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European Bond Yields Accelerate To Fresh Record Low
The total and utter farce of European sovereign bond yields continues to accelerate on yet another round of rhetoric designed to entice yet more domestic financial institutions to monetize yet more domestic sovereign debt on to their delapidated deflation-devastated balance sheets and 'swap' with the ECB for freshly printed liquidity. As Central Bank front-runners, front-run each other in a race to the bottom, the rapidly Japan-ized EU bond market has seen risk (spread 10-20bps lower) tumbles and yields crash to new record lows this morning. EU bond yields have fallen for 3 years and the economy has cratered... so what is the purpose of ECB QE?
You have to laugh really...
As risk collapses too... (but note that in Draghi's mind risk premia have a long way to go so Sov QE makes sense!!??!!)
Meanwhile...
- *GERMAN 10-YEAR BOND YIELD FALLS TO RECORD-LOW 0.534%
Charts: Bloomberg
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Should have bought bunds instead of bullion.
I'd argue that you should have bought dividend paying equities. In any case, please stand by to buy any physical assets of real value to your survival. Sell all the equities/bonds you have to.
+100 best financial advise you can get and it's free
Or simply go to dry powder. "Stupid" always seem to overshoot to the downside before finding equilibrium. Punishing oil-producers and BRIC nations (more than two thirds of the world's population) will have consequences.
Hedge accordingly.
Okay, took your advice and am sitting on a shit ton of coke. Now what?
Buy a shit ton of rum to mix it with.
what about the Bitchez??
Spain 1.522%
Italy 1.768%
Port 2.458%
France 0.808%
Belg 0.796%
BUT Greece 9.575% HOD earlier now 9.25
So, the "let the majority eat cake while a chosen few get access to free money" monetary experiment continues...
Where are all the French historians? This will turn out just like it did last time. Gravity/bankrupcies will happen.
The US will never pay back it's debt. Add in the several hundred trillion the banksters are scheming to dump on the taxpayer and you have a mess.
they must go lower or the whole ponzi scheme blows to smitherines...
there is no purpose in ECB QE. that simple
meanwhile Ambrose Evans-Pritchards already paints the other eurozoners throwing Greece out of the EUR. oh, AEP's hate for the EUR knows no bounds
Just because you can't see the purpose doesn't mean there isn't one.
I suggest you read "The Art of War". The westerm bankers/oligarchs and their political puppets are circling their wagons around western fiat. This is punishing the rest of the world, especially oil-producers. Demographics always wins eventually, now tell me, what percentage of the earth's population utilizes the dollar or euro? What percentage of the earth's population has the living standard of America or the E.Z.? Even equilibrium will be a bitch in this case.
What percentage of animals on the planet are ants?
Central planners gonna central plan.
You know, I have this weird feeling that these bonds aren't being bought for their yield. Call me crazy.
it is called recycling!
Expect today's ISM and PMI to be at odds with each other to continue the "baffle them with bullshit" narrative.
Interesting visualization of the Euro debt crisis, should be interesting for Ukraine
http://investmentwatchblog.com/interesting-visualization-of-the-euro-debt-crisis-should-be-interesting-for-ukraine/
blah blah, as long as you're short the euro you're hedged, no brainer trade
Yep.
Notice how the US futures ignore Eurozone faltering PMI news and instead rise with FTSE, our partner in deception and owner of their own proprietary stealth printing operation.
UK refuses to give up their pound and join the Euro. No wonder
The article asks the question- what is the purpose of QE?
If the answer is to create economic conditions that will benefit all actors in an economy then Alan Greenspan is correct- QE failed.
If the answer is to prop up the market and create wealth for those who engage in speculation (investing is so yesterday) then QE is a phenomenal success.
So Draghi is simply making sure the players are happy. No more- no less. QE serves the speculators to reap their profits. When it implodes we get to pick up the losses.
Desperate bankers ... if there isn't another 2008/2009 like crises - then let's do everything to create another one.
"I have a lot more respect for the bankers - as they have at least a plan and a soul - while the 99.99% sheeple are just dumb and ignorant and empty beyond any means.
It's not the fault of the bankers."
Are you fucking kidding me? The banker bought Washington asshat and have been enablers enriching themselves all along. If you love the bankers, then you must really love the executioners and mercenaries because retribution is gonna be a bitch. It's not a pretty job, but many are happy to do it.
Low sovereign bond yields bascially means the lending Market knows it is sick and can't tell risk (shit) from no risk (shine hole).
Which does not bode well for stocks hitting the Himalayas. People would like to believe that moar Apple shares in portfolio means gravy down the road. But at these prices? In this economic environment?
Until the puss is evacuated from the patient, there will be no cure. Debt Jubilee or debt cum economic collapse.
Something the CBs don't want to address... Its been thataway since 6 years now !
"Reinflate, reinflate that dying horse's belly with moar bubbly froth rather than blood" -- stays the mantra!
Plus, it can't be set to rights in any circumstance that does not involve mark to market.
here are the insane lows of the peripheral bonds:-
Ital 1.743
Spain 1.49
Port 2.422
and I will include France ! 0.778
Makes absolutely no sense, I can understand to some degree why people are buying Bunds for the safely but the rest of these are fucking time bombs !!!
Europe is entering a massive deflationary spiral that is just getting underway...
http://www.globaldeflationnews.com/as-early-as-2011-ewis-analysis-warned...
Interesting article, this bit made me laugh:
So not one of these economists looked at global macro trends for the past 4 years? Seriously? How ridiculous and unprofessional are these people?! Have they no shame at all?