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Euro Bailout Fatigue

Tyler Durden's picture





 

Judging by the market's response to the latest European bailout, the one associated with Germany supposedly 'folding' on austerity and being beaten down by her broke neighbors, and which according to the chart below had a half-life of one full day; the market has already priced in all the news and is now praying for more monetary morphine from the ECB and BOE this week. It will almost certainly get those. Then what: a half life of 12 hours? 6 hours? Or zero (and will Torres come on with 45 minutes to the close to save the day?)


Spanish and Italian sovereign bond spreads have retraced well over a third of their knee-jerk rally on the bailout. Although they still trade 40-50bps tighter, their yields/spreads remain at extremely concerning and unsustainable levels clearly implying the market's lack of trust in either implementation or substance of the latest bailout. 

Even stocks can't hold their gains...

 


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Mon, 07/02/2012 - 10:57 | Link to Comment WALLST8MY8BALL
WALLST8MY8BALL's picture

Casillas and Buffon cant stop this one! Ole~

Mon, 07/02/2012 - 11:00 | Link to Comment mess nonster
mess nonster's picture

I can't even read ZH any more, its nothing but an interminable Euro soap opera but without any plot. How long can we linger at the deathbed? Hurry up Europe and die already, I'm beyond bored.

Mon, 07/02/2012 - 11:01 | Link to Comment SilverTree
SilverTree's picture

I'd like to see your list of alternatives...

Mon, 07/02/2012 - 11:06 | Link to Comment Dr. Engali
Dr. Engali's picture

It is getting old but you won't be getting this information any place else. Besides where else can you get such great commentary? Thats worth reading the Hedge by itsef.

Mon, 07/02/2012 - 11:27 | Link to Comment walküre
walküre's picture

ZH has the best compilation of real time and factual economic analysis out there. Why bother listening to paid shills on CNBC or read someone's opinion who is trying to sell a newsletter or other product?

Then I read some of the mainstream financial press online and what is fascinating to me is that the opinions, facts and conspiracy "theories" expressed by the ZH community are found everywhere else!!!

Which leaves only one conclusion. THE CAT IS OUT OF THE BAG! Everyone has stumbled upon the truth of the rigged markets, the political and financial conspiracy somewhere, somehow and NOBODY is stupid enough to keep on buying that bridge to nowhwere.

Yet, THEY keep on pretending and keep on lying to us every day. Sometimes obvious, other times blatantly obvious but ALL THE TIME lying.

Crazy. I guess everyone with an internet connection and an interest to read financial news (and the comment section) is no longer in their camp. Their own people know it's rigged and won't put any real money into the casino if they can't offload their crap to a bag holder.

The house of cards will come crumbling down and the shit show will end. Either they crash it themselves to escape the wrath or they're being all exposed for fraud and have to face the consequences. When you're in the middle of the ocean and the ship is sinking, you don't want to wait for the generators to fail and the lights to go out.

Mon, 07/02/2012 - 11:06 | Link to Comment Cursive
Cursive's picture

@mess nonster

I know I'm tired as shit of the Eurodrama, but glad TD is on top of it.  Everything in the market is macro-driven now and the Euro is the big news.

Mon, 07/02/2012 - 18:33 | Link to Comment sharkieboy
sharkieboy's picture

It is like waterboarding without water.

Mon, 07/02/2012 - 11:03 | Link to Comment mark7
mark7's picture

You pretend to have a real market, we pretend to have a real bailout. The only real market now is Habbo hotel but warn your kids to stay away from virtual sugar uncles!

Mon, 07/02/2012 - 11:06 | Link to Comment Loukanika the r...
Loukanika the riot dog's picture

The plot thickens from http://www.spiegel.de/international/germany/german-constitutional-court-...

The German Constitutional Court will decide on July 10 whether to grant a temporary injunction against German laws on the fiscal pact and the permanent euro rescue fund, the ESM, both of which were approved by the German parliament on Friday. The start of the ESM could be delayed as a result.

