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European Credit Markets Tanking Ahead Of Key Issuance Day
With Unicredit's stock down 14% and sovereign spreads continuing their decompression trend, European corporate and financial credit markets are tanking - dramatically underperforming European equity markets. Perhaps the credit market is much more acutely aware of the 'bumpy road' ahead in terms of supply and the heavy calendar of both sovereign and corporate issuance at a time when demand (away from Ponzi bonds) seems weak. Nowhere is that pressure more obvious than in French government debt spreads which have popped over 40% in the last week, ahead of tomorrow's huge issuance and redemptions.
Financials are dominating the selling pressure - with subordinated debt underperforming - but broadly credit is massively underperforming equities (dark blue line). Credit is unch to wider on the year now while equities are still 3-4% higher...
and French government bond markets are getting destroyed ahead of tomorrow's huge supply.
Charts: Bloomberg
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The downgrades cometh.
Romney will fix all this, just have to be patient.
Paul will change all this. Just has to win the election and hire a large personal bodyguard army.
Can't believe someone actually voted me up, hopefully out of laughter...
I voted you up for the same reason I vote up MDB. Humor. I like it.
perhaps girls? they seem to like him...
RP is not your good-looking-fella that catches the female vote, you know?
which reminds me that Tyler was recently complaining that our EU politicians are ugly
Even if Paul wins, and I am a staunch support of Ron Paul, The CON-gress and Sin-ate will cut his nuts off and stymie every move he makes. Short of massive changes wrought through Presidential Decrees (we saw how well that did for JFK), he will not be able to end the Fed or the IRS. A President just does not have that power, short of invoking PDD 51 (continuity of government). If he becomes the Commander in Chief, he WILL recall the military and reduce our overseas signature and end most hostilities. The CON-gress and the Sin-ate will make sure the economy completely collapses and blame it on his libertarian ideals.
He better hope his Federale Bodyguards folks are DEDICATED supporters, or they may allow a stray assassin in.
The Marines are up to the task! Send those Treasury Goons, AKA the Secret Service, abroad to round up counterfeit Benjis!
My wizard guy was working here before.
That's odd. I get my wizard here but not on my computer. Hm. Go figure.
Uncle Sam will buy that shit
He already has a large stake of Euroshit in his bag, courtesy of his lead buyer, Bernakio and the insane Fed Posse.
Look at the pedophile french eurocrat at 0:20 http://www.youtube.com/watch?v=4dPrYRcDDK8&feature=player_embedded
So, if you don`t follow the rules that I`ve just made up we french people fuck you hungarian people, fuck you hungarians!
January 2nd, 2012 Orbán rejects outside interference in Hungary, brushes off central bank independence as “European fashion” By Hungary Around the Clock“There is nobody in the world who has the right to tell the elected representatives of the Hungarian people which laws they can pass and which they can not,” Prime Minister Viktor Orbán declared Friday morning in his weekly Kossuth Rádió interview.
If Parliament passes a bill which challenges international treaties it has espoused, then the party to which it causes a grievance can challenge the bill but only after it has been passed, Orbán said in response to foreign criticisms.
“We are setting our own goals, we shall achieve our own goals and if somebody helps us with good advice, we shall thank him for that and if somebody wants to divert us from our path, we shall remove it politely”.
In connection with IMF talks, he said they are important but not crucial.
Orbán observed that Parliament approved 13 of the 15 observations added to the central bank bill by the EU and differences of opinion remain as regards the remaining two.
On these two points the Hungarian government will not back down and it will defend its position in legal proceedings if necessary.
Insistence on central bank independence is “a European fashion,” he told his audience.
Today's failed Hungarian bond auction, record CDS blowout and Belarus outlawing internet access to the outside world spooked markets. And they should
I say UniCredit 43% haircut made them crap
Yup. Covered that one in another thread. But don't forget, all large banks get a "pass" in this market unless they get a direct nuclear hit. Sovereign risk is another matter entirely
Do you really think the ECB will not massively intervene into the French issuance tomorrow?
