The status quo are going to make their last stand today. The battle will be bloody. The existing social order will be swept away. Will it be today? I don’t know. But it will happen and it will be soon. They have lost control. The debt is strangling the world. There is no way out. It’s us versus them.
Futures Surge Overnight Following Accelerating Central Planning Takeover Of Global Capital Markets
Submitted by Tyler Durden on 08/09/2011 06:36 -0400
Anyone just waking up and noticing futures trading just barely below the closing print may get the impression that things are fine. They are not. Here is what has happened overnight as the global central planning cartel does everything in its power to prevent the global market rout, which has so far wiped out $7.8 trillion in market value around the world, from morphing into the catalyst that end the status quo. To wit: ECB resumes buying Italian and Spanish bonds (UniCredit says the bank is losing a “game of chicken” with lawmakers by not holding out for budget cuts and higher taxes, and may eventually need to print money), the G-20 is prepared to take joint measures to stem a global crisis, Brazilian Finance Minister Guido Mantega said. Greece’s securities regulator banned all short-selling on the Athens exchange for two months starting today. Taiwan’s government bought stocks yesterday and this morning through four funds it controls. South Korea’s regulator asked pension funds, brokerages and asset-management companies to step up efforts to stabilize the market. South Korea also bans short selling for three months starting August 10. And lastly, rumors of an emergency Fed announcement are ripe. So… after all this global cartel intervention, is it any wonder that futures staged a near vertical move up overnight?
DavosSherman says:
These fucking morons slam the power levers to max thrust when they should be deploying the buckets and stomping on the brakes.
Tragicomedy and the laughs on us.
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9th August 2011 at 7:54 am
ncognito says:
More global money printing. It’s a bailout for the rich and inflation for the rest of us.
A global civil war can’t be far off!
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9th August 2011 at 9:31 am
Hope@ZeroKelvin says:
Sauron = Ben Bernanke
The Ring of Power = the printing press of the Fed
Gollum = Obama (twisted and ruined by his desire for power, vicious and untrustworthy)
Orcs = CONgresscritters, all of them
Saruman = Lloyd Blankenfeld, or any bankster CEO
Mordor = Washington DC
Hobbits = Americam middle class
Riders of Rohan = The Tea Party
Gandalf = Ron Paul
Aragon = dunno, we are very short on knights in shining armor
The Elves = Matt Damon in drag, on steroids
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9th August 2011 at 10:06 am
john coster says:
The Tolkien reference is apt. After all, the ring of power granted invisibility. If one thing characterizes
the military/security and financial oligarchies, it is their ability to function secretly. Welcome to Mordor.
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9th August 2011 at 10:12 am
Lark Williams says:
Troll = Rep. Nadler (reason left an exercise for the reader)
Boromir = Newt Gingrich (killed career in lust for power)
Haradrim = Milwaukee youth
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9th August 2011 at 10:18 am
Hope@ZeroKelvin says:
Nazgul = DHS. Chief of the Nazgul is Big Sis
Denethor = Turbo Timmy (gazed into the wrong economic crystal ball and went up in flames)
Pippin = Joe Biden (doesnt do much but great for comic relief)
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9th August 2011 at 10:29 am
Stranger in a strange land says:
The world is changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was is lost, for none now live who remember it. It began with the forging of the Great Rings. Three were given to the Elves, immortal, wisest and fairest of all beings. Seven to the Dwarf lords, great miners and craftsmen of the mountain halls. And nine, nine rings were gifted to the race of men, who, above all else, desire power. But they were, all of them, deceived, for another Ring was made. In the land of Mordor, in the fires of Mount Doom, the Dark Lord Sauron forged in secret a master Ring, to control all others. And into this Ring he poured his cruelty, his malice and his will to dominate all life. One Ring to rule them all.
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9th August 2011 at 10:41 am
Administrator says:
Barry Ritholtz’ view:
Random Thoughts: Recent Trading/Market Activity
By Barry Ritholtz – August 9th, 2011, 7:15AM
Hey, I was out of town for a few days — did I miss anything?
As I plow through my key data points, charts, and valuations, a few items are calling out for clarity. Here is what I am thinking about as I try to contextualize the past 10 days trading action:
• This entire crisis traces itself back in large part to then FOMC chair Alan Greenspan not allowing markets and the economy to flush themselves clean after the dot com collapse. It seems that nearly every Fed/Government policy action has been a response to the problems that error led to.
