Europe Smashes All Market Records On Its Way To Total Insolvency

Tyler Durden's picture

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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BlandJoe24's picture

What happens to EUR and to USD if this causes Swiss to decouple CHF from EUR?

Hedgetard55's picture

Just a guess. Euro crashes, CHF skys to the moon, stocks implode.

DoChenRollingBearing's picture

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.

ZerOhead's picture


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!

DoChenRollingBearing's picture

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).

ZerOhead's picture

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.

The Monkey's picture

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.

Tippoo Sultan's picture

I would not commit a single rupee to the Spanish bourse.

FranSix's picture

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.


Optimusprime's picture

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.

dwayne elizando's picture

Don't forget xanax. Money of (street) kings!

BlandJoe24's picture

Why (specifically d/t CHF decoupling) would stocks implode?

El Oregonian's picture

You never remove the last piling holding up the house of turds, especially if your standing underneath it.

Cangaroo.TNT's picture

I'll take "Phrases that End with 'Bitchez'" for $200, Alex.

Conor's picture

"I'll take "Phrases that End with 'Bitchez'" for $200, Alex."

All-time classice comment!  I am dying laughing here...



Doublescythe's picture

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! :)


BandGap's picture

Potent Potables for $500 is more like it. I enjoy a cocktail with the festivities.

Lohn Jocke's picture

Merkel, Hollande, and Draghi walk into a bar... I forget the rest of the joke, but your mother's a whore.

fireangelmaverick's picture

So what u r saying is that I should go long Toner Ink?


agent default's picture

At this level can they?  The SNB will get hit very hard.

Piranhanoia's picture

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

Hedgetard55's picture

Mr. Market will call Ben's bluff now, he won't wait until after the election.
The boyz need their fix NOW.

12ToothAssassin's picture

Funny how junkies set the rules.


Inmates running the asylum.

Strider52's picture

One flew over the United States...

eclectic syncretist's picture

All that play money went bye-bye, but my pile of PM is unchanged. 

LMAOLORI's picture





Treasuries Doomsday Is Four Years Away For Vanguard


Meanwhile the politicians are on vacation good thing for them

Spain clashes video: Violence erupts as million-plus protest in 80 cities

john_connor's picture

preview of what is coming to US markets next year

SheepDog-One's picture

No doubt, what makes anyone believe we're insulated from reality for many more months? Im not so convinced at all.

PiratePawpaw's picture

You think we are that far behind? You are an optimist.

bigwavedave's picture

Whitney currently T - 1 and ..... Boom!

LongSoupLine's picture



Thank God there's a bunch of salt water between them and us in order to decouple!!

JR's picture

All roads no longer lead to Rome. They lead to the City of Insolvency.

Anusocracy's picture

I've already laid claim to a spot in the local garbage dump for foraging.

Dr. No's picture

How is this possible?  Banning short selling should have gotten rid of the speculators right?

zero19451945's picture

RobotTrader told me the "lows were in" on the IBEX!!!!!!!!!!!!!!!!!!!!!

WTF is going on here??? I thought we had reputable traders posting here??????

MillionDollarBoner_'s picture

P'raps the chart is upside down?

tu-ne-cede-malis's picture

But...Rumpy said everything was fixed!

JR's picture

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

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!"

LMAOLORI's picture



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


JPMorgan Employees Join Goldman Sachs Among Top Obama Donors


Wall Street still giving to Obama

JR's picture

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.


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.

roadhazard's picture

We will all be OWS shortly. The reason more are not now is because they are still too fat.

LongSoupLine's picture

The guy standing in the middle waving the peace sign is a beast.

yrad's picture

My only investment this week is in my food storage.

Gief Gold Plox's picture

Likewise. After this years record drought, I decided on no PMs this week, stock up on food instead. And I hope some Oil tomorrow.

LMAOLORI's picture


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?



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


Seasmoke's picture

where is Jon Corzine, to bet all the customers money , when you need him ???