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(Non) News Of Dexia "Bad Bank" Sends Market Soaring

Tyler Durden's picture




 

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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Tue, 10/04/2011 - 15:46 | 1738427 dwdollar
dwdollar's picture

Yeah... cause you know... that will solve everything... it's all sunshine and unicorns from now on.

Tue, 10/04/2011 - 15:47 | 1738444 buck4free
buck4free's picture

Wow. Absolutely frigging nuts.

Tue, 10/04/2011 - 15:50 | 1738456 spiral_eyes
spiral_eyes's picture

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 

Tue, 10/04/2011 - 18:30 | 1739315 AldousHuxley
AldousHuxley's picture

pulling from the archive

http://www.zerohedge.com/article/presenting-total-bank-assets-percentage...

  • Belgium - Dexia: 180%of GDP
  • France - BNP Paribas, Credit Agricole, SocGen: 237% of GDP
  • Germany - Deutsche Bank: 84%
  • Italy - Unicredit, Intesa Sanpaolo: 101%
  • Netherlands - Fortis: 155%
  • Spain - Banco Santander: 92%
  • UK - RBS, Barclays, HSBC: 337%
  • Switzerland- UBS and Credit Suisse: 600%

Compare that to the top 5 banks in the US (a list which excludes hedge funds such as Goldman Sachs).

  • US - JP Morgan, Citigroup, Bank of America, Wells Fargo and Fannie: just 56% of GDP.

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"

Tue, 10/04/2011 - 15:50 | 1738472 GenX Investor
GenX Investor's picture

The ALGO must bid it up before it can sell it off.  Must hit targets, must fill gaps, must retrace, must must must.

Tue, 10/04/2011 - 15:53 | 1738494 Ancona
Ancona's picture

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.

Tue, 10/04/2011 - 16:01 | 1738558 Missiondweller
Missiondweller's picture

Is this a joke or for real? Can you cite a source?

Tue, 10/04/2011 - 16:05 | 1738583 Miss Expectations
Miss Expectations's picture

I wish I'd had my camera yesterday, the parking lot at a local BAC was absolutely packed.  I thought business was booming.

Tue, 10/04/2011 - 16:09 | 1738611 Missiondweller
Missiondweller's picture

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.

Tue, 10/04/2011 - 16:08 | 1738602 john39
john39's picture

well its not raining in STL today, and that video has people carrying umbrellas.... something is off.

Tue, 10/04/2011 - 16:54 | 1738940 Smiddywesson
Smiddywesson's picture

It's not rain, it's tears

Tue, 10/04/2011 - 16:17 | 1738695 catacl1sm
catacl1sm's picture

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>

Tue, 10/04/2011 - 18:14 | 1739278 AldousHuxley
AldousHuxley's picture

Putting your deposit into Banksters of America is entrusting your grandfather's trust fund into Goldman Sach's hands.

 

Tue, 10/04/2011 - 16:17 | 1738697 catacl1sm
catacl1sm's picture

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>

Tue, 10/04/2011 - 16:10 | 1738625 CvlDobd
CvlDobd's picture

source, link, proof?

Tue, 10/04/2011 - 15:52 | 1738485 crazyjsmith
crazyjsmith's picture

Is it 3:30 yet? Yep, right on Q!

Welcome to the Truman Show.

Tue, 10/04/2011 - 15:57 | 1738523 jdelano
jdelano's picture

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.  

Tue, 10/04/2011 - 16:12 | 1738628 SpaDe
SpaDe's picture

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?

Tue, 10/04/2011 - 16:56 | 1738948 Smiddywesson
Smiddywesson's picture

Run Away!!!!!!!!!

Tue, 10/04/2011 - 15:58 | 1738534 Jonas Parker
Jonas Parker's picture

And the unicorns shit "Skittles" too...

Tue, 10/04/2011 - 20:30 | 1739661 Buck Johnson
Buck Johnson's picture

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.

Tue, 10/04/2011 - 15:45 | 1738432 qussl3
qussl3's picture

Bear Stearns.

Tue, 10/04/2011 - 16:59 | 1738961 kaiserhoff
kaiserhoff's picture

Tyler is getting picky, picky, picky...

You can't expect markets to look forward 24 hours, er, 8 hours, uh, oh whatever.

