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Carnage Continues: EU Equity Futures Crash 7%, Bund Yields Plunge 20bps, Italy/Spain Bonds Dumped
It appears Greece matters after all - US futures are tumbling, Japanese stocks are tanking (as JPY is bid on mass carry unwinds), Chinese stocks are limit down and collapsing.. and now European equity futures are open and in free-fall. Bunds are well bid, down 20bps to 72bps.
- *EURO STOXX 50 FUTURES FALL 7% AT MARKET OPEN
DAX is down over 5%...
France's CAC and UK FTSE 100 are also down hard.
- *GERMAN BONDS SURGE AT OPEN, 10-YEAR YIELD FALLS 20 BPS TO 0.72%
- *SPANISH 10-YEAR BONDS DECLINE WITH YIELD RISING 43 BPS TO 2.54%
- *ITALIAN BONDS DECLINE WITH 10-YEAR YIELD RISING 57 BPS TO 2.72%
We await the hand of God Draghi...
Charts: Bloomberg
Bonus Chart: Nikkei 225 down 715 points...
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Oh shit bitches its on like DK up in this piece!!!!
up in this contagion-vulnerable universe!
It appears Greece matters after all...
+100
YUP.
Nothing to contain until tomorrow, technically.
Keep your shit cool people, this is all just speculation.
Dude the DAX is down 4%, France is down 4%, The Greek exchange isn't even open, China is down 25% the last 2 weeks, US equity is down 2% overnight, and gold is up.
And the Greek banking system is closed for a week. One whole week!
Keep our shit cool? You keep your shit cool I'm going to flush mine down the toilet.
Short stocks, short bonds, short cash, long gold.
It's game over and I'm fucking ready.
:)
sounds like a good strategy to lose.
My gold is already stacked. My stocks stay.
What would I change them for? Euros? hahahaha. Expect ECB to fold any second now..and if they dont, they dont.. be happy your home is stacked with food, goldbars and guns.
The ECB will run headlong into this ref.
60% of Greeks today want to keep EUR and reimpose austerity. If they vote "Yes" in their referendum, Syriza must resign and new elections called.
It will be chaos, but if the referndum goes "Yes" the ECB will turn back on the ELA and extend the current program a month or two.
If the referendum goes "no" then I have no idea what will happen.
The volitility right now is going to get out of control. Short EUR sounds like a good position to have, but if someone "leaks" "all is solved" your position just got wiped out, and you're likely way upside down.
Count me out until I can start buying hard assets for pennies/Pfennigs on the EUR/Mark.
Forget the run on the banks, watch for the run on the preciuos metals while they continue to surpress the prices.
On a side note the FED's have issued a terror warning in the US for the upcoming holiday, they should know for they will be the one's behind the dirty deed.
Time to pray.
The run on the banks have stopped -- Greek banks are closed.
The questions before us now are quite simple;
1) Will Greece default?
2) If so, will it liquidate its debts?
3) Will it leave the EZ?
2 is contingent upon 1, but 2 is not the necessary consequence of 1. See Cyprus.
2 is not contingent upon 3 either. Greece could leave the EUR and payback its debts in inflated currency. This in my opinion is a horrible idea as hyperinflation would surly set in, but in theory it could happen.
I think Greece's best course of action is 1, 3 and then 2 in that order. I get the feeling the Greeks are hoping for just #2 whereas the ECB is hoping for none of the above.
Does this mean Anne Margaret is not coming??
https://www.youtube.com/watch?v=FpO0OV4mfvo
It's a trade lies, trade cash, war, from here on out bitches!
Meanwhile they continue to surpress Precious Metals, that is the RUN that I want to see happen.
But make no mistake, the FED's issued a terrorist warning for the upcoming July 4th weekend, they should know for they will be the ones behind the dirty deed. They will need distractions to divert the blame of the collapse.
