Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

Central banks are preparing for coordinated action to provide liquidity if needed following this...

  • Thursday, June 14, 2012, 3:09 PM ET
    Central banks are preparing for coordinated action to provide liquidity if needed following this weekend's Greek elections, according to G-20 sources. Markets are flying.
Track new comments on this story

This news story has 46 comments:

  • This is ridiculous!
    This market is insane!
    And we are going to get QE?
    BUFFALO CHIPS!
    Short covering and getting ready to redeploy!
    Garbage in garbage out!
    14 Jun 2012, 03:12 PM Reply Like
  • LMAO at the doomers and zerohedge!!!


    Where is the hyperinflation? Where is the collapse? Hahahahahahahahahahah!...
    14 Jun 2012, 03:46 PM Reply Like
  • I suspect you'll find Deflation just has hilarious.
    14 Jun 2012, 03:47 PM Reply Like
  • How is gold doing compared to bonds???? Eh?

    US bonds kicking the as$ of a the piece of trash gold this year....
    14 Jun 2012, 03:55 PM Reply Like
  • Yes, zerohedge is to blame. Blaming the messenger is always the best way to solve the problem.
    14 Jun 2012, 04:00 PM Reply Like
  • Zerohedge...no one cares what Zerohedge says, it is just a blog for lunatics right wingers.
    14 Jun 2012, 04:02 PM Reply Like
  • And your bonds ..... have they returned 10% per year like gold since 1971? Geeze.....I don't know if there is a Government bond in the US that ever had a 10% coupon.
    14 Jun 2012, 04:09 PM Reply Like
  • This is all deflationary as in DEPRESSION!
    Why else would Bernanke gamble with QE garbage if he was not pissing his pants over deflation!
    This is the endgame folks and god help us,
    nothing to laugh at!
    14 Jun 2012, 04:15 PM Reply Like
  • As opposed to you and your O.W.S. George Soros communist anarchists?
    14 Jun 2012, 04:16 PM Reply Like
  • The concept of rising interest rates is one we are all familiar with. In fact the Fed and Treasury are blamed routinely for using this concept as a way to "inflate away debt".

    The concept of falling interest rates gets much less scrutiny - particulary the effect of faling interest rates on debt holders. Just as inflation makes existing debt easier to pay, deflation makes existing debt harder to pay. It may be counter-intuitive, but it really works that way. And all debt holders suffer under the burder of "fixed" debt payments as wages fall, GDP flattens or falls, etc.

    The end result of delfation is destruction of businesses and capital. So you may "think" that lower interest rates will raise the selling price of debt. But the question will ultimately be....will the debtor be able to pay the debt back. Consider the EU situation today. Bank bondholders are getting wiped out.
    14 Jun 2012, 04:41 PM Reply Like
  • Micro econ 101. cost of capital. The lower the cost of capital the more projects become feasible. Lower interest rates promotes business.
    14 Jun 2012, 04:55 PM Reply Like
  • Umm yes, treasuries yielded nearly 15% in the early 1980s. 15% annual returns with zero risk. You might want to do some research.
    14 Jun 2012, 06:32 PM Reply Like
  • I realize that yields were high during that time, but were COUPONS high, or did they sell at a discount to PAR?
    14 Jun 2012, 07:05 PM Reply Like
  • Hendershott that is great when people can buy a companies product or services. Then with proper management the company pays off loans in a timely fashion. Then the lenders can make more loans that make sense.
    15 Jun 2012, 01:22 AM Reply Like
  • But Herdershott misses the point of my post. While the other competitors are seeing lower cost of capital, what is happening to the guys that took the loans out two or 4 years ago. They are suffering with the old rates and the old cost structure. Now they are forced to compete with the newer lower cost structure firms, and what do they do. They lower prices in the market place to maintain market share. That's what leads to the deflationary price spiral. It works just the other way from when interest rates go up.
    15 Jun 2012, 08:47 AM Reply Like
  • Mark, I do get it. Particularly with globalization companies have faced competitors with zero cost of capital or even worse, subsidies. I do think we are in a deflationary spiral. Referencing our conversation on wages and my brother in law at CAT. we all shop that way now, store to store for sales, ever cheaper prices. Do without if we don't like the price, bacon for example. 35 years of no wage increases, some inflation and declining benefits. Globalization and technology. The only way we have a middle class now is for prices to fall, so we produce our own deflation by the way we spend, or don't spend. Re my brother in law. He's going back to making thrust reverser's. It's a little more money. The kids have not been able to find work, moms trying but she's got three kids to raise. Good luck with your daughter. I've got one with five kids, she gets along barely. One son trying to be an actor with a little success and one at home who in desperation just got a guard card. Hey, I washed dishes and pumped gas to get through school. It seems a lot harder for the kids now. Even dishwashing jobs are hard to get.
    15 Jun 2012, 12:54 PM Reply Like
  • Ok. We're on the same page. I can only say that since before Y2K I started getting nervous about the future. I have been "nervous" so to speak, for nearly 15 years. It's not the kind of nervous that keeps one awake, but the kind of nervous that keeps one aware and with the antenna up and searching for information, etc. During that time I just took different more conservative approach to spending than most of my neighbors. So it helped me avoid some of the issues some of them have gone through.

