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Stolper Alert: Goldman Says To Go Long EURUSD With 1.30 Target

Tyler Durden's picture




 

For months everyone was confused, like lost lambs in a sea of noise and 500x leverage, not knowing how to navigate the stormy, choppy FX seas. Now we know. For that beacon of anti-precision, the man, the myth, the legend who bats 0.000 and thus is the most certain contrarian bet in history, Goldman's Tom Stolper has spoken: "We would now recommend going long EUR/$ at current levels with a one-day
stop on a close below 1.18 for an initial target of 1.30
." Start your selling.

The announcement by the ECB today to prepare a reactivation of the SMP program but under the condition of a simultaneous EFSF/ESM program is another substantial step forward in terms of containment of the Euro area crisis.
From an FX standpoint we would emphasise the following:

  1. Using the unlimited ECB resources to anchor front-end rates has the potential to address one of the two key driving forces for the large EUR/$ decline of the last few months: the risk premium attached to sovereign bonds (or at least to parts of the sovereign curve).
  2. The insistence on strict conditionality will likely build support for this central bank action in countries with strong fiscal positions, in particular Germany. As Huw Pill and the European team pointed out, “from a normative perspective, the decisions announced today are reassuring,” given that the medium-term risks linked to moral hazard have been reduced. At the same time, Mr. Draghi insisted on the implementation of structural measures to sustain the Euro.
  3. The decision not to cut policy rates further implies that the downside
    stemming from the second key EUR/$ driving force (interest rate
    differentials) is limited at the moment.

Independent from this proposal on EFSF/ESM/SMP purchases of government bonds, the already announced centralisation of banking sector regulation under the authority of the ECB is an additional important positive step announced at the last summit and not yet reflected in the price.

 

For that reason we would now recommend going long EUR/$ at current levels with a one-day stop on a close below 1.18 for an initial target of 1.30. This trade is consistent with the recommendation of our fixed income strategy team to receive 5-year rates in the Euro area periphery (Spain, Ireland and Italy). Timing is the key risk to this trade as many hurdles remain and the exact details of the program will have to be agreed on. Markets may remain volatile as investors wait for Euro-area policymakers to back words with action.

Thank you Tom: we were lost but now we see.

PS. For those confused, this means Goldman is now selling EURUSD to muppets.

 

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Thu, 08/02/2012 - 13:07 | 2672869 NooooB
NooooB's picture

Waka Waka!

Thu, 08/02/2012 - 13:09 | 2672884 Lohn Jocke
Lohn Jocke's picture

HA!!

I'm long Dunder Mifflin with all the paper the Fed is going to need to get us to 1.3...

Thu, 08/02/2012 - 13:11 | 2672900 SilverTree
SilverTree's picture

I call bull shit.

Thu, 08/02/2012 - 13:35 | 2673007 Comay Mierda
Comay Mierda's picture

technical target = 1.16 based on breakout of bear flag on weekly chart.

confirmed by price target on point and figure chart  http://stockcharts.com/def/servlet/SC.pnf?c=$xeu,P

they will sell into you the whole way down

the muppet slayers are at it again

Thu, 08/02/2012 - 13:40 | 2673040 TheSilverJournal
TheSilverJournal's picture

Buy Euro's when it hits 1.17?

Thu, 08/02/2012 - 14:04 | 2673152 Jay Gould Esq.
Jay Gould Esq.'s picture

Is the verb "stolper" found in the Urban Dictionary ?

If it is not an entry, it should be.

"Man, did you see that guy who went long the euro at 1.21 ? He can barely squat on the curb and cry, he's in so much pain. Dude definitely got stolpered hard."

Thu, 08/02/2012 - 14:05 | 2673177 schatzi
schatzi's picture

you will find the name in a German dictionary and it is very funny and apt: stolper means to flounder, to stumble or trip.

Thu, 08/02/2012 - 14:09 | 2673196 Jay Gould Esq.
Jay Gould Esq.'s picture

Touche -- leave it to Goldman to hire such an "ironic" figure.