Tue, 10/04/2011 - 15:45 | 1738433 oogs66
oogs66's picture

Dexia stock going to zero. France going to be put on ratings watch. Short this rally

Tue, 10/04/2011 - 15:49 | 1738436 fuu
fuu's picture

BAC is black.

Tue, 10/04/2011 - 15:52 | 1738490 Abitdodgie
Abitdodgie's picture

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.

Tue, 10/04/2011 - 15:58 | 1738530 Quadlet
Quadlet's picture

MS ramp to the moon!  Short the EOD BS.

Tue, 10/04/2011 - 16:07 | 1738593 junkyardjack
junkyardjack's picture

Epic rally is epic

Tue, 10/04/2011 - 16:11 | 1738630 fuu
fuu's picture

Epic dollar fall is epic.

Tue, 10/04/2011 - 15:59 | 1738538 Gene Parmesan
Gene Parmesan's picture

I assumed it was because investors were optimistic that the Japanese might learn a thing or two about entombing toxic shit from this exercise.

Tue, 10/04/2011 - 15:46 | 1738437 Christoph830
Christoph830's picture

Fade this BS

Tue, 10/04/2011 - 15:46 | 1738438 Spastica Rex
Spastica Rex's picture

Whew! I was getting worried there for a bit.

Tue, 10/04/2011 - 15:47 | 1738441 Zeilschip
Zeilschip's picture

A bear rally that lasts 2 or 3 days can kill you though...

Tue, 10/04/2011 - 16:08 | 1738603 junkyardjack
junkyardjack's picture

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

Tue, 10/04/2011 - 15:48 | 1738443 Racer
Racer's picture

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

Tue, 10/04/2011 - 15:47 | 1738448 EscapeKey
EscapeKey's picture

Another press release to the rescue.

Tue, 10/04/2011 - 16:10 | 1738622 fuu
fuu's picture

Big dollar dump there in the last 40 minutes.

Tue, 10/04/2011 - 16:13 | 1738658 LongSoupLine
LongSoupLine's picture

yep...and the front of Bob Pisani's pants just exploded.

Tue, 10/04/2011 - 16:03 | 1738449 Arkadaba
Arkadaba's picture

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!

Tue, 10/04/2011 - 15:48 | 1738452 spartan117
spartan117's picture

must.... close.... green....

Tue, 10/04/2011 - 15:48 | 1738454 lizzy36
lizzy36's picture

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.

Tue, 10/04/2011 - 15:54 | 1738508 socratesplus
socratesplus's picture

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...

Tue, 10/04/2011 - 15:55 | 1738517 socratesplus
socratesplus's picture

"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...

Tue, 10/04/2011 - 15:49 | 1738455 hungarianboy
hungarianboy's picture

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.

Tue, 10/04/2011 - 15:49 | 1738458 RSloane
RSloane's picture

And the DOW moves to positive territory.

Tue, 10/04/2011 - 15:49 | 1738461 Bastiat
Bastiat's picture

Manic-depressive psycho clownfest.

Tue, 10/04/2011 - 15:49 | 1738464 Thought criminal
Thought criminal's picture

All day trading profits erased in 30 minutes on this idiocy... gotta love this market.

Tue, 10/04/2011 - 16:06 | 1738585 Variance Doc
Variance Doc's picture

You day-trade in this?

 

Tue, 10/04/2011 - 15:50 | 1738466 Cult_of_Reason
Cult_of_Reason's picture

ADP leaked rally

Tue, 10/04/2011 - 15:52 | 1738488 Iriestx
Iriestx's picture

Exactly.  +300 up tomorrow on fabricated stats.

Tue, 10/04/2011 - 15:50 | 1738469 Racer
Racer's picture

Banksters breathe a sigh of relief as more junk offloaded to the poor and sick

Tue, 10/04/2011 - 15:50 | 1738474 Kristian
Kristian's picture

I thought BB farted.

Tue, 10/04/2011 - 15:50 | 1738475 Cone of Uncertainty
Cone of Uncertainty's picture

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.

 

 

Tue, 10/04/2011 - 15:53 | 1738476 mogul rider
mogul rider's picture

 

 

 

 

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.

Tue, 10/04/2011 - 15:51 | 1738477 Jonas Parker
Jonas Parker's picture

Thde Belgians are suffering from acute dis-Drexciya...

