Spain's Unlucky Number Seven

Tyler Durden's picture

The Spanish downgrade aftermath: SPG at 7%. Well, not quite 7%.... 6.998% as of 5am Eastern. A new record. We give it a few hours before 7% is breached once the news hits that Moody's has cut Spain's three biggest banks by 1-3 notches as explained yesterday. Also, CDS at a record 611 bps is not helping either.


Comment viewing options

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

When Yahoo! finance leads with this story you know its bad. Can't feed the sheeple too much bad news or they will get upset.

smlbizman's picture

i think it is safe to say now that it is "spitaly".....the new doublemint twins

GeneMarchbanks's picture

Ah, CDS. The more things change...

Ghordius's picture

...the more they stay the same. BAN CDS. Or better, ban them again, since they were illegal for three generations.

On a lighter note, the European Parliament wants to cap banker bonuses 1:1 to their salaries. I'm already looking forward to MEP Nigel Farage's speech regarding the matter. Perhaps we'll see the UK setting a separate law regarding this? They can, but of course they usually prefer to blame the evil EU parliament...

In case you have missed some remarks on him, here:

Back to Spain: the conservative government of Spain does not want to let their banks fail. Goes Ireland's way instead of Iceland's way. A pity, really...

jover's picture

Those devious bond vigilantes!

Winston Churchill's picture

Forget Spain.

Look at the jump in Italian bonds.

fonzannoon's picture

Look at the futures not give a rats ass

Ungaro's picture

Just wait a couple of hours, Fonz. That is how long it will take to go from "It's priced in" to "OMG" and "WTF".

Gief Gold Plox's picture

Does the ECB have an inverse stop-loss possition on GSPG10YR?

while( yld >= 0.07 ) buy();

Ghordius's picture

not all the time, mostly it's european banks (super-charged by LTRO) that think the price is right (old-fashioned market makers) and yes, the Italian Public, which, in the old days, used to own 90% of Italy's debt...

Josephine29's picture

As well we have seen numbers today which show that house prices are continuing to fall in Spain and are falling even more qucikly than before! Take a look at this.

Something troubling here
If we look at the figures we see that the rate of fall of the house price index has been accelerating. We have a hint of this in the way that they have fallen 5% in the first quarter of 2012 which is a lot faster rate than a 12.6% year on year one. If we look back we see that the acceleration of the fall has been building. The numbers below represent annual falls and are quarterly figures beginning from the first quarter of 2011.

 -4.1%; -6.8%; -7.4%; -11.2%; and now -12.6%
You do not need a degree in statistics to spot the trend in play here! But here we have something which official views/forecasts will never give you. If we look at “ground zero” for the Spanish crisis then according to the latest data it is not only getting worse but it is doing so at an accelerating rate.

I wonder how all the apologists will try to spin this news...

Alpacanio's picture

We have shared good times and bad times, and had a few laughs along the way at ZH. I now suggest we all head out to our bugout locals and bunkers now. Get an early start on traffic.


See ya on the other side!

Winston Churchill's picture

Think your going off a little premaurely there.

September or October is my best guess.unless

TPTB get us into war sooner.

stocktivity's picture

even a bit longer...probably until after the election. No matter who wins, we're in deep shit by Christmas. The market will start tanking about 6 months before this....which puts us back to...YIKES!!!....

buckethead's picture

I am not yet prepared... Still poor and in the rat-race. Good prospects for this year....


I need 6 to 10 more months.


May God have mercy on my soul.

Poor Grogman's picture



Relax dude, what happens happens

If you aint prepared yet  at least you have plenty of company..

The Swedish Chef's picture

So Rajoy says it´s the banks that are being bailed out, not Spain itself... Cue true and undeniable Spanish bail out in 1%, 2%, 3%...

The Swedish Chef's picture

So Rajoy says it´s the banks that are being bailed out, not Spain itself... Cue true and undeniable Spanish bail out in 1%, 2%, 3%...

ThatThatcher's picture

......................welcome back to the market ECB

Croatian Patriot's picture

New rating for Italy, Portugal, Spain, Greece and what a hack Croatia is "mediterranean  junk"

Gief Gold Plox's picture

I was quite surprised recently when so many of your countrymen voted to join the sinking ship they call the EU. On the other hand, I can just image how much truth trickles down from the main stream media.

Croatian Patriot's picture

Really? People from my country are sheeps. They do not understand anything.  Maybe the EU fall apart until summer next year :)


Mister Ponzi's picture

Again: usually, it takes a couple of days or even weeks until sovereign-induced corporate downgrades are announced.

RazvanM's picture

In Romania almost nobody have any idea of what is going on. They look at Greek disaster as it is a far away and disconnected thing. And the politicians... pfff, they spend like there is no tomorow.

Grand Supercycle's picture

Rally warning continues...

Despite stockbears with their pre-election jitters, SPX choppy bullish daily & USDX bearish daily charts strengthen.
Significant equity / EURUSD upside & USDX retracement ahead.