    I don't know what to do about all the "kids" these days, who are now, in many cases, upper twenties and early thirties. I see some out there and I just wanna grab them and shake them and say, "Do you have any idea what's going on and how rough your life is gonna be?" But I don't - except for my kids. I don't know how you teach independence, industry, thrift and self reliance - except to keep hammering in it.
    15 Jun 2012, 01:20 PM Reply Like
  • that was cool.
    14 Jun 2012, 03:13 PM Reply Like
  • rumors in..rumors out
    14 Jun 2012, 03:14 PM Reply Like
  • more "sources" or sorcery
    is this from tim geithner
    14 Jun 2012, 03:16 PM Reply Like
  • Pump it 4% today & tomorrow in case it dumps 5% over the weekend...
    14 Jun 2012, 03:17 PM Reply Like
  • If this doesn't prove the blatant level of market manipulation, nothing will!
    Bernanke does NOT want to do QE so he has some shill leak this garbage!
    Does nothing to restore confidence!
    Undermines everything we once stood for!
    14 Jun 2012, 03:17 PM Reply Like
  • I don´t think this will really help the stock market on the long term basis ..........!
    14 Jun 2012, 03:20 PM Reply Like
  • Central banks don't give advance notice.
    14 Jun 2012, 03:20 PM Reply Like
  • Maybe they are out of bullets?
    14 Jun 2012, 03:24 PM Reply Like
  • or out of helicopters to help them deliver cash ...
    14 Jun 2012, 04:02 PM Reply Like
  • So true to all the above! Everyone (markets and governments) are addicted to free money! What happen down the road? Can you say Depression?
    14 Jun 2012, 03:21 PM Reply Like
  • My ex late fater-in-law said the same thing for 40 years. And, it never happened!
    14 Jun 2012, 03:28 PM Reply Like
  • Bear Bait he was early on the prediction not foolish.
    15 Jun 2012, 01:24 AM Reply Like
  • market is very skeptical..it popped and then right back down. Its all BS and you know its bad when the market doesnt even buy a rumor..The big players used that pop to add to their shorts...
    14 Jun 2012, 03:24 PM Reply Like
  • This is nothing new.

    The BS pop was sold with both fists...
    14 Jun 2012, 03:24 PM Reply Like
  • Albeit the central banks' action seems to last for 15 minutes only... Indices falling back to where it was.
    14 Jun 2012, 03:24 PM Reply Like
  • Another High VIX moment . . .
    14 Jun 2012, 03:25 PM Reply Like
  • Does this surprise anyone that if the market is down 500 points and there is a run on the Greek banks after the Greek elections that the central banks won't do something. I agree about the market manipulation, all it takes is someone to start an unfounded rumor and you get these massive swings.
    14 Jun 2012, 03:25 PM Reply Like
  • you guys must be comedians....you make me chuckle.
    14 Jun 2012, 03:25 PM Reply Like
  • Central Banks are gearing up for coordinated printing of bogus debt instruments that will be given to banks so they can exchange them for cash to bolster their liquidity in the face of bank runs and capital flight. Now just how does the printing of bogus debt instruments solve any solvency or leverage issues. All said banks should have been re-capitalizing with "investor" money over the last 4 years. But no, they didn't and so why should they survive.