Watch and learn Children.
last week got news from all my friends working in IT departments for financial instituions all over the world that they got directives to prepare to be able to face a shitstorm of epical proportions. it was expected and if you think it wasn't u r just a plain ignorant retarted ass.
I see more can kicking
1) Lagarde will wait and not declare Greece bankrupt until the referendum, retracking what she previsouly said but who would notice?
2) Can Greece actually pay back its debt in another currency? I think either it has to pay it back in Euros or not at all.
3) I think people will cave out of fear from the unkown and vote Yes, despite Tsipras impoloring them not to...
I agree completely.
Greece will subject itself via referendum to slavery.
What would be interesting, at least I think -- would be if you had a election, and the anti-EUR parties (KKE, Syriza, Golden Dawn, Independent Greeks) take more seats than the pro EUR parties (PASOK, ND & to Potami) after a Yes referendum.
Conflicting mandates. Due to Greek election laws, ND would form a government from a minority position to subject the population to more austerity against the majority. Would be completely possible.
I think the Greek population is in denial -- they believe they can keep the EUR and return to the good ol'days of 2004. Then again, if they haven't figured it out by now -- they probably never will.
True, it's difficult to face reality, maybe some are waking up now that they can only withdraw 60 Euros a day but who knows they may well blame Tsipras for it instead of the ECB.
The long lines yesterday and the utter unpreparedness for what was bound to happen, left me wondering how many people actually know or care what their prime minister has been doing during the last 6 months?!
The latest survey on the referndum shows up to 20% of undecided voters which could still turn the tide to a 'No' in theory but as a Swiss who is quite familiar with 'referendum voting habits' I can say that people tend to avoid the unkown...
All that means is the Greeks want more unemployment.
If they vote yes, I would be completely content giving it to them.
Those guys are idiots, June was the month of forgiveness, from allah, that's how arabs work.
Note how you did not put a % next to Gold "is up" as you did when you used % next to the downs.
Without even checking gold I knew it was flat on the day and Silver was down.
Gold is going no where... The bubble exploded in 2011. It will be another 15 years for another group of suckers to come of age.
You'd have to explain to me then the east stacking up on it.
Yes, those 2 billion Indians and Chinese sure are going to feel silly with all that stupid gold while we have all the dollars.... Suckers....
You mean the same people buying the Shanghai? And BitCoin @ $1100?
Don't worry in a few hours they will probably push the S&P back up to green like they always do, its already gained back almost half of its initial drop. If not this week then surely new highs by this time next month.
Keep calm and buy the dip.
Yes, by all means, transform all available physical cash savings into electronic digits one can view on a screen, regardless of the spector of capital controls, sovereign bankruptcies or banks locking their doors.
Trust in the hidden hand of central bankers my friends, its only here to help push things along in an upward direction, so completely unrigged ;-)
The pictures at the ATM................................show Holiday makers.........................drawing out cash
DOES NOT LOOK LIKE MANY GREEKS IN THE QUE'S
JUST SAYING
Helllllll Yeahhhhh!!!
BTFD, unfortunately. Both sides have too much to lose by not coming to a deal. My take is a YES vote on the 5th....too many Greeks are going to decide they don't like living on 60 euros day and will vote out of short-term interest.
The great disasters of history are chock full of impossibly stupid mistakes, foolish calculations to human and social responses. Look at where we are right now. Who would have thunk we would have deliberately destroyed our society by a series of impossibly stupid choices....but we did.
I don't discount anything from happening. I only know that for me to actually place a bet on it ensures it will not go as I had anticipated. Other than just taking some defensive positions, I will remain an observer hoping to be able to anticipate only the most immediate threats and respond properly. At least after watching this going down for years, I may not know what exactly is coming and when, but hopefully I will know enough to respond properly, recognizing a real threat when I see it.
The Greeks have been living in delusion for so long and find themselves in such a deep hole, rationality may be completely gone. It seems that desperation is not conducive to reasoned rational thought.
True words. Are the Greeks any more delusional than us Americans? Are we more delusional?
