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Another Deteriorating Spanish Auction, Another Moody's Downgrade, More German Dissent, More Failed Banks
By this point only ECB commissioners can not see the death spiral that Europe is currently in. Earlier today, Spain issued €3.5 billion in 5 year bonds with terms markedly worse than even the most recent prior auction. The yield came in at 3.657%, up from 3.532% previously, with a dramatic slide in the Bid To Cover, which plunged from 2.35 in May to just 1.7. And to guarantee that the next bond auction will barely clear 1.0 is Moody's, which just downgraded 5 Spanish regions, Castilla-y-Leon, Extremadura, Madrid and Murcia to Aa2 from Aa1 and
Castilla-La-Mancha to Aa3 from Aa2. This is even as the rater is about to cut Spain by about 3-5 notches to the single A category if not lower. Elsewhere, Germany once again threw Europe into a general state of discord by announcing that it does supports banks' refusal of full stress test releases. As Market News reports, "Bundesbank President Axel Weber is supporting German
banks in their opposition of a complete and uncontrolled disclosure of
stress tests, German business daily Financial Times Deutschland (FTD)
reported Thursday citing sources. Weber promoted the partial release of stress test results. Yet, he
opposed the plan to let the European association of financial
supervisors CEBS decide alone how much of the stress tests will be
released, FTD said." This is in stark contrast with the Geithner approach of complete doctoring and fudging of even the stress test framework, to make sure no banks ever fail the stress tests. Once again Germany is showing Tiny Tim the middle finger.
And making matters even worse, was a report by the FT that Germany bank rescue fund Soffin could be asked to help two to four lenders. As Reuters further reported, "Bundesbank Vice-President Franz-Christoph Zeitler said the responsibility for such articles lay with those who wrote them, adding that he would not confirm or deny details of Wednesday's meeting with senior German bankers on stress tests for lenders.
"At the moment, there is no reason to make further statements related to individual institutions," Zeitler told Reuters on the sidelines of the a symposium in Frankfurt."
Of course, Soffin had no comment but it is all very clear what is happening in Europe at this point.
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Look at old gal on CNBC staring at Greenspan like " I would love to hop on and ride that nose"
And Leisman is looking at her thinking "Take a number bitch" ROFLMAO
RIP Euro. We're digging up the grave for you even though you're on life support. Now we just have to wait a little longer to pull the plug.
it seems that every time we ready to pull a plug , stupid SNB ESB get intervene.
Homer,
I'll ask you the same question every IT guy always asked me when I called with a computer problem, "Are you sure it's plugged in?"
is the euro going to go up or down? Jumped almost 150 pips since last night.
Tyler,
Germany needs to show "Tax Cheat" Tim once and for all by launching the MIGHTY V-2 by adding another digit.......middle finger & index finger.
I say we just send GOLD to 5k and Silver to $500 and get the collapses over with, and let's start anew. Beats all the back and forth bickering by Congress, CB's, and leaders. They are all lying, and we know it. So who do they actually think they are fooling?
Here, here - excellent idea! - the Academy of Lagado would be aghast at these machinations and those folks were
definitely on the outer fringes....
At the Academy:
Gulliver visits the academy, where he meets a man engaged in a project to extract sunbeams from cucumbers. He also meets a scientist trying to turn excrement back into food. Another is attempting to turn ice into gunpowder and is writing a treatise about the malleability of fire, hoping to have it published. An architect is designing a way to build houses from the roof down, and a blind master is teaching his blind apprentices to mix colors for painters according to smell and touch. An agronomist is designing a method of plowing fields with hogs by first burying food in the ground and then letting the hogs loose to dig it out. A doctor in another room tries to cure patients by blowing air through them. Gulliver leaves him trying to revive a dog that he has killed by supposedly curing it in this way.
On the other side of the academy there are people engaged in speculative learning. One professor has a class full of boys working from a machine that produces random sets of words. Using this machine, the teacher claims, anyone can write a book on philosophy or politics. A linguist in another room is attempting to remove all the elements of language except nouns. Such pruning, he claims, would make language more concise and prolong lives, since every word spoken is detrimental to the human body. Since nouns are only things, furthermore, it would be even easier to carry things and never speak at all. Another professor tries to teach mathematics by having his students eat wafers that have mathematical proofs written on them.
Look for Moody's downgrade now.
Interesting enough, those rating agencies have nothing to say, apparently, about the level of indebtment of municipalties and States in the USA (if I recall correctly the sum of federal and local debt should sum somewhere up in the range of 350% of US GDP), about the job's dynamic, the housing sector... no, better downgrading Spain on the eve of a public debt auction while "The Sting"-theme plays in the background.
I think rating agencies are mere spotlights pointed at the target of opportunity for the pack of wolwes to know where to strike next in a well oiled casino where gaming the game has become the rule... until the FED eventually runs out of green paper?
The main stream media is calling the spainsh auction "relatively sucessful". Are you fucking kidding me?
No, they don't, in the sense that (I don't know how's the correct line in the original version, but I hope you'll catch it nontheless): "It could be raining..."
Certain German banks exposure to PIIGS debt is three to five times their respective capital. So a twenty to 33 percent haircut would wipe them out. And that's assuming that the other "assets" on their balance sheet are worth what they are asserted to be worth. That's probably a wildly unwarranted assumption at best. Their survival is all about increasingly shorter-term funding by the ECB who now has sovereign debtors on life support. Who do you suppose will get the hind tit?
EURUSD buying support detected for some time now, has returned again and the daily chart is now neutral to bullish.
http://stockmarket618.wordpress.com/about
Dunceldorf. Need I say more ?
Dunceldorf. I'll say it again...
Certainly a lot of details like that to take into consideration. Thanks windows vps | cheap vps | cheap hosting | forex vps