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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

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

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 | 226170 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 | 226246 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 | 226306 girl money
girl money's picture

Greetings, fellow pleasure seekers!

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


Thu, 02/11/2010 - 06:13 | 226411 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.

Thu, 02/11/2010 - 00:49 | 226261 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 | 226276 Anonymous
Anonymous's picture

The Mogambo Guru is back. I saw a new post from him today at

Thu, 02/11/2010 - 03:03 | 226355 Shortbus Bully
Shortbus Bully's picture

Where you been?  Mogambo's back!

Wed, 02/10/2010 - 23:58 | 226173 Anonymous
Anonymous's picture

Right and the USA - primarily your banks, have nothing to do with hiding the issues in Greece to begin with, loading up the debt, pumping up the cost of insuring it - or anything like that at all hey?

Make up your mind - on the one hand you spend ages saying GS is behind this mess and on the other, you're making out like the USA is the saviour here. The world is just one big credit card shuffle - the dealer is the USA.

Get used to paying for this stuff, if you want that shuffle to continue. Simple.

Thu, 02/11/2010 - 00:09 | 226203 Tyler Durden
Tyler Durden's picture

Reread the article. This time focus on the pictures.

Thu, 02/11/2010 - 00:28 | 226227 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 | 226237 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 | 226255 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 | 226472 Anonymous
Anonymous's picture

(not counting the current academic in office)The last time we elected an academic, he created the Federal Reserve. I plan on only voting for military leaders from now on.

Petraeus '12

Thu, 02/11/2010 - 11:35 | 226643 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 | 226762 Anonymous
Anonymous's picture

I am going to keep voting for Ron Paul until one of us dies.

Thu, 02/11/2010 - 00:51 | 226263 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 | 226377 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 | 226264 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 | 226297 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 | 226326 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 | 226316 Anonymous
Anonymous'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 nothi but jus keep eatin my food...gettin old already...saavy?

Wed, 02/10/2010 - 23:58 | 226175 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 | 226404 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 | 226450 ratava
ratava's picture

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

Thu, 02/11/2010 - 00:01 | 226187 Anonymous
Anonymous's picture

So elequantly written. Unfortunately, Harvard MBAs forgot to write like that,long time ago....

Thu, 02/11/2010 - 00:01 | 226188 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 | 226396 Anonymous
Anonymous's picture

What you are describing is called 'capitulation'....... but yes, for what it's worth - I feel the same.

Thu, 02/11/2010 - 08:37 | 226453 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 | 226189 Stevm30
Stevm30's picture

Stay Puft Marshmellow men - beautiful wordsmithing!

Thu, 02/11/2010 - 00:02 | 226192 Anonymous
Anonymous's picture

LEGENDARY! SO FREAKING FUNNY! Larry Summers should have learned at Wharton. Ah, only for the proud and the few.

Thu, 02/11/2010 - 00:04 | 226194 ghostfaceinvestah
ghostfaceinvestah's picture

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

Thu, 02/11/2010 - 10:39 | 226572 Anonymous
Anonymous's picture

Those signing statements are going to be ruled unconstitutional very quickly. They're being issued like candy, and are obviously circumventing Congress.

Thu, 02/11/2010 - 00:06 | 226196 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 | 226202 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 | 226260 Anonymous
Anonymous's picture

Brilliant, I loved that movie brings back the good old bad days. If
I recall we managed to get through them too. Then we had real
Nukes pointed at us, how did we manage. No matter what remember
one thing the sun will come up tomorrow even if it's covered by
clouds. I'm starting to think Leos on to something. I'm long Solar
just for different reasons.

Thu, 02/11/2010 - 05:44 | 226405 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 | 226204 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 | 226245 Joe Sixpack
Joe Sixpack's picture

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

Thu, 02/11/2010 - 00:10 | 226206 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 | 226454 ratava
ratava's picture

dont forget hovno

Thu, 02/11/2010 - 00:17 | 226215 Hansel
Hansel's picture

What's a "Cluterfuck"?

Thu, 02/11/2010 - 00:24 | 226225 jesus
jesus's picture

Clusterfuck in German.


Thu, 02/11/2010 - 10:36 | 226570 Postal
Postal's picture

Ja!!! :D

Thu, 02/11/2010 - 00:19 | 226216 Cistercian
Cistercian's picture

 Epic ZH Tyler.


Thu, 02/11/2010 - 00:20 | 226217 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 | 226269 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 | 226466 Anonymous
Anonymous's picture

If I recall correctly, the exit from this madness (or Exodus) requires hasty packing & preparation. Unleaven bread and bitter herbs to mimic the travail in a wilderness of want.

