This page has been archived and commenting is disabled.
EURUSD Soars To 1.39 As French-Bund, EFSF Spreads Surge To New All Time Highs
Uh, what is going on? Are French banks selling everything USD-denominated, promptly dumping the USD proceeds, and converting everything into Euros? Someone clearly knows something and is not happy with France, and hence EFSF spreads, as both the OAT-Bund and EFSF spreads have just surged to new records... but it sure isn't the ES which, oblivious as always, just trades with 1.000 correlation to the EURUSD which continues to telegraph precisely the opposite of what most believe. Oh well.
OAT-Bund spread:
OAT-Bund and EFSF spreads:
»
- 12991 reads
- Printer-friendly version
- Send to friend
- advertisements -
A run to the euro - who would have thought about that?
or, a massive short squeeze as ZH pointed out last friday.
hurry, sale everthing not bolted down, if it is the tool shead is in the back.
Short positions actually increased as of Tuesday (October 18) last week, up from the October 11 level. Unless it started later in the week, there's no squeeze yet.
I knew, fucking assholes come on here Friday urging all to short more...rigged. Look back to Friday, all those pressing more to short are asshole rigged fuckheads.
How many of those have been knocked out in this run?
They need euro's to convert to marks, and they need the euro at least at 1.50 or better, and they will get it.
is this just your gut feeling, or do you have some kind of reliable source for this statement?
Mainly german papers and blogs, along with 2 pair of feet on the ground. Started as rumor, then the new plates appeared, then silence. Im sure i saw the same headline on ZH about this, and at the same time the summit came unwound, mil buddies are hearing it all over the place now, and polls are popping up testing public approval, and from what i see and hear, they are all for it. Hell, i would be too. If they give in, they loose control. It would make sense because the euro must have all the players stay in the game (greece). They say greece can leave and all will be well, i say bullshit. You take one spoke out of that wheel and it will collapse, they know that.
Gut tells me there is a possibility, crazy as it seems, that germany could become the defacto euro fed, which could explain the BS ramp up to the summit that accomplished nothing, while they haggle behind closed doors. Could also explain the euro repat, since they may be trading those for marks, or euro marks? Then the germans retain total control, refunding the ez with marks valued at 1.95 e, a slight premium.
Who knows, ben could be ass fucking the moody zanadeaux causing the euro spike for all i know. This is insane.
look, the Germans ARE preparing for a return to the DM
and the Germans ARE NOT going to return to the DM
fixed for you
Makes sense. France, Italy and Spain (ie. the Vatican) would not be at all happy with Germany back in the driver's seat again, after taking 54 years to get to here!
aNd millions of liras for berlusconi... so they need to go UP UP UP
Yeah, because you won't be permitted to by DMs with any other currency except Euros?
or, as I repeatedly wrote - gravity
ES? correlation is not causation
so boring when people start running helter skelter.
For those wo love Ron PAul on ZH here is a diatribe against his financial policy. Chew on it, then spit it out like old tabakkooo.
Karl Marx Predicted Libertarian/Ron Paul FoolishnessRead more: http://www.businessinsider.com/karl-marx-predicted-libertarianron-paul-foolishness-2011-10#ixzz1biHBhy1Z
Saw RP being interviewed on "meet the press" this weekend. Came away from watching that with a serious conviction that he is a GOOD man, one who gets it, has moral character, and like any serious doctor, isn't afraid to amputate when the situation calls for it.
Most of the interviewer posed objections to his proposals followed the lines of "you want to cut out the gross excesses we've been enjoying for decades, do you know how painful that will be?", along with "you object to government actions as unconstitutional; don't you like the results of those actions?" Right; the best reason for not ending an addiction to gluttony is because excess seems more naturally American than absence, and if we follow the lead of our statesmen, then the ends surely justify the means...
He's a good man who hasn't a snowball's chance of being elected; he's nevertheless done more to restore my hope for humanity than any other single public figure.
The people elect the president not the corporate news media.
Ron Paul wins Ohio Republican straw poll … a swing state with 53%
www.infowars.com/ron-paul-wins-ohio-republican-straw-poll/
F**KING HOLY MOTHER OF GOD !!
WOOHOO, WOOHOO, WOOHOO, go Ron Paul.
I like him - so coherent that I ask myself if he really is a politician
I still have not understood what his plans would be in regard of defense spending - amputation?
Seems fairly clear to me. He plans on pulling the plug on the American Empire and bringing the troops home, to defend our borders. I for one think if other countries want our protection, they should pay for it.
