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Euro CDS Spike As Draghi Shatters Rumorville
What Mario Draghi did today is the worst of all possible worlds: on one hand he is allowing more financial risk-taking on the ECB's dime courtesy of increased liquidity and relaxed collateral requirements as well as longer LTROs, on the other he essentially killed any provisional bailout rumors, saying that the ECB will not monetize, nor lend to the IMF. The result: sovereign risk is soaring, as seen by this CDS update.
5Y 10Y 5/10's
- ITALY 465/480 +13.5 439/459 -29/-14
- SPAIN 369/384 +6.5 344/364 -23/-8
- PORTUGAL 1045/1075 +5 790/860 -265/-205
- IRELAND 675/705 0 505/575 -180/-120
- GREECE 64.5/67.5 0 66/70 0.5/3.5
- BELGIUM 285/297 +4 275.5/295.5 -13/2
- FRANCE 192/197 +5 211.5/219.5 17/21
- AUSTRIA 168/176 +1 182.5/192.5 13/18
- UK 90/94 +2 105/111 14/18
- GERMANY 93/96 +2.5 111.5/117.5 17/21
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Widening bitchez!
Massive whipsaw in the ES here.. as well as CRUDE on the headline - http://hedge.ly/vCuXEu
30-year US bond futures drop hard. Should the price fall much below the strike price of 140 for December options expiry, then a whole chain of put options can fall into the money.
http://quotes.ino.com/chart/?s=CBOT_ZB.Z11.E
Considering that 30-year TIPS yields are below 1%, this might actually be where the rout occurs, though I've been calling for a sell off in that for quite some time.
"the worst of all possible worlds: more financial risk-taking ... courtesy of increased liquidity and relaxed collateral requirements ... AND no monetiz'ing..."
Monetizing - i.e. buying one's own debt - is better than direct printing, because it means that one is already formally enslaved, Bitchez.
One kind of debt versus another - one kind of fraud versus another... hee haa.
Hell yea, the most sane thing to do when your family is completely bankrupt is take out a loan from a loan shark and go gambling in Vegas!
Dog, here's the point of my Tyler quote comment: Tyler's quote is not about debt versus earnings/savings, but about one kind of debt versus another.
And I say: What difference does it make whether a nation prints cash ansd gives it to banks - i.e. increases liquidity, which deflates the currency - OR - "sells" government bonds, i.e. takes on debt, and buys bank issued garbage paper, i.e. takes on debt ?
Answer: the latter just kicks the can down the road a little further - i.e. delays the moment of truth and truthfullness and declared default and or BK - i.e. time is the only difference. Consequently, my Tyler quote indicates that Tyler, in this one blip, advocates "kicking the can" evil over the print liquidity evil.
Evil is evil. Debt is debt. Earnings, savings, PMs, productive land, real property, capital goods, intellectual property, productivity and sales - are all forms of "money" or capital or real assets. That, was and is my point.
I can take my real assets to Vegas and be an idiot on my own tab, or borrow cash from my neighbor and my bankster credit card and be an idiot on their tabs - that, is the difference of funding/sourcing - or I can stay at home and invest my assets locally, where I control them, and that, is the difference between intelligence and idiocy.
Draghi can print if he wants to
He can print the night away
But if he won't print
And if he don't print
The he's no friend of The Bernank
Dodd's got his fingerprints all over that one too: "BAPCPA"
http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Pr...
for those unaware [dated material] ___ a legislative reform package intended to make it harder for consumers to get court orders wiping out their uncollateralized debt. the act requires debt counseling and means test for would be filers [enacted 4/20/05].
PS. federal student loans cannot file for discharge of their debt, period!
PS2. Elizabeth Warren is running for Mass. U.S. Senate, and needs help. Why, am i posting this? Karl Rove is running campaign ads that are far below the belt to discredit her.
If that happens, I'm in church Sunday morning.
