ES -- DX/CL -- isee -- cboe put/call -- specialist/public short ratio -- trinq -- trin -- aaii bull ratio -- abx -- cmbx -- cdx -- vxo p&f -- SPX volatility curve -- VIX:VXO skew -- commodity screen -- cot -- conference board

Tuesday, September 16, 2008

 

money market crash


per the ft overnight:

OVERNIGHT DOLLAR LIBOR FIXED AT 6.43750 PCT VS 3.106
OVERNIGHT EURO LIBOR FIXED AT 4.41750 PCT VS 4.49375
OVERNIGHT STERLING LIBOR FIXED AT 6.79375 PCT VS 5.4

THREE-MONTH DOLLAR LIBOR FIXED AT 2.87625 PCT VS 2.8
THREE-MONTH STERLING LIBOR FIXED AT 5.79125 PCT VS 5
THREE-MONTH EURO LIBOR FIXED AT 4.96625 PCT VS 4.965


more from john jansen.

I said in my morning opening that it would take a cataclysm to force action from the FOMC today. This is a cataclysm . They will need to come up with something very novel to get out of this fix.


disaster pricing. with AIG circling the drain -- and washington mutual soon to follow -- we could be down the limit today, 1929-style. AIG, as yves smith notes, is to the credit default swap market bear stearns times three.

i have to say -- the charts i see are setting up what may be a powerful bounce. up 4% or down 10%? i don't know.

UPDATE: michael lewitt in the new york times on AIG:

Its collapse would be as close to an extinction-level event as the financial markets have seen since the Great Depression.

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gm - wanted to make sure you caught this one:

[excerpt] On Sunday, a rare emergency trading session opened to allow Wall Street dealers in the $455 trillion derivatives market to reduce their exposure to a potential bankruptcy filing by Lehman.

web page:
http://economictimes.indiatimes.com/News/International_Business/Pimcos_Gross_sees_tsunami_of_risk_if_Lehman_fails/rssarticleshow/3483514.cms

again, holy krap.

 
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i did see that on sunday, dc. gross subsequently commented that liquidity in the session was nil and less than $1bn actually moved.

at least yesterday there apparently was considerable trading in CDS. the fear -- perhaps to materialize in an AIG event -- would be that the market would simply quit trading.

 
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$1b moved out of $455t? beautiful.

thanks for making me laugh with that juicy update.

on the other hand, laughter ain't the best medicine if it's painful, eh?

 
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lol -- maybe not, dc.

here's a big rally, though. i have to keep repeating to myself that markets are very oversold and due to bounce. if there's any kind of resolution with AIG, it could touch off a furious rally.

 
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amen to that, gm.

what a ride!

 
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