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Ugly End To The European Day
European stocks gapped impressively higher from a weaker-than-credit close yesterday and credit rallied to catch up with equities until just around the US NFP print. Downgrade rumors and the Republicans legislation threats took the shine off dramatically as EURUSD dropped almost 200pips from its intraday highs and equity and credit markets cracked lower in a hurry into the close (though ending higher on the day). European sovereign bonds were performing very well but also leaked notably wider into the last hour or so (perhaps France and Belgium driven by the Dexia news?). Ending the day under 1.34, EURUSD has retraced more than half the 'bailout' gap higher. EUR-USD basis swaps and FRA-OIS spreads also started to decompress (worsen) again as we noted earlier the ECB's dramatic rise in deposits and emergency loans suggests all is not well and perhaps this was the greatest central-bank-driven opportunity to reduce exposure ever?
Note that equities (blue) started to lose it early and then credit finally joined the anti-party. This goes back somewhat to what we discussed yesterday that the shock and awe impact on credit traders this week has them a little gun-shy to lay out shorts in size.
The EURUSD has retraced over 60% of the gap up on the bailout and fell 185pips from high to low into the European close.
But it was the fulcrum securities that perhaps drove concerns as the significant rally of the last two days stalled and Spain, Italy, and Belgium all widened dramatically off the tights. The Dexia news could perhaps be a notable driver for Belgium's underperformance but the systemic nature of the move looks like banks used this week's healthy rally to unwind some risk.
Short-dated basis-swaps widened 5bps, and FRA-OIS spreads widened 2bps on the day stalling the 2 day improvement post bailout and signalling all is not well.
Charts: Bloomberg
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I am German and think that Germany should not bail out Europe nor accept Eurobonds! China does not want to spend their money to pay for Europe, the only recommendation from the USA is to make the same mistake they do and print money. If you do not fix fundamental mistakes made years ago you will not have success in the long run. Germany is in great shape also because of the Euro but sometimes it would be healthier to grow a bit slower than paying the bill for countries like Greece. I never voted Berlusconi, Stefanopoulus, Silva or any of these guys. They have to learn their lesson otherwise nothing will change in the future. I dont generally like Merkel but I think he is right in this video. http://djia.tv/al-jazeera/merkel-calls-for-tighter-euro-fiscal-union/Ahhhh, crap. Germany has developed into the behemoth it is due to the benign presence of massive numbers of US troops etc. in Germany. Simple. And yet they've got to participate in consortia and sell arms worldwide.
No need to get all uppity. You were gifted your prosperity after purposeful destruction in WWII.
ORI
/the-plan/
Speaking of Germany, they just sold a nuclear sub to Israel. Pays the bills, and creates WWIII.
Cool beans. Better them than Iran.
Israel should not have bought anything from the krauts.
Most likely the sub came factory preloaded with STUXNET.
Imagine now Angela Merde-kel pressing the red button which launches a missile from the sub sold to Israel.
Black helicopters much? Germany and Israel are two of our best allies and I suspect will continue to be if we ever need them with the chips down.
Maybe some of you guys are just kidding around. But maybe some of you guys would rather Germany sold such military hardware to China, Russia, Venezuala, Cuba, N. Korea, Pakistan or Egypt.
Junk and show your colors.
At the onset of WWII, Germany was a sworn ally of Russia.
Then they doublecrossed the soviets.
Sound familiar?
Let me guess.. You are reading the American/British verson of how the war was started.. Good for you... good... next, we'll learn about how the angry American Indians slottered the pioneers..
20 million Russians died at the hands of nazi germany.
You are a sad pathetic piece of nazi shit.
Oh, you werent commenting on me
-edit-
You are full of shit.. How many people died at the hands of the Russians? You indifferent piece of shit.. I care about all those that died and the REAL story behind it.. You fucking conditioned self-worshipping social cripple.. ..
Hey guys, guess what, you're both off base. Don't take offense now, but it is the governments of ALL these nations that have killed innocents. It doesn't make one right for another to be wrong. They're all wrong, and you guys arguing over it is just playing into their hands. If you have any sincere desire to fix this crap then stop letting the elite play you against each other. They'll profit from you whether you're the winner or the loser of your wars.
