Goldman Advises Outright Short on 5 Year Treasury With 2.3% Target Or Vampire Squid Vs Pimco?

Submitted by Tyler Durden on 03/18/2011 15:18 -0400

Goldman appears to be in full freak out mode today. After the bank had been positioned for a smooth, low-vol economic reflation mode, complete with long stock and short bond exposure, the recent volatility has blown up Goldman's trades right in its face. Earlier we noted that the FX desk advised on a long EURUSD trade with a 1.50 target following the surge in FX vole. And while it is unclear if the jump in vol across all risk assets is enough to cripple the bank like it did in May 2010 when Goldman disclosed massive trading losses on its variance swap trade, the bank appears to have suffered some major damage on its treasury curve exposure following the recent tightening. As a result Francesco Garzarelli has just released a trade update, advising clients to go short the 5 Year at 1.936% with a 2.30% target and a stop at 1.80%. As usual, since that would mean Goldman is now accumulating 5 Year inventory, it appears we will soon have a rather dramatic duel between the two biggest Wall Street titans: PIMCO and Goldman, at least as pertains to their outlook on rates.

 

Dollar Takes Out 2010 Lows, 2011 S&P Now Down 2.3% In Dollar Purchasing Power-Adjusted Terms

Submitted by Tyler Durden on 03/18/2011 13:19 -0400

The DXY has just breached the support from 2010 lows. Ben Bernanke's stealth plan to inflate the debt is working. In other news, the dollar is now one lap ahead of everyone in the devaluation race. On a real, not nominal, basis the S&P is now down 2.3% expressed in constant dollar purchasing power terms. 

 

 

 

 

As Gold Surges By $30 In Two Days, Dollar 3 Ticks Away From 2010 Lows

Submitted by Tyler Durden on 03/18/2011 12:56 -0400

The good old old green 75% cotton/25% linen combination formerly known as the reserve currency continues shocking everybody with just how worthless it is, because even as the dollar jumped against the Yen, it plunged against the euro, and in the DXY basket the Euro weighting is about 4 times greater than the Yen. Meaning today the dollar will likely take out 2010 lows, and after that 2009, 2008 and so forth. Furthermore, the DXY has plunged in the past two days, just in time to completely neutralize any nominal increase in stocks values. In the meantime, that other hated metal, gold has risen by $30 in the past two days, reminding once again that until the Fed build an alchemist annex it will continue to be the only true store of wealth (and, yes, only true currency).

QE3 May Be ‘Unavoidable Fact of Life’: Strategist

posted by Eric De Groot at Eric De Groot - 1 hour ago

The function would be defined as QE(n) for those familiar with the nomenclature of calculus. The US Federal Reserve may have no choice but to introduce a third round of quantitative easing, or QE3, in ligh...

 

 

 

Discovery That Indian Point Nuke Is Most Exposed To Quake Risk Prompts Reuters To Release An Evacuation Map

Submitted by Tyler Durden on 03/18/2011 12:12 -0400

According to a recent report from the Nuclear Regulatory Commission the California Diablo Canyon nuclear power plant (built in proximity to the San Andreas fault) which everyone always points to as the biggest earthquake risk in the US, is actually ranked 9th in the US in terms of earthquake risk (we somehow really doubt this). The top one? The same we wrote about yesterday as having had a leaking seal for the past 18 years according to the Union of Concerned Scientists - Indian Point in Buchanan, NY. Of course its proximity to New York City has immediately stirred cries of concern from the world's most banksterous city and demands for a shutdown by Andrew Cuomo. It has also prompted Reuters to release an evacuation map of the surroundings should "something" go wrong with Indian Point, an event which will likely only further instill a sense of soothing calmness and a "tranquility effect" in the New Yorker community.

TEPCO Director Weeps After Disclosing Truth About Fukushima Disaster

Submitted by Tyler Durden on 03/18/2011 14:13 -0400

The Daily Mail has released a dramatic picture showing the emotional exhaustion of TEPCO managing director Akoi Komiri who is openly weeping as he leaves a conference to brief journalists on the true situation at Fukushima, following his acknowledgment that the radiation spewing from the over-heating reactors and fuel rods was enough to kill some citizens. "A senior Japanese minister also admitted that the country was overwhelmed by the scale of the tsunami and nuclear crisis. He said officials should have admitted earlier how serious the radiation leaks were. Chief Cabinet Secretary Yukio Edano said: 'The unprecedented scale of the earthquake and tsunami that struck Japan, frankly speaking, were among many things that happened that had not been anticipated under our disaster management contingency plans." This is precisely as Zero Hedge had expected would happen all along, following our recurring allegations of a massive cover up by the Japanese government. And furthermore as we predicted a week ago when we said that continued government lies and subversions would make the situation untenable once the population loses faith in the government, this is precisely what has happened.

Watch Nobel Peace Prize Winner Obama Address Nation Over Imminent Libya Invasion aka "Operation Wealth Effect"

Submitted by Tyler Durden on 03/18/2011 14:12 -0400

The glorious president who has taken some time off from his extremely busy Ipanema tour schedule, is addressing the nation over the latest developments in Libya. Watch the prepared remarks being teleprompted live here. 

 

 

 

 

 

 

Nigel Farage Blasts Eurocomission President Van Rompuy For Cozying With Gaddafi As Recently As December

Submitted by Tyler Durden on 03/18/2011 15:47 -0400

That our politicians are unbearable hypocrites without borders is no secret. After all, Gaddafi himself was among Europe's best arms clients for a long time having to recycle billions of petrodollars into something tangible. It is these very same politicians (wink wink Bunga Bunga) that are now blasting him, and offering their airbases to launch offensive campaigns from. One person who however never misses an opportunity to expose each and every form of hypocrisy is Nigel Farage who takes Gollum-lookalike and European Council president Herman van Rompuy to the toolshed and anihilates him for his sycophantic attempts to appear larger than life by pandering to none other than now uber-despised dictator Colonel Gaddafi. And naturally he does it in his own very inimitable and always highly entertaining and humiliating style. We can't wait to see what haiku the Gollumite will tweet out in response...