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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Wed, 03/06/2013 - 13:27 | 3305234 Gamma735
Gamma735's picture

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

Wed, 03/06/2013 - 13:30 | 3305243 mjorden
mjorden's picture

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

Wed, 03/06/2013 - 13:55 | 3305304 fonzannoon
fonzannoon's picture

what's an unmortgaged house?

Wed, 03/06/2013 - 13:58 | 3305310 Unprepared
Unprepared's picture


Wed, 03/06/2013 - 14:04 | 3305336 DCFusor
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.

Wed, 03/06/2013 - 13:56 | 3305307 Winston Churchill
Winston Churchill's picture

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

Don't think they can do it.

Wed, 03/06/2013 - 16:02 | 3305838 disabledvet
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.

Wed, 03/06/2013 - 13:29 | 3305239 Cult_of_Reason
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

Wed, 03/06/2013 - 14:00 | 3305292 Lord Of Finance
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.



Wed, 03/06/2013 - 14:06 | 3305342 DCFusor
DCFusor's picture

Soros is small time compared to his puppet masters.

Wed, 03/06/2013 - 14:38 | 3305387 Lord Of Finance
Lord Of Finance's picture

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

Wed, 03/06/2013 - 15:22 | 3305657 Kirk2NCC1701
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.

Wed, 03/06/2013 - 13:30 | 3305240 TrumpXVI
TrumpXVI's picture

You guys worry too much.

Wed, 03/06/2013 - 13:34 | 3305254 Sudden Debt
Sudden Debt's picture

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

Wed, 03/06/2013 - 14:11 | 3305364 Lord Of Finance
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. 

Wed, 03/06/2013 - 14:14 | 3305371 tickhound
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.   

Wed, 03/06/2013 - 15:22 | 3305654 TruthInSunshine
TruthInSunshine's picture

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


-Dumb American


Wed, 03/06/2013 - 13:34 | 3305251 Sudden Debt
Sudden Debt's picture


Wed, 03/06/2013 - 13:39 | 3305262 jubber
jubber's picture

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

Wed, 03/06/2013 - 13:41 | 3305269 CPL
CPL's picture

France, Ireland and England. 


You're next.

Wed, 03/06/2013 - 13:42 | 3305271 Frank N. Beans
Frank N. Beans's picture

You left off Greece.

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

Wed, 03/06/2013 - 13:43 | 3305272 BlueStreet
BlueStreet's picture

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

Wed, 03/06/2013 - 13:49 | 3305280 MoneyThangs
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

Wed, 03/06/2013 - 13:50 | 3305290 akak
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.

Wed, 03/06/2013 - 13:51 | 3305293 TruthInSunshine
TruthInSunshine's picture

<----  Full Snark above

<----  Full Retard above

Wed, 03/06/2013 - 14:23 | 3305405 thisandthat
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.

Wed, 03/06/2013 - 19:36 | 3306685 Notarocketscientist
Notarocketscientist's picture

I'm on it!

Wed, 03/06/2013 - 13:47 | 3305284 seek
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.

Wed, 03/06/2013 - 15:36 | 3305723 Crime of the Century
Crime of the Century's picture

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

Wed, 03/06/2013 - 14:03 | 3305325 Edward Fiatski
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. :)

Wed, 03/06/2013 - 14:14 | 3305326 yogibear
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.

Wed, 03/06/2013 - 14:18 | 3305390 Nothing To See Here
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.

Wed, 03/06/2013 - 15:30 | 3305696 Winston Churchill
Winston Churchill's picture

Exactly.Just as when the Doctor says;

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

Wed, 03/06/2013 - 14:19 | 3305392 WhiteNight123129
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.


Wed, 03/06/2013 - 14:29 | 3305432 Seb
Seb's picture

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

Wed, 03/06/2013 - 14:38 | 3305478 youngman
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...

Wed, 03/06/2013 - 14:41 | 3305490 walküre
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.

Wed, 03/06/2013 - 15:07 | 3305583 TooBearish
TooBearish's picture

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



Wed, 03/06/2013 - 15:26 | 3305673 Kirk2NCC1701
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.

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