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Meanwhile In "Everything Is Fixed" Europe
Presenting the chart of Greek 1 Year bonds. Looking at this alone, one might get the feeling that not all that much is fixed in Europe, whose weakest link is about to file for bankruptcy any minute. 100% yield next.
Yield:
And Price:
Charts: Bloomberg
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Those charts could make you car sick.
The Myth of Sisyphus comes to mind. Good to see all is well again, MOPE is really on top of their game here.
Yeah, it is just a flesh wound...
Everything fixed, bitchez!
Or not...
The writing on the wall is Merkel’s recent spanking in elections. Simply, I highly doubt that Germans will accept the institution of an organization that requires 133% of their GDP to bail out every PIG under the sun. They will elect other leaders, when given the opportunity — and those leaders may not be interested in German participation inanything European. Or more worryingly, they may be interested in bringing Europe under German dominion.
http://azizonomics.com/2011/09/07/german-constitutional-court-approves-greek-bailouts/
German dominion my %(§"!
For a better insight read this well-written article by the Telegraphs Ambrose Evans-Pritchard, International Business Editor:
"For fifty years Germany has invariably stumped up the money required to keep Europe’s Project on track, responding to unreasonable demands with grace and generosity.It bankrolled French farmers through the Common Agricultural Policy, that disguised tithe for war reparations. It then bankrolled Spanish farmers as well.
It funded each new wave of EU expansion, though reeling itself from the €60bn annual cost of its own reunification. It gave up the cherished D-Mark, the anchor of German economic stability.
We are so used to German self-abnegation for the sake of Europe that we can hardly imagine any other state of affairs. But the escalating protest against EMU bail-outs by Germany’s key insistutions go beyond the banalities of money. The fight is over German democracy itself.
Those who talk of a Fourth Reich or believe that EMU is a "German racket to take over the whole of Europe" – as Nicholas Ridley famously put it -- have the matter backwards.
Germans allowed their country to be tied down with "silken chords". They are the most reliable defenders of freedom and parliamentary prerogative in Europe, precisely because they know their history."
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/874038...
That's hardly my point. My point is that some day, some day soon, Germany will sicken off its role as "Deutschland, Deutschland, Unter Alles". What these awful bailouts are doing to the German people is like poking a dog with a stick. Eventually, the poor dog will bite back, if only to stop being poked and prodded. And the last time Germany bit back after being poked and prodded (Versailles) was not pretty.
Okay, then I misunderstood your intention. Because that is a valid point and as a German I am worried about this too. I want to live in an open and democratic society. A society that values responsibility and that respects justice.
That's why today was a very bitter day. Sorry when I overreacted. Your point is indeed a valid one. All I can say about this - I don't want to see a Fourth Reich (I would rather die to defend a democratic republic) - I don't want to see Germany controlling other European countries - and I think many of my countrymen feel the same.
Yes, it was not pretty. It was a disaster for everyone in Europe. We've come a long way from there. The European idea was a good thing. But the EU is undemocratic like a shadow government and unworthy to represent 500 million citizens; the EURO does not bring peace to Europe.
It hurts me to see that we're basically all in the same situation today. The Western World needs a democratic rebirth. And I think that ISLAND was the first nation that did the right thing.
Here in the UK I sympathise with you totally and support German democracy, and want this obscene bailout-crash-bailout circus to end so that people of the world can live in peace and freedom.
O Captain! My Captain!
*stands on desk*
The political parties are as useless in Germany as they are in America. The entire Western elite is in open, Jew-bought globalist treason against its own race and civilization. The only solution will be HardRight populism, mass uprisings by the working and middle classes, and civil war against banksters, plutocrats, and apparatchiks, a.k.a. "public employees".
Man, those charts . . . there's Olli Rehn's "durable declining path", right there.
In fact, that's a path and a half, that is.
Unbelievable.
How is this possible without comment from the Greek PM / EU / ECB?
Anyone any idea how much 1 year is outstanding?
Agreed. What the hell is going on, where is everyone at? Is there something here I'm unaware of that makes this not a catastrophe? Is there a backup plan I don't know about? Jesus.
