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European Black Swan Sighted

Tyler Durden's picture





 

While everyone's attention was focused intently on peripheral European bond spreads last week and the incessant call for ECB intervention, a dramatic (and contagiously panic-worthy) move occurred in the European Investment Bank (EIB) bonds.

For those unfamiliar, the EIB is the EU's IMF-equivalent and is the largest international non-sovereign lender and borrower. Technically, it is defined as "the European Union's long-term lending institution established in 1958 under the Treaty of Rome. It supports the EU’s priority objectives, especially European integration and the development of economically weak regions."

5Y Euro-denominated AAA-rated EIB bond spreads crashed wider, blowing past the 2009 record highs and clearly indicating that European capital flight is in full swing.

The IMF-like entity, supported by a small capital base of deposits backed by promises of huge capital injections by sovereign nations, has massive exposure across Europe (and elsewhere). EUR382.4bn of senior unsecured debt and (according to Bloomberg - chart below), EUR2.5bn of deposits (admittedly backed by supposed promises to make whole loan commitments) does not make for a sound AAA-rated firm in our humble opinion.

Clearly investors think the same this week and are starting to worry about the same self-referencing, self-supporting house-of-cards that caused the EFSF to be written off as unworkable.

It is clear that the contagion is spreading as Bund yields start to underperform (no capital flight to safety within the Euro-zone) and furthermore, as the chart above shows, the stress on the EFSF has now spread to the EIB's publicly tradable debt.

It is no wonder given the size of their loan portfolio and who it is being lent to:

Spain, Italy, France, Portugal, and Greece all in the Top 10 with simply enormous outstanding debts relative to the capital in-house to cover potential losses (let alone any MtM or economic risk budgeting).

The debts outstanding, much as with any major investment bank, are denominated in multiple currencies and the yield curves below show the differentiation of those curves by major currency.

The next few months/quarters/years has huge supply from the EIB as it rolls its major debt load and while it maintains its AAA-rating - and therefore appears very attractive from a carry-per-regulatory-risk-capital perspective, we suspect the professionals are already unwinding their exposure very rapidly.

The next few months have over EUR20bn in maturities (and EUR6bn in interest payments) and so we will get plenty of opportunities to judge how new issue premiums will adjust secondary markets.

The following chart (of the USD-denominated EIB debt yields) should be enough to prove that both systemically (yield curve shift higher) and idiosyncratically (potentially speculative-driven negative bets as bear flattening is occurring) the AAA-rated EIB is facing some significant stress and should it need to make capital calls (to maintain its AAA-rating), is Spain, Italy, France, and Greece going to step up to their promises...

There are no CDS trading on this reference entity (yet) but given the still-relatively-tight nature of the bond spreads, we suspect specialness is not an issue and borrow is possible. The 2s5s bear-flattener looks the lowest vol trade but at such low costs of carry, outright is perhaps just as attractive on a reduced size trade. The compression in the EFSF-EIB trade also looks attractive.

Charts: Bloomberg

 


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Sun, 11/20/2011 - 17:11 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Babies seem to be a theme to your posts thus far... interesting. Summers is a perfectly spherical shitball.

Sun, 11/20/2011 - 18:28 | Link to Comment Use of Weapons
Use of Weapons's picture

He's a (faux) E-trade baby.

 

(Aww.. Bob, don't be bitter - I wasn't at that Guy Faux moment, I'm merely making fun. No need to go all junktastic and splurg on all my posts. But it does denote your (lack of) style)

Sun, 11/20/2011 - 16:41 | Link to Comment High Plains Drifter
High Plains Drifter's picture

black swan?  how about black turkey.  that bird is fat and ready to be fried.......

Sun, 11/20/2011 - 16:44 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Holy Cow!

Tyler, you are scaring the living shit out of me with these frightening EIB bond spreads.

Sun, 11/20/2011 - 16:53 | Link to Comment bob_dabolina
bob_dabolina's picture

Scared as in watching Obama on TV or scared as in someone jumping out and startling you?

For the record, both have a similar effect on me.

Sun, 11/20/2011 - 16:42 | Link to Comment prains
prains's picture

The gerbils are going to have to peddle like hell to climb that hill

Sun, 11/20/2011 - 16:47 | Link to Comment Franken_Stein
Franken_Stein's picture

What do the Rothschilds, the Rockefellers, Adam Weishaupt (founder of the Illuminati and architect of the 200+ year Grand Plan to bring about the New World Order under a One-World government, Paul Moritz Warburg (co-founder of the Federal Reserve), Marcus Goldmann (founder of Goldman Sachs) and the Lehmann brothers have in common ?

 

They all originate in Germany (more or less).

