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French Spreads Back Near Record Wides As Germany Poops On Europe's Printing Party Again

Tyler Durden's picture


The EURUSD is heading lower once again (back under 1.36), OATs are back near the wides of the day at 161bps, and BTP spreads to Bunds are 15bps off their best levels of the day as the Bundesbank jabs a stick in the spokes of the print-fest that seems to be the meme-du-jour for risk assets.



Not exactly the talk we would expect from the ECB-proxy about to embark of regime-changing transactions.

OATs are even worse - almost back to their wides of the day!

Moreover, European risk assets are very dispersed this week. The chart below shows financial credits (light blue - Subordinated, and red - Senior) dramatically weaker, followed by corporate credit (black - investment grade, and orange - high yield), both underperforming the equity market (dark blue).

Today's equity strength is certainly not convincing.

Chart: Bloomberg


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Thu, 11/10/2011 - 10:56 | 1865871 YesWeKahn
YesWeKahn's picture

Bernanke should tell the germans how to live beyand their means.

Thu, 11/10/2011 - 11:08 | 1865934 jdelano
jdelano's picture

jesus.  that gave me a mental image of a merk/sarkozy shizer vid...

Thu, 11/10/2011 - 11:26 | 1865990 WestVillageIdiot
WestVillageIdiot's picture

You really do need to stay away from the West Village.  Quit going to NY Fetish on Christopher Street and you won't have those Merkozy thoughts anymore.  Maybe you can still get your money back on that gas mask you bought. 

Thu, 11/10/2011 - 11:38 | 1866051 Harlequin001
Harlequin001's picture

This headline sounds like you're making a sandwich...

just sayin'...

Thu, 11/10/2011 - 11:23 | 1865980 SheepDog-One
SheepDog-One's picture

Dont you remember a couple months ago Bergeithnank tried just that and the Germans told him to fuck off?

Thu, 11/10/2011 - 11:27 | 1865997 WestVillageIdiot
WestVillageIdiot's picture

Tiny Timmay says buy a bigger goose and more figgie pudding for Christmas and all will be fine.  Oh, Tannenbaum!



Thu, 11/10/2011 - 10:56 | 1865872 Peter K
Peter K's picture

Yea, speaking of regime change, I think Merkozy should be next. Live by the sword, you should die by the sword.... bitchezzzzzzz:)

Thu, 11/10/2011 - 11:29 | 1866009 WestVillageIdiot
WestVillageIdiot's picture

To be replaced by more Central Bank surrogates.  Maybe Geithner can be Chancellor of Germany and Greenspan (if they can dig up his corpse) can be Emperor of France. 

Thu, 11/10/2011 - 10:57 | 1865873 Dr. Nancy
Dr. Nancy's picture

All that's happening is predictable, as there are 7 stages that every
major economy goes through. Those who know how it works profit & massive
wealth is transferred to them. Several months ago I learned this
information from a millionaire whose site I found & am sharing it with
everyone I know.
His free video
"How To Create Incredible Wealth in Today's Economic Crisis"
is at:
Hope this info helps everyone as much as it has me.
Dr. Nancy

Thu, 11/10/2011 - 10:59 | 1865886 JoBob
JoBob's picture

A bit of spam there, Dr. Nancy....

Thu, 11/10/2011 - 11:30 | 1866011 WestVillageIdiot
WestVillageIdiot's picture

I hate SPAM without ketchup.  Where is the fucking ketchup? 

Thu, 11/10/2011 - 11:40 | 1866057 Harlequin001
Harlequin001's picture

I suspect that Dr Nancy is on the wrong site to peddle this kind of shite...

Do you think we're stupid?

Thu, 11/10/2011 - 10:59 | 1865891 WineSorbet
WineSorbet's picture

Seriously Dr. Douchebag.   This is not the forum to pump your crap.  Please leave ZH alone.  We do not need any more trolls.  We like Harry Wanger and RoboTrader(on occasion).  That's enough.

