• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Europe Tumbles As Banks Lose All 2014 Gains

Tyler Durden's picture


Broad European stocks are down over 4% in the last few days but that hides the carnage among the most exuberantly excited names on the way up.  Portugal, Spain, and Italy have been battered in the last few days (despite everyone explaining how Portugal is so small, contained etc..). Portuguese bond spreads spiked 25bps today as the central-bank-inspired coupling of sovereign-health and banking-system stability drag each other down (Spain and Italy jumped 9bps higher in risk). European bank stocks have cratered and are now negative year-to-date.


European Banks red YTD...


As the high-beta equity markets collapse...


Portugal bond spreads blew 25bps higher on the day (despite someone's best efforts to rescue it in the middle of the day)


Leaving them at 4-month highs and its biggest 3-day spike in a year...


Don't worry though - the people on TV told us that it's all contained (except that doesn't explain why Spanish and Italian bonds and stocks are dumping too).

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Thu, 07/10/2014 - 11:33 | 4943459 pragmatic hobo
pragmatic hobo's picture

somebody is doing btfd ...

Thu, 07/10/2014 - 11:40 | 4943500 AccreditedEYE
AccreditedEYE's picture

Exactly. The Euro equity benchmarks all closed off the lows. Red is not tolerated. By Friday people will be saying "what's Portugal"?

Thu, 07/10/2014 - 11:46 | 4943523 StacksOnStacks
StacksOnStacks's picture

It's all Ronaldo's fault!

Thu, 07/10/2014 - 13:33 | 4944087 crazybob369
crazybob369's picture

He was propping up the entire Portuguese banking system all by himself. After his World Cup performance, I'm guessing severe pay cut. The banks are simply responding to that.

Thu, 07/10/2014 - 12:15 | 4943627 MountainsRoam
MountainsRoam's picture

I got a feeling the BTFDers are about to get seriously burned this afternoon or Friday.. The European problem is a contagion going hot, and seems Japan has done gone full blown collapse, even if their markets are in denail haha..


Thu, 07/10/2014 - 13:38 | 4944105 Lewshine
Lewshine's picture

Hobo, you are hilarious! "Somebody???". Well, SOMEBODY is going to close the indexes GREEN. Only an audience of IDIOTS could the Fed do this shit.

Thu, 07/10/2014 - 11:34 | 4943461 Dr. Engali
Dr. Engali's picture

I like the people on teevee. They always make the pain go away. I'm feeling kind of numb right now.

Thu, 07/10/2014 - 11:52 | 4943545 BandGap
BandGap's picture

I like bond spreads, almost as much as cheese spreads.

Thu, 07/10/2014 - 11:35 | 4943468 slaughterer
slaughterer's picture

Once Europe closes, Kev' will pound VIX to get ES green.

Thu, 07/10/2014 - 12:01 | 4943585 pragmatic hobo
pragmatic hobo's picture

i think everyone and his dog expects that ... but the market is due for a correction of some sort.

Thu, 07/10/2014 - 11:35 | 4943472 monopoly
monopoly's picture

"teevee" lolol. That is great. 

Thu, 07/10/2014 - 11:55 | 4943557 Kaiser Sousa
Kaiser Sousa's picture

shush up...
Bob PissOnME is explaining it all on CNBS right now...

Thu, 07/10/2014 - 11:37 | 4943481 monopoly
monopoly's picture

This is all so absurd. We should be down 500 points on the Dow not 100. Illusion of all is fixed. Man, this will get ugly. Just the timing.

Thu, 07/10/2014 - 11:53 | 4943551 flyingpigg
flyingpigg's picture

The DAx is already looking ugly...

It's about time to price in the Ukrainian issue. Germany exports a lot to Russia.

Thu, 07/10/2014 - 12:02 | 4943593 NOTaREALmerican
NOTaREALmerican's picture

Re:  We should be down 500 points

Just wondering why you think that?    Historically,  bad news is always good for the stock market because it means things will get better not worse.   Good news is bad for stocks because things will get worse.

