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Europe Slumps To Three-Month Lows As Spain Nears 2009 Lows
As we noted this morning, the perfect 'reality-check' storm hit Europe this morning and with Draghi dismissing hope for more printing and nationalism raising its ugly specter, broad European equity markets made nearly their largest drop in five months. With the BE500 (Europe's S&P 500 equivalent) at three-month lows and Spain's IBEX within a few points of the March 2009 lows, things are becoming critical once again. Spanish yields jumped back over 6% but Italian spreads actually underperformed on the day +14bps vs Spain +12bps as Holland 5Y CDS blew past 130bps to near crisis-peak levels - leaving GDP-weighted European sovereign risk at three-month highs. The LTRO Stigma has broken above 150bps for the first time since before the LTRO as the realization of the implicit subordination of LTRO-encumbered banks is crushing unsecured bond-holders (on average trading at 350bps near four-month wides). EUR-USD basis swaps deteriorated a little remaining near their worst levels in three months but EURUSD remains miraculously just above 1.31 (though almost 100 pips off Friday's close) as repatriation flows are not helping correlation-driven algos in the US anymore.
European equity markets (blue) collapsed today back to Credit's reality and beyond as they broke to 3 month lows...
The financials led the sell-off (light blue and red above) in credit but nowhere is this more evident than in the explosion of LTRO-encumbered bank spreads (red below) and the LTRO Stigma now at 155bps...
And with Spain over 6%, Italy popping, and Holland breaking away from the other AAA names, European GDP-0weighted Sovereign risk shifts to three-month wides...
and by the numbers, a sea of red in European equity markets...
and IBEX near 2009's lows...
Charts:Boomberg
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I see smoke rising from Egan Jones' hut...
Sound of gunfire...
Yes but but but Spain just had such a strong bond auction! Heh......
Egan-Jones is either with the fractional reserve banking syndicate, or they're terroristy*.
*by Executive Order
", off in the distance...I'm getting used to it now." -- "Life During Wartime" -- Talking Heads
It's not yet 1:30 and the equity markets are coming back! AAPL closes green today! Go PPT, go!
Yes, but I really want to know if Walmart-gate broke today to distract the masses from SGA-gate.
It was clearly just a soft patch! The economy is saved once more! All heil... The.... Euuhhhh....
Somewhat OT:
http://www.clickondetroit.com/news/Detroit-fire-boss-Let-some-vacant-bui...
If the decision is made to let buildings burn, who decides whether or not people are inside, and are they worth saving?
What does this do to fire/property insurance rates? How would this affect the various economies?
This is a decision that every city, in every country, will soon be making, if not already.
All that stuff's in the health care bill.
No, you will actually have to burn the building to see what's in it.
I upped you for both your comment and your username.
Congrats for so concisely ripping Pelosi and The ChairSatan.
Europe closed now so the hopium agents can go to work here in the US.
Agents = overleveraged HFT bots
Down 3% is the daily limit allowed by maggot policy.
Nationalism is worse than globalism?
especially for the globalists.
especially for the globalists
_____________________________________________
That is opposing globalism and nationalism. On what ground? What data gives that result?
No opposition between globalism and nationalism due to US citizenism.
Save one wants to believe in US citizen propaganda stating the one world government stupidity...
I've stayed away from the fray surrounding you until now. You are really quite boring. Just because other posters engage you or criticize you or make fun of you does not ameliorate your being totally and completely guilty of boring most of us.
In an effort at full disclosure, I lived in Asia for 8 years and I am not predisposed to hating anyone Oriental.
Not if you rule the world
Rex,
"Nazi" is short for Nationalsozialismus, or National Socialist Party. The UN, the EU, the Euro, liberal politics of the 2nd half of the 20th century all come out of 3-way disater that was WW-I the econimc disasters of the 1920's (Weimar etc.), the depression which came across the Atlantic, and WW-II. Nationaism was blamed by just about everybody for this 50 years of self destruction on the part of Europeans.
