Posts Tagged ‘zero’

Notes From Underground: Intervention where is THOU STING

August 4, 2011

Yesterday the Swiss National Bank surprised the markets by lowering overnight lending rates to basically ZERO–the nearby 90-Day EUROSWISS contract (Sept. 2011) traded for 2 basis points–or, 0.9998 for those keeping score. The SNB also pledged to increase sight deposits from 30 BILLION SWISS to 80 BILLION SWISS, a very aggressive liquidity add, all in an attempt to stem the rise in the FRANC. By the end of the trading day the SWISSIE recouped most of its overnight losses in an act of defiance.


Notes From Underground: Trichet, Juncker, Papandreou, Sarkozy and Merkel Provide the Dance of the Seven Veils

June 20, 2011

Another weekend full of “surprises” as the EU tried to entrance the markets with the slow dance of default/reprofiling/insolvency/bailouts/bail-ins/austerity budgets and of course a voluntary agreement to reschedule the duration of the debt of the PIIGS. No matter if you put a veil on it: a PIG is a PIG. The language of the Eurocrats is so convoluted that every press release creates more confusion rather than offering any type of clarification of how the financial support mechanism is to provide support in real terms. In seems that the Brussels Eurocrats are mainly concerned about the banks and how much exposure they have to a Greek default. A major credit event in Greece will cause the other PERIPHERALS to consider the possibility of a “default” in response to a major solvency action by the Greek authorities.


Notes From Underground: The markets owe its movements to DEBT, DEBT, DEBT

November 15, 2010

Today’s markets were all about DEBT. The European sovereign DEBT markets were rife with rumors about Portugal, Greece and Ireland all defaulting, which would lead to a restructuring or some other type of sovereign DEBT relief. It was rumored that Portugal was dropping out of the EURO altogether. All the rumors forced Chancellor Angela Merkel to say that the EURO was the glue that holds Europe together and that Germany would do its part to hold the EU together and that countries in trouble would be provided with the needed funds.