• European bourses down from 2011 peaks: Greece -43.9%, Italy -34.6%, Germany -25.6%.
• XLF (Financial Select Sector SPDR) has gone nowhere for 18 months. From over $17 to now about ~$12, its given up -29.2% from XLF’s 2011 peak. Perhaps all the bailouts did was temporarily interrupt their reverting to a smaller, more appropriate portion of the economy.
• The S&P500 may stabilize around current levels of 1,120-25. If and when that gets violated, the next logical area to test will be near 1,030 — another 10% down from here.
• Is there any political appetite for QE3 ? There is internal Fed opposition to more intervention. With Gold coming up on $2000, and inflation rising in China, its difficult to see much of a political room for the Fed to manuever here.
• There is a fine line separating savvy contrary thought and a reckless fight with markets. Remember, the crowd is what drives the price action, and you want to ride them until they turn into an unthinking mob.
• The Volatility Index (VIX) at 49 is fairly high. That’s above the Flash Crash levels of 41, but below the 2008 peak of ~80.
• There is a parade of talking heads on TV saying soothing, calming things. This can lend itself to a temporary respite from market madness, but the key word is temporary.
• Are US Banks adequately capitalized? The assumption is yes, but FASB 157 (“historical cost accounting”) makes me wonder about BAC and C.
• The % of issues on the NYSE above their 200 day moving average is now ~10%. Under 20% is where I put together a wish list, and 15% is where I dip a toe in the water. However, October 2008 saw a 2.13% level leading to a bounce and rollover; March 2009 at 3.61% saw a lasting rally.
• Beware the margin clerks! Forced liquidations amongst traders, retail investors and of course leveraged hedge funds will be part of the action following this sell off.
• Amongst the few remaining Housing bulls, the last glimmers of hope for a Housing rebound have likely been dashed.
• It is the job of the investor to spot opportunity and manage risk. In this environment, which do you think they will be emphasizing?
Today’s market action is in large part a reaction to the wildly oversold condition. The assumption is this will be a bounce for days or weeks, than we will see a resumption of the selling until we make a sustainable low.
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9th August 2011 at 11:23 am
Hope@ZeroKelvin says:
Samwise Gamgee = Jim Quinn (a bit of a plodder sometimes, but is the true hero and wins the day through loyalty, common sense and keeping the fellowship on track)
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9th August 2011 at 12:36 pm
Administrator says:
Administrator – I had a head of hair like that at one time. Sigh.
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9th August 2011 at 12:53 pm
Colma Rising says:
Colma Rising= Tom Bombadill (not in the movie).
His own man, not hungry for power…
And not concerned because my lady is waiting.
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9th August 2011 at 1:16 pm
SSS says:
Admin
We suffer the same malady. Maybe that’s why we like Ike so much.
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9th August 2011 at 1:17 pm
Administrator says:
SSS
Were you good at blending in during your spy days?
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9th August 2011 at 1:52 pm
Administrator says:
SSS before finally giving in.
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9th August 2011 at 1:54 pm
matt says:
FOOD WATER SHELTER should be our main focus so we can survive. America grows enough food to sustain it’s population right now. Overthrow the global elite- ALL OF THEM- all politicians, bankers- wall street- the local media- news- radio- television. We need to stop worshiping famous people and get rid of our idols. FOOD WATER SHELTER!
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9th August 2011 at 3:59 pm
SSS says:
Admin
I was very good at blending in. This is the disguise I used when I travelled to the Soviet Union and Gorbachev was in power.
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9th August 2011 at 4:08 pm
KaD says:
Washington DC=Mordor on the Potomac
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9th August 2011 at 5:26 pm
llpoh says:
That is great – shit for brains governments intervening in free market activities. If the stock markets plummet – so what? (Sorry retirees, but that is life). Eventually the markets will drop to a point where it will become cheap. I do not know if that is a 90 percent or a 15 percent drop. But when that happens folks will buy again. Propping up sharemarkets above their true market value is the definition of insane. It will only make the inevitable re-adjustment more painful. it is truly enough to boggle the mind.
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9th August 2011 at 5:58 pm