Panic

With apologies to the Smiths...

Panic on the streets of London
Panic on the streets of Amsterdam
I wonder to myself
Could I ever be long again
The Bund rallies as yields slip down
I wonder to myself
Hopes may rise in the blogosphere
But Honey Pie, longs aren't safe here
So you abort
To the safety of a short
But there's panic on the streets of Moscow
Dublin, Beijing, Dusseldorf
I wonder to myself

Buy up the dollar
Sell the blessed euro
Because the QE they constantly play
It does nothing for me to shrink bond yields
Sell the blessed euro
Because the QE they constantly play

The Bund rallies as yields slip down
Voldemort nowhere to be found
Sell the euro, sell the euro, sell the euro
Sell the euro, sell the euro, sell the euro
SELL THE EURO, SELL THE EURO, SELL THE EURO
SELL THE EURO

Actually, Macro Man has covered a third of his short today, because it's come a long way and prudence dictates banking a little.    If form holds, he'll be selling it back out at lower prices.  It probably bears repeating that unless you're in your mid-30's or older, you have:

a) never seen a proper dollar bull market
b) never seen a free-floating EUR/USD  (i.e., absent the impact of FX reserve managers, who are currently dealing with their own issues instead of fannying about with other people's currencies.)

Believe it or not, this is what markets used to be like.