Buying Gold is One Way to Resist Bankster Tyranny
Finally, Please prepare now for the escalating economic and social unrest. Good Day
Having been on a two-week vacation from their Europe-wide buying spree of everything that is red for the day, it would appear that the ECB is back.
As Italian bonds started to accelerate to the downside today, and the
10Y bond touched EUR99, suddenly the yield-rising trend reversed and
nine (count them nine) gappy surges later, BTPs are in the green with
their yields heading back towards the safety of 5% very rapidly. Perhaps
reflecting on the points we have raised before on the CDS markets being a cleaner 'market-reflective' indication of risk
is increasingly important as we note...drum roll please...10Y Italy CDS
are +21bps at 382bps, near the wides of the day as 10Y bond spreads
are now tighter by 2bps and 20bps off their worst levels of the day!
Presented with little comment - except the irony is simply too much to bear as BATS crashes from $15.75 to $0.038 in minutes...perhaps reflecting the WSJ article on HFT abuse and that BATS is being investigated for HFT abuse (ahem) on the day it goes public. We note that there were some trades executed at $0.00! The
reason for the crash apparently is because BATS stock is ony trading
on the BATS exchange, where apparently the APPL halt second before also
happened. Pretty much tells us all we need to know about the stability
of broken market structure. In other news, the stock, and exchange,
have now been renamed BATShit - perhaps the VVIX can trade there next
or something... And they wonder why nobody trades this farce of a market any more.
UPDATE: NANEX data shows ugly stub quote got caught
When the largest market cap company in the world loses 10% of its market cap thanks to a fat finger from a 100-lot retail-momo-monkey (hitting market order not stop?), questioning your sanity (or the sanity of the hedge fund hotel it has become) is perhaps worthwhile. At 10:57, AAPL was halted as Bloomberg noted: *APPLE HALTED AFTER TRADE AT $542.80/SHR for Reason Code T7 (which seems entirely irrelevant) and then reopened at 11:03 with a small loss. Nothing to see here, move along (except the irony of the fact that the trade occurred on BATS which just IPO'd and the SEC investigation in general on HFT/colos).
Six weeks ago when we first
brought the idea of a 'stigma' for accepting LTRO loans, the difference
between credit spreads of unencumbered banks and encumbered banks was a
mere 50bps. Today it has soared higher to post-LTRO record
wides at 100bps as LTRO-facing increasingly-encumbered and
increasingly-subordinated senior unsecured credit spreads blow out to
near mid-February wides. It was mid-February when we called out Draghi for lying
about the 'stigma' - perhaps now the market is realizing he was not
telling the truth, the whole truth, and nothing but the truth as all the
benefits of the LTRO (fixing short-term liquidity issues for the
critical banking system) start to unwind. Whether it is margin
calls from the ECB on falling asset prices or rising cost of funds from a
market-wide recognition of the massive subordination that
just occurred (and will only get worse), we suspect the primary
issuance market for EU banks (especially those who took the loans) will
be closed (or hugely expensive) for a long time to come.
Following last night's post
on the destruction of the positive trend in macro data (as expectations
once again extrapolated to infinity have missed miserably), New Home Sales made it 12 of 14 this morning as they missed horribly.
Against an expectation of a +1.3% gain, new home sales fell 1.6% MoM
but what is even more shocking (and surely in retrospect would have
caused the market to subside aggressively) is the massive revision of
the previous month. From a -0.9% 'modest' fall, January's data was revised to a massive 5.4% drop MoM - the largest drop in 13 months!
This is the largest downward revision since March 2009. Perhaps KB Home
is not the outlier and the 80% rally in the Homebuilder ETF was a
little overdone, eh Bob?
Yesterday,
with all the grace of a permabull in a China propaganda store (aka
CNBC), Rayond James' ever ebullient Jeff Saut tangoed in to tell anyone
clueless enough to listen that stocks are cheap. Oh, and to buy some
firm nobody had ever heard of before called Tangoe. In explaining what
they do, here is what he said: "these people have the greatest and newest software on the planet right now.