American awareness of these Events feels pretty Limit Down.
It wasn't Greece, it was the fookin' spics!!
I'm so looking forward to NY Markets opening. My pittance 401k may get hit, but that's not where my money is.
This could be really entertaining!!
Per MarketWatch, 6/29/15, 0115 PDT, this is getting fun!
German market up damned near 15% on 10 year bond rates. Wonder how it holds to end of day?
16%
17%
[edit]
Italian banks not trading...
http://www.marketwatch.com/story/many-italian-banks-fail-to-start-trading-monday-2015-06-29?link=MW_home_latest_news
this is good stuff!!
Bout time. This nigga needs ta get PAID!
'dis
Beets holdin' up da liqqa sto, for sho!
Lube me up, I am going in!
Its ok. Yellen and Draghi got this. Everything is under control... If you believe me Ive got a great bridge you might be interested in buying. Water front property.
seems appropriate at this time because it was a similar era
"I've seen things you people wouldn't believe. Attack ships on fire off the shoulder of Orion. I watched C-beams glitter in the dark near the Tannhauser gate. All those moments will be lost in time... like tears in rain... Time to die."
Today the drama. Kneejerk selling and panic.
Next week the reality, the sellers will calm down. But they'll keep selling and everyone else will stay away.
Draghi, Yellen, all of 'em: they have no solution that will work beyond the next day or two. "Pissing at a tidal wave" will be the title of Yellen's autobiography.
Thanks for the yellen mental image, im going to go lobotomize myself now.
Is this the seven year cycle asserting itself?
According to Macquarie Research:
http://personal.crocodoc.com/lHeFs3w
China drama & Greek farce
Are Central Banks at the end of the road?
Greek and Chinese dramas question role of Central Banks…
- The latest developments in China and the Eurozone inevitably invite the question whether Central Banks are coming to the end of the road. Given the limited impact of their policies on real economies with stimulus largely being confined within walls of financial assets, has the time of reckoning finally arrived?
- As discussed in the past (here & here), the only sustainable LT outcomes for the over-leveraged and over-supplied global economy are either: (a) allowing the deflationary cycle to go through, thus eliminating global excess capacity in service and merchandise economies; (b) elimination of excess debt via some form of hyperinflation and/or co-ordinated debt cancellation; or (c) banning capital markets via nationalization. Given that neither of these alternatives is attractive, involving pain for either borrowers or savers; intergenerational transfers or courting sharply lower ROIC, CBs would rather kick the can down the road in the hope that a solution would be eventually found.
…and should CBs place monetary policies in neutral gear?
- PBoC’s half-hearted attempts last week to slow the pace of appreciation of the equity market have inevitably and predictably resulted in severe correction. The double-barrel reduction in interest rates and RRR on Saturday is a belated realization that it is courting a significant economic backlash. As discussed here, we do not believe that China’s de-leveraging is either possible or desirable. Having reached leverage of ~3:1, any debate about the evils or virtue of debt has passed a long time ago, and the only viable choice from now on is to continue leveraging, though perhaps at a somewhat slower and safer pace.
- In order to continue leveraging, PBoC has to make sure that: (a) there is no sharp correction in any of the key asset prices; (b) at least some asset prices are appreciating; and (c) there is no further contraction in nominal GDP. This requires a combination of exceptionally stimulative monetary and fiscal policies as well as trust that a country is not yet in a liquidity trap and that it is capable responding to stimulus in safeguarding nominal GDP. The game is no longer about reaching 7% real GDP growth but avoiding zero nominal GDP.
- The same dynamics are playing out in Europe. The battle is between politicians who have not yet grasped that deleveraging is no longer feasible, and the ECB, which is fully onboard. Whether Greece is allowed to exit does not alter the basic argument that the numbers do not work, unless leveraging continues.