Thu, 07/10/2014 - 11:38 | 4943483 NOTaREALmerican
NOTaREALmerican's picture

If these guys would just call The Fed and ask them what to do Europe could be as wealthy and prosperious as the USA.   But those socialists never learn that free-markets and capitalism are the correct way to go.

Thu, 07/10/2014 - 11:43 | 4943515 AccreditedEYE
AccreditedEYE's picture

I'm sure you have your Sarc button on, but it bears repeating to all newbies out there that sadly, capitalism isn't being practiced anywhere these days.

Thu, 07/10/2014 - 11:55 | 4943553 NOTaREALmerican
NOTaREALmerican's picture

Re:  capitalism isn't being practiced anywhere these days.

No, that's true.   It was only practiced by English Capitalism Monks for 28 months in the 19th century.   When they acquired all the wealth of the Shire - and were declared Supreme Winners of Capitalism - they realized the game was over but didn't know what to do next.  So, they looked in the Capitalist Bible and realized Ayn left out the "Restart" chapter with the instructions on what to do with all the worthless losers who, for some reason, refused to leave the Shire.    We've been stuck waiting for the Righteous Sword of Libertarian Justice to clean the losers from the Shire ever since.  

Thu, 07/10/2014 - 12:03 | 4943599 Oldwood
Oldwood's picture

Why is it that you can't seem to find your little collectivist socialist paradise? It must be stressful to live in a world as threatening as one that allows competition. Just keep pounding away at your little social justice drum and maybe someday, some benevolent dictator will step in and make your dreams come true.

Thu, 07/10/2014 - 12:29 | 4943710 NOTaREALmerican
NOTaREALmerican's picture

All the ISM's are fantasies.   What's so hard to figure-out about this?.   Capitalism fails for the SAME reason Socialism fails,  the assholes and sociopaths eat the dumbasses alive.    Is there something YOU can't comprehend about the assholes and sociopaths winning AND there being NO end-game RULES to restart?

Thu, 07/10/2014 - 13:10 | 4943983 Oldwood
Oldwood's picture

And your solution is?

Its unfortunate that you see those wining as assholes and sociopaths. Some are but many are not, but there is little doubt that those who try to advance, to win, will expend specific effort to do so, and if that constitutes a threat to you, an affront of some type, you are doomed. The world needs winners. Without it we would still be living in caves. But those who despise America would naturally defer to such a life, much as the Taliban. Utopia is everyone living in a cave with an AK47.

Thu, 07/10/2014 - 13:17 | 4944022 Anusocracy
Anusocracy's picture

The winners under governmentalism ARE assholes and sociopaths.

Thu, 07/10/2014 - 13:41 | 4944118 Oldwood
Oldwood's picture

Absolutely because they use the false constraints of legality to subvert what is supposed to be a free market. If on the other hand we simply abandoned the rule of law, there would be no such illusion. It would be simply a free for all, survival of the fittest. I think some would have a problem with that. Ultimately the only real protection we can have is as much smarts and knowledge as possible. Anything else is to rely on others, which  is NEVER secure. Instead, we are dumbing down society, creating dependency on the power of others, and fear of anyone who is smarter or works harder than most. It is comical that the attributes we seek in a leader is someone with no experience and naive.

Fear those the most who come to save you. Is that too cynical?

Thu, 07/10/2014 - 13:14 | 4944007 Anusocracy
Anusocracy's picture

Which is why I support Anarcho-capitalism.

Everything government touches turns to crap. - Ringo Starr

Thu, 07/10/2014 - 13:42 | 4944123 Oldwood
Oldwood's picture

Thats because all the government does is eat...and shit.

Thu, 07/10/2014 - 12:32 | 4943730 Jano
Jano's picture

I see free market to some dgeree in Russia.