There were probably collective orgasms in newswire business centers when the 1270 handle was reached and AP pulled the trigger on this:
"Associated Press
http://www.sltrib.com/sltrib/money/53075649-79/futures-cut-bank-european.html.csp
First published 8 minutes ago
Updated 7 minutes agoUpdated Dec 8, 2011 07:21AM
NEW YORK • U.S. stock futures are jumping after new figures showed the number of people applying for unemployment benefits fell last week to the lowest level in nine months.
The gains also followed a move by the European Central Bank to cut a key interest rate by a quarter-point. The rate cut was roughly in line with expectations. The bank last cut rates only five weeks ago, on Nov. 3.
Less than an hour before the U.S. market opening, Dow Jones industrial average futures rose 67 points to 12,281. Standard & Poor’s 500 futures rose 6 points to 1,270.
The market will be closely watching a European economic summit in Brussels scheduled to start later Thursday."
I guess the only question now is what will Ben Bernanke do to save the world from free market capitalism and preserve truth, justice and the American way of life.
Courtesy of Super Mario's big schtick.
If I wasn't distracted by your startling resemblence to tits, I'd remind you that there's a printer in the basement and an unconfirmed rumor of tons of gold somewhere in the attic.
So there. No generic cornflakes for our family!!!
http://twg2a.files.wordpress.com/2011/12/bernankeassmoney.jpg
Jim, are you distracted by this too...? Mother nature?
But 'He Who'....cant we just get another credit card and go on a spending splurge and fix everything?
This is the so called american dream, spent the money you don't and never have.
Damn rule of law!
DAMMNNN your rules and laws! We demand PRINTING and we demand it right NOW!
PPPPRRRRIIIIINNNNTTTTTTTTTT!!!
We the sheeple DEMAND it!!
Jumpin' Jack Flash Crash
it's a Dragh, Dragh, Dragh
Germany 3 Squid 1.
Not even half time and we're without timeouts. At least for the shadow banking...
But it is "Save the Banks, the countries be damned". Bankers really about to be confirmed as scourge of the earth in public mind on yet another bail.
Should set off another wave of violence on our God-forsaken continent. Prepare accordingly...
Let it die, let it die, let it die.
Run little PIIGSies run! The big bad Drag(hi)n is out to get you
ECB: All the short term liquidity you can eat, but.....
NO NEW MONEY
Bank nationalizations in 3....2....1....
NOT GOING TO HAPPEN.
Sovereigns are bankrupt.
Watch as certain institutions buy up state assets on the cheap during liquidation to "pay" the national debt.
Funny thing is the "money" used to pay for those assets would be borrowed from the ECB at 0%.
This will be the greatest rape of the public for the benefit of THE few.
"Thank you Masked Man!"
He is not going to let the system reset on its own, is he? Pay the piper. Nah, not yet.
Its all Bullish, nothing to see here.....move along.....
Goldman needed more time to accumulate European Bonds.
Sweet Jesus I'm getting seasick. It's not to early to have a bifta people and chill the f@*k out
Just let the fucking thing collapse already and let's get on with the rebuild
Oil Oil - Thu Dec 8, 2011 8:56am EST
BEIRUT (Reuters) - A Syrian pipeline carrying oil from the east of the country to a vital refinery in Homs was blown up Thursday in what the official news agency SANA said was an act of sabotage by an armed terrorist group.
Keep an eye on the fuckin clown traders at the CME. I wouldnt tade 5 cents at that dump, its nothing but specualators trading on the news of the minute. Sure, buy dollars all is well in the US. Employment is looking up, sales are wonderful, credit up, all is great except the reports are all lies. Gold Bullion is the only protection left.
What the fuck just caused gold, silver and platinum to fall off a fucking cliff?
Traders selling paper gold contracts on the news of the minute. Sort of sicking to watch this crime circus isn't it?
Yea, and... USD spike due to Eurocrash. Amazing what a little self induced research will do for ones own questions.
