Skip to comments.RED ALERT: FX Dislocation In Process
Posted on 02/16/2009 7:47:40 PM PST by dangermouse
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.
I hope I'm wrong; this is going to be a long night.
Will everyone just freaking calm down ? There is nothing extraordinary going on here from the size of the move, AND, the S&P futures looks like they’ve stabilized at only -13 and there seems to be some buying coming in.
Chill people the END is not (quite) neigh.
Thanks, I think. My eyes just glazed over.
How does the whole world’s economy tank at the same time?
Where’d the money go?
One can find ten scholarly articles every day saying that the Dollar(Euro) will Crash(Skyrocket). Take your pick. No one knows what the hell will happen because this global scenario has never been seen before, not even close.
Someone please explain!
What's the likely long-term effect of this short-term dollar run on commodity prices?
Dollar to a donut that Soros is involved.
I'd keep my eyes open for anything that links Soros with the bonds noted above.
I was just going to ask if somehow Soros is involved in all of this -- he has been responsible with his jackals of messing with the markets. Hope this one bites him big time because if it bites Soros, it bites ZERO!
Ok, there IS NO ‘run’. A 150 pip move is not a ‘run’.
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.
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.
God Bless you, my friend!!!
OK then. ;-)
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
Why all the panic “protect yourself” posts on that site?
I read ‘experts’ who say the “toxic mess” is going to crash/unwind this or that and lead to deflation (payoff debt immediately or die!!!)
I read ‘experts’ who say the “toxic mess” is going to crash/unwind this or that and lead to inflation (keep debt and payoff with free dollars or die!!!)
Does anybody have a consistent “if you see this, do this....if you see that, do that” site?!!?!?! =(
I would say Soros being involved is something most of us agree is behind some of this. I think he has been involved with maniupulation of money and the markets for some time to get ZERO elected.
I like your posts the best.
ROFLMAO BIG TIME!!!!!
there isn’t much change here that I see...
Man I was hoping you would come up on this.
Explain this so an old Jarhead can understand it.
However, the global economy is predicated on a.) we buy everybody else's stuff, then b.) they buy stuff from us.
If they can't afford to buy from us, where are we then?
All we can do is wait and watch.
Markets are always such confusing things....
Just type slow so I can follow along.
Hey I’m not panicking either. I don’t know what to make of this, is Poland’s currency collapsing, and what follows from that, I dunno.
Iceland looked like it was going straight from credit cards to canned-goods and shotguns for a couple of days, and after about the fourth day that was the end of that story.
WOW! If I was in the military in Europe, I would be going shopping tomorrow and stocking up with the Euro going down and dollar going up.
How are all of these countries in such bad shape and how did they get there? This did not happen over night and now with that huge deficit we are now facing thanks to ZERO/Pelosi/Reid, we could be in real trouble.
Stupid people who elected ZERO with absolutely ZERO background in governing or making a decision.
someone might be making a run on currency
however, at the links I was posting, I saw almost no changes, up/down .01 to .12 dollar
one was up 16$ though! :)
however, the live charts show what appears to be only $.05 rats of change, with highs and lows only $.50 apart
sounds like a hoax
Any day is a good day to buy ammo!
We’re not all that dependent upon exports, like, say, South Korea, Japan or China are. What they buy from us is treasuries.
Sinclair constantly recommends gold.
Nobody even agrees on exactly what happened in the market 79 years ago much less to be able to predict what happens tomorrow!