BNP Freefalling

Tyler Durden's picture

Well, as expected, the Chinese news finally filtered through to the vacuum tubes. It took them a few hours... But it is finally there. BNP is down 7.3% at last check and tumbling. Comments from the IMF, which is always behind the curve, are not helping.

BNP down 25% since Thursday highs.

And not doing that much better today.

Charts: BBG

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spiral_eyes's picture

A tale of two nations:

In France, economic collapse causes the BNP (Banque Nationale Paris) to freefall
In England, economic collapse causes the BNP (British National Party) to soar.

Oh regional Indian's picture

Well Spiral, sounds like overt jingoism is coming to warm beer serving pub near you. 

is it true that real estate in GB is on a tear again? So the daily mail will have us believe.

And how come no body ever speaks of a property bubble in Paris?

Ehhh?

ORI

spiral_eyes's picture

The property owning classes (mostly boomers) refuse to see more houses built, because it would have an adverse effect on their house prices, which they have remortgaged to pay for plastic surgery, world cruises, private medical care and consumption. So we have very much an underemployed generation who often have no housing and still live with their parents (jilted generation).

The boomers will raise every single excuse imaginable to stop building houses.

This is fuelling political extremism.

The young left wingers will drift toward socialism/communism.

The lumpenproletariat will drift toward smashing up shops and grabbing consumer electronics and designer sports goods.

Everyone else who is young and poor (alongside a lot of other older people, for different reasons) will drift toward nationalism and strong leaders.

Spitzer's picture

Boomers are idiots.

Canadian boomers all think they are wise and rich because of their property values. I will have the last laugh I recon.

spiral_eyes's picture

http://www.sharelynx.com/chartstemp/USHLSPOG.php

Priced in gold, housing is relatively cheap right now, so all of that capital lying dormant in housing has actually fallen in real (i.e. gold) terms. 

Still, I think housing (in both the US and UK) is going to fall a lot more in gold-denominated terms. 

My price target: 10 ounces of AU : median home.

 

adr's picture

10oz of gold can buy a pretty nice car. If 10oz can buy a nice house then every graveyard is a goldmine.

pitz's picture

Yeah its pretty fucking bad in Canada.  Motherfuckers think that a house that grosses $44k/year in rent is 'worth' $2.2M in Vancouver:

http://www.realtor.ca/propertyDetails.aspx?propertyId=10932246&PidKey=152332182

 

DosZap's picture

Gonna get worse, Canadians swallowed the same red pill as Americans..........get ready.

pitz's picture

At least the Canadian banks get to liquidate (or reprice) all the debt in 5 years or less because nearly all Canadian loans are 5 year or less terms. 

Not like in America where liquidation can take decades...

Oh regional Indian's picture

Hmmmmmm, thanks for the detailed response.

By one lever or another, political extremism is coming to all of us, religion driven, finance driven, needless war.bombing driven or just plain old dumb-driven.

ORI

DosZap's picture

spiral_eyes,

WTF are you blabbering about?.

Most Boomers have next to nothing!.There are enough houses built now to last 10yrs,if never a new one was built.

And as the boomers die off, there will be even more homes left.

I can see it now.

Want a HOME?,their FREE just move in and pay taxes, and utilities...................thank you Boomers.

You are so full of shit it's kubuki theater time. You must be under 40.

Or 25................

Oh,the U.K., now I get it.

adr's picture

Young people can't afford the taxes on boomer homes.

You could buy a turn of the century industrial magnate mansion in Cleveland for $350k that was going for $1.5 million two years ago. Problem is the taxes are 20k a year.

It will sit empty until 100 mexicans squat in it.

The taxes on a regular home in boomer suburbs are all over $5k a year. In many cases matching the mortgage payment if you bought the home today. Equity doesn't matter if there is nobody t sell to.

spiral_eyes's picture

Yes — the situation is slightly different in the UK to the US.

The UK has a significant housing shortage. The US has a significant housing surplus. 

GeneMarchbanks's picture

Cliff diving like the Frenchies...

... will be joined by the Swiss and Brits.

eurusdog's picture

Read that headline last night and thought it would have a much greater effect on Europe than it did! The SNB intervention was only good for 120 points this morning and all the talk in the world will have less and less buoyancy effect.

eigenvalue's picture

Just like gold and silver which have taken too much laxative

StychoKiller's picture

Gold & Silver spiking in the opposite direction -- wonder where all the Euroz went?

Soul Train's picture

obvious ES omen

YesWeKahn's picture

This is green shoot. When it finally reaches 0, the only way is up.

LongSoupLine's picture

Lehman rebadged, repacked, redistributed and shoved up the ass of the middle class sans lube.

TradingJoe's picture

When "politicians" start panic ing, (and as we saw for a few days now they are already "there"), it'll be GAME OVER! Damn and I live to see this! Hah!

disabledvet's picture

Well at least it's official: there's no double standard like an IMF double standard. Now here's comes your "soft gold standard." Let me guess: the hard one is still a "big pile of retarded bullshit" HARDY HAR HAR!!!!! Now let's stand by and watch the Silver Surfer fly. You don't try and take down the Department of Energy unless you believe you need 500 large in silver to get those solar panels moving.

RSloane's picture

This is a bone-chilling dangerous picture yet will barely get a mention, if at all, in the MSM. Tragic.

Dr. Engali's picture

I thought the banning of short selling was supposed to keep a stock from going down.

10044's picture

Fck,,,, look at gold

UGrev's picture

Gold went full boner.. hory mory..

eigenvalue's picture

If you keep track of the GOFO and SIFO rates, you will perhaps notice a pattern in the past several weeks. When GOFO and SIFO rates increase, PMs tank and vice versa

mynhair's picture

Where's the volume?  Oh, the humanity!

rambler6421's picture

Reggie Middelton's scenario coming true (bank runs). 

