This page has been archived and commenting is disabled.
Bet On Central Banker Lies, Double Your Money
From mid-March, the difference in credit risk between banks that took LTRO loans and banks that decided not to become stigmatized and subordinate their existing senior unsecured bond holders has now more than doubled. Another day of decompression today has pushed the so-called LTRO-Stigma to 142bps - its widest in 5 months and worse than at any time since LTRO1 was undertaken. Since we first noted the disingenuous commentary by Draghi on 'there is no stigma' and suggested this trade on the back of the early recognition of the implicit subordination and unintended consequence of self-loading and self-referencing banks buying their own sovereign debt locking them into a vicious circle with one another, the spread has more than doubled (meaning anyone who TRS'd this deal likely would have seen this spread doubling result in a doubling of P&L) and reflects very closely the market's movements during the crisis period heading into the announcement of the new fiscal compact and the LTRO scheme. This time around, there is less collateral and a banking sector that knows what it means to shake hands with the devil.
Chart: Bloomberg
- 7084 reads
- Printer-friendly version
- Send to friend
- advertisements -



But LTRO was an “unquestionable success” - Mario Draghi
There is no risk of that...
Yes Sir the casino is rigged!
Do you wish to play?
You now have better odds at an actual casino then in the financial markets. At least in the casino you know the rules of the game won't be changed mid Shuffle
I think I'll put my money towards learning primitive skills rather than putting it towards playing poker!
-John
Primitive Skills Classes - Edible Plant Tours
http://www.heartrootnatureconnection.com
He can call anything a success as long as he defines success right
Stop questioning it, Saddam Draghi said "it is not helpful to question LTRO". You are not being helpful.
What could possibly go wrong?
Mining stocks are funny, and by funny I mean they suck.
Done and done, this is the most useful aspect of ZH.
WSJ: Governments Are Sowing Seeds of the Next Crisis:
As a young stock-market reporter, I remember being bamboozled by the panoply of data, facts and rumors that could sway investors' perceptions of when to buy and sell.
But in recent times, that seemingly infinite set of variables has been reduced to one: whether governments and central banks will step in again to help sluggish growth and a patched-up banking system.
lol
LIES AND MANIPULATION IS WHAT DEFINES CENTRAL BANKERS THESE DAYS. WHEN ONE LOOKS AT THE LEVEL THE EURO IS TRADING VERSUS THE DOLLAR IT IS HARD TO UNDERSTAND WHY GOLD PRICES IN DOLLAR TERMS ARE NOT HIGHER....THE RATIO OF 1 TO 1O IMPLIES THAT GOLD SHOULD BE OVER THE 1,700 LEVEL AT LEAST...
Patience..
Central Banks Daily Routine:
1. Buy futures in the morning.
2. Monitor the market to insure the markets remain up 100 dow points.
3. Sell gradually in the afternoon in order to get out of long positions.
4. Get ready for the next day setting the buy orders in the que.
When we are out of asset, we will make the previous LTRO the assets.
This is getting so messed up it is unbelievable. Parsons blaming Glass Steagall for the financial crisis (at the leftist Roosevelt Institute in DC). He failed to recognize Clinton's Trifect of bad bets on low income housing and mortgages. THIS was the root cause of the crisis. Glass Steagall was the final step to open the floodgates.
http://confoundedinterest.wordpress.com/2012/04/20/parsons-blames-glass-...
Where is the Santelli rant this morning? I could use a dose of that guy, right about now!