Thu, 11/10/2011 - 11:05 | 1865925 Ronaldo
Ronaldo's picture

RoboTrader is our Troll!

Thu, 11/10/2011 - 11:03 | 1865912 Peter K
Peter K's picture

Get a new text, or better yet.... a life:(

Thu, 11/10/2011 - 11:03 | 1865914 J 457
J 457's picture

Finally, I too can learn all the secrets and live a life of prosperity by following these simple 7 steps?  Wow.

Remember, theres no free lunch.  If it sounds too easy or too good to be true, it probably is.....

Thu, 11/10/2011 - 11:07 | 1865928 Dr. No
Dr. No's picture

You are giving us good doctors a bad name.

Thu, 11/10/2011 - 11:26 | 1865992 Dr. Engali
Dr. Engali's picture

I second that statement.

Thu, 11/10/2011 - 11:26 | 1865940 fuu
fuu's picture

Fuck off.


"Access Denied"


Thu, 11/10/2011 - 11:11 | 1865945 John Law Lives
John Law Lives's picture

SPAM gets junked here.

Thu, 11/10/2011 - 11:25 | 1865969 fuu
fuu's picture

Your boy Perry is getting smoked these days.

"I plan to vote for Rick Perry and celebrate when he is elected POTUS."

Thu, 11/10/2011 - 11:34 | 1866021 John Law Lives
John Law Lives's picture

Perry has looked totally inept in the debates, and he is running a terrible campaign. He looks beaten.

Yes, I said I believed Perry would win the GOP nomination. I believed that when he entered the race based upon his ability to raise money and the belief that the GOP Establishment would embrace him. Romney is the GOP's guy now.

The GOP Establishment is not going to embrace Ron Paul in the primaries no matter what the results of any straw polls are. They crush honest guys like him (just like they did to Pat Buchanan right after he won the New Hampshire Primary in 1996).

Thu, 11/10/2011 - 11:38 | 1866049 fuu
fuu's picture

Fair enough.

Thu, 11/10/2011 - 11:48 | 1866095 John Law Lives
John Law Lives's picture

The GOP Establishment picks who it wants to represent the party, and straw polls get tossed aside when the results don't "line up" with the GOP's wishes. Perry looks like a colossal bust, so Romney looks like their guy now. FWIW, I thought John McCain was a terrible GOP nominee for 2008. I thought George W. Bush was a lousy GOP president from 2000-2008. I thought Bob Dole was a lousy GOP candidate in 1996. Too bad we couldn't have had a viable 3rd party candidate who could win in November. I would love to see Democrats and Republicans both get egg on their faces if they both lost the White House to a 3rd party member.

Thu, 11/10/2011 - 11:48 | 1866091 Spastica Rex
Spastica Rex's picture

I mourn the loss of that beautiful hair and fetching smile. A cross of the best aspects of St. Reagan and St. Bush the Younger. No other Republican candidate looks so good and sounds so right. Ice-cream.

Thu, 11/10/2011 - 11:50 | 1866112 John Law Lives
John Law Lives's picture

Perry looks like a colossal bust. He could have had a better shot if he had avoided the debates. Now, he looks beaten.

Thu, 11/10/2011 - 11:22 | 1865973 DogSlime
DogSlime's picture

Wow!  So nice of you to share that.  Such an altruistic gesture.

Almost makes me feel guilty about suggesting that you fuck off and die.

If I want Snake Oil I'll buy a Python and stick it in the blender.

Thu, 11/10/2011 - 10:58 | 1865878 GeneMarchbanks
GeneMarchbanks's picture


Thu, 11/10/2011 - 10:58 | 1865879 rahbii
rahbii's picture

At least the Japanese know how to BANZAI!!! properly.  Europe + bankrupt = Euroupt.

Thu, 11/10/2011 - 10:58 | 1865881 lolmao500
lolmao500's picture



Thu, 11/10/2011 - 10:59 | 1865885 walküre
walküre's picture

Recent Bundesbank language is not accommodating and clear, precise to the point.

