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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YesWeKahn's picture

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

jdelano's picture

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

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. 

Harlequin001's picture

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

just sayin'...

SheepDog-One's picture

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

WestVillageIdiot's picture

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



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:)

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. 

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

JoBob's picture

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

WestVillageIdiot's picture

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

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?

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.

Ronaldo's picture

RoboTrader is our Troll!

Peter K's picture

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

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.....

Dr. No's picture

You are giving us good doctors a bad name.

Dr. Engali's picture

I second that statement.

fuu's picture

Fuck off.


"Access Denied"


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."

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).

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.

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.

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.

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.

rahbii's picture

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

lolmao500's picture



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

Hansel's picture

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

HD's picture

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

Raymond Reason's picture

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

Cone of Uncertainty's picture

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

Josh Randall's picture

One man's poop is another man's Tradition

Harlequin001's picture

and Robotraders stock-in trade...

HD's picture

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

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.

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.


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.

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.

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.    

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!

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.

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.

PaperBear's picture

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

Can everyone please stop it with the deflationary scaremongering.

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...