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Fri, 10/14/2011 - 13:49 | 1774506 Debtless
Debtless's picture

Forgive my ignorance here: Exactly WHO is losing the money/value on the other side of this X trade?

Fri, 10/14/2011 - 14:15 | 1774592 mirac
mirac's picture

From an earlier ZH article...


But you won't hear about it anywhere else, because if the market understands that in addition to a global solvency crisis, America has another Subprime contagion on its hands actually being expressed in the markets as we type, and potentially costing banks, pension funds and various asset managers billions in losses behind the scenes, that may well be the last straw.

Sat, 10/15/2011 - 02:57 | 1776464 Smithovsky
Smithovsky's picture

Tyler, how can we trade these PrimeX CDS thingamajigs?

Sat, 10/15/2011 - 05:47 | 1776573 jeff montanye
jeff montanye's picture

me too.  i'm only an mba, cfa with 15 years managing trust investment portfolios (out in '96) so much on this website is way over my head.  does the etf srs have a part to play?

Fri, 10/14/2011 - 14:16 | 1774597 Long-John-Silver
Long-John-Silver's picture

OT but this is important.

Obama sends 100 US troops to Uganda to help fight rebels


Fri, 10/14/2011 - 14:26 | 1774646 john39
john39's picture

No problem, the US can afford a few more wars, oh wait...

Fri, 10/14/2011 - 14:40 | 1774691 AustriAnnie
AustriAnnie's picture

"additional forces will deploy over the next month."

Of course!  

Fri, 10/14/2011 - 14:57 | 1774763 spartan117
spartan117's picture

Libyan rebels?  Wait, I thought they were on our side.

Sat, 10/15/2011 - 05:52 | 1776576 jeff montanye
jeff montanye's picture

hey, lighten up on obama guys.  he said, explicitly, that he wasn't against wars, just against dumb wars (like irag).  apparently once he got the much better information flowing to a u.s. president, as opposed to that available to fringe bloggers, he found out how much smarter these new wars would be so he started them.

Fri, 10/14/2011 - 14:21 | 1774619 porrannor
porrannor's picture

How would one trade it? is there any ETF representing this trade? SRS does not seem to reflect this deep... 

Fri, 10/14/2011 - 14:37 | 1774682 slaughterer
slaughterer's picture

SRS is 2X inverse a portfolio that makes up the Dow Jones Real Estate Index (9% SPG, 8% NLY, etc.).  You are not going to get much direct exposure to PrimeX. 

Fri, 10/14/2011 - 15:00 | 1774784 porrannor
porrannor's picture

Thanks, So, how would you trade it?

Fri, 10/14/2011 - 16:36 | 1775192 GittyUP
GittyUP's picture

get a bloomberg terminal.  Or find a broker willing to put the trade in for you.  prob need a few million minimum to get that kind of broker access. 

Fri, 10/14/2011 - 14:24 | 1774637 TheGameIsRigged
TheGameIsRigged's picture

I agree w/ Debtless....HOW DO WE TRADE IT???  I apologize for my ignorance.  I thought this was a site of mutual advancement ??  Please help the huddled masses....

Fri, 10/14/2011 - 15:59 | 1775024 Scarlo
Scarlo's picture

This is a site of REAL financial news. You need to figure out how to play it. I don't think anyone wants to hold your fishing rod for you whilst you snooze in a hammock drinking tequilas.

Sat, 10/15/2011 - 05:57 | 1776582 jeff montanye
jeff montanye's picture

you can snooze or you can drink tequila.  not even you can do both at the same time.

Fri, 10/14/2011 - 17:36 | 1775421 kaiserhoff
kaiserhoff's picture

Short the banks who are most exposed, but I would only do it with options.  The volatility in this market scares the shit out of me, and that will get worse before it gets better.  Follow Reggie Middleton and try to ignore the grammar;)

Fri, 10/14/2011 - 14:26 | 1774642 Roark_4_Prez
Roark_4_Prez's picture

anyone who took the other side of the short the main b/d's put on. even if b/d's need to mark down their books, they don't care because they are partially hedged here and it is not a complete 1:1 mark down cash:synthetic.

Fri, 10/14/2011 - 14:27 | 1774649 Roark_4_Prez
Roark_4_Prez's picture

or short the mtge reits to play

Fri, 10/14/2011 - 14:50 | 1774724 J 457
J 457's picture


Fri, 10/14/2011 - 16:22 | 1775116 hambone
hambone's picture

Perhaps the destruction of SRS / DRV (nearing all time lows again) is simply a 2nd derivative play on the impending bailouts of the REIT's???  Short CRE / REIT's is definitely not working out so far (down 99%+ over past 3 years).

Sat, 10/15/2011 - 06:41 | 1776608 jeff montanye
jeff montanye's picture

looks pretty good since late july.  the fifty day moving average just crossed the 200 day from below on significantly higher volume.  the weekly chart looks instructive as well.  recently had a reverse split.  see what you think: http://stockcharts.com/h-sc/ui?s=$INDU  (except enter srs and update) 

there are probably worse times to buy an asset than when it is "down 99%+ over past 3 years" and the fundamental case (slowing growth, increased solvency pressure on financial sector, central banks leverage starting to round to 100 rather than zero, etc.) appears to be turning.  oh and it looks increasingly like the credit cycle really did end in 2008 and all this since then seems more and more like a bear market rally (of epic proportion, admittedly).  when the bullish case is endless central bank bailouts, the bullish case is weak.

