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Risk Tumbles In Retaliation For Merkel Stubbornness
From the moment the words left Merkel's lips this morning that 'conditions weren't right' for euro-bonds and would send 'completely wrong signal', risk assets started to crack lower. Both ES and European markets are now well below yesterday's lows as EURUSD also turns red and sovereign spreads start to break wider (and bear flatten) again.
And European equity and credit markets are diving fast also...
As EURUSD takes out yesterday's lows...
And European sovereign risk spreads are drifting wider (with Portugal post-downgrade the standout). Belgium is +17bps.
And credit curves are generally flattening as they widen - not a great sign
Charts: Bloomberg
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Inverted nipples. Because boobies suck.
And Merkel will be kicked around the curb if she doesn't lick the boots of the ECB.
Tyler....
Still no news on the US congressional committe for the deficit reduction ???
Who cares.
Not like those dumbasses could find their ass with both hands let alone savings in a budget. It's like talking to my parents about avoiding any real estate investment in Florida. Their mindset is real estate is "safe" and it's always going up because that's all they've known.
The old men sitting on that committee don't understand the math behind the situation, nor do the people stick handling the actual economy. So expecting a group of people that should have retired 10 years ago is a waste of time, they don't have the operational and logistical support for the banking industry to do their job.
Everyone forgets, these idiots are elected at some point and usually for assnine reasoning (left or right...whatever that means anymore). You expect them to find a solution when all they know how to do is talk.
1 year accounting student could do a better job and at least we would be given answers. I would trust the trained mind of an accountant before someone that made their career from recycling oxygen on the taxpayers dime.
All of this can't end soon enough, with the Chinese and the Russians pissed at the US crapping on their business interests in MENA. I'll unfortunately probably get my dark wish.
Durden, you start to sound like Cramer, or perhaps.... *nah* that can't be... Cramer? -- IS IT YOU? Goddammm...
At least she's not prostrating herself and ceding sovereignty like the Irish. Those poor Irish bastards voted out the pro-Europe party, and got sold out by the "change" party.
Let's hope the Germans tell the ECB to fuck off forever.
nope, she caught the cock in her mouth.
It's the rest of the German population that wants nothing to do with her and her masters delusional messianic plans.
maybe she will kick ass instead. is she tough?
http://expose2.wordpress.com
The official thanksgiving bird for ZH'ers.
To all who are celebrating, eat, drink and be merry because tomorrow is Black Friday.
Thank you Tyler for all you do.
Damn lizzy, that is quality stuff. Happy Thanksgiving.
Picture posting, didn't know you had that ability! Color me jealous.
It's more of an "privilege." You can earn the same, yer know. Happy T-Day. GMB.
I hear ya mk. Time for a donation. Although I would enjoy the privilege, I'd quickly come to abuse it so... maybe it's better this way. Merry Turkey Day, mk.
Whoever voted down the bird should be shot.
all extremists should be shot.
But that makes you an extremist.
it's called irony...
I wrote that same thing down 25 years ago in a notebook and still laugh when I see it.
Probably Robotrader.
We each have our critics on here, even through we all understand we are all assholes, some of us just start the morning voting down and not reading.
It's the ZH equivalent of a troll.
priceless, i didnt see it coming, thought for sure merk would cave.
Happy Black Swan day to everyone who make this site the best financial comentary on the net, i am truly thankful.
This article reads like a children's book.
See credit drop.
See markets drop.
Merkle is sad.
See the black swan?
Merkle doesn't lke the black swan.
So sad for Merkle.
The entire Euro-Amerikan financial world reads like a children's story now...a kind of amalgam of Lil Red Riding Hood, Hansel&Gretel, Three Pigs, and Pinnocchio....
In fact, there's no better time than the present to see encapulsated the entire history of the big Ponzi mess which the USA has become in less than 6 side-splittin minutes, whilst sittin on your couch digestin the bird.
http://www.youtube.com/watch?v=V_8fZJhbApU ....D Dawg n Muskie in "Oil Tycooons" ...as the man says, Öils well that ends well!
32.37%
Event not listed30.00%
Large Natural Disaster e.g. hurricane, earthquake13.00%
Large commercial bank declares bankruptcy5.50%
Computer Error/Fat Finger4.50%
EU nation with large debt declares no intention to pay back debt3.20%
Commodity exchange announces cash only settlement2.00%
Sovereign Default2.00%
Central Bank announced QE/New easing programme and market reacts cynically1.80%
Street protests in Saudi Arabia drive up oil prices1.20%
Central Bank Gold Swap agreements leaked/exposed1.00%
Israel Bombs Iran and Iran reacts on the strait of Hormuz0.80%
Bernanke (or major finance figure) hit by a bus/becomes sick0.70%
Ratings agency sovereign downgrade0.60%
Rogue trader blamed0.60%
Large Terrorist attack0.50%
Protesters raid exchange/bank offices0.20%
Paul Krugman stages a fake alien invasion to stimulate economic growth, but it backfires0.02%
Everything is fine, Gold is in a bubble, Bernanke is a genius, no financial collapse0.01%
Total 100.00%
#2.
It was quiet the past couple of days.
http://en.vedur.is/earthquakes-and-volcanism/earthquakes/myrdalsjokull/#view=table
Hey Lizzy, its against the law to spray paint a duck...
Thanks for working on a holiday!!
Happy thanks giving!!
Thanks for zerohedge's dedication and professionalism!!
Tumbles Bitchez
Thousands of people, including women and children, are being illegally detained by rebel militias in Libya, according to a report by the Secretary-General of the United Nations. Many of the prisoners are suffering torture and systematic mistreatment while being held in private jails outside the control of the country's new government.
I'm sure Syria is itching for some Libyan-style liberation by NATO.
Sark can't get his diversion started fast enough...
Sark is the new Mussolini...
And yet the whole damn market is also treating the PM complex (those items with ZERO counterparty risk) as a risk asset. Unless, of course, we're only looking at the paper prices. I can't seem to find the physical gold and silver near the spot price recently. Anyone else experiencing that?
(I also bet my FAZ will be paying me again tomorrow.)
When the book gets sold PMs go too. Not to mention trying to buy this sector when the USD has a raging hardon doesn't make sense to me. I guess if you look at GLD on a monthly time chart it could explain the permabull mindset.
Angela is a stubborn old broad. The shorts thank you though.
+1 to what oh_bama said, great stuff this ZH is, really great.
Long tryptophan today.
ES opens flat tomorrow, and goes down from there.
When does the market adopt Merkel's perspective and rally on whatever she says?
If there is one thing I support Merkel on it is the Eurobond issue. We don't want more debt, we don't need more debt, and we cannot even service existing debt. And we sure as hell don't want to be tangled and bound together by each others debt. I hope she has the balls to tell the banksters and Eurocratic assclowns to go to hell and kill that criminally insane idea dead once and for all.
Absolutely. Why should the honest and hard-working support more banker-gangster prosperity, a thieves’ prosperity. “There’s a depression on you know.”
The TBTFs live off the debt Dolt rolls. They believe the world owes them a no-risk living.
For freedom to survive, it must shake the Dolts. It’s a time for anger, for patriotism, for Merkel to represent the German people and say, No!
The Eurobond hope has been a hoax from the start. Would take years to implement and much more equality in each nations finances
We're at that Wizard-of-Oz moment when the curtain is pulled back. This risk on bullshit was always a facade, an attempt to reflate asset prices. This scheme is subject to the laws of time and gravity and we are nearer the cliff and the eventual Fall. Good riddance.
Is black friday as worst as we can think?
I'm going to pick up some Groupon shares, I hear they are supposed to be 99% off
Tomorrow is going to be Black & Blue Friday.
Try Zero K Day
If I was gernmany I'd just saY; if there are eurobonds, there will be no germany in the euro
Sometimes it takes a woman to do a man's job.
Thats what the lesbian said.
Maybe they are sitting back wondering why the market is still floating as well. Maybe they are trying to tell the market, "we're going to let you be free, no more saves, crash to the floor" but no one wants to really listen.
I wish she wouldn't but in the end she'll crack, absolutely no doubt about it. But before that happens, the DAX has to drop at least another 40% and we have to see much more blood on the streets. No point not trying all the other useless 'solutions' before taking out the big (but as useless in the long-run) guns.
Will research my DAX support levels tonight. I would say 5000 is the limit for downward pressure.
obviously right before she turns on the presses we'll be in full financial armageddon mode and everyone will care more about liquidating anything and everything that is and isn't nailed down (and into a bidless market, i might add) and a bit less about support levels
Making political decisions based on what the DAX and the DOW will do is like asking which lunatic should runt the asylum. Fuck that. Let the markets crash. Big deal. The white shoe boys need to take a few hard lessons anyway.
it's all about what the Oldidorks tell her to do! each puppet is handed a script to follow, with a "we'll do to you as we did to JFK!"
Smithy, I am afraid you are right, Merk and the ECB with fold as soon as the real drops start happening. People can only take so much pain before they capitulate and give in. The screams from the constituency will likely force the weak, short-sighted bureaucrats to do whatever is necessary to stop the fall, although in the end it too will fail.
As a trader it hurts me more to watch myself lose a couple of hundred as opposed to watching the THOUSANDS tick away in numb disbelief. Anger rises as small-ish loses occur but complete disassociation happens as I realize I am are totally screwed. As these markets continue to calmly ratchet down, anger slowly builds to the point that people will finally rise up and say "enough"..."do whatever it takes". IMHO. Remember the cries from 2008/09.
Some day (soon?) the can will no longer be able to be kicked and their "policies" will no longer work. This will then cause the disassociation for the masses and they will be ripe for "the NEW conditioning" or else "revolution"....maybe both. A grand scheme, or two, will then be tried by the existing PTB, hopefully to fail (my wish), so that we the people can again bring fresh new ideas and new paradigms to the forefront in hopes of creating beauty from the ashes.
Angie is hot!
Angie is not.
because australia and canada are resource rich:
http://business.financialpost.com/2011/11/24/china-allows-yuan-trading-with-loonie/
And USA isn't?
USA produces more than twice the amount of oil that Canada produces.
http://en.wikipedia.org/wiki/List_of_countries_by_oil_production
With 10 times the people! So 1/5 th of what Canada does per person?
dang, unloaded my puts on Wednesday... I was thinking we were gonna make a little bounce.
Thanks Tyler. The service that you and the Z/H staff provide to us is simply beautiful.
This is the mother of all websites. The Ransquawk feed is totally awesome. Happy Holidays to all at Z/H!
Thanx ZH
Anyone know why google finance is down?
not down for me.
works for me now.
That woman is a ticking time bomb for shorts. I guess it is time to keep stops close before I end up with my shorts up my ass. The moment she says yes to Eurobonds it is risk on again.
As odd as it may seem to SOME, if all of this causes DEBT liquidations in Euroland, the value of the Euro could actually RISE and be worth MORE as the scramble for scarce cash increases. In that case the US dollar tumbles and our MARKETS RISE. Imagine that?
heh heh...
it is not 'Merkel Stubbornness' but finally some reason to respect her. I hope she stands.
Merkel... Why does that seem like such a strange name to me every time I hear it?
Merkel gettin' "pretty tied up" here
"i crack the whip
but that bitch is just insane
she's pretty tied up
hanging upside down
she's pretty tied up
and you can ride her"
Why they compare Merkel to Hitler?
Thanks for all the outstanding work & info ZH !!
Best website I have found.
To all my fight club brothers and sisters:
I hope you have a happy thanksgiving. That your travels are safe and that you have a great time with your loved ones. May God's blessings rain down on you all(Even those of you who are unbelievers ) :)
To Tyler and Crew
Thank you for all you do. All the truth telling and enlightenment. I can't thank you enough. Happy thanksgiving.
I second every word of that! VIVA!!! -- Sager
Just read Jame Rickards' "Currency Wars", what do the ZHers think of the SDR option coming about? Basically turn the IMF into THE global reserve bank which then issues SDRs to G20 members who then deposit them back into IMF so they can all leverage off of that. (If I understand it correctly anyway...)
At this rate we will have real wars before currency ones.
Brazilian finance minister Mantega said in September 2010 that a new currency war had begun. Accusing US and China. US because of QEx and China because of the peg to BernankeBux. Could very well lead to real shoot-em up.
A
Yeah, in spite of all the spending cuts I think defense stocks might be cheap
That 'solution' seems to be gaining momentum presently. After that fails we'll see a return to some sort of Atomic # 79 Standard according to Rickards; who is a figure looking more and more shady by the minute IMHO...
I don't know enough to argue with his conclusions. (He is leaning towards systemic collapse as the most likely.) But, I did notice no mention of Austrian theory at all when he does cover Keynes, Friedman, and the relativly new complexity theory.
Why do you say shady?
A
She's gone from suck to blow!
Probably I will be proved very wrong, but I don't think Merkel will ever agree to Euro-bonds, or anything else that looks potentially inflationary.
To be honest, this is *not* because she doesn't want to. She really believes in all this 'united Europe, no more war' stuff.
But she is not stupid, and knows perfectly well the German electorate guilt-explanation for WW2 that Hitler's rise was encouraged by the destruction of savings caused by the inter-war inflation.
Anything that looks like being weak on inflation means that she is removed from power - and remember her party has been losing elections for some time.
And she does not want to be removed from power.
It's not a noble motive, but it is an effective one.
Eurobonds won't work as economies are too divergent. Also Germany is already loaded to the gills with KFW, EIB, EBRD, IBRD, EFSF, and IMF!!!
Ya know in 196-ONE was the - Bay of PIGS - in Cuba. Followed in 196-TWO by the Cuban MISSILE CRISIS. The closest we were to a NewClear War (Other than a computer related glitch in the 1980s...and god knows when else)
So in 201-ONE we have an - Economic Bay of PIIGS. - To be followed by a 201-TWO MISSILE CRISIS.
Iran, Israel, Venezuela, North Korea, South Korea, US Missile Shield (Poland, Turkey, Spain), Russia, China, and other folks who can't resist such fun.
NewClear vision, baby.
dupe
http://www.archive.org/stream/elberthubbardssc005740mbp/elberthubbardssc...
Full text of "Elbert Hubbard S Scrap Book"
.
No man is in true health who can not
stand in the free air of heaven, with his
feet on God's free turf, and thank his
Creator for the simple luxury of physi-
cal existence. T. W. Higginson.
> *
I love tae man that can smile in trouble,
that can gather strength from distress,
and grow brave by reflection. 'T is the
business of little minds to shrink, but
he whose heart is firm, and whose con-
science approves his conduct, will pursue
his principles unto death.
Thomas Paine.
!
I do not value fortune. The love of labor
is my sheet-anchor. I work that I may
forget, and forgetting, I am happy.
Stephen Girard.
Page 223
What divisions, hatreds, miseries, and
dreadful physical and mental sufferings
have been produced by the names of
Confucius, Brahma, Juggernaut, Moses,
Jesus, Mohammed, Perm, Joe Smith,
Mother Lee, etc.!
If any of these could
have imagined that
their names should
cause the disunion,
hatred and suffer-
ing which poor de-
luded followers and
disciples have expe-
rienced, how these
good or well-inten-
tioned persons
wouldhave lament-
ed that they had
ever lived to im-
plant such dead-
ly hatred between
man and man, and
to cause so much
error and false feel-
ing between those
whose happiness
can arise only from universal union of
mind and co-operation in practise, neither
of which can any of the religions of the
earth, as now taught and practised, ever
produce. Robert Owen.
.
links ...
James Brown & Luciano Pavarotti - It's a Man's World
http://www.youtube.com/watch?v=Febr_t_qa9U
.
