tag:blogger.com,1999:blog-4921988708619968880.post2753425663272609185..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: November 28 2011: Are we there yet?Ilargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger84125tag:blogger.com,1999:blog-4921988708619968880.post-64890128467186043882011-11-30T18:21:16.919-05:002011-11-30T18:21:16.919-05:00New post up.
Day X
.New post up.<br /><br /><br /><br /><br /><br /><a href="http://theautomaticearth.blogspot.com/2011/11/november-30-2011-day-x.html" rel="nofollow"><b>Day X</b></a><br /><br /><br /><br /><br /><br />.Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-83698597264002276942011-11-30T17:50:24.144-05:002011-11-30T17:50:24.144-05:00Question:
What are the potential unintended conse...Question:<br /><br />What are the potential unintended consequences of the global Fed bailout that might bite the markets in the ass sometime down the road?<br /><br />Surely there must be some.<br /><br />.Joe in NChttps://www.blogger.com/profile/02182396413057310516noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-4831163644559484162011-11-30T17:29:12.675-05:002011-11-30T17:29:12.675-05:00Ash,
As to the "printing" question:
1)...Ash,<br /><br />As to the "printing" question:<br /><br />1) You didn't deal with where the dollars the Fed was swapping with the ECB come from.<br /><br />2) As to where they go to, they go to the European banks, presumably to spend in the USA through their subsidiaries as they see fit.<br /><br />3) The Fed's temporary euros get locked up in the ECB's Fed's accountel gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75169837695357973652011-11-30T16:31:27.242-05:002011-11-30T16:31:27.242-05:00El G,
From the Wikipedia you linked:
"At th...El G,<br /><br />From the Wikipedia you linked:<br /><br /><i>"At the same time, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction that obligates the foreign central bank to buy back its currency on a specified future date at the same exchange rate. <b>The second transaction unwinds the first</b>. At the conclusion of the second Ashhttps://www.blogger.com/profile/10873953851816670692noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-28218197813897490562011-11-30T16:22:58.699-05:002011-11-30T16:22:58.699-05:00So why did we have a 4.33% rally on the S&P500...So why did we have a 4.33% rally on the S&P500 today? Was it the reduced 0.5% rate that the Fed is charging the ECB to swap euros for dollars? Upon second thought, as Herr Ackermann prepares to leave for his undisclosed location palatial fortress, he may have more urgent things to do with those dollars than bet on the USA ponies and prop up the USA stock market. And the borrowing rate on el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-50661137922648079872011-11-30T16:01:18.175-05:002011-11-30T16:01:18.175-05:00I didn't think that Tchir explained things ver...I didn't think that Tchir explained things very well for the central bank scam student novice. The Wikipedia article is pretty good.<br /><br />http://tinyurl.com/6mfc8tk<br /><br />The question still arises, where did the Fed get the "dollars" to stuff in the ECB's pockets? Thin air?<br /><br />This money is then passed on to the ECB client private banks. Presumably most of el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-18357620300790675612011-11-30T15:11:37.006-05:002011-11-30T15:11:37.006-05:00Peter Tchir explains Euro Basis Swaps.