I agree with what you said.. it is the governments.. My point is, as I stated, I AM BOTHERED BY THE DEATH OF ALL murdered by war.. Not just Russians, not just Jews.. I know that sounds off the wall to some.. but .. there it is.. and yes.. even the Germans that died.. and that somehow makes me a NAZI scum.. according to some indifferent assholes..
add hypocrite and coward to what you truly are.
I live in Washington State near the Whitman Mission. That's what I have been told since I was a kid.
http://en.wikipedia.org/wiki/Whitman_Mission_National_Historic_Site
In short, no. The Warswas pact was the essence of the proverbial 'odd-couple.' Hitler and the NAZIs hated communists, it was a marriage of convenience, plain and simple. Hitler was brokering deals with everyone at the time to get the upper hand on them and most were stupid enough to think him a man of his word.
Just as the PIIGS believed Merde-kel to be a woman of her word.
And the soviets weren't planning to doublecross Germany first.
I sure as hell hope so. Ohhh and... "Israhell should not have been given anything "
There... fixed it for you..
And ya gotta love the irony...or is it?
No not nuclear subs, they are diesel boats big difference, dive depth of 400 meters.
Oh by the way the Germans (per Naval-Technology.com) have sold 3 to Pakistan, 6 went to Turkey, 3 to Greece and 3 more to South Korea.
Good piece of business for the Germans..... DAS BOOT - GERMAN U-BOATS PROWL AGAIN.....
"The new boats are built at the Howaldtswerke-Deutche Werft AG (HDW) shipyard, in the Baltic Sea coastal city of Kiel, with deliveries originally scheduled to begin in 2010."
http://www.defenseindustrydaily.com/germany-may-sell-2-more-dolphin-subs...
Israel currently has about 5 of these U-Boats from the Germans with orders for a few more.
How about that!!
germany manufactures the subs, period! it is america's know-how that retrofits the subs
The sub is diesel-electric.
http://en.wikipedia.org/wiki/Dolphin_class_submarine
I'm not sure what you classify as "nuclear sub".
Is any sub that has a 25.5 inch torpedo tube now a "nuclear sub"?
Germany is bankrupt just like the rest of the world. The idea that somehow Germany can carry the weight of Europe on its back is preposterous. They're just as indebted as the rest of us. But they have less debt relative to their neighbors, so that somehow makes Germany's position as Atlas supporting the weight of Europe on his shoulders viable? No way. Germany is insolvent, too and stands the most to lose from the PIIGS sucking its banks dry like leeches. Atlas is getting tired...
Atlas balked.
Atlas is going farther than shrugging. He's going to end up grabbing this world with both hands and tossing it into hell.
The only difference between Germany and the PIIGs is that Germany has a positive trade balance. It still has a high debt and runs a deficit every year. It is the best house in the bad neighborhood. I think it was by at least 80% of GDP in Gubbermint debt.
that's pretty arrogant to talk about the recovery of germany since WWII as a 'gift.' when will zerohedge commenters stop sounding so often like arrogant little pricks.
Let me tell you when BarkingBill. The moment you stop barking, snap your bill shut and open your mind.
Japan and Germany. Then Korea?
Come on. It's beyond obvious. And yes, in their Pavlovian minds (controllers) this is how they gift.
See them gifting Demoncrazy to Libya?
ORI
This phenomenon is not isolated to ZH. People in general will stop sounding like arrogant pricks when their forked tongues are carved out. Until then keep grains of salt stockpiled. You can thank television and the music industry for incubating the luciferian self-centric society we live in, but of course they are merely tentacles of the squid, not the head.
Japan, more or less the same. Both defeated and re-energized with US helps.
One downed. The other...
Pre-planned. War...prosperity and then..., every single one of them in 20C. By accident?
Crap.
Thanks for sharing.
"I am German and think that Germany should not bail out Europe nor accept Eurobonds! "
German are ya? Well then let's get to the heart of it. East German or West German? I mean really, this is the best war you have fought in a few centuries. You are taking over Europe without a drop of blood on your hands.
Bra-fucking-vo.
Are you going to say something that matters?
You are a mean mean mean little man.
Now, go to bed.
HAHA now it is the Germans fault that most southern countries are corrupt and do not know how run their economy but on top do expect that Germany bails them out. Unfortunately Germany will fall with the Euro and is bankrupt just as everybody else. East or West??? that was long time ago!!! I do not live in Europe any more.
How are the pension funds here and globally handling this volatility ?
I am sure they are enjoying ZIRP foreva, QEirp, Twist and fist foreva ?
Have not heard much on the Illinois Tecahers fund lately either.. too quiet on that end..
Don't know about Illinois fund but the National Educators Union fund is getting ready to drop about 4 million to fight the abolishment of property taxes in North Dakota. They must be doing OK.
"North Dakota citizens may abolish property taxes, allowing them more control over government spending. Nearly 30,000 signatures were collected to place the people's initiative on the ballot in June, 2012 that would constitutionally abolish all property taxes in North Dakota. This landmark measure supports property rights, small government and freedom advocates around the country. If the initiative is successful, North Dakota will be the first state to abolish all property taxes, both state and local, and will provide a model for the other states to do the same. North Dakota may be the first state to kick off the property rights revolution" .................. "The national mainstream media is not covering this story. The NEA has pledged $4-5 million to fight passage of the measure -- this in a state where a Senate race costs less than $1 million. They clearly see the national impact this measure will generate and want to stop it before any other states get any bright ideas." http://www.activistpost.com/2011/11/secret-revolution-in-north-dakota.htmlJon, we hear you.
Unfortunately the politicians won't listen and they will drag you into hell. They might be creating the biggest pile of financial shit on the planet, but they will be Kings and Queens of the shit pile. The regular people, the peasant as we are referred to now, are given as much consideration as a elephant cares about the grass and bugs under it's feet. That's the situation everywhere now.
You might want to look at what the German government is doing with the German people's freedoms right now. It looks just like Canada, lock down the INTERNET, register anything moving and make sure the laws are lose enough that they could arrest anyone for having a different opinion.
And by opinion, any opinion. Just read Die Ziet, it's a carbon copy of every country with a central bank. There isn't any news in it anymore, the odd real article slips in. But like all English newspapers, it's just fish wrap now. If you want to know what's happening in Germany, the sad thing is you had to leave your own language to be informed.
Merkel is a "he" ?? I always thought there was somthing going on with the Germans--Even back in the whoring around Bremerhaven days the females had that tough guy look.
"she" = "he" -"s"
Typo I bet.
Jonb
I'm a Brit. Hope you've taken note of the contents of this short little video on the ESM. If I got it right, the Germans will be part of it. Fancy getting financially raped??
http://www.youtube.com/watch?v=5CZr17HLH5U&feature=mfu_in_order&list=UL
FTMFW
Germany should just leave and print their own currency. At least they can support their own banks.
keep shorting the stocks and bonds. keep going long on the metals and crony insider trading.
http://expose2.wordpress.com
A lot of trapped shorts holding market up....including me....ouch
When I feel the compulsion to short, I always force myself to take a 30% capital allocation on the long side. As I trade-off my short into strength, I feather in a long position. When these snap back rallys occur, I start to peel off my longs. I'm still in the hole, but, taking profits keeps me sane and allows me to hold on if I believe that being short is still the correct stance.... Of course, the same is true for bull markets (aka, GOLD)
I am in your boat Sophist..except I cant think of a good way to hedge gold (other than the Bernie put) sneer sneer..
Buying puts is useless on an ever increasing asset..
Hedges are for pussies. They cut into profits!
Why not just reduce what you plan to short by 30? Doesn't come out the same betting 30% against your short?
The main issue is you were playing, this isn't the time for equities. At all.
This is the time for Physical assets. You want to hedge? There are four ways you can do it.
The stuff you get is to hedge inflation on things like food, clothing, even oil if you have the storage capacity. These are things that you are going to use daily and are directly hit by inflation fast. The "stuff" component is the spend money to save money by proxy of inflation.
Hopefully you followed through with that going long C call you made.
I don't believe that EVERYthing can go right, with every EMU country falling in line with voting referendums, to enable a Fiscal Federation to come into credible being in Europe. Thus, no fix in sight in reality. Not December 8th, not 2012, not before 2020. Realists understand that.
Therefore, they will see a debt jubilee. European people (not governments) get that.
Meanwhile, why are GS, Morgan Stanley, and JPM so outperforming this morning? I haven't been totally paying attention to today's market action, so did I miss some news on these stocks?
Yes you missed the news. It just hasn't been released to the public yet.
GS, MS, and JPM probably knew what the Repubs were going to do so they took on EURUSD shorts ahead of the news.
Darn! And they had it all SO fixed just a few hours ago!
This terrorist thing has made my life a lot simpler ,when the SWAT team comes in you know just to open fire , because if they get you you are NOT coming back and you are dead anyway.
u better have something with some rounds and calibre...like an RPK nestled in some sandbags
but our bankster friends sold risk into the rally(e) and are now only levered 55:1!
zH offers psych help (5 cents) for people who trade w/ the banksters too much
that 200 pip downdraft on the EUR? do da boyz know how to attack markets w/ squid-like cunning and dispatch?
http://www.youtube.com/watch?v=-6ThanSzG_w
American (Home Grown) Terrorist, Look Out for the following.. Cheat Sheet and then report to Home Land Security!
Love God? Then You are a Terrorist.
Love the Constitution? Then You are a Terrorist.
Do you store more than 1 weeks' worth of food for Hurricane Season? Then You are a Terrorist.
Do you store more than 1 weeks' worth of food in the winter? Then You are a Terrorist.
Do you have more than 1 weeks' worth of your favorite cookies? Then You are a Terrorist.
Do you use nail polish on your ammo before going diving in case of a shark encounter? Then You are a Terrorist.
Do you weather proof your ammo for hunting? Then You are a Terrorist.
Do you own Gold and Silver with the intent of using it for money when the Federal Reserve Prints the U.S. Dollar into oblivion? Then You are a Terrorist.
Do you think that Congresses insider trading is Treason against America? Then You are a Terrorist.
Do you think that Senates insider trading is Treason against America? Then You are a Terrorist.
Do you think that the United States Military should NEVER! Stand against Americans? Then you are a Terrorist.
Do you disagree with anything the Government of the United States does? Then you are a Terrorist.
Do you talk badly about the Government of the United States? Then you are a Terrorist.
So to any and ALL! of you Pepper's! ALL! of YOU(s) are Terrorists!
So to all of you God Loving, Patriotic and Constitutional Conversationalists.. I say FUCK YOU! I am calling Home Land Security RIGHT NOW! and turning ALL of You in! for the Reward Monies!
Subtitle D--Detainee Matters
SEC. 1031. AFFIRMATION OF AUTHORITY OF THE ARMED FORCES OF THE UNITED STATES TO DETAIN COVERED PERSONS PURSUANT TO THE AUTHORIZATION FOR USE OF MILITARY FORCE.
(a) In General- Congress affirms that the authority of the President to use all necessary and appropriate force pursuant to the Authorization for Use of Military Force (Public Law 107-40) includes the authority for the Armed Forces of the United States to detain covered persons (as defined in subsection (b)) pending disposition under the law of war.
My freaking adrenal glands have sure gotten a workout.
Outrage Fatigue
Two words.
I'm taking the weekend off from non-stop worrying.
Thats right! Dont dwell too much on this BS, its all just clouds of smoke anyway and while now it seems it will never end, one day it will seem it only lasted a moment, and calling these 'the good ol days'...PREPARE! It does wonders for ones self.
http://tpmcafe.talkingpointsmemo.com/2011/11/22/the_great_rope_a_dope_trick/
Last summer during the debt ceiling hostage crisis, Obama appeared to be the loser, but yesterday Republicans woke up to the reality that they lost Big Time--that we were going to get $1.2 trillion in deficit reductions, with 50% of the cuts coming from the military and none of the cuts from Social Security and Medicare. The Congressional water carriers for the Military Industrial Complex are in a panic.
EURUSD schmeurodollar. Dead man walking.
What may not be clear to most people is that all of us are already effectively under arrest. Do not go quietly.
That's going to happen when you refer to your co-habitants as inmates. The world has become a prison of our own making.
Panopticon.
Good news is in Belgium we finally have a new socialist! prime minister with Italian! roots and ...
http://assets.jobscareer.be/ic_jc_nl/body-width/assets/002/626/01.jpg
Yes, he's gay, so what ...
Congratulations?
Um, hooray?
I thought it was French downgrade day today? What's the delay?
Ratings agencies need time to reconsider situation now the Merkel and Sark are holding hands and willing to go it alone together.
Does this panic selling prove an investment thesis wrong? It does if you believe jumping off a cliff is right because everyone else is doing it.
http://rosenthalcapital.com/blog/2011/12/precious-metals-outlook-as-liquidity-crisis-eases-look-for-precious-metal-leadership-resurgence/
So I see the Miday Manipulation in precious metals has taken place....
Kitco charts are like a crime seen.
USA Justice department and SEC and CFTC asleep at the wheel...
cough...cough.....
KleptocraZy.
Ever notice that when you put it spot gold or spot silver, it just takes you to the kitco site and not right directly to the page? I noticed it from earlier this week. very strange.
Cue to Robo Trader in fetal position in Mom's basement......
Ain't looking that hot...
12-02 12:00: Irish Fiscal Deficit (Nov) Y/Y EUR -21.4bln vs. Prev. EUR 13.35bln 12-02 12:00: Irish finance ministry says tax receipts to the end of November 1.6%...REPS want "some" too, this is nothing but the usual fuss, wait and see!
OK, in terms of being overbought mainly the security udn has come back to where it should, but both tbt, and emerging markets have gottn back to their speed lines for me to want to rebuy. strange how some things really do ass they should but others don't
This is what you get if you gap EURUSD during the weekend.
Next week will be very bearish IMO. Oh and AUDUSD has more than 400 pips to drop from current level :-)
Not that it matters...
http://theeconomiccollapseblog.com/archives/have-you-heard-about-the-16-...
Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fails?http://www.youtube.com/watch?v=eEMDX2iuHyI
Paul Craig Roberts: Congress is Repealing the Constitutionhttp://www.infowars.com/indefinite-detention-bill-passes-senate-93-7/
‘Indefinite Detention’ Bill Passes Senate 93-7Americans completely stripped of all rights under Section 1031
I got news for you--My rights are unalianable and God given so fuck the state--they can't take what they don't give--so fuck the state twice.
When people like me everywhere shrug then the parisites and I mean every one who gets a check from the state will be in a world of shit- I mean all the fire fighter and military and cops and politicos and farmers getting milk checks and ethonal baggers and toll booth jerks and deadbeats sleeping behind the desks at the county and state offices and the teachers in state schools and retires from state jobs and businesses that have gov't contracts and SS benifits check cashers--all of them -- cause we're the linch pin. We're the sand bag on the levy. Its best for everyone if you don't go and fuck with our rights.
Ever notice when you flush a toilet the water spins faster and faster as it swirls down the drain?
The economy is picking up speed:
http://www.youtube.com/watch?v=pKOYObwBZLc
It's all about three letters...NWO and World Globalization. Everything is going according to plan, they now have Goldman leaders running the European countries as planned, they have the big banks and Corporations in control of the new fascist America and they are about to spark a War in the Middle East that will spread across the globe. It won't be long before the people will be willing to give them everything they have just to survive. Countries like Russia, China, Iran, Libya, Syria, Venezuala are not on board and are not willing to play. The key to the NWO's success is to have full control of the Oil and resources in the Middle East. What we have witnessed over the past 2 decades is the strategic alignment to do just that. This plan is in its final stages. The recent dog and pony show put on by the FED, IMF, The ECB and their other conspirators to once again prop up the system is merely just temporary and is not intended to be fully played out as we all know there is no real money to lend, just digital monetization created out of thin air. The sooner we realize that they are all the same man behind the curtain, the sooner we can accept the future for what it will be. Everything that happens in the financial system has happened the way it was intended. As we sit here and claim doom on a daily basis, they simply scratch another acheived goal off their list. We all know that it is mathematically impossible to ever repay the debts however these debts were never intended to be paid back. Everything is going according to plan folks, it is only a matter of time now before this daily soap opera will start making more sense.
GAO Fed audit & CDS junk r the kicks fer ground & pound ....
Much better than any kind of usual agitprop.
So, I see some support for HR459/S202 ... 40 names more, and we could start seeing some headlines :-P
In the meantime, I'll spam, yell spit and piss on every €U-polit-wanker who denies the 16 Tr. of FORFEITED $$$, from wich the most part used to short €U ... :-P
May I say - RON PAUL 2012 ???