European Bank Bloodbath Crashes Bond, Stock Markets

Tyler Durden's picture

Just as we warned, not only is it time to panic but the panic is 'contagion'-ing over into the sovereign risk market. European banks are in freefall, down over 4.3% broadly, crashing to 2012's "whatever it takes" lows.

European bank risk has gone vertical... Today's spike is the largest since April 2010


TBTF banks are all seeing credit risk explode - to 52-week highs and beyond...


Slamming European bank stocks back to near "whatever it takes" lows...


Dragging the entire European stock market down 24% from its highs to 16-month lows...


And that risk is syetmically crushing peripheral sovereign bond markets...


Time to panic? You betcha! All eyes are focused on the synthetic run on Deutsche Bank...


So since Europe unleashed their "Bail-In" regulations, European banks have utterly imploded with Deustche most systemically affected as it seems more than one person is betting that Deutsche will be unable to raise enough capital and will be forced to haircut depositors on up in the capital structure.

Finally - for those desperate dip-buyers hoping for another move from Draghi - don't hold your breath... As Deutsche Bank itself warned, any more easing by The ECB or BOJ will only hurt banks (and certainly Deutsche). In other words, they are all officially trapped now.

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Cangaroo.TNT's picture

220, 221.  Whatever it takes.

Haus-Targaryen's picture

None of this matters until

1) Despire QE Spain is paying north of 800bps for 10 years and Italy is paying north of 700

-- or --

2) People start getting surprise money in their bank accounts

new game's picture

last gasp of the keynsian dream, copter cash...

BaBaBouy's picture

<<< EU In A Politico Death Spiral...

<<< Covert Plans Of Sharia Law Will Save EU

NoDebt's picture

Despite the lopsided voting (so far) that was actually not an easy choice.

pods's picture

So that wasn't a Baby Ruth in the pool?

highandwired's picture

<---- "Deutsche" is Lehmann 2.0

<---- nothing to see here move along



The death of Deautsche can't come quick enough.  Almost done my popcorn!  Hurry up and die!

Bangin7GramRocks's picture

Press conference. Promises of more better stuff. All fixed for another 6 months. Buy! Buy! Buy!

Soul Glow's picture

You bulls are getting slaughtered!  Long because China FX reserves!  


azusgm's picture

We are in the jubilee year which runs from mid September 2015 to early October 2016. This is the time of release from debt. I guess we'll get to see how debt-based currencies work in such a time.

Tarzan's picture

I hear the sounds of  desperation, fangs, claws and a nasty snarls, the beast is cornered. Gear up for the death throes of FIAT, as shit begins to fly in every direction!


"I'm a pretty dangerous dude when I'm cornered.""Yeah," said the voice from under the table, "you go to pieces so fast people get hit by the shrapnel."

Douglas Adams

Leopold B. Scotch's picture

"last gasp of the Keynesian dream, copter cash..."

As if.  The narrative is the European Mistakes was they did too little.  I mean, look at Krugman. Every word is a set up for when the U.S. fails to say, "told you so" and "I always said it needed to be at least 10X that to work".

The new narrative will not be that the Central  Planners are frauds, it will be that their hands were too tied.   Let the econ Authoritarianism have more control!

Tarzan's picture

Reminds me of Obama and the excuses for the affordable care act making things less affordable...

well, it's more affordable then it would have been.....

It would have worked if....

We need MOAR of the same!

LawsofPhysics's picture

"and the globalists blinked"...


You need a new tinfoil hat, the reception is bad for your current one.

Sanity Bear's picture

when co-conspirators start airing their dirty laundry in public, you know it's about to get REAL messy

Tall Tom's picture

DeutscheBUNK is falling off of a cliff...


Down 11.33% as I post.

PTR's picture

Hockey sticks?  Ooohh.  Fun times.

gatorengineer's picture

Deutsche cant and wont be allowed to die.  The life saving also wont be public......  I would imagine the Fed and ECB have put a few hundred B in already with whatever it takes.....  There should be a metric shit ton of money coming out a white hole somewhere (Deutsche was the black hole)....