http://www...Peter Tchir explains Euro Basis Swaps.<br /><br />http://www.zerohedge.com/news/euro-basis-swap-perspectives<br /><br />"In normal times, European banks borrow in dollars to fund their US positions. That makes sense. As the banks face pressure on their USD funding rates, they have two choices, they can either pay up to get $’s directly, or they can borrow at home in euro’s and “swap” it intoAshvinhttps://www.blogger.com/profile/00692970226443206815noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-71311314305873793422011-11-30T14:22:25.090-05:002011-11-30T14:22:25.090-05:00Now you know what that meeting was about with Obam...Now you know what that meeting was about with Obama.<br /><br />Change the rules! <br />Make new rules. <br />Make new "tools".<br /><br />The E.U. and the US have vowed not to let the financial system crash. If the financial system crashes then granma will not be able to get a dividend check or withdraw her saving.<br />They won’t let that happen. Must keep the stock market up for jalhttps://www.blogger.com/profile/16969819389823705458noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-51262989200587696502011-11-30T14:17:49.922-05:002011-11-30T14:17:49.922-05:00@TAE Daily: My take on this latest insane and desp...@TAE Daily: My take on this latest insane and desperate action by the central banks: They know it's pretty much over, and they're pulling out this last stop that will just make the consequences much worse in the long haul just so that there can one last kind-of-sort-of normal winter holiday season. [singing off-key]'Tis the season to be folly, ja-la-la-la-la, ja-la-la-la![/SOK]Mister Robotohttps://www.blogger.com/profile/08724938709642010624noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-30682595373940094922011-11-30T13:02:07.785-05:002011-11-30T13:02:07.785-05:00ah, there we are; finally hit the AP-
LONDON (AP)...ah, there we are; finally hit the AP-<br /><br />LONDON (AP) — Paramedics, emergency crews, teachers and even some employees from the prime minister's office took to the streets of Britain for the country's largest strike in decades — drawing attention to government cuts but failing to bring the nation to a standstill.Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-18141835823105911162011-11-30T12:59:00.979-05:002011-11-30T12:59:00.979-05:00WaPo (and nobody else, so far?) deigns to note tha...WaPo (and nobody else, so far?) deigns to note that - 2,000,000 UK public employees are on 24 hour strike today. Re: austerity and retirement renegs.<br /><br />Ho hum!<br /><br />http://tinyurl.com/84jbk7b<br /><br />Did you hear one of the Krasnajarians is pregnant? OMG!Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-30622521973403544242011-11-30T12:46:54.483-05:002011-11-30T12:46:54.483-05:00Where are all them dollars digits that we are send...Where are all them dollars digits that we are sending to Europe coming from? Did they spring full grown, like Athena, from Bill Dudley's head?<br /><br />Schumann<br /><br />Thank you for your report from Germany and your analysis of how this royal screw-up developed. I think that the MofU knew from the beginning that a monetary union without a full political and fiscal union was bound to el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-28216918909805077472011-11-30T12:21:23.790-05:002011-11-30T12:21:23.790-05:00We've been really short on Polka Dot Gallows m...We've been really short on Polka Dot Gallows material for a long time. But this should do it.<br /><br />http://tinyurl.com/cxt7cos<br /><br />I won't explain. That would spoil it. Now here's a company for Cheryl to invest in.Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63338202577027351602011-11-30T11:58:08.886-05:002011-11-30T11:58:08.886-05:00@TAE Daily...I don't grasp what the co-ordinat...@TAE Daily...I don't grasp what the co-ordinated bailout by central banks means. I just notice I am fighting back tears...scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75947275232799567292011-11-30T11:54:31.691-05:002011-11-30T11:54:31.691-05:00I'm finding the behavior of the VIX, the "...I'm finding the behavior of the VIX, the "volatility" index, a tad puzzling. Markets up by the biggest amount/day in months- and the volatility index is down- by the largest amount in months (according to my back-of-the-brain calculation).<br /><br />I checked it, because my gut is telling me; ho; big fat volatility increase here. Which tends to precede a ... what? 6 months ago, Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54591215676773441382011-11-30T11:30:30.707-05:002011-11-30T11:30:30.707-05:00Good thing all of Europe's problems are now fi...Good thing all of Europe's problems are now fixed.