Oh, I don't know Lloyd. The French are assholes.
Mmm... California, beautiful.
But how long can they keep 'massively intervening' really?
Until we're all billionaires I'd say.
I concur. Zimbabwean billionaires will have nothing on us. PRINT FTW!
Theyll let people keep thinking at any moment theyll print and QE and all this nonsense, but they wont.
by the way, you know how hard is to get rid of a National Bank?
here, the Zimbabwan Reserve Bank (and it's wonderful chairman) is
still alive and kicking http://www.rbz.co.zw/
How hard is it? Couple gallons of gas and a road flare.
Short of dismantling the entire government and starting from scratch? VERY difficult in other countries. Here, the Federal Reserve Act of 1913 could be repealed. So could the 16th Amendment, HOWEVER that requires an act of CON-gress. See that happening? I sure don't.
I keep watching the EURUSD .... I would be happy to see it drop below 1.29
Where's Corzine to step in with leveraged customer funds?
+1 Ha Ha Corzine passed the baton to JPM/GS. They are the new rehypothecator masters of the universe.
Who needs Corzine when you have Helicopter Ben.
Germany needs to invade France or something, it'll be bullish.
Turn those printers up to ludicrous speed Ben!
Aw DARN IT! And just when all was confirmed so rosy and all TBTF central banksters had +20% 2012 baked in....DANG these pesky troubles!
If this doesnt drop the EURUSD, what will?
ECB QE will boost the EUR, them yummy yields with no prospect of default will turn USTs into trash.
Everyone in unison mad dashing from 1 side of the boat to the other...one of these times it will flip and everyone will get douched.
Its a race to the bottom.... Expectation is that QE3 will be here shortly, so the Euro is holding up, look at both currencies relative to JPY.... Rumored QE3 is about equal to the ECB balance sheet expansion to date....
If true thats just bonkers, cost push inflation is going to be a bitch.
Long warehouses.
what exactly is the solution to these eurozone debt issues ?
World War 3....OR, alien invasion....both amusingly being seriously discussed by top economists.
With the pissing match going on in the Strait of Hormuz area, I am leaning more towards WW III.
In the movie 'Countdown to Looking Glass' WW3 started in the Straits of Hormuz.
That is because that little stretch of water is the passage by which 40% of the worlds oil flows. The Iranians and their allies would only need to strangle that passage for a week, maybe two. The impact would be felt worldwide literally overnight. When economies and entire infrastructures start to collapse due to the massively inflating price of oil, someone is going to get a short hair and trigger an exchange.
It bears repeating. Iranians invented chess. They are also feeling extremely isolated and now that France is pushing other Euro countries to expand the embargoes on the Iranian Central Bank, well, lets just say gasoline on a fire is never a good idea.
Yea thanks I realize what the Straits of Hormuz is.
With all due respect, I know you do. Others, I am not so sure of.
There are only two outcomes, both are bad: default or print. Given the magnitude of the problem, I don't think they can't print their way out, so I expect massive defaults coming.
And it will come as a total surprise 1 morning, just as everyone was lulled into slumber with happy rumors of free money dropping from the skies at any moment. BAM the bottom drops out of stocks, oil is at $150, money and credit seized totaly...far more likely than LaLa Land continuation.
"what exactly is the solution to these eurozone debt issues?"
either time (a decade or two of balancing budgets) or... or... help from the FED
since it's a private organisation it's not really the American People's money, eh?
Not enough time given downsizing of the economies. Look at Japan: powerhouse still deflating 20 years + later.
Hyperinflation....
Thats been the US strategy, just the banks are holding on to what has been printed to date, and its not circulating yet....
That is also not inclusive of the trillions of dollars in Treasuries held by foreign powers. If a sell of of Treasuries occurred, Ben would be running through printing presses like you change your undies, and ink would flow like water.
And just think, no one even believes in money printing anymore. Ben can ripfest print $100 trillion today and what good would that do? Absolutely nadda.
Not circulating yet, or ever.
