Bank Of Lynch Estimates TEPCO Losses Up To ¥10 Trillion, Believes Firm Is TBTF For Bond Impairments

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Wed, 03/30/2011 - 15:47 | 1118502 CD
CD's picture


Minor & not unexpected detail, in the grand scheme of things -- but unusual for IAEA to admit to problems:

 

IAEA worried about radiation in Japan village

VIENNA — Radiation levels recorded at a village outside the evacuation zone around the quake-striken Fukushima nuclear plant are above safe levels, the UN atomic watchdog said Wednesday.

The International Atomic Energy Agency said safe limits had been exceeded at Iitate village, 40 kilometres (25 miles) northwest of Fukushima, well outside the government-imposed 20 kilometre exclusion zone and the 30-kilometre "stay indoors" zone.

[...]

 

According to Elena Buglova, head of the IAEA's Incident and Emergency Centre, the reading in Iitate village was 2 megabecquerels per square metre. 

That was a "ratio about two times higher than levels" at which the agency recommends evacuations, she explained.

 

http://www.google.com/hostednews/afp/article/ALeqM5ggEDd3a7F7myZHkDkvyogDMF3Jcg?docId=CNG.05699daf45628fa5b4755fac509ba9e5.2e1

Wed, 03/30/2011 - 15:49 | 1118519 redpill
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Absolutely absurd that the evac zone is still only 20km given that the situation is out of control.

 

Wed, 03/30/2011 - 15:46 | 1118507 TraderMark
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Just make TEPCO a bank holding company under the Fed's wing.  Problem solved. 

Wed, 03/30/2011 - 15:48 | 1118510 redpill
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Luckily ¥10 Trillion isn't what it used to be.

Wed, 03/30/2011 - 15:50 | 1118522 Robot Traders Mom
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@ Tyler-I like Bank of Lynch, but can you start referring to them as Lynch America?

Wed, 03/30/2011 - 16:39 | 1118770 Dollar Bill Hiccup
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Sorry Mrs. Robo Mom, I missed your post before I posted below.

That's even funnier ...

Wed, 03/30/2011 - 15:58 | 1118542 plocequ1
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I am a Taxpayer. I will handle it.

Wed, 03/30/2011 - 15:59 | 1118547 RobotTrader
RobotTrader's picture

Ah, big deal...

Another problem to be swept under the rug.

Bank of Japan will print the necessary trillions, perhaps quadrillions of yen to paper over this problem.

Wed, 03/30/2011 - 16:02 | 1118575 monkeyfaction
monkeyfaction's picture

Holy fuck. Bonds are not supposed to be risk free. If you own bonds in a company that has the potential to cause a nuclear disaster or an Irish bank that lent $1000000000000 dollars to a homeless person you are taking on some of that risk. This TBTF shit has gone too far.

 

Wed, 03/30/2011 - 16:16 | 1118639 ZackAttack
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The Debt Peonage system only works if the rule of bondholders is upheld at all costs. This is why Ireland going off-script is so dangerous to the banksters. They'd do a partial default, the apocalypse wouldn't occur, and everyone else would be emboldened.

For Japan, let me make a guess about how the script plays out:

- TEPCO's bondholders are made whole

- TEPCO's private liabilities go onto the Japanese government's balance sheet

- ONLY after that happens, Merrill calls for the Japanese government to undertake severe austerity measures.

TaaaDaaaa!

Wed, 03/30/2011 - 17:13 | 1118913 oogs66
oogs66's picture

Agreed! I don't understand the argument for saving bondholders! Power will continue regardless of bondholders losing - as they should!!!

Wed, 03/30/2011 - 16:13 | 1118625 PulauHantu29
PulauHantu29's picture

So what are Japan's choices to pay the Trillions of Yen to rebuild, repair, bail out, etc.?

They can print and buy bonds flooding their markets with Yen (as Ben and the EU CB did);

or

Dump some of the US Treasuries to raise money and pay for the damages.Both are inflationary and the second would be very bad for the USA and prob bring Ben to tears.

Wed, 03/30/2011 - 16:20 | 1118675 DNB-sore
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are we seeing a bit of a free market? Someone is going to billed, lets put it in a share in debt per capita

Wed, 03/30/2011 - 16:38 | 1118757 Dollar Bill Hiccup
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Bank of Lynch, now that is very very funny.

Or maybe it's what comes to mind, bankers and a lynch mob ...

Wed, 03/30/2011 - 16:39 | 1118766 Bruce Krasting
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10 T divided by 82 comes to $121 billion. That is a lot of money. It is chump change if this goes bad. I am taking the 'over' from BAML on this one. Sorry.

Wed, 03/30/2011 - 17:14 | 1118917 Dollar Bill Hiccup
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A lot of money would be the $1Tn that we've pissed away in the desert sands of Iraq.

Assuming $5Bn a plant, you could build 200 nuclear plants with the latest technology for $1Tn. That's enough electricity to convert the entire gas fueled passenger fleet to electric while still doubling nuclear's share of electricity production (assumes 142Bn gallons gas @ 5.2Bn KWh w/ electric efficiency 4x, for 1.3Bn KWh needed, versus 2.4Bn KWh generated by 200 new plants).

It could be done. The US Navy has reactors inside of ships! Containment vessels could be made that are impregnable. It could be fail safe. Instead, we have private companies driven by greed to cut corners and make more profit. Nuclear CDOs.

Your over may come out something like that same $1Tn.

Wed, 03/30/2011 - 16:53 | 1118833 onlooker
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UPS trucks lined up at Fort Knox loading titanium bars for shipment to Tepco for conversion to T Bills to convert to US dollars. Pemco opts for titanium bars instead of T Bills. Titanium risk off. US dollar to be halfsized to reduce paper costs.

Wed, 03/30/2011 - 17:34 | 1119003 FischerBlack
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Bank of Lynch America Countrywide

Wed, 03/30/2011 - 21:42 | 1119832 RoRoTrader
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And the NIkki runs up 300 points........who would have thought?

But, that is money printing and not unlike the tsunami in its power, speed and surprise to overwhelm completely, either.

Watch for the Nikki daily to clear the 9800 200 MA. If that happens then its 1500 for the S&P.

The FED wants to see ZH "get its mind right".

Thu, 03/31/2011 - 06:53 | 1120658 ragedmaximus
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 SOMEHOW SOMEWAY the AMERICAN TAXPAYER will surely pay for this also.

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