The CDO At The Heart Of The Eurozone

Tyler Durden's picture

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Dick Darlington's picture

This monster really turns your stomach upside down so after taking a puke i think i'll have a drink too.

moldygoat's picture

I have started drinking more heavily since reading ZH. I am long small batch bourbon.

NotApplicable's picture

One has to keep their mind (and body) flexible during these increasingly uncertain times. Otherwise the bowels lock up and you aren't worth a shit.

Or so I'm told.

spekulatn's picture

And just because this time it is different, this particular CDO will work. We promise.

 

It better!  :)

Greyhat's picture

The funniest Hyperinfective Invest Vehicle is the TARGET2 account of the Bundesbank. €340bn of credits to other bankrupt EURO-CBs secured by europes finest paper trash collateral. Gravity bomb, implosive on fail, too big to survive. :-)

http://www.bundesbank.de/statistik/statistik_zeitreihen.php?first=1&open...

SWRichmond's picture

Caption contest!

"Leverage, bitches!"

"Scotty, move leverage to the shields!"

"At warp 9, we're going nowhere mighty fast."

InvalidID's picture

For the Caption Contest:

 

 Lets write the details of this one in Portugese. The Chinese don't speak Portugese right?

 Hey guys, I bet the Fed will buy it if we...

 

 

ThirdCoastSurfer's picture

Belarus is in big trouble with news of rioting after the electricity was cut off for lack of payment and the Bank of Russia just tapped a $5.4b loan from the the Russian Central Bank.  

uranian's picture

In true Orwellian style, Europe's last dictator, Alexander Lukashenko, ordered the arrest of hundreds of protesters for clapping and organized a rock concert of mini-skirted girl bands to try to entice them away from demonstrating.

the tragi-comedy of planet earth grows by the day.

Milstar's picture

"Belarus is in big trouble with news" just with Russia now owning them there is nothing new.  Sometimes a state default is the best option.  

elOso's picture

would love to see a cds market develop on the EFSF. let the market price the risk and total fck with the european kleptocrats.. although if someone was brave enough to sell protection on the super senior tranche not sure I would feel that great about having a counterparty around down the road to collect from...

Global Hunter's picture

Admittedly I had a pint for lunch, but things just get more bizarre.

carbonmutant's picture

There seems to be a shortage of cash in the new structure...

This like Debt backed by Debt...

 

AcidRastaHead's picture

Are you ageist?  Got a problem with super-seniors?  They're super you know.  That's like way better than deluxe-seniors.

AcidRastaHead's picture

Are you ageist?  Got a problem with super-seniors?  They're super you know.  That's like way better than deluxe-seniors.

AcidRastaHead's picture

Damn that double minus advanced mathematics.

augie's picture

The new structure includes a greater level of guarantees allowing for the removal of the cash collateral requirement...

How does that make anything more safe? 

NotApplicable's picture

Because it's greater. It goes to eleven.

centerline's picture

+1.  Head banger nod to Spinal Tap.  Classic.

centerline's picture

Sounds to me like nothing more than removing barriers to "technical insolvency," so that when this  particular turd detonates it will lead to immediate and irreversible failure.  All the chips have been pushed into the center of the table.    

augie's picture

Yikes, I think i'd rather prefer a spinal tap aphorism.

Cole Younger's picture

" once parliaments have ratified the increases in guarantees."..............enough said

centerline's picture

... and it's gone!    hahahahahaha...

Ghordius's picture

Damn are the smart! I had no idea they used copulas! On whole contries

slewie the pi-rat's picture

long liver;  short lungs.

weed, BiCheZ!

fukin groundhog day, or what?

Milstar's picture

Short kidney's go long term livers!.  Every 1st yr med student knows that. 

chump666's picture

yes a rioting contagion...EZ is done.

I am done with EZ, till the next implosion (1week and counting) till then, China, PMI, liquidity, inflation

midnight's picture

Zero Hedge, quit fooling the forum members with that PIIGS crap, just because it makes you look macho.

 

1) Show PROOF (from other source besides your ass) that Spain and Italy are broke

2) Greece, Ireland and Portugal are the side of _small_ U.S. states.