Shit is down hard though.
Silver down a dollar in like 10 - 15 minutes :(
Gold almost down $40 in the same time period.
And yes, I am getting very sick of the circus.
Man Im tellin you forget looking at the minute chart on gold and silver, it means jack shit! Got to put PM's in a safe and forget about it, for years.
I own no paper gold, but I do watch the price from time to time.
I'm buying physical and hedging it with GLL until the price breaks 1900
Have you looked at any currency or equity futures charts? ES, 6E? Deflationary response when the market was expected the ECB to print away.
First Mate: Captain Morgan, there is some NEWS from the ECB!!!!
Captain Jon Paul Morgan: What kind of news????
FM: Does it matter, sir?
Captain JP Morgan: Right! Here's our chance to SHORT the PMs again and save OUR ASSES!! DIVE, DIVE, DIVE!!!!
Dollar skying?
I don't care what caused it, I mean who knows
I'm gonna buy the dip
There is something behind the scenes. A new ECB chairman stating his hads are tied. This is political. It is intended to force the hand of the soverign states. This is his weapon to consolidate power. The new Hank Paulson letter.
Dang! All effectiveness of rumors that there will be free money, mountains of it, the only thing keeping equities afloat at all, has just been killed? Well at least for this hour anyway. I bet if another printing rumor came out at noon it would work all over again.
AWW what do we got, a printing fan in the room down voting everyone?
The one junk punk rides again!
Isn’t this clown Draghi a plant for the Jewish circus at Goldman Sachs? Folks, this is all by design.
Devo dire che è simpatico questo ragazzo!
SPX is like "Bitcheeezzz!
OK, Ben. It's all up to you now!
.500 off on silver not a cliff.
GOLD has been attacked -- 1710 has it found support - or will it sink past the 1705 sipport line? BUY MORE under 1710?
http://www.youtube.com/watch?v=CIQETV30_u8
From $1757 to $1707 in matter of minutes. My balls are tingling on this roller coaster.
It's pretty sad day when, with the blessing of the Goverment,that you pay to work for you,and you give them lifetime pensions ,allow and participate in the THEFT of our money through the manipulation in gold prices.
This is a hangable crime.
The goverment will NOT allow you to save any money.
They need you to carry debt,not money.
Gold is money,Debts enemy.
Money is tradion and a barbaric relic..........
FUCK YOU's PPT
Let it go to 1600
Draghi...don't you know coffee is for closers!?! Step away from the pot Ben and show'em how its done...
ABC - Always Be Creating. Rumours that is.
Draghi offers the EU Banks as much free money as the need,and cuts their reserve requirements by 50% to 1% and gold still gets bitch slapped...????????????
Fuck yous PPT.
You little fucking weasel Timmy G.
FED and Squid forget that Germans like all kinds of kinky S&M, even financial ones.
"Give free money to banks!"
"NEIN NEIN NEIN! OOOOH!"
"Print or you will crash"
"NEIN! NEIN! Das ist ja GUT! Geben SIE MEHR! MEHR!"
"....eat shit you piece of.."
"JAWOHL, HERR AMERIKANER!"
Bernanke was overheard at urinals: ËCB such a pussies, we could print their ass to the moon faster than they can say BITCHEEEZ
Enter Ben Bernanke Stage Right! US Tax Dollars to the Rescue!!!!!!!!!!!!!!!!!!!!
Draghi is gaining more and more of my respect as a outstanding poker player. He's winning the game of "chicken".
http://thechinonomist.blogspot.com/2011/11/dont-call-me-chicken.html
So Merkel is going to have to bring some serious pain, to bring the debtors to the treaty table, no? Why would they consider signing as long as they can get funding for their habit?
God Bless droge chute Draghi you made my day cuz of you mama gets a new pair of shoes for xmas
Draghi is just setting up the EuroSheeples for their loss of soveriegnty.