And Credit Was Right... As Always

Tyler Durden's picture

Presented with little comment aside from a slight Schadenfreude as the European equity market collapses back in line with the credit market's much less sanguine view of the sad reality that is European social, economic, and political life. Meanwhile, German 10Y yields just broke to record low yields as EUR-USD basis swaps deteriorate, LTRO Stigma leaks to its widest in over 4 months as Spanish 10Y yields hold above 6% once again and Dutch CDS snap wider to their 3rd highest level ever on resignations. But apart from that LTRO was a success, Europe is stable, and Spain is not Greece...

European equity (blue) vs Credit (rest)...

German 10Y at record low yields...

And Holland looks more and more like its not a AAA anymore...

Chart: Bloomberg

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francis_sawyer's picture

We're going to need a faster printing press...

slaughterer's picture

These credit/equity compression trades are a personal printing press.  Thanks ZH. 

CPL's picture

You still have to hold the paper at the end of the day and attempt to unload it on to someone.


Doing trades in this is dodging fast and heavy traffic.  Only a matter of time people get clipped...again.  Third time in ten years.


Keep your stops in and set them up as trailing to make sure the financial winds don't shift after FOMC.  Just be very careful out there.

LawsofPhysics's picture

"You still have to hold the paper at the end"

Bullshit, I have never had a problem turning gold into the "fiat du jour", OR exchanging my goods and services for that of someone else's.  Talented and productive labor will go where it is rewarded, period.  The only people who fear collapse are those who know that the value of their "labor" is shit.

What you fail to realize, like so many others, is that people will engage in commerce and exchange because they have to.  When the corruption of any system becomes obvious to all, people simply stop using that system.

Long black markets.

Seize Mars's picture

God, you are big on this "Do you know that the value of your labor is shit - you fucking better!" thing.

By the way, I'm still awaiting a response on why you called me a pussy in that other post. I promise I know the value of my labor. It's shit. (Or it "ain't shit," or whatever.)

LawsofPhysics's picture

It really doesn't fucking matter what some anonomous blogger says, the fruits of your labor will or will not be worth something when the whole thing goes boom.

The fact that you are still coming back "wanting and answer" sort of says it all.  My God, don't you have anything better to be doing?  Oh yeah, pussy.

Seize Mars's picture

Um...ok. Sorry man I think you've got me confused with someone else. Try to take it easy, ok?

Easy...just take it easy...

CPL's picture

Here I'll call you a ruddy cunt if it helps your portfolio any.


Oh wait it doesn't.  Best thing to do now is wait and see and relax.  The powers that be are about to slip all 12 inches into each of us instead of the inch at a time crap.

CPL's picture



Personally I like the sound of that.

LawsofPhysics's picture

I agree,  10% of my trade will be returned to ZH, and thanks Tyler.

jaffa's picture

Typical fundraising dinner fare includes pancakes and spaghetti, but it's worth soliciting donations from local businesses and restaurants, and deciding what to prepare based on what is acquired that way. Thanks.
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maxmad's picture

its collapsing!

CPL's picture

Like a cheap suit made by bankers.


GLTA, enjoy the bag holding for the next decade.  Like it matters much on the outcome now.

DaveyJones's picture

the bankers are a cheap suit

battle axe's picture

Europe goes BOOM!

Peter K's picture

But But But.... the EUR/USD is above 1.3120, therefore EUROLAND IS SAVED. ;0



GMadScientist's picture

As long as the guys with extinguishers can keep the swap lines from flaring up again...

LawsofPhysics's picture

Once again, thanks Tyler.


FYI- Ron Paul on CNBC, WTF?

GMadScientist's picture

Is it time for him to "kiss the ring", yet?


Nobody For President's picture

"But apart from that..."

And Tyler gets to go famously snarky...

Cracked me up - which is hard to do on Monday morning.

(Though I did pile into TZA this morning on decent timing, for a change.)

mkhs's picture

really?  your about 2 weeks late.


declanc's picture

Advanced printing press! nice idea. great.looking forward to see it soon.

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