He also mentioned cutting the DoD budget by 2%, which only seems like alot if you hear the actual #s. Otherwise, its fairly small, IMHO, considering. Although I do sometimes suspect he's the real closer for the Bildebergs, but I figure that's because Romney actually was in Switzerland over the summer for the conference and I'm giving them more credit than they may deserve w/ regards to brains...so that's just my don't trust any politician instinct kicking in.
He laid out his fiscal plan, with full numbers, a couple of weeks back if you want to take a look:
http://www.ronpaul2012.com/the-issues/ron-paul-plan-to-restore-america/
The folks here have been calling the top since March 2009. I've been in primarily short trades the past two months, but shorts are getting their asses handed to them YET ONE MORE TIME.
Eventually, ZH is going to get the top call right. But not before the next generation of bears flame out of their accounts.
You know, I get that this POS is a manipulated sack of shit and that bulltard longs are accomplices to the theft of trillions from the US taxpayer (who cares as long as I get mine). I just get tired of the veins on the ZH neck standing out constantly. You guys are going to have a stroke long before this market crashes--if it ever does.
Didnt the markets just take a huge trip down from 12,700 to 10,700? Did everyone already forget that?
Didn't fit his spleen to mention that.
PD Quig just got it Sheep-Doggy style!
Its funny, 'bears' are always taking a hit, but I guess no bulls got dinged when the DOW just lost 2,000 points? Weird how that works.
They got so dinged that they forgot to mention it
Dipshits: I said that I've been playing mostly the short side recently (quite successfully, thank you). I also said I agree with the thesis that the markets are no longer really markets, but, rather manipulated playthings.
If you can't handle a little a pushback then you're not a trader--you're a true believer...and there's no faster way to go broke.
How have your shorts been working for you since Oct. 4th, Zealot Hedge zombies?
and it's so fucking funny how moronic trolling flame-bait assclowns such as yourself never showed up the first two weeks of august. funny how that works.
Now I need to be careful here, there are lots of traders on the board. I like traders, they have addict personalities like I do, they are a scream a minute, ballsy, awesome.
1. I am not a trader, I am sitting in cash, gold, silver, guns, bullets, grub: mock me at will, I am one of "those." This is not sustainable, though it may cave after I am dead. Don't know. Stupid not to be ready.
2. I got out of the market in 2006. I did not take the 40% hair cut my colleagues did. My gold and silver on the other hand...
3. The reason I am not in, more than seeing the tsunami coming (no one believed me, my family lost money, it sucked big ones), was because I realized that by being in it, I was supporting the immorality of it. I like to take credit for being clever, but honestly, I couldn't stand how rotten I felt supporting the con game. Feels a lot cleaner out here, less stress too.
4. No offense to ZH, but they weren't around when I got my first clue about this shit, back in 2005, when I deeply comprehended our energy issues. ZH has taught me about shifty GS disguising debt as assets in off balance sheet vehichles for countries like Greece, Itally, and Spain. They taught me about HFT and the impact it has on markets. And more. But I did not need them to tell me to get the fuck out of dodge.
5. My shorts work well. My husband likes the little black ones.
6. I ain't going broke.
Signed, a dipshit, AKA a MsCreant.
OK roboturd, another myth trader, ALWAYS on the right side. Fucking please.
dog. hardly a huge trip (more like a pothole) as we flirt with 1260 today and yes it is a dysfunctional manipulated clusterf but the world didn`t end this weekend however I can confidently predict that there will come a weekend in the future when it will indeed have ended
That's what happens when you short shit after it takes a big dive.
"the markets can stay irrational longer than you can stay solvent" --Keynes
If you trade, you follow the herd. But the herd movement must be consistent with economic laws in the long run. If you look @ the chart in 2008, no one had priced in a sub-prime collapse, and day traders were holding limp dicks, as the markets imploded.
There is atleast one black swan out there. Hedgefunds are picking up pennies in front of a steam roller. I do not want to be in risk with that knowledge. But I'm just a college student, and not back-stopped by taxpayers, or a pension fund.
+1 College students reading (and comprehending) ZH-like stuff helps restore my faith we'll come out the other side competing well with the rest of the world. Keep it up...invite your friends.
you don't get it i dont have to go short i just buy when it goes down and sell when it goes up you dont have to be short in fact i never am .
Jim Rickards keeps saying that the Euro will survive because of the large combined Gold reserves the EU has. That and susposedly it is in their and China's interest to have a strong Euro moving forward.
