt-ups before but the last hour was truly bizarre...I think we can 100% say that QE III is the Fed purchasing equities and slamming the metals every chance they get... This may be a daily action going forward...PM's will diverge from the paper price now I believe
so roughly a 400 pt dow move in 30 minutes, sounds about right, i'm surprised rule 48 wasn't invoked
Any excuse to kill the shorts ...
oh my poor sore shorthole. or, how to lose 45k in 10 minutes.
That's 28 ounces of gold and a ticket to Mexico right there.
http://www.singledudetravel.com/2011/01/te-amo-mexico/
Tyler's... Waiting again for the ES to context ramp chart...
and the Vixx was way down ? "Volatility Index" LOL
Good old CME doing 'some of" God's work !
DJ 30 up just shy of 400 points in 45 min, well strip me naked and call me susan.
That was insane. Lost all gains from this morning in a quick turn around and now jumped to the other side and going long gold miners.
Did BB say he was going to avoid recession? That means he's going to print. Fighting that is deadly.
Dude, going long is what the Bots want you to do. You are going to get screwed again.
I got screwed for weeks in 2009 trying to average down and shorting against the Fed.
Tomorrow is another day. POMO is on deck.
Today was the fiercest and quickest turn on the dime yet. VXX dropped hard. Top in bonds? Maybe.
This wasn't bots buying. There was heavy selling pressure across the board. Some big inflows of cash into equities happened today.
Unbelievable. RUT up, what, 8% from the lows today. On this news. In about 30 minutes. I guess we were just oversold, everywhere, in all markets, across all sectors. Well except for gold/silver and the miners, blood red all around there.
Edit...BTW, gonna fade this just out of spite! Now there's some investing rationale!
How very convenient, market threatening to collapse and oh whisper whisper idiotic rumour not long before close... HFT gun shorts
Man, just imagine how smooth this would all go down if Belgium had a government.
Perhaps Monty Python can now add another "derogatory term for the Belgians".
"Do I still get my Bonus?" is all bankers want to know.
if you think this price action is based on a rumour about dexia doing ANYTHING, you are a clown.
Buy on the close. With that out of the way, we can begin moving back down again.
375 points on the Dow in 45 minutes. WTF infinity. 45 S&P and 104 points on the Nasdaq??????
There is no way in hell that was humans buying. PPT Fed all the way. Oil jumped $1.50 at the same time as well.
Shut this fucking market down. I don't care if it goes up 1000 points or down 1000 points, it has become completely irrelevant. What the hell is cramer going to say today.
Apple, Green Mountain, Netflix, and Priceline all had major swings up at the end of the day. Momo stock Fed bought bullshit
parabolic rise to be followed with selloff tomorrow morning
Under a plan submitted to Dexia’s board on Monday, the bank would ring fence into a special vehicle all the assets it inherited from an aggressive expansion push early in the past decade
Can you innocently "inherit" something from your earlier bad self?
How many women out there are buying that line of reasoning...and what are your phone numbers?
i plan on ringfencing all my mortgages, credit cards, home equity and car loans that i inherited from my younger stupider self in the past decade
i only wish i was MORE aggresive in the past, before i "bequeathed" these bad loans to myself
There is no such thing as a Belgian government. How can a bank be seized by a government that doesn't exist and saved with money that doesn't exist? The Matrix was a documentary and deserved an Oscar.
I'm sure Poirot would disagree Mon Ami.
Fuck you Robots! Fuck you! I'm gonna dance on your fuckling grave you crooked motherfuckers. Tick-tock motherfucker. Tick tock. Time is on my side.
Other reasons market soared...Squak reported EU finance ministers want to expand EFSP, ECB reduced rates on Thurs, Uncle Ben was semi positive (rumor is QE3 in Nov), NFP will be slightly positive (70k), mkt oversold. Back to 1120 resistence in a flash. Could go back to 50 day ma imho about 1180.
Robots Hal 9000, Terminator, and Watson to pension funds and day traders:
Hal 9000: "Excuse me, but my calculations tell me this is an ideal moment to deploy capital into equities."
Terminator: "Asta la vista bhear mahket, tihme to buy ze equities like Craahmah tells you."
Watson: "Alex, what is 'BTFD'?"
The Bernank and Merkel concur.
Any chance of a thread on Trichet's statement that Europe is dealing with the greatest crisis since WWII?
I hate to say it.
But even Yahoo have a headline.
What has happened to ZH?
Trichet raises the worst of all prospects and ZH has not one headline?
http://news.yahoo.com/trichet-sees-markets-worst-crisis-since-wwii-08412...
