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ECB Scrambles To Prevent Another Market Rout Following Abysmal Spanish Auction, Disappointing PMIs
Following last night's latest sub 50 Chinese PMI reading (August HSBC PMI at 49.9 following 49.3 in July), it was Europe's turn to spook the market after the Eurozone PMI printed at 49.0- the lowest in two years, versus an estimate of 49.7 and a prior reading of 50.4, with the global recession accelerating regardless of what a few factories in Chicago have to say. Spanish and Italian PMI tumbled from 45.6 to 45.3, and from 50.1 to 49 respectively, coupled with a surprising drop in German PMI which dropped to 50.9, from 52.0. As Bloomberg's David Powell said, revised final manufacturing PMI for August shows that economic weakness has spread from the periphery to the monetary union as a whole and may contribute to a widening of intra-European sovereign debt spreads, especially those of Italy and Spain. Sure enough just as he said that, Spain auctioned off a miserable 5 year bond in which it sold just E3.62 billion out of a maximum target E4 billion, with a stunning plunge in the Bid To Cover which came at 1.76 down from 2.85 despite implicit promises of ECB purchases. This led to the EURUSD dropping to under 1.43, Spanish CDS blowing out by 10 bps, and, sure enough, the ECB intervening promptly by buying up Spanish bonds in the secondary market to prevent a market collapse. All in all, we have all the makings of another 10 point no volume levitating melt up in the S&P, as global recessionary news promises more easing from the cartel.
Charting the collapse in European PMIs:
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When do you sleep? Your incredible. Thank you
The Tylers have clones that work for them, no need to worry about their sleep.
Off topic: They are putting Kelly in the toilet this morning on tv
Semi-on-topic, Nouriel Roubini claims gold is "bubble":
http://azizonomics.com/2011/09/01/why-nouriel-roubini-is-wrong-about-gold/
Wow I go to sleep and Europe shits the bed....
what do u think about this by ANdrew butter::
http://www.marketoracle.co.uk/Article30202.html
Spook the market bitchez
I guess there is no such thing as a tipping point. Things aren't going to fall over all at once, this baby is going down clawing at the walls, getting a toe hold on anything it can.
Is the average European (whatever that means) doing anything to prepare for this? I see the stats where the German public is pissed but what are they doing about it?
Germany. Berlin.
I will move to the south to my elderly parents until mid-october (preferably sooner, if in any way possible), hoping that i will get through this relocation without a full-fledged crash around me. If i would tell any friend that (hoping, crash) i would be considered nuts. People are kind of aware of the situation and are very much concerned, mostly due to politics, Frau Merkel etc., but only a few realize what really is on stake. I would say that 80% of the people have no idea and believe every bullshit they are presented with by the mass media, the politicians and the rest of the sheeple allstars, 10% are more aware and at least try to understand and not to ignore and 10% realize in depht what is going on and of the latter maybe 5% take serious precautions and prepare for a breakdown (however this breakdown may then occur and look like). Not one person i know does believe nor even take into consideration that as soon as in September and/or October things could get ugly here in Germany (politically and financially) - speaking about that is like telling everone you are a nutjob and a complete esoteric freak babbling about 2012 and the mayas world's end. My parents still do not listen lket alone act accordingly, simply unwilling to go into PM's with at least a greater part of their savings as they trust the gouvernment and especially their bank and that nice polite bank lady ("dear, stop worrying so much, that nice bank lady surely knows what she is doing and if it would be potentially dangerous out there she would tell us"). So, they may loose a damned lot of money (and i may get rid of all legacy), except the houses, which at least are debt-free and in very good order. Mother thinks that nothing can get worse than 1945 and that "well, if it ever comes that bad and we loose everything, at least all others loose everything, too" (good luck then, starving happily together with the rest of the sheep!) and father thinks that i am hysterical and far overdoing the situation and have no idea anyway as i am not a professional and therefore cannot have any real insight *and* that the common man can do nothing against fate's course and bad gouvernment and inflation or currency change anyway. Most older people are of that kind of thinking.
