Market Reaction To German 'TARP' Vote

Tyler Durden's picture

A very small initial rally has given way to more significant selling now as credit and equity markets pull back, EUR drops, and Bunds have rallied 1-2bps. Selling the news makes some sense but is hardly confidence-inspiring...especially given sub financials (light blue) move - though we are sure we will flip-flop for another or two yet.

UPDATE: Bunds at low yields of day now

Perhaps the phrase - we're gonna need a bigger boat  - will become more popular vernacular today.

Chart: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GeneMarchbanks's picture

Euro-TARP as dead as OT2...

We're gonna need more debt.

GetZeeGold's picture


You use the word debt like it's a bad thing.


MsCreant's picture

Price Stabellitee.

Humon Actevitee.

equity_momo's picture

We're gonna need a bigger tube of KY.

Jayda1850's picture

We have the biggest boat available, its called the Titanic.

achmachat's picture

I am relieved that you chose the boat they say even God can't sink.

Jayda1850's picture

Maybe The Bismark would be more apropos.

Oh regional Indian's picture

or perhaps the ARK? 

Noooooooooooo  Ahhhhhhhhhhhhhhhhhhhhhh........

Might as well enjoy it all eh?

Billary Caught! Now Waught?

Snidley Whipsnae's picture

"its called the Titanic."

A perfect lifeboat for all TBTF azz hats and their lap dog Pols... load all fiat into the cargo holds.


GetZeeGold's picture


But...but...but....the gold lifeboat has been sinking.

Don't go near the gold's sinking.


P.S. China says thank you.


Snidley Whipsnae's picture

The gold lifeboat isn't sinking... It's being rocked by central banks via their bullion banks selling into the market... usually at odd hours when few bids exist for their dumping of paper a loss.

I'm still in the lifeboat and welcome the departure of those lightening the boat. As I look around I notice that the Chinese, Indians, and Mid Easteners are still rowing.

So, some fools that become nervous because the lifeboat is rocking decide to jump out of the boat and swim for a distant green island seen on the horizon.

Said island may be inhabited by head hunters and cannibals...or, perhaps it's just an island made of inedible dollars.

Captain Planet's picture

Unfortunatly, all the Too Fat to Swim get lifeboats, while the rest get closed in to the hull and drown with the boat. 

If only the house plebs would make the fatsows fend for themselves. 

optimator's picture

How about the biggest boat ever made, ever.  The Mayflower!

(It must be the biggest, look at everyone's relatives that came over on it.)

"Deutschland unter alles"

wang's picture
wang (not verified) Sep 29, 2011 5:58 AM

seems the Germans continue in their all talk no action as Merkel retains support of her coalition and did not need the oppostiion to pass the legislation

AnAnonymous's picture

Made me laugh.

What opposition? Checking the result of the vote shows no opposition, only a few mavericks and the majority of the rest working to pretend an opposition.

US citizens are tiring as they can not provide better propaganda which has been debunked over and over again.

There is no discontinuity between a people and their government in the US style of government.

The institutions are empowered by The People. Representatives exercize institutional power.

No opposition. Only the pretense of it.

Germans do support the current string of policies.

US world order.

nmewn's picture

So they decided to destroy the publics medium of exchange (and thus their labor) some more.

I'm shocked ;-) 

Snidley Whipsnae's picture

Hugo Salinas Price is discussing events in Europe...

"Wolfgang Münchau in the FT of September 26 writes in the editorial page: “I have never seen Europe’s politicians as scared as I saw them in Washington last week”.

Europe’s politicians have good reason to be scared stiff; if the euro cracks up and the European Monetary Union collapses then the viability of the Welfare State is in question. Without the perpetual deficits that the Welfare State entails, how will it be possible to maintain the populations of Europe in their illusion of perpetual untrammeled bliss? If the peoples of Europe are to wake up one morning to find themselves once again in the real world, where survival means hard work and personal privations, the political upheaval will be gigantic. This is why the politicians are scared.

If the continued existence of the Welfare State is in question, then so is the Democratic State, because Democracy – or what passes for it - can only be simulated where the voting population is constantly appeased with ever greater hand-outs from the Welfare State, the Siamese twin of Democracy.

