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Dexia Suspended

Tyler Durden's picture




 

After the stock tumbled 20% on the day, and 45% in the past week, the life support plug appears to have been mercifully pulled. Next up: Dexia's website experiences a "bank of america" moment?

But fear not: here is what the head of the Belgian government would say... if, of course, Belgium had a government.

Or not:

BELGIAN TWO-YEAR NOTES DROP; YIELD RISES 13 BPS TO 2.35% - BBG
BELGIAN 10-YEAR BONDS FALL; YIELD RISES 3 BPS TO 4.03% - BBG

And the Belgian yield curve starts to bear flatten...

 

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Thu, 10/06/2011 - 10:23 | 1745381 wang (not verified)
wang's picture

where's Sudden Debt?

excuse me

 

WHERE'S SUDDEN DEBT?

Thu, 10/06/2011 - 10:25 | 1745409 spartan117
spartan117's picture

Hoarding Stella.

Thu, 10/06/2011 - 10:27 | 1745422 redpill
redpill's picture

And mayo for the French Fries *shudder*

Thu, 10/06/2011 - 10:29 | 1745430 hedgeless_horseman
hedgeless_horseman's picture

Thu, 10/06/2011 - 10:35 | 1745471 GeneMarchbanks
GeneMarchbanks's picture

"At least I got my chicken" -Jenkins

Thu, 10/06/2011 - 10:48 | 1745548 hedgeless_horseman
hedgeless_horseman's picture

 

 

"It's not my fault," said Jenkins.

Thu, 10/06/2011 - 10:56 | 1745612 Schmuck Raker
Schmuck Raker's picture

Belgium Pancakes

Thu, 10/06/2011 - 20:46 | 1748101 chipshot
chipshot's picture

youve of the eurozone...welcome to the ZERO --zone

Thu, 10/06/2011 - 10:25 | 1745411 Fips_OnTheSpot
Fips_OnTheSpot's picture

Hopefully picking up the next delivery PM ..

Thu, 10/06/2011 - 10:30 | 1745436 Hulk
Hulk's picture

He's in line...

Thu, 10/06/2011 - 10:34 | 1745464 achmachat
achmachat's picture

"my" dexia is the luxembourg dexia-BIL unit. This morning it was decided to split off Dexia because the Luxembourg unit is actually a profitable bank.
So no bank run here in tiny Luxembourg. Yet.

Thu, 10/06/2011 - 10:37 | 1745484 disabledvet
disabledvet's picture

word is CNBC has him under contract. Should be appearing shortly on the bottom right hand side of your TV screen anytime someone tries to make a point about "you wanna buy this" or "you need to be in that." He's been "advanced a little"--allowing him to turn upward and to the right with a "face of incredulity" added.

Thu, 10/06/2011 - 12:59 | 1746326 slewie the pi-rat
slewie the pi-rat's picture

SODDEN DEBT?

red warrant from the int'l criminal court?  L0L!!!

i've been wondering the same about our old vunderkind Frank_N_Stein? 

maybe they have been rendered, tortured, and martyred?  or maybe they should pay their damned bills and re-connect? 

Thu, 10/06/2011 - 10:21 | 1745383 rambler6421
rambler6421's picture

Bank Run Bitchez!

Thu, 10/06/2011 - 11:54 | 1745885 cbxer55
cbxer55's picture

And according to Mish, that is what is happening at BAC. Yet there stock is back up to $6.15, so it must be working out good for them loosing all of them customers.

http://globaleconomicanalysis.blogspot.com/2011/10/how-ben-bernanke-fd-banks-and-fixed.html

Thu, 10/06/2011 - 10:22 | 1745386 toronto1
toronto1's picture

why stock market up?

Thu, 10/06/2011 - 10:28 | 1745427 Chump
Chump's picture

Because at this point the only thing fundamental to stock markets is 'hope.'  That's why they go up on bad news ("I really, really hope this shit doesn't crash!") and also go up on good news.  More hope!  The only thing that will crash the markets is when liquidity is gone gone gone, but I'm getting over my head here.

Thu, 10/06/2011 - 13:05 | 1746346 Smiddywesson
Smiddywesson's picture

Exactly.  Retail loves results, but they also love bullshit, because it gives them hope.

Thu, 10/06/2011 - 12:07 | 1746052 cbxer55
cbxer55's picture

Market rallies during Bear markets are normal. But eventually reality wins, and down the toilet they will go.

Breaking out the popcorn.  ;-)

Thu, 10/06/2011 - 10:22 | 1745387 misterc
misterc's picture

Was it possible to short Dexia or were they on the "wildlife conservation list" (shorting ban) already? 

