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Portuguese 10 Year Bond Yield Hit Fresh Lifetime Highs
With all the discussion over how "stable" Europe is in the past month, one might actually take the European bankercrats' word at face value. And nothing could be more hazardous to one's health than believing a corpulent gentleman from Brussels. Because while Herman Van Rompuy is literally sending out haikus via twitter, his continent continues to burn. Today, the Portuguese 10 year hit a fresh lifetime high yield (and low price for those who failed bond math 101). One would think that with virtually everything backstopped by the ECB, Europe would show at least some resiliency. No such luck. In fact, things are getting progressively worse as Germany continues to procrastinate on the one decision that has any hope of being at least a stop-gap interim solution, namely a united bond issuance authority. Instead, Europe continues to go all in on its failed EFSF contraption which will work for a few months, and then will have to be bailed out with an even bigger CDO: an EFSF3? The only question around this time is who is indicating (wink) that they are long the equity tranche? As for Portugal's completely non-viable interest rate: just close your eyes and stick your hand in the sand. Trust Bernanke- it works for him (and he is a Ph.D.).
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Oops.
Headline on Yahoo finance - "Dow Winning Streak at Risk". Wow!! Such a big risk eh ?
It is the condition known as Baghdad Bob Syndrome.
Take two doses of CretinNBC and call me in the morning.
cretin
A Person that is: brainless, stupid, child-like, and full of pointless information that makes no sense and appeals only to other cretins. They can be found in abundance in every single populated TV News room, where they race to post as many mind-numbing messages as possible in a single session. In addition, they seemingly interbreed with other cretins, ensuring that their cretinous genes continue long after they end up dead meaning the mainstream media will never be rid of their kind.
Etymology and use of cretin
The term cretin is a medical term which describes a person so affected with the condition, but, as with words such as spastic and lunatic, it can also have a vulgar connotation and can be used disparagingly. Cretin became a medical term in the 18th century, from an Alpine French dialect; it saw wide medical use in the 19th and early 20th centuries, and then spread more widely in popular English as a markedly derogatory term for a person who behaves stupidly. Because of its pejorative connotations in popular speech, health-care workers have mostly abandoned cretin.
They always do that. 1 point drop has the same psychological effect of a 1k point drop. Binary thinking, either the market melts up or down. So stupid...
Pay no attention to that. The Fed... opps I mean the ECB has got everything under control. Yields mean nothing. If they do, then the rising yields mean increased economic growth.
<drinking antidote to Von Rumpuy koolaid>
Oh, that's because of inflationary pressures and mounting fiscal strains on the whole EU which is about to implode. Hold tight.
why do they all wear those shirts in Belgium that make them look like the Hamburgler? Are they feeling guilty about something?
You mean Bulgaria? I think they wear them to make themselves feel belgium.
Deutsche Boerse, NYSE Confirm Advanced Merger Talks
The enlarged company would be controlled by the German company's shareholders... http://online.wsj.com/article/BT-CO-20110209-714008.html
Resistance is futile, amerikanischer Freund. ;)
But resistance is all I'm made out of. You can't balance my electrolytes. Gatorade failed, The Morton Salt lady failed, the milk and potato diet failed.
With great power comes great current * resistance ^2
"With great power comes great current * resistance ^2"
Hmmm, aren't the "I squared R losses" mainly manifested by heat and no relative work?
Lifetime H I G H s, bitch
Growth exploding in Portugaul I take it.
good one
Could bond auctions like these be part of the reason why there was so much interest by indirect bidders at the US treasury auction today?
If I am not mistaken, isn't the US 10 year the benchmark that many other bonds (domestic and foreign) are compared against? If the 10 year rates rise dramatically, it would mean all other rates, especially in Europe would need to rise even more, to compensate for the additional risk premium.
By foreign CBs jumping in to purchase US treasuries, are they not helping to keep their own rates somewhat contained?
Thoughts?
Correct. They can "contain" to an extent their level of inflation with US T purchases. Unfortuantely for them, the music has stopped and the last shoe has dropped.
YOU CAN'T MAKE THIS SHIT UP!
Say it ain't so, AP! What could possibly stop the money train from going to the moon? Perhaps the EU defaulting?
I think that this is why the 10 year sale went to indirects also.....something smells.....
That would be Amagerbanken in the State of Denmark.
I think that one of the reasons for this is that those in charge of Portugal let her economy decline over a long time period. According to UK economist Shaun Richards.
I notice that he also added that he feels Portugal must be very close to calling in the IMF.....
Interesting that with the relatively poor and struggling economy among nations in the Western EU, Portugal still has one of the lowest crime rates in Europe (and thus the world, given that crime is quite low across the EU).
With its terrific climate, nice people, good food, low costs, it is a very appealing place both to visit and in which to live (if you don't need a job).
They have a new strategy too - Portugal is now a tax haven -
Sunny and friendly and beautiful and low-cost-of-living Portugal, is offering people of independent means, the chance to move to Portugal and have zero income tax on foreign-sourced income for the next ten years:
http://www.shelteroffshore.com/index.php/living/more/good-reason-to-reti...
"Portugal still has one of the lowest crime rates in Europe"
What flavor, violent or white collar?
