Oil Tumbles On First Sign Of Risk Offness

Tyler Durden's picture

We have gotten to the point when the nanosecond there is even a whiff of "risk off", everyone hits the Sell button at the same time. Observe Crude. And, yes, volume was involved.

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dukeland's picture

Pun intended... its on a slippery slope

trav7777's picture

yeah, Tyler, ZOMG, two whole fuckin bucks.

Harlequin001's picture

Isn't it stunning how everyone manages to hit the sell button at the same time...

You could be forgiven for thinking that the markets were moved by one or two players couldn't you?

Now where is that Regulator again...

bob_dabolina's picture


Uhhh...look at Dr. Copper, looks like he needs a myocardiogram

LongBalls's picture

Accumulate oil boys and girls. We will got to war with Iran before the Fed's let the economy roll over. Ever here of a country that launched a massive war right after a currency or credit collapse? No....we will be ALL in to protect the "petro dollar" first. If Iran gets a nuke they can trade thier oil reserves for say....hmmmmm gold with China? Such a trade would mark the end of our ability to print to infinity!

AldousHuxley's picture

don't forget russia. they gave Iran the nuke tech.

fourchan's picture

actually the post nazi german companys supplyed the centerfuge tech

to the muslems to complete the final solution against the jews. see "stealing the fire."



Gene8696's picture

I can see that happening.. And agree we will go to war before waving a white flag. If that was to happen, it would be some time out.. Min 1-2 years, after elections. Although Iran has a history of poking the US during elections.

Goverment Oil reserve numbers is total horse shit... WTI's spread is a better indicator, for me. There is plenty of oil on the market, it should break below 75 again. The cost to move that oil to a market that pays near Brent prices is less than $15. Consumption is down, import is down, and our "new" production,which is increasing.. costs $30-60 to get out the ground.

On the other hand you have the fertile crescent bunch.. They need oil to be north of $100 Brent, to pay for all the shit they bought on credit. Have you been to Dubai latey? I have, and you can believe they have there own debt problems... the whole region.

The mad-hatter in me also questions how the government controls oil prices as well.. Lots of tax revenues from oil and gas..

I think we will see 75 again if we can keep oil attached to S&P.. But it doesnt take a mushroom cloud in the east to prove me wrong.

GeneMarchbanks's picture

Panicky markets. I don't get it? Where's all the uncertainty? Greece will default, France will be downgraded, Germany will return the Deutschmark.

slewie the pi-rat's picture

they say it's for horses
and not for men
they say i'll kill me
but they won't say when

FubarNation's picture

I still have a few Deutschmarks floating around.  Who would have thought they would be of use again?

Long-John-Silver's picture

The new Deutschmarks will be completely different from the vintage fiat you now hold. It will remain in it's current currency status of worthlessness.

johny2's picture

They won't. but there is a way to get some of the new deutschmarks at large discount. And it carries almost no risk. While there is a reason why thr real estate in berlin is cheaper than anywhere in europe ( laws ), if the germany gets its own currency, this real estate is suddenly going to become some of the most expensive in europe. And if the euro survives, you still are buying relatively cheap, and will be getting a reasonable return. Just an idea for those that want to diversify. 

Long-John-Silver's picture

Anyone still trading in today’s markets are too stupid to know that. They still have faith in Keynesian economics.

JW n FL's picture



Look.. I have Love for ya man.. so dont go getting all idiot on me here..

Keynesian is NOT! the Problem any more than Austrian is the answer..

The Problem is Corruption, the men driving are drunk on power and high on printer ink.

it would not matter would theory we used, the Corrupt men counting the money inside the FED.. the Share Holders of the Federal Reserve Bank.. they are the problem.

I would not lie to you Bro, not about this shit any way.. if the last cookie was missing, I may blame the dog.. but I am an ubber fat guy.. you cant blame a fat guy for taking the last cookie!

shazbotz's picture

Admitting defeat before stealing every penny from the citizens is a very hard thing indeed, for the Kleptocrats to do...

TheSilverJournal's picture

Germany won't return to the Deutschmark until the Euro hyperinflates away. Centralizing fiat worked when going from the Deutschmark to the Euro, but decentralizing fiat going from the Euro to the Deutschmark won't work. The only way to make it work is to back it by something and then their governments would lose control over the printing presses. Bottom line..the governments won't give up control of the printing presses until it's meaningless to print. The dollar is fundamentally in much worse shape than the Euro because the dollar will hyperinflate sooner.

AbelCatalyst's picture

Germany leaving the Euro will be the catalyst behind Euro hyperinflating away...  Then Germany wakes up with no debt, whihc was also inflated away!!  Go Germany!!  Bye-bye Euro!!!

TheSilverJournal's picture

You're missing one little problem. How does Germany then make a new money? It can't do it without drastically reducing the size of it's government..so it won't.

AbelCatalyst's picture

Every country is going to have to live within it's means at some point...  Not sure when or how much suffering will be required before we all wake up, but in the end the world will be a happier, healthier, less corrupt place...  Before that happens we're going to all be eating a giant slice of humble pie!!

