Well, gas has already NOT dropped with the price of oil, so why not QE some more and **** in the ass sideways with the baseball bat this time - just for a change of routine.

This **** must END.

Spain to Charge at Least 8.5% for Loans to Banks



Sure, they're "loans"... of course they are...

http://www.cnbc.com/id/47790286

10y Spain open 6.747% now 6.673% 6.754%
5y Spain open 6.125% now 5.984% 6.074%

10y Italy open 6.222% now 6.083% 6.228%

maybe the panic starts early?

10y Spain at the high of the day 6.77%

Isn't 7% some sort of a 'line in the sand' for the Spanish 10 yr?

Hipho - Long term that's the number I've seen (same for Italy). The real action however is at the short end, in the 2-5 year stuff, that they need to re-fund maturing debt. So far it is painful but not the end of the world, but if rates continue to rise...

Yeah, just something I remember reading, probably in this thread. I don't really think any of these 'targets' mean much - it will blow up when it blows up - but interesting when a target does approach to see what, if anything, happens. Usually it's a rally. Agree that the short-term debt is more critical at this stage..

So I can borrow 30 years at 3% and these sovereign's are paying almost 7 for 10? LMAO! Yeah they are done.

Spain's Minister of Finance and Public Administration, Cristobal Montoro reiterated the Spanish Government's position to the EU as reported here: http://www.expansion.com/agencia/europa_....

Quote:

Montoro advocates "more Europe" and is committed to the euro, structural reforms and a balanced budget.

"We are at the moment of truth for Europe, the 'to be, or not to be' moment, and I'm sure we'll choose 'to be'," he added.

I'm sure he was being deliberately optimistic, but I think the message is clear that his main intent was to put the ball clearly in the EU's court.

Quote:

'to be, or not to be'

Hamlet wrote..

Alas, poor Euroic! I knew him, Horatio: a fellow
of infinite jest, of most excellent fancy: he hath
borne me on his back a thousand times; and now, how
abhorred in my imagination it is!

Apologies to Shakespeare.

UPDATE: Moody's Downgrades 12 Spanish Sub-Sovereigns, 2 Gov-Related Entities
http://online.wsj.com/article/BT-CO-2012....

Take a good look at the list.

Catalonia is NOT ON the list, and Catalonia is one of the regions in the “most broke” category along with the likes of Andalusia.

Oh, and Galicia is ON the list. Galicia is one of only 3 regions NOT to participate in the central government’s bailout of unpaid bills (because Galicia is current with its obligations). http://www.lavanguardia.com/politica/201.... (I can’t find that in English – the English foreign correspondents are probably still waiting on their translator to recover from last night’s hangover.)

Go figure.

The same folks who told us that the MBS were AAA in 2008. Un huh.
_______________________________________________________

What’s the deal with these guys? I don’t think it’s too awfully plausible to say that they’re incompetent. It’s not like they are foreign journalists who can’t speak the language and are only concerned about where the mid-week parties are tonight and getting their weekend plans organized around the next bullfight.

The ratings people are supposed to be numbers crunchers, and the “language” of numbers is the same all around the world. And the slide rule types are not usually found on the party circuit. They’re certainly not incompetent idiots either, would you say? So would that leave us to conclude that they are corrupt?

Is Buffett long U.S. Treasuries?

Spain PM pleads for political, fiscal unity in Europe
http://ca.reuters.com/article/topNews/id....

Quote:

"Europe has to transmit to the world that the euro is an irreversible project," he said.

Sound like a "plea" to you? Or more like "in your face" Europe?

Ball's in your court Europe (same thing as yesterday, same thing today, and it ain't goin' away).

Just like it was before the 100 Billion euro line of credit was negociated, and we know who came out on top with that one as well.

(Take this "test". Turn the sound off - unless you understand Spanish - watch this video, and as yourself, does he look like someone who is pleading? Or more like someone laying out a plan of action, like a CEO talking to his company? http://www.rtve.es/alacarta/videos/notic.... )

Spanish and EU background info from John Mauldin

While I disagree with John when he likens the Spanish bailout to those for the other bailed out countries (apples and oranges – one is a sector bailout like that in the U.S., U.K., Germany and others, and the others are governments who were unable to finance themselves), and what I think is his overly negative view of Spain in general (oh, and that text message, again), I tend to agree with the “inside” article by Charles Gave titled Federalism, Debt Traps and Competition, especially when narrowing in on who is the main beneficiary of the Euro and who would pay the most for a break up. In that regard, he is spot on I think, and in good company with many other analysts’ opinions I’ve read recently. (But don’t get me wrong, I don’t agree with everything he says either, especial when he says that improvement in competitiveness “cannot be done under a monetary union”, as shared risk/reward is obviously better that the contrary in my way of thinking, but that’s not the point – the point is to share and debate stimulating knowledge and opinions.)

Moral of the story for Germany IMHO: You can’t have your cake and eat it too.

Someone in Europe needs to do an about face very soon or plan on paying the piper (truth be said, I kind of think they’re going to be paying the piper either way and that it’s just a matter a choosing which is the cheapest).

Spain €100 billion Bank Bailout Necessary But Not Sufficient, Italy Federalism, Debt Traps and Competition
By: John_Mauldin
http://www.marketoracle.co.uk/Article351....

Add: BTW, does anyone think the negatives (damned if they do, damned if they don't) are already priced in?

Thanks, Highrev, good stuff

Very close to 7% now on the 10 yr:

6.99500 0.12100 1.76%

http://www.bloomberg.com/quote/GSPG10YR:....

Market not liking Spain being in the crosshairs now.

That was fast, just refreshed and it's selling off pretty well now.

7.02800 0.15400 2.24%

Yield starting to go parabolic on the day - relatively speaking.

7.10900 0.23500 3.42%

7.135% 5y 6.502% !!

behave as children none to do responsible like balance budget ??in every country only a distraction as they rob us blind to bind and control,,,,corruption....somone please flush the toilet when the lights go out !!!! perilious times indeed..... Where did i see that phrase before ???

Holy ****. Spanish yields are blowing out this morning....

10y 7.231% high 7.285%
5y 6.68% high 6.733%

I wonder when the EU will start buying the bonds to try to push rates back down? If they do that then it will probably accelerate the rise.

10y Spain 7.176% down a bit

For those who can exit, why wait around to see your claims subordinated should the ESM get ratified?

And isn't this the 800-pound gorilla?