Tue, 10/04/2011 - 15:51 | 1738478 ArkansasAngie
ArkansasAngie's picture

Jetison the trash.  Sure. 

So ... there shan't be any bonus?  Right?

Tue, 10/04/2011 - 15:56 | 1738479 DormRoom
DormRoom's picture

lol.. the markets are so fucking broken..  Daytraders must being having nervous breakdowns with all the volatility.  trading algos never sleep. 

Tue, 10/04/2011 - 15:51 | 1738480 stormsailor
stormsailor's picture

short 20 more /es from 1104.50

 

bring it

Tue, 10/04/2011 - 16:18 | 1738705 prophet
prophet's picture

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.  

Tue, 10/04/2011 - 15:51 | 1738482 Jayda1850
Jayda1850's picture

still 10mins left, triple digit gain anyone?

Tue, 10/04/2011 - 15:53 | 1738499 RSloane
RSloane's picture

We just might....

Tue, 10/04/2011 - 15:52 | 1738483 Kristian
Kristian's picture

but actually, this is a rally to get as much shorts out as possible, the news is just an excuse.

Tue, 10/04/2011 - 15:52 | 1738486 Zola
Zola's picture

The key is the bonds... IS THE TOP IN ?

Tue, 10/04/2011 - 15:56 | 1738489 Threeggg
Threeggg's picture

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 ?

Tue, 10/04/2011 - 16:00 | 1738547 Quadlet
Quadlet's picture

QE3 after close?

Tue, 10/04/2011 - 15:52 | 1738491 Edward Fiatski
Edward Fiatski's picture

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.

Tue, 10/04/2011 - 15:52 | 1738492 fastishplastic
fastishplastic's picture

Royal Flush Crush

This is insane

Fast Dash

Fat Trigger Finger Blast

Tue, 10/04/2011 - 15:53 | 1738498 orangedrinkandchips
orangedrinkandchips's picture

yeah, that fixes JACK SHIT.

 

fucking cocksukers.

Tue, 10/04/2011 - 15:53 | 1738500 Gubbmint Cheese
Gubbmint Cheese's picture

Wow... just fucking wow.

 

 

Tue, 10/04/2011 - 16:03 | 1738571 fuu
fuu's picture

Talk about some shock and awe.

Tue, 10/04/2011 - 15:54 | 1738501 Cdad
Cdad's picture

Must be near to Wall Street bonus time.  The bounce most pronounced in crappy bank shares.

Tue, 10/04/2011 - 15:54 | 1738502 TradingJoe
TradingJoe's picture

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!

Tue, 10/04/2011 - 15:54 | 1738504 ReallySparky
ReallySparky's picture

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....

Tue, 10/04/2011 - 15:54 | 1738506 pods
pods's picture

Why don't they just announce what the DOW is?  

A 250 point vertical climb in about 20 minutes sounds plausible to me.

pods

Tue, 10/04/2011 - 15:54 | 1738509 Christoph830
Christoph830's picture

Stay vigilant my fellow shorts

Tue, 10/04/2011 - 15:54 | 1738512 orangedrinkandchips
orangedrinkandchips's picture

Making a complete mockery of the entire system....classic

Tue, 10/04/2011 - 15:55 | 1738514 lapedochild
lapedochild's picture

It's ok to close up one some rumors, I am selling this top.

Tue, 10/04/2011 - 15:55 | 1738516 BandGap
BandGap's picture

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.

Tue, 10/04/2011 - 16:18 | 1738708 CharlieSDT
CharlieSDT's picture

This is only the 3rd inning too, get some peanuts.

Tue, 10/04/2011 - 15:56 | 1738519 Piranhanoia
Piranhanoia's picture

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?

Tue, 10/04/2011 - 15:57 | 1738529 Spaceman Spiff
Spaceman Spiff's picture

Wow.   I'm calling this the Agita Market.  I don't think the bots heard the occupy protests.

Tue, 10/04/2011 - 15:59 | 1738535 GovernmentMule
GovernmentMule's picture

Twilight zone

Tue, 10/04/2011 - 15:59 | 1738536 alien-IQ
alien-IQ's picture

/ES up 45 points in 45 minutes. What can possibly go wrong?

