Posted on 05/10/2010 5:53:50 AM PDT by blam
Euro Shock-And-Awe Will Create Huge Short Squeeze--Followed By Air Pocket And Market Collapse
Mike "Mish" Shedlock
May. 10, 2010, 8:35 AM
Image: Defenseimagery.mil
To defend the Euro, the ECB now is committed to throw up to $1 trillion at interventions in public and private debt.
What's next? Direct intervention in the stock market?
Bear in mind when this fails (which I guarantee you it will but I cannot state the timeframe), these clowns will think the reason was they did not throw enough firepower at it.
Step back for a second. The problems are too much debt, too much government spending, and a massively unbalanced global economy. None of these actions address any of the fundamental issues.
Short Squeeze Coming
Judging from the action in futures this evening, shorts are going to be forcibly ejected Monday, perhaps for several days.
This will create a huge air pocket underneath. We saw this action once before, in Fannie Mae and financials.
Flashback Wednesday, July 16, 2008: SEC Restricts Shorting 19 Financial Stocks
Big brother has now decided to step in and force the price of all financial stocks up with this SEC short sale order.
So now the SEC is issuing short sale restrictions on financials because Bernanke says it's important for them to rise.
[snip]
Flashback Friday, July 18, 2008: Short Squeeze In Financials Continues
That short squeeze was the beginning of a violent end.
It is a serious mistake to drive shorts from the market. Oh, it can work for a while. In the case of Fannie Mae for a week. Then what?
[snip]
(Excerpt) Read more at businessinsider.com ...
An in-law told me this was happening yestereday. He works for a big time euro banking group (German). He claims things will tank soon and rapid once it gets started.
He also feels Germany will pull back at some point.
mark
Business Insider beats its cataclysm drum yet again. Makes me wonder if they’ve got a financial stake in a lower market.
The German Mark is the currency in Germany (DE, DEU). The German Mark is also known as Deutschmark, and Deutsche Mark. The exchange rate for the German Mark was last updated on May 7, 2010 from The International Monetary Fund. The DEM conversion factor has 6 significant digits.
http://coinmill.com/DEM_EUR.html#DEM=2
hmmmmmmm......the Euro is not long for this world.
Is (t) short for “trolling”?
LOL! Another one who defines trolling as any opinion I disagree with.
While the timeframe is unknown, these attempts to "defend the Euro" are highly likely to hasten its demise."
You’re using a tired act. I dealt with the likes of you back in 2008 during the “debate” over whether we were going into recession or not. See “a guy falls off a 100 story building and passes the 20th story” here http://www.freerepublic.com/focus/f-news/1982775/replies?c=21
Beat me to it.
You can not possibly think this is good economic policy???
Everyone talks their book.
I bet it does seem a tired act to you if you accuse everyone you disagree with of being a troll based on a single post.
I´m really not interested in rooting through your greatest hits page. If you want a pat of the back for being a great guy, go talk to someone who cares.
Nope, I don´t. But I´m equally suspicious of a supposed market watch bulletin that hawks one line, every time.
Don´t tell me, you trying to shore up a short position as well?
Just outing an idiot troll, but I repeat myself.
Here comes Euro-Mae...
From the guy who tries to lecture others on logical fallacies...
I read Mish all the time. He is good.
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