If you think about it — it’s the perfect crime.
Now if I was a diabolical man with unlimited resources looking for a monster trade, I’d trigger Credit Suisse into covering their volatility shorts in a sparse after-hours session — thereby creating a negative feedback loop that would in fact force them to buy back more futures.
When volatility spiked earlier this week, that forced Credit Suisse to buy vol futures, which in turn created the situation that terminated and laid waste to XIV.
The ramifications of these short vol trade is still been sorted through. Many people believe it was as big as $2 trillion.
The subsequent result is a loss of more than $2.5 trillion in market cap — a full fledged market panic — and assholes in the comments section here telling everyone else it’s a gigantic nothing burger — to move on — because it meant nothing.
You, quite literally, have no idea what you’re talking about.
Here’s Cramer walking back earlier comments about moron traders fucking up the market in obscure ETNs.
This was a crime, planned and executed with precision — leaving everyone else with dicks in their hands.
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As pissed as he has been , I bet he was up to his eyeballs in xiv.
how many people will be suing their money managers over losses? never informed me of the fine print, etc…
Dear Etrade customer,
We sincerely regret that you lost all of your money in your Etrade account. If you will kindly read our user agreement, you will find the terms you have agreed to as an Etrade customer.
As stipulated in your user agreement, we are not liable for any losses incurred because you are a greedy idiot (section 8, subsection B). Moreover, your stupidity is no cause for remunerative action against Etrade, Inc. as clearly indicated in subsection C, 1.
We value you as a customer but laugh at the many times you have lost your money because you are an idiot.
Kindly,
Your Etrade Customer Service Representative.
whodunnit
So a bunch of retards brought down the market. All those brilliant quants, ivy league graduates, algo programmers got beat by a former target clerk. Blow me Cramer.
The quants did quite well this week. At least the ones I know.
Prepare for a Japanese style ten years of flat pancake ass market
– a person or thing seen as tiny or insignificant, especially in comparison with something larger or more important.
gnat
noun
How’s all your comments to me workin out for ya
How’s that workin out for ya
This is going to get a lot worse of course. Today we had three major events…First the China January Trade Balance came in a lot more stronger then expected dropping the Yuan like crazy and blowing up commodity futures. Then the BoE came out with the Hawkish Talk that I was SO hoping for last night when futures were bouncing around. Last, the Govt shut down came back, so that earlier gain was given back on hopes of a settlement. China has ALWAYS been the major coke dealer since 2009 and ran up so much bad debt loaning money out to commodity, property, etc speculators. Now they are pulling back and CHina is slowing…Plus the Central Bankers are finally tapping out too, (well Kuroda keeps trying but nobody is believing him unless he comes up with more Coke then anyone has ever seen). Bottomline, the drop will be super ugly..and this is merely child’s play right now.
no shutdown. plus, war in ME near certainty:
https://tinyurl.com/y9rwlych
We don’t have the money to wage a war.
conjure ex-nihilo
The markets are worried about inflation and the CB conundrum that would present. Commodities coming in a bit may be seen by the market as good news here.
NO….ferd….not good news. Remember when we had that discussion about earnings would be key and I said nope, Macro tops it. Commodities needs China Govt supporting them (which they have done since 2009)..China is slowing everything especially their housing. That restocking after New Years is over is not coming IMHO.
Complacency has run amuck, not just in fakecoin and xiv but in every asset with massive leverage. Central banks have created peak complacency. Now the moral hazards blow up everywhere as they try to unwind their pumping of assets.
Both stocks and bonds crash to oblivion into the close seem to be the most likely scenario.
Then hopefully more crash on Sunday night.
Futures are currently up 1.3%. Time for panic buying tomorrow?
Futures were up more than 1.3% yesterday pre-market. Remind me how much panic buying did we get?
Had a list of sell orders starting at ES 2620 up to 2750 last night. They never got filled.
Just sold at 2600 instead and leaving all those orders to be filled for the rest of the day.
The last 30min of close today has the potential for epic devastation as the eft”s rebalance for the end of the week.