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Europe Slumps With Spain At March 2009 Lows
It appears the chaotic volatility of last Summer is rearing its ugly head once again as credit and equity markets in Europe flip-flop from best performance in months to worst performance day after day. With Spain front-and-center as pivot security (as we have been aggressively noting for weeks), sovereigns and financials are lagging dreadfully once again. The Bloomberg 500 (Europe's S&P 500 equivalent) back near mid January lows, having swung from unchanged to pre-NFP levels back to worst of the week at today's close, European banks are leading the charge lower as the simple fact that liquidity can't fix insolvency is rwit large in bank spreads and stocks. Treasuries have benefited, even as Bunds saw huge flows, outperforming Bunds by 18bps since pre-NFP but it is Portugal +33bps, Spain +22bps, and Italy +9bps from then that is most worrisome. LTRO Stigma remains at its 4 month wides but financials broadly are under pressure as many head back towards pre-LTRO record wides. Europe's VIX is back up near recent highs around 30%. With too-big-to-save Spain seeing record wide CDS and even the manipulated bond market unable to hold up under the real-money selling pressure, the ECB's dry powder in SMP looks de minimus with only unbridled QE (since banks have no more collateral to lend) and the ECB taking the entire Spanish debt stock on its books as a solution, access to capital markets is about to case for Spain (outside of central-bank-inspired reacharounds) and as we noted earlier - every time the ECB executes its SMP it increases the credit risk for existing sovereign bondholders (and implicitly all the Spanish banks). Spain's equity market is a mere 5% above its March 2009 lows (55% off its highs).
European sovereign bond spreads post NFP have been mixed with Portugal and Spain dreadful and US Treasuries outperforming the safety of Bunds by 18bps also...
With Spain (over 500bps) the worst of the lot (as hedging pressure continues as we suspect the bulk of bonds are already collateralised at the ECB)...
and Spain's IBEX equity market index is back to March 2009 lows...
The chaotic swings in European credit and equity market are back...
and some longer-term persepctive on European and US credit and equity markets...
Charts: Bloomberg
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Europe is going down the debt toilet bowl, circling the rim, sometimes certain pieces are rising slightly higher, some pieces circling slower than others but the end result for all is certain.
The entire global economic system should collapse, the only reason it hasn't is because of manipulation by the Federal Reserve and the ECB.
The best thing people can do at this point is learn primitive skills, one of the few things that can't be repossessed from us is knowledge!
http://www.heartrootnatureconnection.com Check out the site when you have a chance, you'll be glad you did.
Enjoy,
John
If you're on a leaking lifeboat in the middle of the ocean surrounded by sharks and water is entering 5% faster than you can bail it out, and you know it , you'll still bail to the very end.
OK analogy, but need to somehow add another feature, namely, the longer you bail the worse the pain at the end.
More like the captain of the 'lifeboat' (ponzi scheme) is throwing all of the other passengers overboard hoping the sharks get full before his lifeboat sinks.
FED and politician central planner masters of the universe printed and pumped, we got DOW 13,000 but dead empty markets, and all I got was this lousy 'Im an american and now have $210,000 in new debt per taxpayer and we're in a hard depression' T-shirt?
Wow this sucks!
No kidding. Markets not even down that much after china's miss and euroland going south. They must really be expecting QE3. But. The conundrum is that for it they need the US markets to tank, but they're still front running so it won't tank.
Then there is the possibllity they will attempt to keep doing what they are doing now, indefinitely.
Without ever announcing QEn
Sure, they can say think that and say this time is different. Everything lasts forever, especially when propped up by a toothpick.
Dollars might end up being like ration card stamps. You will be forced to use them along with something of else that actually has value to buy things. $100 and a pre 1980 penny will get you a pack of gum.
I could see something like that happen. I never thought about the dollars being used in that way, but it does make sense, especially if copper would hit $25.00 or more a pound.
-John
Edible Plant Tours - Primitive Skills Classes
http://www.heartrootnatureconnection.com
this is looking good
nothing like all-out blitzkreig chaos and mahem to give us all confidence what a fine job the politicos and ECB are doing managing (cough) the economy for the past 4 years back to recovery (choke)
chin up, they're bound to turn this pigs ear into a silk purse in the 2nd Quarter
If THIS is the 'masterful FED central banksters' demonstrating their agile central planning control of markets, HOLY CRAP are we ever screwed!