Fri, 10/14/2011 - 19:30 | 1775730 Yamaha
Yamaha's picture

I have done some research - thanks Tyler - I now get it. Very important.

Fri, 10/14/2011 - 13:49 | 1774508 RobotTrader
RobotTrader's picture


Does this mean "Risk Off" implosion is coming soon?

And are investors about to dump everything and flee back into Treasuries and the Mighty, Mighty, U.S. Dollar?

Are we going to hear Tom Keene squeal on Bloomberg Surveillance about how the "10-year is now the new 90-day T-Bill?", and Ken Prewitt sit there in slack-jawed amazement?

Fri, 10/14/2011 - 13:54 | 1774529 LawsofPhysics
LawsofPhysics's picture

Tune in Oct. 26th-28th to find out.  Especially you goldbugs.

Fri, 10/14/2011 - 14:04 | 1774556 tmosley
tmosley's picture

Why?  What is happening then, other than the usual OpEx smash?

Fri, 10/14/2011 - 14:16 | 1774599 macholatte
macholatte's picture


I thought October 15 was "End of the World Day". Has it been moved? Did I miss something?

Fri, 10/14/2011 - 14:22 | 1774626 tekhneek
tekhneek's picture

Oh do tell.

I love predictions.

Fri, 10/14/2011 - 14:03 | 1774554 slaughterer
slaughterer's picture

3 rhetorical questions from Robo-trader, obviously.

Fri, 10/14/2011 - 14:07 | 1774568 oddjob
oddjob's picture

How does this affect your Netflix?

Fri, 10/14/2011 - 13:51 | 1774509 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

PrimeX is going down faster than a protester punched at the Wall St rally:


Seriously, when are the citizenry going to say enough is enough, USA is turning into the soviet union daily.

Fri, 10/14/2011 - 13:54 | 1774531 Mike2756
Mike2756's picture

Right in front of a bazillion cameras, too. Not wise to do that in the middle of a crowd.

Fri, 10/14/2011 - 13:57 | 1774536 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

We both know there will be no justice and the filth will get promotion.

Fri, 10/14/2011 - 14:25 | 1774635 Dr. Richard Head
Dr. Richard Head's picture

The sad thing I hear from the Mainstream right and their devoted followers is that the "Police should open the hoses on those damned hippies."  Fucking retarded comments. Bunch of inmates cheering for their own continued life in a fiat cage and they don't even know it.  I pity and loathe them at the same time - the people cheering for the repression of the 1st amendment that is.

Fri, 10/14/2011 - 14:27 | 1774650 Dr. Richard Head
Dr. Richard Head's picture

At least now the masses of people are gathering for something of importance rather than an iPhone or some shit.....wait what?  Ohhh, people were doing gathering for that too?  Priorities, priorities.

Fri, 10/14/2011 - 13:58 | 1774538 TuesdayBen
TuesdayBen's picture

If we're going Soviet, let's hope that comes with thinner women.

Fri, 10/14/2011 - 14:10 | 1774577 SheepDog-One
SheepDog-One's picture

The women will soon be thinner, but less of them...lets just hope our soviet USSA also has free rotgut vodka to numb the senses.

Fri, 10/14/2011 - 14:22 | 1774623 Ivanovich
Ivanovich's picture

I'll settle for the women of today's Russian Federation.

Fri, 10/14/2011 - 14:12 | 1774583 DosZap
DosZap's picture



Seriously, when are the citizenry going to say enough is enough, USA is turning into the soviet union daily.

When the people that are punched,send the SOB to the hospital.

No way a cop punches a citizen(unless he's being punched/kicked/bitten,physically violated).

Fri, 10/14/2011 - 14:18 | 1774605 scatterbrains
scatterbrains's picture

That cop was probably being called a lazy fat pig banker goon when he went off swinging... I'm surprised how docile the crowd was.

Fri, 10/14/2011 - 15:02 | 1774785 Executioner
Executioner's picture

Soon we will know what people fear the most?

A punch in the face or letting the evil-doers plunder his house, families and rest of their lives?

Fri, 10/14/2011 - 13:50 | 1774512 Mike2756
Mike2756's picture

Euro jumping, must be bullish.

Fri, 10/14/2011 - 14:01 | 1774526 hambone
hambone's picture

Still think it's interesting that the PrimeX plunge coincided w/ the generational lowest mortgage rates...almost like every ARM, every refi, every home purchase will only get more expensive while home prices fall in the face of this sad reality. 

No more levers, no more games, no more stimulative tax policies.  That is Game.Set.Match. for housing.

Fri, 10/14/2011 - 13:59 | 1774541 mynhair
mynhair's picture

PrimeX is contained.  Timmah has it under control.

Fri, 10/14/2011 - 14:22 | 1774622 EscapeKey
EscapeKey's picture

And the US will avoid a recession.

Fri, 10/14/2011 - 14:01 | 1774547 Iam Rich
Iam Rich's picture

..and this story perfectly times a late day "sshhhwing" in the RUT.  Must be some good news coming out of the G20 this weekend!  BTFR!

Fri, 10/14/2011 - 14:08 | 1774573 slaughterer
slaughterer's picture

When does the PrimeX plunge get so bad that some IB has to call a fire sale on its jumbo MBSs?

Fri, 10/14/2011 - 14:14 | 1774586 Manipulism
Manipulism's picture

WTF is Primex???

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