Bill Lumbergh's picture

The real question no one has yet to ask is "What would Cramer do?"

azzhatter's picture

Screw the IMF, what's Cramer take on BNP? Buy buy buy buy- well capitalized...............

no es bueno's picture

he must of put out the word for the blue hairs to buy, BNP bouncing up

youngman's picture

Looks like Seimans prematurely pulled out again....before getting her pregnant....but hey Netflix is up...oops..no it isn´t...what is the stock de jour....Amazon...thats it Amazon and Apple

PaperBear's picture

Whoa, the criminal cartel seem to have momentarily lost control of the fiat paper price of silver - at $0.17/oz up $1 from todays $39.08/oz low and up 1% from the open.

WOOHOO, WOOHOO, WOOHOO.

criticaster's picture

@spiraleyes: What a load of substanceless crap.

1) Extremism is not on the march in the UK (unless you count the laughable EDF hanging around on street corners). Recent poll results for the BNP were infact down. (http://www.bbc.co.uk/news/uk-politics-13313069)

2) An advantage of the first past the post system in the UK is that idiots like Griffin (BNP) are locked out of parliament.

3) By culture and disposition (historically) the british are moderate politically. The main parties remain moderate.

4) London. The engine of GDP for the nation is an international city with a wide spectrum of people involved in and essential to its success. No sensible political party would enact policies to effect a change on that score. Its the same reason that the City has not been fully regulated by successive governments: London is a cash cow.

Also stop blaming 'boomers'. What a load of tosh. The ultimate problems are to do with regulation and the limits of finance (political) and our choice of monetary system (economic). Its not the boomers 'fault' anymore than it is my 'fault' that A-Level standards declined when I was at school. Or that it was my great grandfathers 'fault' that the second world war started.

None of this means however that we should not always be alert to the dangers of overly-rigid political thought.

spiral_eyes's picture

No — the housing crisis is directly attributable to political pressure from Express/Mail readers (i.e. boomers — who have been the majority support for all of the British governments since Thatcher) to restrict the supply of housing to boost equity. Why do you think so many organisations are crying about building more houses now that Cameron (thank God) is trying to reduce restrictions on developers? Sorry — not every boomer is guilty, but as a generation, the boomers have behaved incredibly selfishly, and it's time the younger generations fought back.

Also:

Britain is extremely dependent on energy imports, on consumer imports and on food imports.

Do you have any clue what a global oil shock would do to the British economy? (And particularly London)

(Luckily, I don't live in London or near any major urban centres)

It would be incredibly nasty. The August riots a thousandfold. I know Britain is an especially moderate country. But hunger and fear change everything. And Brown, Blair, Major and Thatcher have all obliterated British industry and agriculture and made Britain dependent on imports which in the near future may dry up. 

criticaster's picture

Not true. (Or at least, not complete.) The asset price inflation is due in part to the policy of not including the cost of housing in inflation measures. This led to consistently low interest rates even though the housing market was blowing up. Partly the motivation for this was political - yes. Major, Blair and Brown all benefitted from an electorate that thought they were getting richer in part due to the paper values of their homes. Partly its was for reasons of 'controling' inflation. Silly? Yes. But it is simplistic in the extreme to say that this was direct result of mail-reading boomers wanting restricted housing. Infact its more than simplistic - its stupid. In certain areas of the UK (mainly ex-industrial centres, eg. Leeds, Birmingham etc) there is excess housing in the town centres, precisely because of development during boom time (blocks of flats). But now no one wants them because there are fewer jobs in those places - which is a wider issue. 

"Britain is extremely dependent on energy imports, on consumer imports and on food imports.Do you have any clue what a global oil shock would do to the British economy? (And particularly London)"

Thanks for that info. Do you have a clue? Got any bets on?

"(Luckily, I don't live in London or near any major urban centres)"

Luckily I have a tinfoil hat.

I'm not saying its all sweet as roses. I'm also not saying that its not all going to collapse. I just think that your reasoning is lacking. And just because its all in the s**t-pan doesnt mean we have to suspend critical thought.

 

spiral_eyes's picture

I agree that the CPI is total bunk — this was a stereotypical Keynesian screwjob — inflate the currency, create home equity, encouraging remortgaging, have a consumption driven "boom". But the pressure to let this happen didn't come out of the thin air — it came from politicians pandering to their core electorate — home-owners who wanted a free lunch.

And yes — I do have a clue what could be in store for Britain. You lose the supply chains due to some black swan (completely conceivable, and with every major financial crisis, more and more likely) and you have major social and economic upheaval. Britain's food and energy infrastructure is extremely fragile, even compared to the United States (at least they are food independent). 

Bets on? Yes — I have hedged against an oil-shock driven collapse by buying solar panels, growing vegetables in my green house and garden, and I live next door to two sheep farms. The next step is an electric car that I can run from my solar panels. That would make me — unlike 99.9% of Britain — energy independent. That's not a tin foil hat — that's hedging against tail risk.

criticaster's picture

Thats some hedge. All the best to you. (Just wondering what relevance the sheep have though? Actually I dont want to know...)

Just make sure you have enough PMs beans and bullets brother! ;-)

Bicycle Repairman's picture

Remember a 100 IQ is the median.  Half the people have an IQ below 100.  The functionality of such people is limited and there are a lot of them.

PulauHantu29's picture

ECB has a tougehr time dumping the toxic crap onto another country.....as opposed to Ben who just moved all of the smelly stuff onto We The Sheeples.

criticaster's picture

BNP now rebounded to 25.20...

Zerohedge seems to call the lows quite well. Volatile as hell.