Tyler Durden's picture

Forget the conditionality, Draghi said it would be solved and we should believe - and believe everything in Europe did! Equity markets soared 3-5% (with EuroStoxx catching up to Gold YTD), credit spreads - which had outperformed in the last few days - rallied rather notably, European sovereign bond yields (2Y yield down 15-20bps) and spreads tumbled dramatically (10Y spreads down 30-50bps), Europe's VIX collapsed 4.5 vols to 23%, and EURUSD surged back to the highs of the day into the European close (after being down immediately after the press conference). Capitulation? who knows? Reality? not even close.

European Stocks...


as EuroStoxx catches up to Gold YTD...


European 10Y Spreads...


European 2Y Yields...




European VIX...


EURopean EURphoria...


Charts: Bloomberg

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Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture


tsx500's picture

there's NO WAY that Barry's got his boys buying futures today , in advance of his speech tonight ,  RIGHT ???

A Man without Qualities's picture

That's what I was thinking.  The reaction in the US markets is incredible, given how unaffected US equities have been on the downside and the fact we are at multi-year highs in the S&P.  Who the fuck would buy at these levels? 

you enjoy myself's picture

and worse, hold?  i can understand the HFT's playing along today, but where the hell is the capital coming from to constantly ramp the market and then plateau it?  there's a never an end of day selloff as momos get flat - who the hell is always buying everything and then holding it?

we'll probably finish up 30 today, and tomorrow is just the usual +2 or something.  how in the world is it possible that nothing ever gets sold?

A Man without Qualities's picture

Maybe they have no choice but to keep pushing it higher because there is no one to sell to?  Remember what happened in the last months of the MBS/ CDO market - all this stuff packaged by the banks with absurdly ratings being churned higher all day as there was nobody to offload to and everyone was shit scared but didn't know what else to do... 

"available for sale", low risk according to the VaR model, but no genuine liquidity... 

GetZeeGold's picture



If we knew it was going to be that easy....we would have done it sooner.


vast-dom's picture

certainly not quality but quantity as in quantitative (EUReasing)

vast-dom's picture

"ECB chief Mario Draghi says bank is prepared to buy government bonds in unlimited quantities" = UNLIMITED Q E(UReasing) but note that nothing was yet bought, simply "prepared" to buy. This is fucking silly. It's like Ponzi St forgot that there's this little nation called Germany and that Draghi is all i guess you can pay your mortgage by telling the bank you are "prepared" at some point in time to pay them back, yes?

fourchan's picture

gold shows you they are f---ing up.

Racer's picture

Reality? As long as bwanksters get what they want then F*CK the people

LongSoupLine's picture

complete this sentence:


If markets are rallying massively on "word" of liquidity, that means the "buying" is being done with __________ .

nope-1004's picture

pilfered gold from allocated accounts.


Manthong's picture

.. electrons that will never see a publicly viewable balance sheet.

e-man's picture

Eurphoria will be followed by Eurination.

Racer's picture

......on the people

e-man's picture's the new liquidity!

Amerass's picture

Thank you I haven't laughed that hard in while

samcontrol's picture

<Capitulation? who knows? Reality? not even close>



TYLER you are flip flopping with the first three words . Repeating at extreme yawning point with the other four.

On another note. Something must be done to stop idiots like myself migrating here from yahoo message boards. They have been changed to an unusable format . I am expecting a use surge in users here in the next couple of month. It will be a CULTURE shock to say the least.



jcaz's picture

No problem- we don't read your idiot stuff anyway.....

fuu's picture

From your profile:

"self tough very average investor seeking to improve."

Did you mean self-taught?

MFLTucson's picture


Pre-planned and a perfectly executed fraud on the American people to coordinate with the acceptance speech by the White House clown.  Of course, we have the Jewish mob at Goldman Sachs and their puppet Mario the idiot to thank for the lie out of Europe and we have the disingenuous US crime circus cooking the books on this side of the pond.  I find this so fuckin sickening that one has to wonder about the viability of a country where Jews have such power. Recall Weimar and what happened there, well, will soon be at a theather near you!



