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European Sovereign Spreads Plunge To Nine Month Lows As EUR Breaks 1.3300
The world can't get enough Greek Government Bonds (now trading above 50% of face! on 5-notch S&P upgrade and ECB collateral news), Italian and Spanish government bonds (at nine-month low spreads with the biggest one-week drop in risk in over three-months and tighter by 25bps this week alone), Euros (EURUSD at 8 month highs with a 430 pip ramp in the last week), and Italian and Spanish stocks (at nine-month highs and up 3% this week). Technical breakouts every you look in Europe as the almost unprecedented rally of the last week - amid huge and escalating volumes in stocks - goes on. The only thing we would add is that for the first time in a week, European stocks, bonds, and the EUR are closing the European day-session off their highs. Apart from that - everything is golden, problem solved.
Greek Government Bond (price)...
Italian Bond spreads...
Spanish Stocks...
EURUSD liftathon...
European VIX rolled over today...
Charts: Bloomberg
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Not the EUR breaking $1.33, I HATE that.
What's next???!!! $1.34?? Then what?
Where does it end?!?! Where are the parents?!
All this illustrates the sillyness of QE. In some ways, monetary policy and global warming are similar: you pump up the reading with an accompanying increase in volatility.
Do the Math, make your Z's to order. Manipulate the numerator or denominator alone without a corresponding factor. QE is dividing by almost zero...whoops!
X divided by Y = Z
Problem? What problem? You fringe bloggers are always trying to stir up trouble
Insanity looks like this.
citifx is good
http://www.zerohedge.com/news/2012-12-13/citifxs-12-charts-christmas
This isn't complicated.
Draghi, like The Bernank, can provide liquidity (all he wants, in fact).
What Draghi, just as The Bernank, can NOT provide, is job creation, aggregate demand, balanced budgets or any true economic recovery.
The world is awash in zeee liquidity. Credit markets are at nosebleed levels. Yet the economy deteriorates in almost all developed (and many developing) areas.
Draghi can provide all the liquidity he wants to? I think not. The more he pumps into the market, the greater the chance for dissent in Germany. But Merkel requires everything to be quiet on that particular front. She needs the full support of her party next year, as well as every vote she can get.
So what is the ECB doing now, under the direction of Super Mario, and when will it stop?
That's right: 1) Printing, and 2) Never (so long as the ECB exists)
gold longs and dollar longs taking a beating together. odd.
apples and oranges. one is a commodity the other is a currency.
Question for the group: if I take a stack of 100's and keep it next to the tomato sauce cans in the cupboard, taking some out periodically to trade for other consumables, does that make USD a commodity for all intents and purposes?
Discuss amongst ya-selves while I shpritz.
You have to treat paper dollar longs gently. Bless their hearts.
yeah, it sucks to have money. I cry all the way to the bank. Liberace
Now, to Liberace, gold WAS a commodity.
Which is which ?
the commodity is the thing that has actual value. DUH! ;\
That has to be FRN. As a commodity, makes useful firewood, or toilet paper.
What The hell is going on?
Are those guys LEMMINGS?
ZH crowd is going mad as EUR is going up. They ask - How can this be possible with all that EU bashing by ZH for past 3 years ?
As EUR goes up, the collective cry of ZH in terror will amplify.
Not only ZH
The whole world agreed on one thing over the last 4 years. Keynesians, Austrians (one even wrote a book on it) Goldbugs, MMT's , peak oilers, Time magazine, Fareed Zakari all agreed that the EURO was and is worse then the dollar.
Typical
It's the price of EUR in USD that goes up. You think that one goes up and the other goes down, cause when you look at the relation you miss the fact that both are going down. It's just that one is faster than the other.
We know what you said is tru for all currencies - not just the EURO.
But that is not the message you get from ZH articles. Most are centered around - "EU going to disintegrate, EURO going to zero" etc.......
The non-stop EURO bashing and clapping here had gone for too long and anyone who listedned and acted on that shorting EURO against US Dollar , lost a ton of money.
Why waste time on that game? It's all rigged. Just betting on who prints faster.
nah gold is a currency.
Europe is in a recession. That ramp up in the euro just screws their exports. But hey, Europe has an inflation problem so now they can aford to buy some "decent food to eat", while they sit on the couch waiting for their economy to recover.
"But hey, Europe has an inflation problem"
Sure? In which country?
http://www.clearonmoney.com/dw/lib/exe/fetch.php?w=480&media=public:euz_...
Hey dipshit, Italy, France, England, How's that for ya! High cost of living and commodity prices... Want me to keep going?