No gold leverage, no credit crunch - piss off y'all

Thu, 11/10/2011 - 11:00 | 1865896 Hansel
Hansel's picture

+1,000,000,000,000 for using poop in a headline.

Thu, 11/10/2011 - 11:04 | 1865921 HD
HD's picture

Well, I would've went with "craps", but I'm just a snob that way.

Thu, 11/10/2011 - 11:51 | 1866115 Raymond Reason
Raymond Reason's picture

One of the first words i learned in my native language, but rare to read in print.  Interesting.

Thu, 11/10/2011 - 11:00 | 1865900 Cone of Uncertainty
Cone of Uncertainty's picture

And now the S&P deflating like JoePed's legacy at Ped State Univershitty.

Thu, 11/10/2011 - 11:01 | 1865903 Josh Randall
Josh Randall's picture

One man's poop is another man's Tradition

Thu, 11/10/2011 - 11:43 | 1866074 Harlequin001
Harlequin001's picture

and Robotraders stock-in trade...

Thu, 11/10/2011 - 11:01 | 1865904 HD
HD's picture

Yea, the German's are into that sort of thing...

Thu, 11/10/2011 - 11:02 | 1865909 Mike2756
Thu, 11/10/2011 - 11:02 | 1865911 Dr. Engali
Dr. Engali's picture

I don't think you would see the word Poop on the New York Times. Add another reason why I don't read it.

Thu, 11/10/2011 - 11:06 | 1865917 DormRoom
DormRoom's picture

German CPI is already high.  More ECB printing, and Germans taxpayers will be paying through inflation (indirect socializing of banking problem).  Also, Fed printing very likely in 2012.  So you have ECB printing & Fed printing, and possibly BOJ printing.   Then we get global hyperinflation.


Central Banks need to back away, or the savings of the middle class will be wiped out!!!


make the big banks pay.  not us.


Thu, 11/10/2011 - 11:08 | 1865929 walküre
walküre's picture

Before that happens, data needs to deteriorate alot further.

Sorry, you will have to either starve yourself or see many of your neighbors starving before such an event.

Thu, 11/10/2011 - 11:21 | 1865962 DormRoom
DormRoom's picture

I wouldnt' ahve a problem with printing, if those reserves actually flowed through the economy via small business & entrepreneurs.  But it's often the case those reserves are used by the shadow banking industry to leverage, and speculate.  The big banks and plutocracy have all the upside, and if they fail, taxpayers have to backstop them.


That's an unfair game.  And a con.


ECB printing protects French & German banks that should have known better.

Thu, 11/10/2011 - 11:44 | 1866077 Melin
Melin's picture

You wouldn't have a problem printing currency units backed by nothing, but bemoan that the taxpayers are getting screwed.  Even if each taxpayer were provided a truckload of printed currency each, the tab for all that free money will ultimately be paid by the taxpayers' labor.  There's no free wealth.    

Thu, 11/10/2011 - 14:08 | 1866736 walküre
walküre's picture

There's no free wealth

Not for the 99%, that's for sure! The 1% have figured out how to screw all the people all the time! Sure, they let us have a few crumbs here and there, give us the illusion of wealth but when the shit hits the fan, when the hammer comes down the 1% will be OK as the rest of us will STARVE.

Eventually the middle class, which was designed to create a buffer between poverty and wealth, created as the bootlickers of the rich and famous so that the 1% can continue to rape and amass wealth through the ages.

Torch the whole lot and bring about some real change. Nobody should be ENTITLED to free wealth! Nobody!

Thu, 11/10/2011 - 11:34 | 1866041 Liquid Courage
Liquid Courage's picture

Central Banks need to back away, or the savings of the middle class will be wiped out!!!

Central Banks intend to hack away, until the savings of the middle class are wiped out!!!

A middle class can't be "Globalized", but a serfdom can.

Thu, 11/10/2011 - 11:20 | 1865920 Cone of Uncertainty
Cone of Uncertainty's picture

I looked at the headline quickly and thought it said:

French Spread Poop on Germany.

