A Jawbone In The Shorts in [Market-Ticker]

Posted 2012-07-26 07:45
by Karl Denninger
in Market Musings

A Jawbone In The Shorts

What a nice way to start the mourning..... for those who held short overnight.

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” Draghi said in a speech in London today. “And believe me, it will be enough.”

The result was dramatic -- the Euro strengthened almost a full percent against the dollar and the S&P futures reversed an earlier decline to be up 14, or about 1%.

Those who held short positions overnight in the US cash market are looking for a proctologist to remove Draghi from somewhere that should never be used as an "in" door.

Why am I reminded of the 2008 timeframe when all sorts of "policy makers" assured us that they had plenty of tools "within their mandates" to prevent anything really awful from happening....... and then came Lehman?

Discussion below (registration required to post)

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User Info	A Jawbone In The Shorts in forum [Market-Ticker]
Argos Posts: 6337 Incept: 2008-03-23 The Green Mountain State	Draghi goes for gold in London! Speaking of which, he followed-up this bit of bravado by asking about the melt value of Olympic medals. :) Ok then, hotshot, lets see some 3-Year LTROs. 2012-07-26 08:02:24 Permalink
Azusgm Posts: 2423 Incept: 2010-12-02 East Texas	Whew. Thanks for the Ticker, Karl. I saw the jump in gold and thought the Fed might have leaked about another QE. 2012-07-26 08:03:54 Permalink
Soylent Posts: 129 Incept: 2009-08-27	Argos, the last time an olympic gold medal was made of solid gold was in the 1912 summer olympics in Sweden. 2012-07-26 08:58:09 Permalink
Aztrader Posts: 6650 Incept: 2007-09-10 Scottsdale, AZ	Isn't this ahole another GS alumni? 2012-07-26 09:27:56 Permalink
Frat Posts: 1935 Incept: 2009-07-15 NKY	Why does this stink of a desperation play that could be exponentially worse if/when the goosing they got reverses? ---------- We're ***ed. Where's Henry Bowman when you need him? 2012-07-26 09:48:20 From PDA* Permalink
Mannfm11 Posts: 3551 Incept: 2009-02-28 DFW, Tx	This is nothing but organized banker stealing. We would have never seen this quote or heard it if the bankers weren't set up for it to get out. The whole thing is a carnival and Cramer is merely one of its barkers (an example). Market up 200 on lies. They might as well be some skidrow bum trying to bail this out. Who? Germany? Broker than the US. France? Might as well be Mexico. The ECB? Full of crap paper already. One of those guys said lie when necessary. The lies go right down the line. The market is moving and those that are moving it know this is just another series of lies. They are merely moving the bid/asks and passing it on. Anyone thinks these markets move like this on outside pressure, better watch them when they are moving slower. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith 2012-07-26 09:59:49 Permalink
End_the_bubbles Posts: 9523 Incept: 2009-03-25 The New 3rd World	When I started reading Hindenburg and "market crash" stuff on some trading blogs (and here) in the last few days, I knew we'd get a move like this very soon. I had actually expected it yesterday, but AAPL put a damper on it. This is exactly the same bull** that went on in 2008, constantly blowing out shorts who are fundamentally correct, but get ass**d on the perpetual scams.......... ---------- In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters. 2012-07-26 10:02:38 Permalink*
Sean Posts: 1766 Incept: 2009-04-21	I have noticed a pattern in the last 2ish months or so that when officials jawbone or do an actual bailout oil seems to always go up a lot immediately. In the past that correlation never seemed to happen. Am I off base here with my thought? ---------- * I think Ann Barnhardt is more and more right. God help us! * Progressives / Marxists / Communists are many things, STUPID and IMPATIENT are not two of them. * A hot civil war is coming. * And people wonder why I prep! 2012-07-26 10:37:18 Permalink
Mannfm11 Posts: 3551 Incept: 2009-02-28 DFW, Tx	EOB, the guillitine isn't entertaining enough. I think we need lions. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith 2012-07-26 10:37:36 Permalink
End_the_bubbles Posts: 9523 Incept: 2009-03-25 The New 3rd World	Mannfm11 - At this point, I believe I could literally decapitate these people quite easily with a butter knife and my bare hands. ---------- In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters. 2012-07-26 10:51:57 Permalink
Muscleknight Posts: 3993 Incept: 2007-06-26 Columbia, SC	My arrogant friend is all giddy. He told me that Draghi and the ECB are going to buy bonds like BOB did in QE-I and QE-II. ---------- My Financial Avatars - http://s677.photobucket.com/albums/vv131.... A rumor isn't true unt 2012-07-26 10:54:50 Permalink
Steelhead23 Posts: 2043 Incept: 2008-09-09 Portland OR	ZH suggest that it wasn't Hindenburg or the long-term moving average poking above the short-term, it was the fact that Angela Merkel is on holiday giving the markets a few days to bask in Draghi's light. Draghi had better watch his six because if she has to come out of seclusion to bitch slap him, his head would spin like a tilt-a-whirl. And, if he actually does print to purchase Spanish bonds, ho-boy, Germany might just pick up its marbles and go home. That happens and the euro would become toilet paper. But today is a day for the bulls. Enjoy it, for tomorrow its the ring for you! ---------- "Give me control of a nation's money and I care not who makes it's laws" ~~Mayer Amschel Bauer Rothschild~~ Benjamin Bernanke For-profit commercial banks are a menace and should be eradicated 2012-07-26 12:38:57 Permalink
Jonesapple10 Posts: 379 Incept: 2010-11-09	I'm so sick of this back and forth BS! Every week in the headlines its - Europe is doomed...Europe is saved...Europe is doomed... Europe is saved...Markets are up...Markets are down...Markets are up...Markets are down. Maybe this CAN go on forever? For the last five years (ok 55 yrs) it has..what is REALLY different? More debt, more bailouts, more kicking the can. WHERE IS THE ENDGAME???? 2012-07-26 12:43:36 Permalink
Valahian Posts: 21 Incept: 2010-06-10 Chicago	Jones....No ENDGAME. People will always buy and sell stuff. 2012-07-26 14:07:25 Permalink
Jonesapple10 Posts: 379 Incept: 2010-11-09	maybe we'll just go back to trading fur 2012-07-26 14:09:28 Permalink
Captainkidd Posts: 594 Incept: 2010-05-25 Pasadena, Texas	Quote: maybe we'll just go back to trading fur I, personally, am going long on cigarette tobacco and liquor. I believe that these things will of value to those with whom I will be forced to do business in the future. If not, at least I will have something to do to take my own mind off the end of civilization as we know it. ---------- A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford 2012-07-26 15:18:21 Permalink

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