A "Drowning" Portugal To Seek Bailout By April

Tyler Durden's picture

And so the first European domino, following in the footsteps of Greece and Ireland from 2010, is made known. Per Reuters: "European Union member states are increasingly concerned about Portugal's ability to fund itself in financial markets and believe Lisbon will have to seek a bailout by April, a euro zone source said on Thursday. The EU has a rescue plan ready for Portugal, but it is dependent on Lisbon asking for the aid and making that request to both the EU and the International Monetary Fund. Portugal remains adamantly opposed to asking for assistance. "Portugal is drowning. It's not going to be able to hold on beyond the end of March," the euro zone source said. "That's already understood to be the case in financial markets, but now it's also understood among (EU) finance ministers." Time for that European Stress Test v2 to convince us just how good everything is. As for Birinyi's S&P target, we are firmly convinced that that will be attained within a year: it is hardly a coincidence that a moonlighting Gideon Gono has been seen operating the Fed's POMO desk on those days when the hunogver NYU interns are out on Stabucks runs.

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johnQpublic's picture

dance like marionettes,

swayin to the

symphony of destruction

Ted K's picture

You guys are killing me with this Birinyi stuff---too funny.  He used to be a good analyst in the late '80s on Louis Rukeyser's show.  I guess he started drinking the Kool-Aid the same time hedge funds started the derivatives insanity???  Anyway you should club him to death with that prediction, what a jack-ass.  "Kermit the jack-ass".

DavidC's picture

Yeah, but...
S&P, Russell, Dow all at new highs since 2008, must be good, no?


UGrev's picture

Wow.. Starbucks sold the "R" in their name for an undisclosed sum and has opened 100 more stores in Portugal under the new name "Stabucks". Because people want their latte's in their bellies and their bucks to "sta[y]" in their wallet. ;p

-end horrific attempt at humor.

TooBearish's picture

Bailout?! - Buy the EUR - moonshot baby Laslo is spot on - free money for everyone!

Zero Govt's picture

Time for that European Stress Test v2....   Mwhahaha ;))))

...is V2 as good as V1 ? ..Mwahaha ..how is QE2, is it as good as QE1 ? ..Mwahaha

...someone stop this farcical politico-bwanker clown show my sides are already split, my pants already pissed and been rolling about on the floor so much i've carpet burns for life! 

EscapeKey's picture

...still waiting for the main story. Spain.

Oh regional Indian's picture

Bingo Escape. Spot on.

Iceland, Ireland, portugal, Spain.... see a neat spiral heading around the preiphary of Europe towards....Germany?

Very interesting.



serotonindumptruck's picture

Perhaps Merkel will reintroduce the Deutsche Mark and peg it to a gold standard.

PY-129-20's picture

haha - now that would be...great. But as a German, I don't see that coming. If this continues, we will have another Egypt here.

M.B. Drapier's picture

Why would Merkel ever do that? The whole object of the exercise is to get the periphery's taxpayers to bail out the core's insolvent banks. Dumping the Euro would not be conducive to this...

Id fight Gandhi's picture

Spain will be on all fours this year too. 10 year over 7% for any period of time as in portugals case is bailout time.

Markets of course will love it as these distressed problems are solved.

Oh btw did Greece and Ireland get that 30 year extension on the loans? That story trickled out when egypt fell apart.

M.B. Drapier's picture

No: no revisions so far since the Greeks got a term extension to match Ireland's.

unky's picture

fcuk ! cant u wait until tomorrow with this news! i still need to buy some silver with my remaining €s

DonnieD's picture

I think the plan is to space out EU bankruptcy's every 3 months so no one seems to notice. Spain is in the on-deck circle.

Dick Darlington's picture

It sure did take a looong time for EU to check what time it is. Unforunately the same shell game will continue with more denial. Spain is next, no doubt, despite the recent optimism created out of thin air like the dollars FED is printing. EU will deny there's further bail outs in pipeline just like they have done so far but the time is running out. It's too late.

jus_lite_reading's picture

Bailout? WHY? Everything is great- 20% unemployment, negative GDP and a rising DAX means all is well in old Europe...



PY-129-20's picture

Yes, everything is great. I agree. Where is my Deutsche Mark? :/

And whatever they say - don't trust them. Don't trust any government at the moment.

Attitude_Check's picture

Is the world financial crisis entering the mid-game now?  Silver short squeeze, MERS capitulating due to multiple court rulings against them, Portugal joining Greece and Ireland, Riots in the Middle east, Riots in Madison Wis (sorry that last one was redundant).

Terminus C's picture

Nah, we are nearing the end of the beginning.

irishlink's picture

The real news  happens when Greece and Ireland have to return to the troughs for more. The are not called PIGGS for nothing! 

topcallingtroll's picture

Hehehe.......so true! I cant wait to see what happens when the german public realizes that they will be subsidizing the south forever. LMFAO!

TemporalFlashback's picture

Gideon Gono wrote the NYU students' textbooks.

e_u_r_o's picture

how is euro still so high

youngman's picture

How is the dollar so high?

unky's picture

yes please keep the euro at this level until tomorrow...

margaris's picture

EUR and USD holding hands while falling into the abyss ...

