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Europe Smashes All Market Records On Its Way To Total Insolvency
Spain's IBEX equity index closed at Euro-era lows today having dropped over 10% in the last 3 days (crushing the hopes of the afternoon post-short-sale-ban squeeze yesterday). This leaves IBEX down over 30% for the year (and Italy down over 18% YTD). Add to that; inverted long-end curves in Spain (and almost Italy), all-time record high short- and long-term spreads for Spanish debt and euro-era record high yields, record wide CDS-Cash basis, dramatic short-end weakness in Italy, new low negative rates in Switzerland (-46bps) and Germany (-7bps), and EURUSD at its lowest since June 2010 at 1.2059. But apart from that, the EU Summit seems to have done the trick nicely. Financials have been crushed in credit-land as subs notably underperform seniors and HY and IG credit continues to lead the equity markets lower in reality. Meanwhile, remember Greece? 30Y GGBs have dropped almost 20% in price in the last few days and have closed at all-time record low closing price at just EUR11.55!! S'all good though - where's Whitney?
You've seen enough Spanish charts - you nasty rubber-neckers...
So here's Italy's 5Y Bond spread to bunds...
and Greek Bond PRICES...
and European equity indices post EU Summit..
Charts: Bloomberg
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What happens to EUR and to USD if this causes Swiss to decouple CHF from EUR?
Just a guess. Euro crashes, CHF skys to the moon, stocks implode.
It's all coming apart, guys. Prepare accordingly.
Gold and cash.
And turn that cash into gold before too long. Maybe a gun or two and LOTS of ammo.
GRAB A HOLD OF YOURSELF MAN!!!
Remote farmland with water first. Helps if you've got some old growth forest and lakes... you may be there for a while and might as well enjoy it!
Yes, a good choice if you have LOTS of cash & gold to pay the property taxes, which will likely go up. But, yes, remote farmland with water is an excellent choice, especially if your wife would go for it (which mine will not).
PM's set aside for property taxes. Check.
I hear you on the wife thing... but that will change once the upscale shops close and the violence escalates.
Skinny dipping and float planes never get old.
Here comes another summit, additional panicked calls from the IMF and global leaders and ultimately, coordinated central bank action.
1% 10 year yield and another bubble is on the way.
I would not commit a single rupee to the Spanish bourse.
How can you have your-r-r-r-r pudding vacation if you won't eat your-r-r-r-r meat?
The more remote you get, the more buggy. Unless your really like buggy.
Not necessarily on the bugs. If the local bat, bird, and dragon fly populations are doing their jobs, then bugs not necessarily an issue. And no, I'm not telling you where this paradise exists.
Don't forget xanax. Money of (street) kings!
Marry a local girl, I did.
Why (specifically d/t CHF decoupling) would stocks implode?
You never remove the last piling holding up the house of turds, especially if your standing underneath it.
I'll take "Phrases that End with 'Bitchez'" for $200, Alex.
"I'll take "Phrases that End with 'Bitchez'" for $200, Alex."
All-time classice comment! I am dying laughing here...
Con
Gotta love Jesse from Breaking Bad.
Somebody find me a cook.
Post-crash world, I expect a few former brokers will be in desparate need of some crystal! :)
Potent Potables for $500 is more like it. I enjoy a cocktail with the festivities.
Merkel, Hollande, and Draghi walk into a bar... I forget the rest of the joke, but your mother's a whore.
So what u r saying is that I should go long Toner Ink?
At this level can they? The SNB will get hit very hard.
The locomotive is going 90 clics, the cars behind it are slowing but going the same way. The cars in front are stopped. That is decoupling. Physics bitchez
Mr. Market will call Ben's bluff now, he won't wait until after the election.
The boyz need their fix NOW.
Funny how junkies set the rules.
Inmates running the asylum.
One flew over the United States...
All that play money went bye-bye, but my pile of PM is unchanged.
