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German Finance Minister Says Needs Rules For Orderly Insolvency Of EMU States
10:30 05/20 GERMANY FINMIN: NEED RULES FOR ORDERLY INSOLVENCY OF EMU STATS
10:30 05/20 GERMANY FINMIN: CAN'T HAVE EU AID PACKAGE EACH TIME
What's that? We are to expect more "orderly insolvencies" without EU bailouts? What kind of Keynesian travesty is this? But at least the road is clear for Portugal, Spain and Italy CDS to go points up front shortly.
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If you look at the time line of how things have progressed, none of this should come as a surprise to anyone. Zero Hedgers are feeling pretty smug right about now.
i remember wheni first read Financial Armaggedon in early 2007. people thought i was crazy for discussing the possibilities of things to come
I feel like the crack head who has been cut off by their dealer. I need my ZH fix and the site keeps going down.
What I do is start typing in www.zer...on my tool bar and specific articles are automatically filled in. Then I click on one of those, and get "back-doored" in. It's easier from there to click on "home" and get back to the home page. Zerohedge will likely be down 50% of the time today.
waiting on the front porch for two days
What's wrong their server? Why down so much?
uuh, running one of the hottest sites on the planet on a shoestring?
denial of service attacks?
Combination of those 2, probably. Service will probably be totally denied at some point. When TS really starts hitting TF there's no way sites like this will be allowed to stay up.
Oh my gosh - as someone who deeply believes that deflation/default is the only solution to this neo-Keynesian nightmare we are in (or is Austrian nightmare?), this is so refreshing to see. I still don't believe it will happen, but I'd love to see orderly DEFAULT of all of this paper trash and just start fresh. First to the bottom is the first to rebound, after all.
Of course, confirmation bias makes this one stand out even more, but hey, I can deal with that...
Default would be painful catharsis but I think Skynet prefers indefinite gangrene. The only default we're going to get is if buildings start burning (more than they are already, that is).
I'm starting to like the Europeans more and more, they like to air their dirty laundry for all to see. Things progress more rapidly to their natural conclusion.
+1
Lovin' the Marcello Mastroianni "You stupid biiiiiiitch!!" action on the Euro.
No matter what gyrations in the meantime, the Euro is toast. Time for the reset button.
What's that? We can't read your website because it's out of bandwidth & server capacity yet again?
+1. I've come to love this sight but the bandwidth issue is maddening!
Crowdcontrol :)
Everybody tries to get through 1 door, and then some fool yells BOMB, AAAAAAAaaa!!
LOL
Find the donate button and help them fund their servers.
Complaining about zero hedge's servers is like the greeks complaining about the government not giving them more money.
Gave my tithing last week.
+1 Even a tightwad ribbonclerk like me managed to part with a few shekels this week. These guys never ask, so it's incumbent on all of us to belly up to the bar on occasions like this.
Agreed. Went and hit the donate button.
Seriously? I see the ads.
Here in Europe we have a saying:
YOU TOUGH IT, YOU BUY IT SCUMBAG!!
WTF is an "orderly insolvency" of a sovereign nation?
That is a pipe-dream.
Maybe the better wording would be "a less disorderly insolvency"
Because the reality is that this IS a SOLVENCY problem that CANNOT be fixed by LIQUIDITY
Coming to a US state near you!
Argentina Vs. Zimbabwe?
That means make as many rich people whole as possible with the biggest loss of life of the poor becasue they are a threat to security anyway.
"I’m convinced the markets are really out of control," says German FinMin Wolfgang Schauble.
As a prelude to just another reason that Germany will exit the Eurozone, beating Greece and the PIIGS out the door. Deutchemark redux.
Bündchen, baby.
I like Merkel
First, I am sure none is clean in this arena, but look at wht she did:
1, An obviously stupid financial move, but not at all stupid when viewed from the perspective of the nation state, not the currency union, not the euro, but from the perspective of the State.
2, A warning, " I will do this again" because every time I do I win votes, votes that cannot be bought by your money anymore. My political career is more important than your wealth." Wait for this realization to reach the US.
3, "Oh, and Ben. Fuck you I do not care if we are cut off from the capital markets anymore."
4, Just wait until I bring back the D-mark and base it on the gold I am bringing home from storage in the US and see how easily I fund my deficit then!
+1
Spot on.
I believe you are mistaking a desperation move for a tactical plan.
Ok, there have been rumors that new Deutsche Mark are already printed in secrecy, but that's about the only thing I heard that would make me believe somebody inside Germany's ruling coalition still grasps the big picture.
But until these rumors are substantiated...
Politically a Grand Coalition between both major parties is in the works.
Tough times ahead. They need at least 70% of the electorate to push most laws through.
Substantial laws that are before the Bundesrat need 2/3 majority.
Austerity in Germany will be accepted. It needs to happen, it makes sense to all people.
Greece is a perfect showcase for stupid people that want to have their cake and eat it too.
Can you say, Black Swan?
Der schwarze SchwanFAIL on the book cover; it's purple:
http://www.amazon.de/gp/reader/3446415688/ref=sib_dp_pt#reader-link
"2, A warning, " I will do this again" because every time I do I win votes, votes that cannot be bought by your money anymore. My political career is more important than your wealth." Wait for this realization to reach the US."
This will never happen in the US...No, US political parasites will cling to their money all the way down the toilet bowl..it's all they know. Their last ditch effort to save their money scheme will be war. Mark my words.
Germany is the first to grab a seat in this musical chair charade..And they will survive.
Orderly insolvency or not, the bonds are fucking worthless and should not be accepted as collateral. Call, bitches.
It's quiet, too quiet.
Why not an orderly insolvency that works exactly like a prepackaged Chapter 11? Why not arrange a line of credit that works like a DIP financing? I apologize if I am being naive, but that sounds to me like it is a heck of a lot better than the combined euro/IMF package they stuffed down the Greeks' throats and the Greeks are going to end up with the equivalent of a prepackaged or a DIP financing in any event.
The big news in Germany is how Greece has been buying weapons for years.. despite massive deficits.. from Germany.
Why does Greece need a fleet of 6 U242 subs? To protect itself from a Babylonian barge attack?
People are scratching their heads.
I've had the pleasure of visiting the Club Med states during the 70's, 80's and 90's. Spent quite a bit of time there and met many people. Observed their customs and culture.
Work is NOT considered important. Club Med people are not defined by what they do for a living. Unemployment is not the end of their world. I doubt many even paid attention to the unemployment factor which hovered probably always around 20%, the deep South even higher.
People live off their families and friends.
The Club Med culture is completely opposite of the German culture for example. Work ethic and quality of a job are a big deal to Germans.
This is not some bullshit story. It is what it is. This should have been considered at the time the Euro was implemented. Giving these people a currency that they cannot manipulate is sheer insanity. Southern Europe never lost any sleep over currency devaluation.
I wonder who stands to lose when Greece can't afford to honor it's agreements for future arms purchases? I wonder if any of those companies are deeply politically connected here in the US intelligence and MIC community?
Hmmm.
One to think about.
Mostly I like your point of view but would you consider getting off that horse of yours "Germans are better" and all people in other countries are inferior? It would add a lot of credibility to your posts.
I will consider it. LOL.
Seriously though. I love the Club Med lifestyle. Would rather be there with my family and enjoy life just like they do. It is cultural. Germans are uptight, work, work, work and .. arrogant. Kinda like Americans. But the reality is that I've worked hard all my life. I saved and now my savings are squandered on bums. Not just our own bums, but the bums in other countries as well.
Germans chose to form the common market,and then to join the common currency. They had historical reasons for doing so. Nobody held a gun to Germany's head. At the time, you probably reflected on how it would help ensure a peaceful world. Germany had something to gain from it as well. I suppose deep down, many always knew this day would come.