RobD's picture

Is the Merkel or Clinton in your avatar you bastard! My eyes, my eyes!

Ghordius's picture

I have to differ on that. talks of "sharia law" in european countries have an origin: the UK. where even the Archbishop of Canterbury was in the press talking that "he would find it ok" a few years ago. as a reminder, that Archbishop is now retired, but his function is of being the highest priest of the Anglican Church, right below the Queen, the Defender of the Faith

if you take Germany as example, this whole narrative breaks down. no German politician ever spoke of not integrating foreigners

this "German style" integration policy is quite common on the continent. it means that everyone is expected to speak a national language (some countries have several of them) and conform to the "local mores", the local, national "way of life"

if you take France as example, it's even worse, then France is the champion of (F. Revolutionary) "laicité", sometimes incompletely translated with the more standard - here - secularism

now, from a continental perspective, neither the US nor the UK have a secularistic attitude. they are both a kind of haven for religions

the famous quip was that the UK has as many religions as France has cheeses. in both the UK and in particular the US, religion can be "in your face", and religious "zealots" (including atheists) "have their madness, and the freedom of their madness"

not so in a "properly" secularistic country, to which you would have to include Turkey (before Erdogan), where religion has to be kept strictly private, and intrusion of religion into the public life and the state are a no-go, a sanctioned strong division between the two that includes the frowning on even small displays of religion affiliation in let's say a public school. this is really quite common across the whole of the continent, with Russia and others now "breaking rank" and re-establishing the role of "national churches" in public life, best seen with the Russian Orthodox Church and it's ties with traditional state institutions like the Russian Armed Forces

in short: secularism is where the president is not allowed to do a kind of public pseudo-prayer like "May God Bless Our Country"... by law and custom

and in a secular country, even the talk of "sharia law" would be deemed as insane: everybody is supposed to be under the protection of the national laws, not the religious ones

just saying

Oldwood's picture

Well, if you are correct about Germany, then Germans have a real mess on their hands as the leadership of Germany does not appear to have any such intentions of secularizing the Muslims. They apparently believe in doing whatever it takes even if that means the German identity evaporates from the face of the earth.

BaBaBouy's picture

""integrating"" Is A Pipe Dream, A Farce...

If  you believe  that will happen, its like you believe Old Warren is working for you...

Ghordius's picture

perhaps it depends from the perspective? it's very easy in western Germany to find a young German that tells you that the younger Turks are now integrated, and considers that as a fact. I'm not kidding you, and we are talking here about a few millions, more people then the new batch of refugees. check on that before you dismiss it as a farce, this is a very common German attitude, regardless of what you think about it

Haus-Targaryen's picture

Ghordo is living in fantasy land. 

As someone in Germany, you can see a marked difference between Germans & Turks, even after 3 generations.  To say otherwise is just stupid. 

You aren't fooling anyone here Ghordo, save yourself.

Ghordius's picture

you see that, yes. and what about the "Jung Sozialisten" that you were talking about, further down? they are Germans too, aren't they?

Haus-Targaryen's picture

Yes, they are Germans as well, every nation has its mentally disabled they have to take care of.  Its a shame in Germany such a mental disability is considered a political philosophy where the newspaper for said mentally disabled gets a sweet-heart deal on a new piece of property in Berlin funded by the tax-payer. 

gatorengineer's picture

Sharia doesnt allow interest, not sure how it would view NIRP.........  Serious comment by the way.

azusgm's picture

All the bankers would have to do to make the concept sharia compliant would be to label the NIRP charge as fee.

The way I understand it, sharia-friendly mortgages are set up along the lines of a zero-coupon bond with the mortgage trustee as the new owner and the mortgager as a second purchaser. Usually a mortgager agrees to make payments on a promissory note with a nominal principal paid over a set term at an interest rate. Monthly P+I payments are determined by an amortization schedule. IIRC, a sharia-compliant mortgage is set up in a manner in which the trustee purchases the property and resells it at a price that is calculated to include the amortized interest. It is a sham arrangement, but technically does not include interest.

gimme soma dat's picture

It surprises me that no one is throwing fits about "Sharia compliant" home loans in the USA. 

curbjob's picture

We waited in abstract misery, the hot tub not operable as the pump had failed months ago, the 740i stranded in the sagging 4 car port as brake pads had all but disappeared from the black market, the wine cellar empty but for the last half bag of weevil infested rice;


and still the helicopters never came.

