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Spanish Bond Yields Hit 2012 Highs As Merkel Dismisses Eurobonds
Spanish bond yields have leaked slowly higher all day but the very recent news from Merkel, talking on the G-20, that:
- *MERKEL SAYS WRONG TIME TO DISCUSS POSSIBILITY OF EURO BONDS
- *MERKEL SAYS STATES MUST GIVE UP SOME SOVEREIGNTY TO EU
- *MERKEL SAYS JOINT LIABILITIES IN EUROPE REQUIRE JOINT CONTROLS
- *MERKEL SAYS INVESTORS' INTEREST NOT IDENTICAL WITH EUROPE'S (Subordination?)
has pushed Spanish CDS and bonds to they highest closing levels for the year and just shy of intraday post-EU record wides. For context, these are 15 year high yields at 6.67% and while they 'feel' dramatically high, Spanish bond yields were over 12% in 1995 (but the current spread to Bunds is dramatically wider) highlighting why focusing on the spread not the yield is now critical. 5Y CDS are holding above 600bps again (record wides) and 10Y Spanish spreads (over Bunds) are at 527bps - near all-time (pre- and post-Euro) wides. The last two days have seen a dramatic surge of 38bps from Friday's close and 65bps from Monday's open as Goldman's 'long' short-dated Spanish bond bet continues to Corzine the Muppets.
Spanish 10Y yields at 2012 highs
and longer-term yields are well off record levels...
but this is because Bunds were far higher in yield then as this chart shows, we are at all-time record high spreads for Spanish debt...
Chart: Bloomberg
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Merkel : lying biatch.
If it comes to a vote, they gonna vote to screw the German people.
But Merkel is going for the ``big`` screwing...
Aka... the united states of Europe where banksters controlled Germany rules it... and people get angry at Germany, not the banksters.
Hell it worked with WW1 and WW2... so why not WW3??
*All your budget, gold, and grandchildren's productivity are belong to us
This is the KEY....but it will never happen....never....so now the chips will just fall....there is no saving it anymore...its saving your friends and yourself...lots of fiat will be printed and it will all end up in someones pocket at the end....some will be winners or what I would call a thief.....others will lose all of it...what I would call an angry majority.....the winners will fly away with all the goods...
oh baby, you KNOW this is what they are playing for right? One EU to rule them all. :) USofEU
Merkel says wrong time to dicuss...
"...Entitlements to support".
What about the bases!?
By way of metaphor: do you let the bank holding your car loan tell you how to drive?
They do tell you to carry full insurance.
So the ECB should force member countries to buy CDS on their own debt to cover the notional that they issue in any year that they fail to comply with the Maastrich 3%/60% limits?
In the rear-view mirror, it doesn't seem that crazy -- the problem is that those CDS would likely have been written by domestic banks (who were all AAA+wesome-rated at the time) making the counterparty risk issue paramount.
With car insurance, you can generally be confident that your car accident won't bankrupt the insurance company. No so with the SovDebt CDS market.
Shared risk requires a pool with some kind of distribution to wheel over the troublemakers but this ship of fools is too skewed.
I mean, you think if there's a political union and a bank union there won't be bailouts from Germany to Greece?? Ah! Hell it'll be like in the US... for example, California ``bailing out`` Alabama... transfer of money...
So if Germans accept this BS to ``solve`` everything, they will give bailouts AND lose their political sovereignty...
So go ahead fools, get in this mess even more than you are now...
Aka... the united states of Europe where banksters controlled Germany rules it... and people get angry at Germany, not the banksters.
Hell it worked with WW1 and WW2... so why not WW3??
________________________
It has to be US citizen Merkel. Could not be US citizen Germans. Cant be US citizen middle class, cant be the Germans and it can not doubly be the US citizen german middle class.
And wait for posts to explain that actually Merkel did not state that, but a low rank in her government or stuff like that.
Will there ever be a day when the politicians, squids, and govt. hacks ever do something right, for the people. So sad. And gold just moved up 15 dollars, Huh?
Oh. Now I understand why futures just jumped.
HFT tractor beams initiated again?
Tyler has to confirm that. Until then, It's just an illusion man.
In other words:
Don't put the cart before the horse.
Put your liberty (sovereignty) on the table and then we'll talk about security.
At least one country in Europe understands that there's no free lunch here.
"Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety." ~ Benjamin Franklin
Indeed, although upon reflection I'd like to qualify my other statement by noting that in the trailing 52wk period Merkel has probably pulled more fancy toothpicks out of catered, artisanal sandwiches than a Muppet in heat.
As the crunch intensifies it becomes ever more apparent that the majority in The West care little for Liberty unless it is wrapped in affluence. And that they will discard Liberty in a nanosecond for just for a plausible promise of unearned affluence.
In other words, "Give Me Liberty or Give Me Death" is morphing into a confused notion of Social Justice in which the hapless shills think that they will retain some shred of Freedom and Dignity once this pernicious and ultimately Stalinist concept is fully implemented.
US citizenism has always be about classwarfare, not freedom, truth and justice.
Burgeoning middle class ousting upper class on ground upper class used coercion, lies and injustice.
US citizens has always been about affluency.
Founding fathers did not wish to free their slaves because... money.
No GW freed his personal slaves on his death, against the wishes of his household.
The reason there was not a general emancipation in 1776 was because the founders believed it would be too destabilising of the nascent state. Well, they were right.
i wouldn't quote Ben F too often...He may be "speaking" of "a new normal".
And fast forward to today, oh sht.
That's okay, I'm sure once they announce a bailout of Spain everything will be okay. Oh wait...
Cue the various CB "intervention" rumors.
Futures just doubled because...well...uhhh...oh yeah, hope.
Kindly asks that other Zooropa Collective members not skip ahead in the script.
I would say if I was Merkel....send me your gold.....then and only then we will talk.....period
If you were Merkel, you'd know you've got a financial sector that will collapse if the EZ goes 'kaput'.
they absorbed E. Germany. They can absorb their financial sector--by printing very expensive DMs.
What part of "nein" don't you understand?
"For context, these are 15 year high yields at 6.67% and while they 'feel' dramatically high, Spanish bond yields were over 12% in 1995".
More context
1995 = "Spanish" yeilds
2012 = "Dogs breakfast" yeilds
Except they have more debt, can get a bailout and don't control their economic policy (the ECB does).
So context is important.
Fair enough but surely @ 12% they would not have had the property bubble they had and the consequent bust.
Like most here probably agree the PIIGS would not have had a snowballs chance in hell of the party they have had over the last 12 years if it was not for the Euro and we may not be in the depth of shit that we are.
surely @ 12% they would not have had the property bubble they had and the consequent bust.
Indeed. All the fault of the ECB and their free money. All the countries in trouble right now are in trouble because of the ECB.
AKA, RAISE THE GERMAN FLAG ABOVE YOUR RESPECTIVE CAPITALS
Well, that's what they get for over-borrowing. Now (as has been pointed out by ZH so many times) it's just a game of chicken between the borrowers and the lender.
AKA, RAISE THE NEW WORLD ORDER FLAG ABOVE YOUR RESPECTIVE CAPITALS
So... what good stock is there to short french bonds?
I think Ms. Merkel is feeling some pressure from the people. And we thought Italy would not be on our radar for another month or so. Geesh, that took about 24 hours.
NEXT! Step right up folks.
You guessed it. German taxpayers are already on the hook for 2 trillion in piigs funding. In Germany the social system has been reformed over the last 10 years (unemployed are forced into low wage jobs, retirement age was increased aso), real incomes are down. At the same time other Euro members lived above their means and now demand even further funding of their welfare systems (or does France make a surplus to fund the reduction of their retirement age to 60 years?) on the back of harworking, productive people. If Merkel agreed to Euro-Bonds, it would be political suicide.
ES +8
Go figure.
Sell it.
Likely right. Someone probably wants to sell at a better price.
There has got to be an Italy/Spain metaphor here somewhere.
http://www.nypost.com/p/news/local/big_fat_tip_1CzespSjU5uxHb1KAuO0tO
Gold got a little bit of a lift there, big bit of a lift actually, $15 so far...
It's still going up........
...And the MSM talking heads are frantically avoiding the conversation... move along folks, nothing to see here..... you can't make this shit up!
Can someone tell mrs Merkel that when the Titanic sank, first class got pretty wet as well
MERKEL SAYS STATES MUST GIVE UP SOME SOVEREIGNTY TO EU
I can't believe a German actually said that in public.
It cant be.
she is stating the obvious.
It's logical. If they wan't to get funded by bonds were all Euro taxpayer are liable (especially the biggest Euro taxpayer population), they must give up their sovereignity on how to spend this money. Without giving up sovereignity it's like California could spend Federal income tax revenues.
I slept so much better last night after ordering a monster box of silver eagles.
+
I would hate to be all those banks(mainly spanish ones) that were cajoled into buying spanish bonds by the ECB with dirt cheap LTRO money. The $125bn bailout will be but a drop in the bucket for what is truly needed. They`ve fucked this up to no end.Yields above 8% by the end of the month.
One Ring to Rule them all.....
And in the Darkness bind them.
In a crooked market a crooked german tries to fence off the crooked gangsta banksta cabal at the expense of euro sheeple. Its a crooked world and its called Oligarchy market reality; as long as it employs financial weapons of mass destruction; aka Cds derivatives, then don't expect any rationality from anyone. Its a race to the bottom as every crook hangs on to his own jewels, blaming the other for the Titanic slide, all the while he drills holes into the ship hull to make a fast buck on the side. What a merry ride.
Throw Fitch's downgrade threats and its a PARTAY!
http://confoundedinterest.wordpress.com/2012/06/12/fitch-warns-europe-spanish-yields-spike-no-qe3/
apparently angela may have heard that the banksters could end play her within two weeks by proposing the financial sleight-of-handling thePeople without the political structures in place
so she's addressing that here
this severly limits the marioECB -led planning committee which will report back on/about the 20th of june since there is no political structure now in place which would even lead to deposit insurance on the crooked banksters' rip0ffTM casinos
politically and thru the internets even the banksters may be realizing: a shitload of banks just gotta go?
those would be rothschild & rockefeller banks and banks of interests aka theCityTM and their zombie capital
but there really is no hurry
we actually could muddle along in these messes for another decade and just try to keep the checks in the mail w/ZIRP and paper ponzi games: markets screwed down tight
the politics and the awakenings involved are the media we are using are not of 2008 or 2011, no matter how uncomfortable people are with the changes
since most individuals have no intellectual concerns beyond the new i-flavor and making sure nobody thinks they didn't learn about the flying spaghetti monster, all the propagandists are caught in their own molasses
herrSchuable spoke of being advised by diplomats in his last fart; so we know that these moronic shitheads are now working overtime to maintain the staus quo behind new, improved boilerplate, sets of ambiguities, and illusions projected from behind the curtain
angela is in no hurry; austerity takes a while to cuddle up to when people are still so happy with the pretentions of yesteryear
angela doesn't care, imo; others may not know how to keep the water running and the lights on, but germany does
and yes, germany is in this EU thingy, too; but not in the BK crowds
the pols are starting to say to the rothschild and rockefeller empire: we think you guys are full of fuking shit, balance-sheet wise; in other words, they are tired of kissing the asses of zombie wealth marked to unicorn droppings; they have other constituencies beside pig-men
so the banksters hafta consolidate and liquidate their murderous interests with new money created by indebting you and me and our moronic children or diluting our "money"; but our blessed oligarchs should be clear and cashed out now, so things can be marked down in bigger batches?
they are now in the process of trying to tell us how much we owe them already
it is an election year and they hafta try to do it with a straight face or just let the junkster fly with it all which is probably the best plan, overall, again...
the chairsatan's in no hurry; everything is screwed down tight no matter what chicken little thinks; he and slewie and angela understand austerity; we can see how interestedCongress is, too!
i guess people are waitng for france to realize what a big dill it is sucking...
gBrit has abandoned all hope and gone turbo-P0M0; they are gonna discover the outer limits of debt-loading thru centralBankstering; altho the swissies are doing their cern-based best to bag the bankrupt BiCheZ first, they don't have the magnaCarta to destroy...
fungicide was full of run and breezed the 5AM 5f. handily; this horse is a monster; trust me
so there is quite a bit of humor to go with the radiation levels here again today, comrade BiCheZ!
Ain't nuthin' like the real thing, baby! IOW, looks like yer clonez have fallen (and they cain't get up!) :>D
Merkel will do whatever it takes to ensure a devalued euro against other currencies. This ensures the German production machine maintains its artifically low trading advantage in the world markets.
Germany doesn't give one shit about the rest of europe, only itself and that which is to its greatest advantage.