The antithesis of Stay-Puft Man.

Take the liquidation and dissolution of the rotten entities and LIVE; or continue sacrificing the futures of the young to a consuming sea of red ink. No chariot can outrace it, no stay-puft pride can resist it.

Fare thee well, yeasty dough-boy world economies. Die another day?

Thu, 02/11/2010 - 00:22 | 226220 Anonymous
Anonymous's picture

This prose was so eloquent, it brought tears to my eyes...

Thu, 02/11/2010 - 00:23 | 226222 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 | 226243 Anonymous
Anonymous's picture

Not me, I can't take it any more. They said it was "good to be king" 'caus you get your very own printing press and all that neat stuff, but now I can't handle the truth, 'caus my fiatskos won't buy me any more paper and ink!

Thu, 02/11/2010 - 00:43 | 226253 Anonymous
Anonymous's picture

Not me, I can't take it any more. They said it was "good to be king" 'caus you get your very own printing press and all, but now I can't handle the truth, 'caus my fiatskos won't buy me any more paper and ink!

Thu, 02/11/2010 - 00:24 | 226224 Anonymous
Anonymous's picture

If Greece is bailed out, then it's simply because some pigs are more equal than others...

Thu, 02/11/2010 - 00:32 | 226226 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 | 226233 Anonymous
Anonymous's picture

LMAO @ the photo...Well played Tyler.

Thu, 02/11/2010 - 00:35 | 226234 Anonymous
Anonymous's picture

Not me, I can't take it any more. They said it was "good to be king" 'caus you get your very own printing press and all, but now I can't handle the truth, 'caus my fiatskos won't buy me any more paper and ink!

Thu, 02/11/2010 - 00:36 | 226236 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 | 226278 VegasBD
VegasBD's picture

Not until American Idol is off and McDonalds is closed.

Thu, 02/11/2010 - 00:36 | 226238 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 | 226239 Anonymous
Anonymous's picture

Well Tyler...tomorrow you will not like it much when the market melts up and continues to do so for a total of bout three days from all of this.

Your articles when I do read them, minus your raging anger, make a good case why one should go long for the trade. Not sure this is your intention, but what I and many others confide in me is just this.

Hint ...stop posting charts of stocks during the day when you think they are breaking down, cuz all you are doing is to alert the appropriate parties to make certain it does not occur. Unless it is you intention to prevent a certain equity from falling in price?

Thu, 02/11/2010 - 00:41 | 226247 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 | 226250 Anonymous
Anonymous's picture

Clearly Ben Bernanke is the most logical choice to bail out Greece. His printer is of the newest technology and finest quality available, with extremely high resolution, rapid output of as much as one trillion dpm (dollars per minute), low environmental impact biodegradable cotton/linen paper stock and neutral pH green dye. Plus, as an added bonus, the American people are too friggin' comatose to even realize that their life savings are being pilfered and diluted on a daily basis, and unlikely to get out of the lazy boy except to put another DVD in the player.

Thu, 02/11/2010 - 00:43 | 226254 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 | 226655 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 | 226259 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-


Thu, 02/11/2010 - 00:49 | 226262 louisash
louisash's picture

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

Thu, 02/11/2010 - 00:51 | 226265 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...



Thu, 02/11/2010 - 00:53 | 226268 Anonymous
Anonymous's picture

60bln euro, eh? really? that's it?

Thu, 02/11/2010 - 00:54 | 226270 RockyR
RockyR's picture

60bln euro, eh?  that's it?

Thu, 02/11/2010 - 00:55 | 226271 ShankyS
ShankyS's picture

TD - Does this have any effect on NiGaz?

Thu, 02/11/2010 - 01:07 | 226279 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 | 226484 Anonymous
Anonymous's picture

Greece fought so hard against the Italians/Deutschlanders just 65 years ago. Now they give up the cherry so quickly because they are so carefree/impulsive with debt.

I know 4 year olds with greater discipline and ability to defer gratification.

The great divide: I want it NOW. As opposed to, I choose to earn it now and deliberately underconsume later.

Thu, 02/11/2010 - 01:10 | 226284 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 | 226288 Anonymous
Anonymous's picture

USA is the pivot man in this circle-jerk.

I'm going fishing tomorrow. Take in some of whats real.

Thu, 02/11/2010 - 01:15 | 226291 Anonymous
Anonymous's picture

$20 billion euro ($30Billion US) bailout for Greece. Didn't the US issue more than that in 10 year Treasuries today. What's the big deal??? Eurozone and USA has to issue/refin $4.5 trillion this year combined. Now that real money. And these auctions will go through without any K-Y.

