European Stocks Slump On German Double-Whammy ; US Markets "Crossed"

Tyler Durden's picture

US and European stock markets (and European sovereign bond markets) have been sliding since early in the European morning overnight. The blame for the weakness appears to be coming from a double-whammy in Germany. First the German government resolved to push for the financial transaction tax (despite banks rejection of the proposal - well they would wouldn't they) and then later in the day when Germany's emerging coalition rejected the last-best-hope for shared sacrifice (or using more of Germany's balance sheet) - The Debt-Redemption Fund - leaving more pressure back on Draghi to save the day. Anxiety in the US is clear with VIX (and credit spreads) rising as hedgers are active - and of course, markets are broken with NASDAQ options prices 'crossed' acording to some sources.


Europe's markets are falling rapidly...


And the US is unhappy...


What's wrong with this picture...

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LawsofPhysics's picture

Well, now that the shorts have all been blown out...

just "free markets" in action. /s

FAZ me bitchez...

flacon's picture



Look here: 

LawsofPhysics's picture

Time to declare "self-help", oh wait...

Manthong's picture

It’s just good to know that Super Mario will do "whatever it takes".

knukles's picture

"Debt Redemption Fund"?
Don't sound like redemption to me, merely transferring the obligation form one pocket to another while calling it something Noble and Grand!

Fucking Doublespeak

Cult_of_Reason's picture

What is the explanation for this ask-bid cross?

Dr. Engali's picture

Somebody in the banking industry isn't doing their jobs. They need to create a little financial chaos to show everybody who is boss. There will be no thinking for yourselves. Kapish?

Ivanovich's picture

Nothing is wrong with that picture, unless the VIX is inverted.


Edit:  Ah, it is.  Crappy monitor! :(

101 years and counting's picture

WHEN the "markets" actually break, i'd be shocked if they dont drop 40-50% within a week.

sunny's picture

Hey dude, I'm with you on that call.  Say, if you don't mind me asking, what are you smoking?  Do you share?


orangegeek's picture

governments wanting to collect more tax to fuck up our lives more than they already have.


fuck you Merkel - stupid cunt

El Hosel's picture

Hank Paulson was in town yesterday, rumor has it that he plugged the VIX back in and he will bite the head off anyone ( in front of a live audience ) that trys to stop this crash. He also said "They don't ring a bell at the top", but I do.

ChaosEquilibrium's picture

FED buying FTSE-MIB.....AGAIN!!!


Always support the WEAKEST link(dominoe)!!!

disabledvet's picture

just as it took time for the Fed policies to take effect back in 2008 i think a lot can be said of the Taper Tantrum as well. we'll see but a lot of high flying beta names have seen some profit taking and generally that's not good for all the also rans just running to stand still. as markets go it still doesn't get any better than this though. prices are falling...America still waits on the "we're hiring signs" to pop up.

Kirk2NCC1701's picture

Germans are getting REALLY tired of bailouts, handouts and "solidarity" taxes. 

They've been doing that for the decimated East German economy for decades (not the "5 years" that Helmut Kohl promised).  And don't kid yourself, the Greece economy is getting a lot more from the German bailouts than they are returning to Germany by buying their products.  Aside from nice vacation destinations, getting Fetta cheese and more Greek restaurants in Munich, Frankfurt and Berlin, the Germans are not exactly 'benefiting' from Greece.

All good things come to an end eventually.  So do the "Free Lunches".

p.s. The German economy has been doing well in large part because of their trade with China, and selling a record number of Mercedes vehicles to the US, while the US is enjoying the Fed's "Wealth Effect".

slaughterer's picture

The Greek restaurants in Frankfurt largely suck, so no benefits from Greek bailout whatsoever.