Who did they sell it to? To institutions like raymond james. We use
their ordering and billing software and hopefully switch to their
telecommunications software. It's nifty stuff." He also had some great
things to say about Whiting Petroleum. So far so good. What Saut did not
say is that his employer, Raymond James, for whom he works as chief
strategist (which probably means to advise clients to dollar cost
average all the way to $0.00) is an underwriter on not just one but both
companies' secondary equity offerings in process, and that commenting on their growth prospects in a non-banana republic would be not only prohibited but punished (see quiet period).
Well, the people with the "greatest and newest software on the planet"
aren't waiting for the SEC to turn off the porncast. As can be seen
from the following before and after cover pages of Tangoe's S1, Raymond James has just been fired as of this morning, following Saut's rank amateur commentary yesterday.
Somehow
the investing public managed to convince itself that a massive
liquidity flood designed to 'help' banks (implicitly buy sovereign debt)
with their government reacharounds actually 'fixed' the European
economic imbalance problem because yields fell and reflexively this
means all-is-well. Just ask Eastman Kodak shareholders how good it felt
to rally over 100% the week before bankruptcy? Morgan Stanley has the
mother-of-all-chartdecks on the European situation but 3 charts standout
in our view by summarising the problems Europe faces. The last few days have seen Eurosis return - but away from the momentum and liquidity - did it ever really go away?
This time is no different except LTRO 3 is becoming harder and harder
as quality unencumbered collateralizable assets are few and far between -
and with the recent weakness in Spain, how long before ECB margin
calls start to ramp up?
Oil as a commodity has always been a highly valuable early warning indicator of economic instability. Every conceivable element of our financial system depends on the price of energy, from fabrication, to production, to shipping, to the consumer’s very ability to travel and make purchases. High energy prices derail healthy economies and completely decimate systems already on the verge of collapse. Oil affects everything. This is why oil markets also tend to be the most misrepresented in the mainstream financial media. With so much at stake over the price of petroleum, and the cost steadily climbing over the past year returning to disastrous levels last seen in 2008, the American public will soon be looking for someone to blame, and you can bet the MSM will do its utmost to ensure that blame is focused in the wrong direction. While there are, indeed, multiple reasons for the current high costs of oil, the primary culprits are obscured by considerable disinformation… The most prominent but false conclusions on the expanding value of oil are centered on assertions that supply is decreasing dramatically, while demand is increasing dramatically. Neither of these claims is true…
Well
that didn't take long. New Greek bonds (GGB2) have dropped
dramatically in the last 2 days. The 2023 bond has fallen from over
EUR29.5 on Wednesday to under EUR25.5 this morning, prices have dropped
an incredible 14% and down a painful 17.5% from its opening break highs of just 2 weeks ago. Yields have broken back above 20%
for the first time for this new 10Y as it appears reality is sinking in
that Greek Bailout III will come sooner rather than later. Eurosis is
back.
I'm PayPal Verified
03/23/2012 - 07:16
Bill Black on the MF Global Financial Collapse and Aftermath - Obama's Hurricane Katrina
The media looked at, speculators, supply,
and politicians as to why gas prices are rapidly increasing; however,
they do not seem to give a solid reason. Gee… Could it be the falling
apparent value of the dollar?
Next…
Goldman Scans Internal Emails for ‘Muppet’
http://www.cnbc.com
http://www.bloomberg.com
http://www.guardian.co.uk
Goldman Scans Internal Emails for ‘Muppet’
http://www.cnbc.com
http://www.bloomberg.com
http://www.guardian.co.uk
Goldman Sachs executives are scurrying,
like rats, to cover their backsides after the public revelation about
their bank from a former insider. They claim to be taking the
publicized claims seriously as they search for any evidence that
employees referred to clients in derogatory ways. Of course, be ready
for statements that any real evidence was hacked, mysteriously
disappeared, or was destroyed. Goldman Sachs is not known for ethics
and morality folks.
