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Hope Fades In European Financials

Tyler Durden's picture




 

90 minutes after rumors of forced mergers and recaps and an easing of collateral requirements by the ECB, SocGen (among other French banks) has retraced more than 75% of the gains and senior financial credit spreads have weakened to their widest levels intraday. It certainly feels like any strength is being used to reduce exposure further - even as we wait for Bernanke's Bonanza this afternoon...

SocGen Stock Price

and Senior Financial Credit Spreads are widening...

ES has also just lost overnight lows.

Charts: Bloomberg

UPDATE: SocGen now trades lower than pre-rumor levels

 

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Wed, 09/21/2011 - 10:57 | 1692376 wang (not verified)
wang's picture

Hope Fades

should read False Hope

 

in other news Roubini hanging with Gore

http://twitter.com/#!/Nouriel

Wed, 09/21/2011 - 10:55 | 1692380 Quintus
Quintus's picture

In reality, there never was any real hope.

Wed, 09/21/2011 - 10:56 | 1692386 Hansel
Hansel's picture

<---- Gold gets hammered at 2:15 p.m. no matter what Ben says

<---- Gold doesn't get hammered at 2:15

Informal poll.  I'm curious what other people think.

Wed, 09/21/2011 - 11:26 | 1692533 Panafrican Funk...
Panafrican Funktron Robot's picture

If the Bernank "disappoints", I see gold maintaining it's current range of 1700 - 1900.  If he doesn't, we'll be above 2K in short order.

Wed, 09/21/2011 - 11:31 | 1692554 mayhem_korner
mayhem_korner's picture

I think there are too many preset traps on gold for it to move too high in the immediate term.  If Benocide cranks up the presses, the flock will move to equities as directed.  It'll take a few weeks for the euphoria to retrace, and then gold marches forward.

But I think Ben is going to hold his carrots until another day. 

Wed, 09/21/2011 - 10:59 | 1692388 Dick Darlington
Dick Darlington's picture

While everybody is focused on the french banks the momo around spain has allowed them some breathing room. Of course that's false but the "markets" are what they are nowdays. But just to remind this is the "new normal" in Spain despite the propaganda that they have their house in order. Wonder when the "market" will wake up and start sniffing the conditions in spanish cajas. Lights out!

http://www.rte.ie/news/2011/0921/albacete.html

Wed, 09/21/2011 - 10:58 | 1692393 Peter K
Peter K's picture

Itallian 10yr settled on the highs :) Next leg up could be the clincher ;)

Wed, 09/21/2011 - 11:00 | 1692400 TruthInSunshine
TruthInSunshine's picture

Good news: These 10 nations have formed a 'Super Pool' of funds, with which to rescue not only European Banks, but the Eurozone, itself.

The crisis is now officially resolved with their soon to be released plan and press conference.

       
1. Burundi 2. Congo, Democratic Republic of the   3. Liberia   4. Zimbabwe   5. Eritrea   6. Somalia   7. Central African Republic   8. Niger   9. Malawi   10. Afghanistan
Wed, 09/21/2011 - 11:04 | 1692416 Dick Darlington
Dick Darlington's picture

I heard Zimbabwe is providing expert level consultation to the man with the beard. Trichet wanted that too but he was told the consultation was only for major league printers.

Wed, 09/21/2011 - 11:16 | 1692480 HoardeBilly
HoardeBilly's picture

And all they need is your personal bank acount number and they will do some QE for you! No, Really!

Wed, 09/21/2011 - 11:38 | 1692587 GtownSLV
GtownSLV's picture

I have a Zimbabwe $100 Trillion bill in my desk drawer. I'd be willing help bail out the Italian's and trade it for a Ferrari, okay a fiat?, it's gotta buy a Vespa right?, a pair a shoes, bottle of wine?, a nice torrone chocalate bar?....ugh

Wed, 09/21/2011 - 11:24 | 1692518 Nothing To See Here
Nothing To See Here's picture

I also heard that North Korea would be the lender of last resort to this remarkable pool, so all is well and safe.