Tue, 10/04/2011 - 15:59 | 1738537 GovernmentMule
GovernmentMule's picture

Twilight zone

Tue, 10/04/2011 - 15:59 | 1738539 prophet
prophet's picture

Rip meet face

Tue, 10/04/2011 - 15:59 | 1738540 Threeggg
Threeggg's picture

Up +170 points now ??????????????????????????????????????//

400 point swing in 50 minutes ??????????????????????????

WTF !

Tue, 10/04/2011 - 16:02 | 1738566 surf0766
surf0766's picture

desperation...  anything to peek it alive. Turds fall from the sky + 500

Tue, 10/04/2011 - 16:09 | 1738615 junkyardjack
junkyardjack's picture

As Joe Rogan would say, "God damn son"

Tue, 10/04/2011 - 16:00 | 1738543 1835jackson
1835jackson's picture

What a joke.....the people familiar with the matter said

Tue, 10/04/2011 - 16:00 | 1738544 firstdivision
firstdivision's picture

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

Tue, 10/04/2011 - 16:00 | 1738545 Jayda1850
Jayda1850's picture

WTF?

Tue, 10/04/2011 - 16:05 | 1738581 Missiondweller
Missiondweller's picture

My thoughts too. What just happened?

Tue, 10/04/2011 - 16:00 | 1738550 Belarus
Belarus's picture

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.

Tue, 10/04/2011 - 16:04 | 1738578 Belarus
Belarus's picture

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....

Tue, 10/04/2011 - 16:01 | 1738553 buzzsaw99
buzzsaw99's picture

I TOLD YOU IT WAS BONUS TIME AT DEXIA!!!

Tue, 10/04/2011 - 16:01 | 1738556 Catullus
Catullus's picture

That was incredible. Hahaha. That was just another opportunity to short.

Tue, 10/04/2011 - 16:02 | 1738557 prophet
prophet's picture

mentioned earlier about ricochet off 200 month MA

Tue, 10/04/2011 - 16:01 | 1738560 Christoph830
Christoph830's picture

I'm not fazed.  Will just average down from here.  I REFUSE TO GIVE IN

Tue, 10/04/2011 - 16:02 | 1738562 qussl3
qussl3's picture

Wow that lit a fire under Silver.

Bonkers.

Tue, 10/04/2011 - 16:02 | 1738564 The Deleuzian
The Deleuzian's picture

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

Tue, 10/04/2011 - 16:03 | 1738568 fastishplastic
fastishplastic's picture

so roughly a 400 pt dow move in 30 minutes, sounds about right, i'm surprised rule 48 wasn't invoked

Tue, 10/04/2011 - 16:03 | 1738572 Hman
Hman's picture

Any excuse to kill the shorts ...

Tue, 10/04/2011 - 16:04 | 1738575 stormsailor
stormsailor's picture

oh my poor sore shorthole.  or, how to lose 45k in 10 minutes.

Tue, 10/04/2011 - 16:27 | 1738769 CharlieSDT
CharlieSDT's picture

That's 28 ounces of gold and a ticket to Mexico right there.

 

http://www.singledudetravel.com/2011/01/te-amo-mexico/

Tue, 10/04/2011 - 16:04 | 1738577 Quadlet
Quadlet's picture

Tyler's...  Waiting again for the ES to context ramp chart...

Tue, 10/04/2011 - 16:06 | 1738579 Threeggg
Threeggg's picture

and the Vixx was way down ? "Volatility Index" LOL

Good old CME doing 'some of" God's work !

Tue, 10/04/2011 - 16:05 | 1738582 Abitdodgie
Abitdodgie's picture

DJ 30 up just shy of 400 points in 45 min, well strip me naked and call me susan.

Tue, 10/04/2011 - 16:05 | 1738584 walküre
walküre's picture

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.

Tue, 10/04/2011 - 16:06 | 1738589 Christoph830
Christoph830's picture

Dude, going long is what the Bots want you to do.  You are going to get screwed again.

Tue, 10/04/2011 - 16:35 | 1738833 walküre
walküre's picture

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.

Tue, 10/04/2011 - 16:08 | 1738586 Iam Rich
Iam Rich's picture

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!

Tue, 10/04/2011 - 16:07 | 1738591 Racer
Racer's picture

How very convenient, market threatening to collapse and oh whisper whisper idiotic rumour not long before close... HFT gun shorts

Tue, 10/04/2011 - 16:07 | 1738592 Motorhead
Motorhead's picture

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".

