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Bank Holiday For Greek And Portuguese Bond Market, Portugal CDS Explode 60 bps Wider At 400

Tyler Durden's picture




 

The bond market in Greece and Portugal is now rumored to now be shut down for the day due to total chaos, not to mention potential imminent revolution in Athens. We expect the US to "decouple."

 

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Wed, 05/05/2010 - 08:32 | 332222 johngaltfla
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Yeah. It will decouple until people peer into the books and go "oh crap"....

Wed, 05/05/2010 - 08:50 | 332249 steve3828
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Where is the PPT?  Don't they need to buy the dips?

Wed, 05/05/2010 - 08:58 | 332270 Mitchman
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PPT?

Wed, 05/05/2010 - 09:12 | 332304 mikla
mikla's picture

Plunge Protection Team.  No, they don't need to buy US stocks/futures because the US bond and stock market will be propped up by everybody fleeing the Euro.

It will work for a while.  Then, the US will default too.

Wed, 05/05/2010 - 09:15 | 332313 Mitchman
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Thx.

Wed, 05/05/2010 - 10:14 | 332483 Miramanee
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RE: "...Then, the US will default too..."

The U.S. cannot default. Operationally speaking, under our fiat currency system, all obligations---which are serviced by shifting digits in reserve accounts at the FED---can be attended to.

Yes, at some point, the U.S. may CHOOSE to repudiate its debt and giver the rest of the world the finger. But the U.S. cannot default. Default is a vestige of gold-standard thinking. Default could only occur if a power-outage shut down the computers for months at the FED.

Wed, 05/05/2010 - 10:49 | 332561 N_Jones
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You are right, the US cannot default. The FED can just print our way out. So more debt no problem we'll just print more of those dollars to pay it. I don't understand why Greece doesn't just start printing more money.... surely they had their own currency before the Euro?

Wed, 05/05/2010 - 13:37 | 332879 jmc8888
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That's the killer thing in Maastricht and Lisbon treaty, they are now subservient to ECB bankers who are not elected by the population of Greece.  No accountability, no need to hear the cries...unless the tears are from bankers' who could bring other bankers down.

They have to leave the EMU and perhaps the EU to get that ability back.  Same goes for everyone else in the EU. 

This is why many people didn't like the maastricht and lisbon treaties and thought they were complete bs.

Put it to you this way.  Say Canada, under the advice of the squid, told us we had to pay back China today, and Canada printed our money.  As an American who do you bitch to? What legal steps do you have?  Especially if those that told us what to do were voted on by the squid who told who they picked what we needed to do.

That's some canadian bacon I'll tell you.

It's also the backwardness that is the ECB/EMU/EU.

Wed, 05/05/2010 - 12:18 | 332748 Hephasteus
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Ponzi Protection Team

Wed, 05/05/2010 - 08:54 | 332260 Cognitive Dissonance
Cognitive Dissonance's picture

Did someone just light a fuse leading to a financial bomb?

Wed, 05/05/2010 - 10:51 | 332567 caconhma
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There will be no revolution in Greece. People are not hungry but just spoiled by a free socialist-welfare state. Both people and their politicians are equally corrupt. Their union leaders are agree with their politicians. 

These kind of people just make a lot of noise and then go home to enjoy still a good life.

So Tyler, there will be no revolution in Greece or any EU country for a while. What we see is just a posturing to get a better deal from countries like Germany who are stupid enough to buy this theatrical BS.

Wed, 05/05/2010 - 13:41 | 332890 jmc8888
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Spoiled? Did a poor overleveraged banker tell whisper that in your ear? What a sophistric, unrealistic viewpoint.  You can hold it, many millions did just that, that's why the whole world is here.

 

Faulty thinking that realized itself in real world ways is what got us here.  Too bad, people still want to blame laziness and socialism, instead of figuring out the truth.  Makes it easier I guess (no it doesn't).  Surely doesn't solve the problem, nor get to the root of it. 

Sure is easy to blame socialism or unions, or lazy.  The average guy did not cause this problem, it was those that created the rules.

The bankers told the politicians what to implement.  So once again, lets forget the big elephant directing traffic in the room, and instead blame the server carrying the wine around the room.

Wed, 05/05/2010 - 08:36 | 332226 jkruffin
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Funny how they close it down when TSHTF  but let it ride up to infinity on fantasy.

 

Gotta love free markets right?  LOL

Wed, 05/05/2010 - 08:40 | 332234 ZackAttack
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They're "free" to move in one direction only. One degree of freedom.  

Wed, 05/05/2010 - 09:42 | 332390 Double down
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They have been very "disobedient" lately 

Wed, 05/05/2010 - 08:42 | 332238 johngaltfla
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They are "free markets" as long as the Fed's members collect their commissions on your hard work.

Wed, 05/05/2010 - 08:40 | 332232 trav7777
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But the US's spreads stay tighter than the high E on a gui-tar.