EURUSD
Trichet has made believers of us all?
http://99ercharts.blogspot.com/2011/02/eurusd_09.html
http://www.zerohedge.com/forum/99er-charts-0
DUBLIN (Dow Jones)--The Irish government had postponed further capital injections into Allied Irish Banks PLC (AIB ALBK.DB), Bank of Ireland PLC and EBS Building Society until after the Feb. 25 election to allow the new government to address the issue, Ireland's Finance Minister Brian Lenihan said Wednesday.
The terms of Ireland's EUR67.5 billion financial aid package from the European Union and International Monetary Fund stipulate the Irish government must ensure the three banks are capitalized to a level of 12% of Core Tier 1 capital by the end of February.
Lenihan said in a statement he had informed the European Commission, IMF and European Central Bank that it was the government's view that the issue should be addressed by the incoming government.
"Even without further capital injections these banks are adequately capitalized and the short delay poses no regulatory or stability issues," Lenihan's statement said.
The European Commission confirmed that Ireland informed of its plans to delay the injections.
"We understand they do so because of the dissolution of the Parliament and the elections coming up," said a spokesperson for the EU's economic and monetary affairs commissioner, Olli Rehn.
He said that Ireland will not be considered in breach of the terms of its bailout agreement so long as the recapitalizations continue after the elections.
"We note also that Ireland has the resources to recapitalize its banks and the only thing we are saying is it is important now that this delay is only temporary and the Irish authorities will proceed with the recapitalization of the banks as was agreed on in the bailout program," said Amadeu Altafaj-Tardio.
The Central Bank of Ireland said the timeline has been extended and expects it to be settled early in the new government's lifetime.
It said that Allied Irish Banks, Bank of Ireland, Irish Life and Permanent PLC (IL0.DB) and EBS continue to meet "ongoing minimum capital requirements." They will be subject to capital and liquidity assessment reviews, which will be completed by the end of March 2011, the central bank added.
Earlier Wednesday, the IMF warned Irish banks remain under stress, while repairing the system will be difficult and could be subject to unwarranted delays as a result of general elections to be held in February.
These elections are likely to result in the formation of a new coalition government comprising the right-of-center Fine Gael party and left-of-center Labour Party. They will have to agree a common approach to cutting the budget deficit and dealing with the banks.
But the IMF acknowledged there is considerable public opposition to continuing to support the banks through fresh capital injections and maintaining a government guarantee on their bond debts.
"The public response to the program has remained favorable, but a lingering domestic perception of inequitable burden sharing persists," the fund said.
I think this is the story of the day. First hit at 11.13 am and that was dirt drop in stocks. I think big Ben, the stupid NYSE merger, and the Paul Tudor jones rumor have caused people to miss this. Is a government finally scared of being blamed for a bailout?
"Earlier Wednesday, the IMF warned Irish banks remain under stress, while repairing the system will be difficult"
Now, would these be the same banks that passed the ECB Bank Stress Jest, er I mean, "Test" with such flying colours?
What's the problem? According to Ben's logic, this must be due to the incredibly robust growth of the Portuguese economy.
Amazing! This must be a good sign!! The Global economy is on the mend, buy more NFLX!!
Jus_lite_reading: Why do you think the last shoe has dropped? My guess is that they can continue to pull shenanigans like this until they accomplish their goal of forcing a rebalancing of Asian currencies.
It seems to me the real risk is what is going on in China and the other emerging markets. The developed countries are jamming massive inflation down their throats. Forcing them into a no-win situation = either revalue their currencies or get social unrest through inflation. We're seeing some of the results of social unrest emerging on the fringe of the developing world.
For me, the question is when will the switch into uncontrollable, hyperinflation kick in? I feel like that switch is coming pretty soon in these emerging economies, especially China...maybe by June.
You answered that yourself- they are now being forced to swallow inflation and eat it... The China of just 5 years ago is not the China today- they may be more powerful than Russia and the whole EU combined...
Think trends and tipping points.
Good point. Thanks.
They're being squeezed into taking the bailout, sooner the better, not that it makes a difference.
Wow, higher than Egypt. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aaQvFPxHqQhY
I wonder what Axel's going to do back home. Doodling up the new Deutschmark artwork?
LMAO! +1 TRILLION DOLLARS TO YOU!
Euro on a bit of a scorcher today against the US Dollar, up 0.73% to $1.3725 ....there's only 2 times your currency rises, first when your economy is getting stronger and second (for some fuked up reason) when your economy is about to implode ......no prizes for guessing which way the Eurozone is going right now!
the bernank will buy them!
Lots of "cheap" paper for the European monster-CDO called EFSF to buy. Sad thing is that it'll be just another big bag of tax payer's money gone waste. At the moment the CDO has made people too complacent abt the true nature of the situation but gravity always works it's way through. When the next reality check abt Spain is back on the menu, and it will be, the dominos that are still left standing are abt to come down.
Is that us when rates go up?
Too bad they cannot print money like we could. Personally, I wish I could print money too. I want to be "rich" too.
Here's an interesting interview with Soros (from Davos): http://www.bloomberg.com/video/66216200/