+1

Thu, 08/02/2012 - 15:11 | 2673457 AldousHuxley
AldousHuxley's picture

look back further:

http://www.forex-eur.com/images/EUR-USD-forex-chart.jpg

 

1.3 only looks good when you go back only 6 years.

Historical lows are at 0.9

 

USD      Average

1998    1.0
1999    1.0
2000    0.9
2001    0.9
2002    1.0
2003    1.2
2004    1.3
2005    1.2
2006    1.3
2007    1.5
2008    1.4
2009    1.4
2010    1.4
2011    1.3
2012    1.2

Thu, 08/02/2012 - 17:24 | 2674063 LowProfile
LowProfile's picture

I'm thinking 0.1258 before it reverses.

If that doesn't hold, then 0.116 seems reasonable, with more room to tank.

Thu, 08/02/2012 - 13:59 | 2673138 Stoploss
Stoploss's picture

Judging by the hammer handle on the dxy, 84.50 is going to be hard to hold.

Thu, 08/02/2012 - 13:32 | 2673012 strannick
strannick's picture

As for contrarian 0.00 batters my man Johnny 'Noodles' Nadler will go toe to toe with Stopler any day There can be only one.

Thu, 08/02/2012 - 13:11 | 2672888 vast-dom
vast-dom's picture

MUPPET RAPE

 

GS "sorrry we had to close our positions, sorry about your muppet limp, we did our best for you [chortle chortle]."

Thu, 08/02/2012 - 13:36 | 2673021 Sofa King
Sofa King's picture

This is what pops in my head anytime I hear a recommendation from GS.

 

http://www.mojnet.com/video-sex-pistols-and-the-muppets-friggin-in-the-r...

Thu, 08/02/2012 - 13:43 | 2673059 dracos_ghost
dracos_ghost's picture

https://sphotos-a.xx.fbcdn.net/hphotos-ash3/576103_3574328192537_9770253...

 

Here are the majority clientelle left for GS.

Fri, 08/03/2012 - 09:46 | 2675572 awakening
awakening's picture

To point out the obvious irony, congrats for finding the pic on a server belonging to FB.

Thu, 08/02/2012 - 14:04 | 2673170 acompletedouche
acompletedouche's picture

Spit out my coffee,that was funny shit......

Thu, 08/02/2012 - 13:07 | 2672870 Biosci
Biosci's picture

goddammit, i just sold my GLD puts.

Thu, 08/02/2012 - 13:07 | 2672871 Ned Zeppelin
Ned Zeppelin's picture

Coordinated propaganda. It is now a certainty that the Euro is going lower.

Thu, 08/02/2012 - 13:11 | 2672895 bdc63
bdc63's picture

If by "lower" you mean to zero, well then, yeah ...

Thu, 08/02/2012 - 13:43 | 2673064 TheSilverJournal
TheSilverJournal's picture

You forgot that it's being measured against the dollar. After this coming three week rally in the dollar, the dollar is then going to fall off a cliff.

Thu, 08/02/2012 - 13:08 | 2672872 malikai
malikai's picture

Buy that shit, muppets!

Meanwhile, look out below:

http://www.quantsig.net/img/fx_eurusd.png

Thu, 08/02/2012 - 13:24 | 2672968 blindfaith
blindfaith's picture

This is truly astonishing. Can there really be any dummies with 100K to give away on this advice?

Thu, 08/02/2012 - 13:48 | 2673093 malikai
malikai's picture

Apparently OPM has infinite wealth and trust. Thus, Goldman is #1!

It can't last forever.

Thu, 08/02/2012 - 13:08 | 2672874 Neethgie
Neethgie's picture

LOL, great intro, was perfect.

Thu, 08/02/2012 - 13:08 | 2672875 transaccountin
transaccountin's picture

lolz

Thu, 08/02/2012 - 13:13 | 2672878 bdc63
bdc63's picture

Blue Horseshit says buy euros ...

Thu, 08/02/2012 - 13:09 | 2672881 Jlmadyson
Jlmadyson's picture

BWHAHAHAHAHAHAHAHA.

Hell to the no!

