The $1 Billion Armageddon Trade Placed Against the United States

Quote from EquityGuy4321:

This is so unbelieveably wrong I don't know what to think.
More...

For sure. The author has never seen an actual CME or Eurex order book in his life and obviously doesn't have an inkling about the notional value of the swaps and cash markets that get traded.

Incredibly common, routine occurrence for size like that to trade.
 
oooooh dear....

http://www.cnbc.com/id/43914334

We're getting close to USA = junk status folks! Maybe the gold bugs were on to something :D

How much gold is in Fort Knox anyway? Answers on a post card please. Does the fact that nobody knows the answer raise further concerns on USA's ability to repay its debt?

QE3,4,5,6,.....

:confused:
 
Quote from CrackPipe:

We're getting close to USA = junk status folks!
More...

Put down the pipe, not even close.

And FYI, the downgrade has been baked into the cake for quite a while now.

2n0j4e8.png
 
IF YOU ADD UP THE TOTAL NUMBER OF CONTRACTS MENTIONED BELOW (OVER 8 THOUSAND) THE TOTAL REQUIRED MARGIN IS LESS THAN $25 MILLION DOLLAR AS THE MARGIN REQUIREMENTS ARE LESS THAN $2,000 PER CONTRACT. THAT'S REALLY NOT A BIG DEAL SINCE THE BOND FUTURES MARKETS CAN ABSORB MUCH MORE THAN THAT AS FAR AS TRADING SIZE. COULD BE A HEDGE FUND OR SOME HOT SHOT CTA FIRM. NO BIG DEAL IN COMPARISON. BUT WHO KNOWS? HEY WHAT DO I KNOW? THE SCENARIO IS FAR WORSE THAN ANYTHING THIS COUNTRY HAS EVER FACED BEFORE. WE HAVE NOT BEEN HERE BEFORE SO WE HAVE NOTHING TO COMPARE IT TO. WE ARE IN NO MANS LAND.
 
Quote from Vulcan Trader:

THE SCENARIO IS FAR WORSE THAN ANYTHING THIS COUNTRY HAS EVER FACED BEFORE. WE HAVE NOT BEEN HERE BEFORE SO WE HAVE NOTHING TO COMPARE IT TO. WE ARE IN NO MANS LAND.
More...

Dude, with all due respect, having traded through wars and crashes and limit markets in both the pit and on the screen - this is way more political than it is practical. Look at the futures price action for God's sake and chillax. NP.
 
Quote from CrackPipe:

Im always amazed at how patriotism (an emotion) rules over common sense and fact among American traders.

These are the facts:

- over 50% of US debt is held overseas.
- the majority of this debt is held by Chinese
- the USA is already technically bankrupt
- although a small income tax increase will ease the situation, the american public will never want to pay more tax in the short term, even to escape the turmoil of what we see happening in Europe.
- interest rates cant go any lower, they can only go one way from here. What will that do to yields.....?......

To my thinking, this trade is a no-brainer.

The telling thing is the timing of the trade, and the way it was executed, not the fact it occurred.

Get a bucket! Some of you are gunna be sick......
More...

Couldn't be further from the truth...

http://prorevnews.blogspot.com/2011/07/who-holds-americas-debt.html
 
Quote from bone:

Dude, with all due respect, having traded through wars and crashes and limit markets in both the pit and on the screen - this is way more political than it is practical. Look at the futures price action for God's sake and chillax. NP.
More...

I WAS NOT SPEAKING ABOUT THE BOND TRADES. I WAS SPEAKING POLITICALLY AND ECONOMICALLY.

Like you I too have traded through MUCH. I started out almost 20 years ago on Wall Street and I have worked for several firms and I even ran a trade desk. I was in the market on 9/11 and in the fall of 2008. In all fairness we have "NOT" been here before.

<iframe width="425" height="349" src="http://www.youtube.com/embed/XezKzO6YDRg" frameborder="0" allowfullscreen></iframe>
 
You must log in or register to reply here.
Back
Top