 

Mon, 07/02/2012 - 11:45 | Link to Comment Manthong
Manthong's picture

What’s the name of the German courts chief.. Herr Johann Robertswiesel?

Mon, 07/02/2012 - 11:45 | Link to Comment pods
pods's picture

Careful, there are some in CONgress who are drafting a law at this moment to encourage cordial internet discourse.

And if you cannot find it in your heart to post something glowing about mom, apple pie, and the use of remote controlled drones to encourage brown people to accept $$ for oil, you will now have to pay a tax.

Because The Nine have spoken.

pods

Mon, 07/02/2012 - 11:44 | Link to Comment OttoMBMP
OttoMBMP's picture

As far as I understand the Court has scheduled a hearing for 10 July. That doesn't mean that a decision will be published the same day. It could take addtional weeks.

 

http://www.bundesverfassungsgericht.de/pressemitteilungen/bvg12-047.html

 

Mon, 07/02/2012 - 11:08 | Link to Comment Temporalist
Temporalist's picture

And in the US there is dieting fatigue. Risk on = bibs on:

Darden Sees Olive-Garden-Red Lobster Making New Revenue: Retail

"Brunswick, Georgia, has a new two- for-one deal: an Olive Garden-Red Lobster combo store."

http://www.bloomberg.com/news/2012-07-02/darden-sees-olive-garden-red-lo...

Mon, 07/02/2012 - 11:09 | Link to Comment dizzyfingers
dizzyfingers's picture

Very best way to spend a few hours everyday, and once again, thank you Zhedgers for great info (I learn a lot), great slams and bams (I laugh a lot... but not so much lately) and for presenting so many new ideas about how to think about any given problem. Rock on here.

Mon, 07/02/2012 - 11:12 | Link to Comment walküre
walküre's picture

They killed the goose that lays the golden eggs.

This is true in many ways and applies to many economic models. When an increasingly growing number of the population stops consuming because they're tapped out, it doesn't matter how many billions more the elite keeps for itself.

Broader and more evenly distributed wealth among a greater number of participants had yielded economic growth and success.

The financial and economic policies around the world have established a small group of winners and a huge group of losers.

Now the winners are wondering why economies are shrinking, why consumption is down and why almost everyone is pissed off and disillusioned.

Mon, 07/02/2012 - 11:15 | Link to Comment Mugatu
Mugatu's picture

Anyone wanna bet that we are back to pre-bailout territory within 2 weeks?  

Seen this before - like 5 times!

Mon, 07/02/2012 - 11:16 | Link to Comment km4
km4's picture

MARC FABER: Europe Is Just In An Oversold Bounce, And The EU Summit Won't FIx Anything

Read more: http://www.businessinsider.com/marc-faber-markets-oversold-eu-cosmetic-fix-2012-7#ixzz1zTjlqpwa

Mon, 07/02/2012 - 11:23 | Link to Comment Snakeeyes
Snakeeyes's picture

Take a deep breath. HOW will ECB (or Fed) easing help the deteriorating economic conditions in the US and EU?????????????????????????????????????????????///

And Obama/Hollande are raising taxes.

http://confoundedinterest.wordpress.com/2012/07/02/pmi-falls-below-50-a-warning-shot-and-administration-is-raising-taxes-ignoring-the-laffer-curve/

Mon, 07/02/2012 - 12:17 | Link to Comment Galactic Superwave
Galactic Superwave's picture

Time for a nice little US involved war to distract the MSM/sheep.

Mon, 07/02/2012 - 11:26 | Link to Comment nickels
nickels's picture

C'mon Wily,-- Look Down!!

Mon, 07/02/2012 - 13:17 | Link to Comment luckylongshot
luckylongshot's picture

So we get to see more song and dance from politicians about fixing the debt problem by creating more debt. However the audience knows that this is illogical and so no one takes them seriously. Now if they changed their tune to getting those private groups that own the fractional reserve banking system to write off a big chunk of the debt or lose their control of the system, that would get the audience excited.

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