Voila. The euro will survive. Thursday big relief rally. No domino, crisis, collapse etc etc.
Nobody is running anywhere...
Couple of more points and this is broken once and for all.
DJIA 36000 here we come. Gold per ounce to a cool million of worthless fiat currencies. Loaf of bread to $20. Milk to $50 per gallon.
Eaaaaaaaaaaaasy !!!! People who need to escape quickly because everything is ready to implode and meltdown... as Berlusconi new girlfriend's is calling him to LIVE IN Alaska... ECB is paying him everything, don't worry about him. PATHETIC... FOC FOC FOC!
i opened up a practice forex account yesterday. Can you imagine this kind of action if you trade forex for a living. It's like trying to pick a 3 legged horse on a quarter mile track. The horses are all retarded and missing a limb. Let's see how long it takes me to lose my 100 grand in this fun account. My first trade.. Eur/USD short. Wrong!! 0-1. haha
It's actually great for FX! The volatility is amazing, as long as you don't do anything stupid. Our algos take both sides of the trade and will only really lose 1 out of 5 days of the week, of course you do have to have a generous stop loss, but it's still more than enough to catch profit on the other times to make up the large loss potential. It's all about taking your probability and getting out with something. Easier said than done.
super committee scars everyone
Yep. With the Merrill news, perhaps they figured that the US was simply in worst shape than Europe. Which means not in very good shape.
I wonder how these banks like finding themselves between a rock and a hard place...
both triple a rated... mais oui mangetout, mangetout
The USD is a pure piece of s**t, the USA's jewish overlords have printed it into complete worthlessness over the past 100 years. Why every citizen isn't buying every piece of gold and silver they can land their pampered hands on, i don't know.
Regardless of the religion of those doing the printing, your points are true. If there is one thing this financial crisis has shown is that assholes come in all shapes and sizes, religions, races, and nationalities!
The biggest mistake you can do is to blame someone else for the troubles at hand, for that way the real culprits go free as has happened and is happening.
The Vatican and it's subsidiary Goldman Sachs are the ones who designed this collapse (and previous ones too). Ratzinger is now openly calling for the creation of one world government:
http://www.radiovaticana.org/EN1/Articolo.asp?c=531752
Damn straight.
Damn straight, indeed! They now control nearly every position of power within DC: TOTUS, Congress (both sides), SCOTUS and Administration ... particularly in the state security apparatus (CIA, DHS, TSA, FBI, etc).
Perhaps The Godfather part. III deserved a better fate after all...
I thought he was in charge since 'dictatus papae' days. Those statutes have never been revoked by papal church. SO when the secular politicians collapse in front of the global market, he can step in and Say .."I'm St Peter's vicar on earth AND Caesar's ghost. You all must now rally round me as leader of first world and third world."
He would have a point, as there are 2 billion christians mostly in third world. Big, big potential for the leader of first western based multinational corporation of the world selling 'christian' hopium since 325 AD.
"Only a spirit of concord that rises above divisions and conflicts will allow humanity to be authentically one family and to conceive of a new world with the creation of a world public Authority at the service of the common good."
yet still the majority are jews
but its the s**t that makes the world go round as reserve. Before you can say "long live the new king", you have to say "the old king is dead". It ain't happening in near future unless the future telescopes fast!
My head hurts
QE3/4 announcement upcoming...
french downgrade coming.
WAIT ! Merkozy will announce a new plan to fix things in any minute. Details to come later. Everything is "beau".
i get the feeling that the euro will keep rallying even with a french downgrade.
I agree: the details of the EU summit will lead S&P to downgrade France. This is the most logical cause for market behaviour today.
I just want to know how the FUCK can they announce QE3 at the moment while every single asset in the world is on fire. Brent just hit 90 for god sakes. Commodities are taking off. Stocks are going through the stratosphere. IF they announce QE3 anytime soon, we are more fucked and on a shorter time line than even ZH thinks.
meanwhile, on front page of bloomberg, DB preparing to liquidate its commidity biz...this will turn out to be the biggest sucker rally in history.
If QE3 targets MBSs then the Fed can sell it as a program to make owning a house easier, and bypass accusations of stock market pumping.
Brent is around $110, WTI is around $90
Must...hit...GS...target...must...not...look. bad...
Fuck it, just buy the banks and short the USD. Win(ing)!
Long EURUSD. The ultimate contrarian trade.
