Despite Portuguese Bailout Deal, Expected To Push Country Into 2 Year Recession, Yield On Its 3 Month T-Bill Auction Rises To Record

Tyler Durden's picture

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TheGreatPonzi's picture

Where does all the money of the bailouts come from, if not the debt rolling of central eurozone countries? Ponzi, bitches. 

PY-129-20's picture

We paid more than a trillion to rebuild the Eastern part of our country after the reunification. Now, we will pay probably the same amount to bailout our neighbours (and to give it back to our banks (Deutsche Banksters) and other European banks) who will not like us anyway...this sucks.

PY-129-20's picture

Meanwhile, Germany isn't the country I used to grow up. I feel like Aristarchan. Good times are definitely over.

vocational tainee's picture

How much tax did you pay for the last year?

oogs66's picture

you guys need to get over your guilt before it drags you into bankruptcy like the rest of the world

Burnsy's picture

Extend and pretend is your friend. Buy Euros, and don't forget to lever up

Sudden Debt's picture

I'm becoming a old man...

I used to grow up in a time... long long ago... where 78 billion euro used to be quite a lot of money.


The Euro is doomed.

We should return to the latin currency system whit the silver and gold standard.

I don't mind they print money like there is no tomorrow. As long as it's made out of silver or gold.

And that's how the latin currency system worked! Anybody could mint money as much as they wanted! As long as the silver was 0.9 and also the gold.

If you where broke and had a few gold mines: No problemo!

If you where broke and had NO gold mines : Fucked => sell assets or default.

And the currency in the group remains healthy. Even if everybody was minting like crazy.


TheGreatPonzi's picture

"We should return to the latin currency system whit the silver and gold standard."

I agree, it was the best system. The Eurozone already existed during Napoleon times, but with sound money instead of fiat. 

Sudden Debt's picture

I looked up the news about portugal in my newspaper this morning.

page 27...



We just keep printing money so the banks don't need to take a haircut.

This is nothing more than bank bailout v92.651

In a healthy economic environment, they should default and start all over again.

And banks need to suffer the consequences, even if it could brake them.

Investing = risks



Alex Kintner's picture

Who needs an Economics degree in this US form of capitalism. I just picked up copies  of "The Complete Idiots Guide To Looting The Taxpayers" and "Care And Feeding Of Your Personal Corrupt Senator". Real page turners.

Burnsy's picture

I know, right? Like it's pocket change. 78bn here, 78 Bn there, pretty soon you're talking real money

kapillar's picture

Right. I remember those days to be especially enjoyable.

Josephine29's picture

This leeway on the fiscal deficit is a mirage that has fooled some but not the analysis below.

If we recall that Eurostat had looked at Portugal’s fiscal defict figures and re-written them the fact is that the original plan was now unviable. So yes Mr.Socrates is trying to misleadingly take the credit for a sequence of numbers which may look better to the uninitiated but in fact show that Portugal’s position has deteriorated yet again.


For the year just ended Mr. Socrates’s government had originally declared a fiscal deficit of 6.8% of GDP and declared it a great success as this number beat its target of 7.3% of GDP. Unfortunately for his numerical fantasies Eurostat then looked at the numbers and decided that the true number was 8.6% and then upon a closer examination decided it was 9.1%. Some might call this an attempt at misrepresentation whereas Mr.Socrates’s government calls it a "methodological dialogue".


No wonder yields are again higher on her Treasury Bills!

irishlink's picture

One knows how much seriously underwater assets are on the books of the world banks when you see the levels of Tier 1 capital that must be raised over the next few months. Who is going to provide all this money? The whole western world is in the market et the same time Squeese!!!!!

oogs66's picture

So 78 billion coming from EU/IMF.  If 50% comes from IMF, that's 39 Eur from IMF.  Assume the U.S. is responsible for 40% of that (more than we are supposed to commit to, but I'm assuming a lot of countries refuse to pony up for this).  So that's 15.5 billion Eur or $23 billion the U.S. needs to give.  Do we have that sort of money lying around or do we need to borrow?  Won't this increase our race to hitting the debt ceiling?

writingsonthewall's picture

You've got to admire the Ponzi masters - everytime they meet and obstacle they run it down with some crazy economics.

What's particularly unnerving is that unlike in the US and the UK - this money for bailouts cannot be printed - so someone is actually lending this money (Germany, France)

This is probably a good thing as the end will come sooner once the German and French people are presented with the bill.

Does anyone remember the heady days of this?

Classic - love the internet - lets you trap the critters for what they said before - unlike the MSM who have 'very short memories' and a piss poor ability to challenge the most incredible bullshit spouted by politico's.

gookempucky's picture

Truly falsifying hope and the grand illusion--cds rates continue to climb as Grease carries around 1400 bps--the system continues to make a square tire and cannot figure out the reason it goes WOMP WOMP WOMP. Others Pension Funds are in the same cliff jumpers club. It is TOTAL digital madness.

Arizona Public Safety Personnel Retirement System is planning to increase its allocation to hedge funds, HFMWeek reports. The board of the $6.1 billion system aims to invest around $60 million to Goldman Sachs Asset Management. The board of trustees may be allocating up to $50 million to New York-based hedge fund firm, Gracie Capital’s Credit Opportunities Fund. PSPRS is also allocating $40 million to EJF Asset Management’s Debt Opportunities Fund and $60 million to the Oaktree Capital Managements European Principal

Pissing into the wind.


markar's picture

After all the sht that's come out about GS front running and betting against their clients who would give them $6 let alone $60 mil to invest?