Next…
10 Signs That America Is On The Verge Of A Horrible Municipal Debt Crisis
http://endoftheamericandream.com
10 Signs That America Is On The Verge Of A Horrible Municipal Debt Crisis
http://endoftheamericandream.com
Here are a few…
1. Moody’s has downgraded Detroit’s $553 million debt again to Ba3, or essentially junk status.
2. The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings.
3. Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history at $4.3 billion.
1. Moody’s has downgraded Detroit’s $553 million debt again to Ba3, or essentially junk status.
2. The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings.
3. Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history at $4.3 billion.
Here we go again on the fear mongering
folks. Authorities have interviewed at least 13 people since 2005 with
ties to Iran’s government who were seen taking pictures of New York
City. Gee, now why would anyone come to New York and take photo’s?
Give me a break! Millions of people come to New York City every year
and take millions of photos. Guess, they are terrorists too.
Monsanto has been systematically blocking
research into the toxic affects of their pet chemicals, as well as
attacking scientists who dare to speak out. Well, despite their
modified food crops can cause damage to human kidney cells. It may be
time to get those massive civil, and criminal, lawsuits against Monsanto
going folks!
Next…
SILVER is The Achilles’ Heel to the ENTIRE ECONOMIC SYSTEM
http://www.youtube.com/
http://www.youtube.com/
http://thedailygold.com/
SILVER is The Achilles’ Heel to the ENTIRE ECONOMIC SYSTEM
http://www.youtube.com/
http://www.youtube.com/
http://thedailygold.com/
Please watch this video on how physical
silver is going to eventually crush the manipulated central banks, like
the Federal Reserve. More and more people are becoming aware of how
storing physical silver is not only maintaining their wealth, but
actually increasing it without the need of empty promises of interest.
As an indicator, precious metals appear to be decoupling from the stock
market. In short, keep stacking!
Next…
Feeding The Homeless BANNED In Major Cities All Over America
http://theeconomiccollapseblog.com
Feeding The Homeless BANNED In Major Cities All Over America
http://theeconomiccollapseblog.com
Philadelphia, the so-called city of
brotherly love, is one of many cities across the U.S. that bans feeding
the homeless in some form. It appears that common sense and humanity has
gone out the window in the U.S.. As the economic collapse
accelerates, homeless families are going to become more aggressive.
I Am Very Pessimistic About The US Stock Market
Admin at Jim Rogers Blog - 2 hours ago
Related, SPDR S&P 500 ETF (SPY), ProShares UltraShort S&P500 ETF (SDS),
iShares Russell 2000 Index ETF (IWM)
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
The Prospects For Stocks Are Not Particularly Good
Admin at Marc Faber Blog - 3 hours ago
We (the stock market) are fairly valued if you take current earnings. But
the problem is that maybe earnings are inflated and that earnings will
decline.
So maybe the prospects for stocks are not particularly good. - *in The
Perils of Money Printings Unintended Consequences*
*Related, iShares Russell 2000 Index (ETF)(NYSEARCA:IWM), PowerShares QQQ
Trust, ETF (QQQ)*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
I Am Short Emerging Market Stocks
Admin at Jim Rogers Blog - 3 hours ago
Right now I’m short emerging market stocks as a potential hedge (against
commodities). - *in CNBC*
*Related, iShares MSCI Emerging Markets Index ETF (EEM), iShares MSCI
Brazil Index ETF (EWZ)*
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
Bailout worries see Spanish bond yields rise
Eric De Groot at Eric De Groot - 3 hours ago
Does anyone else recognize the perpetual (bailout) cycle here? The solution
is called infinite liquidity through debt issuance and printing currency.
Liquidity is lifting all boats - stocks, bonds, precious metals, and
commodities. Just like it has down throughout history. Headline: Bailout
worries see Spanish bond yields rise MADRID (AP) -- Spain's borrowing rates
continue to rise as...