Thu, 08/02/2012 - 13:09 | 2672887 Al Huxley
Al Huxley's picture

Wow, it seems so counter-intuitive, since this appears on the SURFACE to be obviously bad advice based on the situation in Europe, and almost certainly IS bad advice, based on Stolper's record, so who are they going to trap?  Or is it the old 'reverse-reverse-reverse psychology trick - it looks like bad advice so it must be good advice, but everybody knows Stolper only gives bad advice, but since everybody knows that, he's setting up all those who now habitually fade him...  fuck it, I've confused myself now.

Thu, 08/02/2012 - 13:11 | 2672902 bdc63
bdc63's picture

don't overthink this ... just sell

Thu, 08/02/2012 - 13:13 | 2672912 hedgeless_horseman
hedgeless_horseman's picture

 

 

don't overthink this ... just sell run algo

Thu, 08/02/2012 - 13:14 | 2672919 strongband
strongband's picture

you've been stolped out!

Thu, 08/02/2012 - 13:19 | 2672943 Paul Atreides
Paul Atreides's picture

Anyone still in this shithole of a market is just asking for it either way....

Thu, 08/02/2012 - 13:27 | 2672985 blindfaith
blindfaith's picture

MEMO:  tell my retirement fund manager that he should sell.  Or, it is buy...that either way thing confused me.

Thu, 08/02/2012 - 13:42 | 2673058 ArrestBobRubin
ArrestBobRubin's picture

Muad Deep

Thu, 08/02/2012 - 13:22 | 2672958 tarsubil
tarsubil's picture

The trick is that both goblets are poisoned.

http://youtu.be/E2y40U2LvKY

Thu, 08/02/2012 - 13:22 | 2672962 Paul Atreides
Paul Atreides's picture

Inconceivable!

Thu, 08/02/2012 - 14:08 | 2673190 PlausibleDenial
PlausibleDenial's picture

Clearly!!

Thu, 08/02/2012 - 13:23 | 2672967 fahmahbob
fahmahbob's picture

"All right. Where is the poison? The battle of wits has begun. It ends when you decide and we both drink, and find out who is right... and who is dead."

-Princess Bride

Thu, 08/02/2012 - 13:25 | 2672973 lizzy36
lizzy36's picture

Double reverse with a penis touch, John Travolta style....duh ;)

Thu, 08/02/2012 - 13:31 | 2673005 disabledvet
disabledvet's picture

What was the story again?

Thu, 08/02/2012 - 13:59 | 2673141 tradewithdave
tradewithdave's picture

You said exactly what I was thinking. The double reverse. In football you can use it once a decade.

Thu, 08/02/2012 - 15:18 | 2673491 PontifexMaximus
PontifexMaximus's picture

Ur rite, go long EUR.

Thu, 08/02/2012 - 21:10 | 2674542 Clever Name
Clever Name's picture

"You're trying to trick me into giving away something. It won't work."

Thu, 08/02/2012 - 13:11 | 2672903 agent default
agent default's picture

Is 1.30 EUR/USD or USD/EUR?  I am confused with this guy.

Thu, 08/02/2012 - 13:12 | 2672906 markar
markar's picture

I've never traded currencies. What's the best way to short the Euro based on this?

Thu, 08/02/2012 - 13:14 | 2672917 kito
kito's picture

etf is fine. try EUO. leveraged short euro

Thu, 08/02/2012 - 15:02 | 2673417 jvetter713
jvetter713's picture

Does EUO have the inverse?  It's always better to short the bull than long the bear...at least for the leveraged ones.

Thu, 08/02/2012 - 13:18 | 2672939 DeadFred
DeadFred's picture

I like puts on FXE if you can do options. Goldman is doing the world a service on this one, anyone who follows this advice shouldn't be allowed to possess money.

Thu, 08/02/2012 - 13:43 | 2673046 Arius
Arius's picture

always doing God's work ....

lord blankfein's interpretation: to separate fools from their hard earned cash

Thu, 08/02/2012 - 21:18 | 2674555 Orly
Orly's picture

The ETF is not fine.  There are as many leveraged ways to screw you out of your money.

Get the real deal and don't be scared.  Get a practice account (Demo...) from IBFX, tell the machine to sell Euros (I am not saying that's what you should do right here...) and see what happens.  You're gonna love it.

http://www.ibfx.com/Platform/Free-Forex-Demo-Account

Once you go 4X, you'll leave stocks and options behind for good.

:D

Thu, 08/02/2012 - 13:13 | 2672913 timbo_em
timbo_em's picture

No update on their hilarious advice to go long Italian and Spanish government bonds?

Thu, 08/02/2012 - 13:14 | 2672920 VonSalza
VonSalza's picture

shut up and take my money

Thu, 08/02/2012 - 13:43 | 2673062 Overflow-admin
Overflow-admin's picture

you forgot the gif!

Thu, 08/02/2012 - 13:15 | 2672921 Madcow
Madcow's picture

Fed statements are starting to sound more like depositions. 

 

http://www.scribd.com/doc/101764669/August-FOMC-Comp

Thu, 08/02/2012 - 13:15 | 2672922 Haager
Haager's picture

Will Goldman suffer when the Euro really hits 1.30?

Thu, 08/02/2012 - 13:18 | 2672936 bdc63
bdc63's picture

Never again, in the entire future of mankind and beyond, will the Euro see 1.30.

Thu, 08/02/2012 - 15:15 | 2673473 AldousHuxley
AldousHuxley's picture

when euro falls apart, mankind won't see euro again.

Thu, 08/02/2012 - 15:19 | 2673498 PontifexMaximus
PontifexMaximus's picture

Any bets?

Thu, 08/02/2012 - 13:17 | 2672931 Itch
Itch's picture

If i ever bump into this cunt im gonna ride him like a horse.

Thu, 08/02/2012 - 13:21 | 2672960 Dr. Engali
Dr. Engali's picture

You should thank him for all the free "advice"...that is if you are capitalizing on it.

Thu, 08/02/2012 - 14:34 | 2673310 Itch
Itch's picture

Nah, the day i trade against him, he will be be right/wrong. 

Thu, 08/02/2012 - 13:17 | 2672932 d_taco
d_taco's picture

BREAKING NEWS RBS NEAR POINT OF COLLAPSE

Senior U.K. government ministers are considering fully nationalizing Royal Bank of Scotland

Read more: http://www.foxbusiness.com/news/2012/08/02/uk-mulls-nationalizing-royal-bank-scotland/#ixzz20N35Yauc

 

Strange that ZeroHedge nearly missed all the bad news from the UK

 

Thu, 08/02/2012 - 13:20 | 2672953 bdc63
bdc63's picture

Everything else in the UK has been socialized ... it's about time they take over the banks as well.  Frankly, I'm surprized they waited this long.

Thu, 08/02/2012 - 15:26 | 2673523 AldousHuxley
AldousHuxley's picture

UK's top banks:

 

RBS is currently 82% owned by taxpayers

Lloyds Banking Group is under 41% government ownership

barclays bought lehman and now entangled in LIBOR in the front and center

HSBC is looking to move to Asia where they do half of their business

 

UK is FUCKED. Miserable weather, shitty food, arrogant attitudes. Sun has set on british empire. More opportunities in ex-colonies.

If I lived in London, I'd get the hell out. Australia, New Zealand, Canada.

Thu, 08/02/2012 - 13:20 | 2672955 Jlmadyson
Jlmadyson's picture

And here we go!

2008 is back!

Thu, 08/02/2012 - 13:25 | 2672974 Northeaster
Northeaster's picture

Maybe those with a business can chime in, but a red flag went up in my non-financialized brain:

If They nationalize the bank, in order to "force lending", who would they lend too? If your business can't run on it's own merits, why would you float a loan? I would also venture, that any prudent business person wouldn't want to go into debt knowing that Europe is in contraction.

If I'm way of base, please make the point. Thanks.

Thu, 08/02/2012 - 13:45 | 2673073 Getting Old Sucks
Getting Old Sucks's picture

There are many businesses that need capital to complete high cost contracted jobs before they are paid in full for them. 

Thu, 08/02/2012 - 13:28 | 2672987 Byte Me
Byte Me's picture

Strange that ZeroHedge nearly missed all the bad news from the UK

You mean, there's been good news out of the UK (this year) and we've all been obsessing over that?

