ROME & ATHENS – WE HAVE A PROBLEM!!!!
Italian 2 year bond yields soaring: http://www.bloomberg.com/apps/quote?ticker=GBTPGR2:IND
Greece 2 year bond yield at all-time record of 84%: http://www.bloomberg.com/apps/quote?ticker=GGGB2YR:IND
Stock markets are plunging around the world. It seems you can’t solve a debt crisis by issuing more debt. Who’da thunk it.
Get ready for the next comprehensive agreement to save the world.
Goodbye 9 Handle: BTP Collapses To 89.5, Down 4.3% On The Day; Next: Bidless?
Submitted by Tyler Durden on 11/01/2011 08:51 -0400
Did we miss the announcement from Italy where it said it is following Netflix into full business model suicide? Because the 10 Year just imploded. It is now time to panic.
Administrator says:
When the going gets tough, the authorites shut it down.
Russia Halted
Submitted by Tyler Durden on 11/01/2011 08:44 -0400
The global capital market shutdown begins, right on schedule:
MICEX EXCHANGE HALTS STOCK TRADING
MICEX EXCHANGE COMMENTS IN STATEMENT ON WEBSITE
Like or Dislike:
4 
0
1st November 2011 at 9:02 am
Administrator says:
Italian 10 Year Bond Price Almost An 8 Handle
Submitted by Tyler Durden on 11/01/2011 08:11 -0400
Stunned horror, even from the ECB which is not even pretending to be able to put a floor under Europe’s fulcrum security – the Italian 10 year. Popcorn not optional. If this thing hits 8X, cue panic. It also appears, that contrary to Fast Money’s expectations, the dump in BTPs was not “entirely driven” by MF liquidations, and the bankruptcy was not a “wildly bullish” event.
Like or Dislike:
0 
0
1st November 2011 at 9:03 am
Administrator says:
G-Pap’s Referendum Bomb Was Secret Even From His Finance Minister
Submitted by Tyler Durden on 11/01/2011 08:32 -0400
Things in Greece are becoming absolutely surreal after Reuters has disclosed that G-Pap did not even tell his FinMin Venizelos (who earlier was hospitalized with stomach pains… yes, we know) that he was about to announce a referendum. From Reuters: “Greek Prime Minister George Papandreou had not informed his Finance Minister, Evangelos Venizelos, he was going to announce a referendum on the latest EU aid deal, a Greek government official said on Tuesday. “Venizelos had no idea about the referendum. All he knew about was the vote of confidence,” a government official told Reuters on condition of anonymity. “He told Papandreou he should inform foreign partners and a letter was drafted in the early morning hours.” What can one say but “coordinated decision-making.”
More:
Venizelos, who is leading talks with the EU, the IMF and banks on the country’s bailout and debt swap deals, spoke on the phone with top officials on Tuesday, a day after the announcement, a finance ministry official said.
“Venizelos spoke with (German Finance Minister Wolfgang) Schaeuble, (IIF head Josef) Ackermann, (EU Monetary Affairs Commissioner Olli) Rehn, (IMF mission chief for Greece Poul) Thomsen in an effort to save the sixth aid instalment, the PSI and the bailout deal as a whole,” said a finance ministry official who requested anonymity.
And since G-Pap has successfully dumped a Trojan Horse right in Europe’s lap, now it is time for others to scramble. According to Dow Jones, French president Sarkozy is to meet the PM, central bank governor, finance minister, budget minister and foreign minister in response to the G-Pap stunner.
What else does the wily Greek have up his sleeve? Good question – nobody else knows.
Like or Dislike:
0 
0
1st November 2011 at 9:05 am
still employed says:
ungh i think i poo
Like or Dislike:
2 
0
1st November 2011 at 9:29 am
Administrator says:
European CDS Rerack: Mamma Mia
Submitted by Tyler Durden on 11/01/2011 09:17 -0400
The horror…The horror
5Y 10Y 5/10′s
Stromboli 506/521 +65.5 493.5/507.5 -20/-10
Spain 385/400 +52.5 370.5/386.5 -16/-6
Port 1060/1100 +115 825/895 -250/-190
Guinness 755/785 +80 585/655 -180/-120
Uzo 57.5/59.5 +4.5 57.5/61.5 -0.5/2.5
Syrup 295/310 +31.5 293.5/307.5 -7/3
Fried 195/200 +21.5 213.5/223.5 17/21
Aus 155/161 +16.5 169.5/179.5 14/19
Wanker 92/96 +10 108/114 15/19
Doosheland 96/100 +13.5 116/122 18/22
Like or Dislike:
0 
0
1st November 2011 at 9:39 am
Administrator says:
The Greek 2 year yield is up to 84.2% (up from 77.7% yesterday) The Greek 1 year yield is up to 194% (from 158%).
