Five Days Since The Spanish "Bailout": You Are Here

Tyler Durden's picture


With few (if any) natural buyers of Spanish debt (especially given the lack of CDS-cash basis now), Spanish bonds continue to crumble lower in price and higher in yield/spread. For the first time ever, 10Y Spanish bond yields have passed 575bps over Bunds - currently trading at 7.15% yield. Since the post-banking-bailout open, Spanish bond spreads have soared a remarkable 114bps and whether this is seen as the fulcrum security or Italian bonds (which are also deteriorating rapidly this morning), it would appear that just as Spiegel reports today from the G-20, via a senior EU official: "If Germany Doesn't Make A Move, Europe Is Dead".

European sovereign bond spread movements post Spanish bailout


Charts: Bloomberg

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Mon, 06/18/2012 - 08:22 | 2535882 disabledvet
disabledvet's picture

"Bond. James Bond."

Mon, 06/18/2012 - 08:33 | 2535886 maxmad
maxmad's picture

This makes complete sense.... Just like somebody thought it was a brilliant idea to "paying for debt by creating more debt!"

Mon, 06/18/2012 - 08:36 | 2535921 maxmad
maxmad's picture

Gee this is just like taking 5 braty kids on a long car ride.  As soon as you get one from stopping to cry and throwing a fit, then you get the next one throwing a fit... There is no solution, except stoping the car, kicking them all out, and continuing on...

Mon, 06/18/2012 - 08:50 | 2535959 Chris Jusset
Chris Jusset's picture

The bond vigilantes are B A C K ! ! !

Mon, 06/18/2012 - 10:17 | 2536136 caconhma
caconhma's picture

It is just a matter of time before Germany will be bankrupt like the rest of the Euro zone countries.

May be it is the master plan by the Jewish Bolchevik Banking Mafia who took over the USA and EU.

Mon, 06/18/2012 - 08:22 | 2535883 mrktwtch2
mrktwtch2's picture

and why is this a surprise??

Mon, 06/18/2012 - 08:23 | 2535884 falak pema
falak pema's picture

"If Germany Doesn't Make A Move, Europe Is Dead".

If Germany doesn't move Europe gets a new face! (fixed it).

Mon, 06/18/2012 - 09:14 | 2536010 OttoMBMP
OttoMBMP's picture

"If Germany Doesn't Make A Move, the EUSSR Is Dead - and the people will rejoyce!!!!"

But I fear, they will "make a move", they always have. German politicians are paid to betray the German people. They are NWO puppets and will act accordingly.

Mon, 06/18/2012 - 10:26 | 2536064 falak pema
falak pema's picture

ah the deadly dregs of Hitlerian Pangerman dream leave their legacy on Merkel's face, like a spurt of  old forgotten perfume, now considered poison ivy. And the American cabal use this nostalgia/germany-first strain as a recurrent wake up call to purge Allemania of all its uber-alles or mere independency penchants. 

"We have the technology, we have the base for future revival. But do we have the will? " Good question that Ost politiks could resolve if die westen faszination runs out of steam.

If only Merkel could grow cojones like Maggy did for her own deadly agenda that cured brit decadence but killed brit independence and popular class. But then we would be in another world sooner than the Oligarchy has scheduled it, in their desperate can kicking world of denial. 

Mon, 06/18/2012 - 08:24 | 2535887 battle axe
battle axe's picture

"If Germany does not make a move Europe is dead". Prediction: Europe is already DEAD.

Mon, 06/18/2012 - 08:29 | 2535899 azzhatter
azzhatter's picture

If Germany makes a move, Germany is dead is more realistic

Mon, 06/18/2012 - 08:54 | 2535961 Stock Tips Inve...
Stock Tips Investment's picture

I think the discussions within Germany revolve around whether to continue pumping money in Europe or preparing for the crisis they themselves. The size of the crisis in Europe is growing every week, and Germany knows that he has unlimited resources. It will be better for them to use their resources in their own economy?

Mon, 06/18/2012 - 08:25 | 2535888 tomAsss
tomAsss's picture

if Germany makes another move, Europe is dead

Mon, 06/18/2012 - 08:35 | 2535919 _mike123_
_mike123_'s picture

if Germany makes another move, the German taxpayer is dead.

