Erik Nielsen On Europe Past And (Immediate And Rosy) Future

Tyler Durden's picture

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ZeroPower's picture

 On a more serious note, it didn’t surprise me, and it doesn’t bother me the slightest.  With all due respect, the ratings agencies have proven themselves (again) in this crisis to be lagging indicators of onset of crisis – and of the recovery.


Lagging indicators? So we should only listen to them about a year or so after they rate a company/country?

Paladin en passant's picture

Dear Erik,

Glad to hear everything's swimmingly fine.  Let's all plan on taking the month of August off to tour our favourite spots.  We need the rest and relaxation after these recent "troubles".


Reality's gone somewhere else

Trimmed Hedge's picture

Well, this is about Bernanke. This is about Bernanke. He has to be on that call. Forget the investors. The investors are gonna do- If Bernanke listens- Bernanke needs to open the discount window. That's how bad things are out there. Bernanke needs to focus on this. Alan Greenspan told everyone to take a teaser rate, then raised the rate 17 times? And Bernanke is being an academic. It is no time to be an academic. It is time to get on the Bear Stearns call. Listen. Open the darn Fed window. He has NO IDEA how bad it is out there. He has NO IDEA! He has NO IDEA! I have talked to the heads of almost every single one of these firms in the last 72 hours and he has NO IDEA what it’s like out there! NONE! And Bill Poole has NO IDEA what it’s like out there. My people have been in this game for 25 years, and they are losing their jobs and these firms are gonna go out of business and HE’S NUTS! THEY’RE NUTS! THEY KNOW NOTHING!

I have not seen it like this since I went 5-bid for half a million shares of Citigroup and I got hit in 1990. This is a different kind of market. And the Fed is ASLEEP! Well, Bill Poole is a shame. He’s SHAMEFUL! He ought to go and read the Accredited Home document, at least I read the darn thing.

You can’t get a darn loan if you’re rich like me.

Mitchman's picture

Bernanke is not going to act until it is too late.  If things were that bad, your high-powered friends would have called him already and roused him from his reveries.  I don't mean to be disrespectful, but I worked with those guys too and know how they act and think.  And they view Bennie as their puppet-somebody to be worked around and not worked with.  They view him as small time and small potatoes.  Someone who can be easily manipulated and even more easily bought.  I know.  

Monkey Craig's picture

That is classic...thanks so much for posting this.


Dude sounds like a fucktard

Mitchman's picture

Please forgive me.  I am having trouble understanding both the posts.  I am relatively new here so may be slow on the uptake.

Needless to say, I am assuming that using Mr. Cramer as an authority on anything is a helthy helping of sarcasm.   Every post I have seen of him on this page has contained a fair amount of derision relating to every word he says as well the words of his cohort in the attached video.  The only legitimate purpose for the video would be to substantiate an argument wher the argument is "even a stopped clock is right twice a day."  But again, forgive me if I misunderstood.

The only other point that I am making is one that relates to the opening of the discount window.  In the post "When Do Treasuries Crash" as authored by Mr. Napier, there is a chart that indicated that cash as a percentage of bank assets has skyrocketed since 2009.  So why the need to open the discount window and if there is a need, for whom? 

ZeroPower's picture

Youre correct about the Cramer musings - even though he seems to be 'getting it' a bit more (see his recent interview with senator kaufman regarding HFT).

As for cash increasing as a % of cash assets - that can only be a good thing. Especially since banks are trying to deleverage and assume less risk whenever there is a flight to safety.

Cramer was so furious cause, unlike Greenspan who acted immediately in the LTCM crisis, here Bernanke was slow as a mule in his response to banks literally living hour-by-hour, not knowing if they had another cash not for the next week but for the next day. The discount window serves no purpose to retail folk (though the trickle down effect is the same) - it simply reduces the rate at which major institutions borrow from the Fed. So to stay liquid enough in the short term, a bank goes to the CB to ask for funds.

ZeroPower's picture

LOL, didnt catch on till beginning of line 2

LeBalance's picture

Who ya gonna call?  Hugh Hendry!

When there's something on fire in the Euro,

And ya got to know where to put your dough,

Are ya gonna trust some Keynesian Gentry?

Heck no, call Hugh Hendry!

Kina's picture

"The European recovery continues to look pretty good and solid to me"



Hephasteus's picture

So he can say all that crap while shorting the euro down to 110 over the next 2 weeks. Interesting.

cossack55's picture

Did you mean "shorting" or snorting?

Kina's picture

"The European recovery continues to look pretty good and solid to me"



Kina's picture

"The European recovery continues to look pretty good and solid to me"



Apostate's picture

It's called "true believer syndrome."

williambanzai7's picture

Obviously someone has instructed these Euro rodeo clowns to ingratitate the firm with the European politicos. For the dirty Euro low down...


bank guy in Brussels's picture

Tyler, please, please avoid the phrase « dead cat bounce » - Very painful to read for the many readers who love animals.

Citizen of an IKEA World's picture

I love my three cats and I think your request is preposterous.

London Dude Trader's picture

Jim O'Neil's clone conveniently failed to mention the plunge in UK retail sales reported last week. 


Sudden Debt's picture

the european markets held up pretty well today. If it goes down tomorrow, I think it's pretty clear that it's the US speculators driving the EU down. We'll see what it gives.