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European Stocks Plunge To 4 Month Lows, Suffers Worst Losing Streak Since 2014
European stocks (Euro Stoxx 600) are down 8.45% from their April highs, down 6.15% in the last 9 days and are down 6 days in a row for the first time since December... In other words, either a) Q€ is not working as Draghi et al. say it is; b) Grexit contagion risks are anything but contained; or c) The European economy is not recovering as per the talking heads and investors are being slapped into that realization.
Q€ gains gone.
And don't try and claim that Bund yields are surging because investors think the recovery is here (or inflation is picking up).
Charts: bloomberg
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Tyler, please explain to me why Greece is not in default with the IMF as of June 12th. Remember that on May 12th Greece borrowed EU650M from the IMF holdings account to pay the EU750 that was owed as of that date to the IMF. Reserves kept in IMF holdings account need to be replenished within one month. Here is link to the original May 12th Zero Hedge article. http://www.zerohedge.com/news/2015-05-12/greece-effectively-defaults-imf-using-sdr-reserves-repay-fund-1-month-countdown-begi I realize that the IMF can just change their rules but still.....
Because the IMF didn't call them on it, let it slide?
Just like NYC never defaulted back in the 70's. They just declared a debt moratorium.
No lender with any skin in this game wants an event of default. The amounts are far too large.
It's a great time to start a career in farming!
http://naturecoastpermaculture.com/2014/12/unemployed-try-wwoofing-work/
I'm thinking Captain CAAAAVE Man myself....
Because a default would mean that the IMF doesn't get cash. Instead, it would get either nothing, or bonds of....wait for it....a defaulted government, i.e. worthless.
The repercussions of such a move would be drastic to the Euro hegemony, so instead, they will milk Greece and its people for as long as they can.
The Greek media explained that. First this was a decision with the IMF. Now, every member of the IMF needs to have 2 accounts in their Central Bank for transactions with the IMF. The one account is the annual membership and the second is a "special reserve" account. From that second account, the money were taken not from the first one. That second account needs to be replenished some time in the future.
Meh.
Bullish...
Same shit, different day.... They just need a better PPT.....
they did manage to save DAX 11,000 by a hair tho / s
This cannot be allowed to stand. Why can't European companies borrow money for nearly free and buy back their stock? That has worked so well in the land of the free.
Or better yet, ECB should agree to buy 100 billion Euros worth of European stocks a month to fight deflation in stock prices.
Stock Buybacks Hit New RecordsU.S. companies announced $141 billion of new stock buyback programs last month (April 2015), the highest level ever for new buyback programs during a single month and an increase of 121% from April 2014, according to a count by Birinyi Associates Inc.
http://blogs.wsj.com/moneybeat/2015/05/07/stock-buybacks-hit-new-records...
repeat
In EUland they prefer to sell their soul directly to the ECB and cut out the middle man.....
It says something when stock buybacks are at record levels yet the markets keep sliding sideways to down. What happens when the buybacks end and there's nobody left to prop up prices?...
The quickest algorithm out wins!
or d) all of the above.
Well at least they don't have 'worst since Lehman' going for them.
Talking about talking heads .....
https://www.youtube.com/watch?v=Iozj_jXNBNY
Look at the China data...now believing that is one thing...but it sure looks to me that they are not making as much gadgets as they used to for the world to consume...
But Draghi has his bazooka on full blast! I thought QE worked!
We have end of quarter and end of half (calendar) year coming up - this won't stay down.
DavidC
IN 2007/2008, Europe tanked first. Just sayin'
U.S. stocks are not far behind. The Dow Jones Industrials and the S&P 500 have apparently begun to collaspe. The Dow Theory of non-confirmation says that a major trend reversal is underway...
Dow Theory
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
Dow analysis
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...