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content, and more! ]]
Taibbi: Gangster Banks Keep Winning Public Debt Business - Surprised By Joy
BATS Exchange Declares Self-Help Against... Itself
SkyNet is now sentient, and has commenced rebelling against its creator, following the BATS exchange announcement of self help against.... Itself.- BATS BYX Exchange has declared self-help against BATS BZX
- March 23, 2012 11:07:25 ET
-
BATS BYX Exchange has declared self-help against BATS BZX
per Rule 611 of Regulation NMS. Routing to BATS BZX has been suspended
as of 11:07:04 ET.
Is The ECB BTP Buying Spree Back?
Having been on a two-week vacation from their Europe-wide buying spree of everything that is red for the day, it would appear that the ECB is back.
As Italian bonds started to accelerate to the downside today, and the
10Y bond touched EUR99, suddenly the yield-rising trend reversed and
nine (count them nine) gappy surges later, BTPs are in the green with
their yields heading back towards the safety of 5% very rapidly. Perhaps
reflecting on the points we have raised before on the CDS markets being a cleaner 'market-reflective' indication of risk
is increasingly important as we note...drum roll please...10Y Italy CDS
are +21bps at 382bps, near the wides of the day as 10Y bond spreads
are now tighter by 2bps and 20bps off their worst levels of the day!SkyNet Is Now Cannibalizing Itself: BATS IPO Flash Crashes
Presented with little comment - except the irony is simply too much to bear as BATS crashes from $15.75 to $0.038 in minutes...perhaps reflecting the WSJ article on HFT abuse and that BATS is being investigated for HFT abuse (ahem) on the day it goes public. We note that there were some trades executed at $0.00! The
reason for the crash apparently is because BATS stock is ony trading
on the BATS exchange, where apparently the APPL halt second before also
happened. Pretty much tells us all we need to know about the stability
of broken market structure. In other news, the stock, and exchange,
have now been renamed BATShit - perhaps the VVIX can trade there next
or something... And they wonder why nobody trades this farce of a market any more.Fat Finger Halts, Unhalts AAPL Shares Which Hit $542.80
UPDATE: NANEX data shows ugly stub quote got caught
When the largest market cap company in the world loses 10% of its market cap thanks to a fat finger from a 100-lot retail-momo-monkey (hitting market order not stop?), questioning your sanity (or the sanity of the hedge fund hotel it has become) is perhaps worthwhile. At 10:57, AAPL was halted as Bloomberg noted: *APPLE HALTED AFTER TRADE AT $542.80/SHR for Reason Code T7 (which seems entirely irrelevant) and then reopened at 11:03 with a small loss. Nothing to see here, move along (except the irony of the fact that the trade occurred on BATS which just IPO'd and the SEC investigation in general on HFT/colos).
