This page has been archived and commenting is disabled.

So Much For "Restoring" Confidence: Benchmark 3 Month Euribor Wider Post Stress Test

Tyler Durden's picture




 

On a day (and week) when every European TV station is and will be blaring how safe Europe once again is because the Rock said so, and to ignore the liquidity bogeyman in the closet, the market has once again spoken. The result: benchmark 3 Month Euribor is wider at 0.889% versus 0.885% previously. We will bring you 3 Month European Libor as soon as we get it: somehow we doubt a massive contraction in those particular rates either. All those expecting that the European liquidity market would unlock overnight with the farce finally over, are in for a disappointment. And unlike their US equivalents, which trade on nothing but machine language momentum, European stocks, on a day when European banks passed their dodecatuple secret probation with flying colors, are flat to down. Looks like even an perfectly inefficient market wont fall for the same Geithneresque ruse twice in a row.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 07/26/2010 - 06:01 | 488359 Cognitive Dissonance
Cognitive Dissonance's picture

If sanity prevails in the world this morning (yes, I know that's a tall order) we should see a return to the old adage that the first move after a major news event (Fed announcement, surprise earnings etc) is the wrong move. Meaning that the ridiculous US market pump around 1 PM Friday was, and is, the wrong move.

Of course, it's been crystal clear for a while now that this insanity is going to play out far longer than most of us thought possible, not because we're wrong about the underlying weakness in every single economic sector/statistic, but because we're right. Since the real economy is spiralling down the bathtub drain, the final step in this international fascist farce is to lie, lie, lie all the way past the bank stress test grave yard.

And if there's anything we know about these guys (and a few gals) it's that they're accomplished liars.

Mon, 07/26/2010 - 06:25 | 488363 Mentaliusanything
Mentaliusanything's picture

Yes - the lie distracts but the truth grinds down given time. Relax it comes down to reality. When that hits watch out below.

Today a bright young lad said that the Dow index could never go below 5000 due to inbuilt inflationary pressures of the Fiat monetary system. He felt supremely confident until I overlaid the Nikkei Index over the Dow.

38997 to Now V 14164 to ...... Reality to a Japanese person is regret they never sold at 35,000 then at 30,000,then at 20,000 now they just wait to die.

I think he can see the future created by loose monetary policy - and I swear he lost his cocky attitude.

Death by a thousand cuts is effective in the end

Read this (from 'some assembly required') 

http://agonist.org/numerian/20100720/regime_change_for_the_stock_market

Mon, 07/26/2010 - 07:05 | 488370 Paper CRUSHer
Paper CRUSHer's picture

In-Cogniti-O,

There occasionally comes a time when these "accomplished liars"receive a well deserved punishment, for example,

David Walton who was a serving member of the Bank Of England Monetary Policy Commitee and an ex-Goldman Sachs Econonist died from Necrosis aka. flesh eating bacteria.(He feed on the people the micro-organisms feed on him).A true display of justice dished out by Almighty God.

http://en.wikipedia.org/wiki/David_Walton

Still makes one wonder though.

For example, Senator Todd is suffering from prostate cancer yet the lies spewing from his mouth have not ceased in the slightest.

 

Mon, 07/26/2010 - 08:47 | 488415 desgust
desgust's picture

CD, unjunked you 1000 x!

Fucking idiots to junk reality!

Mon, 07/26/2010 - 06:23 | 488364 mephisto
mephisto's picture

The sad thing in Europe this morning has been senior officials trying to talk up the stress tests. Everyone in the market here knows they are a joke. Unfortunately, for the ECB this is the worst of all worlds, their credibility is now shot.

Sentiment here is bad - not in a bearish way which could of course be bullish, more in a 'WTF are they doing' way.

Traders are on going on holiday, clients are on holiday, desks are quiet. Take that as you will.

So now traders in Europe are waiting to see if the US melts up, or does its Monday-Tuesday HFT pump&dump song&dance routine.

For guys trading in US hours, or watching with popcorn & beer, expect to open lower quite a lot from now on - I think any late afternoon ramp jobs can be sold, and bought back next morning. We in Europe know what they are, we ignore them, and IMO we will sell the markets back down for you.

