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Portugal Is Not Fixed: Banco Espirito Santo Bonds Collapse To Record Lows
Presented with little comment aside to remind the gung-ho stock-buyers who have been convinced (because the mainstream media has moved on from Banco Espirito Santo contagion concerns) that Portugal is anything but fixed. No government bailout coming means bail-ins and bail-ins means confiscation... Banco Espirito Santo bonds are collapsing today... down almost 8 points as they know this doesn't end well.
Chart: Bloomberg
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excellent!!!!!!!
off topic, but has anyone heard any more on this;
RT @JF991: Russia shoots down Ukrainian plane - From Russia.
stop telling BS
here for 5 weeks? fuck off troll.
My post above relates to news flash from dailyfx site i monitor for trades
See the quote from ZH...
Ukrainian Defense Minister Valeriy Geletey told Ukraine President Petro Poroshenko that an An-26 airplane was brought down today, hit by “powerful weapon which was likely used from the territory of the Russian Federation,” according to statement on presidential website. Plane shot down at height of 6,500 meters. The new defense minister said that it was impossible to target aircraft at that height with surface- to-air rocket launched from manpad, or man-portable air defense system, which is why “a more powerful anti-aircraft missile was likely used.”
MAN PAD missiles like the SA-7 and SA-9 etc tend to have a maximum altitude range of 4500 to 5000 metres. And that is really the max, the operator would have to have a near perfect firing solution to hit something at that height.
If (and I stress if) the aircraft was hit at 6500 metres, then a more substantial system like an S-300 or SA 8 Gecko was used.
That’s alright, as long as the remaining IGS (or GIS) if you prefer, are OK.
"They" say it was hit at 6,500 meters, too high for manpads, SA-12??
wake me up when they're trading for five cents on the dollar
Wake ME up, when the financial markets realize there isn't an entity big enough to back stop or "bail them out" of the mess they've created since 09!
That's when we might begin to understand what's going on, until then, it's just any day down the wormhole!! Enjoy the Trip:)
You will be awake well before then as the Credit Default Swaps Derivatives Market implodes.
Collapse baby collapse. Into the Wormhole we go, where the Laws no longer apply. Uncharted territory ahead, from here until the final implosion.
It is kind of like that Speed of Light concept. As you approach the Wormhole, accelerating toward Light Speed, time slows down toward a final stop at v = c. You never get there. You suffer for an eternity.
To an outside observer...from a non accelerated Frame of Reference...you are sucked into the gates of Hellfire never to be seen again.
Are you on that wormhole ride? I suggest that you leave that ride while there is still some chance of escape.
Doesn't matter. Equities are going higher. Till you get a big bump in TSY yields, this will continue to be the case.
Who cares about Portugal when we can manipulate markets to our advantage all the time?
In other news: nobody seems to mind anymore
Do you think Greece will default?
Russell 2000 (RUT) is not looking too perky...looks droopy.
needs oral from yellen
Oh jesus!
Let's bump it up a notch: Perhaps she wears dentures, ever get a 'gumjob?' BAM!
Uh, so what?
In the land of fiat funny money, it is all B/S and that includes fiat Bitcoins.
Look past the fiat B/S and see where the actual power collects. That is what is more important.
What Government forces someone to use Bitcoin?
I hate BitCON but the truth is that Bitcoin is not a Fiat Currency. It is NOT a declared Currency of any Government and backed by FORCE. It is a Private Currency.
Bit CON may be a CON but it is NOT Fiat. Fiat is a Latin word roughly translating to "Let it be so".
The only reason a Fiat Currency has any value is because there is a LEGITAMITE Government declaring that it has value. (Those are called the "Legal Tender Laws".) Let it be so...
If the issuing Government is illegitamite, or, if the issuing Government cannot enforce that edict upon the population, then the Fiat Currency becomes valueless and will rapidly be abandoned.
Get your terminology straight. You are read as IGNORANT.
I guess that means we have to sell more gold
Think of the yield these BES bonds must be paying! Where can I buy?
Ha. Must still be AAA+ rated.
Latitude25, they were indeed!
Then the prices declined and the markets had spoken and all 3 agencies finally woke up from their slumber and realised they actually get paid a million bucks each to keep a forecasting eye on such events!
Moody's was the first off the tracks on Wed last week to drop ratings by 3 notches late evening to CCC.
S&P was busy playing golf so could not reduce the ratings until Friday.
However, we must always trust these American Govt controlled agencies because they can see everything coming, in advance, no less.
Chistine Legarde of the IMF alluded to the fact that something big is set to happen. Perhaps the ECB and the IMF have better analysts than the American Rating Agencies???
Obviously Portugal is fixed. Gold wouldn't be dumping otherwise. Didn't you get the message? Duh...
You can watch the destruction of this Portuguese bank which has already taken the scalp of a 13 year veteran Swiss regulator's - FINMA - board member.
Board member of Swiss regulator steps down owing to BES linkFor the first time in 94 years since inception, the entire family has been removed from the board and management of Espirito Santo Bank. http://www.bloomberg.com/news/2014-07-13/espirito-santo-s-ricciardi-urge...