If this really is getting as ugly as it looks the majority of the people in this country will be as fu***ed as can be. Germany is very densly populated, there are far too many people and hotspot areas where civil unrest can easily occur, there is not enough police to prevent things everywhere and the army is a joke not worth mentioning. So it seems it comes to 'duck and survive' when the shit hits the fan. Small house, garden, seeds, family, good neighbourhood, friends, just enough PM's for later, and a low profile.
Well The Sidebar deal that Greece made with Finland is off the table. But the fact that one existed shows what Greece was willing to flog to get THE MONEY from Europe.
The ECB can't put in a bid directly, that would be monetization. [/sarcasm]
What is a country's soul worth? This is a fascinating study in just how much a dependency changes behaviors, or at least brings them into the light. Greece is a an entire society addicted to spending, they just keep pushing the bar in the cage to get their fix, no matter what it does to their future or how bad they look in the hear and now.
Only a matter of time before the "haves" and the "have nots" of the world start drawing up the battle lines. Both have their own definitions of greed.
And of course, the BlowHorn [CNBC] opens up programing this morning with more discussions on...QE.
Anger...check.
Pitchfork...check.
Short positions....double check.
Good grief.
Yeah, we're all totally fucked.
Nevertheless, I still see deflation.
What the fuck do I know?
I'm a moron.
http://geraldcelente.proboards.com
You said it.
There is supposed to be buyer of last resort. In simple terms a store of tangible wealth that the ponzi can rely upon when all else fails. We used to think that soverigns and CB's were the "last resort". The circlejerk of fiat is started with demonitisation of gold and ends with the re- monitisation of gold. Kinda like the pot of gold at the end of the fiat rainbow.
When soverigns and CB's come begging for your stash, you phyz holders, just pockem in the eye, kickem in the balls and tellem to go fuck themselves.
Whodathunk that simpleton phyz holders would be the " buyer of last resort" when the ponzi ends.
Short ETFs in IRA since May 2010...check
Down only 20% after being even for 2 days...check
Got 1000oz of silver....check
Got 50oz of Gold...check
Cash....check
Food...check
Guns...check
A plot of land in Costa Rica or Chile...oh shit
"Spanish and Italian PMI tumbled from 45.6 to 45.3, and from 50.1 to 49 respectively"
Italian Manufacturing PMI dropped to 47 not 49.
After 34 years as a guvment employee I thought I had a handle on acronyms. Then I found ZH and all of the financial acronyms. OMG
Why I donate to ZeroHedge. Take a look at the way the Financial Times reported this. Since when do yields fall on weak demand??
September 1, 2011 11:51 am
Spanish auction sees yields fall amid sluggish demandSpain’s treasury sold €3.6bn of five-year sovereign bonds on Thursday at moderate yields, amid continuing unease in eurozone financial markets over the creditworthiness of Spain and Italy.
The average yield of the new issue at the auction was 4.489 per cent, less costly for Spain than the 4.871 per cent recorded the previous sale of paper with the same five-year term on July 7.
In the latest auction, however, Spain sold an amount just above the mid-point of its desired range of €3bn-€4bn with a bid-to-cover ratio of 1.8, indicating only modest demand from investors.
S&P500 big picture remains bearish and this will ALWAYS exert the most influence. The only thing GUARANTEED is that the bearish medium/long term cycle will have the upper hand.
FX medium to long term outlook continues: Euro bearish and USD bullish.
As mentioned many times - bring on the OVERDUE USD rally.
IMPORTANT CHART HERE.
http://stockmarket618.wordpress.com
I've been reading this website for so long wow I actually understood that. This website kicks so much ass.
Uh ok so does that make it a good idea to do a carry trade in between QE rounds? For example, being long USD and short the EUR? I know a certain bank that had said position by early last March (according to them at least) and was getting their ass kicked on it at the time...
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