So Much For "Europe Is Fixed": French, Spanish, And Belgian CDS Hit New Records

Tyler Durden's picture

It seems that rotating a few pawns at the top is not quite the bazooka everyone expected it to be last week. Case in point: CDS in the core European trio of France, Spain and Belgium just hit new all time wides. But before anyone blames evil CDS speculators, it is notable that CDS is significantly outperforming cash bonds. And since everything that can be said about Europe's ongoing implosion has been said already, the only question is which Goldman "advisor" will replace Sarko in a few weeks.


and cash bonds:

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trampstamp's picture

drop this cow already!

He_Who Carried The Sun's picture

Who said it was fixed, "Tyler Durden"? You?

It won't be "fixed" b4 they've come up with a credible plan for a fiscal union. Please move on, I am getting rather bored by all this hysteria.

SheepDog-One's picture

Nice butt-in line at the front post.

Not sure what its supposed to mean though. 'Who said it was fixed'? Um, damn near everyone?

He_Who Carried The Sun's picture

Those who said it was fixed were kidding you as well? You gotta be silly.
C'mon guys, this mountain of debt took over 20 years to accumulate and won't vanish over just one weekend. Its all politics and they either decide to print or to save at last. Simple tactics but with very different result.

I am just scalping these markets. I am not investing at all right now.

gojam's picture

Note: "Europe is fixed" is in speech marks, generally indicating a quotation.

Tyler is quoting the Europtimists

Schmuck Raker's picture


"Hat-racks should be seen, and not heard."

HamyWanger's picture

I have just reported this URL to several Child Protection Associations.

It is NOT acceptable to have such bestial pornographic content displayed for all to see. 

Ronaldo's picture

Yeah, that sheep avatar picture has to go!

He_Who Carried The Sun's picture

I've just called the nurse. They'll operate your brain tomorrow, funny git.

Abitdodgie's picture

For a child they are big breasts, if you don,t like it or it offends you please don,t come on the site or move to penn state for a more hands on experiance.

Bollixed's picture

Me thinks yee protesteth too much.

Probably while you're wanging your own hamy...

Tsunami Wave's picture

Out of coincidence Hamy, were you also the one who notified the Southern Poverty Law Center too?

Dick Darlington's picture

It will be one helluva fiscal union. Half of the countries trapped in the economic prison called euro are already INSOLVENT, all of them are far from balanced budgets. They all need to BORROW MORE ALL THE TIME. Even Germany ran constat budget deficits throughout the golden debt bubble decade. So how do u see fiscal union among those countries turning shit to gold? Lemme guess, by borrowing more?

He_Who Carried The Sun's picture

I am too much of a pessimist. I don't see an alternative to tightening the union. Else its back for everyone to their petty chiefdom which would be very destabilizing and dangerous. Is democracy failing "the west"? Not if they get it done this time. Everybody knows that. There is too much at stake!

YesWeKahn's picture

unless a bear out of the wood to eat the cow.

Hansel's picture

Europe is fixed!

Deadpool's picture

fixed like a neutered dog...

Manthong's picture

Am I missing something?

Since credit events are elective on the part of the PTB, isn't it insane to buy ANY CDS or sovereign debt anymore?

Financial_Guardian_Angel's picture

fixed like a neutered dog with only one ball chopped off...

There, fixed it for ya...

slewie the pi-rat's picture

bigger bazookas, BiCheZ!


cbaba's picture


"the only question is which Goldman "advisor" will replace Sarko in a few weeks"



jesse livermoore's picture

Corzine is available.......................

Schmuck Raker's picture

You would have to find him first...

I nominate Geithner.

Savvy's picture

DSK had the charges against him dropped...

Peter K's picture

Did JCT get an offer from GS yet? He might be available:)

Sudden Debt's picture



One could look at those rates and say:

The Glass is half full


The Glass is half empty

I say:


SheepDog-One's picture

Squire! Fetch me my unicorn and sack of Hopium!

Fips_OnTheSpot's picture

there's big ships lurking around (psst, recession) - why not load those w/ hopium instead of some 'sack'. THINK BIGGER!

Thought criminal's picture

What a fucken rollercoaster.

GerritB's picture

The European Fucking Stability Farce (EFSF) will fix all!

Alea Iactaest's picture

I thought it was European Fiasco Stability Farce, err European Farce Stability Fiasco, umm nevermind. I like yours better.

CrashisOptimistic's picture

Why would these become more valuable?  Swaps were recently demonstrated to be of zero value, via decree.

Why would anyone think these will be immune to eventual decree?

DonutBoy's picture

Yeah - good question.  Who bids on them now?  The only bids I would expect are companies buying back one's they sold on the fear that the ISDA has a change of heart.

citrine's picture

I wonder, if Angela Merkel's statement that Europe "could be living through it's toughest hour since World War Two" should be considered as "anything is possible", i.e. Germany abandoning the common currency.

Watson's picture

The average German citizen would be delighted to see the return of the DEM.
It's not as if he was ever given a vote about losing it in the first place...

Ronaldo's picture

I can't take it anymore.  I have no more popcorn and my sides hurt from laughing so much. 

CNBS folks talk about how all is well, the economy is improving, bullish markets somewhere, fast money to be made, crisis averted, blah blah blah, Who pays these people to be on TV.  I barely even watch anymore, just wanted to catch a glimpse of Becky and a couple other hotties.


Caviar Emptor's picture

Who pays these people? The whole show is a "send your money in now" infomercial for Wall Street. Back in the day CNBS talked in billions daily from off the fence. That's who pays. You!

wcvarones's picture

What kind of mongoloid moron is still buying CDSs after ISDA declared that a default is not a default?

AngryGerman's picture

they said voluntary just meant that you can decide yourself whether you want to trade in your existing bonds for lowers or wait for your cds to pay off...


although at the moment it actually still appears as if greece rather will go for broke than eternal infusion by europe


trampstamp's picture

May be a different story with Italy and Spain up to bat. Greece was small change.

jwthomps's picture

I think you are correct in the real world, but the CDSs enhance their balance sheet and make their company appear solvent.

Fips_OnTheSpot's picture

The fix is where x^2 hits infinity

YesWeKahn's picture

Tyler, this is obvious. These countries all need a new government of goldman sacks.

TooBearish's picture

Its country specific... - BTFD ESZ chart looks great!