Posts Tagged ‘Eurozone’

Market spanking roundup

Tuesday, June 29th, 2010

High frequency ‘fat finger’ on Citi:

http://www.zerohedge.com/article/hft-fat-digital-finger-breaks-citi-stock-shares-halted-circuitbreaker-triggered-stock-plungi

S&P busting 900 next?

http://www.zerohedge.com/article/timber-right-shoulder-dislocated-865-next

http://www.zerohedge.com/article/cold-shoulder-goldman-warns-if-1040-taken-out-sp-865-next-stop

http://www.zerohedge.com/article/bond-yields-imply-fair-value-sp-750

http://www.businessinsider.com/closing-bell-june-29-2010-6

Don’t forget Euro-spanking!

http://www.zerohedge.com/article/imf-preparing-bailout-cataclysm-part-2

http://www.ft.com/cms/s/0/a3874e80-82e8-11df-8b15-00144feabdc0.html?ftcamp=rss

http://www.huffingtonpost.com/2010/06/29/europes-massive-austerity_n_629062.html

And ‘finance reform’ (ugh):

http://www.huffingtonpost.com/2010/06/29/wall-street-reform-confer_n_629257.html

http://www.huffingtonpost.com/2010/06/28/scott-brown-may-oppose-wa_n_627986.html

ECB “must” buy 100s of billions of bonds to handle debt crisis

Friday, June 18th, 2010

Full story here. More precisely, Fitch will downgrade your butt if you do not monetize, guarantee debt and enslave your populations. Feh–given that the Eurozone is headed for a breakdown crisis by sometime mid-July, buying junk that other private banks don’t want to hold anymore so this kabuki can continue is a colossal waste of time.

Fitch Ratings has warned that it may take massive asset purchases by the European Central Bank to prevent Europe’s sovereign debt crisis escalating out of control. (more…)

AXA says no chance of Euro bailout succeeding

Tuesday, June 15th, 2010

Full story here from ZeroHedge. No surprise on this to us here at ShadowTraders, but we are impressed someone told the truth.

Some late night words of caution from one of the UK’s best journalists. In a report obtained by Ambrose Evans-Pritchard, French financial firm AXA is quoted as essentially saying that the chance of the Eurozone’s survival is nil. Why a European bank would issue it own suicide note is unclear, although the firm’s logic is sound: “The markets are very nervous because they can see that there is a fatal flaw in the system and no clear way out. We are in a very major crisis that has even broader implications than the credit crisis two years ago. The politicians have not yet twigged to this.” Ms Zemek said the rescue had bought a “maximum” of 18 months respite before deeper structural damage hits home, with a “probable” default by Greece setting off a chain reaction across Southern Europe. “It would be the end of the euro as we know it. The long-term implications are at best a split in the eurozone, at worst the destruction of the euro. It is not going to end happily however you slice it.

And some more doom and gloom: (more…)

Eurotrashing

Thursday, June 10th, 2010

Italy might miss some debt payments. No mi infastidire!

http://www.zerohedge.com/article/bank-italy-says-interest-payments-debt-subject-great-uncertainty

Bulgarian and Romanian sovereign risk:

http://www.zerohedge.com/article/guest-post-bank-exposure-bulgarian-and-romanian-sovereign-risk

S&P downgrades Spanish region of Valencia:

http://www.zerohedge.com/article/sp-downgrades-spanish-region-valencia-aa-because-growth-debt-burden

Euro Central Bank will keep buying bonds:

http://www.zerohedge.com/article/trichet-qa-ecb-press-conference-appropriate-continue-buy-bonds

Let Europe’s monetization continue indefinitely! Surely this will do miracles for the EUR once Goldman is done buying all its clients are selling to it today.

Gads, get me Claude Akins! How ’bout some Preparation H.

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The trillion dollar failure

Wednesday, June 9th, 2010

Full story here from Henry CK Liu and Asia Times.

This is the 10th article in a series.
Part 1: The crisis of wealth destruction
Part 2: Banks in crisis: 1929 and 2007
Part 3: The Fed’s no-exit strategy
Part 4: Fed’s double-edged rescue
Part 5: Too big to save
Part 6: Public debt – prudence and folly
Part 7: Global sovereign debt crisis
Part 8: Greek tragedy
Part 9: Greek crisis, German politics

At the close of an emergency Sunday meeting of financial ministers from the 27-member European Union (EU) that lasted until the early hours of Monday, May 10, 2010, the exhausted attendees emerged to announce a startling nearly 750 billion euro (US$1 trillion) financial stabilization package for EU member states with sovereign debt problems and the European Monetary Union (EMU) to restore market confidence in the euro, its common currency for the 16-country eurozone. (more…)

Strangulation economics

Wednesday, June 9th, 2010

Full story here from Mike Whitney.

Forget about a smooth recovery. Finance ministers and central bank governors of the G-20, met this weekend in Busan, South Korea and decided to substitute “tried and true” expansionary fiscal policies for their own strange brew of belt-tightening and austerity measures. The EU members are eager to restore the illusory “confidence of the markets”, something that will surely be lost when the eurozone slides back into recession and the hobbled banking sector begins hemorrhaging red ink. Trimming deficits while the economy is still on the mend will weaken demand and force businesses to lay off more workers. That will decrease economic activity and slow growth. It’s a prescription for disaster.

Here’s the final paragraph from the G 20 communique: (more…)

PIGS-less Euro at the door

Monday, June 7th, 2010

Full story here from Jim Willie.

Natural forces are at work in Europe, powerful forces, in fact forces that are not evident. It is amazing how little the financial analysts notice the forces at all. Since the year 2007, a hidden force began to put pressure on the European Union financial underpinning. Like any fiat currency, the foundation resorts to debt. It came to my attention almost three full years ago that Spanish EuroBonds had a yield slightly higher than the benchmark German. Commentary swirled that the EuroBonds were not homogeneous, and therefore the Euro currency was badly flawed. They were identifiable by the markings on the bond IDs. German EuroBonds carry an ‘X’ in the ID. So the arbitrage professionals went to work, buying the German and selling the Spanish bonds. The flaw was to the structural foundation to the Euro currency, not the market that traded them, surely not the alert speculators. In time, the Greek, Italian, and Portuguese bonds, even the Irish bonds, showed significant separation from the German benchmark. Last December, the Greek bond broke first. Its arrival to the crisis was not part of evolution (natural selection) as much as European tribal leader selection. Greeks are neither Latins nor Teutonics. The bust of the EuroBond structure invites the arrival of a gold-backed currency, urgently needed to provide stability. (more…)

More pillars of Europe crumbling

Thursday, June 3rd, 2010

Yes friends, the fall of Europe continues. When will people learn that bailing out crappy banks and not arresting bankster scum will not help your economy?! At this rate there will be Switzerland, surrounded by smoldering piles of burnt economy.

Hungary is starting to slide off the cliff:

http://www.zerohedge.com/article/hungarian-forint-slide-accelerates-hungarian-default-risk-now-14-wider-277bps

http://www.zerohedge.com/article/hungary-cds-races-60-news-imf-mission-chief-going-budapest-informal-talks

Goldman Sachs now targets EUR-USD at 1.18:

http://www.zerohedge.com/article/goldman-adds-short-eurusd-favorite-tactical-theme-eurusd-target-now-118

Portugal’s credit rating heading out the door too:

http://www.zerohedge.com/article/introducing-not-so-stylish-portuguese-haircut-analysis

We’ve already hemmed and hawed about Spain, Germany, Greece, Ireland, Iceland, Latvia etc etc etc. The next fat tart to sing will be jolly old England. When that one goes, the tsunami wave heads for the US.

Did I mention Europe was crumbling? Add Romania to the list:

http://www.zerohedge.com/article/failed-bond-auction-bug-goes-viral-romania-rejects-all-bids-600-million-lei-auction

Geithner tells China not to rely on US consumers

Wednesday, June 2nd, 2010

Read here.

Tim Geithner has some advice for Europe, act like China. That’s right, the U.S. Treasury Secretary said that the world can no longer depend on the U.S. consumer alone to drive the global economy. Quite the opposite, Americans need to tighten their belts and focus on savings, while the Chinese are enacting reforms to make sure that domestic demand, within their own country, grows. So does this mean that China is now on top? Alyona discusses with Gregory White from the Business Insider.

http://www.youtube.com/watch?v=lShyKayse3Q&feature=channel

Europe is on the edge of a deflationary precipice

Friday, May 21st, 2010

Full story here from ZeroHedge. And since it’s Friday you get a free Simpsons reference for Germany.

A few days ago we pointed out that the latest Japanese GDP deflator came at multi-decade lows, this despite years of printing, pumping and other -ings. Today, Albert Edwards takes the observation of rampant regional deflation and concludes precisely what we have long claimed, that once rampant deflation is finally acknowledged by central bankers everywhere, and they are now running out for time, their only natural response to preserve the system will be to do what Japan has been doing for decades (successfully, they will claim) and respond with the most extreme round of monetization ever seen, “inevitably driving us towards out ultimate destination – 1970’s style 20-30% inflation.” Edwards also has an interesting observation in the aftermath of Tuesday’s “no more incumbents” Primary Election results – with the administration now realizing it is losing the economic battle, it will instead focus on keeping some political credibility. To do that, Obama will attempt to focus voter anger abroad. And the resulting trade tensions, particularly with China, will be the catalyst for “shock Chinese yuan devaluation.” Needless to say, we wholeheartedly agree with Edwards conclusion that “a global downturn is close.” We also do not disagree with his bullish case for gold in the least. (more…)