LTRO Stigma Reaches All-Time High
Six weeks ago when we first
brought the idea of a 'stigma' for accepting LTRO loans, the difference
between credit spreads of unencumbered banks and encumbered banks was a
mere 50bps. Today it has soared higher to post-LTRO record
wides at 100bps as LTRO-facing increasingly-encumbered and
increasingly-subordinated senior unsecured credit spreads blow out to
near mid-February wides. It was mid-February when we called out Draghi for lying
about the 'stigma' - perhaps now the market is realizing he was not
telling the truth, the whole truth, and nothing but the truth as all the
benefits of the LTRO (fixing short-term liquidity issues for the
critical banking system) start to unwind. Whether it is margin
calls from the ECB on falling asset prices or rising cost of funds from a
market-wide recognition of the massive subordination that
just occurred (and will only get worse), we suspect the primary
issuance market for EU banks (especially those who took the loans) will
be closed (or hugely expensive) for a long time to come.Japan Readies PAC-3 And AEGIS SAM Countermeasures As North Korea Missile Launch Prep Enters Final Stage
Moments ago Japan's Kyodo reported that the upcoming North Korean missile launch has entered a "full-fledged state of action." While not immediately clear what this means, it is not all that surprising: after all this is precisely what Un has said he would do, and so he will. What is more important is that according to VOA Japan is now actively preparing for "countermeasures" and is "preparing for contingencies" should the missile veer off course. Because if Fukushima taught us something is that gusts of wind around Japan always somehow point toward Tokyo. To wit: "The Japanese parliament has approved a resolution condemning North Korea's planned missile launch, and the country is also preparing contingencies should the missile veer off course and pose a threat to Japan. Speaking in Tokyo Friday, Defense Minister Naoki Tanaka said the Japanese military will be prepared for any eventuality. Tanaka says he is ordering officials to prepare deployment of PAC-3 surface-to-air missiles and Aegis destroyers carrying a state-of-the-art anti-missile system that could attempt to shoot down the rocket." Of course, by the time the shooting is over, ES will be at least limit up: consider the upside GDP potential resulting from rebuilding the world in the aftermath of armageddon.New Home Sales Make It 12 Out Of 14 Economic Misses
Following last night's post
on the destruction of the positive trend in macro data (as expectations
once again extrapolated to infinity have missed miserably), New Home Sales made it 12 of 14 this morning as they missed horribly.
Against an expectation of a +1.3% gain, new home sales fell 1.6% MoM
but what is even more shocking (and surely in retrospect would have
caused the market to subside aggressively) is the massive revision of
the previous month. From a -0.9% 'modest' fall, January's data was revised to a massive 5.4% drop MoM - the largest drop in 13 months!
This is the largest downward revision since March 2009. Perhaps KB Home
is not the outlier and the 80% rally in the Homebuilder ETF was a
little overdone, eh Bob?Jeff Saut's Permabullishness Just Cost Raymond James Hundreds Of Thousands In Lost Revenue
Yesterday,
with all the grace of a permabull in a China propaganda store (aka
CNBC), Rayond James' ever ebullient Jeff Saut tangoed in to tell anyone
clueless enough to listen that stocks are cheap. Oh, and to buy some
firm nobody had ever heard of before called Tangoe. In explaining what
they do, here is what he said: "these people have the greatest and newest software on the planet right now.
Who did they sell it to? To institutions like raymond james. We use
their ordering and billing software and hopefully switch to their
telecommunications software. It's nifty stuff." He also had some great
things to say about Whiting Petroleum. So far so good. What Saut did not
say is that his employer, Raymond James, for whom he works as chief
strategist (which probably means to advise clients to dollar cost
average all the way to $0.00) is an underwriter on not just one but both
companies' secondary equity offerings in process, and that commenting on their growth prospects in a non-banana republic would be not only prohibited but punished (see quiet period).
Well, the people with the "greatest and newest software on the planet"
aren't waiting for the SEC to turn off the porncast. As can be seen
from the following before and after cover pages of Tangoe's S1, Raymond James has just been fired as of this morning, following Saut's rank amateur commentary yesterday.3 Charts On Why Eurosis Never Really Went Away
Somehow
the investing public managed to convince itself that a massive
liquidity flood designed to 'help' banks (implicitly buy sovereign debt)
with their government reacharounds actually 'fixed' the European
economic imbalance problem because yields fell and reflexively this
means all-is-well. Just ask Eastman Kodak shareholders how good it felt
to rally over 100% the week before bankruptcy? Morgan Stanley has the
mother-of-all-chartdecks on the European situation but 3 charts standout
in our view by summarising the problems Europe faces. The last few days have seen Eurosis return - but away from the momentum and liquidity - did it ever really go away?
