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.
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?
So is 0 really headed for Cheyenne Mountain?
How are we extended in swaps?
Nah, the Stargate is still there.
Trying to remember the two Dave’s that were knowledgeable on econ the other evening...Are you one of them?
I’m not sure what’s going on either, but I’m sure Bush will be blamed.
Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks" ( Sept 15,2008)
Twould make a great tagline!.........
Thanks for the explanation.
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.
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’.
OK, that post gave me the chills.
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.
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.
bookmark
God Bless you, my friend!!!
OK then. ;-)
ping
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
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