Thu, 08/02/2012 - 13:35 | 2673025 ArrestBobRubin
ArrestBobRubin's picture

What a funny coincidence that RBS and all its liabilities was dumped square into the lap of the English taxpayer a few years back.

Thu, 08/02/2012 - 13:18 | 2672937 Doublescythe
Doublescythe's picture

Good lord, some muppets are going to get impaled by Goldman's katana sword on this one.

I'm not saying the vampire squid gets all of its calls right, but this one is so ludicrous that it will get muppets who think they are "contrarian" to buy into this bullshit.

Thu, 08/02/2012 - 13:20 | 2672952 Mr_Wonderful
Mr_Wonderful's picture

Goldman is afraid of the dollar and understandably so. It has been in a trading range  for the last decade of 72-90 circa and seems set to reach upper target in a few months. Dollar moves are always extremely important since pretty much everything are counter-trades. Google - goldman warehousing business - . This is gigantic stuff. Imagine the derivatives contracts.

Thu, 08/02/2012 - 13:23 | 2672963 Quinvarius
Quinvarius's picture

Nothing like an idiot who tries to apply fundamentals and technicals to a paper hologram of an FX market that moves merely the whims of central planners.

You should not be in that market unless you know what prices the central bankers are shooting for.  The paper prices can be set anywhere anytime.

Thu, 08/02/2012 - 13:27 | 2672983 youngman
youngman's picture

I think that the Euro should go to par...1 to 1 with the dollar....to me that is the only thing that has a chance of saving the EU....it will help sales...get employment going.....increase  tax revenues...but for some reason it keeps popping up

Thu, 08/02/2012 - 13:30 | 2673001 Rip van Wrinkle
Rip van Wrinkle's picture

And do wonders for fekkin' inflation as well.

Thu, 08/02/2012 - 13:44 | 2673072 Pareto
Pareto's picture

I've nevber believed that a weaker currency "stimulates" exports to the extent people think.  When you debase the currency for this purpose, the prices of all shit rises in domestic terms, including input prices.  So, while the sticker price might appear attractive to the foreignor in the context of exchange rates, input prices will raise production costs and reduce the domestic firm's pricing flexibility.  The domestic firm will fair that much better at the margin were the currency to remain strong.  There is no free lunch.  Debased currency raises prices for everybody in the domestic country doing the debasing.  The race to the bottom, imo clearly demonstrates this.  Lucas talks about this as well.  cheers

Thu, 08/02/2012 - 13:58 | 2673134 Mr_Wonderful
Mr_Wonderful's picture

Higher euro means lower dollar and thus more revenue and profits for U.S. multinationals to book back home in dollars, which should reflect in higher stock prices. Of course foreign producers of commodities want a falling dollar which means more units of their domestic currencies for their produce. Then over time you have these incredible bubbles which all are more or less predicated on the demise of the dollar. It will remain elusive for a long time to come.

Thu, 08/02/2012 - 13:28 | 2672991 jdm1313
jdm1313's picture

How can people that are to supposed so smart be so stupid?  

Thu, 08/02/2012 - 13:46 | 2673081 Arius
Arius's picture

i think the key word is "supposed"

Thu, 08/02/2012 - 13:29 | 2672994 doc_in_the_house
doc_in_the_house's picture

just say NO to muppet masters

i did cover my EUR shorts of 1.232 from last fri 7/27 TODAY @ 1.216...i been riding my 1.315 (avg price @ 4X leverage)...

waiting for 1.225+ to re-short and ride to 1.10 = cover all

fyi...in 2008 when oil @ $110, the stupid goldman trash performance chasers were predicting $200+ oil = ME SHORT....i covered all @ sub $60...it dropped to $33..NICE GOING GS !!!!

in 2008 they were also bullish EUR = AT THE WRONG TIMES..thank you shoe shine boyz!

Thu, 08/02/2012 - 13:35 | 2673023 Haager
Haager's picture

Go, sit in front of a mirror.