They must mean dog shit, since France is covered in it.

Thu, 11/10/2011 - 11:05 | 1865922 PaperBear
PaperBear's picture

So this is why gold/silver have been hit again.

Can everyone please stop it with the deflationary scaremongering.

Thu, 11/10/2011 - 11:08 | 1865930 Dr. Engali
Dr. Engali's picture

It's transitory.

Thu, 11/10/2011 - 11:49 | 1866099 Harlequin001
Harlequin001's picture

There are some 200 billion euros plus sitting on deposit at the ECB. Where are those euros going to go, and what happens to inflation when they do?

It isn't going to fall, that's for sure.

If it starts to go into gold then the CB's are screwed. Expect more of the same, which means even more cash on hold at the CB's and even greater inflationary potential the instant things look better, or the instant that things begin to look materially worse.

This will be very fast when it goes...

Thu, 11/10/2011 - 11:08 | 1865933 WonderDawg
WonderDawg's picture

Fade this morning's dead cat bounce...

Thu, 11/10/2011 - 11:08 | 1865935 Oswald Spengler
Oswald Spengler's picture

I have always enjoyed French spreads. Italian, not so much.

Thu, 11/10/2011 - 11:09 | 1865938 YesWeKahn
YesWeKahn's picture

People still buy stocks. The common thing I heared was that DOW dropped 400 points, time to buy ...


Thu, 11/10/2011 - 11:13 | 1865950 walküre
walküre's picture

Yes, retail investors are looking for "opportunities" ... (to be hosed once again).

That and American students rioting over a stupid football coach.

Things will need to get ALOT worse before fresh money gets deployed.

Thu, 11/10/2011 - 11:11 | 1865944 walküre
walküre's picture

Germany is withdrawing from Afghanistan.

Bullish! for German taxpayers

Thu, 11/10/2011 - 11:13 | 1865948 0cz
0cz's picture

1:  Print a shit load of money
2:  Inflation
3:  Let the ponzi collapse a little
4:  Deflation
5:  Repeat

Welcome to the new economic paradigm. 

Thu, 11/10/2011 - 11:20 | 1865965 kito
kito's picture

stop at number 4. the printing days are over

Thu, 11/10/2011 - 11:30 | 1866012 SheepDog-One
SheepDog-One's picture

Yep! The printing is over.

Thu, 11/10/2011 - 11:26 | 1865991 Falcon15
Falcon15's picture

That cycle is finite, and the world nears the end of the viability of that paradigm. All fiat systems are mathematically doomed to fail from the day they start. We all know this. Unfortunate for us, we live in a time where they all are so interconnected that when a big one fails, it pulls the rest down with them. Enter (or should I say exit) the Eurocrash. Russia's economic failure was insignificant, per se, in the grand scheme due to low exposure to their economy by other world economies. When the Eurotards finish their implosion, the aftershocks will decimate every single economy in the world. Once the Petrodollar implodes, we take the rest of the players with us. It is a race to oblivion. The only question is who is going to crash out first. It is just like betting on the fastest horse in the glue factory.


I'm short on paper (as in NO paper exposure here), long on phyzz, and preps. Pray for the best, prepare for the worst. Just kick back and watch the train wreck from a "safe distance".

Thu, 11/10/2011 - 11:45 | 1866083 0cz
0cz's picture

I don't see how physical will be useful in a complete global socioeconomic collapse.  Do you really think we will have a barter economy arise suddenly enough that Gold, Silver and Copper will be valuable?  I think most of the bartering will be direct food for ammo or ammo for fuel ect.... if a complete socioeconomic collapse manifests itself.  I know damn sure that if I have been eating cat food for 3 months I would rather have a 50lb bag of rice at the point compared to 50lb of silver.   I just don't think a barter economy that uses any type of monetary unit of exchange would arrise suddenly enough after a consumption economy collapse to make it worth it to own huge amounts of physical precious metals. 