Contrary to all reason, sense and sanity
The greatest trick the Devil ever pulled was convincing the world he didn't exist.
even better trick, get a significant chunk of the world population to worship you and carry out your and your followers twisted deeds while all the while believing they were doing "good"...
if you really look into it, there can be little doubt that the world is run by talmudic luciferians.
And that was Keiser Soze
Krugman has the answer. More printing. http://www.nytimes.com/2011/10/24/opinion/the-hole-in-europes-bucket.htm...
Shocker.
'The answer' to what question? Why the markets are up more than 10% in a week? The answer to that is more printing?
WHAT THE FUKKKKKKKKKKKKK!
It's funny though how the markets only go one way: while the EUR/USD was leaking the market was still up nicely and even picked up at one point. Then the EUR/USD reveresed and stocks ramped even higher.
World markets are melting-up all over the world.
It's the QE3 trade. It's on, big time. Someone must know Ben is coming out with something shortly.
Well they better deliver then, will be freaking hilarious when he doesnt, the collective WTF would be worth paying to watch.
Crude@90 and Brent@110 says BS tho.
I dont believe that for a minute....sucker rally....same as the US debt ceiling runup which resulted in a big crash.
Wash, lather up, rinse, repeat.
wash, lather up, SHORT, rinse, COVER, repeat.
I wish Ben would get on with it. I am all in with silver and my stash is increasing only modestly.
AUD not far behind
"China's stubbornly high consumer prices are set to decline this year, as the government's cooling measures take effect, yet complicated new problems mean economic regulation will be a more arduous process, a senior official said. The Consumer Price Index (CPI), a main gauge of inflation, is expected to decline to less than 5 percent in the next two months, said Peng Sen, vice director of the National Development and Reform Commission (NDRC), the country's top economic planning agency." (Xinhua)
Right, and you cannot short a broken market, a real one, sure, but not this one. Nope, will end up with little equity if you try it.....For now.
Imagine the huge rocket launch we are going to have.
When the spreads actually start falling.
LOL....
Keep picking those pennies. I believe the bulldozer has nice strap-on you will definately enjoy.
Yea last 'rocket launch' you called was at DOW 12,700.
OZ is the fly in the ointment that you're trying to sell. RE is starting to crack, and China is still trying to cool things down further so there goes their exports as well.
Gosh, if you need to raise euro fiat to meet margin calls, why should this be a surprise? Guess I am missing something.
just b4 this article, tyler posted chris martinson & the euro-map showing the "contagion from the periphery to the center" which---center---appeared to me to be: switzerland(?) and not just france and germany, the "heavyweights" in the fight
when the SNB surprised the world a few weeks ago (9.6.11) and came out w/ the support peg, in what seemed to me to be an obvious central-bankster-orchestrated plan (ostensibly to stem the swissie's rise against the euro, but more importantly, internationally...) to support the damned euro, as in life support: at that point the bankster cartel PPT moved to save one of the handful of the key, inner fiat paper/debt bullshitzkies of the modern world!
they have got the euro so "valuable" in less than 2 months that (don't look now) they are beggaring the working world (emergent economies, germany, and so on) with their buggery to support the non-working world and, of course, its banksters. they are making the euro look like mighty mouse, here; strong enuf to save the day! if the euro had been allowed to seek its present shitty market value, wouldn't the idea of "saving it" and all its debt seem less attractive?
you know the immediate hand-puppet improv shows everyone breaks into when a movie projector is turned on? well, the fiat shadow-puppet show is nothing but the porcine little greedy fat fingers of the fuking banksters putting up images of ponies & rainbows
ok. maybe they are using holograms and direct transmission, but the principle's the same! L0L!!!
so if we're missing anything, it's just the popcorn, and if there's any one thing zH is long on, it's the kernel
the pols are completely clueless at this point, but the scene where they told timmah to get fuked was fabulous! it looks to me at this point that the banksters will rescue the banks and the euro will be just fine, but only at colossal sovereign expense, but since they have the power of taxation and state assets to juggle, wtf, who cares?
what could possibly go wrong?
It's called a euro short squeeze..
can t it be that the ZH readers and TD are way to pessimistic??
Spot On.
Oh. I am long from 3830. May ditch the position shortly. ;)
can we have a slight dip now please, so to give Ben a reason to announce the next lsap
Wouldnt we expect euro strength on massive hyperdeflAtion.
Its the wife with the cheating booko bucks husband. The wife is the market the husband the sov's. The husband gives her the clap, aids , herpes etc. But the minute she admits to everyone he's cheated then in the divorce she gets nothing cause she never had a plan to fall back on if he failed. So she keeps beggin him- "Lie to Me."