As bad as things are now, we are nowhere near that level of stupidity and self-destruction ... yet.
NSDAP =National Sozialistische Deutsche Arbeiter Partei
http://www.axishistory.com/index.php?id=2875
It was after all a German Workers Party......all responses to Moneyed Elites trying to restore The Gilded Age pre-WW1.........just as now the Bank-rolled Parties try to recreate The Gilded Age of Carnegie and Mellon and Frick and Flagler and Rockefeller and J P Morgan
Globalism is good (I use that term loosely) as long as everybody falls into the illusion that they are getting wealthier as a nation. Once that mask comes off then people wake up to the fact that they have been lied to and ripped off the anger starts to mount. Unfortunately they buy into another lie and direct that anger at the wrong people.
In the long run, there will be one government, one currency, one religion, no borders, one country, all our complexions will be beige, and there will be world peace.
But until then ... chaos, misery and world wars
I'm hoping in the long people won't feel the need for a government. It's nothing but a predatory institution.
all our complexions will be beige
Read Mendel.....
http://www.amazon.com/World-Fire-Exporting-Democracy-Instability/dp/0385...
Chua examines how free markets do not spread wealth evenly throughout the whole of these societies. Instead they produce a new class of extremely wealthy plutocrats--individuals as rich as nations. Almost always members of a minority group--Chinese in the Philippines, Croatians in the former Yugoslavia, whites in Latin America, Indians in East Africa, Jews in post-communist Russia--these "market-dominant minorities" have become targets of violent hatred. Adding democracy to this volatile mix unleashes supressed ethnic hatreds and brings to power ethnonationalist governments that pursue aggressive policies of confiscation and revenge
Nationalism is worse than globalism?
///////////////////////////////////////////////
Nationalism complements globalism in US citizenism.
Refer to Adam Smith.
It is all about generating the right inflows from the exterior to a nation to enrich the latter, and subsequently, impoverish the former.
where does 'blobbing up' fit into all of this?
i got my wedge in there at a 45 degree angle...Ibiza 2012 Southern Smoke Tour DOT COM Volume III who's with me?
Always refreshing to leave that dismal European mess in the rearview mirror and focus on the vibrant, expanding U.S. recovery.
Pump the accelerator and gun this PPT Rocket into yet another green finish!
"The costs and risks of maintaining the eurozone system are already immense and rising. So is an exit possible?"
"Is There No Escape from the Euro?"
http://mises.org/daily/6009/Is-There-No-Escape-from-the-EuroOnce your in, your in. It's a bit like the mob system...
There's only one way out.
"Force Majeure"
"Force Manure"
There fixed it for you.
Honestly, who really thought they could keep this ponzi from coming unraveled? This is only a taste of the French toast we are about to be served for breakfast. Spain, Portugal, Ireland, England, Netherlands, Greece? Simply the appetizer, wait until they unveil the main buffet. There is nothing anyone can do at this point other then to prepare yourselves, the next few months are going to get really ugly...
Pretty good bounce on that cat.
china will lead us out of this.....trust me:
http://www.businessinsider.com/seriously-these-chinese-malls-dont-have-a...
The only thing that will lead us out of this is the fall of the federal reserve and the TBTF banks. Otherwise we march on to war.
12850, near the days lows is my guess. I don't think they enough anti-gravity matter today.
Shortage of Cavorite...
This was NEVER going to work. Only Portugal benefitted today from ECB flooding.
http://confoundedinterest.wordpress.com/2012/04/23/yellen-announces-no-fed-tightening-after-twist-europe-rebels-against-austerity/
Will the Bilderbergs attempt to influence the French runoffs?
Why do they need to when they own both candidates?
Merkel seems rather "alarmed" at the current results...
the bernank will buy them!
Anyone else notice that 13000 line again?
It's the pre- November 2012 Obamabernanksquid Maginot Line.
a spanish electric company, iberdrola, bought my electric company, NYSEG in 2008 .. with loans I'm sure from those spanish banks. What an utter disgrace.