The Good, The Bad, And The Ugly Six Charts Of Europe

Tyler Durden's picture


We would assume that tomorrow's ECB meeting will be the usual smug gloating by Draghi of how the market has turned around so exuberantly and implicitly that means all is well. While Willem Buiter just took that complacent perspective to task, we thought the following six simple charts of Good (well not terrible), Bad, and Ugly macro-economic data would simplify reality...


The Good (ish)

Well, it's a stretch to say that sub-50 PMIs are good but they have shown a turn-up in recent months. Also, the positivity enlightened by a rising EUR relative to the USD has been indicated by some as a 'good' thing - though obviously (as Mr. Hollande recently noted) not for all as exports hurt...


The Bad

The price of energy (in EUR) is high, very high, and wearing on spending and margins. This margin pressure is even more intensified as the region gets close to deflation in asset prices - not good... and sure enough, the EUR strength (that was apparently a good thing) is crushing export growth rapidly...


The Ugly

Domestic Demand and GDP growth is decidedly negative and while second derivatives are heralded as green shoots, they are most certainly not taking the euro-area out of recession any time soon. This is weighing increasingly on the population as consumers see their general economic situation and household financial situation as very weak over the next 12 months...


All-in-all, it seems, as we have seen elsewhere, that equity markets are pricing in a miracle as fundamentals reflect anything but. Though perhaps, the fact that European stocks and credit are now down in price on the year reflects an awakening to the solemn realities...


Source: BNP

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Wed, 02/06/2013 - 22:41 | 3222057 MrX
MrX's picture

uh oh...

this sums it ALL up nicely:


Thu, 02/07/2013 - 03:45 | 3222395 bobthehorse
bobthehorse's picture

Here's the truth.

We're fucked.

And the fall of Europe is deflationary.

Be careful with all that gold.

Wed, 02/06/2013 - 22:25 | 3222033 Banksters
Banksters's picture

Apparently, the Party Populares investigation, which has been busted taking and dispersing illegal funds, as well as tax evasion by the recipients, major relief is this:


In Spain, slow justice favors Rajoy PHew.  THat is relief.   When is the next riot/protest?

Wed, 02/06/2013 - 22:32 | 3222050 DoChenRollingBearing
DoChenRollingBearing's picture

A long time ago we bought bearings from Europe (Spain).  They were priced in euros, and were relatively cheaply priced for W European product (as one would expect from Spain).  These guys have another customer now in Peru (we could not make any money with them), but they cannot compete with Korean made bearings.

The vehicle bearing markets are changing!  They use more "Bearing & Hub Assemblies" (a bearing in a big & heavy steel housing) now, and those guys in Spain do not make them.  The Asians are WAY ahead of Europe and the USA making these kinds of pieces at decent prices.

Wed, 02/06/2013 - 22:38 | 3222063 zorba THE GREEK
zorba THE GREEK's picture

The Euro is a failed experiment. The only thing left for The EZ is to own up to that fact.

Wed, 02/06/2013 - 22:39 | 3222068 Popo
Popo's picture

In other news, America can't afford to keep its carrier in the Persian Gulf anymore.

I believe this is the turning point at the end of an empire...

Wed, 02/06/2013 - 22:53 | 3222093 Muppet Pimp
Muppet Pimp's picture

The problem from my chair is that DC is now fighting a two front war, one against it citizens finding out the truth, and a second against the rest of the world opposing their hegemony,


It is imperative for O that he convince you he is the saviour. Seems Jamie Foxx and now Chris Rock are witnesses to the second coming.  What a sorry bunch of losers.


Wed, 02/06/2013 - 23:03 | 3222104 zorba THE GREEK
zorba THE GREEK's picture

Most show business people are a bunch of socialist losers, until their

taxes go up dramatically to pay for it, that's when they have a change of heart

and become conservatives or move out of the country. Only problem with moving is,

there is very few civilized countries left that aren't overtaxing the wealthy to pay for

their own shortfalls of revenue.

Wed, 02/06/2013 - 23:45 | 3222151 DoChenRollingBearing
DoChenRollingBearing's picture

True, Muppet and zorba.

Thu, 02/07/2013 - 01:11 | 3222266 W74
W74's picture

Bring them legions back this side of the Alps. Britania? Germania? Dalmatia? Gaul?  Fuckit, let the "Barbarians" (i.e. freedom lovers) have those back.

Thu, 02/07/2013 - 04:51 | 3222409 debtor of last ...
debtor of last resort's picture

The Great Carrier Reef.

Wed, 02/06/2013 - 22:51 | 3222086 Rick Blaine
Rick Blaine's picture

Green shoots?

Thu, 02/07/2013 - 06:57 | 3222119 Muppet Pimp
Muppet Pimp's picture


Thu, 02/07/2013 - 07:06 | 3222448 HoaX
HoaX's picture

Dude, do you know what DDOS actually means?

It´s pretty much impossible for someone to actually DDOS you personally unless you´re running a server from your connection.

Just stop downloading pr0n and get a proper virusscan. Malwarebytes is decent and free so try that one out.

EDIT: Did you just edit it out?

Thu, 02/07/2013 - 00:03 | 3222172 tango
tango's picture

Europe will ALWAYS be broken since they (according to the very wise Reggie Middleton) make the following mistake:  They introduce the initial problem (debt) as the proposed solution. It's not only self-defeating but the only "solution" is more debt - the original problem in the first place.  I think the EU "leaders" understand this and in this sense they are after an answer but not a solution.  Kick the can until I get out of office 

Thu, 02/07/2013 - 01:43 | 3222305 q99x2
q99x2's picture

Hope they keep kicking the can until I'm outta here. I'm slow.

Thu, 02/07/2013 - 02:19 | 3222341 Lord Of Finance
Lord Of Finance's picture

"The good, the bad and the ugly' shall continue, 'for a few euros more.'



   Of course, 'a few' in central bank-speak means hundreds of billions. 

   And of course, 'a few' in fed-speak means a fistful of trillion dollar coins.



Thu, 02/07/2013 - 08:05 | 3222485 DangerClams
DangerClams's picture

Yeah, there's something happening with a fist, alright.  And to quote Ice Cube, with "No Vaseline".

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