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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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Mon, 11/14/2011 - 11:46 | 1875664 trampstamp
trampstamp's picture

drop this cow already!

Mon, 11/14/2011 - 11:53 | 1875698 He_Who Carried ...
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.

Mon, 11/14/2011 - 12:00 | 1875729 SheepDog-One
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?

Mon, 11/14/2011 - 12:30 | 1875822 He_Who Carried ...
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.

Mon, 11/14/2011 - 12:05 | 1875749 gojam
gojam's picture

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

Tyler is quoting the Europtimists

Mon, 11/14/2011 - 12:46 | 1875877 Schmuck Raker
Schmuck Raker's picture


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

Mon, 11/14/2011 - 12:14 | 1875769 HamyWanger
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. 

Mon, 11/14/2011 - 12:31 | 1875828 Ronaldo
Ronaldo's picture

Yeah, that sheep avatar picture has to go!

Mon, 11/14/2011 - 12:32 | 1875831 He_Who Carried ...
He_Who Carried The Sun's picture

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

Mon, 11/14/2011 - 12:51 | 1875894 Abitdodgie
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.

Mon, 11/14/2011 - 13:24 | 1876001 Bollixed
Bollixed's picture

Me thinks yee protesteth too much.

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

Mon, 11/14/2011 - 15:23 | 1876419 Tsunami Wave
Tsunami Wave's picture

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

Mon, 11/14/2011 - 12:21 | 1875784 Dick Darlington
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?

Mon, 11/14/2011 - 12:55 | 1875899 He_Who Carried ...
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!

Mon, 11/14/2011 - 11:59 | 1875728 YesWeKahn
YesWeKahn's picture

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

Mon, 11/14/2011 - 11:46 | 1875666 Hansel
Hansel's picture

Europe is fixed!

Mon, 11/14/2011 - 11:56 | 1875713 Deadpool
Deadpool's picture

fixed like a neutered dog...

Mon, 11/14/2011 - 12:21 | 1875785 Manthong
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?

Mon, 11/14/2011 - 13:15 | 1875966 Financial_Guard...
Financial_Guardian_Angel's picture

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

There, fixed it for ya...

Mon, 11/14/2011 - 11:48 | 1875673 slewie the pi-rat
slewie the pi-rat's picture

bigger bazookas, BiCheZ!


Mon, 11/14/2011 - 11:49 | 1875675 cbaba
cbaba's picture


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



Mon, 11/14/2011 - 11:51 | 1875685 jesse livermoore
jesse livermoore's picture

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

Mon, 11/14/2011 - 11:55 | 1875707 citrine
citrine's picture

plus 1 more. brilliant.

Mon, 11/14/2011 - 12:36 | 1875841 Slim
Slim's picture

Nicely done!

Mon, 11/14/2011 - 12:50 | 1875889 Schmuck Raker
Schmuck Raker's picture

You would have to find him first...

I nominate Geithner.

Mon, 11/14/2011 - 12:55 | 1875900 Savvy
Savvy's picture

DSK had the charges against him dropped...

Mon, 11/14/2011 - 11:50 | 1875679 Peter K
Peter K's picture

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

Mon, 11/14/2011 - 11:50 | 1875680 Sudden Debt
Sudden Debt's picture



One could look at those rates and say:

The Glass is half full


The Glass is half empty

I say:


Mon, 11/14/2011 - 11:55 | 1875709 Fips_OnTheSpot
Fips_OnTheSpot's picture


Mon, 11/14/2011 - 12:22 | 1875791 metastar
metastar's picture


Mon, 11/14/2011 - 12:36 | 1875843 mick_richfield
mick_richfield's picture

Compromise: Absinthe

Mon, 11/14/2011 - 11:51 | 1875684 SheepDog-One
SheepDog-One's picture

Squire! Fetch me my unicorn and sack of Hopium!

Mon, 11/14/2011 - 12:23 | 1875794 Fips_OnTheSpot
Fips_OnTheSpot's picture

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

Mon, 11/14/2011 - 11:52 | 1875687 Thought criminal
Thought criminal's picture

What a fucken rollercoaster.

Mon, 11/14/2011 - 11:52 | 1875689 GerritB
GerritB's picture

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

Mon, 11/14/2011 - 12:23 | 1875795 Alea Iactaest
Alea Iactaest's picture

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

Mon, 11/14/2011 - 11:52 | 1875691 CrashisOptimistic
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?

Mon, 11/14/2011 - 11:57 | 1875722 DonutBoy
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.

Mon, 11/14/2011 - 11:53 | 1875696 citrine
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.

Mon, 11/14/2011 - 12:52 | 1875895 Watson
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...

Mon, 11/14/2011 - 11:56 | 1875700 Ronaldo
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.


Mon, 11/14/2011 - 12:02 | 1875735 Caviar Emptor
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!

Mon, 11/14/2011 - 11:54 | 1875705 wcvarones
wcvarones's picture

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

Mon, 11/14/2011 - 11:57 | 1875716 AngryGerman
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


Mon, 11/14/2011 - 11:57 | 1875717 trampstamp
trampstamp's picture

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

Mon, 11/14/2011 - 12:13 | 1875767 paulie
paulie's picture

You are a genius.

