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EUR Pops As EFSF Issues 3-Month Payday Loans Then Promptly Tumbles On News Greek Lenders Fail To Reach Deal, Lethal Grenade Attack In Belgium
Following a series of modestly successful debt auctions out of Europe, primarily in Spain and Greece, the morning capped its positive tone after the EFSF managed to sell €2 billion of 3 month deals: an event to which the EURUSD popped by 40 pips as apparently investors do not expect the EFSF to go insolvent in 91 days. However, the positive mood was quickly wiped out after Reuters reported minutes ago that private bondholders have concluded talks in Athens without reaching a deal, which confirms that that very basis of the July 21 deal, not to mention its October revision, the NPV "trim" of Greek notional bonds, is and continues to be elusive, which means that Europe's banks are certainly unable to still take even a 50% haircut, despite all protestations to the opposite namely that everyone has cut their Greek exposure. In other words, Europe's banks have, once again, lied to everyone. And rounding up the sour note of the morning is the breaking out of Liege, Belgium where one or more attackers are said to have thrown Grenades at a bus stop, with at least 2 people confirmed dead and 10 wounded. Unfortunately, the deadly anger is spreading ever closer to the core of Europe.
Le Soir with more on the deadly attack:
Two people were killed and at least a dozen were injured in the heart of Liège, according to a first assessment. Several people have hurled grenades and fired into the crowd. Follow the live situation
An individual of forty years has launched several explosive devices in the direction of a bus shelter, located on the Place Saint-Lambert, where many people were present.
Four explosions were then heard and gunfire.
An initial assessment, interim reports of two deaths and a dozen injured.
One of the authors of the attack committed suicide.
Place Saint-Lambert was closed
As for the EFSF sale, here is Peter Tchir with his explanation:
The market popped after the EFSF announced completion of a sale of just under 2 billion euro of 91 day bills. The good news I guess is that it came at the ultra low yield of 0.22%.
Why are they doing 91 day bills for EFSF? The point of EFSF is to address the liquidity part of the European sovereign debt problem. The EFSF does absolutely nothing to address solvency issues, but it can help with liquidity and rolling over existing debt. But what is the point of 91 day EFSF paper?
The "bazooka" version of EFSF was meant to be long dated with leverage. Leverage doesn't seem to work, but what happened to long dated? The EFSF should be borrowing long term in order to provide financing for weak countries. This is merely adding to the roll risk problem. Now with whatever sovereign debt that needs to be rolled, Europe will have to roll EFSF paper.
If downgrades are coming (and it seems like Fitch, Moody's, and S&P are moving in that direction), why would you not try to lock in more money at longer terms now?
The market can rally on this news, but it is a blatant attempt to try and make something sound positive, when the reality it is yet another bad decision, in a long line of bad decisions, relating to EFSF. If they had raised 10 billion of 5 year money at 2.2% (France's yield) I would be more excited that they are doing the right thing longer term. This is just for show and in the end is going to add to the liquidity problem, rather than addressing it.
The ECB "unlimited" 3 year money seems to be having some effect. Curves are steepening, but in a weird way. Italian 2 year yields are 26 bps better, the 5 year is unchanged, and the 10 year is 10 bps HIGHER. I would not have guess that with the 2 year 26 bps better, the 10 year would actually be worse. That is a strange move and is likely distorted by the "unlimited" 3 year money.
Spain also came with short paper (1 year and 18 month). More respectable than the 91 days but again, sticking to that the 3 year and in theme.
Europe, and the EFSF in particular, should be locking in longer term financing, not going for the easy short term roll. It is not a solution to their solvency problems, and is not helping the liquidity problems.
Maybe we rally more as investors get excited about a possible Fed Holiday Season present, but don't view the EFSF auction as much of anything (other than a sign that they really don't know what they are doing).
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To what end this ruse? NOTHING is being done to IMPROVE the situation.
No end, but seems to me people are having a "BANG" up time out there. Why the unbridled grenades at a bus stop? Sirously though, one would think the violence would be more directed at the source, not ancillary nuances such as socialized busing. Lord.
Just as profits are private and losses are socialized, pleasure is private and violence is socialized. We've just ridden into perdition.
The trick is to push the people as far as possible and keep them right at the edge of cracking, that's when politicians are able to achieve the most and gain their glory.
"In other words, Europe's banks have, once again, lied to everyone." - no shit, you don't say? that's a surprise...
Personally, I think it's wrong to imply that the attack in Liege is anything other than a another looney at this stage.
At the least that would be several loonies.
"breaking out of Liege, Belgium where a lone attacker is said to have thrown Grenades at a bus stop, with at least 2 people confirmed dead and 10 wounded"
but at a bus stop? wouldn't ied's under chauffeured limos of banksters and eurocrats be more appropriate, if harder to execute (pun)?
Right. Banksters and kleptocrats don't ride buses.
New Video game lets you torture and kill banksters - http://maxkeiser.com/2011/12/11/new-video-game-lets-you-kill-and-torture-bankers-how-cool-is-that/ *Product not yet rated - SEC too busy fiddling their diddles to tranny porn.
Euro-peons are mindless idiots who are not able to think and understand who is really fucking them over. Instead of directing their anger towards their royal families, politicians and bankers, they are about to initiate yet another genocide against minorities, as this latest bus stop attack proves.
Same as they did 70 years ago.
it was three people who hurled grenades, and one of them shot himself in the head right after the attack.
these things look very real all of a sudden when they happen close to where you live :-(
edit: police just arrested the second shooter, and the third one is still on the loose.