 

This is crazy, this is weird, and I don't know what to say about that other than that this cannot be a coincidence.

Sun, 11/20/2011 - 16:51 | Link to Comment bob_dabolina
bob_dabolina's picture

Germans have a flair for trying to take over the world. It's an ambitious group of people

Sun, 11/20/2011 - 17:01 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yep, and a fundamental tool in their plan is the concept and faith in paper.  Something that their children see erroding faster than ever, never mind the whole 7 billion idiots eating oil, coal and natural gas faster than ever to maintain a high standard of living for a relative few.  The only short term outcome I can see is war on many fronts.

Sun, 11/20/2011 - 17:07 | Link to Comment bob_dabolina
bob_dabolina's picture

War is the only constant in history interupted by only brief periods of peace.

War is intertwined in the fabric of the human condition. It's as natural to us as breathing air.

Sun, 11/20/2011 - 17:19 | Link to Comment falak pema
falak pema's picture

in terms of war we are fast reaching the age of diminishing returns. Its no longer the means to an end in the nuclear age as defined by Clausewitz. Game over. Its now commercial war and civil society that fights it out, not military societies in developed world; unless we all take a great leap back...

Sun, 11/20/2011 - 17:45 | Link to Comment bob_dabolina
bob_dabolina's picture

Oh...I thought we've been at war with Afghanistan for the last 10 years (twice as long as WWII) 

That must have been something else. What do we call it now? Peacekeeping mission or something?

Israel says time has come to act on Iran (from today)

http://news.yahoo.com/time-come-act-iran-israel-says-184620637.html

Sun, 11/20/2011 - 17:55 | Link to Comment falak pema
falak pema's picture

its called the game of selling weapons to all and sundry in non strategic third world, very lucrative, its also called the game of recycling Afghan dope, that has exploded, very lucrative. Its called heating up the Mid east and Chindia region, so that arms sales sky rocket. Very lucrative. 

Its all business, and there is admittedly collateral damage including US forces, of small amounts. Also there are those rare earths further down the road... But this is not war, in classical terms. If the shit hits the fans and the adversary gets tough, I mean tough; not like the talibans today, the US runs pronto; as fighting local wars is not WORTH It IN USD terms. You don't fight nuclear wars for shit holes (from the US perspective) like PAk/AFGH.

Capische?

You do for Mid East OIL; thats vital, you do for keeping China in line, as well. Period. But even there the lines will move as the law of diminishing returns will make that non profitable.  

Sun, 11/20/2011 - 17:28 | Link to Comment LawsofPhysics
LawsofPhysics's picture

As history has shown over and over.  War can take many forms, whether you leap forward or backward is irrelevant.  People die, period.

Sun, 11/20/2011 - 17:29 | Link to Comment magpie
magpie's picture

Let me introduce you to our new friend "Weltbürgerkrieg".

Sun, 11/20/2011 - 17:33 | Link to Comment Hulk
Hulk's picture

Megadeaths of the 20th century

http://necrometrics.com/20c5m.htm

Sun, 11/20/2011 - 17:11 | Link to Comment Mark123
Mark123's picture

None are real Germans (i.e. people that represent the interests of the German people).

 

They are just part of the age old banking cartel that chose to operate from German soil. 

Sun, 11/20/2011 - 20:06 | Link to Comment DosZap
DosZap's picture

Franken_Stein .

This GRAND PLAN is a LOT older than 200yrs, try about 3000+.

 

Sun, 11/20/2011 - 22:31 | Link to Comment WonderDawg
WonderDawg's picture

3000+ years? Fuck, I'm patient but jeebus, that's a long time to wait. Might be time for a new plan.

Sun, 11/20/2011 - 20:34 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

"Marcus Goldmann (founder of Goldman Sachs) "

Why is it that these Israel types love to change their names all the time?

This little weasel "Andy Dean" is the blueprint-boy.

http://en.wikipedia.org/wiki/Andy_Dean_%28radio_host%29

His publicist told "Andrew Litinsky" that if he changed his last name to Dean that they could parade him around as a non-partisan neutral non-jewy radio man.

Basically a shill to deceive the listeners of the Fox scam stations.

It didn't work!

Sun, 11/20/2011 - 16:59 | Link to Comment FischerBlack
FischerBlack's picture

At some point, there will be serious money to be made in going long eurozone bonds. Have to be really lucky though to get the timing and CUSIPs right. Not even Jon Corzine was able to get the timing right, and he's about as connected as they come. I guess I'll pass for now, but I'm starting to get greedy.