The Portuguese 2 year yield is up to 19.6% (from 18.3% yesterday) and the Irish 2 year yield is up to 9.3% (from 8.8%).
The Spanish 10 year yield is at 5.6% and the Italian 10 year yield is up to 6.3% (from 6.1%).
Like or Dislike:
3 
0
1st November 2011 at 10:19 am
Administrator says:
Double Your Money In 6 Months: 1 Year Greek Yields Pass 200% For First Time Ever
Like or Dislike:
3 
0
1st November 2011 at 12:49 pm
Hope@ZeroKelvin says:
Gee, the Greek PM didn’t even have to turn his plane around this time, although I bet his Benz motorcade ran a few red lights, lol.
This whole bond thing just will not work, no matter what the yields are. It depends on the buyer being paid the interest by the seller.
The seller in this case, Greek, is beyond broke.
Very cunning of Papandreou to put the vote to “the people”. “The people” will ALWAYS vote for the BAU, for their goodies, for tomorrow to just like today. And the polliticians know this.
So when the world markets tank, check, and the Euro tanks, check, and the commodities/derivatives brokerage firms start to implode, check – why, Papa can just say he is doing “the people’s will”.
Move along citizen, nothing to see here.
Like or Dislike:
3 
0
1st November 2011 at 1:05 pm
Persnickety says:
So MF Global = Kreditanstalt?
?
Well-loved. Like or Dislike:
5 
0
1st November 2011 at 1:09 pm
Goldorack says:
Papandreou works for CIA, it is now very obvious.
everything he does and his father (former US military) did is made to throw the Euro under the bus. he don’t gives a shit about Greece. he has the American nationality as his father.
Goldman sucks did a good job pushing this trojan horse into the Euro group.
he’s protected because the Greek military segment is as corrupt and roten as him.
did you noticed they just ordered 400 M1 Abrams?
this won’t be free. Mr Papandreou, I feel that you won’t die from old age.
Like or Dislike:
4 
0
1st November 2011 at 1:39 pm
Stucky says:
That tank deal seems to cost about four billion dollars.
Where is the money coming from? Isn’t Greece …..BROKE?
The US Taxpayer — aka Suckeritus Gigantus — gets stuck with the bill. Keep that in mind when you prepare your taxes this year as you eat your baklava. YOU … paying for Greek military machine. Eureka!!!
Well-loved. Like or Dislike:
5 
0
1st November 2011 at 2:13 pm
Hope@ZeroKelvin says:
@Persnickety:
Hmm, with that Kreditanstalt comment you got me thinking.
For a history review: http://en.wikipedia.org/wiki/Creditanstalt
Short version: This was the bank failure that went bankrupt in 1931 and caused a cascade of banking failures, eventually resulting in the Great Depression, the rise of Hitler and WW2.
MF was named to be a primary dealer in 2010 AFTER Dodd Frank. was supposed to “fix” all our banking problems. It was supposed to have the “oversight” of our fed.gov, ie Turbo Timmy and Bernie “The Injet” Bernanke. GMAFB.
Yet, apparently, not only could MF not cover its derivative exposure in the face of the unraveling of the Greek debt crisis, it COMINGLED customer funds w/ their trading book in a desperate attempt this weekend to stave off bankruptcy. What. The. Fuck.
Now, Corzine, besides putting NJ $8 billion in the hole and being a muckety muck at GOLDMAN SACHS, was the CEO of MF. He has also been tasked by Obama to garner more funds from Wall Street and is a frequent visitor to the WH. Were they betting on the EU to bail out Greece and thus stash Obama’s campaign coffers with cash?
So, we also know that Bof A just got approval to move all their toxic securities stuff to their retail banking arm, thus putting the toxic stuff under the “protection” of the FDIC. Was CorzIne, perhaps not too sure about the Greek bailout, trying to stave off bankruptcy long enough to put the majority of MF’s funds under the “protection” of the FDIC?
Regardless. It is corruption, incompetence, THEFT on such a stratospheric scale that the mind reels. Guess we will find that market bottom sooner rather than later.
Remember also that the Ivy League geniuses have tied the entire world’s banking system together with CDS/etc so that when one starts to blow, they all go.
Good to think that our beloved fed.gov will be doing a national test of the Emergency Broadcast System on 11/9/2011!! This will be the first time that the entire country’s broadcasting capacity, radio and television, will be under ONE THUMB.
Coincidence?
Like or Dislike:
4 
0
1st November 2011 at 2:18 pm
Stucky says:
Fuck Greece.
Greece is fucked.
SPAIN IS GOING DOWN !!!
Spain’s town hall meltdown – Cuts are now biting deep into civic life. One council has even bet its budget on the lottery … If Carmen Martinez Gomez, a nurse, wants to see the effects of the dramatic spending cuts Spain is currently enduring, all she has to do is glance down from her seventh-floor balcony at the building work below on the Metro, Granada’s first underground line. It is less than 10 miles long, but the Metro has already been five years in the making. And with its workers unpaid since January, its inauguration has just been put back again, reports said last week, until 2013. “It feels as if it’s never going to be finished,” Ms Martinez says. “The whole of Camino de Ronda” – three miles long and one of Granada’s main arterial streets – “looks as if a bomb hit it. Shops are going out of business.
The roots of the problem stretch seemingly beyond the control of any single government. Across Spain, before the economic recession started in 2009, what felt like an endless series of credits allowed town halls to spend way beyond their means. Take Granada’s Metro. Building work began in 2007, and by May this year, 73 per cent had been constructed. But since then, only 1 per cent more has been built – and three local town halls, including Granada, have said they are not paying a cent more to fund it.
It is hard to find a Spanish city, in fact, without its own particular white-elephant project from the boom years. In Aviles in the north, the €44m Niemeyer arts centre which had been compared to the Guggenheim museum in Bilbao has closed after six months. In Tardienta, Aragon (population approximately 1,000), the gleaming high-speed train station is used by 22 passengers a day. In Huesca in the Pyrenees, a new €40m airport has received four commercial flights in three months of service.
In Castellon, close to Valencia, a €150m airport was opened in March, but its first flights will not be until at least April next year. Sebastian Martinez, a town councillor in Linares, a medium-sized Andalusian city with one in four adults out of work after a car factory shut its doors, said: “You can’t help wondering how far this will go before there’s some kind of major social fracturing.” If this does happen, then a completion date for the Metro in Granada will probably be the least of Spain’s worries.
Like or Dislike:
4 
0
1st November 2011 at 4:09 pm
Stucky says:
Fuck Spain.
Spain is fucked.
CHINA IS GOING DOWN !!
China’s rich, primarily driven by a sense of insecurity, are taking money out of their country. Many are actually preparing to move elsewhere. According to a new study, almost 60% of China’s “high net worth individuals,” defined as those possessing more than 10 million yuan in investable assets, are either considering emigration through investment programs or are completing the emigration process.
The survey, conducted by China Merchants Bank and Bain & Co., also reports that 27% of those with more than 100 million yuan in investable assets have already emigrated and 47% of them are thinking about leaving the Motherland. The stunning results correspond to reports that the U.S. Treasury unit monitoring illegal money flows has, since the beginning of last summer, detected a surge in hidden cash transfers out of China.
The flood of “hot money” leaving China picked up in the last quarter of 2008. That was when the Chinese central government announced its stimulus plan, which initiated a new phase in the partial renationalization of the economy. Then, Premier Wen Jiabao started pouring state cash into the state sector and state financial institutions began diverting credit to state-sponsored infrastructure. As a result of the stimulus program, about 95% of China’s growth in 2009 was attributable to investment, and almost all of the investment had come from the state.
The percentage for 2010 will not be too far off of that. Beijing’s plan, however, was good for private entrepreneurs who, although shut out of many portions of the economy by state enterprises, rode the resulting asset bubbles to even greater wealth. The number of the country’s high net worth individuals according to the China Merchants-Bain study will reach 585,000 this year, almost double the figure for 2008.
The emigration of China’s wealthy has, not surprisingly, triggered controversy. “We have been working hard to develop the economy in the past 30 years, but now these elite members of society are fleeing with the majority of the wealth,” said economic analyst Zhong Dajun to the Global Times, the Communist Party-run newspaper. “The loss may be even higher than all the foreign investment we have attracted. It is as if, when the time of harvest comes, we find the fruits have all gone to others’ baskets.”
Forbes
Like or Dislike:
4 
0
1st November 2011 at 4:12 pm
Muck About says:
Holy Guano, Batperson!
Sounds like TEOTWAWKI to me. I was thinking about moving to Doug Casey’s version of “Grape Grope” down in Argentina but changed my mind when Missy K. was reelected. Now it would be like leaping out of boiling kettle of mush into a mushy kettle that’s boiling.
No place to hide!
MA
Like or Dislike:
4 
0
1st November 2011 at 5:10 pm