Fair enough if i'm wrong, I was going by the story above which said "lone attacker."
Just seen a Sky news update which didn't say there was more than one attacker only that there was "atleast" one attacker
never said you're wrong. this is a developing story and i just happen to be closer to the source. that's why i was sharing it here.
To both, if you reread it looks like it was an inconsistency in the first print that has been corrected.
Thanks MsCreant.
update: apparently they didn't use grenades but the explosives were thunderflashes
the casualties were from kalashnikov fire.
Are thunderflashes the same as flashbangs?
How many times have you known the media to be wrong hours, even days, after the event?
There are really two stories in there. The auctions and grenade attack would seem to me unrelated.
three stories: "...the EURUSD popped by 40 pips..."
I'm still trying to traduce "popped". I pop, you pop? Is Tyler whacking it?
http://www.youtube.com/watch?v=EAzm64zXNjk
Europe is fixed again!
As in neutered?
And could this be why the latest EU "deal" guarantees that bondholders will be made whole from here on in.
Some bondholders are notorious vulture funds.
http://tinyurl.com/8yzm3tf
Public transport sucks.
That is about as good as I can figure also.
"Hey, lets get some guns and grenades and go kill poor people."
"OK, I'm in."
"Me too! Can I kill myself after?" "Sure"
Decency and sensationalism, may result in a quite unpalatable outcome when the two are separated. I enjoy some sensationalism in the morning, but not this kind, when a bombing of a bus stop and an economic news are commingled.
Corzine hacked ZH!!!
Keynesians do not see any difference there. blood is good for growth...
I enjoy some eggs in the morning, but not this kind, when a yolks of an over easy and an order of hash browns are commingled.
"price tag" (combining economic crimes with actual bloodshed):
http://www.nytimes.com/2011/12/14/world/middleeast/radical-jewish-settle...
Agree....if he had thrown in inside a bank or a government / eu finance ministry then maybe, but otherwise it just looks like a loon....
maybe there was a banker on the bus??
sorry, my fault: The 1% do not ride buses!
Why do they always kill the poor and innocent? Even in auto accidents, its the drunk driver that survives.
true, especially when the drunk is driving his bugatti through pedestrian area...
the drunks (and some children) do not resist the momentum and roll with the punches better?
god is testing the faith of believers?
Speaking of which... the news coverage of that (grenade thrown inside a bank or gov't office) would be far less, I suspect, than something that gets linked to either racial or religious causes. The guy who flew the plane into the IRS building... that whole event was in and out of the collective consciousness in about 24 hours. The shoe bomber or the underwear bomber, not so much. My perception, anyway... maybe I just see what I want to see.
Roll, roll, roll your debt
Gently down the stream
Warily, warily, warily, warily
Interest is obscene
Could any of this be related to Higgs Boson?
Nah - didn't think so.
City council via fr paper Le Monde said attack was linked to an evasion attempt, ie no apparent link with mightly wave of anarchists-claimed letters reported recently
http://www.lemonde.fr/europe/article/2011/12/13/fusillade-meurtriere-a-liege-en-belgique_1618002_3214.html
DSK? i thought he was running around freely anyway...
What have you done, SuddenDebt?
His avatar will be used against him in a court of law!
to all future grenade tossers, please leave the innocent alone, direct your projectile at bankers and politicians only! be a hero!!!
Grenades in the hands of civilians? How could this ever happen?! They are illegal after all. tsk tsk /sarc off
yawn!
Wonder how long before the domestic terrorists OWS groups get their hands on some nades? They seem to be fond of following after their mates across the pond.
Still nothing but rumors but according to some reports escaped convicts are involved in the attack.
Other gossip: that it's related to revenge for Pakistani family that was convicted last week by Belgian courts for the honour killing of their daughter.
^^^this. the religion of pieces.
Of course, Kyle Bass predicted this will all happen, and the REAL Greek default will occur next Monday....beginning at 12:00 through 16:00, (specific prediction at 14:30).
http://www.youtube.com/watch?v=5V3kpKzd-Yw
thx for link
The european civil war has commenced!!
A European civil war is called a World War.
Daily Telegraph:
"The Karachi Post in Pakistan claimed that the attack was linked to a sentence in an honour killing case"
"The attack comes a day after a Belgian court sentenced four members of a Pakistani family to prison for the murder of their law student daughter and sister in the country's first "honour killing" trial."
Not sure what this has to do with anything else...
What a surprise.....muslims. Europe is now infested with millions of these useless, ignorant, tribal barbarians with no way out. I guess the Jews from the 40's are getting quite a grin from this.
infested. perfect word usage. +1
No deal in Athens, really? I'm totally shocked!
Hold judgement for now I guess. Still developing story. But it will be interesting to see who and why the attack was executed....
Tempting to come to conclusions... just hope it isn't what some may think it is.
Society in the west is more fragile than we think.
Belgium is unstable anyway - when it's not Marc Dutroux procuring little girls for politicians, it is politicians hiring hitmen to liquidate opponents of helicopter deals - remember the murder of Andre Cools and the Augusta A109 scandal when Willy Claes was jailed ? Belgium is a powder keg
Has anyone spotted Nigel Farage?
Well Jeez - if you're gonna toss a grenade at something why a bus stop full of working folks? Why not a Mercedes with a few GS suits onboard? Kinda like the guy flying his airplane into the basement of an IRS building and killing a janitor. Just plain stupid.