Sun, 11/20/2011 - 17:04 | Link to Comment Franken_Stein
Franken_Stein's picture

Already in 1798 this NWO plan became known and Mr. Weishaupt had to flee his homeland, the then Kingdom of Bavaria, where he was charged with treason.

Born Jewish, converted to Catholicism, then disappointed by both, he became what we now would call a Satanist.

According to Mr. Weishaupt, there is no God.

God is dead.

 

Man would take the place of God.

And Lucifer, the light bearer, the fallen angel, would take the place of Jesus, to be worshipped, symbolizing all vices that man can possibly indulge in.

 

http://www.conspiracyarchive.com/PROOFS_OF_A_CONSPIRACY_John_Robison.pdf

 

Sun, 11/20/2011 - 17:26 | Link to Comment Yellowhoard
Yellowhoard's picture

Have you heard about the half Chinese half German restaurant?

You eat and eat and eat, a half hour later you want to take over the world.

Sun, 11/20/2011 - 17:30 | Link to Comment magpie
magpie's picture

Remember to order No.61, the power hungry sandwich.

Sun, 11/20/2011 - 17:40 | Link to Comment falak pema
falak pema's picture

well what do you expect when you live in yankee land and the world already belongs to you. The half and half are just copying the sons of Uncle Sam, who are already there. They eat and eat junk as well.

Sun, 11/20/2011 - 18:14 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Never heard that, but it reminds of this:

 

What's the difference between a Chinese restaurant and an Italian restaurant?

 

In a Chinese restaurant, an hour later you are hungry again. In an Italian restaurant, an hour later, you are still eating.

Sun, 11/20/2011 - 17:35 | Link to Comment falak pema
falak pema's picture

why do you relate God to peace on earth? There have been more wars made in the name of God than anything else. You have to change your mental software. God is in its dogmatic religious form the fig leaf of the devil. So you are chasing your own tail when you chase the devil of God's shadow on earth, especially the Abrahamic one who is totally a patriarchal symbol excluding half of humanity in the developing world. Wake up, son of lost legion of Abraham and the bible in Teutoburg forrest.

Sun, 11/20/2011 - 20:26 | Link to Comment DosZap
DosZap's picture

falak pema,

why do you relate God to peace on earth?

God does not cause wars,he would prefer peace on earth.

HE knows that's impossible, and the Xmas adage of Peace on earth and goodwill towards men(is not complete,the secularists do a cop out),finished it say's with whom HE is well pleased.

God gave man freewill, and as sinners you see what its brought us.

He's The GOD of ALL the world, to as many as will accept HIM.

Yes, the Abrahamic one.HE knows mens hearts, not their ethnicities.

He is a JUST GOD, WE are the cause of ALL our problems. Don't blame GOD for mans sin, and stupidity, greed, avaraice and lechery.

 

Sun, 11/20/2011 - 21:25 | Link to Comment FeralSerf
FeralSerf's picture

<<God does not cause wars,he would prefer peace on earth.>>

Since God is omnipotent, if you are correct then there is peace on earth because God prefers it.

<<God gave man freewill, and as sinners you see what its brought us.>>

I take it you do not believe in cause and effect.

"There is no mind absolute or free will, but the mind is determined for willing this or that by a cause which is determined in its turn by another cause, and this one again by another, and so on to infinity." -- Benedictus de Spinoza, 1673

If God didn't want sinners on His Earth, he wouldn't have put them there.   One could conclude that God likes sinners.  God created man in His image.  God must have been a sinner as well.

 

"I do not find in our particular superstition of Christianity one redeeming feature" -- Thomas Jefferson

"The most preposterous notion that H. sapiens has ever dreamed up is that the Lord God of Creation, Shaper and Ruler of all the Universes, wants the saccharine adoration of His creatures, can be swayed by their prayers, and becomes petulant if He does not receive this flattery. Yet this absurd fantasy, without a shred of evidence to bolster it, pays all the expenses of the oldest, largest, and least productive industry in all history." -- Robert Heinlein

 

Sun, 11/20/2011 - 17:05 | Link to Comment Atomizer
Atomizer's picture

 

 

Each day your life clicks as a precision timepiece engaging to the next meshing gear.

 

Some choose to sit back and collect fiat confetti, while others question central planners future direction. Let's evaluate a time capsule. You decide on the conspiracy theory spin.

 

President Obama at Millennium Development Goals Conference -2010 

Millenium Development Goals for 2015

Sun, 11/20/2011 - 17:06 | Link to Comment Silverballs
Silverballs's picture

Just got vultures picnic by palast... I never endorse anything but on these message boards i just assumed other people might interested in book dealing with banking corruption

Sun, 11/20/2011 - 17:07 | Link to Comment hungarianboy
hungarianboy's picture

Bullish for stocks.

