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Austria, Belgian Bonds Crushed

Tyler Durden's picture




 

Yesterday we posted a note on Austria, titled "35 Seconds Of TV Air Time Explaining Why Austria's AAA Rating Is Doomed" which among other things demonstrated in very vivid fashion, why courtesy of its massive Hungarian and broadly Eastern European exposure, an Austrian downgrade is virtually imminent. The follow up news that the Austrian Central Bank has henceforth forbidden any incremental Eastern European loan issuance is merely the cherry on top, and confirms that Austria's biggest banks are now on the verge. As the chart below demonstrates which shows Austria benchmarks (which like Spain we expect will be promptly changed to a lower yielding piece to buy 1-2 days of breathing room), the hammering has returned. And elsewhere, Belgium is also getting annihilated as the ECB is now left with far too many plates to juggle.

Austria

Broad European bond yield change:

For those who missed it, here is a TV ad explaining Raifeissen bank loan issuance practices

 

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Tue, 11/22/2011 - 10:08 | 1902187 GeneMarchbanks
GeneMarchbanks's picture

Core crush!

That commercial is terrifying.

Tue, 11/22/2011 - 10:30 | 1902272 johny2
johny2's picture

Supernova debt explosion. Ageing Ponzi debt scheme collapses briefly under gravitational pull of the real assets, before incredible amounts of fiat money are printed in a short period of time.

 

 

Tue, 11/22/2011 - 11:06 | 1902413 Tramp Stamper
Tramp Stamper's picture

bopbopbopbopbobpbobpbopbopbopbopbopbobpbop

Tue, 11/22/2011 - 10:08 | 1902194 Harlequin001
Harlequin001's picture

Time to duck...

Tue, 11/22/2011 - 10:09 | 1902195 Cdad
Cdad's picture

uh...ummmm...winning?

Tue, 11/22/2011 - 10:09 | 1902199 Quintus
Quintus's picture

Creditanstalt all over again.

How fitting it would be if the second Great Depression was triggered in the same country (Austria) and by the same mechanism (Bank Failure) as the first?

History doesn't repeat, but it rhymes (Closely, in this case).

Tue, 11/22/2011 - 10:10 | 1902202 StychoKiller
StychoKiller's picture

                   Excerpt(s) from "The Big Short":

"In Bakersfield, CA., a Mexican strawberry picker with an income of $14,000/yr and no English was lent every penny he needed to buy a house for $724,000."

"By May 2007, however, there was a growing dispute between Howie Hubler and Morgan Stanley.  Amazingly, it had nothing to do with the wisdom of owning $16 Billion in complex securities whose value ultimately turned on the ability of a Las Vegas stripper with five investment properties, or a Mexican strawberry picker with a single $750,000 home, to make rapidly rising interest payments."

"'Who takes out a home loan and doesn't make the first payment?' asked Danny Moses, putting the matter one way.  'Who the fsck lends money to people who can't make the first payment?' asked Eisman, putting it another."

Apparently, Europeans have been playing the same games.

Tue, 11/22/2011 - 10:16 | 1902224 Internet Tough Guy
Internet Tough Guy's picture

Strawberry pickers provide a service. Bankers, not so much.

Tue, 11/22/2011 - 10:23 | 1902248 midgetrannyporn
midgetrannyporn's picture

My version:

Strawberry pickers are good for the economy. Bankers are overpaid parasites.

Tue, 11/22/2011 - 10:19 | 1902232 EscapeKey
EscapeKey's picture

Here in the UK, the government wants first-time buyers to be able to get mortgages with just 5% equity.

Fucking great idea, considering the bubble never was allowed to burst. They simply lowered the base rate to make housing "more affordable".

 

Tue, 11/22/2011 - 10:55 | 1902367 Harlequin001
Harlequin001's picture

The Govt needs to let the market set a fair rate anbd assess a fair risk...

Tue, 11/22/2011 - 10:29 | 1902268 a growing concern
a growing concern's picture

"Oh, you said 14 THOUSAND. Classic mixup!"

Tue, 11/22/2011 - 10:31 | 1902276 Mutatto
Mutatto's picture

Picture of the stripper, please.

Tue, 11/22/2011 - 10:10 | 1902205 dereksatkinson
dereksatkinson's picture

Could they just hurry up and hit the TLTs already?

Tue, 11/22/2011 - 10:11 | 1902207 Manthong
Manthong's picture

I didn't know Bahney Fwank was working in Europe.

Tue, 11/22/2011 - 10:14 | 1902214 Vlad
Vlad's picture

Graph is Commerzbank, not Austria.

Tue, 11/22/2011 - 10:16 | 1902225 Quintus
Quintus's picture

You are correct, but nevertheless, Belgian 10Yr yields are up 3.75% on the day to a 3.518% yield.  Not good.