Ode of a momo trader: circa 2016

yellensNIRPles's picture

^ This was an excellent read. 

May I also suggest Nicolaus Copernicus' Monetae cudendae ratio (On the Minting of Money)

It is a short work, however there are gems of information in this piece that have helped move me closer to the true understanding of money on a fundamental, physical level.

THE DORK OF CORK's picture

Free money is not a Keynesian policy.

They expect something in return.

Go to war etc etc etc.


Truly free money is much less wasteful.

You can begin to use existing capacity rather then expanding ever outwards with all its additional costs.

walküre's picture

Hey Haus, see how innovative Germans can be when it counts?

Guys built a Panzer float to symbolize the German Defense Against Asylum Seekers.

Forget law enforcement and authorities. It's up to you to defend your home land. It's a good start to something much bigger.

Germans have taken the state for granted for too long. Time to clean house.

Of course the German state of today is running all stops on any such efforts and comes down hard with all its might on Germans who love their country and want to defend their country.

Haus-Targaryen's picture

Germany is going to come down hard on patriots before things get better.  The same thing is happening in every other Western nation at this point as TBTF do everything that can to flood the west with 3rd worlders to distract us when the pull the plug. 

That beauty in the photo is based off of a Tiger II, not the Leopard.  Read into it what you will. 

The political landscape in Germany is about to change dramatically.  As soon as this shit weather we've been enjoying the last two weeks breaks, and the 3k per day turn into 10k again ... all Hell will break loose.

cossack55's picture

Looks more like a Tiger 1 to me.

Grimaldus's picture

Yeah, kinda. The Brits have the only working Tiger left in the world and dusted it off to be used in the 2014 movie "Fury" starring Brad Pitt.

Very bad ass tank. I thought the movie was very good too. The Tiger slays Sherman tanks like they are nothing.





BarkingCat's picture

Maybe German patriots should make contact with some nationalist groups from Eastern Europe and ask them to take on the invaders.

Since the German government feels that outsiders can behave outside of the social norms of Germany then they would not object if some Poles show up and start to beat up on Muslims. After all it is in their national tradition to be at war with them.

I would also suggest Russians, Belarusians, Serbs and Ukrainians  but they need visas.

...but I think Bulgarians and Romanians might enjoy a little activity as well.


Haus-Targaryen's picture

The problem is the German government does not want white, educated Christian foreigners.  They brown/black uneducated Muzzies. 

See their treatment this past year of Ukranian refugees. 

I was told at an AfD event when I challenged some Junge Sozialisten that I was not the "right kind" of immigrant Germany wanted. 

Contemporary collectivists all suffer from some strange form of mental distorder I cannot understand.

walküre's picture

AfD will need funding (less of a problem imo) and good talent willing to put their names up for candidates. This is where the problem lies and it may be a hurdle for the growth the party will enjoy.

They will have a huge success in March and my concern is that they cannot technically handle the responsibilty the electorate will undoubtedly give them.

Money (easy) and Manpower (not easy)

How far from Munich are you?

Ghordius's picture

AfD, for many Germans, has nevertheless two main issues: the "odor" of being "Moscow-controlled" and, after the recent split, being Far Right, with "Far" understood as being anti-constitutional

he sounds a bit Bavarian, doesn't he? that was my first impression, years ago. btw, in this context, note that the head of the Bavarian Christian Social Union (that's the right/conservatives, there) just recently went to Moscow and was received by Putin

Moscow, for good or bad, regardless of any pro-Russian or anti-Russian stances, is taking a kind of role of being the new HQ for the "european Right". of course, not in Poland or Hungary. just where "it takes hold". and that differs, depending from the history of the political parties and countries

Haus-Targaryen's picture

So AfD is Moscow controlled, and die Linke, die Grüne, SPD, FDP & Union are DC controlled. 