Wed, 09/21/2011 - 11:37 | 1692578 Spirit Of Truth
Spirit Of Truth's picture

Word is NK does a bit of $ printing itself.  Just wants to help out I guess...

Wed, 09/21/2011 - 11:03 | 1692407 oa92000
oa92000's picture

friend gave some gold last week, I do not what to do with it?? cannot eat gold?

Wed, 09/21/2011 - 11:08 | 1692431 Quintus
Quintus's picture

Spend it on some grammar lessons?

Wed, 09/21/2011 - 11:17 | 1692481 falak pema
falak pema's picture

with a pretty italian girl who has left Berlu's patronage as he is now off the blue pill and put on of forced austerity.

Wed, 09/21/2011 - 11:50 | 1692637 Honey Badger
Honey Badger's picture

Go exchange your gold for cash and feast on that.  I've heard the $20 bills are the best tasting.

Wed, 09/21/2011 - 11:03 | 1692408 Fips_OnTheSpot
Fips_OnTheSpot's picture

DAX down 2.4% on "no news" - already some leakage from TheBernank behind the scenes?

Wed, 09/21/2011 - 11:21 | 1692501 HelluvaEngineer
HelluvaEngineer's picture

Warning:  The Twist may lead to anal leakage.

Wed, 09/21/2011 - 11:03 | 1692410 adr
adr's picture

Well oil liked the news that supplies increased, now trading up almost $1.50 from the low this morning.

I sure like how rigged the commodity market has become. Anyone have a guess to why we got a $1 vertical spike?

Wed, 09/21/2011 - 11:06 | 1692422 spongeBOB
spongeBOB's picture

EUR/USD just took off .

Wed, 09/21/2011 - 11:14 | 1692470 falak pema
falak pema's picture

french banks moving up on rumors of recapitalisation.

Wed, 09/21/2011 - 11:05 | 1692420 BrocilyBeef
BrocilyBeef's picture

looking for silver below $38 to buy some more. Want ASE and buff rounds.

Wed, 09/21/2011 - 11:32 | 1692559 mayhem_korner
mayhem_korner's picture

Premiums aren't bad on 90% (junk), too.  I've been stacking rolls of Ben Franklins for a couple months now.

Wed, 09/21/2011 - 11:34 | 1692568 Hephasteus
Hephasteus's picture

I'd worry more about getting it for under 42. 38 dollar silver was mid july. With solar ponzi's imploding it should be going down but since they have thief contracts to come in and scoop it up it's still not making it to market. AL Gore won't shut up about global warming and HAARP is till humming away.

Silver's fucked on a epoch scale.

Wed, 09/21/2011 - 11:45 | 1692621 Herd Redirectio...
Herd Redirection Committee's picture

Please elaborate.

Thu, 09/22/2011 - 19:54 | 1699347 Hephasteus
Hephasteus's picture

You might be able to catch a 38 in this chop. But I'd be careful. Gold won't plummet again when equities crash. But solar panels and green fucktards have huge amounts of silver. They will try to control the green groups to push it on everyone. It will work but they don't want it to work "right" they want to control the tech and use manufacturing procedures that just don't goddamn cut it from a strategy perspective. This is going to cause huge trouble and they will be forced to dump. The banks will send in agents to pick it up and try to dump it on the market. But if you catch a 38 it'll be from a 60 drop not a 45 drop. There has to be huge wipe outs for that. As it is now it's simply controlled creap.

The problem with that is if it goes controlled creap then green dipshits will be left with little inventory and no control over silver prices. Which makes the stupid shit they want to do THAT much harder. It'll either be a hanging or a hamstringing. So be careful. Hold till you are hungry.

Wed, 09/21/2011 - 11:34 | 1692571 LookingWithAmazement
LookingWithAmazement's picture

I think Bernanke will buy euros and dump freshly printed $$$ in Europe. That's his juke-in-a-box they were talking 'bout lately.

Wed, 09/21/2011 - 11:45 | 1692620 Fips_OnTheSpot
Fips_OnTheSpot's picture

Europe closed - soar.

 

New acronym: BTFEC :)

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