Check the past few decades. compare the bonds and stocks. they all went up.

Sun, 11/20/2011 - 17:14 | Link to Comment AndrewCostello
AndrewCostello's picture

All these stories are distracting from the underlying cause of all our economic problems - people and governments spending money they don't have.

 

Read:

http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref

Mon, 11/21/2011 - 07:45 | Link to Comment youngman
youngman's picture

Exactly....why are countries taking out loans....why does anyone take out a loan....because they can enjoy NOW what has to paid for later....this has to change...a city does not need to sell bonds ..just save revenues for awhile and then pay cash...same with a government...or a household....this mindset has to change for our future to become stable again....I think the households are changing...but the politicians are not..

Sun, 11/20/2011 - 17:21 | Link to Comment swanpoint
swanpoint's picture

bullish, btfd

Sun, 11/20/2011 - 17:45 | Link to Comment interbanker
interbanker's picture

Does any body here know what are CDS spread for Mexico ?

Sun, 11/20/2011 - 17:49 | Link to Comment GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

What a beautiful bird.

Sun, 11/20/2011 - 17:54 | Link to Comment interbanker
interbanker's picture

Does anybody know what the CDE spreads are for Mexico ?

Sun, 11/20/2011 - 18:11 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Buy opportunity, right?

Sun, 11/20/2011 - 18:16 | Link to Comment Franken_Stein
Franken_Stein's picture

There was only one large stumbling block in the plan for the One-World government.

And that was the deeply religious United States.

So a plan had to be hatched out, how, by means of subversion, the U.S. could somehow step by step be converted and tranformed from a nation under God to an atheist nation.

 

And look how successful they were.

 

First they introduced a central bank, which is unconstitutional, after 2 failed attempts, in 1913, after artificially having caused a crisis (Knickerbocker trust fund collapse in N.Y.C. 1907).

 

Then they created Rock Music.

Rock music, which came to the U.S. as a cultural shock, and the accompanying culture of sex, drugs & rock'n' roll was invented at the Tavistock Institute of Human Relations in London, a mass psychology research center run by the MI6, where Siegmund Freud was employed.

There the strategy of "psychological shock with subsequent societal change" was developed.

 

The break up of the family was their next goal.

Riling up sons and daughters against their parents, all the while making them think that it was the children's own informed choice.

Consumerism, all these subcultures, esoterics, Bhagwan, Rastafarianism, Satanism, Metal, Egocentrism, making money become the new God, materialism.

just look at all the laws they created since the 1970s to separate children from their parents, all the family courts, all the rules and guidelines when and how long you can see your own child, all the psychologists and family therapists they put in between you and your own children, all the legal battles after divorce.

Those things didn't exist before.

Put in place by politicians and lawmakers financed by the NWO adherents.

 

Making the state become the new parent to look up to.

Feminism, which was funded by the Rockefeller Foundation, to even put males in direct competition with women.

 

This is all part of their plan, all financed by them.

Deprogramming people of old thinking and behavioral patterns and reprogramming them to the new individualist consumerist, remote-controlled sheeple that knows no morals, has no inner compass, no affiliation to his/her own kind and becomes a perfect 100% slave and serf of the NWO.

 

Just a question:

Isn't atheism spreading in the U.S. ?

Isn't anal sex and other lewd acts spreading in the U.S. ?

What about drug use ?

 

Those things were UNTHINKABLE in the U.S. 50 years ago !

Sun, 11/20/2011 - 18:16 | Link to Comment bob_dabolina
bob_dabolina's picture

So basically your theory is that anal sex is a government conspiracy?

Sun, 11/20/2011 - 18:30 | Link to Comment Franken_Stein
Franken_Stein's picture

Nope.

 

But the general societal acceptance of it, it being the new normal.

The promotion of sex everywhere, the sensuory overwhelming with naked skin from all sides (Alex Jones calls it full-spectrum assault on all 5 senses)

 

They know that you store all these images inside your hippocampus, a part of the brainfor longterm chronological memory and that these images will influence your decision making and your inner belief structure, either consciously or sub-consciously.

They tested this all out in a clinical environment in psychological experiments, over and over again.

Hint: Milgram experiments, split brain experiments, all the secret projects like MK-Ultra (artificial creation of a split personality, a Manchurian candidate)

 

Just read the NWO handbook.

It's called: "Changing images of man".

It's a scientific paper.

 

You'll be surprised what you find in there.

Sun, 11/20/2011 - 19:55 | Link to Comment Calmyourself
Calmyourself's picture

Much of your suspicions and opinions will start being confirmed this next week, Google PATCON, the story is breaking out..