Pick your poision.  Although, I think Putin would love nothing more than to sever the German - US love affair and bring Germany into its circle of influence. 

Hey, come to think of it, that is exactly what Mr. Friedman @ Stratfor said last year. 

Now, as the DC backed political establishment keeps seppuku'ing Germany with these waves of 3rd world immigrants, and all DC backed political parties support such move, and the only party that thinks this is nuts is the "pro Moscow" one -- it seems Mr. Putin is simply giving the DC backed political establish enough rope to hang itself with, while providing the alternative which is common sense. 

Its actually a genius move -- the DC establishment in Germany supports politics that are complete suicide, while the "Russian backed" AfD just has to keep speaking the truth.  Every day that goes by, the AfD gets more credible and the Russians gain a little more influence in Germania.  All he has to do is sit back & wait. 

Now to be wise, if anyone thinks that Russia is "supporting" a German political party that is trying to save Germany because Russia cares so much about Germany -- you'd be equally as foolish as Ghordo talking about how the Turks are completely integrated into German society.  Russia is doing this because it is good for Russia, not because it is good for Germany.  Right now both the good of Germany and the good of Russia align.  If (when) they were to ever diverge -- don't think for a second Putin wouldn't be throwing Germany under the bus to save Russia like the US is throwing Germany under the bus to support US hegemony.

Ghordius's picture

Haus, I wrote "the "odor" of being "Moscow-controlled"". it's the perspective of the voter that matters, not what you or I think

actually, the ties that "Die Linke" has to Moscow are even stronger (to the old left opposition, of course), and it's difficult to paint them as "DC controlled", them being extremely critical of DC

Herd Redirection Committee's picture

Russia = Ostrogoths

Germany = Goths

The idea of the peasants of these two great lands pitted against each other by financiers (as in WWII) makes me sick.

Ghordius's picture

nope, the Goths followed a different path that never crossed Russia

the western Goths were called this way because they went to Spain: Visigoths

the eastern Goths were called this way because they went to Italy: Ostrogoths

Grimaldus's picture

the DC establishment in Germany supports politics that are complete suicide


And there it is.

The progressive stupid, it burns.





Ghordius's picture

Haus, without wanting to have a fight about it with you, an alternative explanation: malleability

where those young socialists might have a point, in the German context: who integrates better, in the German sense?

who will learn the German language faster? who will conform to German society while keeping their heads down and accepting a low-rung socio-economic status?

further, those JuSo have possibly told you that German law does not see asylum seekers as having the same status as "immigrants", plain and simple. subject to change, at the moment, including the planned mass-scale deportations

a nasty Jung-Sozialist might even fop you and say: Haus, we'll deport... you, in a few years. for "not conforming" and "not speaking German properly"

but stupid jokes aside: you look at the whole through the lens of "White Race", "American Style". meanwhile, you might have noticed by now that "race" is "handled differently", in europe

the typical Saxon does not see himself as a "member of the white race", he sees himself as distinct from the Franc in Franconia, the Bavarian in the rest of Bavaria, etc.

or, even in Saxony itself, just look at the local rivalries among the two main cities. or try to find someone from Cologne going for shopping in Frankfurt, or the other way around

typically, you don't even get statistics as in the US according to race, and culture trumps race any time, and that was present even while the Nazis were ruling and had "race hygiene laws"

you told yourself the story of your girlfriend from the East of Germany looking for a new apartment in Frankfurt and the landlord noting: "you are not from here, are you?"

the American equivalent landlord would have noted that she is white, period, as opposed to "brown" or "black"

I have myself witnessed German landlords discriminating for a Turk speaking excellently the local dialect versus/against someone that is a German but speaking a different German dialect

why? excellence in dialect denotes excellence in conforming to local sensibilities. with the local "in group" being defined in culture, not race

now, whatever differences we have, be frank (comes from "speak like a proper Franc", etymologically) and say it does not ring a bell what I am writing here