Posted on 02/16/2009 7:47:40 PM PST by dangermouse
8:17 CT
I do not know what is going on here, and I don't think I want to.
Someone, apparently someone in Asia, wants dollars. A LOT of dollars. There is a forced-liquidation event underway that is massive, it is against all asset classes and it is spreading.
It originated at approximately 7:15 CT this evening and originated out of Asia somewhere. All of the primary currency crosses got hit at once - Euro, Pound, Yen - all weakened dramatically against the dollar and it is still going on. The Asian stock markets got walloped at the same time in coordinated waves of forced selling.
At the same time the US futures markets got nailed as well, down some six handles on the /ES in a near-vertical drop. While this sounds "not that big" to move these markets in a coordinated fashion like this is a trillion-dollar enterprise - this is not some small company that went bankrupt, or even a large company.
There is no news coverage at the present time identifying the source of this but it is not small and contrary to some reports it is not "automatic selling"; this is forced liquidation.
Folks, if this translates into Eastern Europe where there are severe instabilities already brewing literally everything in the financial world could come apart "all at once."
The worse news is that if this happens Bernanke will have killed us (in the US) by extending those swap lines all over the planet during the last six months. These will become utterly uncollectable and they are massive, in the many hundreds of billions of dollars.
To those who are reading this, I hope if you're in the markets you are prepared for extreme levels of violence. You must expect that the authorities will try to arrest the destruction if they are able, but you must also be prepared for the possibility that we have reached a "critical mass" point beyond which "duck and cover" is the only winning strategy.
Unfortunately.
I hope I'm wrong; this is going to be a long night.
Rollin’ Rollin’ Rollin’
Keep movin’, movin’, movin’,
Though they’re disapprovin’,
Keep them doggies movin’ Rawhide!
Don’t try to understand ‘em,
Just rope and throw and grab ‘em,
Soon we’ll be living high and wide.
Boy my heart’s calculatin’
My true love will be waitin’, be waiting at the end of my ride.
Move ‘em on, head ‘em up,
Head ‘em up, move ‘em out,
Move ‘em on, head ‘em out Rawhide!
Set ‘em out, ride ‘em in
Ride ‘em in, let ‘em out,
Cut ‘em out, ride ‘em in Rawhide.
Full Lyrics
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rollin’, rollin’, rollin’
Rawhide!
Rollin’, rollin’, rollin’
Though the streams are swollen
Keep them dogies rollin’
Rawhide!
Rain and wind and weather
Hell-bent for leather
Wishin’ my gal was by my side.
All the things I’m missin’,
Good vittles, love, and kissin’,
Are waiting at the end of my ride
CHORUS
Move ‘em on, head ‘em up
Head ‘em up, move ‘em on
Move ‘em on, head ‘em up
Rawhide
Count ‘em out, ride ‘em in,
Ride ‘em in, count ‘em out,
Count ‘em out, ride ‘em in
Rawhide!
Keep movin’, movin’, movin’
Though they’re disapprovin’
Keep them dogies movin’
Rawhide!
Don’t try to understand ‘em
Just rope, throw, and brand ‘em
Soon we’ll be living high and wide.
My hearts calculatin’
My true love will be waitin’,
Be waitin’ at the end of my ride.
Rawhide!
Rawhide!
Hysteria \Hys*te"ri*a\, n. [NL.: cf. F. hyst['e]rie. See
Hysteric.] (Med.)
A nervous affection, occurring almost exclusively in women,
in which the emotional and reflex excitability is
exaggerated, and the will power correspondingly diminished,
so that the patient loses control over the emotions, becomes
the victim of imaginary sensations, and often falls into
paroxism or fits.
[1913 Webster]
Note: The chief symptoms are convulsive, tossing movements of
the limbs and head, uncontrollable crying and laughing,
and a choking sensation as if a ball were lodged in the
throat. The affection presents the most varied
symptoms, often simulating those of the gravest
diseases, but generally curable by mental treatment
alone. Hysteric
Well thank you sir. Glad to be here.
I’m figuring USD will show strength anyway. EU is in far worse shape, Japan never came out of their 90s troubles, and ChiComs will be having themselves social unrest. So, I’d say USD is the ONLY safe haven, socialism on the march notwithstanding.
Tho, my Aussie guys joke that all the currencies will go to parity as we’re all in the same, deep shit.
LMAO....I feel the same way. I woke up my husband! Should we get our money out of the bank? Get our cd’s?
Your friends are more likely prophets than comedians.
Thank you for that... erm... ‘succint’ observation. I’ve been trying to figure out an internet equivalent of a good slap or a cold water cannon, but mere rational thinking has only barely worked so far.
I think the Aussies are too hopeful. The USD will remain a haven. Gold is too heavy for airline travel. ;-]
If that report is accurate, we might well see Austria fail before Ireland.
Which items ? I’d be happy to fill you in.
If the market melts down and the economy spirals into a depression, those CDs won’t be worth rescuing.
I wouldn’t do anything hasty but that’s just me.
Erm, yea, Austrians look pretty toasty. Iceland style.
Nothing he can do about it. You may want to jump in with him and giddy up and go... if you know what I mean. :)
How “fireproof” are they ? How big ?
Don’t think I’ve noticed them there.
Amazing last 30 days of gold. $820 to $955 tonight.
The best thing that could happen is for the bond market to cut OBama and Congress off at the knees. The bond market needs to say “NO MORE”. Taking on all of this debt will be harmful in the long run. And it will be on the backs of all the Children.
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