TheSilverJournal's picture

The West will be eating humble pie while the East will actually be able to breathe a sigh of relief. Countries again will be able to consume what they produce..the way it should be.

kito's picture

you will never see the euro hyperinflate away. NEVER. you will not see the dollar hyperinflate away. as much as everyone maligns the central bankers intelligence, they are playing it pretty shrewd. they WILL NOT RISK THE END OF FIAT by destroying the currencies. they will let sovereigns fall before they destroy what keeps them reigning. they would rather have destruction come via deflation, which keeps fiat afloat, and their jobs intact, than destruction through hyperinflation, which they would lose everything. and you can kiss gold and silver goodbye. it will be utterly obliterated along with everything except physical cash.

TheSilverJournal's picture

In order to never allow depositors to lose their money, they must print endless streams of fiat.

What you're saying is that they will allow depositors to lose their money, which is what should happen and what must happen in order to save the USD and avoid hyperinflation. I just don't see them doing an about face like that and suddenly start doing the right thing. There's no signs that the Fed is suddenly going to raise interest rates, stop backing mortgages, stop backing the FDIC, stop loans to banks and countries, and stop facilitating the growth of government. I see all of the signs in the exact opposite direction. Hell, Bernanke just through another mandate in the other day to "support the banking system". It sounded to me like it is the start of an excuse to ignore the 2% inflation target. After all of these years of low rates and bailouts, do you really think Bernanke will say, "Oh, I was wrong, we need to to the exact opposite of what I was saying all along."? Bernanke won't say that. He won't throw his life's work under the bus like that even if it means the destruction of the world.

Dugald's picture

The problem with you guys is you always assassinate the wrong people!!


trav7777's picture

the central banks control jackshit.  the fiat confetti they push is a voluntary thing.  When it no longer benefits the government to go along with it, they will end the charade.

arizona11912's picture

The Germans couldnt go back to the Deutshmark if they wanted to. They'd be forced to print just like everyone else to remain competitive. I'm selling pre-order Euro bonds.....get'em while they're hot. Euro bonds will be soon be the catch phrase here on ZH.

kahunabear's picture

Once in a while, if you ignore all the fluff, there is a nugget on CNBS. Some steel guy just said steel demand has taken a huge plunge in the last 60 days. Interesting.

The bubbleheads are ignoring that these "good" earnings were mostly before they recent plunge in the worldwide economy.

buzzsaw99's picture

That is bullish for CLF right?

Amish Hacker's picture

Right. Down 40% in two months, down 7% today. MACD and RSI rolling over. Back up the truck.

Frank N. Beans's picture

in the LA Times last week there was an article about how there were so few ships coming in to the LA ports to offload their China crap for the holidays as compared to last year.  I think that's a pretty definitive indicator of the slowdown also.


AbelCatalyst's picture

I read that article too!  The slow down was significant...  People have no idea the kind of storm that is brewing on the horizon...  2008 is going to look like a summer shower compared to what's coming...  

Dumpster Fire's picture

Deflation bitchezz

s2man's picture

Not if TPTB can do anything about it.  The banks NEED inflation to keep the asset values higher than the loans they have given on them (see housing strategic defaults).  And you know who the banks friend is, the guy with the printing press.

Jack Napier's picture

You're both right. Deflation now. QE3 when there's blood in the streets to prop up the bond bubble and inflate asset prices. PM's to the moon. The paper bon fire will be brutal.

afdestruction's picture

Napier nailed it^^^^   Deflation if it happens at all (could go eithe way right now) will only be intermediate term

css1971's picture

Yeah... But don't try shorting it.

TheSilverJournal's picture

The Fed is lying to us, QE3 is happening now. With keeping the very short end at 0%, how can you sell the short end to buy the long end..so..the Fed must be doing more QE.

LongBalls's picture

Ding, ding, ding...... Give this guy some fiat.

DaveyJones's picture

part of hyperinflation is everyone crowding up on the short end. That's what happened in Germany a long time ago. No one wanted to hold their stuff. It deflates the long stuff like houses and beats the crap out of the essentials. The feds knows no one is interested in a long bet on US 

buzzsaw99's picture

so sad, and after all the work speculators did to drive up the price for selfish gain.

NumberNone's picture

We need a new rumor...where's the new rumor dammit!!

Hephasteus's picture

Where's the tube with blue oil/coolant spraying on the bit. That guy must love buying tools.

css1971's picture

What kind would Sir like? One can choose from the menu.

Libertarians for Prosperity's picture



Bloomberg is reporting that someone has turned the Perpetual Growth Machine back on.


Racer's picture

Because these idiots keep trying to stabilise a fundamentally unstable sinking ship they are creating even greater waves of volatility that will eventually sink it

sheeple2012's picture

Bullish for stox in Cramerica!

SheepDog-One's picture

Skittish Coombs....very skittish.