I WISH THAT WERE TRUE I CAN'T WAIT FOR INTEREST TO RISE but
Treasuries Doomsday Is Four Years Away For Vanguard
http://www.bloomberg.com/news/2012-07-16/treasuries-doomsday-is-four-years-away-for-vanguard.html
Meanwhile the politicians are on vacation good thing for them
Spain clashes video: Violence erupts as million-plus protest in 80 cities
http://www.youtube.com/watch?v=jfPj0_kkWYU
preview of what is coming to US markets next year
Or next week. Or tomorrow.
No doubt, what makes anyone believe we're insulated from reality for many more months? Im not so convinced at all.
You think we are that far behind? You are an optimist.
Whitney currently T - 1 and ..... Boom!
Thank God there's a bunch of salt water between them and us in order to decouple!!
All roads no longer lead to Rome. They lead to the City of Insolvency.
I've already laid claim to a spot in the local garbage dump for foraging.
How is this possible? Banning short selling should have gotten rid of the speculators right?
RobotTrader told me the "lows were in" on the IBEX!!!!!!!!!!!!!!!!!!!!!
WTF is going on here??? I thought we had reputable traders posting here??????
P'raps the chart is upside down?
But...Rumpy said everything was fixed!
The Rumpster, er Rompster, is busy laying some pipe.
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/11/19/1258670271003/Herman-Van-Rompuy-and-Lad-001.jpg
George Washington’s current column produced fantastic comments and Escapeclaws’ link to L. Randall Wray is too pertinent not to be missed. Writes Wray…
“In times like these, I always recall Robert Sherrill’s 1990 statement about the S&L crisis that ‘thievery is what unregulated capitalism is all about.’
“After 1990 we removed what was left of financial regulations following the flurry of deregulation of the early 1980s that had freed the thrifts so that they could self-destruct. And we are shocked, SHOCKED! that thieves took over the financial system.
“Nay, they took over the whole economy and the political system lock, stock, and barrel. They didn’t just blow up finance, they oversaw the swiftest transfer of wealth to the very top the world has ever seen. They screwed workers out of their jobs, they screwed homeowners out of their houses, they screwed retirees out of their pensions, and they screwed municipalities out of their revenues and assets.” – L. Randall Wray, Professor of Economics at the University of Missouri-Kansas City and Senior Scholar at the Levy Economics Institute of Bard College, NY., WHY WE’RE SCREWED
http://www.economonitor.com/lrwray/2012/07/23/why-were-screwed/?utm_sour...
Wrote EC: “One of the comments on this article said, ‘For you youngsters out there, I've worked on Wall Street the last 45 years and I've seen it all.’ THIS IS AN EXCELLENT ARTICLE!"
That article lost me with the OWS crap if that group wasn't just another Marxist front group they would have occupied the white house. Speaking of the Vampire Squid however...
In Washington, Blankfein Backs Dodd-Frank
http://dealbook.nytimes.com/2012/07/18/in-washington-blankfein-backs-dodd-frank/?scp=1&sq=blankfein&st=Search
JPMorgan Employees Join Goldman Sachs Among Top Obama Donors
http://www.bloomberg.com/news/2012-03-20/jpmorgan-employees-join-goldman-sachs-among-top-obama-donors.html
Wall Street still giving to Obama
http://www.cbsnews.com/8301-503544_162-57465854-503544/wall-street-still-giving-to-obama/
Yours is a textbook example of trying to besmirch an excellent article by picking an extremely isolated, unrelated remark and attempting to categorize the entire article with your tiny reference. The whole world knows how Occupy Wall Street was used by many leftist groups to push their own agendas (just as they infiltrated and used the Girl Scouts); but in retrospect it has brought focus on a major truth, primarily, that the media’s obsession with the welfare state, public unions, and Marxist causes pollutes all news stories, including the Tea Party and even the Ron Paul campaign.
