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BTPs Break 7% Again On Italian Downgrade Rumors
Chatter across European bond desks that a sovereign downgrade is nigh has sent BTP spreads and yields soaring. ECB buying earlier is now under-water once again.
and BTP spreads to Bunds breaks back above 525bps
2s10s is bear flattening also - not a good day for Monti...
Chart: Bloomberg
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I remember when 7% interest was kinda normal.
Shhhh.
not for sovereigns
I also remember when "sovereign" meant something different than "dependent upon everyone else papering over your lack of discipline."
a sovereign is a very nice gold coin..........
Here in India, it is still normal.
Connedsumers pay 11-15% for home loans, 10-12% for vehicles.... governmant debt is just in the sub 10% range.
Different worlds.
ORI
Mandelbrot Magic
Selfish bastards! If you would lever up on your economy, rates would drop and GDP would increase along with taxes. You could then buy European government debt to support them and take the pressure off Mario for a day or two. Sounds like India is just backward enough to still think that gold is money. (hehe...)
Hah! Indian's do. India? As in Goobermint? Don't think so.
Same old Deficit Spending, Keynesian bullshit with a huge dollop of corruption for taste.
ORI
I remember when countries didnt have so much debt.
It broke and stayed over the 7% and this was considered the final straw for other economies that needed bailing out. But also France and Spain interest rates on bonds are going up also, I think the death spiral is increasing and they are playing this day by day now.
S&P had another server slip-up?
Put some sauce on it already.....it's done.
flambe style for reals
Such a boring wait...
Bring back Bunga Bunga.
In rialzo!
SILVIOOOOOOOOOOOOOOOOOOOOOOOOOOO
at least his name sounded like a precious metal.
So...are risk managers at BLK tapping Larry Fink on the shoulder just now?
its only a loss or bad decision in the real world, not in merkozyville
I don't think we see a downgrade until after Monti has had a few weeks. Rating agencies aren't going to put their nuts on the line when governments are already this hostile towards them. Even if Italy DESERVES to be downgraded, I think the downgrade will come in the form of higher rates and NOT some rating agency.
Egan Jones might. They're like the honey badger. They just don't give a shit.
Honey badgers really dont give a shit, if its hungry, its eating something, it just takes what it wants.
The Crazy Nastyass Honey Badger (original narration by Randall) - YouTube
This represents a big opportunity for Egan Jones, they keep calling spades, spades while the big guys maintain their "working" relationships with governments - soon they will be the goto rating and the others a Car and Driver like window dressing.
I think it's clear that no one besides Egan Jones has any amount of credibility anymore. They are just the paid mouthpieces who happen to do something unfavorable in their ratings just often enough to keep up a slight veneer of credibility.
Forget the rating agencies, the bond markets have already rated these deadbeats.......UP UP AND AWAY with yields baby.
\E\/J/
Do they still have a prescence in Italy, or did they pull up stakes after they got raided?
When I read the ratings reports countries get scored on a lot of attributes that sort of sum up to an evaluation of "is this a third world banana republic trying to support its regime through manipulating the economy or is it a free market". Banning short selling, CDSs, putting politcal and legal pressure on the rating agencies, calling a default voluntary... I think the fruit flies will like the smell.
That's alright, the US Faux economic turnaround will make the pain disappear. Thank you big corporate and all that offshore profit bulldozing!
7%. who cares? let it go up to 15%. nobody will give a shit. country is broke anyway, they rely on germany for funding in the future. realize. accept. move on. please, bitch!
I know exactly what Europe's problem is....NO FIVE GUYS!
and we can't seem to pull off Moules-frites as cheap fast eats, wtf
Shows us all how ineffectual the "leadership change is good" story has been. Euro is toast and the US "faux recovery" revealed for what it is.
Never mind $100 oil, z-super-duper-dud-kommittee, aging demographics, increasing protests, continued unemployment....on and on. But hey, time to be bullish.
Yep, bullish on equities which havent even budged, inflation adjusted, in over 20 years. What the bulls are all excited about, I have no idea.
Let's throw some FAZ on that bad boy!
Is this why BAC is up 3% today?
well golly you better jump in with both hands buying then, right???? bwahahahahahahahahahaha! let me know how that works out for you.
And...markets go green. Some one or some thing is holding these things up. A day like today should force everything (inclusive of the Euro) into the red. Who is the magic hand supporting it all? Banana Ben?
Yea theyve worked for years to implode the system, now spend all their days keeping it up...what are they waiting for? Do they have cold feet? Or has something gone wrong?
I dont really give a shit, Im a honey badger, Im going to go eat some larva and a cobra.
Yeah I'm not sure how some slightly positive econ data fully offsets the seriousness of the Europe tragedy unfolding... especially considering the qualifying factors of said data, e.g. retail sales likely driven by iPhone frenzy and possibly some inflation.
Sounds like time for a EUR/USD positive rumor? The fixing of interest rate ceilings isn't doing what it was supposed to today. I suggest the ECB splits into a good bank and bad bank. And unlimited PIIG debt buying of course:)
Yeah I hope so.
Reality is interfering with my Santa rally thesis.
The talking heads must really love this shit now. They were ga-ga over yields at 6%. Can't wait to see how much love they are in when it gets over 10. Attention money honeys at CNBC: yields are high for a reason.
http://vegasxau.blogspot.com
This market sucks out loud. Starting to wonder if it isn't time to stick a fork in the year.
Do you think next year will be better? I think so because I believe PMs and other real stuff will have another 25%+ gain in 2012.
Given the climate, no rating agency is going to be stupid enough.. Governments will destroy the people at these agencies. Both personally and professionally.
http://www.bbc.co.uk/news/business-15739234
If Egan jones or any other rating agency downgrades a sovereign in this environment, i'd fully expect rape accusation or child porn charges to be thrown against their CEO. Governments are in FULL attack mode.
Yep, the FED pulled out the last of its dry powder with a lame announcement that ZIRP is now permanent policy far as the eye can see, and didnt even get markets green? Too funny. Gold and oil continue to rise though.
These markets are so thin, wonder when we will go bidless? Even bulls don't seem to give a shit.
Higher interest rates....it's a sign of STRENGTH!!!
buy buy buy.....yepper
Equity’s Limited Reaction to Weakening Credit Often Leads to Painful Convergence
http://rosenthalcapital.com/blog/2011/11/mj-credit-guru-equitys-limited-reaction-to-weakening-credit-often-leads-to-painful-convergence/
Equities are in the Special Ed wing of the financial school for sure... over there eating their crayons and drooling.
Could it be holding up because of options expiration shenanigans?
equities are acting psychotic today. make up your damn mind already!
I hope equities snap like a psycho ward out of lithium.
LNKD ready to flood the market with 8M shares as insiders scramble to get the cash before the stock collapses to a more reasonable valuation.
Dis: short LNKD
LOL! Evans is doing a bang up job, infact I nominate him as the next chairman. Evans will drive this country into a fan much quicker than The Bernak.