European Crisis Over? Not So Fast

Tyler Durden's picture

As we recently noted, despite the incessant chatter that the worst is behind them and the unending belief that if European politicians repeat a lie often enough it will become truth, the following chart perhaps better than many others shows the sorry state that exists in Europe's core and periphery - no green shoots, no second-derivative shifts, and only the 'Merkel-Draghi' wager holding things together.



And despite US equity strength, European markets disappointed today with EURUSD back under 1.3000...


European stock indices closing red (not holding US equity-driven gains)...


and Italian and Spanish bond spreads leaking wider into the close (about 10bps off their intrday tights).



Source: Bloomberg and AEI

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Gamma735's picture

Pretend and extend will work until it doesn't.  Chart porn makes me all tingly in my special place.

mjorden's picture

Special place, like your gold vault? or veggie garden? or unmortaged house? or firing range? 

fonzannoon's picture

what's an unmortgaged house?

DCFusor's picture

The 4 I own, of course, on farmland with springs.  Nice places to bury the shiny, near the shooting range.  No shit.  And I didn't even do any of that because I think TSHTF - it's called homesteading.

Winston Churchill's picture

Got to keep up the pretense till the German election in September.

Don't think they can do it.

disabledvet's picture

This is big I think. My view has evolved (though interestingly not my conclusions) that "Bailout World" only benefits Wall Street and NO Western Government (nor Japan.) it does keep interest rates in the USA hammered to zero "pretty much forever." having said solving the "growth enigma" (something I've been doing with ease 4 years running now..amazingly enough) "is the agenda." I expect a large scale "harmonization of regulation" process to move "smartly" forward from here. To call it challenging on We the People is an extraordinary understatement though. "on the other side of that trade is Chimerica" and that thing is anything BUT chimerical.

Cult_of_Reason's picture

Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited.

– George Soros

Lord Of Finance's picture

Bingo!   (great soros quote)




Soros knows a whole lot about false premise too. He being a redistributionist, which is a liberal socialist mutation of the grand false premise of marxism.


He helped highjack and rig this system back in the 70's and 80's. He was a key architect for sure in corrupting the capitalist markets. Soros is also influential in financing the socialist cause, which are the seeds to the rotten fruit of much of the so-called financial reform that gets passed that only winds up creating more moral hazard. So when it comes to playing a system he helped rig . . .

He should know better than anyone.



DCFusor's picture

Soros is small time compared to his puppet masters.

Lord Of Finance's picture

Do some investigation, and you will clearly see that Soros is a master of free market disaster.

Kirk2NCC1701's picture

Sounds like a real Libertarian:  "Leave me alone to do my own thing, and use my brains & wits to make money."  Every man for himself kind of guy.  Unless I'm missing something, "Wo ist das Problem? "Donde esta el problem"? "Ou est le problem?" 

Where's the beef that some ZHers are having with him?  Please enlighten me.

TrumpXVI's picture

You guys worry too much.

Sudden Debt's picture

if you can't trust the guys you didn't elect, now who can you trust...

Lord Of Finance's picture

Its not so much that we worry, it's more like 'wonder'. We wonder how long can this go on. We wonder why nobody else sees what we clearly see. We wonder how can the assholes continue to get away with this obvious collusion/corruption. 


We know that this is basically the same story throughout history, but it is natural and healthy to wonder. Was Cicero a fool for wondering how the Roman state was to survive amidst their own enemy within. He knew history too. He knew he was a voice crying out in the wilderness. In spite of all that, he knew he had to speak the truth as did many OTHERS before him. 

tickhound's picture



Spoken like any good desperate vassal right as his faith-based-kingdom is being exposed.

Remain calm and PONZI will provide, is all you're really saying.  Have FAITH.

I ain't worried.  It's YOU who is worried.  It's YOUR herd that's been thinning.  And its a trend YOU CAN'T STOP.  ENVELOP and CONSUME while playing a game of musical chairs is primitive, stupid, and obsolete.  The herd doesn't even need to understand it to HATE it. 

You like it?  Then accept your role and GTFO of the way of the rest of humanity.   