Example:
The San Francisco Chronicle’s coverage of Obama’s fundraiser visit to Oakland yesterday features a very large, above the fold color photograph and a large color photograph inside with accompanying messages on the small protest on the sidewalk for medical marijuana. So when the handful of protesters returned home from their outing, they could hardly believe the unbelievable success they achieved with a couple of signs and a big city newspaper.
This is what happened to the OWS story.
And, btw, Wray was talking about something bigger than the OWS movement. Here is what he said:
“I see two scenarios playing out. In the first, we allow Wall Street to carry on its merry way, as the foreclosure crisis continues and Wall Street steals all homes, packaging them into bundles to be sold for pennies on the dollar to hedge funds. All wealth will be redistributed to the top 1% who will become modern day feudal lords with the other 99% living at their pleasure on huge feudal estates.
“You can imagine for yourselves just what you’re going to have to do to pleasure the lords.
“This will take years, maybe even a decade or more, but it is the long march Wall Street has formulated for us. To be sure, ‘formulated’ should not be misinterpreted as intention. No one sat down and planned the creation of Western European feudalism when Rome collapsed. To be sure, the modern day feudal lords on Wall Street certainly conspire—to rig LIBOR and muni bond markets, for example—and each one individually wants to take as much as possible from customers and creditors and stockholders. But they are not planning and conspiring for the restoration of feudalism. Still, that is the default scenario—the outcome that will emerge in the absence of action.
“In the second, the 99% occupy, shut down, and obliterate Wall Street. Honestly, I have no idea how that can happen. I am waiting for suggestions.”
I'm usually in agreement with your basic points, LMAOLORI, but I differ with you on this one. Wray's is a great article.
We will all be OWS shortly. The reason more are not now is because they are still too fat.
http://theghoststaroriginal.com/lookbook/IMG_8005.JPG get ready bitchez. There is bloodbath coming.
The guy standing in the middle waving the peace sign is a beast.
My only investment this week is in my food storage.
Likewise. After this years record drought, I decided on no PMs this week, stock up on food instead. And I hope some Oil tomorrow.
hahaha the politicians over there are just like the politicians here they can't worry about it right now it's vacation time
Will Spain Burn While European Politicians Go On Vacation?http://www.forbes.com/sites/investor/2012/07/24/will-spain-burn-while-european-politicians-go-on-vacation/
WTF CHART OF THE DAY
The average Italian has a net worth three times as much as you. I thought their country was a shambles. The average freaking Spaniard has a higher net worth than you. more
http://www.theburningplatform.com/?p=37624
where is Jon Corzine, to bet all the customers money , when you need him ???
Hamptons...
Someone should ask obama where he is...
Biased Media Ignores Shady Obama-Jon Corzine Connection
http://www.usnews.com/opinion/blogs/peter-roff/2012/04/26/biased-media-ignores-shady-obama-jon-corzine-connection
corzine is beloved by his fellow men. he sweeps the table clean, and that much left for fdic to have to print and cover.
actually - corzine is hated by jamie and lloyd and company. he beat them to the game. he trumped them all. just like mozilla and o'neal.
Don't Panic ! :)
The German Chan and FinMin are off on a three week vacations, and not telling anyone where they will be staying.
Only in Euroland :)
Why do I get the feeling that TD is enjoying this?
I know I am a bit. Is that wrong of me??
No, it shows you are human.
Carnage boner.
Cue RoboTard to declare new and true IBEX bottom in 3, 2, 1... Forgot, bonds is his new theme. "My name is Bond, low, low yielding Bonds."
My name is Bond....Negative Rate Bond.
Today: dollars, gold, ammo.
robo said 2 weeks ago they were buying shares of TGT in "droves" and chuckie the consumer was buy buy buyin.. oops. Tell UPS that. i think Ben still has robo's back.