AP – Tue, Aug 9, 2011
Even the comments are old.
i feel bad for pete
Kweku Adoboli: "did you say sell? i heard buy."
Sergio Ermotti: "faccia, this will be a tough one to explain when the market drops 800 tomorrow"
Grade "A" Bullshit. Above 1120, really? I mean really? It's fine. I can and will wait...
Gold movements were a little unexpected ( but on other hand, when Bernanke talk about deflation, and stocks tank at the same time, and USD index stays high) perhaps not so unexpected for one day oscillation- still within the range of my already "old" graphs. On other hand, inflation fear will return as soon as Ben shuts up, as inflation is the natural expectation from easing policies - even if its wrong, it will continue to impact markets. And long term, its also true expectation ( for EUR- short term-perhaps buyin silver/gold in EUR is faster way to paper profit ( in EUR, of course).
I looked at the patterns behind the gold graph- After coming up from 1550, Gold can oscillate in 1600-1650 region for about 20 days, so till October 13th-15th before moving further up to 1800+-50 in November. Now this is extremely short term for me, the upside can be also delayed by another 2 weeks as I tend to predict things to early, and I may be very wrong with timing.
On silver, nothing new, so last weeks prediction hold in general for both metals:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=560#p34264
1) Silver may fluctuate around 30 USD (+- 3?) for 1 month or so (except very short sharp peaks, perhaps) , then move up sharply about 5 USD to 35-40 and drop again, now to little higher level of 33-35 +-5, and not change much anymore this year. So the bottom will be kind of close from time to time during October.
2) Gold, on the contrary, seems to be posed for relatively steady growth till 1800 in November, around which level it should fluctuate for few months (+- 50 ?) .
Kind of suggests may be more commodities will have relatively flat period from Oct-Nov till the end of the Year.
What do you think about the recent dizzying fall of the CDN? I just don't see the rise in the USD as accounting for its rapid decline. Of course oil prices play a role as well but the decline has been fast and steady and I'm not sure why.
What's this shit called again? mark-to-myth accounting? market-to-myth accounting? (sp?)
I find it funny that they're wrapping up Italy and Spain into a "bad bank" and bonds worth 95 billion? Keyword "worth" should probably be defined a little bit if they're spinning it off into a "bad" bank. 30 billion in loans that are "non-strategic"? Really? Is that kind of like bungee jumping without a bungee cord... "strategically" speaking as in, stupid ass decision?
At first glance I read "Dexia Creditflop" and laughed my ass off. THought they actually named the bank the unavoidable outcome of the Eurozone. Weird too how the 3 letters missing could be an acronym for "Too Fucking Late"
Poor can...
Don't Just Stare At Intraday Volatility........ Eat it !
Some mugs buying the 20% ' bear ' market fulcrum , I imagine the big boys will be selling into these rallies soon enough.
...close reminds me of this. http://www.youtube.com/watch?v=luaRtGn2tsI&NR=1
No Tyler not complete idiots but MASSIVE INSIDE JOB profit-taking $kaM!
Question is will it fully correct it's self tomorrow or will it end day tomorrow up because of the rumor??
Ben day'd ?
For Halloween this year, I'm dressing as "the death of the Euro". I've got more ideas than I know what to do with.
Belgium leading economic newspaper De Standaard mentions Zerohedge.com role in Dexia debacle
In their analysis of theunfolding Dexia catastrophy, which is a perfect remake of "Fortis, the rise and downfall of a greedy bank", De Standaard mentions Zerohedge.com
Translation of the last paragraph in their article:
Already now jokes are being made on Twitter about the saving of Dexia by a non existing government. The Biased, but nevertheless influential financials blogs such as Zerohedge wil try to put the nail on the coffin in the coming days again, stating that Belgium is a high risk country, is huge indebted and also lacks a government who should have started the necesssary savings programs. Interesting to see what answer De Wedstraat (government) can put up against this
[Nu al worden op Twitter grapjes gemaakt over het feit dat Dexia gered moest worden door een Belgische regering die niet eens bestaat. Bevooroordeelde maar desalniettemin invloedrijke financiële blogs zoals Zerohedge gaan de komende dagen nog maar eens op dezelfde nagel kloppen, dat België een risicovol land is dat diep in de schulden zit en nog niet eens een regering heeft die een begin heeft gemaakt van de nodige besparingen. Benieuwd welk antwoord men daar in de Wetstraat nog tegenover kan zetten.]
http://www.standaard.be/artikel/detail.aspx?artikelid=DMF20111004_222
The walking dead Natixis (which owns most of Dexia) is up 6,6% this morning... Disgusting!
And 90 Bil of OUR money ***taken from us*** to create a bad bank to save Dexia's ass!
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