TruthInSunshine's picture

 "You guys worry too much. Who wants to order pizza?"


-Dumb American


Sudden Debt's picture


jubber's picture

That 150 point DAX enema spike this morning sure did hurt though!

CPL's picture

France, Ireland and England. 


You're next.

Frank N. Beans's picture

You left off Greece.

Then again, you don't want to skew the numbers.

BlueStreet's picture

Eventually the zero interest balance transfer offers always stop showing up in the mailbox.  

MoneyThangs's picture

ZH it's time to swallow your pride and admit the world is in full out recovery - your just creating more shorts to send the S&P up another 30% y/y with this article.

The age of rational exuberance has come and all you have to do become the next Warren Buffett is to go mortgage your house, Buy as many shares as GOOG today at 830 and take a 5 year vacation then sell for 10000% gain and voila

akak's picture

Sorry, we already have one "Dr. Demento" Paul Krugman here, and one is really quite more than enough, thank you very much.

TruthInSunshine's picture

<----  Full Snark above

<----  Full Retard above

thisandthat's picture


Then use that money to invest in a scam, expose it, and benefit from legal status to keep your profit; so brilliant, you might need sunglasses to look at the mirror.

But he's right you know - that employment graph in Spain seems very bullish.

seek's picture

Far off topic... But old time ZHers, I made a couple discoveries today -- two recordings/playlists of RadioZero from Marla (sadly no voiceovers that I'm aware of.) (can be found googling "marla singer cobalt blue")  ("marla singer abuterol") - download button at the top of the page.

There's one more playlist "Onward" or "Onward and Upward" but I've not yet tracked down the recording.

Crime of the Century's picture

That's awesome - I never tuned in but did so love the snarky asides she brought to "Frontrunning".

Edward Fiatski's picture

"ECB, you're our only hope!"

Well, I personally hope for a rate cut tomorrow, or at least the acknowledgement from Draghi that We Are All Fucked, in order to accelerate the road to Victorious 1.28. :)

yogibear's picture

It's print and lie until it ends.

Greece, Spain, Italy and others can keep coming back to the ECB for more digital money.

For the US and Europe it's print until you drop.

Too bad you can't productivity improve.

Greenspan said jobes don't mater. Only the stock market matters. Keep the lies coming.

Nothing To See Here's picture

When they say that the worst or the crisis is over, it's us who fail to understand what they mean. And what they mean is that the crisis is over for THEM. They don't care or even know about people in the streets.

Winston Churchill's picture

Exactly.Just as when the Doctor says;

"this isn't going to hurt(him, not you)".

WhiteNight123129's picture

The question is not whether or not Europe is in depression because it is there. It is not either whether or not Europe goes out of depression, the real question is whether or not the depression stays as bad as it is or goes lower. If is stays as bad as it is then you have a beautiful deleveraging because the bubble is base money frightful and doing nothing will go into ~stuff~, equities, goods and services, Gold, you name it. Just stufff.


Seb's picture

The first graph looks like a swan. I am not sure if it is a black swan.

youngman's picture

I think the Swiss bankers are going to be the big winners herre...they will get all the stolen monies.....just like in WWII...

walküre's picture

The shit show is in full swing. At the start of this year they already say that next year will be better. Economy is in slowmo meltdown mode.

Who cares where the "markets" get pumped to when only half the working population has a job and companies have downsized 25 to 50% of their production because there's no demand?

We're entering the second and more devastating phase of the Greatest Depression. When all the money sloshing around in digi Dollars is not improving growth or morale, then nothing else will.

The only individuals I personally know who are not affected yet, who are not complaining yet are the few public service sector men and women who haven't received any notifications in the mail. They're still delusional and will be right up until the day that their offices are shut down due to cutbacks.

TooBearish's picture

The Euro Crisis is over...because the ECB said it was



Kirk2NCC1701's picture

I still think that there are TWO Europes, which need two currencies:  Northern and Southern.  That way they can still have duty-free trade zones, but two-tiered currencies.  It's the hybrid solution to a one-EUR vs. national currencies.