Won't get hyperinflation. Lots are expecting that. Biflation is what's befuddling them all, and what we're getting. It can get worse with more money printing. Ask Japan
Just in - CNN feed goes bad when US soldier says it is dangerous to start a war:
http://www.youtube.com/watch?v=fMdrwhDoZjQ
the ordinary soldier has got to be sick and tired of fighting the NWO's wars... i believe he was in the process of suggesting that Israel should fight its own wars when he got cut off. hard to say since he was cut off. May have been suggesting that Israel had enough force in place to carry out the planned attack. two very different things.
the ordinary soldier has got to be sick and tired of fighting the NWO's wars...
Probably not since a sucker is born every second...
At the top of the list of requirements for war is high troop morale, presently at all time lows. More soldiers are dying from suicide than combat right now. 10 years straight of war, and the wars are only getting started. Soldiers are people, and can only take so much. Vietnam was declared over when the soldiers started fragging their officers.
Right. We'd have to go back to a draft and man whaat a scene that will be.
Oh and Vietnam, don't forget heroin ferried in from golden triangle with CIA money
I can't wait until I am a millionaire.
Too bad the average cost of a house by that point will be 100 trillion dollars.
The only thing that will stop the bankster ponzi games is a loss of confidence in fiat (i.e. repudiation). Since all salaries and contracts are fiat that would be a big mess! So they have us by the you-know-whats.
My guess is that they repeat the 1930's so they can transfer wealth one more time AND protect their precious fiat. It will be a controlled demolition.
Currency can lose value fast
The trick of the 1929 crash was to be holding the most gold. Seriously. Literally overnight millions of dollars were concentrated into the hands of the richest, most influential individuals on Wall Street. They bought entire companies for pennies on the dollar.
It will not be a controlled demolition, it will be a well coordinated plan to fleece the many to enrich and empower the few.
Much like Nathan Rothschild's manuever at the close of the Napoleonic Wars. Napoleon had been defeated at Waterloo, Rothschild got wind of it first, and had his agents selling English paper like mad while he had other agents snapping it up for literally nothing. When other large investors saw the sell off, they sold like mad as well trying to preserve some of their wealth thinking England had lost and Napoleon won. Rothschild snapped those up too. By the time actual news from Waterloo arrived telling of Napoleon's defeat, Rothschild literally owned nearly every scrap of English war debt. He owned England.
He who forgets his history is doomed to repeat it.
Just about the same time England began its relentless decline....
Of course this time with total control through central banks (and governments) it will be much easier for the likes of Nathan to transfer wealth. I suppose that is better than using wars.
Wars will always be used for 2 simple reasons: Population reduction and wealth accumulation. Post WWII America grew so fast because millions of able bodied men were removed from the workforce. The boom of industrial growth and economic growth grew out of a more concentrated store of manpower and wealth. The "baby boom", which leads us to where we are now was a secondary effect. The population is large, the resources limited and the stakes higher. War is the politician's answer.
It is like putting 15 rats in a cage designed to hold 10. There will be fighting and death until an equilibrium is found. When the population gets too big, fighting ensues. It is a cycle.
Don't worry, the Dow will go on a ripfest anyways because while the debt market will be imploding in Europe, our stellar unemployment numbers will be out showing a huge beat on expectations. This will fly in the face of statistical reality, but we do have to have risk-on in order to get that critical first week in Jan rally.
Someone hid the hopium bong they were smoking out of yesterday...
Germany is distracted with a controversial bank loan their President Herr Wulff received. I don't fully understand what happened or what he did, frankly don't care enough. When the heat got turned on too high, he made the mistake of calling Springer's Bild magazine and threatened to take actions if they didn't stop their smear. Springer is the biggest pro-Israel pro-Zionism pro-America mass media organ in Germany, possibly in Europe.
Petroplus closing 3 out of 5 refineries (as reported and discussed here on ZH) is a major development.
Something is stirring. I'm still voting for a war with Iran this year and before the election. Americans might not get to vote this year.