Tom Waits - "Satisfied"
http://www.youtube.com/watch?v=xHn_Kb4Dz40
.
http://jessescrossroadscafe.blogspot.com/
24 November 2011
Warren Pollock: Open Letter to the CME
Wednesday, November 23, 2011
Open Letter to the CME
To: Terrence A Duffy, Chairman CME Group
As illustrated by the failure of MF Global, I am of the opinion that, the CME has not met its basic obligations to the marketplace as a “public fiduciary.”
Our society depends on “basic finance” to provide “utility function” such as banking, hedging, insurance, and/or capital formation. Presently, we have an “innovative system” that degrades the integrity needed for “basic finance” to perform as required in a well-structured economy.
Worse yet, our “innovative” financial system impedes the effectiveness of the greater “physical economy.” The “physical economy,” consisting of all those individuals and entities tasked with meeting actual need. The "physical economy" consists of many of your customers including farmers, manufactures and electric companies.
Our society needs people working in the "physical world" to create jobs more desperately than it needs the continuity of the CME. Must we endure another market catastrophe to figure this out?
The 2008 bailouts defined “moral hazard,” as the socialization of losses due to over-leverage. MF Global consumers are currently subsidizing losses attributable to over-leverage and “innovation.” Perhaps, small percentage moves in speculation rationalized an internal choice between corporate survival and the sanctity of customer funds. Complexity has been specifically designed, by “modern finance” to intentionally allow over-leverage leading to out sized profits and reactively-subsidized losses.
The word, “theft,” comes to mind.
I believe that, the products traded by your member firms, at the CME exchange and elsewhere, well exceed the capacity of the monetary system to cover relatively small percentage losses or speculative miscalculations. Clearing OTC derivatives on an exchange does not, and will not, correct the problem.
With repeal of Glass Steagall, and the conversion of mutual companies to publicly traded entities, meaningful regulation has proved to be politically impossible to recapture. The solution therefore resides in simplification from “innovative” towards “basic” finance.
Presently, I would urge you to make MF Global customers whole as a perquisite to market reform towards a “utility function.” More than just the continuity of the CME may be at stake.
Warren E. Pollock
....
and ...
Should government pay off our debts?
http://news.bbc.co.uk/2/hi/programmes/hardtalk/default.stm
The debt monster is on the rampage. Germany doesn't want to get devoured. It's every nation for themselves, now.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
The debt monster is on the rampage. Germany doesn't want to get devoured. It's every nation for themselves, now.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
It looks like Angela Merkel is the last line of defense in the battle of people's democracies versus banksters' plutocracies/oligarchies. Hang in there Angela! It will be painful to everyone, but the only way to break up the banks and free us from our financial overlords is to bankrupt them and drive them out of business once and for all. Now, if only America could find such a leader with a solid steel spine!
The Roads To War And Economic Collapse by Paul Craig Roberts
Why would Germany, the only member of the EU with financial rectitude, not be able to sell 35% of its offerings of 10-year bonds? Germany has no debt problems, and its economy is expected by EU and US authorities to bear the lion’s share of the bailout of the EU member countries that do lack financial rectitude.
I suspect that the answer to this question is that the failure of the German government’s bond auction was orchestrated by the US, by EU authorities, especially the European Central Bank, and private banks in order to punish Germany for obstructing the purchase of EU member countries’ sovereign debt by the European Central Bank .
The German government has been trying to defend the terms on which Germany gave up control over its own currency and joined the EU. By insisting on the legality of the agreements, Germany has been standing in the way of the ECB behaving as the US Federal Reserve and monetizing the debt of member governments.
From the beginning the EU was a conspiracy against Germany. If Germany remains in the EU, Germany will be destroyed. It will lose its political and economic sovereignty, and its economy will be bled in behalf of the fiscally irresponsible members of the EU.
If Greeks will not submit to the tyranny, why should Germans?
Top Economist: Germany Must Agree To Eurobonds
EU exec wants tight euro zone budgets control, opens
Happy Thanksgiving!
Angela Dragonkiller, go,go, go.