This reminds me of the contractor in Cube acknowledging the reality of the death trap they are imprisoned in: "There is no conspiracy. Nobody is in charge. It's a headless blunder operating under the illusion of a master plan."
Cube ........... Great movie.
http://www.youtube.com/watch?v=MY5PkidV1cM
agreed, Jesus is the backup plan.
7 day chart, leaves 3 days left
So does that mean there is an arbitrage opportunity with Intrade right now who puts the chance of Greek default at 32.6%
http://www.youtube.com/user/POpatriot?feature=mhee
I will not settle for anything less than 110% yield. You have to adjust for inflation you know.
There's junk bonds... and then there are joke bonds. I rate Greek debt ZZZ+ for exceptional zaniness.
Their bonds are the only ones written in the Comic Sans font.
I thought it was wingdings?
Outlook positive?
Upgrade coming soon???
Moody's just released this statement: Greek debt has been upgraded to AAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
nothing to see here folks...move along..
At those prices they'll need to sell a WHOLE lot of them.
How broken everything really is. They show the chart of gold down over 50 bucks on the idiot channel but I can guarantee you will not see the chart above on cnbc. The truth, nope, not today.
Remember, 100+ dumps at these levels just part of the process. I don't trade this market and have 0 stocks except, well, you know what we have.
A while ago, I explained to somebody about the situation of Europe and the Abyss that we're going to fall in.
Yesterday he came to me and said: DID YOU SEE IT ON TELEVISION?
I said: What?
Him: THEY SAID WE WON'T HAVE A RECESSION IN EUROPE AND THAT EVERYTHING IS UNDER CONTROL
Me: You really believe they can fix everything in 1 hour? Didn't you listen to everything I explained to you?
Him: Hey, that's what they said on TV. And he left without saying anything else.
Stuff like that can make a man like me crazy you know. But than again, I just said to myself: Fuck e'm!
TV. Is their god.
That is where the "news " comes from
I told my neighbor 2 months ago that the post office was going to be broke in 3 months.
I saw the story on zero hedge about the post office being broke last month. And my tv said yesterday the post office will be broke next month.
It makes it on TV eventually. So he'll get to watch the reality as it happens without any prep time or capability. Ensuring he'll make the wrong decisions the whole time.
I heard a local talk show talking about the PO on the radio yesterday. It was BIG news. I checked ZH and nothing about it.
Then I remembered that ZH had the story a month ago.
Thanks again Tyler!
pods
I guess the yield could go over 100%....
What would the yeild be on the bond sold to pay the premium on the bond that yields 110%...
No use as you won't get a penny of your money back
We're gonna be rich.
Do you live in an urban area? By September, 2013, you'll be lucky to be among the Living....never mind "rich".
...And the TED Spread continues to flatline at bull market levels. Interesting how there's no actual risk in the system right now.
Meanwhile US markets are leaping over the starting gate to eagerly erase all losses from yesterday upon open, so the QE that has been baked in to every confirmation of recession/depression since DOW 9,800 is D.O.A.
Then what?
She takes her last breath.
Maybe just start running the markets up based upon QE4 rumors!
It's like Apple. iPhone 5 next month, iPhone 6 for Black Friday, iPhone 7 in time for Christmas, and iPhone 8 before the New Year. That would send their stock to infinity and beyond!
Violent up gaps are violent sell signals. Not to worry.
I think the markets are clearly signaling QE3 is DOA.
Buckle up..
Duck and cover.
Bert the turtle?
http://www.youtube.com/watch?v=IKqXu-5jw60
Today we are celebrating yet another failed attempt to form a gubbermint in Belgium. Stocks up 3% and everything insolvent except for Greece is rallying. To sum it up: Normal day at the glue factory, everybody's excited abt the new batch of industrial glue to sniff.
Even worse, how is this possible with not even a mention from cramer and his cronies. An entire country imploding and this is Not news. Now you know why when I have this stupid channel on, 95% of the time, mute button is on.
Rick Santelli, Diana Glick and maybe one or two others, otherwise, nada.
It's the new European theme park, "Debt World", opening in Athens first. It's a wild ride and the tickets go up in price hourly.
$300 billion jobs program....hey Gubment why not just send every taxpayer in the US a check for about $15,000 or so, instead of this constant utter bullshit central planning?
I'd vote for you several more times if I could. If they just sent $5K checks to the 75 million americans who actually PAY taxes, it would do more to sustain the economy than these stupid 6 month jobs that cost $1 Mill each to "create" and only pay the worker about $30K, the rest goes to line pockets along the way....
We're just plebes in their centrally planned world though, our input is not required.
Just one question... "Who's going to pay for it"?
Print Bitchez, hahahahah!
How would Bechtel benefit from that???
Shhhhh all is well! Everything mega green...until the collapse.
Is that first chart correct? Serious trouble doesn't do that chart justice, just to state the obvious.
And all markets taking off to the moon, just like that yield!
Then,why is this happening?
www.bloomberg.com/apps/quote?ticker=ASE:IND
Even in October 2008 there were up days. I have to constantly remind myself that nothing goes straight up or down. Difficult with huge gaps up and down every day.
So this is what it looks like when bond go bidless. Nice.
And gold tumbles :-) $1450 here we come I hope.
Amundi AM going to suffer a black swan :(SOCGEN + CREDIT AGRICOLE) MUTUAL FUNDS- Blocking Redeemtions in VAR Funds Counterparty risk soaring; Estimate 18.100 Mn underwater....with internal haircuts.
Ready for France downgrade event
Societe Generale working with French Authority to avoid intervention.
-BNP fixing non domestic assets (at 4-6 euros per share)
-ABN AMRO dealing for French Assets.
Regards,
Ahhh that old chestnut.. Whoops.
As always: pictures say more than thousand words!
Hmmm, maybe 1,750. 1,450 don't think so. That would be manna from heaven. At that level all my extra confetti would be gone. But, we shall see. Don't care about the next inning or two. I am looking for the End game. Soon, near you.
Who needs that trash now? Investors are dumping Greek bonds in order to buy more valuable ASSets like Italian, Irish and Portugal bonds, isn't that clear enough? Business as usual in short.
wonder what the ecb's ggb buy and grit teeth pnl looks like??
Math quiz -
(A) Country X has an interest on government debt 93% annually, how many % of GDP can debt be for an economy that grows 0.46% annually average over the last 10 years?
(B) Given that the last three years has seen negative GDP growth of -2%, -4.5%, -3%, how does your answer to (A) change?
(C) Suppose that within one calendar week, the interest rate for debt service rises by 3300 bps. Enlist three possible causes and how these may change your answer to (B).
The market will rally on almost any news. Major bad news barely results in a down day. That makes shorting too nerve wracking. It's likely German courts setting the tone, which makes no sense that they'll make evermore bailouts likely, backstoped by 100% of German's GDP, which rallies the DAX almost up to Labor Day levels. And, we also have BO selling the dream--yet again--tomorrow; must also be good for the market becasue Obama is so small businesss friendly and who cares about deficts....and then there's Benny not too far down the road.
Since markets aren't allowed to fall almost no one is afraid of stocks. A 15% decline results in more stimulus of one kind or another. Meanwhile the algo-HFT robots make sure the markets don't get too "volatile" for our prosac community.
Honestly, there needs to be a much larger grass roots effort to just take all your chips off the table, pull out most working captial from banks, and most certainly excess capital, buy physical, and watch the circus unravel. At this point, that is the only true market. Everything else is rigged.
A quick question to the community. Yesterday there was an auction for greek bonds and it was sold completely with a yield of 4.80 for a 26 week t-Bill. Why would anyone buy it when the current open market yields are much higher? I would assume that the risk factor remains the same for old and new bonds. Am I missing something? Please enlighten me,
It's a "deal" between the Greek government and Greek banks.
Just to calm people and prevent a bank run.
The one year bond yield is hidden by greek media.
The report says that 30% of it was bought by "foreign" investors. I wonder who they are..
MSN headline says "Obama job plan lifts futures"
No plan was announced though, just a number of $300 billion. I guess Obama gets that money from his 'stash'.
The Italian yields are down .......seems like ECB has given up on Greece and just concentrating on Italy
Greece has reached the point of ludicrous speed (Yes, they've gone Plaid). Even in this country the plastic interest rates only reach 33-35%. (Wonder if Greece could get a Capital One card). Even da Boss must be pulling his hair out trying to figure out which Mob has got the Greek Cartel under it's thumb. It's Usury I tell ya, Usury!