Tue, 11/22/2011 - 10:45 | 1902253 Vlad
Vlad's picture

Indeed, similar in Austria. Graph here http://vnistor.com/wp-content/uploads/2011/11/Austira-10.png

Tue, 11/22/2011 - 10:17 | 1902226 hourglass86
hourglass86's picture

Fucking scary commercial!

Tue, 11/22/2011 - 10:20 | 1902236 Mitch Comestein
Mitch Comestein's picture

Just like in 1873.  It is Vienna bank panic time!

Tue, 11/22/2011 - 10:21 | 1902237 Tsar Pointless
Tsar Pointless's picture

So we have a full-blown European meltdown on our hands; no SuperCommittee plan; budget "cuts" coming sometime in the future at a later date and time which is not now or next year or likely ever; and, a crumbling US economy.

From it I infer: Crashes in all worldwide equity markets heading into and throughout 2012; collapsing Treasury yields in the US along with a massively-rising dollar as worldwide *investors* "fly" to "safety"; riots and other social unrest taking place in Europe, culminating in a spectacular EU dismantling.

All fun and games have been concluded. It's time for somebody to lose an eye.

Tue, 11/22/2011 - 10:24 | 1902249 Sudden Debt
Sudden Debt's picture

Our bureau of tourisme only welcomes this kind of free advertising for Belgium!

....free.....

 

Tue, 11/22/2011 - 10:25 | 1902256 magpie
magpie's picture

Take our guided tour and receive free bonds and dexia certs ?

Tue, 11/22/2011 - 10:24 | 1902251 magpie
magpie's picture

Tu felix Austria

Tue, 11/22/2011 - 10:25 | 1902257 Seasmoke
Seasmoke's picture

i dont see how they are going to keep this together thru Christmas , let alone Obamas relection in 2012

Tue, 11/22/2011 - 10:42 | 1902320 Sudden Debt
Sudden Debt's picture

Watch and see the machine of propaganda unfold itself and create wonders!

 

Tue, 11/22/2011 - 11:12 | 1902434 Zero Debt
Zero Debt's picture

They are planning a war on Iran to distract the sheeple from their own lives.

Tue, 11/22/2011 - 10:45 | 1902333 imsaul0968
imsaul0968's picture

For those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals.  If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:

eclark@breakaway-partners.com

and I'll add you to the weekly market commentary & portfolio update distribution list.  Its free to add you and you can follow along our model and our views.  We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt. 

Tue, 11/22/2011 - 13:29 | 1903023 ceilidh_trail
ceilidh_trail's picture

Tyler needs to kick this cheapskates ass off ZH. If this company had any ethics, they would pay for an ad. If they behave this way now, who in hell would trust them with ten cents real money? MFGlobal anyone?

Tue, 11/22/2011 - 10:47 | 1902339 slewie the pi-rat
slewie the pi-rat's picture

alpine waffle stomp dem bonds, BiCheZ!

Tue, 11/22/2011 - 15:04 | 1903523 DrunkenPleb
DrunkenPleb's picture

Oooohhh, the phrase 'alpine waffle' makes me want waffles and schnitzel with maple syrup. How are rates in Canada??

Tue, 11/22/2011 - 10:49 | 1902346 rambler6421
rambler6421's picture

Wait until French bonds get destoryed.

 

libertarian86.blogspot.com

Tue, 11/22/2011 - 11:05 | 1902409 topcallingtroll
topcallingtroll's picture

Probably a mistake for Austria to quit loaning to Eastern Europe.

An old Chinese saying suggests that if you find yourself riding a tiger it is best not to dismount or you will be eaten.

China and USA understand this.
Dont hit the breaks. Accelerate mother fucker!

Tue, 11/22/2011 - 11:16 | 1902447 soopy
soopy's picture

Tyler that first chart is Commerzbank isn't it?

Tue, 11/22/2011 - 11:35 | 1902536 Bagbalm
Bagbalm's picture

"culminating in a spectacular EU dismantling" = war

Tue, 11/22/2011 - 11:38 | 1902553 pagan
pagan's picture

Is this the dumbest commercial ever produced?

I bet, even the Yanks cannot beat this?

Tue, 11/22/2011 - 12:15 | 1902664 FranSix
FranSix's picture

Mimes in white foundation, wearing black combin√© tights, black ballet slippers, horizontal stripped shirts, juggling plates?  Wearing berets? On a unicycle?  In a Toulouse Lautrec painting?

How Yurpeen!

Tue, 11/22/2011 - 13:08 | 1902882 Snakeeyes
Snakeeyes's picture

A one day blip is not a crash. Look at the longer-term charts here:

U.S. Q3 GDP Revised Down To 2%, Europe Continues Down Ski Slope

http://confoundedinterest.wordpress.com/2011/11/22/u-s-q3-gdp-revised-down-to-2-europe-continues-down-ski-slope/

 

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