China is at very early stages of stimulus
- We maintain that China is at an early stage of significant (probably the largest globally) stimulative action. We expect that over the next two years, RRRs would be reduced to historic levels (i.e. 5-6%); interest rates would be lowered to zero and fiscal spending would become much more aggressive (including multiple banking re-capitalizations). The only question is whether China would send a massive inflationary pulse through global economy or would aim for more moderate impact. Initially, the PBoC would be aiming for moderate outcomes, ensuring support for asset prices but avoiding more disruptive action. However as we progress into 2016-17, more drastic actions might be needed. In the meantime, we remain O/W MSCI China, as equities remain the least systemic asset class that can be leveraged, at least for now.
(D) backdoor elimination of capital markets via distorting capital price discovery all to hell while passively watching liquidity disappear at an accelerating rate. When liquidity vanishes completely, watch the whole shitshow blow sky high, blame it on the HF algos, and dont forget to use the crisis to justify grabbing the guns and all remaining civil rights.
Gee Bob, I've gotta go 'D", final answer. . .
RIDE EM COWBOY!
WE IS ALL CASHED UP.
TOlD YA SO.
Long USD
The chart resembles a CNN reporting of a new ISIS Buttplugs and Dildos flag in London.
https://m.youtube.com/watch?v=5y6qTLf0AI4
Anyone who thinks this shit is staying down hasn't been paying attention. Oh, I wish it would, but history has demonstrated that shorting is dangerous to your health.
Was it Merkel who demanded this mess better be fixed up before markets open on monday?
Yes, well she did kinda get what she asked
Where's the Afro-American woman kiting her flag up the pole in Charleston, SC? She was climbing to receive a $10,000/month EBT for life card.
Chapter Jackson - It's Free Swipe Yo EBT(Explicit) - YouTube
/sarc
I just spilled my popcorn bowl. Popcorn everywhere! I need to go get that Costco bag.
Keep your eyes open for the possibility of some major event, beyond the meltdown (if that's what this finally is), to divert our attention...
m
Good job there is no contagion!
and now the big hit from the pop group, Contagion: DOMINOS
Puerto Rico, then Spain, Italy, Portugal, etc etc
You forgot the USA after Spain, maybe before.
The fucker's creating a terrorist attempt during Americans Independence day will fall into a mouse trap.
The Greek stock market should remain stable today....
PS. It won't be opening.
Someone yesterday commented....."RELEASE THE CRACKEN !"
I say, "RELEASE THE GOLD PRICE !!"
this may sound like a dumb question but how long until a TBTF bank blows up because of this. How long until the CDS contracts and margin calls start? days?
TBTF means just that. Big banks blew up in 2009 and you, your children and grandchildren, assuming you are working and not in the 1%, are the ones that have got blown up.
Why do you think they brought in Glass-Seagal? They learned something from the Depression and put in rules to prevent it from happening again.
But the traitors, thieves, charlatans, fucking politicians who don't read stuff they pass and screw up the Constitution any time they can, repeal it as "This fucking time it is different"
They push non GAAP accounting on the unknowing.
Blankfein, Dimon, Obama, Buffet, CIA, NSA, Nuland, George W, Geitner, Paulson, Bernanke, all of you low lifes, your time is coming, you better run for the fucking hills.
Fuck the Troika!
Margin Call,mofo's.Someone somewhere's is over-leveraged...
Leaping Bankers next week or nailguns? Kredit-Anstalt moment?
I was thinking last week about PR,Japan,and Greece crashing at the same time....
And here come's China having trouble with their casino!!
They dump US Treasuries and link the renimbi to Gold by the end of the year.
America is toast.Stick a fork in it.Thank you Wall Street.....
Now FEMA camp everyone with two passports,ground all the Biz jets.....
Im long USD.
IT will be a good old fashioned crash. China wont dump treasuries cos all the money int he world will have no better home than US paper.
And that means that the US will once again luck out. Home free. Just when bond market was looking illiquid old fashioned stock market catastrophe will push money back into treasuries.
DUMB LUCK.
Oh no the Chinese stock market is going bear!