Mon, 11/21/2011 - 07:47 | Link to Comment youngman
youngman's picture

The Government has been screwing me in the "anal" for a long time..so the answer is yes

Sun, 11/20/2011 - 19:07 | Link to Comment Hulk
Hulk's picture

Aaron Russo interview you may find interesting

http://www.youtube.com/watch?v=lhJCTFZf03A

Sun, 11/20/2011 - 19:52 | Link to Comment Franken_Stein
Franken_Stein's picture

Yes, thank you.

I know about Aaron Russo's interviews he gave in 2006, shortly before his death.

 

Aaron was a wonderful man, a fine man, a great patriot, an iconic filmmaker (trading places) and a relentless fighter for civil liberties.

Even from the few interviews of him you could immediately conclude him being a very sympathetic and cordial person.

This is a guy you'd want to drink a beer with in a pub.

 

May he rest in peace.

Sun, 11/20/2011 - 23:13 | Link to Comment Cathartes Aura
Cathartes Aura's picture

that was a lot of words without once mentioning "PORN" - I know it's a sacred subject for most here, but seriously, you could make your post's point most succinctly by just admitting that pornography - one of the main uses of the internet for most amrkns, apparently - has undermined and debased the global community far more than any other "meme" - and apart from "central banks" can be attributed to all the other nasties you name in your post.

and, once again, for the record - "feminists" have been advocating human rights for females equal to those given males since the 18th century, at least.  this story that the "Rockefellers funded feminism" to undermine male privilege is shallow, at best.

Sun, 11/20/2011 - 18:16 | Link to Comment PulauHantu29
PulauHantu29's picture

""Gold's spectacular decade-long run -- abetted recently by Europe's sovereign-debt crisis, the U.S. budget deficit and fears of a double-dip recession -- has tapped a new vein of investors in their 20s and 30s.

Gold's popularity among young investors speaks to the metal's role as a storer of wealth, and it says a great deal about a generation that has seen asset bubbles burst and governments fail to clear a path to prosperity.""

MSN MOney Central:

http://money.msn.com/investing/gold-appeals-to-a-younger-crowd-marketwat...

Even my 22 year old secretary devotes a tenth of her salary to the Barbaric metal each month!

Sun, 11/20/2011 - 18:20 | Link to Comment RamonLlull
RamonLlull's picture

Police now using under-cover agents provocateur at Occupy London demonstrations:

http://www.youtube.com/watch?feature=player_embedded&v=BJ5BM6NV1y8

Sun, 11/20/2011 - 18:53 | Link to Comment Use of Weapons
Use of Weapons's picture

Original core video is via Vice website - photos and other vids as well as that one there. Oh, and it was available the day after ;)

http://www.vice.com/en_uk/read/london-protests-students-november-2011

 

Nice analysis / mash up.

 

But nice to know someone else is watching the UK - I tend not to post non-USA gov. infiltration stuff here, as its not financial or local for most posters.

 

 

p.s.

 

"Now using"

 

Guess you missed that 7 year undercover op of Mark, eh? State has always used this tactic.

Sun, 11/20/2011 - 18:51 | Link to Comment PulauHantu29
PulauHantu29's picture

Hopefully the lawsuits at UC Davis start rolling in soon. Hard to believe the police chief there said," the police did nothing wrong...just following procedure."

The Chancellor should obviously step down.

 

Sun, 11/20/2011 - 18:49 | Link to Comment Franken_Stein
Franken_Stein's picture

Changing Images of Man

 

Stanford Research Institute (SRI), 1974

 

http://ce399.typepad.com/files/changing_images.pdf

Sun, 11/20/2011 - 18:55 | Link to Comment Franken_Stein
Franken_Stein's picture

You have to understand that you are all part of a large-scale societal experiment without knowing it.

But now you know it, and that is the first step towards breaking free from the matrix.

 

Yes - the matrix is real.

Sun, 11/20/2011 - 19:08 | Link to Comment Use of Weapons
Use of Weapons's picture

It is also why the entire "Liberal arts degrees = worthless" meme is so pernicious. If that were true, then advertising wouldn't be the defining moment of Capitalism in the 20C, nor would branding be worth multi-billion $. Psychology & sociology made that market.

Hint: they do make money, vast amounts of it, and they have a profound effect upon your life, they just generally take less limelight & profit than your brazen GS trader.

 

I also have to disagree that societal experimentation is all bad - there's plenty of good stuff out there, just as much as control. Oh, and you've not even touched on the really kinky stuff.

Mon, 11/21/2011 - 14:33 | Link to Comment Incubus
Incubus's picture

Reality is that we're more free than anyone would care for.  Freedom scares the shit out of us.  So what do we do?  Limit ourselves by clinging to superficial constructs of identity and social position. 