Thu, 02/11/2010 - 01:29 | 226299 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 | 226302 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 | 226313 girl money
girl money's picture

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

Thu, 02/11/2010 - 12:15 | 226742 DaveyJones
DaveyJones's picture

whack-a-mole ... great analogy 

Thu, 02/11/2010 - 16:57 | 227347 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 | 226304 Anonymous
Anonymous's picture

Wow... if the opening act is this great, can't wait for the main event...wait for it...wait for it...Hello Iran.

Thu, 02/11/2010 - 01:37 | 226310 RobotTrader
RobotTrader's picture

Thu, 02/11/2010 - 01:43 | 226314 arnoldsimage
arnoldsimage's picture

how many eurostates will fail?

Thu, 02/11/2010 - 01:45 | 226318 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 | 226387 (not verified)'s picture

that makes sense in a twisted way

maybe the worst is yet to come...
I dunno..we have to make our own choices about how we invest

Thu, 02/11/2010 - 01:59 | 226325 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 | 226328 Anonymous
Anonymous's picture

"You created this white monster to sell your products, and it seems harmless and puff and cute — but given the right circumstances, everything can be turned back and become evil

Thu, 02/11/2010 - 02:08 | 226329 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 | 226334 percolator
percolator's picture

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

Well deserved!

Thu, 02/11/2010 - 02:45 | 226346 Anonymous
Anonymous's picture

Bend over US taxpayers, here comes another one right up the ass.

I predicted days ago that the Germans were far too smart to bail these other European countries out. And after all why do it, when you can get that pathetic scum bag sack of shit Obama to steal US taxpayer money and bail them out for you.

Thu, 02/11/2010 - 03:15 | 226358 Anonymous
Anonymous's picture

All the while, Dow futures up 45 and S&P 4.9. Guess there's no bad news on the Street.

Thu, 02/11/2010 - 03:26 | 226366 Anonymous
Anonymous's picture

i dont understand ....are the economist MAD ....whats wrong with the world.....bail out Greece.....then whos going to bailout Spain, portugal, ireland, UK and the USA.....

one leaked news of bailout confirmation and stocks rise ....this is completely a market fro some other planet........

the other day i read an extaordinary article which says that atleast 50 CEOs and CFOs have resigned over tha past 3 weeks.....just 50 was in the list ...there were more who r3esiugned/.....these guys certainly know something....when the RATS jump off the ship....u can bet ur ass the ship is going down

Thu, 02/11/2010 - 03:32 | 226370 Anonymous
Anonymous's picture

is the world going MAD....Stocks start to collapse
because Greece’s fiscal problems come to surface
(problems I might add that have been obvious for months).
But then, there is talk of a potential bailout (not an actual
bailout, just “talk”) and stocks erupt higher again.

whos going to bail out Spain, Ireland , Portugal,,,UK and the USA ,...some MArtian since no one in this world can bailout USA( they have a Debt of 120 trillion dollars)....

Crisis is sure to hit ....many people are making a lot of money with the help of these press conferences relating to bailout of greece

Thu, 02/11/2010 - 03:32 | 226371 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 | 226382 Uncle Fester
Uncle Fester's picture

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

Thu, 02/11/2010 - 04:25 | 226384 (not verified)'s picture

The risk is still real for some sort of cascade affect

maybe the worst is yet to come...

Thu, 02/11/2010 - 10:28 | 226554 BobPaulson
BobPaulson's picture

Please ban this tool. 

Thu, 02/11/2010 - 03:56 | 226388 Anonymous
Anonymous's picture

It is rather myopic and erroneous to presume that Greek debt discovering German taxpayer patronage will prevent contagion. Greece is not a vector. It is a symptom. Resolution is not dependent upon Greece's momentary recuperation. Any bilateral band-aids will do absolutely nothing for the deficits of Portugal, Spain, Hungary, Ireland, etcetera.

Thu, 02/11/2010 - 04:35 | 226394 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 | 226400 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.

Thu, 02/11/2010 - 05:19 | 226402 Anonymous
Anonymous's picture

Some kind of bailout will be announced today or soon after and the markets will go higher until someday some people realize it is all a Ponzi scheme and then it stops, and then a panic occurs. When the that day of realization occurs, no one knows, but the day will come. Until then trade,like an animal.

Thu, 02/11/2010 - 07:01 | 226421 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 | 226422 Anonymous
Anonymous's picture

Here it is....

In every country's case without exception....the total economies have been reduced in size....

For most all the countries in trouble.....the combined net mark to mark of assets and the supply of credit when combined has contracted over 40%....

This means that there is 60/100's of what was available before to price all goods and services....

This means that taxes and all types of incomes go down accordingly as well....

In simple terms if all prices were allowed to go down 40% as well...there would be no relative change....however what is wreaking havoc on the debt holders is the fact that their losses are levered....

And the very focal point of leverage are the banks....


The governemnts do not have a clue as to how to best replace this lost portion of the economy....

In fact the governments response across the board is to tax directly those that have saved by in effect taxing 100% of what savings earn...thus forcing savings into bank spread creating schemes or in risky assets....thus creating false higher prices which will only crash when there is reward for savings....

Governments have it backwards....The first wealth that needs to be re-generated is that of small business....

The way to get the job done is to change tax structure....

There should be no income or corporate taxes....There should only be a 15% consumption tax on tangible items consumed....

There should be no taxes on securities of any kind....and the securtiies exchanges with a newly contructd RETAIL oriented PC based direct access electronic seamless worldwide system with no outside matching means....would accelerate total asset valuations far greater than what has been lost....

Here is the acid test....

What would be the size of a country's economy in 10 years that taxed all small business 60% of their incomes ?

What would be the size of a country's economy that had no taxes at all except for a simple 15% consumption tax on tangible consumed items ?

The 15% consumption tax only economy would be many times the size of the highly taxed economy....

And what are the governments across the board doing ? Just the opposite ...they are raising taxes....cutting down more orchard trees while demanding more fruit....

Thu, 02/11/2010 - 07:17 | 226423 Anonymous
Anonymous's picture

Give me one good reason that the EURO will not fail ....

Blanket currencies are a poor concept from the get go....

What country wants to pay their hard earned savings to some other country....and pay higher taxes because of it....????

Case closed....wars have been fought for less reason....

The politicos......FO

Thu, 02/11/2010 - 07:27 | 226424 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 | 226468 Anonymous
Anonymous's picture

Too bad they don't have a high-placed Ponzi hedge-funder (Madoffodroupolous) which could clandestinely wire over the funds and then turn himself in to the SEC.

Extra-governmental looting for a sovereign's benefit is the best. Do they give medals for that?

Thu, 02/11/2010 - 07:36 | 226428 Anonymous
Anonymous's picture

I just read a comment on bloomber from an finance official from Belgium which basically stated that the eu must come up with something that will "satisfy the markets". This statement sums up the idiocy of policy response since the proposed super-siv back in the early stages of this global problem; namely that the structural imbalances are never dealt with. Policy should drive the economy should drive the markets, not the other way around.

Thu, 02/11/2010 - 10:50 | 226582 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 | 226429 Anonymous
Anonymous's picture

BOyz need major equity puk to distibute 100bil in Timmmy Paper, look for crisis escalation into tomorrow's session........

Thu, 02/11/2010 - 07:57 | 226438 sangell
sangell's picture

Looks like a Franco-German diktat to the Piigs

Thu, 02/11/2010 - 08:37 | 226446 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 | 226459 MsCreant
MsCreant's picture

Greek civil servants threatening a strike.

Thu, 02/11/2010 - 08:57 | 226464 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 | 226467 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 | 226477 Anonymous
Anonymous's picture

Bring on the Debt Jubilee!!! Whooopeee..

D. Shays

Thu, 02/11/2010 - 09:46 | 226511 Anonymous
Anonymous's picture

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

Yes, Benny Boy better start up his stealth currency swaps, and just like that, problem pushed off, can't Greece extend and pretend?

This is hilarious, getting these Euro countries to agree on anything.

Thu, 02/11/2010 - 09:51 | 226520 Anonymous
Anonymous's picture

With the UK's budget set to reach almost 13% of GDP. who is going to bail them out after they bail out Greece. I'll bet Brownie wishes he had those gold bars back.

Thu, 02/11/2010 - 10:29 | 226556 Anonymous
Anonymous's picture

That what Europe has been about--permanent inner and outer confusion and uncertainty. However, America got there, too.

Thu, 02/11/2010 - 10:33 | 226567 Anonymous
Anonymous's picture


"Nevertheless, it is increasingly seen as the least worst option."

Well, yeah, everyone outside of Germany would view a German bailout the least-worst option, just like no doubt everybody outside of France would view a French bailout of Greece as the "least-worst option"

Thu, 02/11/2010 - 11:08 | 226603 Anonymous
Anonymous's picture

Sometimes when I'm admiring the shape and form of a comely woman of about ripe breeding age, I think to myself what a marvel it is that she was so OBVIOUSLY _designed_ to be fucked.

Nature is an amazing thing.


Thu, 02/11/2010 - 13:33 | 226875 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.


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