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IBEX Down 4%, BBVA And Santander Both Plunge Over 5%, As Euro Panic Forces 2 Year UST Yield To All Time Lows
The last thing you want to do if you are a bankrupt country, is tell your skeptics not only 1) the catalyst to trade around but 2) the timing too. Which unfortunately is precisely what happened when, as we reported yesterday, Spain has announced it is panicking about the LTRO roll on Thursday. The net result: the worst performing stock market in Europe, as the IBEX is down 4% for the day, and plunging banks, with both of the country's most insolvent institutions, BBVA and Santander, trading down over 5%. All of these festivities have resulted in a massive shift from stocks to bonds, and the 10 Year now trading below 3% for the first time since April 2009. More concerning is that the 2 Year has just hit fresh all time lows at 0.586%, a level not seen since the 0.6044% on December 17, 2008 after the Fed did its last ZIRP cut. Incidentally a regression analysis between the 2s10s30s butterfly and stocks, indicates that the S&P rightfully belongs well in the triple digit territory.
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How can this be ?? Just last week I was assured (notice the first three letters on that word) that Santander and BBVA were rock solid ? I believe everything CNBC tells me.. it's a buying opp and I'm goin all in !! Erin told me it's a winner.. how could I possibly doubt her ??
I had a friend that aced his treadmill stress test for his heart and died of a massive heart attack three months later on a racquetball court....something tells me stress tests are not much of an indicator..
I never doubted that Erin has nice tits...why else would anyone pay attention to her?
Senior politicians believe their economies need to be better protected as they could not cope with another crisis on a par the one in Greece. View from the lab: continental driftThe creation of a "super-euro" zone would initially include France, Germany, Holland, Austria, Denmark and Finland.
The likes of Greece, Spain, Italy, Portugal and even Ireland would be left in a larger rump mostly Mediterranean grouping.The official said French and German officials had first spent months examining how to exclude poor-performing states from the euro but decided it was not feasible. A two-tier monetary system in the 16-member euro zone is being examined as a "plan B".
"The philosophy is the stronger countries might need to move away from countries they can't afford to bail-out," said the official. " As a way of containing the damage, they may have to do something dramatic, though obviously in the short term implementation is difficult.
The Coming Euro Collapse- Germany and France examine 'two-tier' euro
you know things are bad when Abbey National (now STD) starts sending letter to customers saying:
"unless you have regular money paid into your account (think salary rather than self-employed) we must cut your overdraft facility by 50%.
this after 24 years as a customer, 3 mortgages, countless car and personal loans, all paid back without a hitch.
this particular OD has already been cut by 40% 2 years back, frankly I think theyre in greater need of OD facilities than I am.
so im withdrawing every penny and closing the account asap.
"Rats, get ready... JUMP!!"
The problem is which bank to replace STD (nice acronym) with. Barclays and HSBC are supposedly the UK banks in best condition, but don't they have substantial investments in the Med zone?
I personally use RBS. Once taken over by the gov't, whether it'd require the BoE printing £5bn or £500bn, surely they wouldn't ever let them fail?
Barclays have branches in Spain. not sure how much theyre in for.
Austerity is working better than Bail Outs. Let the cleansing, and restart begin.
970 by September.
Do you mean SPX cash level, or living standards are returning to the dark ages?
970 AD by September?
*lolz*
We ought to be able to at least sustain a steam economy.
970 by 2pm
Is that 970 on the S&P mate? If so, methinks you are a tad optimistic ....pulling an number out of my rear (or charts, same diff.), I could easily see the S&P well below 900 by Sept. as the Yanks realize that there is no recovery, and the Obamanation is not going to save them.
I settled for the lower bound of the range with most probability percentage assigned to it. I did not come out with this # but a fine young lady who does this professionally and for one of the WS majors. She was kind enough to engage in a conversation with me and give me the most probable range on the SPX for the next 60 day [starting with July 1st]. Its not a certainty; but the model says it is the most probable.
Guess it is time to close out my Compass accounts....what a pain in the ass.
and somewhere in a corner Leo is retching
one place has to be the worst on any given day. gracias amigos.
sin querer, por supuesto. Es q cuando las bestias míticas cagan caquitas doradas, alguien tendrá que hacerlo procesar y ya sabemos como huele hasta q caigan los mismos angeles de Dios.
Les toca por el momento, un insolito momento con un toquecito fino, de pluma, pero vendrá a Nueva York y Londres el toque brutal.
I see a lot of panicked shorts, desperately fighting for their positions to be in the money. The dark side will fight back and terminate all world is going under hopes....:=))
US 10 yr note at 2.98%
30 yr note at 3.969%
I am glad I stayed short S&P mini's overnight again. Cha-CHING!!
The DOW should be under 8000 again already, and its about time to pay the piper. Anyone long stocks are about to suffer badly.
Where the SP/Market should be and where the "manipulators" let it go is the question.
Can't let the ponzi fail boys.
As first suggested on June 23, looks like the equity counter trend rally has ended.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Why aren't LIBOR futures pricing the lack of interbank liquidity that would result from a failure to roll the LTRO? Much adieu about nothing..they'll roll it, so that the game of musical chairs can continue.