The "matrix" exists because we need it to.

 

We can change very easily if people would just realize the futility of forcing their subjectivities upon the rest of the world.  Just ask yourself the purpose of the things you do in this society.  Madness in large enough numbers is society.  Getting otherwise rational people to do stupid shit and waste their lives away for it is society.

 

 

Sun, 11/20/2011 - 21:59 | Link to Comment Stumpy
Stumpy's picture

Heavy stuff!

Sun, 11/20/2011 - 18:54 | Link to Comment Dr Paul Krugman
Dr Paul Krugman's picture

Europe should band together and nationalize their banking system.  The bond spread presents a unique opportunity.  Buy low, sell high, right?  Well, like the article mentioned, the bonds will need to be rolled soon.  So then these countries will buy low after recieving the face value on their investments.  This is a great buying opportunity, and Europe should act now to tie up their obligations.

Sun, 11/20/2011 - 21:37 | Link to Comment Astute Investor
Astute Investor's picture

Welcome to ZH!  You'll find a much smarter group here than your sychophants on the NYT website.

As an aside, I'm wondering why you waited over three weeks to make your first utterance?

Sun, 11/20/2011 - 23:35 | Link to Comment jomama
jomama's picture

we can only wish you took your own advice.  then again, we all know you don't.

Sun, 11/20/2011 - 18:55 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Dang!

EIB blow'd up REAL good!

Sun, 11/20/2011 - 18:59 | Link to Comment jbc77
jbc77's picture

One would assume the euro is going to fall sharply, spiking the dollar, in a normal world. Be interesting to see how long the masters of the universe can keep their fingers in the dam this time. Capital flights tend to be self re-enforcing. As ZH always says, "he who sells first, sells best....".

Sun, 11/20/2011 - 18:59 | Link to Comment Franken_Stein
Franken_Stein's picture

When a part of a system is trying to understand the whole system that it is part of,

when a grain of sand is starting to understand the desert,

then a new level of awareness is being reached,

a new level of enlightenment.

Sun, 11/20/2011 - 23:27 | Link to Comment Cathartes Aura
Cathartes Aura's picture

indeed, awakening to the reality of the infinite, and one's tiny place within That, is quite a humbling experience, hopefully.

I'm quite fond of the "we are all waves in a vast ocean, rising powerfully only to crash back into the tidal pull" notion of humanity as a visual. . .

Sun, 11/20/2011 - 19:02 | Link to Comment MFL8240
MFL8240's picture

Next up, ...USA.

Sun, 11/20/2011 - 19:07 | Link to Comment TheAkashicRecord
TheAkashicRecord's picture

Insight: Anger rises as MF Global clients see billions frozen

http://tiny.cc/y4tqh

When the top .1% get turned on by the rest of the 1% then shit will get interesting.  

Sun, 11/20/2011 - 19:13 | Link to Comment Franken_Stein
Franken_Stein's picture

I thought the same.

You can slice this up ad infinitum, recursively.

 

When the upper 0.01% get in trouble with the next lower 0.09 %, together forming the upper 0.1 %.

When the upper 0.001% get in trouble with the next lower 0.009 %, together forming the upper 0.01 %.

 

...

 

In the last step, Evelyn de Rothschild will be riled up against David Rockefeller.

 

Where is my popcorn ?

Sun, 11/20/2011 - 19:10 | Link to Comment Rockfish
Rockfish's picture

I don't see Iceland on that list.

Sun, 11/20/2011 - 19:17 | Link to Comment Use of Weapons
Use of Weapons's picture

Iceland isn't a member of the EU, ergo, it isn't included.

 

But, apparently, it lies between Slovakia and Cyprus, in terms of finances [according to Krugman].

Sun, 11/20/2011 - 19:36 | Link to Comment evolutionx
evolutionx's picture

GOLD ENTERING A VIRTUOUS CIRCLE

Fundamental and technical factors for gold are now in total harmony and gold is entering a virtuous circle that will drive the price up at its fastest pace since this bull market started in 1999.

>

http://www.mmnews.de/index.php/english-news/6396--gold-entering-a-virtuous-circle

Sun, 11/20/2011 - 20:27 | Link to Comment JimS
JimS's picture

This might be the time when everyone is on one side of the boat, and the boat capsizes.

Sun, 11/20/2011 - 21:07 | Link to Comment electricgorilla
electricgorilla's picture

Yikes! Reinforces holding PM's and in my opinion Muni Bonds and cold hard cash.

Sun, 11/20/2011 - 23:00 | Link to Comment WonderDawg
WonderDawg's picture

Muni bonds? Good luck with that. Check back in a year and let us know. The other stuff, absolutely.

Sun, 11/20/2011 - 21:16 | Link to Comment XRAYD
XRAYD's picture

BRUSSELS—As the euro zone's debt crisis threatens to draw in more victims and a plan agreed to expand the currency's bailout fund looks set to disappoint, the European Union's executive arm will this week float proposals for joint issues of bonds among the currency's 17 governments.

The proposal to end the crisis from the European Commission calls for the euro zone to use its combined strength in the bond markets to replace some or all of the fund-raising currently being done by national governments.

The proposals for common bond issues are unlikely to gain traction soon: Germany, the strongest economy in the common currency, remains resolutely opposed to the idea, fearing it would be stuck with the bill for other governments' spendthrift ways. But the commission's discussion document appears designed to trigger debate on one of the few ideas that economists think offers the prospect of ending the crisis.

http://online.wsj.com/article/SB1000142405297020371070457705036074837968...

 

CHARLIE BROWN IS LACING UP!

Sun, 11/20/2011 - 21:47 | Link to Comment quacker
quacker's picture

Just an excuse to have more bullshit stock rallies via rumors Germany plans to "soften its stance" on this joint issuance proposal.

Sun, 11/20/2011 - 21:38 | Link to Comment JPM Hater001
JPM Hater001's picture

Looks like we need a break.  Something to rally around...

GO RON PAUL!!!!!

Sun, 11/20/2011 - 22:19 | Link to Comment NoClueSneaker
NoClueSneaker's picture

k- will we ever discuss 16 Tr. of forfeited FRNs in da System?

Somehow I loose every clue.

Bernank served the banksters & corporated beggars with s wholle lotta fake money. Noone dares to speak about it ?

_____________________________

Trading the rest of my life for 5 days in the seventies ....

 

 

Sun, 11/20/2011 - 22:36 | Link to Comment TheAkashicRecord
TheAkashicRecord's picture

Legalized Corruption of Government Exposed by Abramoff http://tiny.cc/mewha

Mon, 11/21/2011 - 00:09 | Link to Comment icculus
icculus's picture

I take it this is bad if you are long the SnP? Should I maintaain my Short position on SPY?

Mon, 11/21/2011 - 00:23 | Link to Comment luckylogger
luckylogger's picture

I scrooled thru a few comments.... no boobs no read.

come on guys and girls long live boobs.

\if your a girl , flaut it , if your a guy... appreciate it.

but as far as this europe shit goes..................

the bottom will fall out but everybody who is short will get killed first.

Mon, 11/21/2011 - 01:14 | Link to Comment xcehn
xcehn's picture

China running terrified--proof enough that sometimes even your best spin SUCKS:

http://www.reuters.com/article/2011/11/21/us-china-usa-economy-idUSTRE7A...

Mon, 11/21/2011 - 02:24 | Link to Comment johnu78
johnu78's picture

It's one big Greek Tragedy!

 

-John

http://johnu78.blogspot.com/p/items-for-sale.html

Mon, 11/21/2011 - 04:11 | Link to Comment Temporalist
Temporalist's picture
Foreign Banks Double Dollar Deposits at Fed

"Foreign bank deposits at the Federal Reserve have more than doubled to $715 billion from $350 billion since the end of 2010 amid Europe’s debt turmoil, buttressing the dollar’s status as the world’s reserve currency. Forty-seven non-U.S. banks held balances of more than $1 billion at the New York Fed as of Sept. 30, up from 22 at the end of 2010, according to a survey of 80 financial institutions by ICAP Plc, the world’s largest inter-dealer broker."

http://www.bloomberg.com/news/2011-11-21/dollar-preeminence-grows-as-for...

 

 

Sales of Existing U.S. Homes Probably Declined in October for Second Month

"Sales of previously owned homes in the U.S. probably fell in October for a second month as falling property values failed to sway buyers, economists said before a report today.

Purchases decreased 2.2 percent last month to a 4.8 million annual rate, according to the median forecast of 65 economists surveyed by Bloomberg News.

Unemployment hovering around 9 percent, falling appraisals and strict lending rules will probably keep hurting demand even after homes lost 32 percent of their value from the 2006 peak and mortgage rates sank to record lows."

 

http://www.bloomberg.com/news/2011-11-21/sales-of-existing-u-s-homes-pro...

Mon, 11/21/2011 - 05:58 | Link to Comment Overflow-admin
Overflow-admin's picture

 

 

 

We are Anonymous
We are Legion
We do not forgive mainstream media for their patent disinformation and propagandist campaigns
We do not forget the effects of exhuberant irrationality on investment strategies and price discovery
Expect a market crash soon.