Thu, 11/10/2011 - 12:13 | 1866239 Falcon15
Falcon15's picture

Two words: wealth transference. I purchased physical as my last preparation. Storage food set for years, ability to grow my own and ranch my own meat set years ago, near limitless water supply (unless the deep aquifer runs out), all other sundry items (cloth, tools, equipment, fuels, salt, sugar, etc.) already in place. I personally may not benefit, heck, my kids may not benefit from physical metals, but my family will. Eventually there will be a non-barter economy. When it comes to pass they (possibly even I) will have more than goods to trade for money. Call it insurance, call it foresight, call it insanity, but it is strictly a transportable, relatively lightweight, method to store and transfer wealth to the other side. You have to think LONG term when preparing for such things.

Thu, 11/10/2011 - 11:18 | 1865958 RobotTrader
RobotTrader's picture

Euro sovereign bonds taking a beating?

That's nothing.

Poor General Jim's net worth has been summarily wiped out as Tanzanian Royalty is getting "Bre-X'd" today.

"This Is It!!"


Thu, 11/10/2011 - 11:31 | 1866024 SheepDog-One
SheepDog-One's picture

Hey where were you all day yesterday RearViewTrader? You only come out under cover of green-ness? Chickenshit.

Thu, 11/10/2011 - 11:53 | 1866129 Spastica Rex
Spastica Rex's picture

He was busy getting a tune up on his breast implants.

Thu, 11/10/2011 - 11:18 | 1865959 Quokka
Quokka's picture

Regarding the dog shit in France, it's been a long-standing problem, going right back to the start of the 'Turd Republic' in 1870. Last time I was in Paris the motorbike 'pooper-scoopers' were on the job, so to speak, from dawn till dusk.  

Thu, 11/10/2011 - 12:14 | 1866242 Divine Wind
Divine Wind's picture

They are an endangered feces.

Thu, 11/10/2011 - 11:23 | 1865979 Archduke
Archduke's picture

an observation: don't expect germany to enter any kind of discussion about bailing out

europe on rememberance day weekend: the precedent was a hard pill to swallow.

this also makes friday a banking holiday so nothing will happen until next week.

Thu, 11/10/2011 - 11:25 | 1865986 fonzanoon
fonzanoon's picture

This is completely unrelated  but I think anytime someone reads any article touting why now is the time to buy mining stocks they should automatically punch themselves in the face until they are unconscious. This way they don't make the mistake of actually buying them. This is just my opinion.

Thu, 11/10/2011 - 12:48 | 1866367 PonziBeaver
PonziBeaver's picture

Agreed. Real stuff is better than toilet paper, but the ponzi games can last longer than you can stay solvent. Wake me up when the real economy comes back.

Thu, 11/10/2011 - 11:52 | 1866121 Jeremy Roenick
Jeremy Roenick's picture

As Triumph the insult comic dog would say...


The Euro, a fine currency....  For me to poop on!

Thu, 11/10/2011 - 11:55 | 1866141 Archduke
Archduke's picture

the euro is the worst currency europe has ever had... except for all the other ones.

Thu, 11/10/2011 - 11:57 | 1866156 lolmao500
lolmao500's picture

French 10 years bond yield in 2001? 5.75%.

Now? 3.44%

Still a lot of room.

Thu, 11/10/2011 - 12:36 | 1866316 viahj
viahj's picture

not exactly apples to apples there

debt to GPD 2001 ~57%

debt to GDP 2011 ~83%



Thu, 11/10/2011 - 12:42 | 1866328 Rip van Wrinkle
Rip van Wrinkle's picture

A lot more debt and a stagnant economy. Oh, and a populace who aren't afraid to crack a few skulls when they don't get what they want.

Thu, 11/10/2011 - 11:59 | 1866164 Reverse Apache ...
Reverse Apache Master's picture

Return Alsace-Lorraine to Germany and you might get a bailout.

Thu, 11/10/2011 - 13:05 | 1866476 Freewheelin Franklin
Freewheelin Franklin's picture

Heh, heh, heh, he said "poop".

Do NOT follow this link or you will be banned from the site!