Surprise Surpise, the German Constitutional Court has OK'd the bailouts, as long as the German Parliament now has the final say, not the Eurozone.
Germany now has complete control of the EFSF. This was a coup, as we have been saying since the start.
http://germanywatch.blogspot.com/2011/09/german-court-gives-germany-control-of.html
"Germany now has complete control of the EFSF. "
.........we should not forget thats its not a WAR between nations....even when the media tries to paint such a PICTURE...the more number of people understand the International political structure the better. ....everyone should know that most of these countries are controlled by the same group........
Hope their teaser rate adjustable mortgages don't reset off the one year Gov!
How much sort term Greek debt is the ECB holding?
How much are the Greek banks holding?
Gold/silver sure are being hammered by the paper sellers - $1,808/oz and $40.80/oz.
Of course this is transitory but the swings sure are violent to give people whiplash.
The price chart looks like the chart of some of the tech stocks of companies that sold "Death Spiral Preferreds" in the late 1990's.
IMF 100 billion, fed window must be close to a trillion
Buy one, get two.
Isnt that nice? </sarc>
see, here's your problem - those charts are upside down. If you turn them over, everything looks fine.
Cant' you see how unethical it is to simply flip the chart over that way? You just need to stand on your head while reading it...
Don't you people know that the entire state of the global economy changes daily. On Friday the entire globe can be in the worst depression in history and by Monday it can be in the greatest expansion in history only to fall back to recession on Tuesday.
All the while corporate profits will remain strong and P/Es in triple digits are justified because of growth. Jobs dont matter because just the talk of jobs is enough to generate massive income for workers to justify share prices.
Gold is worthless because billionares say so even if they own gold because they want you to buy stocks and get rich like them.
5% daily moves in indivdual stocks is completely normal and putting 6 month price targets double the current price of a P/E 100 stock is normal and in no way can be a bubble valuation.
Bubble valuations are correct and Dow 15,000, Nasdaq 5000, S&P 2500 are the proper levels for the stock market. Every drop has been unjustified and just the result of bears that don't know any better standing in the way of progress.
Guys, don't panic! Don't be so hard on yourself! This"bounce" will be sold, we all know that! Get Physical and fuck the rest! Or buy some puts, just for the heck of it :)))!
But according to CNBC stocks soaring on hopes of more bailout? This is bullish for lemmings heading towards cliff face..
the fact that the Euro is still holding above 1.40 against the dollar is nothing short of amazing.
Did you know that Angela Merkel has got a special deal
with Ben Bernanke so the European Financial Stability Facility (EFSF)
can borrow at Zero (0%) Rates ? ;)
Guys, days like this is just TPTB throwing wild Hail Mary's. The poor suckers that buy into it I almost feel sorry for. Remember the largest weekly gain for no reason whatsoever following the week of June 30th, the day POMO ended? Yeah, right. How'd that one work out?
Remember the key reversal as the markets were tanking during Jackson Hole this year? All these days have proven time and time again that they are nothing more than suckers rallies. I hope silver drops to the low thirties again--I will buy more. Just BTFD in precious. Take your money out of TBTF and Wall Street's poker game. If you haven't figured out who the sucker is by now.....then you've got shiteyes.
That's it! I cannot stand it anymore! I'm getting some greek bonds.
[IMG]http://goldswitzerland.com/wp-content/uploads/2011/08/angela_europe-milk...[/IMG]
That's just where we are up to now
I'd hit it!
Yeah, I know. But I still think "the Apocalypse of John" is a scam. Don't I ?
Don't be fooled to think that if the SPD wins the elections in Germany Merkel's bailout course will come to an end! The European left is even much more pro Euro/EU than the so called conservatives (if thats possible). The whole EU concoction was hatched during the 80's and 90's when just about every European country was socialist controlled.
The end of the Euro will be one cataclysmic, grand finale. All you can do from this point on is sit back and embrace the horror.
These charts make me want to buy some greek bonds.
Meanwhile: http://www.bloomberg.com/apps/quote?ticker=GGGB10YR:IND
There goes 20 on the 10yr.