Like a suicidal couple, they will part together looking each other in the eyes... lol


PY-129-20's picture

Now, they will form the Eurodollar - or Dollareuro - whatever you like. Or the new "Globo". haha...

Vacca's picture

The first domino follows in the footsteps? Say what?

Seasmoke's picture

just like clock work !

unky's picture

what event triggered the silver hike today, i would appreciate some concrete answers...

FunkyMonkeyBoy's picture

Short squeeze against the evil that runs amuck on this planet...

... I hear Blythe Masters was seen deciding which window to jump out of when the time comes... as long as that b**ch meets her maker, i care not.

unky's picture

yes, but this was already known weeks ago. something must have triggered the event. you understand what i mean?


by the way: what happened with the silverkeiser scam? i just read through it and found out you posted about it in previous threads. did you get your coins after all? did you get your money back? would be interesting to hear...

FunkyMonkeyBoy's picture

Nope, i've heard nothing from the silver keiser scumbags (www.silverkeiser.com www.bidbullion.com). I can't belive there aren't more people p**sed off by this scam!? It looks like they have gotten away with over $5m of people's money!

Why is nobody even bothered about this!?

Back to your original query, I think the surge in silver is due to the shortage in the silver market at present, plus shorters getting squeezed hard and the delivery needed by crimex in March... looks like a perfect storm brewing in silver.

unky's picture

today was the first time i read about this silverkeiser-scam and i also was suprised that it didnt hit more people. i even started a google search and only found the posts in zerohedge and very few other websites.

luckily i just order from my local coin shop here in germany only. the silver price is already high enough, so nothing to waste for this kind of scam companies. i prefer maple leafs as they are now among the cheapest coins here and also look beautiful compared to the philamonics

John McCloy's picture

Hey..cmon..What's a few million or billion when were dealing with quadriollions. Ben already shot us off into outer space with logical numbers when he went Plaid with Spaceball 1 at Jackson Hole. 

    Judging by the way Ireland is handling everything I think we may have to pick up speed even further. "Mr. Sulu...Warp 1"

The Axe's picture

No one cares....or the EUR would be crashing....only the dollar is crashing...wtf

falak pema's picture

Yen, dollar, euro : same misery. Nowhere to run nowhere to hide.

Unless you're a ZH contrarian and then its PM all the way.

Quintus's picture

Wait...you mean that the problems in the Eurozone have not been fixed just because some politicians stood in front of a camera and said they were?  I'm shocked!  Shocked!

Next thing, you'll be telling me that the rampant inflationary effects of the Fed's policy have not been sidestepped just because Ben said they have.

falak pema's picture

Hey, Blythe went to Cambridge. To think that the place that produced Joan Robinson, the greatest economist NOT to have received a Nobel for her work on inefficiency of markets and emergence of oligopolistic dominant positions,  also produced Blythe Masters...jumping Jehophat there is no consistency in life!

Vampyroteuthis infernalis's picture

Joan told the truth. To win a Nobel, you have to make up a story and preach to the PC commies in Stockholm what they want to hear. For example, Krugman and Gore.

squexx's picture

That or be a "magic negro" who whose only qualifications are working for a corrupt outfit like ACORN and one year experience as a junior senator. Don't forget Obama's world class telepromter reading ability!

M.B. Drapier's picture

Portugal remains adamantly opposed to asking for assistance.

Smart kids.

"Portugal is drowning. It's not going to be able to hold on beyond the end of March," the euro zone source said.

Awkwardly, it seems there are German regional elections on 20 and 27 March, either side of the big EU meeting.

TheGreatPonzi's picture

The end game might come before that: the Irish elections are in 7 days precisely, and only 4% of voters support the current coalition. 75% want the bailout renegociated. 

Then there can be two cases :

- A ridiculous and treacherous "renegociation", where the bondholders are not hurt

- A bond haircut = endgame 

M.B. Drapier's picture

And the answer is: Case 1. Well, almost. The three major political parties in the Rep. of Ireland are now all talking about how they'll burn the senior bank debt - or at least the maybe half of it which isn't covered by the government guarantee - but only by agreement with our European partners! Meanwhile our European partners are absolutely refusing to agree to anything of the sort. It's pretty brutal really: the EU isn't even giving the Irish political class the cover of meandering phony negotiations to hide behind. Nonetheless, the new government is almost certainly going to keep trying to pretend as long as possible. (I've seen rumours of some kind of haircut to Anglo Irish Bank senior debt planned for right after the election, but this seems extremely unlikely.) Probably this will go on until the EU is good and ready for some kind of centralised bank bailout - maybe even senior-debt haircuts! - or until the matter really hits the fan, whichever comes first. In the near term, the next development will probably be another €10bn or so going into the banks in March.

eyeontheball's picture

"dependent on Lisbon asking for the aid and making that request to both the EU and the International Monetary Fund. "

just like a vampire having to be invited in before sucking all of your blood

Buck Johnson's picture

Your correct, also the EU is in a bind.  If they don't ask, how can you then go and save them with a loan and the rules that govern it.  They could easily say that we never asked for it and then how can you explain to your country or countries why you went to save a country that said that they didn't want it.  That would open them up to evidence that the money isn't to bail out said countries banks, but the loans and bonds that the other EU banks bought and loaned to said country.