You may watch the destruction of the 2023 bonds here live of the group company: http://www.boerse-berlin.com/index.php/Bonds?isin=PTBEQJOM0012
The 2019 bond of the group : http://www.boerse-berlin.com/index.php/Bonds?isin=PTBENKOM0012
The 2019 bond of the subsidiary : http://www.boerse-berlin.com/index.php/Bonds?isin=XS0458566071
The last one is the lowst at EUR 10.00 today because it is the subsidiary of the group where the main crisis is and the bond will potentially default or get restructured.
One of the reasons there has been a major decline today in shares and bonds is because the family has sold some of their stake in order to pay for a margin call. which is causing a lot of unease amongst investors http://www.bloomberg.com/news/2014-07-14/espirito-santo-s-board-appoints...
Holy Espirito,
REMEMBER THERE IS NEVER ONLY ONE COCKROACH
From what I am hearing in this globalised and flat world (according to Thomas Friedman) led collapse is beginning at Espirito Santo bank...Nomura Japan has just threatened for EUR 100mn in loans to be returned back to them, at the worst possible time.
The Credit Freeze of 2008, Part Two, opening at a theater near you.
What do you believe to be the next domino to tumble?
Tall tom, cannot really put my finger on it as to what will be the next domino to fall. Risks abound. However, unless capitalist markets are allowed to work, which is that profitable companies shall survive and grow while fraudulent and loss making entities allowed to shut down, we shall see no major events except some sporadic events such as the Espirito bank saga playing currently which is too small from a small country with 10m in population.
India has too many risks and I see rising 'perfect storm' there over the next 1 year. I do not see much risks in America unless the Govt fails. Corporates have too much cash on balance sheets so cant fail. If Govt fails or defaults, also corporates will benefit. Zero rates are helping the banks rake in bigger gains and steam ahead. Middle sized and small sized companies shall fail if they have any debts because they shall not be bailed out by the US Govt. But they 'dont matter' only because they are not TBTF and they are not part of the stock markets.
Eurozone is a complete disaster which is why we see one by one all countries siding with Russia instead of USA. From Cyprus to Austria to Germany to Romania and some Eastern European ones side with Russia due to gas, due to US intervention in Ukraine and due to instability in their backyard due to US policies. EUR must break up but who am I to tell Draghi what to do. They will keep burning good money after bad until everything falls apart.
China is another magic wand who comes wherever there is a calamity and buys things for few cents on the dollar and supports ailing EU and US companies.
Japan will never fail. Africa has always been a disaster but when US has stopped intervening from Tanzania/Kenya 1998 blasts etc except for the Kenyan unrest currently, Africa has done very well. Since US funding/intervention stopped, Africa has been shining. With Chna's support, Africa has stabilsied in the last decade and will be even better for the next decade only if the US can stay out of Africa.
Latin America is doing just fine without US intervention.
If the Iran deal is signed, we will all be better off in a few years. We need their sanctions to be removed. They are useless and US has no right to use a pen stroke to create global unrest. What if Iran placed sancitons on US, that day is not far. Though Iran will not do nor has the global clout, but China, India and Germany etc have stopped buying stuff from US IT companies which is a kind of sanciton. Banks are leaving the shores of US which is another sanction. More and more trade is done in yuan which is another type of sanction. France is supplying destroyers to Russia is another sanction. Airbus does better than Boeing is another sanction. Among the Top 500 global companies US is drastically reducing is another sanction. US is being sanctioned by trade reduction and loss of employment by foreign companies in USA. Russia and others have been selling US Treasuries and buying yuan is another sanction. Iran has a solution to deal in gold and yuan to avoid sanctions. Iran has set an example on what to do if US places sanctions. US has over reached in so many spheres from politics to economics to trade that no one wishes well to US any more, sadly. It could have been the other way round as it was until Carter was President.
US will gradually keep slowing down on the global stage. US will be poorer due to its own policies. No one caused them as much harm as they have caused themselves in the past 15 years.
I have been worried this week for the Lagarde comments about a 'reset' this week or next. I am hoping that she is inconsequential just like DSK and hope that nothing will happen in July 2014. If July 2014 passes without any major 'reset' among various currencies in which I anticipate CNH to appreciate and USD to depreciate, IF AT ALL ANYTHING WERE TO HAPPEN, then we do not know what the consequences will be.
But I do not anticipate banks to fall apart because one of the benefits among many to allow banks to get several years to get their act together is that banks have become smaller for the most part, sold their non performing assets, stopped lending in order to get a grip on their existing loans and shrunk in size. These are all positives. Most banks are now nationalised or state supported hence they simply cannot fail.
It is impossible to point out from where the next black swan will arrive. Will it be a bank, an airline, a large business etc. But one thing is for sure, there will gradual increase in unrest due to rising poverty, lack of food, lack of jobs. But I put that blame on the door step of rising global population.
Asia will be a solid beneficiary due to China's rise but whoever will fight them, like Japan did, will face the same path of gradual decline like USA.
China does not need us but we all need China. They have really played good moves for the last 2-3 decades to save up cash and are using their reserves to not only rise but to buy the rest of the world. Imagine it is the only country with money today around the world!
+1 Nice post, lots of info packed in there. There are some who type a lot of words, but it's too often (TL;DR) drivel ....
Thank you for that perspective. I appreciate your efforts.