We Are Screwed
the problem is banking and Govt ...and they're the clowns 'fixing' the problem of banking and Govt
..it's like asking Hitler to make good Europe after he rampaged all over it
Spains not to big to bail, just need a large bucket..... Recommendation discussed on Bloomberg Radio this morning was 3 Trillion Euros of printing capability for the ECB.... The German taxpayer really wouldnt mind, the Amerikan taxpayer hasnt..... Benny could go over and they could knock it out in a weekend.
Yep, throw another €‘¥£$ 3 Trillion at it, that'll fix it
...just like the last £¥€$ 20 Trillion did the job
What choice do they have?
Other than Ron Paul, no one else has the balls to pull the trigger
it's not up to Ron Paul or anyone else to save us ..it's down to us to pull the trigger..
Stop Paying Your Taxes
...don't feed the parasites (problem solved)
HELL YEAH! WE are the answer, not some more ass hat politician buttboys for the central banksters or auditing the bankster pirates....stop paying them to screw you, and they whither up and die!
Heck yeah!
Print team Print!
I think byy trying to save Euroland with all this printing the big threat is Japan. An ever weakening euro and Dollar will cause havok on the yen, unless they match with every program that comes out of these 2 countries
Now if Benny shits the bed today will that finally kill this thing? good grief
And the bulls**t with gold/silver continues - silver from $33/oz down to $31.50/oz.
not to worry, check-in with King World News later for some hopium on how their Hold & Hope strategy is really working despite 2 months of getting slaughtered
Hurry retail muppets! You got to buy stocks! If you aint in, you caint WIN! Buy your PowerBall, er, stock tickets today! Food stamps now accepted for stock ticket purchases at most online trading platforms!
And now that Europe is closed it is off to the races for a green U.S. close...
same old - same old
Message from ECB IT dep: CTRL + P keys should be fixed over the weekend.
Reflections on Europes financial woes. Special subject: the economies of the European Community. Which debt is owed by whom? Who will pay the bill?
http://www.webcompact.net/index.php/news/4795-euro-collapse-explained-in-3-minutes-
Who will pay the bill? Well I keep getting informed by Zerohedge master traders that no one EVER has to pay the bill! Imagine that.
Derivative implosion minus 10 and counting.
How theyre keeping any control at all of this jalopy at this point is amazing to me.
This reeks of desperation now. "Once in a generation buying opportunity...bad news is good news because it means more QE...Europe is fixed". Man they look stupid, and the only trick left in the bag is the one that did not work the first 3 times they tried it.
I keep getting a mental image of Bernanke tightrope walking across the Grand Canyon in gusty winds....definitely not much room for error now! One LITTLE slip and its all over!
Easy! Double up!
Just like a roulette system I once worked out....
Quick someone move up the Facebook IPO to save the market
yes, treasuries have certainly benefiited
those bunds? seeing huge flows and getting outperformed by usaUSA! by 18 points?
this is 2 "risk0ff"s in 1 week, BiCheZ!
methinks a busy weekend of eurocrapper bullshit coming outa both ends of the parade of blowhards
strong dollar, BiCheZ! funny as a fiat crutch, too!
the US treasuries tell me what i need to know
The banking elite want every country and every person in perpetual debt, so that they are repaying from the day they are born.
http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref
Ive got a better link instead of whining about what the central bankster degenerate 'elite' want, do something to stop it
Stop The Pirates
Mark Twain, 1893 :
The £1,000,000 Bank Note and Other New Storieshttp://www.eastoftheweb.com/short-stories/UBooks/MilPou.shtml
Right ZG and don't forget to also max out the credit cards and buy PMs. That is what I did and they haven't lifted a finger against me in two years. Not even a threatening letter and I screwed almost all the big boys. Too bad I lost my PMs in a boating accident.
once the hell bound criminal globalists own all debts, one european country at a time, one US state at a time etc., they will then crash the markets. derivatives were created for a reason, and will signal the implosion. just make sure to have have loose change handy, to pay taxes on everything and anything!