RoboTarder is presently in the dumpster behind McDonalds trying to rustle up an Egg McMuffin.
are you sure he's not applying another coat of wax to Cramer's dome?
robo is huge. he's currently working on visa's to bring more gandhis into the country to work for him cheap. until he figures out in the end, they breed like rabbits, work the system, one of them works, gets moms and dad and cousins into the country, and then take his job for 1/2 the salary.
Meanwhile in Iceland....
YESTERDAY, SPAIN :
Spanish Market Authorities to Spanish PM : "Hey, hey, is OK....we jus' introduced a short selling ban on dose eeeeeebil speculators - we going to stop the market falling"
TODAY, SPAIN :
Spanish PM : "Que??????!!"
Longing canned Whip-ass.
Longing canned Whip-ass.
Countries around the world are taking on more debt without any fruitful attempts to curb their expenditures. This has resulted in a much more fragile and artificially held up financial system which is on a much shaky ground than it was in 2008. In 2008 companies failed due to excessive leverage and debt and now countries are likely to default because they took on the same bad debt on themselves. The borrowing costs or bond yields for these countries are again at record highs for the year due to their deteriorating financial condition.
A single currency for an economy as strong as Germany on one hand and relatively weaker economies like Greece or Ireland on the other is not sustainable in the long run. The idea of the stronger countries in the Euro zone to keep on bailing out the weaker ones repeatedly will be a difficult one to sell to the citizens of the economically stronger countries. Their is no practical way to save the Euro, the only thing that the politicians can do is to lavishly spend tax payers money towards bailouts which creates a much bigger crises a few months down the line but does not solve anything.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
It kind of makes you wonder what the further economic deterioration Bernanke is looking for would actually look like. It was pretty obvious we had gone overthe cliff before the last Fed meeting to me. Ben tried to pretend QE to infinity wasn't on the menu. Open up big boy. You are getting served.
He can only issue debt or try to backstop banks, and congress hasn't agreed to take it on any additional debt at this point. He needs them to help him screw us even further!!!
He used his sledgehammer (interest rates) until it broke and now all he has left in the ol' tood box is one of those little Bob the Builder plastic toy hammers to work with.
End of the world can wait. I start 6 weeks of paid holiday on Friday. We might be broke, but we live well ( bitchez )
Picking up some Silver today, the price made it into the magical $26 range. Europe is like a patient that just won't die when they should already be dead! Its like we unplugged from the machines and they somehow keep on breathing, amazing. Just one more major event ought to do it though, Spain and Italy should fill that requirement sooner than later. If not, we always have France which will be the next in line for a pounding from the markets. Should continue as long as there are Euro countries left to pound, eventually even Germany will feel the wrath of the bonf vigilantes :)
Regardless of what happens the union will remain together even if they kick Greece out of the monetary union. Way too much political capital is invested in the Euro for it to disappear or break apart - just not going to happen. Even Germany realizes it would cost more to break up then it will to stay together.
I figure the germans will bail on the € expirement. But then again I aint nobody.
10yr GOING TO BREAK 1.40!!!!
No doubt it's going negative....so...for 10 years you pay to have them hold your money....
PLEASE, PLEASE, save the "deer in the headlights" till there is a real drop in the markests this time.........
Sell in July, and run and cry.
I don't know how it survives. The EU has no democratic legitimacy, and is despised by about 70% of 'Europeans' (I use sarc quotes because a European doesn't actually exist). Once it is seen as visiting economic pain and hardship on ordinary people, which it has for years but now they realize it, there will be immense pressure to unwind the silly socialist experiment and go back to a simple trading bloc, which is how it ought to have been all along.
Sorry Bichez another Algo driven hopium fueled low volume melt-up to the neutral position..... in front of fruit earnings and probably a Greece exceeded expectations rumor at 3pm....
Crash, just fucking crash!
Bernanke, fuck you.
Look at the numbers and tell me how Spain, Itally,Greece, Portugal or France are going to make it.
http://confoundedinterest.wordpress.com/2012/07/24/sea-of-red-ink-europe...
you can run; but you can't hide...