This page has been archived and commenting is disabled.

Bailout #3 Coming: Bank Of Portugal Says Could Use External Financial Support

Tyler Durden's picture


The Bank of Portugal adds that foreign aid would cushion adjustment. And so bailout #3 is virtually in the books. Which means another country is now going to rely exclusively on the ECB. The half life between bailouts is collapsing. Next up Spain.

More as we get it.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/10/2011 - 17:11 | Link to Comment Ancona
Ancona's picture

Sure....why not? How about bailing out...well.....everyone? After all, it's not money we have to pay back or anything.



Mon, 01/10/2011 - 18:26 | Link to Comment midtowng
midtowng's picture

Once Portugal goes down there are no more "firewalls" before Spain, and Spain will be the end of the Euro as we know it.

And let's not forget Belgium and Italy.

Mon, 01/10/2011 - 22:27 | Link to Comment StychoKiller
StychoKiller's picture

I find I

Could Use External Financial Support

Gold Maple Leafs only, no Fiat please!

Mon, 01/10/2011 - 17:14 | Link to Comment Stuart
Stuart's picture

Soon followed by Illinois within days.... unless they get a 75% tax hike.... er, ya.

Mon, 01/10/2011 - 17:17 | Link to Comment Sudden Debt
Sudden Debt's picture


For every 2000$ you make, after a 75% tax, you still have enough to buy a IPAD!!

(not the 3G version of course... without the apps, and what was the min. storage space again?)


Mon, 01/10/2011 - 17:21 | Link to Comment No Mas
No Mas's picture

Tax increase won't do it; the unions will just suck up the extra money.

Ben will take care of the state's debt problem and report income from doing it!

By the way, AA looking great, so where's Tyler to tell us the earnings don't mean a thing, margin compression, blah, blah, blah.

The real world is simply kicking the doomer's ass.

And my god, has Harry been right about AAPL!!!  Maybe Tyler or Reggie (what's up with RIMM doing all better and shit?) can chime in and comfort the doomers as the real world just keeps on gettin' better.

Mon, 01/10/2011 - 20:55 | Link to Comment r3ardensteel
r3ardensteel's picture

Nice try, Ben Bernanke.

Mon, 01/10/2011 - 17:16 | Link to Comment Sudden Debt
Sudden Debt's picture

I wonder how many cookies remain in the ECB cooky jar....

Tue, 01/11/2011 - 08:42 | Link to Comment fredquimby
fredquimby's picture

According to their Balance sheet.....quite alot

They just did their 3 monthly MTM so are a whole bunch richer than when they did it in October....

And to borrow some ECB analysis from FOFOA

As at Dec 31st 2010

"Gold: EUR 1055.418 per fine oz.

USD: 1.3362 per EUR

JPY: 108.65 per EUR

Special drawing rights: EUR 1.1572 per SDR

These four lines are the "market snapshot" that is taken once every three months. It is a snapshot of the euro's market price as it floats against four different benchmarks or reference points. It is used to calculate the weight of those most valuable line items to any Central Banker, the reserves that cannot be printed and are therefore used to defend and evaluate that which can be printed. This snapshot will be used for the next 90 days.

For comparison, here's the last "snapshot" taken on Oct. 1, 2010:

Gold: EUR 960.580 per fine oz.

USD: 1.3648 per EUR

JPY: 113.68 per EUR

Special drawing rights: EUR 1.1399 per SDR

Right off the bat you should notice an interesting thing. Look at the percentage of the euro's change against the other fiat currencies. 2.1% change against the dollar. 4.6% against the yen. And only 1.5% against the SDR. They are all falling in tandem! Yet there's a 9.9% change against gold over the same time period. What you are witnessing here is the emergence of a true leader, the benchmark or Reference Point par excellence, from the rest of the pack of potential "reference point contenders."

This is why the Euro will be fine IMO. It was built knowing the situation with the USD was not going to get any better....

Mon, 01/10/2011 - 17:17 | Link to Comment inkt2002
inkt2002's picture

this is very bullish for stock

Mon, 01/10/2011 - 17:22 | Link to Comment Sudden Debt
Sudden Debt's picture

as money becomes worthless...




And for our Chinese friends who will soon join us in the bailout/buyout of Europe:


Mon, 01/10/2011 - 17:20 | Link to Comment Traianus Augustus
Traianus Augustus's picture

TIMBER!!!!!  Oh, no wait a minute...captured market...never mind.

Mon, 01/10/2011 - 18:09 | Link to Comment terranstyler
terranstyler's picture

Please stick to ZH etiquette and add the word "bitchez".

Mon, 01/10/2011 - 21:17 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

with appropriate smattering of spellign mistakes

Mon, 01/10/2011 - 22:56 | Link to Comment Traianus Augustus
Traianus Augustus's picture

Timber bitchez!!!  Never mind...

Mon, 01/10/2011 - 21:31 | Link to Comment nonclaim
nonclaim's picture


Mon, 01/10/2011 - 21:31 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Nobody seems to care in the us markets as usual that the world is going broke.

Mon, 01/10/2011 - 17:23 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Will Germans take their ball home rather than play financial suicide?

Find out in the next episode of 'The Days of Our PIIGS+UK.'

Mon, 01/10/2011 - 17:46 | Link to Comment Dismal Scientist
Dismal Scientist's picture

The average German is currently happier than for a long time. Xmas showed consumer confidence is running high. They have found the key to their wallets finally. That means things are not bad enough for Merkel to make political capital out of withdrawing.

I would also point out that the German banking system is still highly geared to the collapse of the periphery. Merkel cannot just withdraw, but rather manoeuvre within the construct. So far, she is winning.

Mon, 01/10/2011 - 20:50 | Link to Comment Ahmeexnal
Ahmeexnal's picture

The biggest lie is that Germany is "bailing" out the PIIGS. In reality, Germany is turning the PIIGS into serfs. The "polar negroes" will work their asses off for generations just to pay the interests to the German banks who "bailed" them out WITH MONEY THEY -the Germans- DIDN'T HAVE!

This time around, the road to serfdom started with the Euro project.

Mon, 01/10/2011 - 22:33 | Link to Comment StychoKiller
StychoKiller's picture

When one looks at all the various inter-connected loaning in Europe, along with the USA, one can only conclude that this is some sort of shell game -- everyone "thinks" there's really a pea under one of the shells!  Too bad, so sad!

Tue, 01/11/2011 - 06:55 | Link to Comment dough eating squid
dough eating squid's picture


German banksters are the worst

Mon, 01/10/2011 - 17:56 | Link to Comment uranian
uranian's picture

We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power (bitches).

Mon, 01/10/2011 - 18:02 | Link to Comment Convolved Man
Convolved Man's picture

The ECB is not making the financial rescue interesting to the world's masses.  They should institute grudge matches for sovereign bond buys.  Tags teams would be permissible, like Portugal and Ireland against Spain and Greece.  Each week a new match, with numerous contestants from the PIIGS.

A U.S. version with the states fighting over muni-bond purchases by global hedge funds. 

ETFs indexed to contestants ...

On-line gambling ...

Internet and cable syndication ...

Call it the WBWF, the World Bond Wrestling Federation.

... Sorry, got carried away -- just use the equity, bond, derivative and FX markets to place your bets.

Mon, 01/10/2011 - 18:20 | Link to Comment small watcher
small watcher's picture

Great. Now I've got the following imaginary bump stuck in my head:

Be sure to sign up for Bailout Mania III, only on pay-per-view.

Now back to WBWF Monday Night RAW.

Mon, 01/10/2011 - 18:10 | Link to Comment buzzsaw99
buzzsaw99's picture

This is how PIIGS fly.

Mon, 01/10/2011 - 18:15 | Link to Comment NumberNone
NumberNone's picture

Here you go Portugal, enjoy your money!  Fuck off California!

Mon, 01/10/2011 - 18:24 | Link to Comment plocequ1
plocequ1's picture

As long as they can keep doing it, I guess math is nothing but a once revered concept that today is nothing but Dogshit. E=mc2 is no more. You hear that Einstein? The quants have defeated you. No disrespect. Sir Albert.

Mon, 01/10/2011 - 18:31 | Link to Comment gwar5
gwar5's picture

That was quick.

Mon, 01/10/2011 - 18:36 | Link to Comment franzpick
franzpick's picture

The breadth and extent of the worldwide debt collapse, vs. Germany's relative strength, means that time is on Merkels side; all she has to do is avoid shooting herself in the foot until such time as the deterioration suddenly becomes so severe that keeping Germany out of the conflagration becomes the popular political stance.

Mon, 01/10/2011 - 19:07 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Europe's hot patato of debt will end with Spain.

Mon, 01/10/2011 - 19:27 | Link to Comment Everybodys All ...
Everybodys All American's picture

The real problem I believe begins when one of these rescued PIGS goes off on it's own like Iceland and decides it's not going to stick it to their tax payers but rather to the bonds or debt holders. THEN the real game begins. Stay tuned.

Mon, 01/10/2011 - 19:59 | Link to Comment claycalhoun
claycalhoun's picture

There is no way Ireland or Greece can live with the conditions that are imposed on them, however there will be no more rescues, just default!!

Mon, 01/10/2011 - 20:53 | Link to Comment Mr.Kowalski
Mr.Kowalski's picture

Ah yes.. I see it's Portugal's turn to try on the shackles of indentured servitude. As I've always said, one day one of these nations will simply say no like Iceland did. Ireland's elections will be interesting. 

Mon, 01/10/2011 - 22:14 | Link to Comment Buck Johnson
Buck Johnson's picture

You are correct, Portugal is being used as a firewall for Spain and it won't work.  One day we are going to wake up one morning in the US and find out that Germany decided to leave the Euro and move back to their own currency.  They might as well since they and France are subsidizing their own banks who lent money to these countries.

Do NOT follow this link or you will be banned from the site!