Starbucks, Vanity Fair, Whole Foods, Limited Brands
All at 3-year highs.
The U.S. Consumer was totally unfazed, because they could care less about Europe's problems.
Ever heard the phrase "Dumb American"? Well, it exists for a reason.
one word. inflation. Get a fucking clue robo.
Who cares if the tide suddenly rolls out without explanation. What consequence has this for "me"?
http://www.youtube.com/watch?v=hTqRk0lysSI
Snowballs take their chances, go to hell, and come back out again. Black swans fly and blot out the sky.
Liked the tune.
Yes, and thankfully, the U.S. Consumers have no problems of their own.
They all have good jobs... at Starbucks, Vanity Fair, Whole Foods, and Limited Brands.
Hmm...
http://3.bp.blogspot.com/-SEbcqlw4G0M/TqV82dgaA4I/AAAAAAAAAm8/8MG2R4Rluh...
uh huh
Even the best Monday Morning QB on ZH can't even get the rationale for the low volume meltup right.
I am not touching EUR or USD for now... I am however shorting the USD/JPY just in case USD smokes... I know Japan is going to intervene soon. But last Friday, USD/JPY hit all time low with a huge spike down. Something may be up against USD.
alas, poor yorick...
So is France actually selling something in dollars or are they just converting dollars to Euros?
Nothing is going down (stocks, bonds, oil, etc...) so it must just be a cash thing...which kicks off the buy buy buy bots.
in response to Euro Crisis I'll let Marla speak one of her classic lines from Fight Club:
http://www.youtube.com/watch?v=ZKpFWs1ECiE (7 secs)
...
Same shit different days... Does that surprise anyone?
Time to relax... What about "The best of Nigel?"
http://www.youtube.com/watch?feature=player_embedded&v=OU8K6oCm2w8
yeeeeeeeeeeeeahhhhh... more money for girlfriends of Berlusconi... Bravo ITALIA !!!! giving everything for the Gadafi's best-friend!! foc foc foc...!!!
European leaders have been spending time together and so far there have been no stabbings, no poisoning of the smoked salmon, and no drunken diatribes (not even by Ireland!) issued.
These are all positive signs that are leading investors to put their trust in the Euro and, for some reason, in US equities.
Kidding aside, I really can't figure out what's going on - either the fed has already whispered the start date and size of QE3 to some folks, or somehow we've already reached Goldman's S&P target for the year despite everything being royally fucked.
Wash, lather up, rinse, repeat....how this keeps fooling everyone is the only baffling part to me.
If you compare the whole eurozone and USA, eurozone is better off. No big trade deficit, manufacturing bases still there, no foreign wars sucking up taxpayers money, even the EU administration itself is lightweight compared to US federal budget (EU: 140 billion euro yearly budget, US: 2700 billion dollars).
Americans like to choose the worst region of eurozone as example of all EU but that is like judging all USA by taking the worst neighborhoods of Detroit or Los Angeles as representative examples.
TODAY, ITS COMICAL, AT BEST!!!
Biflationary forces hard at work today. That's a strong headwind for a tepid economy. Gold will shine to new records in this environment not as speculation about hyperinflation but rather as protection against accelerating loss of value of paper assets denominated in dollars.
It is all about the bonds... I did mention that before the rally ... We are at the beginning of a BEAR MARKET IN US TREASURIES... Initially bonds move lower and stocks catch a bid but then as they keep moving lower , the stocks will tank brutally and all those with their bond/stock portfolio (think most sheeple) will get slaughtered in 5,4,3...
Someones got to pay real soon here, no doubt about that.
Glad to see ZeroHedge is catching up on the correlation between OAT and EFSF:
http://macronomy.blogspot.com/2011/10/if-you-are-in-trouble-double.html
Martin T
oh, yeah, catching up to the opposite of fundamentals. gotcha.
French banks have a great opprtunity today to sell off dollar denominated securities at a good price today, but the exchange back to Euros is very expensive. Unless they are facing massive margin squeezes, they should sell US securities today and just wait for the EUR to cool off before repatriating. Something is clearly out of whack.
I wonder if they would give some folks a heads up so that when the haircuts come, they have a cash cushion from other transactions. In other words all this theater stalling is an effort to buy time for a slower unwind so that the deflating assets don't over correct down so hard that no one can get anything.