High cost of living isn't inflation. There are two different parameters.
parabpolic ggb's
EUR 1.33 = TOP
SELL NOW !!!!! spx topped OUT yesterday @ 1447...
top=1.33562 methinks :-)
BREAKING:
Italian court delivers a verdict convicting Deutsche Bank, Ubs, Jp Morgan and Depfa Bank, for fraud because they induced the city of Milan to buy derivatives in 2005.
The banks will appeal the sentence.
there are going to be a lot of verdicts ... all together penalties will come max to cca 10% of profits bastards collected during fraudulent "business"
S&P earlier raised rating on Greece, no?
All these people CRAVE "yield". In cash.
They're pension funds, banks, companies, insurers, annuities, mutual funds, "non-bank entities", trading firms, brokerages, etc. They have to pay out in cash, regularly - to unitholders, policyholders, pensioners, shareholders, bondholders. They don't have the ability (or cash!) to put unlevered capital into a market just to try for speculative gains. They are levered to the hilt and probably their returns are predicated on some absurd 6-7 or 8% returns...
Us, we just speculate with our own unlevered capital. THEY can't afford ANY loss, however small. They are and have been in a desperate search for yield without risk. Which doesn't exist. Look at dividend payers! And momo stocks. And BONDS of all kinds...
Their definition of "investment" is something that gives off cash. Much different from speculation, which is what the market is calling for, and what RISK is forcing us and them into. No escape from risk.
I hope they go under - soon. They will if the central planners lose control of some of the juggling balls.
Who just bought a whole lot of Greek debt and wants to unload at a huge profit?
Pay a maximum price for a ticket on the Titanic.
If he has two thumbs I'll venture his name starts with an M and he works at the ECB, but I doubt he's looking to unload it at a huge profit (he's merely kicking the can).
He has a liquidity printer, too.
Clearly, SuperMario is not printing fast enough...
We are heading into year end so the Euro must go up so US corporations can book higher dollar denominated profits on what they did sell in Europe, so they can beat EPS estimates by pennies again, and allow he market to have its OH MY GOD BETTER THAN EXPECTED January rally.
This same exact story has played out almost every quarter for the past four years. It is a totally manipulated game so "in the know" front runners can profit off every dip and rip.
Oil spiked $2 for no other reason than someone bought a butload of contracts at $86 and wanted the extra cash to sell at $90 right away.
Nothing is going to change until we find out if bankers can bounce when dropped from the 78th floor.
Well then, everything must be "fixed" then. Well, that's a relief.
The race is still on; EURUSD above 1.33 only means Mario is losing to Shalom.
And here I was thinking only blacks (Gideon Gono comes to mind) were good sprinters...
I think we are going into the endgame ramp of the bond markets. All bubbles end the same way.
Summer 2011, death of the US$ ... 6 months later, US$ was up.
Summer 2012, death of the euro ... 3 months later, euro is up.
Currencies die hard ... what will gold do now?
check junl bond etf (JNK) approaching multiyear high rising wedge end ... fasten your seat belts crash is coming in 3,2,...
Top ticking....
The euro is seriously outperforming gold ... the market believes that the euro will last longer than gold. You can always insult me for stating a fact.
European stocks are also at or close to the top for the year.
doomers, mayans and hopium; we are in a roller coaster world dichotomy.
chaos theory based in economia on Schumpeter's Creative destruction and permanent innovation faces philosophia perennis...to define the trace of human civilization's ongoing thread.
Take your pick. Do you believe in the TOP DOWN "Grand Design/Great Enlightenment" meme of Human rational progress as iconised by FDR/Keynes at the beginning of the Pax Americana age; or do you believe in the BOTTOM UP vision of small man's incoherent, evanescent universe, based on haphazard human progress in brutal chaos mode fed on creative destruction thru innovation by transient Ubermensch, who are shooting stars that are part of Chaos dynamics as they never achieve anything sustainable.
Two approaches of the historical thread of man's voyage : chaotic illusion of civilization vs permanent onward progressing civilization.
the pathetic belief in the power of markets is being shown for what it is pathetic; up against ruthless briliant and incredibly powerful (can you print all the money you want) central bankers the market lies whimpering bitch slapped in the corner doing what is told; so do the bankers get there way? this old man says no, though ben & his pals can tame the markets they are no match for real life; by the way kids no one is; a real event (war civil unrest an election) will send the bankers & their plans into the toilet when? who knows how? my bet an italian election i could be wrong about the how but i am not wrong about real life winning