Thu, 08/02/2012 - 13:30 | 2673002 GlomarHabu
GlomarHabu's picture

 

 

" EFSF/ESM program is another substantial step forward in terms of containment of the Euro area crisis. "

Containment ?   This guy is on acid.

As a broker I found out real quick that few ,very few, on WS can even read the day on the calendar without lying.

Thu, 08/02/2012 - 13:32 | 2673011 tuttisaluti
tuttisaluti's picture

This time GS could be right. but I see a target of 1.70

Thu, 08/02/2012 - 13:37 | 2673032 alien-IQ
alien-IQ's picture

uhhh...WHAT?  1.70? 

Thu, 08/02/2012 - 13:43 | 2673061 Haager
Haager's picture

Actually, that is as if someone wants gold @ 3000+. Euro lows/highs correlate nicely with gold.

Thu, 08/02/2012 - 13:34 | 2673019 Lost Wages
Lost Wages's picture

"When your world looks kinda weird and you wish that you weren't there, just close your eyes and make believe and you can be anywhere." -Muppet Babies Coping Strategy

http://www.youtube.com/watch?v=1ju75XsCO4o

Thu, 08/02/2012 - 13:36 | 2673026 alien-IQ
alien-IQ's picture

wow. absolutely shameless. how they still have any clients left is a complete mystery to me.

Thu, 08/02/2012 - 13:38 | 2673037 hedgeisforpussies
hedgeisforpussies's picture

i am an idiot. wanted to short eurusd at 124 but missed it listening to the clown. 

Thu, 08/02/2012 - 13:41 | 2673051 Overflow-admin
Overflow-admin's picture

Alert: Go SHORT EURUSD
- Contrarian indicator: check
- As long as the SNB doesn't unwind their massive long EURCHF exposure: (now around 60%) check
- As long as the US Dollar Index doesn't break his current ascending channel: check

Thu, 08/02/2012 - 13:41 | 2673055 onebir
onebir's picture

But jumping Jehosephat, couldn't the Hilsenrath failure have reversed Stolper's polarity, Batman?

Thu, 08/02/2012 - 13:46 | 2673063 SoNH80
SoNH80's picture

Hey, Bruce the K, if you read this, it may be time for a status update post on the Swiss CB's effort to hold down the Franc.  It seems to be working (?), any insights would be appreciated.

 

Thu, 08/02/2012 - 13:44 | 2673066 Turin Turambar
Turin Turambar's picture

Sell your house and short the Euro.  There is no more accurate predictor than contrarian GS recommendations.

Thu, 08/02/2012 - 13:44 | 2673069 cougar_w
cougar_w's picture

Maybe GS thinks BB is about to go ape-shit debasing the dohlar. It's hard to even imagine the US going down the hyperinflationary drain faster than the Eurozone -- they have such a fine head start -- but I bet there is a way to do it. BB could tank the dollar with less than a Twitter tweet if he chose his words right. Something like "The Fed will buy 2 trillion dollars in Treasury issue between September and November."

Thu, 08/02/2012 - 13:46 | 2673082 buzzsaw99
buzzsaw99's picture

today is a good day for the muppets to buy euro with a fully margined account (courtesy of the squid). [/sarc.]

Thu, 08/02/2012 - 13:47 | 2673086 hedgeisforpussies
hedgeisforpussies's picture

whats with brent today? the only risky asset that is up. 

Thu, 08/02/2012 - 15:40 | 2673605 Venerability
Venerability's picture

A few hours ago, Israel issued a stern warning to its citizens against going near Sinai.

And almost simultaneously, the Iranians made a statement calling for the world to help "annihilate" Israel - Yes, they make a lot of these statements, but this is the first one in awhile. 

Then there's the Annan resignation.

All in all, not a good day in the Middle East.

Thu, 08/02/2012 - 13:48 | 2673094 Rat Patrol
Rat Patrol's picture

I know how fix this. Make it illegal to print dollars with anything other than solar energy.

Thu, 08/02/2012 - 13:50 | 2673098 Duke of Con Dao
Duke of Con Dao's picture

did you say Goldman? here's an old chestnuT - I'm thinking to replace the clip's music with Pull Up to the Bumper Baby? 