It is now only up 100% compared to last year. Will somebody please think of the children!
Oh no the Chinese stock market is going bear!
It is now only up 100% compared to last year. Will somebody please think of the children!
The price of gold might drop today, as a show of confidence in CB's.
1. Nothing bad has happened just yet
2. The referendum will decide in favor of Troika
3. CB's are ready to print and lend
fake fake fake
Wow look at all this carnage!!!
Seriously though Zerohedge needs to stop jumping on the panic train every few days. Markets are down less than 3% now which means nothing happened besides giving back the gains from the last week(s). Most European stock markets are still up over 10% on the year.
Better go 100% physical gold and post "gold bitchez" for another 5 years while others make 200% profits.
It's pretty simple. As long as QE keeps going in Europe you just buy every dip. When QE ends you leave the market for a while. At that point if you don't like cash, sure feel free and buy all the gold you can. Right now it's pretty silly to do though.
Wow look at all this carnage!!!
Seriously though Zerohedge needs to stop jumping on the panic train every few days. Markets are down less than 3% now which means nothing happened besides giving back the gains from the last week(s). Most European stock markets are still up over 10% on the year.
Better go 100% physical gold and post "gold bitchez" for another 5 years while others make 200% profits.
It's pretty simple. As long as QE keeps going in Europe you just buy every dip. When QE ends you leave the market for a while. At that point if you don't like cash, sure feel free and buy all the gold you can. Right now it's pretty silly to do though.
Exactly, now would also be good time to buy European stocks.
Especially Greek - such a deal!
SNB officially announced it intervened in the forex market. At least they admit it, not that it's any surprise. Considering how bloated their balance sheet is I guess they told themselves a few billion more or less won't matter. Anyway they intervened overnight so I guess the Euro would have been even lower now against the Dollar. Crazy and that just to keep some corps. happy...
http://www.bloomberg.com/news/articles/2015-06-28/swiss-franc-pressure-m...
And rates elswhere are also recovering, they're at it again!
so the negotiations continue... each side agrees to some sort of new can kicking extension, portraying it as major concessions, then the greek people vote in favor of austerity and staying in the euro. Syzia is finished. the global ponzi continues?
Looks like Dijsselbloem/ECB is going Cypriot'ievel on Greece's ass. Hope Russian kleptocrats don't have too much money stashed away on Greek bank accounts and/or need to take any losses, otherwise get ready for another MH17'esque airplane downing. http://blogs.wsj.com/eurocrisis/2013/03/21/how-much-russian-money-is-in-...
Thank goodness i dumped my 5,000 Ouzo futures on Friday. Safe at last.
On a serious note, I am really interested in seeing what GREK ETF does Monday.
I don't think it'll do anything (altho that's "something").
My guess is it'll be unavailable for trading.
You would think the banks would be front running the ppt on those bonds.
Anyway sharp reversal is expected as the contagion is further spread and the risk is transfered to the people.
US futures to be green by the close to prove there is nothing to worry about. DAX already 200 points above the lows. Feels like a normal day already
GET INTO THE GOLD WHILE YOU CAN STILL AFFORD TO BUT IT The whole project is ego driven... no different to every war (hot, cold or financial) that has ever been fought... what amazes me is how the bullshit continues on in this Fiat currency, nothing is as it seems, upside down world.. Maybe the whole thing is a game/matrix of deception and the people are in a deeper sleep that we on ZH realise.
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The downside is it's more a mass education programme than marketing,,, because aside from ZeroHedgers the financial IQ out there is well down the trickle down economic cascade and those people need to be educated to get some AU!
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The Greeks should ask themselves what the US would do. If they instinctively order their military to a border, then <BINGO>, answer found. Start a fucking war, Greece. Tell Europe if they want collateral, no fucking problem. Line those tanks up and head for the oil fields of Persia (thru Turkey). Settle the score with the Islamists, grab some collateral to pay off their bill with the EU, and for Chrissakes, entertain us!!!