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Greek Banks Slump, Spanish Bonds Dump, Juncker 'Fist Pump'

Tyler Durden's picture




 

Despite the protestation from Juncker that all-is-well and that the Troika report is positive, Europe is not happy. Bonds and stocks across most of the region's continue to weaken. The sacrosanct 2Y Spanish bond yield has leaked back to one-month highs, 10Y Spanish bond spreads are holding above 450bps (as the yield presses back towards 6%), Greek stocks broadly have given back almost 40% of their recent much-aggrandized dead-cat-bounce (remember our Eastman Kodak analogy), as Greek banking stocks are hammered on the day as recaps (as expected) are much worse than it seems hope-filled investors expected... EURUSD is sliding back towards its swap-spread implied reality. Europe's macro data is breaking lower and while some note US' decoupling, we reiterate (below) this is a lag, not a decoupling.

Greek bank stocks slumping once again...

 

And Sovereign bond spreads are bleeding wider...

 

As the EURUSD slides lower towards its swap-spread-implied fair value...

 

and the reality that nothingt decouples, it is a lead-lag relationship...

 

Charts: Bloomberg

 

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Mon, 11/12/2012 - 12:53 | 2972845 Abraxas
Abraxas's picture

Obama is probably somehow responsible for this one too. Boy, some of you guys are sore loosers. Sometime I think you almost deserved Nixon and Bush. Luckilly, the majority voted against the corporate pupetts and religious wacos.

Mon, 11/12/2012 - 12:55 | 2972873 THX 1178
THX 1178's picture

Looser than your girl? Impossible!

Mon, 11/12/2012 - 13:02 | 2972928 Abraxas
Abraxas's picture

Cute. You caught a spelling mistake. Good for you!

Mon, 11/12/2012 - 13:08 | 2972983 fuu
fuu's picture

Juncker works for Sesame Workshop?

Mon, 11/12/2012 - 13:17 | 2973043 THX 1178
THX 1178's picture

Umm... obviously this how I ridicule shitheads here on ZH. 

Mon, 11/12/2012 - 14:50 | 2973456 20-20 Hindsight
20-20 Hindsight's picture

"Sometime"... "pupetts"... "wacos".  That's three more "spelling" mistakes, all in one sentence.  Your grammar is certainly looser than mine.  I wonder who really deserves Bush and Nixon.  

Mon, 11/12/2012 - 12:56 | 2972875 NotApplicable
NotApplicable's picture

Looky kids, it's a Kool-Aid drinker!

Or is it a troll?

Poe's Law strikes again.

Mon, 11/12/2012 - 12:57 | 2972895 nscholten
nscholten's picture

Obama does what he's told

Mon, 11/12/2012 - 12:58 | 2972897 slaughterer
slaughterer's picture

Would expect ECB to loosen collateral requirements for Greece in a moment and the Bundestag to approve Greek Bailout 3.0 (?) in due order, because "Greece is too big."  The will to do good in the EZ has not gone away over night.  It will only intensify as we approach EZ elections, unless of course the Troika is the bad cop to Germany's good cop.

Mon, 11/12/2012 - 13:02 | 2972930 nodhannum
nodhannum's picture

Do you mean like the Global Warming and Organic Food Wacos of the Religious Left?

Mon, 11/12/2012 - 13:03 | 2972941 nodhannum
nodhannum's picture

@Abraxas, Do you mean like the Global Warming and Organic Food Wacos of the Religious Left?

Mon, 11/12/2012 - 15:49 | 2973678 Itch
Itch's picture

See, there it is again.

Mon, 11/12/2012 - 13:05 | 2972956 bigkansas
bigkansas's picture

George Bush could not be reached for comment.

Mon, 11/12/2012 - 12:59 | 2972907 Stock Tips Inve...
Stock Tips Investment's picture

This sad situation, sometimes it seems funny. We all know (and European authorities know better than us) that the economic situation in Europe is disastrous. That solution will bring many "adjustments", hardships and difficulties. Societies "rich" becoming poor. We all know that Europe is a continent that needs a "rescue" total. However, the authorities look to one side, and "kick" the problem as if to gain time for a magician to come and solve everything. They look like children who do not want their mom finds out they did something wrong.

Mon, 11/12/2012 - 13:00 | 2972914 Peter Pan
Peter Pan's picture

Too many people think that there is time for one more drink at the bar of the Titanic before she sinks and as a result we have witnessed positive movements in bond and stock prices that have been largely inexplicable.

The old saying that greed drives things up whilst fear feeds them on the way down, is getting closer to fruition. The seeming normality of everyday life is wafer thin and largely due to ignorance on behalf of the masses that still have a job.