Yen Cross's picture

 There is still downside risk in the jobs # tomorrow. We consolidate in Asia or early Europe trade. People are going to want to take some profit before the W/E and the German vote next week.

  These F..king markets are so pathetically levered up!

disabledvet's picture

if everyone is doing that makes it REAL folks. Not RIGHT...but REAL. Not that it doesn't make me love you Magnificent Bastards here even more of course...

geewhiz190's picture

what's real is what's on the screen, not what you wish it was, or think it should be-because you could be wrong

Mr Lennon Hendrix's picture

Sun Tzu would note that while everyone watches stocks, USTs have sold off, and this is what was used to finance the rally.

This is not beneficial to Bernanke.  He and his corporate Fed and the fascist US government he leads around by its tail need low rates to finance the massive debt load.

What happened today was that the Private Dealers who help Geithner's UST finance the Fiat Ponzi (by buying the bonds and flipping them to the Fed T+1) have sold UST holdings to knock up stocks and seize the rally.  It is likely that next week the same Private Dealers (JPM et al) will sell stocks and slip quietly back into USTs because that is to everyones benefit (except europe).  But this is a dangerous game.

This game is dangerous because while the banks pan cash from one investment to another, the fiat they are using to do so is growing exponentially due to printing (which is much discussed) and fractional reserve lending (which is seldom mentioned).  The fiat supply will need to expand faster than the growth rate slows so to achieve the appearence of growth (we call this nominal growth).  If that stops then yes, deflation is possible.

Where it gets interesting is the fact is there is such a thing as reality (believe it or not) and the reliality is the economy and finance along with it is faith based.  As fun as hoping and having faith is at the end of the day it is a complacent way to live.  In the end, the faith based economy will be faced with a reality of negative growth based on the debt load, and based on the rise in all asset prices - this due to inflation and supply constraints.

In the end it is ashes to ashes, and all falls down.

U4 eee aaa's picture

love that article title

TIMBEEER's picture

Rumors; German politicians have said that they will, after the collapse, only serve those debts that were made by the German government? Any ECB, ESM, ES*.* debts will be simply defaulted on? Could be interesting..

Dareconomics's picture

Thanks, Mr. Durden. Not to mention that the European governments are obfuscating their financing needs with the help of the MSM:


I was reading an article in the WSJ, and I came across a very interesting sentence:

The auctions mean that Spain has now completed almost 77% of its borrowing needs for this year.

Like a lot of you, I have been following this Eurocrisis for quite some time, and I wondered if the various numbers being thrown around were accurate. In the Spanish case in particular, the mainstream media has been counting down remaining Spanish financing needs.

What piqued my interest in the 77% figure is that it has been consistently rising as Spain auctions debt, but Spain’s budget deficit has worsened from 5.3% of GDP to 6.3% officially to 8.08% unofficially based on projections from the first half. I decided to add up all Spanish debt sales year-to-date and see how they compared to the budget deficit plus the amount of old debt that needed to be rolled over.

Allow me to work through the math. (All figures rounded. Check out the chart for the exact numbers) I added up all of the bond sales including the September 6 auction. Next, I subtracted the short-term bill sales that would mature by the end of the year, because those sales do not reduce the financing needs for 2012. I obtained €102bn.

This number is supposedly 77% of Spain’s financing needs for the year based on the sentence from the WSJ above. Dividing €102bn by 77% yields an implied figure of €133bn for the rest of the year meaning that Spain has to sell about €31bn in bonds for the rest of 2012.

My calculations show that this number is way off. Spain has €98bn in debt coming due in 2012. Adding the projected budget deficit of 6.3% of GDP, €74bn, gives us financing needs of €172bn. That means remaining financing needs from now until the end of the year are €70bn, and Spain is only 60% of the way there, not 77%.

The situation is actually much worse than this...

Read more here: