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On The Eve Of The Greek Bailout, Clusterfuck Reigns, Threatening Tentative Market Stabilization With Collapse

Tyler Durden's picture





 

The only thing in this world worse than Hank Paulson showing up in Congress with his initial 3-page TARP proposal giving him unlimited control over the US printing press? 12 non-Hank Paulsons, all of whom speak different languages, all of whom are hell bent on bailing everyone and everything out (just not on their political or physical dime...or 10 eurocents as the case may be), and all of whom have no idea how to bail out others' (and soon their own) economy... oh, and none of whom have access to Hank's reserve currency printer. In short, more than 24 hours after announcing a "bailout" of Greece, nobody in Europe has any idea what they need to do to actually "bail" Greece out. On the verge of tomorrow's summit during which it is widely expected that EU's new president
Herman Van Rompuy will announce just what the details of [asset guarantee|debt purchase|IMF (aka US Taxpayer) to the rescue] plan will be, the utter cluelessness and confusion is unprecedented.

One modest proposal: send Larry Summers and have him exacerbate, er, fix, the European mess, by showing those pesky Burssels bureaucrats how we fix stuff over at Harvard, er D.C. In exchange, a grateful Europe can keep him. In perpetuity. With negative interest. He could even moonlight as the Oxford University hedge fund manager. After all nothing beats Two Stay Puft Marshmellow Men for the price of one.

From TimesOnline

Finance ministers from the main economies in the single currency area, led by
Germany and France, worked through the night to let the EU’s new President,
Herman Van Rompuy, save his first one-day summit from disaster by announcing
a guarantee that Greece would not be allowed to fail.

There were sharp disagreements yesterday over how to restore market confidence
in Greece, with the Netherlands continuing to argue for the Washington-based
International Monetary Fund (IMF) to be called in despite strong opposition
from Angela Merkel, the German Chancellor.

Germany will be expected to put up most of the money and after years of
misleading Greek statistics, fiddles and broken promises of reform, the
rescue plan is likely to infuriate conscientious German taxpayers.
Nevertheless, it is increasingly seen as the least worst option. One
possible outcome of the crisis would be the break-up of the euro.

The rescue is also seen as more attractive than getting a German state-owned
bank to buy Greek debt, as that would only increase Berlin’s exposure to the
risk of a crash in Athens.

One longer-term plan under discussion is the creation of a “European monetary
fund” to avoid the humiliation of having to call in the IMF to save the
euro. France and Germany in particular have invested a great deal of
prestige in the euro.

And of course:

There is still a question mark over how markets will react even if the EU can
agree on a bailout, because it may not satisfy demands for systemic change.

The clusterfuck reaches epic proportions as the European leaders realize that someone has to pay for their stupidity. That someone is gradually emerging to be, gasp, Uncle Sam (congrats America, you will soon LBO Greece).

Ruling out a role for the IMF, José Zapatero, the Prime Minister of Spain,
said last night: “We have to support Greece, that’s clear, and it’s Europe
and the Eurogroup which will do it.”

France, like Germany, is eager to avoid calling in the IMF. “We are not going
to have Washington coming in to tackle our problems,” a French official
said.

However, officials at the French Finance Ministry were reported by Le Monde
yesterday to be favouring an IMF role in the bailout in order to take the
weight off EU taxpayers.

In France, the crisis is being depicted by the Government and media as the
product of immoral speculation by “Anglo-Saxon” banks and hedge funds. Mr
Sarkozy, the first EU leader to sound the alarm over Greek finances, has
seized on Athens’s predicament for his crusade to impose new regulation on
the markets and the world economy.

Meanwhile across the English Channel, Gordon Brown is panicking, as he realizes that the €20 billion (and far more likely €60 billion) that will be needed to bail out Greece will have to come largely from his pocket. Yet if it does, he can just as easily resign tomorrow as he will likely be promptly crucified by Her Majesty's subjects.

Last night European officials were involved in furious efforts to try and
complete a €20 billion rescue package, designed to halt the looming crisis
in Greece before it spreads to other countries.
France and Germany were at
the forefront of the eurozone negotiations.

However, Mr Brown - when challenged in the Commons over Britain’s position -
was unable to rule out Britain's involvement in a a Greek rescue package.

But the issue of other countries needing urgent help, as well as Greece, is
also pressing. The economies of both Spain and Portugal are in serious
trouble and their deficits spiral.

It means a total rescue package for the so-called PIGS – Portugal, Ireland,
Greece and Spain – could be as high as €60 billion.

Britain contributes 20 per cent of the EU budget and any EU-wide bail out of
either Greece - or the other threatened economicies - could, as a result,
fall heavily on British shoulders.

At least Brown realizes that his political career is almost over.

Gisela Stuart, a former Labour Europe Minister, asked Mr Brown: "Could
you confirm that any negotiations involving a bail-out for the Greek economy
will be completely confined to eurozone countries and will have no impact on
the UK?"

Mr Brown said support was available at an "international level"
under the G20 agreement and added: “If the euro area wishes to move ahead
with a proposal, that is for the euro area," he added.

Amusingly, after all the recent chauvinist posturing it seems that even the UK is once again looking at Ben to bail Europe out.

Mr Brown yesterday pointed to new G20 commitments to the
International Monetary Fund which will enable it to intervene. An
intervention by the IMF would be considered almost a last-gasp solution as
some senior Brussels officials fear it is an instrument of American foreign
policy.

Surely that is the best outcome: US citizens have proven completely oblivious to being robbed blind in broad daylight. After $23 trillion has already been pledged to pay for a few more Goldman Sachs G-V's what's another $80 billion in future increased taxes and US debt expressed in silly notation, between friends? At least the Europeans are willing to quickly go to the bathroom when the bill comes. America, on the other hand, is always eager to pay with the Taxpayer Platinum card. And tip handsomely. Especially if it means the dollar goes to zero and buys even more G-Vs for Goldman.

And just because you asked, we'll end this post not with pictures of striking grandmothers in Greece, but with another money shot of the marshmallow scourge from D.E. Shaw-cum-Harvard.

 


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Wed, 02/10/2010 - 23:54 | Link to Comment deadhead
deadhead's picture

irrespective of whatever is developed for Greece, Portugal/Spain/Ireland/Italy/black swan will get hammered by the market shortly.  the contagion will spread, no doubt about it.

at least dubai is completely fixed and because nothing has been mediaized about eastern europe, they must be doing okay, right?

 

Thu, 02/11/2010 - 00:40 | Link to Comment ShankyS
ShankyS's picture

LOL, nice DH. The STD that is an actual FTD (Financial) contageon will spread like wildfire as bodily fluids are exchanged among the partners of the EU. To bad TD did not put up a pic of Trojan Man. They could use the protection. Apparently they will be using the K-Y Intense to add to the pleasure. Sadly what's another 200bn to bail outall the PIIGS. You know we'll do it. Hopefully spme of they K-Y will be left over for some of us taxpayers over here who will be footing the ultimate bill.

Thu, 02/11/2010 - 01:32 | Link to Comment girl money
girl money's picture

Greetings, fellow pleasure seekers!

http://www.youtube.com/watch?v=qegm5Z5rmVw

The first one that "feels like nothing's there."

PERFECT!

Thu, 02/11/2010 - 06:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

This one is better. It shows the real intentions of the (almost) cheating husband nearly "exposed" shall we say. Reminds me of politicians.

http://www.youtube.com/watch?v=QyekMx50PvU&NR=1

Thu, 02/11/2010 - 00:49 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

As the unforgettable, but no longer heard from, Mogambo Guru used to say:  "We're freakin' doomed!"

Contagious?  check

Lots & lots of bailouts?  check

Pretend & extend?  check

Black Swan(s)?  check

...

 

Thu, 02/11/2010 - 00:59 | Link to Comment Anonymous
Thu, 02/11/2010 - 03:03 | Link to Comment Shortbus Bully
Shortbus Bully's picture

Where you been?  Mogambo's back!

Wed, 02/10/2010 - 23:58 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:09 | Link to Comment Tyler Durden
Tyler Durden's picture

Reread the article. This time focus on the pictures.

Thu, 02/11/2010 - 00:28 | Link to Comment Scooby Dooby Doo
Scooby Dooby Doo's picture

i don't get it. the michelin man's dad? what does he have to do with all the grease stuff?

Thu, 02/11/2010 - 00:36 | Link to Comment Clampit
Clampit's picture

Exactly, well said Tyler. If Liz Warren doesn't run in '12, you have my write in.

BTW, Scoobs, making sense of all this is a fools errand.

 

 

Thu, 02/11/2010 - 00:44 | Link to Comment Scooby Dooby Doo
Scooby Dooby Doo's picture

I'm thinking a 90% flat income tax for 3 years should balance things out fairly. Sarah will fix things, huh?

Thu, 02/11/2010 - 09:08 | Link to Comment Anonymous
Thu, 02/11/2010 - 11:35 | Link to Comment jmc8888
jmc8888's picture

Gerneral Betray-us who is doing the Queen's bidding, no thanks.  You know he wants the people he's been railing against and fighting to be in power now right? The taliban.  After all the queen needs her opium wars.

The dealer isn't America, it's Britain's system.  America is just the biggest cog in the BRITISH imperialist system.  The EU? Well that was the Queen again, and you tend to forget she left you at the alter by not joining in your mess.  (was that accident, NO!)

The last intellectual who was voted in......what a sophistric answer.  I'm sure you be pleased with your new 'president' filter.  Be prepared to constantly clean up the crud. 

FDR was a smart man, and he wasn't a Keynes.  He HATED keynes for gloming on to what he did, and trying to put a theory together around that (which of course he added lots of bunk stuff to).  But most don't realize that.  Well realize it.  FDR was anti-keynes.

It's what LaRouche has been talking about for years, that Euro cannot govern itself, because they gave it all away to someone else who doesn't have authority to do crap.  Thus, in the article it mentions how they don't know how to do it.  Because, it was made so they COULDN'T.  What you didn't know the Euro system was a scam from the start? Whoops.  Guess you euros forgot your history, and that everything had changed.  It didn't. Sorry, we're all victims here, but we can become the policeman too.

Thu, 02/11/2010 - 12:23 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:51 | Link to Comment MrPalladium
MrPalladium's picture

Who ya gonna call???  - The ghost busters!!

BTW, what happened to the mandatory picture of Sigourney Weaver in her prime. :(

Thu, 02/11/2010 - 03:37 | Link to Comment Eternal Student
Eternal Student's picture

And I have to say, that picture is absolutely superb for this article!

I guess some youngsters haven't seen the original Ghostbusters movie. Do so. It's well worth the time.

Thu, 02/11/2010 - 00:51 | Link to Comment i.knoknot
i.knoknot's picture

"stay puft" is from the first ghostbusters. to my thinking, should've gotten a "best supporting" oscar.

Thu, 02/11/2010 - 01:24 | Link to Comment Clampit
Clampit's picture

It's god damn brilliant; the fiat currency mascot. It's nice to come here and be humbled...

Thu, 02/11/2010 - 02:02 | Link to Comment starfish
starfish's picture

Don't cross the streams. Proton packs? or was it photon packs... i like the metaphor of a 'demon from another world' that we have engage in battle. so...what is our metaphorical proton pack...truth of course...what else? stop feedig the beast? galt's gulch? eh braddah, doze guyz no grow nothin but jus keep eatin my food...gettin old already...saavy

Thu, 02/11/2010 - 01:43 | Link to Comment Anonymous
Wed, 02/10/2010 - 23:58 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Shorting the Euro has got to be the biggest no-brainer trade in the world.  This is just like  Britain trying to keep the pound in the ERM, they are going to waste incredible resources just to keep up the Euro charade.

Thu, 02/11/2010 - 05:35 | Link to Comment scaleindependent
scaleindependent's picture

For everyone: If the bailout of the EURO passes, how far up will it bounce ? i.e., what is a good entry point on shorting the Euro after a bounce/

Thu, 02/11/2010 - 08:35 | Link to Comment ratava
ratava's picture

the QE rally 50% retrace at 1.3788 was my entry point

Thu, 02/11/2010 - 00:01 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:01 | Link to Comment plocequ1
plocequ1's picture

The world is a big printing press. Money is nothing anymore. I hope to be dead before the US hasto pay the bill. I have noticed a $2.00 increase in my Federal tax. I dont care anymore. Let the fuckers print all they want. Japan is still around....They must of done something right. Maybe one  day the world will not use money anymore..I love you Ben, Keep up the good work...

Thu, 02/11/2010 - 04:45 | Link to Comment Anonymous
Thu, 02/11/2010 - 08:37 | Link to Comment ratava
ratava's picture

japan squeezed a ton of cash out of domestic consumers to pay for the massive debt, sif that can happen in US with the jobless overleveraged losers everywhere

Thu, 02/11/2010 - 00:01 | Link to Comment Stevm30
Stevm30's picture

Stay Puft Marshmellow men - beautiful wordsmithing!

Thu, 02/11/2010 - 00:02 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:04 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Good thing Obama got his IMF funding provision through, and with a signing statement removed any restrictions on that funding.

http://uk.reuters.com/article/idUKTRE56K6N920090721?sp=true

Thu, 02/11/2010 - 10:39 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:06 | Link to Comment Clinteastwood
Clinteastwood's picture

Whatcha gonna do????????

Call Ghostbusters!!!! (IMF)

They'll zap old Zuleee!!!!!

(well, that's what I heard)

Thu, 02/11/2010 - 00:10 | Link to Comment Crab Cake
Crab Cake's picture

Dr. Peter Venkman: This city is headed for a disaster of biblical proportions.
Mayor: What do you mean, "biblical"?
Dr Ray Stantz: What he means is Old Testament, Mr. Mayor, real wrath of God type stuff.
Dr. Peter Venkman: Exactly.
Dr Ray Stantz: Fire and brimstone coming down from the skies! Rivers and seas boiling!
Dr. Egon Spengler: Forty years of darkness! Earthquakes, volcanoes...
Winston Zeddemore: The dead rising from the grave!
Dr. Peter Venkman: Human sacrifice, dogs and cats living together... mass hysteria!

Thu, 02/11/2010 - 00:47 | Link to Comment Anonymous
Thu, 02/11/2010 - 05:44 | Link to Comment covered
covered's picture

[Dana is possessed]
Dr. Peter Venkman: I make it a rule never to get involved with possessed people.
[Dana starts passionately making out with him]
Dr. Peter Venkman: Actually, it's more of a guideline than a rule...

Probably a good idea to make it rules rather than guidelines next time. I know there'll be a next time, I am curious what it will look like though

 

Thu, 02/11/2010 - 00:09 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Maybe the IMF can sell more of their gold to help out Greece.

I am sure India and China would be happy to take it off their hands.

Thu, 02/11/2010 - 00:40 | Link to Comment Joe Sixpack
Joe Sixpack's picture

With the $1070-$42 per ozt. profit, it will help!

Thu, 02/11/2010 - 00:10 | Link to Comment Going Down
Going Down's picture

 

"12 non-Hank Paulsons, all of whom speak different languages...."

 

Well, there's "sheisse" and "merde" to start with. Oh...and of course "skata!"

 

 

Thu, 02/11/2010 - 08:38 | Link to Comment ratava
ratava's picture

dont forget hovno

Thu, 02/11/2010 - 00:17 | Link to Comment Hansel
Hansel's picture

What's a "Cluterfuck"?

Thu, 02/11/2010 - 00:24 | Link to Comment jesus
jesus's picture

Clusterfuck in German.

 

Thu, 02/11/2010 - 10:36 | Link to Comment Postal
Postal's picture

Ja!!! :D

Thu, 02/11/2010 - 00:19 | Link to Comment Cistercian
Cistercian's picture

 Epic ZH Tyler.

 Fantastic.

Thu, 02/11/2010 - 00:20 | Link to Comment lsbumblebee
lsbumblebee's picture

This ties in with my Pillsbury Doughboy thesis. If we can just keep the markets soft and fluffy then nobody has to worry about a thing forever!

Thu, 02/11/2010 - 00:54 | Link to Comment i.knoknot
i.knoknot's picture

the "stay puft" dude actaully meets a nasty demise...

the reference works rather well, methinks.

Thu, 02/11/2010 - 09:04 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:22 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:23 | Link to Comment BobPaulson
BobPaulson's picture

Good. Hurry it up already. I want to see some serious players hit the mat here. I'm sick of the parade of clowns saying nothing is wrong. Anybody remember "this is contained to subprime mortgages only". Keep stripping away the veils, I can take it.

Thu, 02/11/2010 - 00:39 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:43 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:24 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:32 | Link to Comment Eally Ucked
Eally Ucked's picture

Really, what the fuck, what is the difference who "pays" for some bailout, it's any way "smoke and mirrors game" and as well Uncle Sam can pay for it and look like big savior, I can pay for it too, just they have to accept my currency called DOO-DOO. We are all screwed, all dollars, pounds, drachmas and all that waste paper is worth nothing, let's stop pretending, it's total chaos!

Hope everybody gets smarter and accepts my DOO-DOO money then I pay for all those bad loans, deficits, derevatives, bonuses, whatever you wish!!!

Thu, 02/11/2010 - 00:32 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:35 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:36 | Link to Comment lizzy36
lizzy36's picture

The man has a way with pictures.

Clusterfucked is how one would describe the American People.  One wonders how long until they wake up and realize that their walk of shame is on a never-ending road.

Thu, 02/11/2010 - 01:03 | Link to Comment VegasBD
VegasBD's picture

Not until American Idol is off and McDonalds is closed.

Thu, 02/11/2010 - 00:36 | Link to Comment economessed
economessed's picture

The whole country is one giant slab of flaming saganaki.  And now someone's gotta eat it.  Tastes like burning!

Thu, 02/11/2010 - 00:36 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:41 | Link to Comment glenlloyd
glenlloyd's picture

just like Ben said, sub-prime being, "largely contained," this too will spread where it will creating a path of destruction.

Anyone who believes that this can be controlled is fooling themselves.

Thu, 02/11/2010 - 00:42 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:43 | Link to Comment ShankyS
ShankyS's picture

So TD - Does it all blow up like the Stay Puff man in the end? Can I get a Bill Murray/Dan Akroid cameo with that please for some comic relief?

Thu, 02/11/2010 - 11:42 | Link to Comment Assetman
Assetman's picture

Tyler did a very nice job with the Ghostbusters/Stay-Puft reference, circa 1980's.

What makes it even funnier is the true parallels to what is happening in the EU/Greece situation.  I'm sure during the discussion some EU delegate (probably Germany) emphasized keeping the rescue contained within the EU.

As discussion ensued about how to pay for Greece and the remaining PIIGS, the French delegation let the dangerous thought set in... "hey... the IMF (via the US money printing machine) has plenty of bailout money... they make me feel safe and secure".  Uh-oh... they just let loose the giant beast that Dan Akroyd unleashed.

Only this time, someone needs to Photoshop the Stay-puft Marshmellow Man's body with Larry Summers oversized head.

Pretty classic stuff! LOL!

Thu, 02/11/2010 - 00:47 | Link to Comment Gilgamesh
Gilgamesh's picture

Why aren't they just sending in Iceman Mishkin?  He'd have this thing licked, write a report illustrating that Greece is a well run and advanced Baltic country that has little in common with emerging market countries, and everyone would be playing volleyball by dinner time.

Question is: which pic to use for him-

http://www.hotflick.net/flicks/1986_Top_Gun/986TGN_Val_Kilmer_006.jpg

or

http://i.dailymail.co.uk/i/pix/2006/08/FAT_228x336.jpg

Thu, 02/11/2010 - 00:49 | Link to Comment louisash
louisash's picture

Sorry, but this is way overdue for the current thread: GOLD, BITCHES!

Thu, 02/11/2010 - 00:51 | Link to Comment GeoffreyT
GeoffreyT's picture

Mmmm.... Saganaki.

Sadly, I am not aware of any Grecian equivalent to the "Dirty Sanchez" (that is a little further down the road when Spain's situation becomes the next cab off the bailout rank).

The Kraut peasantry must be whispering among itself already - particularly those old enough to remember how fast East Germany unravelled (there being few alive who are old enough to remember the Weimar Republic). They managed to fold in the Russian half-breeds from the former East GFermany while remaining Top Nation on the continent... now they have to underwrite the Bubbles' bubble.

Yon Kraut would benefit greatly from being able to loose itself from the dead hands of other euro-zone countries... particularly all the peasant Eastern-=European refuse that joined of late: yon Kraut is also now aware that the ECB is nowhere near as sensible as the Bundesbank would have been.

The Frogs have been riding Kraut coat-tails and pretending they're not a third world economy festooned with monuments to their military failures... that pretense (part of a naitonal short-man complex) will end badly as well.

Imagine how things will play out given that de Villepin is bent on undermining Sarkoléon (thus ensuring a leftie in the Elysée in 2012 instead of a second term for "le nabot mechant").

And yesterday we learned that Hop Sing is selling any bits of the Ponderosa that aren't explicity attached to a call on Jed Cartwright's scrotum. Perfect.Storm.

What the I don't even.

May y'all live in interesting times...

Cheerio

GT

Thu, 02/11/2010 - 00:53 | Link to Comment Anonymous
Thu, 02/11/2010 - 00:54 | Link to Comment RockyR
RockyR's picture

60bln euro, eh?  that's it?

Thu, 02/11/2010 - 00:55 | Link to Comment ShankyS
ShankyS's picture

TD - Does this have any effect on NiGaz?

Thu, 02/11/2010 - 01:07 | Link to Comment Hephasteus
Hephasteus's picture

So they will just hire Hanz and Franz from germany. I am Hanz and I am Franz and we are here to PUFF YOU UP. Yes we will teach you daily regiments of fiscal irresponsibility guaranteed to keep your little girly country forever bubbled through disciplined relentless ponzification.

Thu, 02/11/2010 - 09:15 | Link to Comment Anonymous
Thu, 02/11/2010 - 01:10 | Link to Comment truont
truont's picture

Hey, why is everyone complaining?!

If the US wants to bailout Greece, who cares?

We are America!  We can do anything we want!

I got my 6-pack and my ESPN, so all is good in the world.

By the way, what is a Greece?

Thu, 02/11/2010 - 01:11 | Link to Comment Anonymous
Thu, 02/11/2010 - 01:15 | Link to Comment Anonymous
Thu, 02/11/2010 - 01:29 | Link to Comment carbonmutant
carbonmutant's picture

 Damned if you do...

Actually they don't need to come up with a permanent solution right away. They can buy time with a temporary one such as delaying payment for a few months until they can agree on who is going to take responsibility for managing the Greek unions...

Thu, 02/11/2010 - 01:27 | Link to Comment cocoablini
cocoablini's picture

it's whack-a mole. After a point, you get exhausted and just want to see it all go down already. Great Britain is no better off-and the US probably has a similar debt to GDP ratio.

Thu, 02/11/2010 - 01:40 | Link to Comment girl money
girl money's picture

well, as long as GDP's inventory restocking implants keep it up...

Thu, 02/11/2010 - 12:15 | Link to Comment DaveyJones
DaveyJones's picture

whack-a-mole ... great analogy 

Thu, 02/11/2010 - 16:57 | Link to Comment Hephasteus
Hephasteus's picture

Na we got mark to market. We can predent our debt to gdp ratio is anything we want to pretend. Until the banks get ran.

Thu, 02/11/2010 - 01:28 | Link to Comment Anonymous
Thu, 02/11/2010 - 01:37 | Link to Comment RobotTrader
RobotTrader's picture

Thu, 02/11/2010 - 01:43 | Link to Comment arnoldsimage
arnoldsimage's picture

how many eurostates will fail? http://www.youtube.com/watch?v=MrTsuvykUZk

Thu, 02/11/2010 - 01:45 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

Doesn't the Fed want to bail out Europe (via IMF)?  Coz by doing that wouldnt it finally cause the hyperinflation of the $US that he needs to inflate the $US's debts away ?

or is my aneurismed brain all screwed up on the cause/effect/motive

Thu, 02/11/2010 - 04:26 | Link to Comment trading.online (not verified)
Thu, 02/11/2010 - 01:59 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

whoever defaults the first.... loses the least. 

 

p.s. focusing on the pictures, focusing on the pictures, focusing on the , lol

Thu, 02/11/2010 - 02:05 | Link to Comment Anonymous
Thu, 02/11/2010 - 02:08 | Link to Comment phaesed
phaesed's picture

actually issuing debt at 0.80% and getting 7% yields wouldn't be a bad spread.... although the currency gangbang would be devastating.... you make an interesting point tho.... is the new world order going to be executed by leverage buyout then? man I've been slacking in the past few weeks while I'm busy with other stuff.

Thu, 02/11/2010 - 02:23 | Link to Comment percolator
percolator's picture

OT, Congrats ZH for making the All-Star Team:

http://newrulesofinvesting.com/2010/02/08/superbowl-team-online-finances...

Well deserved!

Thu, 02/11/2010 - 02:45 | Link to Comment Anonymous
Thu, 02/11/2010 - 03:15 | Link to Comment Anonymous
Thu, 02/11/2010 - 03:26 | Link to Comment Anonymous
Thu, 02/11/2010 - 03:32 | Link to Comment Anonymous
Thu, 02/11/2010 - 03:32 | Link to Comment Handle with care
Handle with care's picture

You know they're desperate when they're flailing around like this.  Oh, China will rescue us!  Oh Germany will rescue us!  Oh America will rescue us!

 

Its not that long ago that the EU Constitution was forced on the people despite several countries voting no in the referendums.  The EU is not as politically popular in each country as the politicians like to pretend.  Having northern Europe pay so that southern Europe doesn't need to enact austerity measures is not likely to increase its popularity.

 

(Ireland is in Northern Europe, but Ireland has enacted pretty strict austerity measures)

 

They'll probably manage to ram this through, but good luck if they need to do anything major after this.  Europe isn't like America, in Europe the voters riot when they're angry enough.

 

This is their one shot.  If they don't get the problem finished with this they won't get another chance.  And with 12 countries all compromising its very unlikely they'll come up with a solution that will prevent ALL potential future problems.

Thu, 02/11/2010 - 03:49 | Link to Comment Uncle Fester
Uncle Fester's picture

Maybe we can persuade Gomez to open his safe...

Thu, 02/11/2010 - 04:25 | Link to Comment trading.online (not verified)
Thu, 02/11/2010 - 10:28 | Link to Comment BobPaulson
BobPaulson's picture

Please ban this tool. 

Thu, 02/11/2010 - 03:56 | Link to Comment Anonymous
Thu, 02/11/2010 - 04:35 | Link to Comment Alitak
Alitak's picture

Austerity measures in Ireland, pretty much a con so far, a little shuffling of the budget to transfer 4 bn euro, when the deficit increases by that amount every 2 months.

Thu, 02/11/2010 - 04:58 | Link to Comment carbonmutant
carbonmutant's picture

Summit In Brussels Delayed Due To Snow

BRUSSELS -(Dow Jones)- A summit of European Union leaders due to start Thursday morning was delayed due to harsh winter weather in Brussels.

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=20100211...

