{"id":17428,"date":"2012-01-23T10:20:40","date_gmt":"2012-01-23T15:20:40","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=17428"},"modified":"2016-09-20T11:09:23","modified_gmt":"2016-09-20T15:09:23","slug":"european-risk-aversion-turnaround-dont-blink","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2012\/01\/23\/european-risk-aversion-turnaround-dont-blink\/","title":{"rendered":"European Risk Aversion Turnaround (Don&#8217;t Blink)"},"content":{"rendered":"<p style=\"text-align: right;\"><a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/2012\/01\/22\/tdi-podcast-how-to-spot-a-breakout-trigger-points-and-market-predictions-by-them-237\/\"><strong>Click for this week&#8217;s TDI Podcast<\/strong><\/a><\/p>\n<p>How is this for a change? What a difference a couple of weeks (and a $90 billion backdoor bailout from the U.S. Fed) makes&#8230;. The charts tell the story.<\/p>\n<p>The Euro 3m Basis Swap has gone from -170 to -76. Impressive change of sentiment.<!--more--><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/eubs_1222012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12287\" title=\"eubs_1222012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/eubs_1222012.jpg\" alt=\"\" width=\"371\" height=\"244\" \/><\/a><\/p>\n<p>At the same time the amount of money at deposit by financial institutions with the ECB hit a high. This is contradictory to the above and other measures that show banks willingness to lend to each other.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/ecbovernight_01222012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12288\" title=\"ecbovernight_01222012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/ecbovernight_01222012.jpg\" alt=\"\" width=\"388\" height=\"244\" \/><\/a><\/p>\n<p>The cost of insuring bank debt is receding.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/cds_01272012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12289\" title=\"cds_01272012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/cds_01272012.jpg\" alt=\"\" width=\"375\" height=\"251\" \/><\/a><\/p>\n<p>And,the Libor spread is starting to calm down.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/libor_01222012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12290\" title=\"libor_01222012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/libor_01222012.jpg\" alt=\"\" width=\"386\" height=\"253\" \/><\/a><\/p>\n<p>As this occurs,the crossover index is starting to move lower.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/crossiover_01222012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12291\" title=\"crossiover_01222012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/crossiover_01222012.jpg\" alt=\"\" width=\"379\" height=\"256\" \/><\/a><\/p>\n<p>With all the above, investors are getting a bit more cozy with the idea that banks may have seen the worst of it and are backing up the truck to buy shares.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/eurobanks_01222012.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12292\" title=\"eurobanks_01222012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/01\/eurobanks_01222012.jpg\" alt=\"\" width=\"391\" height=\"240\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Click for this week&#8217;s TDI Podcast How is this for a change? What a difference a couple of weeks (and a $90 billion backdoor bailout from the U.S. Fed) makes&#8230;. The charts tell the story. The Euro 3m Basis Swap has gone from -170 to -76. Impressive change of sentiment.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,12],"tags":[481],"class_list":["post-17428","post","type-post","status-publish","format-standard","hentry","category-economy","category-markets","tag-economy","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/17428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=17428"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/17428\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=17428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=17428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=17428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}