Mon, 11/14/2011 - 13:05 | 1875942 jwthomps
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.

Mon, 11/14/2011 - 11:55 | 1875708 Fips_OnTheSpot
Fips_OnTheSpot's picture

The fix is where x^2 hits infinity

Mon, 11/14/2011 - 11:57 | 1875718 YesWeKahn
YesWeKahn's picture

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

Mon, 11/14/2011 - 11:57 | 1875719 TooBearish
TooBearish's picture

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

Mon, 11/14/2011 - 11:57 | 1875720 SheepDog-One
SheepDog-One's picture

WELL its great to see their #1 central bankster mandate, 'Zee price ztabileetee' is working so spectacularly.

Mon, 11/14/2011 - 12:00 | 1875730 junkyardjack
junkyardjack's picture

World War 3 coming up.

Mon, 11/14/2011 - 12:23 | 1875796 DogSlime
DogSlime's picture

but will it be bio or nuclear?

God, I hope it's nuclear.  I'd rather have a firework display than choke on my own phlegm/pus/diarrhoea.

Mon, 11/14/2011 - 12:00 | 1875731 Village Smithy
Village Smithy's picture

Watched TBTF last night on HBO. In it Paul Giamatti who is playing Ben Bernanke says to Paulson "I guess carrying a bazooka is not enough, you have to use it". He was referring to the 750 Billion bailout fund. In that light re-shuffling the cast in the EU puppet show doesn't seem very bazooka like.

Mon, 11/14/2011 - 12:00 | 1875732 Dr. Engali
Dr. Engali's picture

Need to put in a few more Bilderberg goons. That will fix it.

Mon, 11/14/2011 - 12:02 | 1875740 aleph0
aleph0's picture

LOL .. they're looking for new Venues anyway .. now that a Swiss Canton banned them.

Mon, 11/14/2011 - 12:04 | 1875747 common_sense
common_sense's picture


Mon, 11/14/2011 - 12:09 | 1875753 Caviar Emptor
Caviar Emptor's picture

It's like some big banksters "invited" a crowd to dinner at the priciest restaurant. Then at one point after dinner the bankster disappeares before the check arrives. Unfortunately all the guests were beggars at the banquet, and nobody can even cover their own charge. But they're all trying to keep from looking nervous, thinking that the person next to them is a bigger chump then they are and will put some cash on the table.....That's the story of securitization

Mon, 11/14/2011 - 12:07 | 1875756 edmondantes
edmondantes's picture

Larry Summers for President of France

I can't think of a surer way to sink France and the Eurozone than to appoint this total and utter prig to a position of influence

Mon, 11/14/2011 - 12:10 | 1875759 paulie
paulie's picture

For all those who thought Berlusconi was the problem.

Mon, 11/14/2011 - 12:22 | 1875789 DogSlime
DogSlime's picture

I don't understand why people would still be taking out CDS's on European debt.  The Greek fiasco has demonstrated that they will never, ever trigger.  Greece, Italy, France... hell, all of Europe could tell all bond holders to eat shit and die and it STILL wouldn't constitute a credit event.

Whoever is selling these CDS's must be pissing themselves laughing...

...or am I missing something?

Mon, 11/14/2011 - 12:27 | 1875812 clones2
clones2's picture

Yeah - I dont get it as well...  Same thought here - if Greece didn't trigger... what will?

Who would possibly be dumb enough to "protect" investements with a CDS on Euro debt at this point, if they're not going to be paid?

Mon, 11/14/2011 - 12:30 | 1875806 pufferfish
Mon, 11/14/2011 - 12:38 | 1875849 mn2
mn2's picture

its all euro

Mon, 11/14/2011 - 16:08 | 1875885 Village Smithy
Village Smithy's picture

It seems unbelieveably foolish to me to continue to place so much faith in the abilities of these technocrats. They put us in this mess with their one dimensional obsession with computers and algorythms. The dire condition of the world's finances doesn't scare me nearly as much as the fact that over the past few decades our political systems have made it impossible for a person of any substance at all to rise in political ranks. As a result we are desperate for true leadership and it seems there is no such thing anywhere on the horizon.

Mon, 11/14/2011 - 12:49 | 1875888 FranSix
FranSix's picture

There is, after all, a political crisis in Belgium.  If anyone can figure out what it is, get back to me.

Mon, 11/14/2011 - 13:00 | 1875928 walküre
walküre's picture

Sogar Die Goldmänner können es nicht FIXEN?

Mon, 11/14/2011 - 13:22 | 1875994 Beatscape
Beatscape's picture

"...sub-prime is contained..."

- Treasury Secretary Henry Paulson

Mon, 11/14/2011 - 14:41 | 1876236 ze_canto
ze_canto's picture

Legally, could the collective governments of Europe legislate existing CDS out of existence?  Contracts are broken with buyers getting back their paid premiums?  


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