ZeroHedge: Europe Imploding (Again) Following Another Ugly Italian Bond Auction!
- Do not be taken for a ride by all the politician snakes who say Greece will not default. Behind the scenes, they are preparing for that eventuality. The Illuminists are executing the total implosion of the Eurozone. Out of the ensuing chaos and war, they will raise their 10 horn Beast of Revelation 17.
Europe Imploding (Again) Following Another Ugly Italian Bond Auction, WSJ Article Discussing French Bank Nationalization
by Tyler Durden, http://www.zerohedge.com/
Despite another round of unsubstantiated rumor mongering by the FT yesterday (more on this in a second), investors in this morning’s critical round of Italian bond issuance were nonplussed and demanded 10 pounds of flesh with every bond, which in turn sent 5 year BTP yields to the highest since the introduction of the zEURo.
If the purpose of the planted Debtwire/FT story was to make this auction attractive, one can only conclude that it failed. The result is yet another “Europe is Open” type market session, where everything is tumbling on Greek default and contagion fear, further stoked by a front-page WSJ story which says what we have been warning about every single day for the past 3 weeks … : namely that banks, in this case French mega institution BNP, no longer have access to dollar funding markets.
The result: yet another increase in the actual 3M USD Libor rate, nearly the 40th day in a row, which in turn makes the dollar lock out even more painful. From the WSJ: “”We can no longer borrow dollars. U.S. money-market funds are not lending to us anymore,” a bank executive for BNP Paribas, who declines to be named, told me last week. “Since we don’t have access to dollars anymore, we’re creating a market in euros. This is a first. . . . we hope it will work, otherwise the downward spiral will be hell. We will no longer be trusted at all and no one will lend to us anymore.
He’s not the only one worried. Société Générale has lost 22.5% of its value since the beginning of the summer. In early September, BNP released a statement—in English, which is highly unusual—explaining that it has abundant dollar liquidity and that BNP has nothing to worry about, unlike other banks. France’s three biggest banks have been the subject of whisper campaigns about their solvency throughout the summer.” It gets worse: “Now that the situation is bordering on catastrophe, analysts are suggesting that the government is set to start nationalizing France’s banks. The banks have remained silent on the matter, and the government denies this talk.” Well, whatever good will the FT tried to create with its rumors,the WSJ destroyed with its facts.Backing up, here are the details of the latest set of atrocious Italian auctions:
… click here for full article!
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