Thu, 10/06/2011 - 10:28 | 1745428 schadenfreude
schadenfreude's picture

I wanted to short them previos week and couldn't find any derivatives to buy.

Thu, 10/06/2011 - 10:33 | 1745458 Scisco
Scisco's picture

Don't know about Dexia but I don't think it is too late to short Belgium bonds.

Thu, 10/06/2011 - 10:22 | 1745389 Frog-And-Toad
Frog-And-Toad's picture

Wasn't this the bank that "caused" the rumor that brought about the huge rally on Tuesday?

Thu, 10/06/2011 - 10:29 | 1745433 Sgt. Oddball
Sgt. Oddball's picture

Yes indeed it was, but we have to wait for the next ridiculous end of the day rumor indicating this problem bank being is fixed for the last 30 minute daily rally.

Thu, 10/06/2011 - 10:22 | 1745390 Ashland_Avenue
Ashland_Avenue's picture

stratfor.com has excellent write up today on relationship of dexb to belgium govt.

Thu, 10/06/2011 - 10:23 | 1745392 LawsofPhysics
LawsofPhysics's picture

Expected, SocGen next, then BofA.  Got physical?

Thu, 10/06/2011 - 10:56 | 1745614 johnQpublic
johnQpublic's picture

http://www.youtube.com/watch?v=vWz9VN40nCA&ob=av2e

 

 

lets get physical...physical

Thu, 10/06/2011 - 10:24 | 1745400 NEOSERF
NEOSERF's picture

We very well may look at this moment as the first tangible (finally) thing that started the house of cards in Europe falling...as with Lehman, it is likely this is really going to hurt Belgium and the messes they uncover will likely be 2-3x what has been advertised so far...

Thu, 10/06/2011 - 10:36 | 1745475 Ruffcut
Ruffcut's picture

I thinkin' it's time to stop comparing lehman, a bag of shit bundlers of bad bets, to actual COUNTRIES of the civilized world. 

Thu, 10/06/2011 - 10:41 | 1745509 LawsofPhysics
LawsofPhysics's picture

Depends on whether or not you consider the current form of "civilization" a good or bad bet or any different from your comment about the composition of lehman.

Thu, 10/06/2011 - 10:57 | 1745615 trav7777
trav7777's picture

I think you just described countries when you described Lehman

Thu, 10/06/2011 - 10:24 | 1745403 Fips_OnTheSpot
Fips_OnTheSpot's picture

There. Is. No. Problem.

Thu, 10/06/2011 - 10:24 | 1745405 RobotTrader
RobotTrader's picture

Why is it that when ES and EUR start running, gold is left behind?

And why is it that when ES and EUR start tanking, gold goes down 3x faster?

Very frustrating.

Eric Sprott must be pulling his hair out.

Thu, 10/06/2011 - 10:32 | 1745450 Hulk
Hulk's picture

Why is it, when Gold runs and Robo's formula is thrown on the trash heap, that Robo is nowhere to be found?

Thu, 10/06/2011 - 10:37 | 1745477 Motley Fool
Motley Fool's picture

Cause it's a barbarous relic. It's not as hip and happening as ES and the EUR. :P

Thu, 10/06/2011 - 10:38 | 1745492 LongSoupLine
LongSoupLine's picture

Please do not feed the full re-troll-ard

Thu, 10/06/2011 - 11:53 | 1745985 richard in norway
richard in norway's picture

because pm is being sold to buy the market or did you think these dumbarse rallys happen by themselves

Thu, 10/06/2011 - 13:10 | 1746368 Smiddywesson
Smiddywesson's picture

Because it's just paper?

Because it's not a market?

Thu, 10/06/2011 - 10:24 | 1745407 ZeroPoint
ZeroPoint's picture

I am tired of all these circuit breakers. Let the mofo go to 0.

 

Thu, 10/06/2011 - 10:35 | 1745472 Fips_OnTheSpot
Fips_OnTheSpot's picture

Stockvalue 0 is not as important as empty cash drawers..

Thu, 10/06/2011 - 10:24 | 1745408 LongSoupLine
LongSoupLine's picture

Cue Donkey Kong picture...

Thu, 10/06/2011 - 10:25 | 1745412 buzzsaw99
buzzsaw99's picture

Reverse split? :snark:

Thu, 10/06/2011 - 10:25 | 1745415 RemiG2010
RemiG2010's picture

...move along....

Thu, 10/06/2011 - 10:36 | 1745425 Mercury
Mercury's picture

Cap-e-taine!....fix--->fail half-life decreasing!

Thu, 10/06/2011 - 10:28 | 1745426 winter is coming
winter is coming's picture

Winter is Coming

Thu, 10/06/2011 - 10:31 | 1745440 GeneMarchbanks
GeneMarchbanks's picture

You know you could have just posted nothing at all. Same effect.