Mon, 06/18/2012 - 08:56 | 2535965 Peter Pan
Peter Pan's picture

If Germany does not make a move, the free market can heal itself on its own.

Mon, 06/18/2012 - 10:22 | 2536141 Caggge
Caggge's picture

If Germany has a bowel movement, Spain, Italy, and Greece will fall out her ass.

Mon, 06/18/2012 - 08:27 | 2535891 cossack55
cossack55's picture

Last time Germany made a move Europe was dead.  Damned vampire continent.

Mon, 06/18/2012 - 08:27 | 2535892 midtowng
midtowng's picture

Euro can't survive Spain going under. The only question is how long they can keep kicking this can?

Mon, 06/18/2012 - 08:28 | 2535894 Let The Wurlitz...
Let The Wurlitzer Play's picture

Europe is dead already.


Mon, 06/18/2012 - 08:31 | 2535906 GeneMarchbanks
GeneMarchbanks's picture


But back to your MSM derived hallucination...

Mon, 06/18/2012 - 08:37 | 2535925 AnAnonymous
AnAnonymous's picture

Europe is dead already.

Europe was a still born baby.

Mon, 06/18/2012 - 11:56 | 2536384 akak
akak's picture


Europe was a still born baby.

From which a Chinese Citizenism citizen probably made a delicious soup (with the addition of an appropriate amount of puppy meat, endangered shark fins, and the nests of certain rare birds).  After having consumed said fetus broth, our Borglike Chinese Citizenism citizen most likely promptly shat upon an oppressed Tibetan on a Chinese roadside, in true Chinese Citizenism fashion, before hitting the People's Liberation Opium Parlour and Internet Cafe for a hours-long spree of pro-Chicom time-traveling algebraic coconut denialistic online trolling.

Such is the eternal nature of fetus-slurping, puppy-munching, blobbing-up Chinese Citizenism citizens.

Mon, 06/18/2012 - 12:02 | 2536426 Nukular Freedum
Nukular Freedum's picture

(Sigh!) I think many people have concluded its a false flag operation already.

Mon, 06/18/2012 - 08:28 | 2535895 valley chick
valley chick's picture

Italian bonds (which are also deteriorating rapidly this morning)

bring it on!

Mon, 06/18/2012 - 08:31 | 2535896 Village Smithy
Village Smithy's picture

They make it sound as if Germany exists in another galaxy where prosperity is alive and well and they can just open the checkbook. They are in as deep as anyone, for the last 5 years at least they have been given IOUs for their exports and they are never going to be paid with real money.  

Mon, 06/18/2012 - 08:48 | 2535955 reload
reload's picture

True enough, but China does not pay quickly for her imports either. In my field (agricultural chemicals) German manufactures find the Chineese infuriating and confusing to deal with. Their buyers of choice are in the UK and Russia. Lots of German exporters have been busy forging contacts in Russia of late. That is their future market, and in return Germany gets access to energy, and more importantly energy security. Merkel speaks Russian like a native, much closer German / Russian co operation must be a medium term possibility.

Mon, 06/18/2012 - 08:55 | 2535963 cossack55
cossack55's picture

I think their last non-aggression pact did not work out so well.

Mon, 06/18/2012 - 09:17 | 2536017 OttoMBMP
OttoMBMP's picture

Well that was Molotov/ Ribbentrop.

Today in Germany we have .... Westerwelle!!!!!! Hahahahaha!!!

Mon, 06/18/2012 - 10:30 | 2536155 caconhma
caconhma's picture

The Molotov/ Ribbentrop Pact did not work because Stalin wanted the Entire Europe just for himself.

Stalin, not Hitler, together with Jewish Banking Mafia was the primary initiator of the WWII. Hitler was not a nice guy but please stop blaming him for all world crimes. Stalin, Roosevelt, Churchill, Mao, and Japanese were not any better.


Mon, 06/18/2012 - 09:09 | 2535998 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Of course GErmany must pay for all of Europe's Cradle-To-Grave Welfare and early retirements.

It's only 'Fair", doncha know, since they produce so much, and do so well. Why should the GERMANS get to keep all that money for themselves, when the socialist pols can do so much 'Good!' with it, and buy so many votes elsewhere!

