#1
8:17 CT

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.

Unfortunately.

I hope I'm wrong; this is going to be a long night.

Source: http://market-ticker.denninger.net/archives/801-RED-ALERT-FX-Dislocation-In-Process.html

Thoughts?
Last edited by ThyHorrorCosmic at Feb 17, 2009,
#2
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#3
Im from Eastern-Europe, my countrys economy can easily killed by a little breeze of air.
I haven't heard any news about this by the time im writing this, but i heard some disappointing news from England.

Is that true that the mother****ers don't let the people to make photographs about cops and stuff? Like, there is a protest against the government, the cops go there and beat everyone and you can't make photographic evidence of the "event"?
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#5
Quote by skaterskagg1
sum it up for me as if i was 8 years old.


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.


Is that so long?
#6
We're all fucked.
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#7
Quote by ThyHorrorCosmic
Is that so long?

He's talking about putting it in simpler terms.
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#9
Quote by ThyHorrorCosmic
Is that so long?


Length isn't the problem dumbass, complexity is.
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#10
There's a little thing I like to say about this recession: the media makes it worse. Please, do not go buy a gun and loads of canned good; the world will not fall apart.
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Quote by humperdunk
one time i let my cat has cheezburger. i thought it was pretty funny.
#11
Im definitely wary about this source.

Mass hysteria ftl.
"The future's uncertain, and The End is always near."
-Jim Morrison
#13
A quick Google News peek reveals nothing of this severity.
I <3 bangoodcharlotte

Quote by humperdunk
one time i let my cat has cheezburger. i thought it was pretty funny.
#14
Quote by RU Experienced?
No News coverage at the present?

I call BS.

Yeah, I was just about to post that.

I'm not saying this is 100% false, but I'm very skeptical.
Voted 3rd Friendliest User of UG 2010

BUILD A TIME MACHINE, AND JERK OFF IN IT, AND SEND IT TO HITLER!


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#15
Quote by fallenangel20
Yeah, I was just about to post that.

I'm not saying this is 100% false, but I'm very skeptical.

I ain't buying it as of now. You can all hold me responsible if I'm wrong by tomorrow.