Thu, 10/06/2011 - 10:32 | 1745448 Sgt. Oddball
Sgt. Oddball's picture

Let's just hope it's not a nuclear winter, because once these dominos start falling it could get ugly.

Thu, 10/06/2011 - 10:30 | 1745435 spongeBOB
spongeBOB's picture

When the market goes up on bad news it is over for the shorts. Trade accordingly !

Thu, 10/06/2011 - 10:35 | 1745465 alien-IQ
alien-IQ's picture

yes because nothing screams "things are getting better" like a non stop bombardment of bad news.

Thu, 10/06/2011 - 10:37 | 1745478 spongeBOB
spongeBOB's picture

Just play the game.

Thu, 10/06/2011 - 10:39 | 1745502 fuu
fuu's picture

No thank you.

Thu, 10/06/2011 - 10:31 | 1745442 Sophist Economicus
Sophist Economicus's picture

Wonder if SuddenDebt is standing at the ATM right about now....

Thu, 10/06/2011 - 10:31 | 1745443 alien-IQ
alien-IQ's picture

clearly this is bullish....because ...er...um...fuckit...just because ok?

Thu, 10/06/2011 - 10:33 | 1745454 hedgeless_horseman
hedgeless_horseman's picture

All other European banks gaining market share!

Thu, 10/06/2011 - 10:31 | 1745444 mess nonster
mess nonster's picture

Global deflationary depression, bitchez! Cash is as good as gold now! Put some in a mason jar and bury it under the apple tree.

Thu, 10/06/2011 - 10:32 | 1745452 Caviar Emptor
Caviar Emptor's picture

And Wall Street cheers bank nationalizations: They want communism for themselves with guaranteed jobs and pensions! Ha! The irony!

Thu, 10/06/2011 - 11:21 | 1745794 Ricky Bobby
Ricky Bobby's picture

You nailed -- The fight is between the National Socialist and the International Socialist. I just want to puke when the usual red pill attack on capitalism is invoked.

Thu, 10/06/2011 - 10:32 | 1745453 oogs66
oogs66's picture

We rallied tueday on hope dexia would be saved. Now we are rallying because a dexia failure will force Europe to act :D

Thu, 10/06/2011 - 10:36 | 1745473 Caviar Emptor
Caviar Emptor's picture

We rally because Wall Street would love to be nationalized at this point: since nearly every interconnected firm would go under if we had true price discovery, no Fed and government intervention and mark to reality, they would prefer a communist style takeover so that they get to keep their jobs, benefits and pensions despite the screw up that tanked the global economy!

Thu, 10/06/2011 - 10:55 | 1745607 daily bread
daily bread's picture

Hope is what makes the market go up.  In the inverted perversion of a market we have, the only way to increase the supply of hope is to kill off a bank or two.  Now that the traders/gamblers have the right psychology, all we need to reach DOW 20K by year end is about 2-3 dead banks a day.  Between Europe and US, I think the PTB can come up with a hundred or so banks.

Thu, 10/06/2011 - 10:35 | 1745468 Alvaro de Esteban
Alvaro de Esteban's picture

EURUSD +200 bps in an hour

 

Astonished... Any toughts???? Please!!!!!

Thu, 10/06/2011 - 10:38 | 1745493 Motley Fool
Motley Fool's picture

Europe isn't printing. Didn't you get Trichet's memo? :P

Thu, 10/06/2011 - 10:42 | 1745522 Alvaro de Esteban
Alvaro de Esteban's picture

Well, buying EUR 40.000MM of MBSs & Bank ABSs and offering unlimited liquidity for 12 & 13 months sounds pretty close to printing,

 

Thu, 10/06/2011 - 10:46 | 1745542 Motley Fool
Motley Fool's picture

It's all relative. Compared to the Fed the ECB is a saint.

Thu, 10/06/2011 - 10:50 | 1745585 Alvaro de Esteban
Alvaro de Esteban's picture

I agree with you about it, but wait for GS scammer Draghi... There will be not enough paper in the world for him and Bernie acting toghether

Thu, 10/06/2011 - 10:50 | 1745579 Alea Iactaest
Alea Iactaest's picture

posted to wrong thread

Thu, 10/06/2011 - 10:38 | 1745490 adr
adr's picture

Ahh yes, but nations imploding is somehow bullish for oil.

Waterworld was a terrible movie but I expect that scene very soon. Giant supertankers with names like Morgan Stanley wandering the open seas trading a barrel of oil for healthy first born children.

I'm pretty sure global oil consuption changes by 10% on a weekly basis. I know that every time the stock market jumps 300 points I feel like running through a tank of gas in celebration. 