 

You don't have a clue about Europe. Get one

Milstar's picture

WTF do you need??!!!? CDs Spreads have blown out, rates are up in the 5's or higher. debt to GDP is rising.  Spain has massive undisclosed debt and insolvement regional banks, Italy has a sky high debt to GDP that makes even Greece look restained.  What more do you need?? 

zevon investments llc's picture

This link has the same content but formatted:

http://zevoninvestments.wordpress.com/2011/06/30/market-conditions-63011/

Market Conditions: 6/30/11 06/30/2011 5:27 PM BY W. ZEVON LEAVE A COMMENT (EDIT) The S&P move on Thursday was not genuine. The tape’s price action and correlation to leading stocks was off. The market moved at a peculiar time: An hour earlier than usual and with unusually sudden volume at a time when the market is rising on low volume. Fund window dressing has been mentioned and that’s likely the reason. Parts of the market are at their tipping point: Food prices have gotten attention lately because of their volatility and crop reports. Corn and wheat proved to be good shorts with sugar about to follow suit (/ZC, /ZW, /SB). Crude and NatGas are on the up and up (/CL, /NG). NatGas had a positive EIA report Thursday and crude has faded the increase in supply from the US and IEA last week by gaining $5/barrel over the last three days. Equity primary leaders are failing to retrace to their highs while stocks in secondary sectors extend from their base to all time highs. The Euro is showing volatility (indecision) after the Greek bailout while the USD sits just above it’s inflationary lows ready to break out. The two currencies prove to be on different timelines with the US dollar leading the Euro. Treasuries (/ZN) (Over)Sold with exuberance on austerity measures vote (raises yield, decreases nominal). June 30, 2011 marks the end of QE2. Today the US gov’t auctioned the last of the treasuries and “QE2.5? is supposedly in the works for another temporary fix. Treasuries are also known as a safe haven for equities i.e. S&P 500 and DJIA [r(/ES) && r(/YM) == -1] = 1. Crude (/CL) Crude prices normally rise following economic strength because the more money made and spent in an economy means more can be charged for a tank of gas i.e. crude demand increases through a revaluation of buying power vs necessity to determine value, and price/barrel is adjusted on this basis. Crude is a few points above its recent low of 90 a barrel and its recent range goes up to 115 which it will inevitably go back to and above. Look at price data 10, 30, 50, and 100 years previous to see how inflation trends. The U.S. economy is about to enter a state of recession within nine months (Europe has time in the bank for the same reason we did with QE about 3 years). NatGas (/NG) EIA reports were positive and led to a 2% spike. It’s in the 4th cycle of the “pattern” it’s been following. NyTimes hated on it (http://www.nytimes.com/2011/06/26/us/26gas.html). Seeking Alpha poked holes in NYT’s weak logic (http://seekingalpha.com/article/277306-who-should-an-investor-believe-th...). Equity Stocks making all time highs include LULU, FOSL, CMG, CAT. Primary leaders like AAPL aren’t reaching previous highs. Broad market indices the last 3 days had the largest percent increase since February. Currency EUR/USD fluctuating through pips by the hundreds. US Dollar (/DX) hovering above extreme inflationary lows. FILED UNDER ANALYSIS TAGGED WITH /CL, /DX, /ES, /NG, /YM, /ZC, /ZN, AUSTERITY, CORN, CRUDE, DJIA, EUR/USD, FOOD PRICES, GREECE, INFLATION, NATGAS, QE, SPX, SUGAR, TREASURIES, WHEAT

hamurobby's picture

Interesting statement...

The U.S. economy is about to enter a state of recession within nine months (Europe has time in the bank for the same reason we did with QE about 3 years).

 

Peter K's picture

You got to wonder how much longer the Soviet Union could have survived if it had access to the the EU braintrust?

johnnysize's picture

Here is the joke... you go short all the Sov debt in the pseudo develped world and buy "emerging market debt" ...add a little Green Mountain Coffe short and you are George Soroz. But guess what? It wont work. After the mountain seems to big to climb, we will shift the fear to another global economy. We cant short everything? CAN WE? Oh wait, maybe we can. Maybe we can simplfy the world's woes by simply stop buyiong and selling equities and bonds, but BUY GOLD. In the end its GOLD and AMMO. Get used to it...you have money, no matter whwre you live, you better have gold and ammo. PERIOD. Have fun long /shorting your wangs into rasberry root heaven.