Thu, 07/10/2014 - 12:37 | 4943760 NOTaREALmerican
NOTaREALmerican's picture

All "markets" are free until some smart-n-savvy person figures out how to manipulate it for their own benefit.  

Thu, 07/10/2014 - 13:12 | 4943994 Oldwood
Oldwood's picture

So lets just kill all of the smart-n-savy? Or just re-education camps as a first step?

What is it that you don't understand about "free"? Freedom is made up of winners and losers.

Thu, 07/10/2014 - 11:39 | 4943490 ohaitieaqui
ohaitieaqui's picture

DJ new record at closing, everything is bullish !!

Thu, 07/10/2014 - 11:39 | 4943491 ohaitieaqui
ohaitieaqui's picture

DJ new record at closing, everything is bullish !!

Thu, 07/10/2014 - 11:40 | 4943494 JustObserving
JustObserving's picture

The European Kevin Henry is on his summer vacation?

Thu, 07/10/2014 - 11:41 | 4943505 Temporalist
Temporalist's picture

Draghi!!!!!! <shakes fist>

Thu, 07/10/2014 - 11:50 | 4943535 buzzsaw99
buzzsaw99's picture

to the FEZmobile?

Thu, 07/10/2014 - 11:52 | 4943549 youngman
youngman's picture

Could be an interesting 30 year bond auction today?????

But I think this is all the World Cups fault....everyone is at the games...

Thu, 07/10/2014 - 11:59 | 4943576 buzzsaw99
Thu, 07/10/2014 - 12:04 | 4943605 orangegeek
orangegeek's picture

So now who wants to buy some USD???


The Euro is going to take a beating very soon.


And down voting this comment won't change that.

Thu, 07/10/2014 - 12:07 | 4943622 Jack Sheet
Jack Sheet's picture

I disagree and gave you an upvote to prove it.

Thu, 07/10/2014 - 12:06 | 4943618 Jack Sheet
Jack Sheet's picture

Not even a blip on the 3 year Dax chart. The Japanese Central Bank will keep buying.

Thu, 07/10/2014 - 12:10 | 4943637 Oldwood
Oldwood's picture

I don't know why I let this shit bother me but these headlines drive me nuts;


Claiming that economic confidence is drive M&A.

I look at charts that show me that this occurs every time the economy is about to go bust, so that means its good, right. And then I wonder what it means when large corporations with big cash think it makes more sense to buy up their competition, or at the very least buy markets rather than competing, and it tells me they see a static or shrinking market where there is no growth, only domination.

Thu, 07/10/2014 - 12:10 | 4943640 Herdee
Herdee's picture

Buy Greek and Spanish Bonds now!!! (and I have a bridge for sale)

Thu, 07/10/2014 - 12:10 | 4943644 junction
junction's picture

If the markets can only hold on until August, things will stabilize.  Everybody who is anybody goes on vacation for the month of August, including the guys who rig the stock and bond markets.

Thu, 07/10/2014 - 12:20 | 4943680 walküre
walküre's picture

Austria Alpe Hypo Real Banco Santander Espirito Santi Di Medici Douche Bancarotta Vaticano Sal Oppenheim Piedro Morgana Totale Destruzioni Capitale FIAT.

Thu, 07/10/2014 - 12:36 | 4943758 jubber
jubber's picture

Dow rises 115 points LOL

Thu, 07/10/2014 - 12:42 | 4943796 sbenard
sbenard's picture

Socialism SUCKS!

Thu, 07/10/2014 - 14:09 | 4944253 Bernoulli
Bernoulli's picture

Just watched Santelli commenting on investors losing faith in Central Banks (in the background you saw a foot with an ugly brown shoe... somebody was really relaxed there... lol).

Santelli is the only guy I like on CNBC.


Thu, 07/10/2014 - 20:32 | 4945721 MaxThrust
MaxThrust's picture

I am going long Popcorn

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