Mon, 11/12/2012 - 13:12 | 2973014 JPM Hater001
JPM Hater001's picture

There's always time for one more...but as they say the important part is location location location.

Mon, 11/12/2012 - 15:29 | 2973612 OneTinSoldier66
OneTinSoldier66's picture

Yep. I think it is now time to make sure you are in a chair, or lifeboat as the case may be. Even though the music is still playing, the water may be getting very close to flooding the room that the stereo system is in.

Mon, 11/12/2012 - 16:02 | 2973720 Itch
Itch's picture

People have been having one more drink at the bar since the 1970's, in fact the bar has been drunk dry and people have became alcoholics waiting for it to sink...havent you heard? they even set up AA meetings in the engine room. They have had guys on rotating 24 hr shift patterns rotating fucking deckchairs for 40 years and the fiddle player in the band has frostbite on his cock, the women and children are now grandmothers and fathers….sick of it, someone just sink the boat already. 

Mon, 11/12/2012 - 13:19 | 2973031 CrashisOptimistic
CrashisOptimistic's picture

The signals increasingly point in the direction of Greece getting more money.

Greeks are the most profoundly expert defaulters in the world.  They have defaulted as a nation on debt about 8 times in the past 150 years.  They are going to suck in more Euros from the EU and promise more austerity and it will never happen.  

The EU appears to be trapped.  They cannot face their voters and tell them the loans they already made are going to default.  So they will keep giving Greece money with which to service those loans.

The overall lesson?  Do not presume . . . EVER . . . that you have reached the end of the road down which the can is kicked.  Money is an invention of mankind that did not exist in mankind's earliest days.  It can be redefined and massaged to be whatever people want it to be.

Only oil ends this.  Watch nothing else, and I don't mean its "price".  Greece burns 400,000 barrels per day to feed the populace and buys every drop of it because they have essentially none domesticaly.  

Mon, 11/12/2012 - 13:18 | 2973050 Joebloinvestor
Joebloinvestor's picture

Of course they are gonna fund Greece.

They are so fucking afraid the house of cards will collapse they will piss and moan, but in the end they reach down into their pockets and money appears.

When France goes it will be a different story.

Mon, 11/12/2012 - 13:28 | 2973101 Alpha Dog Food
Alpha Dog Food's picture

Yep, it's all going to hell in a handcart over here in Europe. It's now so cold economically that all my clothes fell off on my blog http://alpha-dog-food.com :-)  Love, Kate

Mon, 11/12/2012 - 13:50 | 2973200 fuu
fuu's picture

The coverage is a bit lopsided, leans more to the right.

Mon, 11/12/2012 - 13:43 | 2973188 fuu
fuu's picture

Seeding the torrents is good karma.

Mon, 11/12/2012 - 13:42 | 2973159 jubber
jubber's picture

Why the hell are FRENCH bonds at lows today? the country most exposed to Greece...a new socailist government and huge problems of its own, totally baffled

Mon, 11/12/2012 - 13:58 | 2973248 q99x2
q99x2's picture

Give those boys some Bernanke bucks. They've earned them. the Germans will starve em to death if you let them.

Mon, 11/12/2012 - 14:24 | 2973337 EuroInhabitant
EuroInhabitant's picture

ECB to the Greek rescue - surprise, surprise. The Greeks can load up 3 billion to pay off their debts this Friday. No default, no collapse. Saved in the last second, as ever.

Mon, 11/12/2012 - 17:57 | 2973749 drider
drider's picture

“Europe has created a monster out of the Greek debt problem…Debt forgiveness for Greece- which is absolutely necessary, is now much, much more complicated”

“Greece owes a lot of money, this is not a small amount.  We’re talking about hundreds of billions of euros.”

“After two and a half years of so-called debt management and rescue, what’s happened is that the total volume of debt has actually increased and the composition has changed against Greece” 

“Greek debt used to be about 300 billion euros, it was in Greek bonds and could’ve been written off under Greek law…Now, [however] it’s multilateral debt  — debt owed to official lenders. It’s a matter of public policy in Europe about who’s going to take the losses.”

Prof. Costas Lapavitsas interviewed in CNBC

http://www.cnbc.com/id/49785885

Mon, 11/12/2012 - 16:29 | 2973802 Joebloinvestor
Joebloinvestor's picture

TWO MORE YEARS OF THE SAME SHIT.

GO AHEAD EU, POUR MORE LIQUIDITY DOWN THE RATHOLE THAT IS GREECE.

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