Don't you understand that these pols have hungry children, and mistresses to feed? What kind of a heartless, conservative bastard are you, anyway?

Mon, 06/18/2012 - 08:29 | 2535897 q99x2
q99x2's picture

Greeks lost their election. The banksters want a revolution and can't even force stupido Europe into one without starving them to death first.

Mon, 06/18/2012 - 08:29 | 2535898 Donlast
Donlast's picture

Germany should out, with whoever.  Leaave the rest to a devalued Euro to sort themselves out.  

There is no reason not to come back later with help but lance the boil first.   

Then the markets will react to credible solution - and so will business round the globe. 

Mon, 06/18/2012 - 08:30 | 2535904 virgilcaine
virgilcaine's picture

The can has become too large to kick, the size of an oil drum.

Mon, 06/18/2012 - 09:00 | 2535979 LeisureSmith
LeisureSmith's picture

Plus the cankicker has emphysema and his kickingfoot is worn down to a nub...but the crazy basterd keeps asking for more meth and a new boot.

Mon, 06/18/2012 - 08:31 | 2535905 tomAsss
tomAsss's picture

btw. I dont get it ..

if Europe is so important , why China does not make move or USA

anyway ..I think they all must default , and sell their assets on market

after that we can have fresh start again

Mon, 06/18/2012 - 08:31 | 2535908 Paul Thomason
Paul Thomason's picture

Despite recent market rally, internals are getting worse, not better - new update: 'Greece, SPX and 22 New Bearish Portfolio Positions!!'

Mon, 06/18/2012 - 08:32 | 2535912 lizzy36
lizzy36's picture

One imagines that every G20 leak (eu based or not) is Geithner. 

Mon, 06/18/2012 - 08:33 | 2535913 Alejandrito
Alejandrito's picture

With the bank bailout, what is done is to transfer the losses of the banks to the balance of the state.

So the stock has risen and interest on bonds have risen.

Mon, 06/18/2012 - 08:35 | 2535915 poldark
poldark's picture

If Italy and Spain were to leave the eurozone, they would probably also default on their foreign debt. Such an act would probably cause the European financial system to collapse – something that would ultimately reverberate in Italy and Spain, too. But the irony is that an Italian or Spanish exit would probably end up hurting France and Germany more than it would hurt Italy or Spain.

Mon, 06/18/2012 - 08:36 | 2535918 virgilcaine
virgilcaine's picture

We could be at vix.. 30 in no time.. then 10 point increments thereafter onto 80+. My estimates are each 10 pt vix move equals - 100 pts on the sp.

nothing like fear in the mkts when it finally arrives.


Mon, 06/18/2012 - 08:38 | 2535920 tomAsss
tomAsss's picture

does any see any corelation with this

Spanish flu



Mon, 06/18/2012 - 08:37 | 2535924 DutchDude
DutchDude's picture

If Germany makes a movie; it won't be a comedy...

Mon, 06/18/2012 - 08:55 | 2535964 Incubus
Incubus's picture

Baking with ubermensch

Mon, 06/18/2012 - 08:40 | 2535931 LeisureSmith
LeisureSmith's picture

Cascading Default Syndrome is highly contagious and there is no known cure...remember to burn the bodies.

Mon, 06/18/2012 - 08:40 | 2535932 Ted Baker
Ted Baker's picture


Mon, 06/18/2012 - 08:43 | 2535944 booboo
booboo's picture

Europe sleeps wit da fish

Mon, 06/18/2012 - 08:43 | 2535945 vocational tainee
vocational tainee's picture

when Germany moves ,it hurt´s

Mon, 06/18/2012 - 08:49 | 2535957 savagegoose
savagegoose's picture

WTF let France make the move! theyre all for pissing in the wind. Only moveGermany needs to do  is GET THE FUCK OUT NOW.

Mon, 06/18/2012 - 09:18 | 2536021 OttoMBMP
OttoMBMP's picture

The French cannot move! They are all retired or on holidays!!!

Mon, 06/18/2012 - 08:55 | 2535962 Zgangsta
Zgangsta's picture

It's No Good Captain She's Breaking Up!

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