If the euro cracks up and the European Monetary Union goes the way of all fiat we can expect a political convulsion of the first order in Europe as the ingrained illusions vanish. Perhaps that would not be a bad thing. Bill Bonner has written, with his usual wry humor, “Give Collapse a Chance”."

AnAnonymous's picture

Without the perpetual deficits that the Welfare State entails,


No. Expansion is the cause of the perpetual deficits.

There were expansionists before the welfare state and they have this in common: they bid future gains against present consumption.

The upheaval is to be caused by the revelation that the good days of expansion are over for the West because no more room to expand.

Snidley Whipsnae's picture

"No. Expansion is the cause of the perpetual deficits."

Expanison in the West in the last ~ 30 yrs has occured in the FIRE sector and very little elsewhere... Productivity gains have gone to the top in manufacturing and the FIRE sector...unless one counts a string of bubbles that collapsed... or edible Ipads. The US has been in a lock-down economy where, other than mom/pop start ups, real genius has been discouraged by the status quo, anti competition of multi national corps using near slave labor.

Enormous expansion could occur in the West if the nanny state were to be eliminated, sensible regulation of the FIRE sector were reinstated and enforced, and the Fed and it's TBTF banksters were to be disbanded.

You are selling short the inventiveness of the human enterpreneur when you make flat statements like 'no more expansion is possible'... No one forsaw Newton, Maxwell, Einstein, Marconi, and multitudes of less well knowns that created expansion.

To say otherwise is to mimic Francis Fukuyama and his rediculous 'End of History'...

AnAnonymous's picture

Too much to tackle.

Fukuyama? Dont know that guy. But I suspect he is a US citizen therefore a propagandist.

I strongly doubt that I share commonality with a US propagandist in regards of expansion.

Cutting down the 'nanny state' (the US has had a nanny state since inception) is just gimmick to pretend expansion.

Well know trick by expansionists. Expansionists expand onto an exterior. When the exterior is saturated, the only room left to expand is the interior.

No tremendous expansion. Only eating oneself.

Inventiveness? But inventiveness has been one of the major causes behind the current fiasco. Never been short of new ideas to consume vainly the environment etc...

BigJim's picture

Yawn. More zero-sum economic worldview from AnAnonymous.

AnAnonymous's picture

Since when economists in this US driven world admit zero sum games?

Ah, yes, they do, just like their US citizen fellows do. When the world is supposedly bailed out of their US hard earned tax payer money or something like that...

The US is not the solution, the US is the problem.

Schmuck Raker's picture


FIRE economy, a segment of the stock market: Finance, Insurance, Real Estate...TY Wikipedia.

LawsofPhysics's picture

While I appreciate the optimism Snidley, you still need a cheap energy source that has minimal risk to drive all that "innovation" and "real genius".  It takes a tremendous amount of energy and capital to get any technology from the discovery bench to the market.  Then you must consider production and labor costs.  With the real black hole liquidity trap in place and no more cheap oil, REAL margins are compressed about as far as they will go.  I say we simply let it all crash.  At least then we find out who is really worth a shit and then maybe compensation (in whatever form that may be) will find its way back to those folks.

BigJim's picture

Energy IS still cheap, at least relatively speaking, in historical terms of what your $ will buy energy-wise.

I have yet to see a convincing argument made that we are past the point of further economic expansion... providing, of course, we dismantle the state-imposed parasitism of our financial 'industry'

AnAnonymous's picture

What evidence?

Call of evidences by US citizens is just an opportunity for them to display their fantaisist leaning: facts are only facts when US citizens believe them to be facts.

So what?

The rise of the US was made through the rise of the State. Calling for its dismantlement as a parasitic adjunction is itself evidence of slower expansion rate.

But hey, US citizens are like that: addicted to cheap propaganda. They spurt propaganda and a few lines down, the debunking of it.

US citizens can not align two cogent ideads these days. The result of the US world order.

BigJim's picture

Tethering Germans fiscally to Greeks is essentially the same as using taxation to redistribute value from the productive to the unproductive within a country. It's just intra-national socialism... and will have the same destructive long-term effects on both the Germans and the Greeks that socialism has on the inhabitants of any country that operates such wealth transfer schemes within its own borders.