Nevermind our massive roll, deficits, obligations, BANKRUPTCY.

 

Wed, 05/05/2010 - 10:02 | 332455 Cognitive Dissonance
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While getting ready for work this morning I turned on CNBC just in time to hear this beauty from Becky Quick.

She had a brief (unscripted) conversation with Joe about the strength of the US dollar and how there is no inflation nor any expectation of inflation. Then she mentions the problems in Greece along with pictures of the riots. Becky then says the only way out for Greece is to inflate the currency and they can't do so because they are part of the EU.

It never occurs to her or any one else on CNBC that Greece is the precursor for the first stage of a global currency devaluation and that this is also the only way out for the USA and its almighty dollar.

Wed, 05/05/2010 - 11:01 | 332585 Postal
Postal's picture

It's doubtful she's thought through tomorrow's outfit, and you're expecting her to be aware of pending social and geopolitical upheavals?

Wed, 05/05/2010 - 13:19 | 332852 Cognitive Dissonance
Cognitive Dissonance's picture

LOL

My bad. I was assuming an IQ above 100.

Wed, 05/05/2010 - 13:47 | 332903 jmc8888
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We can also put all debt through a glass/steagall standard and nullify all that doesn't meet it.  Which would pretty much stop the problem from going forward since it would wipe out the debt that is crushing everybody.

It's a big step, but that is the only legitimate way out. 

The other way is devaulation.  But that way isn't legitimate.  So you know the bankers will go for that.  We all know that.  But we need not go down that road.  So you know we will since it benefits THEM and not US.

ROFL I wonder if Quick is like a stage name/nickname, like Tiny sometimes is.

 

Wed, 05/05/2010 - 08:41 | 332236 cossack55
cossack55's picture

Huh?.. I have been trying to decouple from the US for years but they keep electing more empty suits and pant-suits.  More like pant loads.  Can We the People decouple from the goobermint?

Wed, 05/05/2010 - 08:42 | 332237 doggis
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there is a geopolitical agenda going on beyond just the insolvency of greece. the use of the ratings agencies as foriegn policy tools are apparent. the US is looking to destablilize the EU? what is the motive. are they trying to prevent the EU from rrealigning interests with the russia/asia block? that would leave the UK and USA to stand alone in their insolvency....anyone?

Wed, 05/05/2010 - 09:02 | 332277 Mitchman
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I agree with the geopolitical agenda point. A bit tough to figure out right now but it seems we are trying to accomplish with the dollar what we could not accomplish through diplomacy or militarily and in the process send a message to some tin horn dictators (are you listening Hugo?) and maybe our good friends the Chinese.  No question that there is a huge realignment of traditional strategic relationships going on. 

Wed, 05/05/2010 - 09:20 | 332324 Hunch Trader
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USA is slightly peeved that they cannot live by printing the greenback anymore. If they manage to break the EURO, dollar will still be the international king.

It's been a good gig: paper for commodities and products. Well worth an international solvency war.

 

Wed, 05/05/2010 - 10:41 | 332542 abc123
abc123's picture

"a" , that is "one" geopolitical agenda???

How about a million conflicting agendas of self-interested global entities trying to create situations favorable to their own personal agendas which result in massive entropy and divergence in strategy. 

Have you ever seen an intelligent, consciously self-directing avalanche? 

There is no one bad-guy. 

It was like this on the last day of Atlantis, too, when the rising water was knee-deep on everyone.

Wed, 05/05/2010 - 13:50 | 332909 jmc8888
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+100

There may be some collusion, some overall plan, but for the vast majority it is exactly the above.

Wed, 05/05/2010 - 10:44 | 332552 anony
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The agenda is we don't much like the French; they don't bathe, live at home in tiny boxes. The Dutch are too tall and dour. Spain thinks it's hot shit. Italy screwed us in wwII. Germany cost us too many lives to save Britain's sorry ass. Poland gives up pederast-living popes.

The ultimate insult, the Euro being worth 60-30% more than the buck, is the final straw.

And we will never know the shenanigans that are going on at the top of Goldamn Sucks and Barclay's to control the world's trading profits.  Never.

Wed, 05/05/2010 - 11:15 | 332623 Renfield
Renfield's picture

They're rioting in Africa
They're starving in Spain
There's hurricanes in Portugal
And Texas needs rain

The whole world is festering with unhappy souls
The French hate the Germans
The Germans hate the Poles
Italians hate Yugoslavs
South Africans hate the Dutch

And I don't like anybody very much!

Wed, 05/05/2010 - 08:45 | 332241 AUD
AUD's picture

Must be an illiquid market then?

Credit spreads here in Australia have also tightened considerably in the last month.

Stokmarket is underperforming though, WTF!? it's all junk

Wed, 05/05/2010 - 12:04 | 332725 gratefultraveller
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I reckon the fireworks are intended to distract from the pending stalled parliament in the UK. We'll see friday what gives.

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