Tue, 10/04/2011 - 16:08 | 1738595 PulauHantu29
PulauHantu29's picture

"Do I still get my Bonus?" is all bankers want to know.

Tue, 10/04/2011 - 16:08 | 1738597 St. Deluise
St. Deluise's picture

if you think this price action is based on a rumour about dexia doing ANYTHING, you are a clown.

Tue, 10/04/2011 - 16:11 | 1738599 warchopper
warchopper's picture

Buy on the close. With that out of the way, we can begin moving back down again.

Tue, 10/04/2011 - 16:09 | 1738606 adr
adr's picture

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

Tue, 10/04/2011 - 16:09 | 1738612 Comay Mierda
Comay Mierda's picture

parabolic rise to be followed with selloff tomorrow morning

Tue, 10/04/2011 - 16:26 | 1738616 Mercury
Mercury's picture

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?

Tue, 10/04/2011 - 16:33 | 1738795 Seasmoke
Seasmoke's picture

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

Tue, 10/04/2011 - 16:11 | 1738627 Bastiat009
Bastiat009's picture

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.

Tue, 10/04/2011 - 16:38 | 1738825 ebworthen
ebworthen's picture

I'm sure Poirot would disagree Mon Ami.

Tue, 10/04/2011 - 16:11 | 1738629 BetTheHouse
BetTheHouse's picture

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. 

Tue, 10/04/2011 - 16:12 | 1738642 tempo
tempo's picture

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.

Tue, 10/04/2011 - 16:12 | 1738648 ebworthen
ebworthen's picture

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.

 

Tue, 10/04/2011 - 16:13 | 1738649 Lord Welligton
Lord Welligton's picture

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...

Tue, 10/04/2011 - 19:37 | 1739523 fuu
fuu's picture

AP – Tue, Aug 9, 2011

 

Even the comments are old.

Tue, 10/04/2011 - 16:13 | 1738651 The4thStooge
The4thStooge's picture

i feel bad for pete

Tue, 10/04/2011 - 16:13 | 1738657 fastishplastic
fastishplastic's picture

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"


Tue, 10/04/2011 - 16:15 | 1738674 HD
HD's picture

Grade "A" Bullshit.  Above 1120, really? I mean really?  It's fine. I can and will wait...

Tue, 10/04/2011 - 16:19 | 1738718 ivars
ivars's picture

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.

Tue, 10/04/2011 - 16:55 | 1738947 Arkadaba
Arkadaba's picture

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.

Tue, 10/04/2011 - 16:25 | 1738736 tekhneek
tekhneek's picture

What's this shit called again? mark-to-myth accounting? market-to-myth accounting? (sp?)

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.

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...

Tue, 10/04/2011 - 16:22 | 1738740 JDFX
JDFX's picture

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.

 

 

Tue, 10/04/2011 - 16:33 | 1738752 BlackholeDivestment
BlackholeDivestment's picture

...close reminds me of this. http://www.youtube.com/watch?v=luaRtGn2tsI&NR=1

 

Tue, 10/04/2011 - 16:37 | 1738848 vast-dom
vast-dom's picture

No Tyler not complete idiots but MASSIVE INSIDE JOB profit-taking $kaM!

Tue, 10/04/2011 - 16:46 | 1738905 Spanish Lizard
Spanish Lizard's picture

Question is will it fully correct it's self tomorrow or will it end day tomorrow up because of the rumor??

Tue, 10/04/2011 - 17:05 | 1738985 Scalaris
Scalaris's picture

 

 

 

  1. Cover vomit with old newspapers.
  2. Enjoy your waffles.
  3. All good.
Tue, 10/04/2011 - 17:11 | 1739006 plantigrade
plantigrade's picture

Ben day'd ?

Tue, 10/04/2011 - 18:58 | 1739414 cgbspender
cgbspender's picture

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.

Tue, 10/04/2011 - 19:17 | 1739472 jaydee
jaydee's picture

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

Wed, 10/05/2011 - 04:07 | 1740383 Volaille de Bresse
Volaille de Bresse's picture

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!

Wed, 10/12/2011 - 12:12 | 1766086 karmete
karmete's picture

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