Ok, immenent crash. I threw in the towel. Dollar cost averaging my shorts opver the last few weeks has ripped me a new one big time... so expect big moves down soon. i'm moving to buying FAZ since you can't lose more than your investment. Who would have thought that expecting a market to go down some of the time was ludicrous...
Same boat......i get the feeling that whoever first conceived of the idea of a "mass consciousness" was right. e.g. you and I and millions of others, without ever seeing, knowing, or hearing of one another, make the same moves because we are of one mind, within a fairly narrow time frame, and there are computers out there that recognize that, in this specific case, we millions have made a bet to be short. And the computers then run the market up via the ETFs (or down, depending) which have enormous power forcing us to either average down, capitulate or blow our brains out.
Averaging down to a point, the same things happen in this scenario: you and I and the million others capitulate and close out our shorts, for some strange reason all at the same time, and the computers notice this and then automatically send the market into a tailspin.
It's not irrational as so many think. It is perfectly rational but because those computers can "see" our bet--- and our bets are by millions of shares-----they can take our money.
Ergo the stock market isn't what it appears to be. It is instead constantly figuring out ways to take all of our money or so much as we will let it by staying in this rigged game.
But the idea of a "mass mind" (not everyone, but enough) has become so glaringly obvious to me that I wonder in what other ways so many of us think and act, buy and sell, exactly alike. Like having a million doppelgangers that look nothing alike, but are connected in mind as if we were clones, identical twins and of one strand of DNA.
This market will top out for the year in the next day or two.
That would be very nice and would make me happy.
God has no interest in making Anony anything but miserable for being short.
Bet accordingly.
I don't feel so good.
Once the shorts start throwing in the towel and talking of rigged markets at ZH, that is the time to start short positions. Cover when then shorts are on ZH talking about we told you so Bitchez Dow to 6000
It's been working, of course until it doesn't.
Today nobody but a well conected insider can explain how this broken corrupt market is guided. All's the investor can do is try to predict Big Brother's next move in the Central Planned World economy by filtering out the propaganda and head fakes he thows at him via the MSM. If your good at it you get rewarded just like his conected party member insiders with Big Brother's fiat currency in whatever country of his you reside in plus bragging rights. Big Brother is punishing the market disendents right now. He is angry. None of his fiat for us this week!
Tru Dat!
Big Brother is angry--I like that. He's also fucked. Mom and pop still not buying the bullshit. Muni default landslide starting... won't be able to keep that out of the MSM. Think that's gonna be the pebble that shatters the windshield.
The markets have proved in the last 3 years that they do not reflect reality. Not by a long shot.
maybe this has something to do with it? "
German officials: Bailout fund will top $1.4 trlnhttp://www.cbsnews.com/8301-501369_162-20124646.html
Or this one?
Merrill Lynch Warns of Another U.S. Debt Downgradehttp://abcnews.go.com/blogs/business/2011/10/merrill-lynch-warns-of-anot...
Stop losing at life, you know it's end of the month and funds will chase/window dress. The EU solution will work for at least a year... France will not get downgraded as they will have a SPV where the IMF and other nations can invest to recapitalize France's banks. Cover your shorts, wait til ES 1350 which will probably be around start of November then short APPL as it trades in a pretty defined range when not close to earnings and rally will correct until mid month probably to 200 dma at 1270. At end of November when funds will window dress again, short the VIX till January.
Win at life
I'm copying this and saving it so it's "on the record". Will repost when market crashes.
You did notice the screen name?
So, what kind of assets are the french banks liquidating? can´t be equities, US Bonds? the yields doesn't seem to tell that. Could be just the expectation (certainty) of the coming massive QE 3,4,5, etc... in order to bailout the world?
And yet Tyler keeps predicting the demise of the Euro in post after bearish post.The Euro will prevail as it is a gold backed currency with the backing of the Chinese and Russian governments. If the Euro were such a basket case as ZH has predicted over the last six months, why would the market not have anticipated its collapse by the usual six month period,in other words, the EUR/USD would have turned down over a year ago big style. The Euro is going to survive and will be one of the worlds strongest currencies compared to the increasingly worthless dollar and pound.
If the world currency and equity markets had thought that a Greek default was probable or the end of the Euro as a currency would lead to the apocalyptic scenarios depicted here with ever increasing mouth foaming regularity, why would the S&P and dollar be largely unchanged from levels last year?
Clearly, somebody is in need of a Hedgucation.
I wish it wasn't true but it appears those in power can keep this charade going on for a lot longer then any of us want. The EUR or USD...hmm .... it's like choosing between cancer and heart disease.