It's not that I want a total collapse of society. I just want a return to some level of economic sanity. No more debt fueled exponential equity growth followed by exponential blowups.

Thu, 10/06/2011 - 10:39 | 1745499 Caviar Emptor
Caviar Emptor's picture

Nationalized banks is just the logical conclusion, the next step after bailouts and QE. It's just the difference between surgery and radical surgery. Sometimes radical is what's needed (and in this case desired). It's the ultimate expression of socialization of private losses and risk

Thu, 10/06/2011 - 10:42 | 1745521 dasein211
dasein211's picture

Neither the french or the belgian snakes can swallow that pig.

Thu, 10/06/2011 - 10:48 | 1745554 Caviar Emptor
Caviar Emptor's picture

Once it becomes a matter of state, there's no limits and all bets are off. Just look back through history, friend

Thu, 10/06/2011 - 10:40 | 1745506 dasein211
dasein211's picture

The worse it gets the more the traders know sombody is gonna try something desperate... Very desperate. Ive said this whole time its a game of chicken between BB and the eurozone. Ben wont lay his hand down until he see's what they raise it on the river. The ezone wont move until the get an idea of what kind of rescue BB will try. We all know what happens when ego overcomes the will to survive >:)

Thu, 10/06/2011 - 10:41 | 1745515 KlausK
KlausK's picture

This video with this chart ... To say it while you are still living: Thank you, zerohedge. I love you.

Thu, 10/06/2011 - 10:44 | 1745535 Dick Darlington
Dick Darlington's picture
Belgian markets regulator says Dexia (DEXB BB) share suspension is caused by need for more details on sale of Dexia's Luxembourg unit

 

Hahahahaa! And insolvency has nothing to do with this.

Thu, 10/06/2011 - 10:45 | 1745539 Caviar Emptor
Caviar Emptor's picture

I don't think many see what's coming: now that the precedent is set and Wall Street cheered nationalization of a TBTF bank, it makes the next ones easier and the ones after that easy. But that will simlpy push the trend away from private banks and free-wheeling markets for a very, very long time. And given the growing political climate against Wall Street, you can expect spillover into other areas.

Nationalization spells "You Failed" loud and clear. And it spells in the minds of many "The System Failed". 

Thu, 10/06/2011 - 11:11 | 1745714 the not so migh...
the not so mighty maximiza's picture

they should have listened to Sheila Baer.

Thu, 10/06/2011 - 14:31 | 1746738 AldousHuxley
AldousHuxley's picture

System failed long time ago in the 1980s. But then US started to use good will interest rates and reserve currency status to hide the fact with easy credit. No we are down to 0, so game is almost over. Pie stopped growing. What's next? Rich elites will now devour the middle class pie pieces to get fatter....Then when majority have nothing to lose, we will see mass chaos.

 

http://1.bp.blogspot.com/_i47TEqZoAbw/TOW3YEXmVBI/AAAAAAAAAug/INVqbbrXLk...

Thu, 10/06/2011 - 10:48 | 1745561 jez
jez's picture

Good job Dexia passed that stress test back in July, or I'd be worried that this was quite serious.

Thu, 10/06/2011 - 11:00 | 1745629 mccoyspace
mccoyspace's picture

From the Belgian papers:

1 billion pulled from Dexia

http://www.lesoir.be/actualite/economie/2011-10-06/1-milliard-d-euros-re...

Dexia Belgium in the process of being nationalized (definitive statement coming Saturday)

http://www.lesoir.be/actualite/economie/2011-10-06/dexia-belgique-en-pas...

Government guarantee of 'several dozen billion'

http://www.lesoir.be/actualite/economie/2011-10-05/dexia-garantie-de-l-e...

Thu, 10/06/2011 - 11:06 | 1745657 virgilcaine
virgilcaine's picture

This is eerily reminiscent of 1931 and Creditanstalt, the Austrian bank fail. which unleashed   GD 1.

Thu, 10/06/2011 - 11:13 | 1745732 Archduke
Archduke's picture

FYI: which is now UniCredit, Italy's worse-off bad bank...

Thu, 10/06/2011 - 11:15 | 1745751 azusgm
azusgm's picture

If Dexia's website has a "bank of america moment", fine. It is past time for Bank of America to have its "Dexia moment". Adios and Ka-boom.

Thu, 10/06/2011 - 11:16 | 1745755 wombats
wombats's picture

Does this mean its too late to buy their stock?  Oh No!

Thu, 10/06/2011 - 11:56 | 1745841 virgilcaine
virgilcaine's picture

OT
Obama preaching now.. lecturing us all.  uhh, blah.. then. whistling sound.  With an appearence of feigned  seriousness.

  

 

Wed, 10/12/2011 - 09:53 | 1765347 karmete
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