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French CDS Hit Escape Velocity
Remember how prohibiting the use of naked sovereign CDS was supposed to make the CDS market tame as a docile lamb? Well, as it turns out, the bulk of the marginal moves were not CDS driven, but simply basis traders putting on, and taking off hedges. Ignoring the fact that many desks have experienced "Boaz Weinstein" like events in the past month (perhaps even Mr. Basis "$4.7 billion AUM" Trade himself), it seems that CDS is now simply tracking moves in cash. And those moves, if you are France, are not pretty. As the chart below shows, French CDS have just hit 88 MPH and are about to go back to a calmer, more peacful time, when everyone could buy and sell stuff using the French Franc...
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Good. Escape is good.
http://www.youtube.com/watch?v=SCn480_TUgY
nosebleed bitchez
Free money, please!
Mmmmm! FRANCenstein loves his FRANC & beans!
And I thought CDS's were useless and everyone dumped them cause they were useless for Greece?.....
what does this mean big picture? French yields blow out?
it means all bailouts are doa, officially. game over.
The end of the Euro and soon all fiat paper. Get physical assets of all kinds while the paper is still accepted. It also means the begining of capital controls, bank runs, rationing, and booming black markets. I wonder of there is an ETF for the latter?
The bigger picture is that there is no bigger picture because governments will not save the day. Everyone is on their own now.
Meanwhile in the land of Unicorns and Skittles, ES is surging, based on the hopium spewed by the CNBC morning crew. If there is no volume today, we will simply melt up and fill the gap, as usual.
Forget about the bearish news. Today will be another Risk On day. When the European markets close, stocks will soar again. Even God will live long enough to see a re-run of 2008...
This is all going according to the globalist plan of bankrupting every nation in the world.
@PaperBear
When you control the money, you control the people.
As long as the people dance to the "papers" tune.
Who else but ZH reports this stuff? Thanks, TD.
P.S. Everyone, prepare for your ration cards. Coming soon to a sovereign near you.
It's borrowing AGAINST the CDS CONTRACTS that's the problem. These people better just start slappin the cement on their shoes right now and "dive in." Bashin' the brains of OWS is not the answer on this one--though it may provide "an outlet" as they say.
Mostly its OPM they are using so it doesnt matter if they lose it. You only have to make a killing once, so might as well swing for the fences.
For years they have been putting their own stashes of accumulated wealth in various trusts so that if they blow up it wont be them wearing the cement shoes. It will be taxpayers again.
up up and away. buahahaha. good bye frenchies
Sarko heard mumbling: "If only that damn Weidmann would relent."
The French will never surrender
They hate us for our freedom fries.
white flag...wave it...
Indeed. A cursory glance over my history text book from years back seems to suggest that the only war France has ever won has been with themselves.
What's the use of CDS's if not even a default is considered a default event?
Anyone remember the Monty Python insurance sketch?
http://www.youtube.com/watch?v=kO2R_DDZPCM
Watch Michael Palin as CDS seller. :)
Classic. At least the reverend got a nude lady, so there's that. CDS paper is 100% imaginary.
I think the flux capacitor is busted.
The contrast between PM's and CDS (and other financial works of fiction) explains PM's popularity... there is some premium for truth. To hold something in one's hands that has actual, intrinsic value! How novel, how strange, how exciting!
Seriously, what kind of tool would be buying CDS's to hedge Euro-trash debt exposure? As the outcome in Greece showed, the politicians and bureaucrats will do whatever it takes to make sure those CDS's never pay off, even if you lose half (or more) of your principal.
NASDAQ megaphone pattern on daily chart indicates a big move lies ahead.
SP500 monthly chart remains bearish and USDX weekly remains bullish, so it’s only a matter of time until the market makes its move.
http://stockmarket618.wordpress.com
Sarko to Greece: If you are part of a Group, you must follow the rules.
that was his explanation for cancelling democracy in Greece and sending in the technocrats.
I wonder what Sarko's gonna say when the Group (the bankers) come for his head.
Is he gonna call himself a putain and pull his own pants down in public?
The Group is not the Euro. It's the bankers. Sarko is not running the Group. He's just another
interchangeable employee. I'm enjoying every word of this.