Mon, 11/21/2011 - 06:15 | Link to Comment vamoose1
vamoose1's picture

TRADE OF THE CENTURY   SILVER

    It  sits there looming, people look,  people think, and there it sits,  an atomic bomb awaiting a detonator.

 

    I refer here to the 33 million  ounces of silver sitting in the Comex Inventory. Ostensibly. Well what if someone just bought it,  just upped and bought it,  its about ten  billion  dollars, which  is admittedly  not nothing, ,  but a couple of good sized hedge funds could  readily manage it.

    Fourteen  months ago  this insouciant Canadian Eric Sprott,  did a physical  Silver issue, metal, and basically repriced the silver market  which  went from  18  to  50 in  direct  consequence.

 

   The genesis of this issue was the CFTC hearing in march  2010,  where Murphy,  into a deadened microphone,  told the world on the record, that JPM  is standing on the silver price, jeff Christian  shot his mouth in  response, and told the world look ,   we own  the silver price   we are fractional  reserve banking it at a rato  of   100 to  one. Thank you  for that, you witless idiot,  oh what a tangled web we weave.......distinctly unclever of you.

    5  months later PSLV  cleared,  it went out the window for 580  million in Physical  Silver, and silver went from  18  to  50. Consternation,  JPM has been  desperately raiding ever since,  and delivery failed. Its called failed delivery, it took  90  days to  round up the bars, and most of them POSTDATED  the issue,   meaning  for the un in itiated,  there was no  Physical  Silver at Comex,  it  was of course paper, as we were told. Silver tripled. bang.

    FAST FORWARD,    The Royal  Canadian  Mint has just tossed a spanner into  the mix, its unprecedented, they ghave just done a heavily oversubscribed physical  Gold issue, cutting out the Street,  they have no prospectus costs, they  have no  storage costs, THEY  ARE THE  STORAGE FACILITY, they are the Government of Canada, thats a triple AAA credit. It gets no better,  Furthermore look at the redemption  privilege, they are also the REFINER   in their own  basemant, and you  can  get  splits   down to  the bloody COIN  level. Compare that to  your paper silver in  SLV.   Think.

    What happens now? The Royal Canadian Mint Physical  Gold issue prices this morning,  its priced at 20,  but they  buy their gold  (thanks for the raid)  this morning,   it settles Nov  28. The issue is out the window,  ask  your broker, Americans can  only buy it in the aftermarket commencing Nov  29, think  there may  be some bids?

    Well,  its a horserace, obviously the Royal  Canadian Mint   are going to  do a silver.  They  refine it in the basement in C anadas capitol   city.  Sprott just filed a shelf prospectus for a billion  five Physical  Silver. Secretariat vs War Admiral. facing a 100 to  one naked short in Silver.

   Ok,  one or the other or both are coming for size Physical  Silver and soon. There are 33 million  ounces (purportadly) at Comex.  Oh  really. If someone buys that, for ten  billion,  its ciao Comex. its ciao  JP Morgan. The last issue tripled the silver price in  4 months, what will this one do.

    The answer is NMF  Whats that ?   Not meaningful,   NMF  Silver is in the hundreds.   How much above ground silver was there during the Hunt Corner in   1980  when  silver traded at   390 in  2011 dollars. 11  billion  ounces.   How much  do  we have now.....perhaps a billion, maybe,,....  down  92 percent with  5o thousand manufacturers that need it bad.

    Obviously the silver is gone. In  pure panic.

    THATS THE TRADE OF THE CENTURY.

   .  

Mon, 11/21/2011 - 06:55 | Link to Comment rayban
rayban's picture

As far as I know the EIB has direct ECB access. The spread might worsen, but imo there is no risk of more serious outcomes.

Mon, 11/21/2011 - 07:09 | Link to Comment moncon
moncon's picture

On the plus side for the EIB:

1/ It's mostly funding project finance, not sovereigns

2/ It's backed by all EU countries, not just eurozone

3/ Erm, that's it

Mon, 11/21/2011 - 07:19 | Link to Comment PMakoi
PMakoi's picture

Black Swan sighted also swimming with this Ugly Duckling;

http://www.reuters.com/article/2011/11/19/us-baer-idUSTRE7AI0GR20111119

Swiss Banks yeilding on traditional secrecy and giving up account data to the U.S. Govt.  That's not good for Swiss bank business, and on top of Euro crisis, I'm wondering again which fiat currency is really the best of the worst?

Mon, 11/21/2011 - 10:46 | Link to Comment GP237
GP237's picture

(R) AAA-rated EIB bond really AAA ? hmm  good luck

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