Whether the majority of German taxpayers feel they have such a duty towards their Southern neighbours remains to be seen. Whether the German political class gives a damn about voter sentiment also remains to be seen.

youngman's picture

I wonder if many German tourists are visiting Greece now...or in the future....a good statistic to find if feel the pulse of the Germans

Snidley Whipsnae's picture

"I wonder if many German tourists are visiting Greece now..."

Maybe those Germans that drive an armored Mercedes?

Brings to mind old WW2 film footage of Germans parachuting into Crete. :)

ZeroPower's picture

CDS for WE sovereigns wider as well.

Fips_OnTheSpot's picture

As it was ruled out, I already hear the "we want leverage, we want leverage" chorus...

wang's picture

adding leverage is a foregone conclusion, of course there will be much wringing of hands and gnashing of teeth before getting there but it is just theatrics, like in America the EZ political class is bought and paid for

wasn't it just a couple of months ago that Finland was the great hope for defeating the bailout class and yet they were first off the mark yesterday in supporting the expanded EFSF

$2T leveraged fund - bank on it


new post from London Banker

wombats's picture

Now that bonuses at the German banks have been saved, maybe the world can now turn its attention to saving  bonuses at BofA...and  C, JPM, GS. 

Arie L Ultra's picture

I heard this morning that Greece needs a other 100 billion Euros. Let the fight begin

fishface's picture

and no life boats...

Spigot's picture

Wow! Not much thinking going on in Germany, by the pols. Or maybe they were given "the talk"...

Destruction here we come.

The Swedish Chef's picture

Handful of morons/criminals sold out their country, the people didn´t.


I really, really hope this is going to cost Merkel her job.

BigJim's picture

What does she care? She's already secured a post-politics sinecure in some European bank as a 'consultant' or 'non-executive director'

RunningMan's picture

I am shocked the Germans approved the bailout. I thought them a more prudent people than that. Seems like everyone is in on the wealth transfer game.  I still don't know how markets will go anywhere on reaction to this, as until the money is freed up, who will pay to prop the market? Not I, sir. Not I.


Jayda1850's picture

The German people are more prudent than this. The German politicians, on the other hand, are too busy sucking off the corrupt banksters to give two shits about the German people.

MarkD's picture

Insert "American" instead of "German".

Don't we approve every bailout when threatened with ,  If you don't......... we will collapse.

Incubus's picture

yes; we will collapse and that's what we need.  


Either we don't "collapse" and we'll be slaves at the hands of banksters and other financial parasites, fighting their wars, and working our lives away for them, or we say "NO U" to them and their bullshit and we figure out what the fuck life without corporate-sponsorship is like. 

Just make sure to keep religious nuts from trying to fill the influence-void that corporations would leave, and I'd think we'd be on the way to a pretty decent society, and building lives with some meaning that aren't designed around greatest profits for the executives of some corporation, or their friends in government. 



AnAnonymous's picture

I am shocked the Germans approved the bailout.


Either a very naive person. Or a bad actor.

I opt for number two.

GetZeeGold's picture


The majority of Germans didn't vote for jack.


AnAnonymous's picture

The majority of Germans approve of their government's actions.

JOYFUL's picture

"I opt for number two"


And a fine job you do at it!

In your sneering invective against everything "American" here today, you remind me of none so much as Roger Fritz in his role as "Triebig"(Cross of Iron 1977)...

so much depth, so little emotion -'s a Latin thang... Now piss off!

The Swedish Chef's picture

Yeah, I noted that, Tyler, I noted that... Hoped that Stockholm OMX30 would go apeshit but no. Closing longs at 920 and take lunch. It´s been a decent morning, let´s see if NY can rescue this sinking ship.

wang's picture
wang (not verified) Sep 29, 2011 6:11 AM

El Erian telegraphed this yesterday on Bloomberg


MFL8240's picture

The fuckin clown show is never ending.  Next we will see Mr. Bernanke decide to unilaterally bail out Greece.  That my friend is coming because the real exposure to a default is his comrades in the banking cartel on Wall Street.

BigJim's picture

Yes, I've been waiting for that announcement too.

In effect, though, it's already been done - remember all those swap lines? Remember most of QEII went to European banks? US bailing out Greece('s creditors) in all but name.