<br /><br />Greek 1Y yield = 313%<br /><br />Portugal 2Y = 18.2%<br /><br />Ireland 10Y = 8.2%<br /><br />(all three up 4%+ today)Ashvinhttps://www.blogger.com/profile/00692970226443206815noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5615193375387829282011-11-30T11:28:26.868-05:002011-11-30T11:28:26.868-05:00Wow. An absolutely spectacular object lesson in t...Wow. An absolutely spectacular object lesson in the value of controlling public information. TEPCO announced today; with no attention globally at all, that yes, by golly, all 3 reactors had core meltdowns; and at least one certainly melted through containment.<br /><br />Ho hum. In toto: <br /><br />"TEPCO: Melted fuel ate into containment vessel<br /><br />"The operator of the Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-7109170349845308502011-11-30T10:52:03.053-05:002011-11-30T10:52:03.053-05:00Scroffy: "But you might as well read Orlov...Scroffy: "But you might as well read Orlov's writings about the collapse of the USSR."<br /><br />Actually; I'm having a very interesting and highly relevant read at the moment, from an entirely unexpected direction.<br /><br />Jimmy Carter wrote a novel. Just one. I picked it up at the Salvation Army store, I think; for educational purposes. He's not a terrible writer, Greenpahttps://www.blogger.com/profile/17224906349154302210noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-25952446464564727562011-11-30T09:51:22.006-05:002011-11-30T09:51:22.006-05:00Now just a slightly less short shove away from com...Now just a slightly less short shove away from complete collapse.<br /><br />(Telegraph)<br /><br />"Turning back to this suprise coordinated move by the world's biggest central banks to cut the cost of borrowing in dollars, Jeremy Cook, chief economist at foreign exchange company World First gives his explanation for the move:<br /><br />'Cutting swap costs is the equivalent of Ashvinhttps://www.blogger.com/profile/00692970226443206815noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-17527093071820307302011-11-30T09:44:47.606-05:002011-11-30T09:44:47.606-05:00If we can't raise actual capital, let's us...If we can't raise actual capital, let's use short-term liquidity swaps!<br /><br />http://www.zerohedge.com/news/foreign-currency-liquidity-swaps-aka-global-bail-out-plan-b-faqs<br /><br />"Those wondering about the global Fed bailout (this is not the first time, recall How The Federal Reserve Bailed Out The World) can read the FAQ from none other than the source of the global Ashvinhttps://www.blogger.com/profile/00692970226443206815noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-26149092883933951322011-11-30T07:14:40.983-05:002011-11-30T07:14:40.983-05:00RE Keen / obnoxious interviewer:
The show is call...RE Keen / obnoxious interviewer:<br /><br />The show is called HardTalk. And it's a SHOW. It's ALL a show. She did the same thing with Bass. It's the way the showbiz works.<br /><br />RE Jubilee. Why not talk about perpetuum mobile instead? The discussion would be more animated. Or dunno...time travel?<br /><br />RE General situation. I'm starting to get really really sick seeing p01https://www.blogger.com/profile/04396562841580952642noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-6116590587877869332011-11-30T03:14:50.832-05:002011-11-30T03:14:50.832-05:00Charles Hugh Smith's blog has a two-part artic...Charles Hugh Smith's blog has a two-part article about "debt forgiveness" by Zeus Yiamouyiannis, Ph.D.<br /><br /><a href="http://www.oftwominds.com/blognov11/Zeus-unleashing-future1-11-11.html" rel="nofollow">Unleashing the Future: Advancing Prosperity Through Debt Forgiveness (Part 1) (November 28, 2011) </a><br /><br /><a href="http://www.oftwominds.com/blognov11/Nassimhttps://www.blogger.com/profile/18014132282872515690noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43337990452141920762011-11-29T22:40:06.636-05:002011-11-29T22:40:06.636-05:00This comment has been removed by the author.trojanhorsehttps://www.blogger.com/profile/09588557877904395571noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-58176246639891643542011-11-29T22:37:48.224-05:002011-11-29T22:37:48.224-05:00Chris Martenson-The Collapse Of The Exponential Fu...<a href="http://www.zerohedge.com/news/chris-martenson-lecture-why-next-20-years-will-be-marked-collapse-exponential-function" rel="nofollow">Chris Martenson-The Collapse Of The Exponential Function</a><br /><br />In his presentation he focuses on the so-called three “Es”: Economy, Energy and Environment. He argues that at this point in time it is no longer possible to view either one of those jalhttps://www.blogger.com/profile/16969819389823705458noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-22018643395463967852011-11-29T22:20:47.569-05:002011-11-29T22:20:47.569-05:00So Cameron is promising a return to growth in 6 ye...So Cameron is promising a return to growth in 6 years. Wonder how he worked that out:)scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.com