    I am doing just fine with my local credit union. Screw the TBFTB (too big for their britches) banks.
    14 Jun 2012, 03:30 PM Reply Like
  • WM,
    It's corporate welfare to the rescue yet again. Apparently the bulls don't believe in free markets anymore. Nor do they believe in socialism or welfare, unless of course it's corporate welfare and privatize the profits but socialize the losses. Bernanke has become the chief welfare distributor for banks and corporations and wall street.
    14 Jun 2012, 04:44 PM Reply Like
  • Okay ... how many times in the past two weeks has the market been pumped every time there has been an indication of a downdraft?

    1) Spanish bailout (which did nothing)
    2) Chicago fed official speaking about QE
    3) More whistling about QE
    4) Now G20 intervention in case the Greek election

    My question ... which Fed official or a "friend" of the government or the "well connected" has enough money on the line to play stock market intervention every time reality sets in? At this point it has gone beyond ridiculous. And they point at the Chinese rigging their currency. What do you think the Fed and the rest of their cronies are doing to our markets?
    14 Jun 2012, 03:31 PM Reply Like
  • I will answer your question. That well connected "friend" has the power of the Executive Branch standing behind them as they occupy the pre-eminent position on the so-called "Plunge Protection Team". Their name is JPM. They never lose money trading, because they know exactly what's happening all the time. They are the instruments of the Fed and the Treasury in the Markets - all of them.
    14 Jun 2012, 03:43 PM Reply Like
  • Thanks for allowing me to add to my short positions on the cheap. More of these bogus rumors...please.
    14 Jun 2012, 03:34 PM Reply Like
  • Are you guys watching the ticker? Dow and S&P are both going back up. Is it just a bounce of the real thing?
    14 Jun 2012, 03:35 PM Reply Like
  • The troops at the Plunge Protection Team at the FED must've bought a ton of shares today. Great investment guys! I wonder what retail is doing on the news.
    14 Jun 2012, 04:13 PM Reply Like
  • Why are central banks pumping the mkt with the s&p at 1330?? what is it, 5% below the historic high?? I see plenty of bad news ahead and central banks using their bullets before is really necessary. Not jumping in before i see 1000
    14 Jun 2012, 04:47 PM Reply Like
  • This is getting amusing. That spike must have taken out tens of thousands of short stops. I'm taking today and tomorrow off - too wild for this day trader.
    14 Jun 2012, 07:53 PM Reply Like
  • QE infinity

    Can't wait to see all the sheeple lose their shirt when the SP500 hits 500. Blindly follow bernanke and company to your ultimate demise. Hay guyz, uncle ben said we are in recovery, letz buy tbillz!

    As Terrell Owens used to say, get yo popcorn ready. Looks like the fall surge that i've been waiting for might come a few months early.
    14 Jun 2012, 11:29 PM Reply Like
  • everyone is concerned with the fallout of the euro and the sovereign crisis.

    I say.....it gives all world countries cover to print as much money as they want to. why is the euro keeping its 125 to 100 balance with the dollar? it is because the fed is printing to keep them both in balance, thus giving the euro cover to print it's problems down the road for a few more months.

    stocks seem to be going up, but they are just inflating with the increase in printed fiat currencies.

    there will come a time, real soon, that everyone will see what was done to the world tax payer, and when that happens, I won't feel sorry for all the world politicians, as their lives will have the same value as their currencies, that they stole all the value from.
    15 Jun 2012, 02:53 PM Reply Like
Other date
DJIA (DIA) S&P 500 (SPY)