Feb 6. Operation Last Resort

–USD/JPY at 93.65 this morning, another new high.  From 2007 high 124.14 to 2011 low 75.35, 38% is 94.00…getting very close to this level, with a few old highs just above 94.00 in early 2010.
–US rates were higher yesterday with tens +4.5 bps to 201.  Long March treasury puts continue to be rolled into April.  There was a large option steepener trade done as block after the close. 55k 0EJ 9937/9912ps vs 3EJ 9837/9812ps, paid 3.0.
–OPERATION LAST RESORT: The new launch of ANONYMOUS in retaliation for over-reaching by the justice dept in Aaron Swartz case. It’s also the theme of Japan’s Abe in terms of reflation. I wouldn’t be surprised if the ECB also latches on to this idea as renewed stresses in the banking system spur policy changes, but tomorrow’s meeting is likely too soon for any issues to be forced. The broad point is that globally, OP LAST RES is appearing to be an attractive policy choice. Ruh-oh.  Which is not to be dismissive of Anonymous.  The Federal Reserve reported it was successfully, if briefly, hacked. The FED!  The entire US financial architecture is based on electronic debits and credits zipping around, and Anon’s new video is promising, reluctantly, to raise the stakes. I wouldn’t judge it as an idle risk.  The idea of a flash crash, or a major service interruption is perhaps marginally more likely…   

“Anonymous has observed for some time now the trajectory of justice in the United States with growing concern. We have marked the departure of this system from the noble ideals in which it was born and enshrined. We have seen the erosion of due process, the dilution of constitutional rights, the usurpation of the rightful authority of courts by the “discretion” or prosecutors. We have seen how the law is wielded less and less to uphold justice, and more and more to exercise control, authority and power in the interests of oppression or personal gain.”  

Here is the video, very interesting…but may want to use discretion in viewing.  Because they’re watching you.

Posted on February 6, 2013 at 1:23 pm by alexmanzara · Permalink
In: Eurodollar Options

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