Mon, 07/26/2010 - 06:31 | 488367 Cookie
Cookie's picture

Ambrose E-P is one of the few msm journalists who tells it as it is

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/790943...

 

Mon, 07/26/2010 - 07:00 | 488369 Mentaliusanything
Mentaliusanything's picture

Pre - fucking - cisely

Give the man a box of cookies

"First comes deflation then comes inflation"

http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/

Bernanke has tools - he does - tell me he does. 

He has Nothing

Mon, 07/26/2010 - 08:35 | 488409 MachoMan
MachoMan's picture

We've already had an incredibly long period of inflation, we're headed the other way now.

In a normally functioning economy, viewing it as a human, we would expect to get a little fatter in winter and to begin the new year with the goal of shedding fat and, as summer sets in, our metabolism picks up and our extra yard work does just enough to eat away most of the gut we gained over the sedentary winter.

Keeping the analogy alive, we are presently nowhere near normal, rather we are one of those fat people you see who are so fat that they cannot move and ultimately have to be cut out of their bed, hauled on heavy machinery to a zoo, weighed, and then hospitalized.  How do these people get so fat?  Well, they have enablers.  We have enablers.

The fat has to get shed...  the fatter we get, the more that gets shed and the rate of shedding is quicker.  Even if it all works out, we'll have a bunch of extra skin hanging around.

Mon, 07/26/2010 - 08:20 | 488397 optionblast
optionblast's picture

3 month Euribor rate up once again July 26th to 0.889%

http://www.euribor-rates.eu/euribor-rate-3-months.asp

Also, another key U.S. indicator that never seems to fail is the sentiment of the VIX (fear / volatility index) of the S&P 500 which is simply calculated by the summation of a series of Put options on that index going way out of the money on the SPX.  In laymans terms...an inside look in to the purchase of insurance on a possible doomsday scenario. 

Here is an interesting chart on what the October - August VIX (fear indicator) spread is forecasting for the Markets.. 

 http://chart.ly/eb44a7

 

Mon, 07/26/2010 - 10:14 | 488477 besodemuerte
besodemuerte's picture

Pardon my language, but I'm really getting sick and f'ing tired of this market.  Someone please calm me down before I do something irrational and regretful.

Mon, 07/26/2010 - 10:46 | 488514 Paper CRUSHer
Paper CRUSHer's picture

You're aggravated right now.

Pissed off,right.

Fed'eral up,right.

Here,strap these on and walk into the NYSE.

http://www.rsc.org/images/b606061g-250-%28TRIDION%29%20%28iStockphotos%2...

Mon, 07/26/2010 - 12:57 | 488730 besodemuerte
besodemuerte's picture

Very pissed off and quite Fed up.  The dynamite thing though...would rather strap them on a remote controlled robotic of some sort rather than call it quits myself.  I still have much anger to release on evil before I leave this place.

Mon, 07/26/2010 - 10:20 | 488482 virgilcaine
virgilcaine's picture

1120-1130 on the SP should be where Hans goes over the cliff.

Mon, 07/26/2010 - 10:58 | 488555 carbonmutant
carbonmutant's picture

 Globally the banks have agreed that if they don't hang together they will surely hang separately.

So they're pretty much locked into their current behavior pattern...

Mon, 07/26/2010 - 13:06 | 488742 Cognitive Dissonance
Cognitive Dissonance's picture

In effect, they are a subset of the herd themselves. Too frightened to go against the flow, to captured to even serious consider breaking stride, to conflicted to honestly look at themselves, no reason to change behaviour when they're being enabled by those in power to stay the course.

Mon, 07/26/2010 - 14:08 | 488845 carbonmutant
carbonmutant's picture

 Pretty much, that's it.

The bank that doesn't go along with the plan is going to get blamed for scaring the sheep. Nobody wants to be in that position.

Of course they will need to do something before the cards get shuffled in November...

 

Mon, 07/26/2010 - 14:57 | 488932 iPood
iPood's picture

Certainly not reflected in the EDZ10-EDH11 chain, which continue to trade near record highs, with the discount in the back months diminishiing (EDZ10-EDZ11 at +2SD under the 50 day mean). Premiums on EDH11 calls look pretty juicy if you believe the Euribor spike will filter through to dollar based euro deposits.

Do NOT follow this link or you will be banned from the site!