Beetje onverwacht -want Japan leek logischer- maar China zou best wel eens de achilleshiel kunnen zijn voor het breken van ons fianciele systeem.
Submitted by Tyler Durden on 06/20/2013 – 11:15
A month ago, when stock markets around the globe were hitting all time highs, we wrote “The Bronze Swan Arrives: Is The End Of Copper Financing China’s “Lehman Event”?” which as so often happens, many read, but few appreciated for what it truly was – the end of a major shadow leverage conduit (one involving unlimited rehypothecation at that),and the collapse of a core source of shadow liquidity. One month later, China’s “Lehman event” is on the verge of appearing, and with Overnight repo rates hitting 25% last night, coupled with rumors of bank bailouts rampant, it very well already may have but don’t expect the secretive Chinese politburo and PBOC to disclose it any time soon. So now that the market has finally once again caught up with reality, for the benefit of all those who missed it the first time, here is, once again, a look at the arrival of China’s Bronze Swan.
Submitted by Tyler Durden on 06/20/2013 – 10:26Where’s the buy-the-dip mentality? Yesterday’s collapse triggered yet another Hindenburg Omen – the 7th in the last month) and it appears it is the equity market’s turn for some pain as Treasuries (which initially weak) have stabilized 2-3bps higher in yield. The Dow has lost 15,000 and is down over 200 points today; the S&P 500 is testing back to its 1,600 level; but homebuilders are being battered (as clearly good is now officially bad). The S&P 500 is now the furthest below its 50DMA in 2013 – this is key as it has been critical support all the way up. Gold and Silver have been crushed (and copper and oil are following) this week so far and the USD is up 1.75% so far. Credit markets are being destroyed – investment grade spreads are 10bps wider to 90bps from FOMC.