Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

RED ALERT: FX Dislocation In Process
Market Ticker ^ | 2-16-2009 | Karl Denninger

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.


TOPICS: Business/Economy; Foreign Affairs; Japan; News/Current Events
KEYWORDS: asia; currency; denninger; dollar; economy; tm; yen
Navigation: use the links below to view more comments.
first previous 1-20 ... 41-6061-8081-100 ... 321-325 next last
To: dangermouse
Sorry all...my low, sloping forehead means I have to get too close to the keyboard resulting in my slack jaw allowing drool to spill on to the keyboard, so I only have seconds to type...

As I read, all I am getting is the equivalent of Charlie Brown's teacher talking.

In my language, if I go to Walmart tomorrow with my Visa Check card, a) will it work, and

b) should I buy the underwear and socks I really, really need, or more ammo?

61 posted on 02/16/2009 8:15:23 PM PST by IrishPennant ("We're surrounded...That simplifies our problem.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: jiggyboy

So is 0 really headed for Cheyenne Mountain?


62 posted on 02/16/2009 8:15:37 PM PST by txhurl (ralph)
[ Post Reply | Private Reply | To 43 | View Replies]

To: farlander

How are we extended in swaps?


63 posted on 02/16/2009 8:16:03 PM PST by cmj328 (Filibuster FOCA or lose reelection)
[ Post Reply | Private Reply | To 59 | View Replies]

To: txhurl

Nah, the Stargate is still there.


64 posted on 02/16/2009 8:16:40 PM PST by R_Kangel (`.`)
[ Post Reply | Private Reply | To 62 | View Replies]

To: Diver Dave

Trying to remember the two Dave’s that were knowledgeable on econ the other evening...Are you one of them?


65 posted on 02/16/2009 8:16:49 PM PST by hoosiermama (Berg is a liberal democrat. Keyes is a conservative. Obama is bringing us together already!)
[ Post Reply | Private Reply | To 60 | View Replies]

To: PhiKapMom

I’m not sure what’s going on either, but I’m sure Bush will be blamed.


66 posted on 02/16/2009 8:16:51 PM PST by Azzurri
[ Post Reply | Private Reply | To 10 | View Replies]

To: RaceBannon
We've been talking about that on this thread I started tonight...:

Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks" ( Sept 15,2008)

67 posted on 02/16/2009 8:16:56 PM PST by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
[ Post Reply | Private Reply | To 42 | View Replies]

To: Velveeta
I’m feeling like I should panic - but I don’t know why. ;-)

Twould make a great tagline!.........

68 posted on 02/16/2009 8:17:14 PM PST by Red Badger (Zimbabwe has removed 12 zeroes from its currency. We need to remove ONE from the White House......)
[ Post Reply | Private Reply | To 26 | View Replies]

To: steve86

Thanks for the explanation.


69 posted on 02/16/2009 8:17:18 PM PST by Velveeta
[ Post Reply | Private Reply | To 54 | View Replies]

To: RaceBannon

Thanks! I forgot about that and figured at the time he was talking about Soros and his people. I still say Soros was behind the oil going sky high and our banks tanking to help ZERO. I think Soros bankrolled ZERO’s campaign using small donations to make sure he had more then enough money and why they turned off the security on credit cards.

This Country would be a lot better off if Soros and his games crashed and he lost tons of money on his speculation trying to make the outcome suit his agenda. I think he should be arrested for manipulation and if that is not against the law, it should be.


70 posted on 02/16/2009 8:17:32 PM PST by PhiKapMom ( BOOMER SOONER! Sam Bradford Heisman! LetsGetThisRight.com RED STATE Oklahoma Republican)
[ Post Reply | Private Reply | To 42 | View Replies]

To: IrishPennant

See my 23 and others.

a) Yes it will work.
b) Buy the damn socks. It’s still winter and it’s cold.
c) Stop freaking out whenever someone sees something in the market and puts up a ‘red alert man the canned food and gold stores’.


71 posted on 02/16/2009 8:18:46 PM PST by farlander (Sic Semper Tyrannis)
[ Post Reply | Private Reply | To 61 | View Replies]

To: Velveeta
How does the whole world’s economy tank at the same time? Where’d the money go?

It's disconcerting to say the least.. The "experts" don't even know.
72 posted on 02/16/2009 8:19:37 PM PST by divine_moment_of_facts
[ Post Reply | Private Reply | To 53 | View Replies]

To: txhurl

OK, that post gave me the chills.


73 posted on 02/16/2009 8:19:46 PM PST by Velveeta
[ Post Reply | Private Reply | To 62 | View Replies]

To: PhiKapMom

And that’s only FOREX. There are defaults looming, particularly in Eastern Europe, which is behind the downgrade that is driving the euro down against the dollar. But, Ireland is in bad shape, Spain is in bad shape, South Korea has taken potentially ominous steps, Mexico is in bad shape, Ecuador has already defaulted, on and on ... yes, it’s a mess.

We’re in a bad situation domestically, but the rest of the world appears to be much worse off, at least for now. That’s the upshot, with the dollar situation.


74 posted on 02/16/2009 8:20:40 PM PST by RegulatorCountry
[ Post Reply | Private Reply | To 48 | View Replies]

To: Velveeta

Same here! I usually blame Soros when things like this happen which is probably the only thing I would bet is that he is somehow involved in all of this. This is way over my head for the most part.


75 posted on 02/16/2009 8:20:50 PM PST by PhiKapMom ( BOOMER SOONER! Sam Bradford Heisman! LetsGetThisRight.com RED STATE Oklahoma Republican)
[ Post Reply | Private Reply | To 47 | View Replies]

bookmark


76 posted on 02/16/2009 8:20:59 PM PST by DocRock (All they that TAKE the sword shall perish with the sword. Matthew 26:52 Gun grabbers beware.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: farlander

God Bless you, my friend!!!


77 posted on 02/16/2009 8:21:05 PM PST by IrishPennant ("We're surrounded...That simplifies our problem.")
[ Post Reply | Private Reply | To 71 | View Replies]

To: Red Badger

OK then. ;-)


78 posted on 02/16/2009 8:21:07 PM PST by Velveeta (I'm feeling like I should panic - but I don't know why.)
[ Post Reply | Private Reply | To 68 | View Replies]

To: dangermouse

ping


79 posted on 02/16/2009 8:21:21 PM PST by unkus
[ Post Reply | Private Reply | To 1 | View Replies]

To: FlingWingFlyer

http://www.fxstreet.com/rates-charts/world-currency/

I think this is a hoax, look at the currency changes, if this is up to date, these are not great changes to panic over


80 posted on 02/16/2009 8:21:40 PM PST by RaceBannon (We have sown the wind, but we will reap the whirlwind. NObama. Not my president.)
[ Post Reply | Private Reply | To 56 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 41-6061-8081-100 ... 321-325 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson