As Spain's Socialists Lose Local Elections, The Bond Vigilantes Stir

Tyler Durden's picture

A year after an insolvent European continent realized it is long overdue to implement fiscal consolidation, aka tightening, also known as 2010's keyword of choice: "austerity", the political regimes who have supported fiscal prudence are one after another falling victim to the general population's dissatisfaction with the gradual elimination of a myriad of socialist policies. Following recent electoral losses in Germany, not to mention the overthrow of the Portuguese government, which like Belgium, continues to be in limbo, today we move on to the second to last domino in the PIIGS chain: Spain (and Italy is next: S&P took the time at 6pm on Saturday to remind everyone about that particular unpleasant fact). Per Reuters: "Spaniards began voting on Sunday in local and regional polls expected to deal heavy losses to the ruling Socialists, who are blamed for widespread unemployment that has off a wave of pre-election protests. Tens of thousands of Spaniards demonstrated in the past week in city squares around the country against austerity measures that have kept a fiscal crisis at bay but aggravated the highest jobless rate in the European Union. [as a reminder a webcam of the Madrid protests can be found here]. The protesters have called on Spaniards to reject the Socialists and the center-right Popular Party, the main two political options in Spain." The problem is that when you overthrow socialists, it is unlikely that you will get more socialism down the road. Which, however, is what everyone in this country of 21% unemployment, and nearly 50% joblessness in the 18-25 age group really wants.

More from Reuters:

Polls show the Socialists could lose strongholds such as the Castilla-La Mancha region, where they have controlled the regional legislature for decades, and the city of Sevilla, where they have been in power for 12 years.

If forecasts hold true, the outcome will be a rebuke for Prime Minister Jose Luis Rodriguez Zapatero, applauded abroad for his fiscal discipline during the euro zone crisis but unpopular at home as the economy stagnates.

The Socialists, in power since 2004, are also looking likely to lose the next general election, which is scheduled for March 2012, but could come earlier if big losses on Sunday spark a leadership crisis within the party.

After the euro zone debt crisis forced Greece, and later Ireland and Portugal, to take bailouts, Zapatero implemented round of measures to tackle a huge public deficit and persuade financial markets that it has the budget under control.

He is expected to maintain unpopular economic policies whatever the outcome on Sunday.

"Unless the government wants to run the risk of another episode of financial distress and the debt spreads sky rocketing again, it will have to implement another austerity package before the next elections," Fernando Fernandez, an analyst at Madrid's IE business school, said.

In the past Spain has been relatively timid and accepting, even as its economy has continued to contract, and as the threat of the Cajas true debt exposure is finally put to the table (first discussed on Zero Hedge in July 2010). Those days are over.

Until now Spaniards had been remarkably patient with the economic crisis, as joblessness has been cushioned by traditionally strong family ties and by under-the-table work. But the patience seemed to run out this week.

"We need a change and I'm not surprised people have risen up, albeit belatedly," said one of the protesters, 38-year-old Robert, who works for an advertising production company.

Robert had brought along his three-month-old daughter "so she can start learning young," he said.

At the end of the day, the only thing that matters is what the bond vigilantes says. Should the socialists be swept and be replaced with a far more anti-austere party today, then one can be certain that the Spanish €3.5 billion auction of 3 Years on June 2 will be the worst of the lot, and that breakout in Spanish yields predicted by Goldman, is about to set off a firestorm of selling pushing Spain into the vigilante blender.

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plocequ1's picture

Bond vigilantes...  Wasn't that the movie starring Roger Moore and Charles Bronson?

Alex Kintner's picture

You, my friend, are simply Shaken, not disturbed.

??'s picture

MISH Attacks Zero Hedge  (Could Mish be looking for traffic?) 


to that end the attached link is to a PDF image of the article and comments as opposed to linking to his useless site - as in "No Traffic for you MISH"  (No value in going to his site to comment as he moderates the comments)



Conspiracy Garbage on Zero Hedge





Fish Gone Bad's picture

Take a look at the 19th entry (Global Economic Analysis) on the column to the left, entitled: Zero Hedge Reads.  For the life of me I have no idea why people have this Love/Hate relationship with various people who post.  It is impossible to be right on every single topic, 100% of the time.  If readers had all the answers, then they certainly would not need to waste their time on financial websites.

Atomizer's picture

Fuck Mish. His manifesto has been discovered long ago.

Confuchius's picture

He's being deported back to the bogs (not blogs) in Ireland.

The little people (with little minds) are missing him.

Re-Discovery's picture

Should be named Mush for the crap on his site.

Or Miss for the number of times he's been wrong.

Landrew's picture

I have to agree, when Mish started attacking working people in favor of more bailouts for the rich he was doomed. However, I still agree with he and Prechter's  assessment of a stronger dollar. How sad, what could have been another voice of sanity became just another Cock brother inspired hate of working people.

JR's picture

The power of Zero Hedge is its courage to present all credible avenues in a debate, plus opinions.  In this irresponsible charge from Mish, his one example of “conspiracy garbage” goes a long way in discrediting himself. Was Strauss-Kahn set up to destroy the dollar?  Who knows?  Not the least of who knows is Mish.  Now, a new French opinion poll (CSA/Le Parisien) shows that 57% believe that DSK was “certainly or probably” set up.  Was it Sarkozy?  Mickey Mouse? Or the dollar?

I would like to read the endless possibilities, in that the IMF is one of our financial world’s most dangerous subjects.

And before we leave the topic, Mish’s poison pen attack gives one column he didn’t like (“Was Dominique Strauss-Kahn Trying to Torpedo the Dollar?”), and one author he does like, Bruce Krasting.  IOW, in the few minutes before you check the posts on ZH, make a quick review of their standing with Mish.

Tyler Durden's picture

It would behoove Mish to actually realize that Zero Hedge has about 40 contributors (yes, there is a CONTRIBUTOR section for a reason) whose opinions we post unedited, and none of which we necessarily agree with or preapprove (or predeny for that matter).

??'s picture

Maybe Mish should apply to become a Zero Hedge contributor (on a probationary basis that is) and then he could test his mettle against the steely critique of the ZH comment community.  My guess is Mish wouldn't dare though  traffic to his site  would likely increase by many orders of magnitude.

Eally Ucked's picture

Mish likes edited versions posing as independent articles. Here we have plethora of different views and we decide what is junk not him! Now he wants to fight diversity of opinion on ZH? Let him do it and when he succeeds we all be MISHLIKES.

Biff Malibu's picture

Mish is a fat loud mouth who provides (unlike Tyler et al.) absolutely no actionable market intelligence.  Do not even bother to visit his page, like the above said, obviously an attempt to boost page views.


WaterWings's picture

I did visit his page...and I agree. Mish cannot differentiate between "contribution" and "aggregation". Furthermore, like most sensationalists, Mish is not very specific about his beef with Mike Whitney (Mish would prefer to self-aggrandize by taking on ZH, rather than the author):

Everyone deserves a fair trial. However, "fair trial" does not mean trumping up sheer idiocy and conspiracy nonsense in his defense.

We would all appreciate a little more detail, Mish, because using big words like "idiocy" and "nonsense" is cheap.

Mish sez, "Enough is enough."

Can we expect to hear that repeatedly, the same way the Teleprompter sez, "Let me be clear."?

ipud's picture

All my favorite movies feature the gold vigilante:

JW n FL's picture
by ipud
on Sun, 05/22/2011 - 10:31


All my favorite movies feature the gold vigilante:


THIS IS FANTASTIC!!!! if you want to smile on a Sunday Morn or any other time.. let this wash away the crap outa your head and just enjoy it!


Thank You for bringing a Smile to my ugly angry face, Sir! You are a Grande' Human Being for making something ugly fun and funny!

Atomizer's picture

His other site is the beehive., hasn't been updated in awhile. My Ipud favorite is this one....

Narcolepzzzzzz's picture

Great set of vids ipud. Love Episode 18.

Long-John-Silver's picture

It was the Good, The Bad, and the Socialists. Starting as the Good is Ron Paul, The Bad as Obama, and the Socialist is (was) head of the IMF DS-K.

mr_T's picture

I was at the Plaza del Sol last night. It was amazing to see a true democratic peaceful protest in action. I was very impressed with the organisation. They even had volunteers cleaning the plaza, food and water was donated by local resteraunts. The best part was hearing the speeches and reading all the signs, and quotes from many political leaders past and present. This type of protest would never have taken place back in the USA currently, it would be considered unpatriotic. Our founding fathers would have been proud to see this protest in action. Most of my friends back home when they think of protesting the government and making some change, they run out the local gun show and stockup... thats not how your get err done... I pitty those fools.....

Zero Govt's picture

Mr T   "..Our founding fathers would have been proud to see this protest.."

Yes your corrupt Founding Fathers, like these delusional peanut brained protestors, were wrong on all counts too. The State is the shit hole of humanity, they helped found this rotten monopolists institution in your country

Meanwhile the Spanish protestors are protesting about what? Not enough free money coming their way down the State zombie drip feed? Oh dear!

Not enough of other peoples money being taxed and siphoned out of the private sector? Cue the violins

What the fuk do these protesting socialist zombies expect? Socialism (the State) is bankrupt yet again, as it has bankrupted every country in history (Doh!). They are all out of other peoples money/wealth to rob and then piss away on themselves. What's honourable about this protest peanut brain?

What's not to easily understand about suicide socialism and yet another bankrupt, corrupt, State failure???

IndianDancer's picture

Meanwhile the Spanish protestors are protesting about what? Not enough free money coming their way down the State zombie drip feed? Oh dear!


Since long before the times of the Roman Empire, they want free bread and circuses. Oh, now they want also free cars, free fuel, palaces, i-Pads and personal aircrafts. For some reason they don't want the jobs that the Romanian gypsies and the Africans are doing in Spain. Lazy and greedy people.

ciscokid's picture

Thats exactly correct,the Spanish are
lazy people.

mr_T's picture

I'm American by the way dipshit... You socialist bashers do not have a f'n clue. If you have a job, keep your fingers crossed you don't lose it and your health insurance. I think thats great you don't mind paying $600-1000/mo for insurance so they can make 20% yoy profit every year. If you don;t have insurance, your family just dies if something goes wrong. If I owned an insurance companies I would love to have sheep like you grazing on the pasture of mass media bullshit.. Keep eating up until, its your turn at the slaughter house. Now they want to raise education another 30%.. only the rich have the right to an education. Ahh... whatz the point.. I am not going to change anyones mind.. until the ATM's stop spitting out cash and the system comes to a stop.. Remember its unpatriotic to protest, so keep waving your flags.. and don't forget to send your children to the next war  to a theater near you... best wishes.. btw.. I love it out here...

Zero Govt's picture

Mr T

typical socialist, you didn't answer the direct question, instead you dodged it and spat your dummy out the pram in an emotional rant

here's the question a 3rd time: why are these public sector Spanish zombies protesting about State austerity when the State is fuking bankrupt? What do these public emloyees and students ever imagine in their tiny little minds the State is going to give them when they've spent the State into oblivion?

How many times has the State, and suicide socialism, got to decend into the sewer before people (like you) realise the State is a human shit hole and socialism (entitlements from 'free' school to pensions) is econimic suicide?? The State is shit at everythng it does. It is the most pig ignorant and parasitical institution ever devised. It's all rosy and champagne corks while it lasts pissing away other peoples money and making promises, promises, promises but it always ends in total chaos, lies and bankruptcy because the State is full ofthiefs and frauds

The Roman Empire was destroyed by the exact same State largesse and non-stop entitlements that bankrupted it. They should teach that in ignorant State schools

The public sector can go fuck itself. But we all know it's too bloody stupid to look past its own nose to do anything else


Eternal Student's picture

Thanks for the link about how Martin Armstrong views the fall of the Western Roman Empire. I have to say though that it's really bad. A surface skimming in order to promote a preordained view. You have to ignore a lot in order to keep his view justified.

In general I find Armstrong to be consistent in his intellectual dishonesty. He wrote a piece last summer IIRC that was pretty much lifted from the newly released "This Time is Different", and didn't bother mentioning where his stuff came from.

You can make the choice of whether you want to follow an intellectually dishonest person. It can certainly serve to make the points you want (and ignore the ones which are inconvenient). But as for getting to the truth of the matter, it's nonsense.

Zero Govt's picture

Eternal Student

i think the 'intellectual dishonesty' you should address is your own. Start with the financial facts that the State is yet again absolutely bankrupt just as they were for the Roman Empire

Armstrong is pointing to the age-old problem, much repeated, of State largesse leading to very predictibly to State bankruptcy.. he has written about Rome but also previously Venice as well as much on the Wests repeat of this same simply financial and political error throughout history (a history not taught in State schools?)

you are the typical peanut brained spaceman ignoring the weight of the argument and attacking the person (with broken straws). You are the dumbest student in the class, go to the corner and wear that 'D' party hat you so deserve

Eternal Student's picture

It speaks volumes that your only defense consists of ad hominems.

Sorry, you offer no credibility.

Things that go bump's picture

Ha! Everyone knows Romanian Gypsies don't work.  

raios_parta's picture

Although I agree with the content of your post, Gypsies do not work. At least in Portugal it's an extremely rare occurrence. Once they found one that actually had a job and everyone was so amazed that he got coverage in the main evening news on one of the main TV channels.

unununium's picture

Ever stopped to count all the ways in which you would get fucked by the anarchy you so fervently desire?

Rossalgondamer's picture

at least I get to shoot back.

Nathan Muir's picture

True liberty comes through law that is applied equally throughout society.  Political discourse should be structured around a spectrum with tryany on one side and anarchy on the other.  The Liberal/Conservative spectrum should be structured around the way one chooses to live their life, free of the pursuasion of the state.  My two cents.

Rossalgondamer's picture

Debate as you like between tyranny and anarchy.

Souls always reserve the right to ignore 'any' writ authority (Even God's). You can ignore them, convince them freely of your logic, or posse up (State solution).

It is highly unlikely (but always possible) a true anarchists blows through a motorway intersection having no stop signs. 


StychoKiller's picture

Anarchy != Chaos

An Anarchist, having his/her own selfish interests in the driver's seat, would stop if survival deems it prudent; therefore:  Anarchist != "Progressive" Idjut

Zero Govt's picture

Nathan Muir   "True liberty comes through law that is applied equally throughout society"

Bollocks. Liberty is free, take a look at nature (free birds, fish, buffalo). We don't need no sham written bullshit to give us liberty or bunch of pontificating muppets (judges) and teams of snakes (lawyers) to appoint it

it is the imposition of (State) Law that are the first tenticles of the death of freedom. Fee society is a self-regulating mechanism, just like any natural herd or pack, and it's worked for 2 million years and how we got here

the Law has added fuk all to humanity, it is a huge monopoly authority clown show. It is now fulfilling it's parasitical end, too expensive for the poor to get 'justice' and a stick for the rich and rich corporations to wield to screw, suppress and corrupt competitiors

Human Rights is the stink of the State awarding you rights at its convenience. In order to persue your HR's you need the States decision to give you funding to afford to persue them. HR is a fuking sham of epic proportions

the number of Laws is equal to the level of totalitarism, the more Law the less freedom (check out Hitler, Maos, Stalins and the EU's law writing orgies) 

you only need look at the fraudsters of Wall Street walking around free to see how 'effective' the Law is. The Police and the dozens of regulators and the warehouses full of laws have done sweet f.a. all sitting on their hands whistling Dixie. The more Law the more lawlessness.. it is a sham 

..a free society and free markets have their own justice system

falak pema's picture

the truth behind the lie in your premise lies in the bollocks of your affirmation :

When two pairs of bollocks yearn for the same piece of shimmering flesh that's when liberty meets head on with its opposite, which is constraint. Not enuff shimmer to feed two pairs. So then how to decide? Man knows only the call of bollocks and that's the bollocking of one pair that results as consequence. That's where law comes in useful to decide who gets first bite. Especially if the lady cannot decide. It's never an ideal world and Utopia is like equal numbers of bollocking pairs to those of shimmering fish...

StychoKiller's picture

"There's no way to rule innocent men.  The only power any government has is to crack down on criminals.  Well, when there aren't enough criminals, one makes them.  One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.  Who wants a nation of law-abiding citizens?  What's there in that for anyone?  But just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted--and you create a nation of law-breakers--and then you cash in on guilt.  Now that's the system, Mr. Rearden, that's the game, and once you understand it, you'll be much easier to deal with. -- Dr. Floyd Ferris

Zero Govt's picture

StychoKiller  -  absolutely right. The last tragic Labour Govt, the worst bunch of scum in British history, introduced 2,600 new Laws in its 14 bankrupt shambolic vandalising years. It is now estimated that at any time over 50% of the British public is now 'criminal' being in breach of one of 1,000's of these petty laws which in effect is the State turning on its people and nannying/bullying them (as they do drugs, tobacco, alchahol, speeding, fatty foods etc)

You can draw a graph line in any nations history between the increasing volume of Law and the increasing rise in Lawmakers (the States) own lawlessness

This is due to my simple human theory (evidenced and proven beyond argument) that you've got to be a complete asshole to tell other adults how to behave, even more so to give them 100's of rules to 'obey'. So the more laws the State makes the bigger the assholes running the State (see Stalin, Mao, Hitler, George Bush, Blair & Brown, Frank & Dodd)

The Theory that Only Assholes Make Law is a working theory with huge historical evidence and new current evidence growing by the day (see Homeland Security, EPA, the EU, the UN et al) and it follows that Law never enhances freedom but is designed to suffocate it (because Lawmakers are the adult worlds biggest assholes)

Zero Govt's picture

Falak -  i've never read such a pile of bollocks, great effort though

Confuchius's picture

With the creatures from the underworld that you have telling you what you must do; the only solution remaining is from Chairman Mao. "Political power grows out of the barrell of a gun"

Things that go bump's picture

Mao had a wonderful way with one liners.  


Popo's picture

Bond vigilantes?  LOL.  Wake me up when they get here.  

Will they be riding unicorns?

achmachat's picture

Damned if you do
Damned if you don't...

Zero Govt's picture

Damn the State . . . and about damn time what's coming for the public sector

oogs66's picture

The can is getting harder and harder to kick down the road.  The citizens of the countries providing the bailout don't want the bailout to happen.  The citizens of the countries receiving the money don't want the bailout with all the austerity.  So the masses don't want the bailout, it is only a few people who support the bailout because it is in their own best interests.  Screw the people, save the rich and powerful.

While DSK literally raped one woman, Trichet is figuratively raping nations.

The bailouts must end and we must move on.

A Man without Qualities's picture

If governments refuse to push ahead with austerity, there will literally be nobody willing to fund the governments, and what will happen will be cuts far more severe than discussed.  The suffering will be borne by the lower and middle classes - those who need the public sector to provide their healthcare, education; those who's pensions are tied up in funds heavily skewed to risky assets; those who's homes represent their largest single "investment".

The rich have moved funds to safe places, bought gold, diversified and sit in cash.  They would like nothing more than to see prices plunge, in order to buy in more cheaply.

The outlier to all of this are the banking community, who desperately need the bailouts in order to preserve their positions, or would like soft restructuring, so they can push their bad investments onto the ECB, as was done in the US.


sun tzu's picture

If governments refuse to push ahead with austerity, there will literally be nobody willing to fund the governments, 


There's your problem. The government should not have to borrow outside money to fund itself. You fund yourself with tax revenues. 

RockyRacoon's picture

Miracle of miracles, we agree on something.   Government is not a business.  Whereas, it makes sense for a business to borrow for growth, a government is not an entity that borrows for "growth".   Growth in government means that it borrows to "produce" dependence and a degenerative populace.

From the article:

The problem is that when you overthrow socialists, it is unlikely that you will get more socialism down the road.

I've corrected the quote to read in a U.S.-centric way:

The problem is that when you overthrow DEMOCRATS, it is unlikely that you will get more socialism down the road.

To paraphrase an old adage:  Be careful what you VOTE for.