YouTube - Goldman Sachs Squid Skull Hood Ornament - Arriving for the Kill

and of course the lastest, perhaps not greatest sequel in the YOU DIDNT BUILD THAT series...

YouTube - "You Didn't Build That Frankenstein!' sez President Obama

enjoy. el Dukerino 

Thu, 08/02/2012 - 13:50 | 2673100 Venerability
Venerability's picture

Goldman may be right this time. Entire Market past few days feels like a set- up.

There are entirely too many Market Nihilists around - and this time, every PPT in sight should try to stop them.

They have to start realizing, however, that in a purely MECHANICAL sense, they have to stop allowing JPM and Friends to keep pounding paper Gold, Silver, and Oil.

This is the major signal that the Coast is Clear, and sideliners will not tread back into the water until they see Gold and Energy moving normally again.

 

Thu, 08/02/2012 - 14:04 | 2673111 buzzsaw99
buzzsaw99's picture

Goldman may be right this time...

or it could be that the squid has funds tied up in eurozone money market accounts that they are worried about.

Thu, 08/02/2012 - 13:55 | 2673120 Ned Zeppelin
Ned Zeppelin's picture

Huh?

Thu, 08/02/2012 - 14:07 | 2673188 johnjkiii
johnjkiii's picture

Tang Gahd! Our work has had us long EUO since Dec & now we can average up.

Thu, 08/02/2012 - 14:18 | 2673241 warezdog
warezdog's picture

A smart investor, or should I say player of the great game, ALWAYS does the opposite of what GS says because thats what THEY always do anyways.

Looks like they're rounding up muppet accounts to pump and dump on, their Q3 must not be looking good at all, either that or they're rounding up cash for the Knights chapter liquidation sale.

Thu, 08/02/2012 - 14:21 | 2673255 Roland99
Roland99's picture

W T F ?! ?!

Thu, 08/02/2012 - 14:21 | 2673257 Mr_Wonderful
Mr_Wonderful's picture

Western economies are extremely driven by consumer spending. In the U.S. over 70% of economic turnover and in Europe probably approaching this. Obviously consumers need to have money to spend to maintain these economies. However there are two main headwinds. First of all, high unemployment and second of all extreme indebtness. Even pedollarsople well employed have to pay a good chunk of their income to creditors and hence have this less room to consume.

I think it would be an interesting idea for the FED to simply send a trillion dollars to the American public over say a year as a bailout. These monies would have to be used to pay down debt only. This would free dollars to be spent on consumption and thus job creation and also there would be positive psychological effect from debt being paid down.

Thu, 08/02/2012 - 14:43 | 2673350 Yen Cross
Yen Cross's picture

 Good ole Tommy (Stopout) is playing the 24hr Draghi with his pants around his ankles ( bond buying put)...

Thu, 08/02/2012 - 14:54 | 2673396 Nobody For President
Nobody For President's picture

Does this guy Stolper actually get PAID for this stuff? (Refuse to call it analysis.)

Thu, 08/02/2012 - 15:06 | 2673434 Mr_Wonderful
Mr_Wonderful's picture

Thank god those people at the FED aren´t rocket scientists. They seem to grasp the idea that ballooning indebtness in a consumer driven economy eventually creates problems as money can´t be both spent on hamburgers and debt service, but their solution has been to press down the cost of debt servicing thereby encouraging the creation of even more debt. Well, this has to hit a wall obviously and that is pretty elementary mathematics. I would imagine that exponential functions are pretty elementary in today´s watered down colleges, right? Maybe not. Nowadays you got to think enermous unemployment reservoirs. The bar has been getting lower. Everything has to be passed somehow. It´s a conveyor belt. I think we see the consequences before us.

Thu, 08/02/2012 - 15:40 | 2673612 MachuPicchu
MachuPicchu's picture

If GS says buy... you must SELL...simple and logic.

Fri, 08/03/2012 - 02:20 | 2674993 Essential Nexus
Essential Nexus's picture

What if Golman one day starts telling the truth just to trick everyone...

Fri, 08/03/2012 - 20:12 | 2677247 7bit
7bit's picture

I hope all your shorts are doing well.

LOL³

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