European Interbank Liquidity Deterioration Spikes Despite Surge In Italian Bonds

Tyler Durden's picture

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achmachat's picture

what do you mean? you can't negociate math?

Chris Jusset's picture

Relax, Merkel and Sarkozy are on top of this latest crisis ...

scatterbrains's picture

Would be nice if one of the contributors with access could post up a equity index overlay onto this chart to get a sense of the correlation.  When I tried it, the previous too bulges produced very sharp equity down turns leading to QE printing and  equity moon shots.

I'm thinking the top in SPY is in for the week in the 1st hour of trade this morning.

knight99's picture

Does anyone on ZH know the best way to short Italy/Spain 10 yr bonds? I would appreciate the help.



Sudden Debt's picture

Just short Italian banks.


Ghordius's picture

which could be nationalized - does it work then?

Sudden Debt's picture

Yep, I did it with Fortis in 2008 and when the bank went nearly to 1 euro I cashed out. I wasn't even a problem that it was forbidden to short them :)


Ghordius's picture

I have a prediction: If Italy can muddle through until January, the Italian Problem is postponed for at least six months.


Math? Sovereign Debt in Europe looked as bad or worse in the 70's. Where was math then? It's not about sovereign debt, it's about the big banks.

Why do you think the EuroDollar rates have been slashed so much? It's to make sure the big EU banks don't firesale USD denominated assets. Interbank loans in USD from US banks to EU banks have decreased to half (47%), for criminy...

i-dog's picture

*boot*!! ... another can kicked to summer! Playing politics is e-a-s-y!

Ancona's picture

Quick, turn on the Bat Signal!

Ghordius's picture

and who answers the call? Batman (the FED) or Robin (the ECB)?

Sudden Debt's picture

Not just yet... Batgirl (Merkel) has her period so nobody leaves the cave.

Ghordius's picture

SD, you look delicious, as always.

No BatGirl is the Bank of England. Wait and you'll see her soon in overdrive action.

It will be so sexy that you will take your silver stash to bed.

Sudden Debt's picture

I thought it was Albert who was England... :)

sabra1's picture

at her age, all you get are clots!

Sudden Debt's picture

This is 2008 ALL OVER AGAIN!

First we go crazy up for a few weeks and than BAM BITCH! BAM! DOWN YOU GO!


Dick Darlington's picture

Spain November Services PMI Falls to 36.8 from 41.8, Markit Says




DEEP recession coming in southern Europe so equities firmly in green.


writingsonthewall's picture

“The market is betting a lot on a positive outcome at the end of the week after the leaders’ summit and that’s supporting peripheral bonds,”


Totally dellusional - or addicted gamblers - which is it?


This week cannot end well - unless there is a full fiscal union announcement by Friday (and that means all EU members in - without voting on referendums) - then it's over.


The problem is I can't see all these EU leaders telling their countrymen that from now on they will have their budgets signed off by Berlin at the end of this week.


Referendums or riots is how this story will end itself.

Sudden Debt's picture

I'm pretty sure that even in Auschwitz there where guys who where standing in the showers who said: "I bet we'll get got water, this will be so much fun!"

and than the gold went to Switzerland....



Sudden Debt's picture
Looks like the Eurozone Manufacturing PMI isn't good at math either...


Josephine29's picture

Also the situation in Spain's actual economy as opposed to government forecasts is going from bad to worse.

"A shocker for Spain in those numbers

Spain’s reading on this number was 38.2 which is on a scale where a number below 50 indicates contraction. Whilst this is only one number and it is a sign of the times that PMI numbers are attracting attention but it is hard to avoid the thought that these are the sort of numbers seen in Greece. Remember also that her retail sales fell by 7% in October."

Eally Ucked's picture

No jobs, no benefits so where the money supposed to come from? Just wait for others to implement austerity packages in their services economies.

Rip van Wrinkle's picture

DEEP recession coming in southern Europe = Mass Civil Disorder

willien1derland's picture

Great point RVP - not to mention the required austerity which must be introduced to ensure Spain maintains the Debt/GDP target! To speak to the MATH component as denominator approaches zero the numerator must deteriorate with the identical if not greater rate of change to maintain the ratio - unfortunately if the denominator goes negative - the choice is 1) the dreaded divide by zero error OR 2) cook the books to overstate GDP...which one will be chosen?

Peter K's picture

To speak to the MATH component as denominator approaches zero the numerator must deteriorate with the identical if not greater rate of change to maintain the ratio - unfortunately if the denominator goes negative -...

You must be doing European math. :)

Tense INDIAN's picture

i see nifty going down again ....and so the other markets should also follow:::


the next fall may not be BIG though...timewise ...till this friday ..and then the next week we will rally and the ECB summit on 9th will be told as the reason for it....

rambler6421's picture

Mkt manipulation bitchez!

Shizzmoney's picture

"Math is stupid" - Timothy Geithner

asteroids's picture

Too much debt and credit and not enough dollars and an asteroid full of CDS's ready to crash on your head. Boom!