Thu, 02/11/2010 - 05:19 | Link to Comment Anonymous
Thu, 02/11/2010 - 07:01 | Link to Comment zhandax
zhandax's picture

You guys loose your script or what?  We learned from the Japanese that you can't sit at the top of the heap while your currency is cheapest to borrow.  No more greenback carry trade; we needed a chump and look who shows up with their collective hands out.  Send in the IMF, bail these fucks out, impose a 3rd world austerity regimen and there is your carry trade lackey for the next 5 years.  Japan still doesn't get off the hook until everyone is at 2+ X debt/GDP but we are headed in that direction <dammit>.

Love the pic, BTW

Thu, 02/11/2010 - 07:10 | Link to Comment Anonymous
Thu, 02/11/2010 - 07:17 | Link to Comment Anonymous
Thu, 02/11/2010 - 07:27 | Link to Comment saulysw
saulysw's picture

What is the scale of this problem? Greece needs what? 20 billion euro?

 

What did Citigroup need? Or AIG? How about our happy motoring friends? Or the MBS purchases to keep all the remaining banks looking remotely solvent. Seems to me that the US could pay for this in chump change. Just sayin....

Thu, 02/11/2010 - 09:06 | Link to Comment Anonymous
Thu, 02/11/2010 - 07:36 | Link to Comment Anonymous
Thu, 02/11/2010 - 10:50 | Link to Comment Postal
Postal's picture

Been tried, didn't work: If the markets aren't "satisified," my portfolio goes down and you don't get reelected.

Thu, 02/11/2010 - 07:38 | Link to Comment Anonymous
Thu, 02/11/2010 - 07:57 | Link to Comment sangell
sangell's picture

Looks like a Franco-German diktat to the Piigs

Thu, 02/11/2010 - 08:37 | Link to Comment zhandax
zhandax's picture

Reminds me of one of the most memorable quotes of 2008 (9?), "next week looks OK unless a major bank (or minor country) goes bankrupt."

"What a difference a year makes"

 

Thu, 02/11/2010 - 08:50 | Link to Comment MsCreant
MsCreant's picture

Greek civil servants threatening a strike.

http://www.reuters.com/article/idUSLDE61A1AD20100211

Thu, 02/11/2010 - 08:57 | Link to Comment suteibu
suteibu's picture

Ah, yes...those wonderful public service unions, adding to the bloated inefficiencies of bureaucracy.  What would we ever do without them.

Thu, 02/11/2010 - 09:05 | Link to Comment Tic tock
Tic tock's picture

Yes, three days inflation, except Greece doesn't have ~Bln.20.. The issue is a EuroBond default - it's unseemly. Furthermore, in this particular case it points to a fragmented system, of fiscal responsibility. The ECB may have to step in, in the case of a default, to assume the bond. The measures which could then be imposed are likely to be fairly communist; strict government price controls on basic goods- to prevent excess profit recurring to the industrialist class (whom indirectly support the nation's government) -as well as food and building materials prices, to stabilise consumption in the event of any further crisis. An increase in Audit costs for the banking industry within the nation, also perhaps culpable, if only at a stage removed.    

Thu, 02/11/2010 - 09:10 | Link to Comment Anonymous
Thu, 02/11/2010 - 09:46 | Link to Comment Anonymous
Thu, 02/11/2010 - 09:51 | Link to Comment Anonymous
Thu, 02/11/2010 - 10:29 | Link to Comment Anonymous
Thu, 02/11/2010 - 10:33 | Link to Comment Anonymous
Thu, 02/11/2010 - 11:08 | Link to Comment Anonymous
Thu, 02/11/2010 - 13:33 | Link to Comment cougar_w
cougar_w's picture

It seems like the logic at work here is that the US holds the reserve currency and so cannot default, so the US can print the entire global economy out of recession starting with Greece.

Of course I have no idea if that's how it really works. But I understand that there is a lot of mojo behind our reserve currency status. It's just possible that at the end of the day the US (not China) ends up owning most of the resources and all of the governements on the planet.

I wonder ... is that how Rome did it back in the day? I seem to recall something like that was at play.

cougar

Mon, 04/19/2010 - 10:21 | Link to Comment Tom123456
Tom123456's picture

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