This time is no different except LTRO 3 is becoming harder and harder
as quality unencumbered collateralizable assets are few and far between -
and with the recent weakness in Spain, how long before ECB margin
calls start to ramp up?The Oil Conundrum Explained
Oil as a commodity has always been a highly valuable early warning indicator of economic instability. Every conceivable element of our financial system depends on the price of energy, from fabrication, to production, to shipping, to the consumer’s very ability to travel and make purchases. High energy prices derail healthy economies and completely decimate systems already on the verge of collapse. Oil affects everything. This is why oil markets also tend to be the most misrepresented in the mainstream financial media. With so much at stake over the price of petroleum, and the cost steadily climbing over the past year returning to disastrous levels last seen in 2008, the American public will soon be looking for someone to blame, and you can bet the MSM will do its utmost to ensure that blame is focused in the wrong direction. While there are, indeed, multiple reasons for the current high costs of oil, the primary culprits are obscured by considerable disinformation… The most prominent but false conclusions on the expanding value of oil are centered on assertions that supply is decreasing dramatically, while demand is increasing dramatically. Neither of these claims is true…
Eurosis Is Back As "New" Greek Bonds Break 20%, Slide 14% In 2 Days
Well
that didn't take long. New Greek bonds (GGB2) have dropped
dramatically in the last 2 days. The 2023 bond has fallen from over
EUR29.5 on Wednesday to under EUR25.5 this morning, prices have dropped
an incredible 14% and down a painful 17.5% from its opening break highs of just 2 weeks ago. Yields have broken back above 20%
for the first time for this new 10Y as it appears reality is sinking in
that Greek Bailout III will come sooner rather than later. Eurosis is
back.Gold in Q2 +15% To $1,850/oz On Inflation and Currency Debasement - BARCAP
BarCap said it expects precious metals to be one of the commodity price leaders in the second quarter, citing the "resumption of the kind of currency debasement/inflation concerns that have been the big driver of gold and silver prices over the past 12 months". It recommended that investors take a long position in December 2012 palladium, saying lower Russian exports should push the market into a supply deficit and bring prices "significantly above current levels" by later this year. BarCap put a second-quarter price of $745 per ounce for palladium futures on the London Metal Exchange, versus the past four weeks' average of $701. Spot palladium on the LME hit a session bottom below $645 on Thursday.Selloff Resumes As "Risk Off" Sentiment Refuses To Leave
Yesterday we discussed extensively how the narrative of US decoupling, which has so far trumped everything else, is finally fading, is coming to an abrupt end, and with no other "plotline" to take its place, as China, Europe and corporate profits are all in the dumps, the only option is for more easy money to come soon. However, with crude sticky this will be a problem in an election year. Today, this sentiment has become even more acute as new Greek 2023 bonds have for the first time trade over 20%, with weakness spreading to all the other PIIGS, and talk of yet another LTRO already picking up pace. The question of what if any assets European banks is luckily ignored for now. So as futures turned red once more, here is Bank of America summarizing the bearish market sentiment this morning.Daily US Opening News And Market Re-Cap: March 23
European cash equity markets were seen on a slight upward trend in the early hours of the session amid some rumours that the Chinese PBOC were considering a cut to their RRR. However, this failed to materialise and markets have now retreated into negative territory with flows seen moving into fixed income securities. This follows some market talk of selling in Greek PSI bonds due to the absence of CDSs. This sparked some renewed concern regarding the emergence of Greece from their recovery. Elsewhere, we saw the publication of the BoE’s financial stability review recommending that UK banks raise external capital as soon as possible. This saw risk-averse flows into the gilt, with futures now trading up around 40 ticks.Spanish Bond Yields - Who's A "Natural" Buyer Of The 10 Year
There are relatively few natural buyers of Spanish long dated bonds here. Fast money is likely caught long, and it will take a potentially reluctant ECB and some already overly exposed Spanish institutions to step up and stop the slide. It may happen, but many of the policies that “bailed out” Greece created very bad precedents for bondholders, and some of those are coming home to roost, as is the understanding that LTRO ensures that banks can access liquidity, but does nothing to fix any problem at the sovereign level.Our new sponsors were chosen to help you prepare for the coming global financial collapse...If you wait until TSHTF (the shi! hits the fan) it will be too late...
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