My father's family were tight assed, unemotional, hard working, frugal Germans. My mother's family were a bunch of fun loving, spendthrift, lazy drunknen Irish. My mother's family was a lot more fun to be around when I was a kid, but my father's family left a nice little chunk of change for us after they died. I've tried to find some kind of happy medium between the two extremes. The weirdest thing is that I sometimes get an overwhelming desire to drink a quart of whisky, put on some jack boots, and go out and kick some ass. I'm working on that in therapy.
Workers in Greece have longer average working hours than those in Germany.
Inflation starting at European level:
"MEPs award themselves €1,500 more in staff expenses" (per month)
http://euobserver.com/9/30107
In approving the report by Slovakian Social Democrat MEP Vladimir Manka to top up the parliament's 2010 budget with an additional €9.4 million, the plenary said it was determined to meet its additional co-decision responsibilities and greater legislative workload.
Merkel is kinda like the Ron Paul of Europe. Has some appeal - for hard money types, discipline, pain and purging. Beethoven and long walks in the Alps . I like it myself.... However...
It is out of touch with the US/Global zeitgiest. No one else in Europe will go along with this. If the Germans are really serious about the hard money/discipline and whips stuff - I see only one solution - they'll have to leave the Euro currency.
They will get huge pressure from the rest of the world to not leave the Euro.
But - as far as pushing the weaksisters out of the Euro - I think that is highly unlikely.
Therefore - expect further EUR weakness ( soon as the SNoB stops intervening that is!)
The media over here in Germany try its best to ridicul this ban.
There are a lot of "Economists" like Hübler or Zimmermann,which are known bank Lobby whores, which are pressing against this step und call Merkel and Schäuble as idiots which dont know what they do.
Start paying attention to the "Grosse Koalition" talk.
Grosse Koalition means 2/3 majority in Bundesrat. Means that austerity measures can be pushed through.
I start to think, Merkel reads Zerohedge.
Steady on. Possibly "orderly insolvencies" with EU support, which is what Greece should have been given in the first place.
Speaking of which, though: isn't Greece in a strange position now? The German government is admitting that Eurogroup restructurings are reasonable and appropriate, at the same time as it's pushing through a rescue package for Greece which will enormously increase Greek debt for several years on the basis that a Greek default is unthinkable? Does Merkel really think that the Greeks won't push on the open door? Or does she expect or even hope that they will, and she just wants to leave them to take the flak for it?
I think many are underestimating the degree of German anti-Anglosphere sentiment. They're revolting against it. Merkel has called for regulating hedge funds, imposing bank taxes, outlawing derivatives on certain German assets like state owned banks.
Germany is a highly centralized economy compared with the US. There's more trust in authority and government regulation than here. Citizens enjoy many entitlements we don't get.
Merkel and many Germans are viewing this phase of the crisis as a final confirmation that US lead debt pyramiding has infected the rest of the world and is imploding. Wall Street will get hurt by their legislation. But so will the peripheral Euro countries.
The weakness in the "Orderly Insolvency" plan is the political backlash. Although I too feel that deflation is the only answer, there are risks.
Anybody who works hard and is productive is revolting against it! Time to get kill all parasitic activity...
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It seems that a straight-up "orderly insolvency" response to the next turn in the PIIGS crisis would be downright liquidationist, with big banks across Europe blowing up. (And yet maybe even inflationary...) That's why I wonder if the German government is really committed to such a strategy, or if it's attempting a bluff (like the "just let them fail" liars elsewhere) or some kind of bailout shell game.
The IMF's take on Sovereign Bankruptcy
http://www.imf.org/external/pubs/cat/longres.cfm?sk=15993.0
I read just that Italy have 627000 stat owned official cars for every little polititian ass.
They now whant to impose a law to give the drivers imunity so they can drive like crazy throug the street without penalty.
Nice italians.
They deserve a bailout.
If you are lookin for corruption look at italy.
http://www.tagesanzeiger.ch/ausland/europa/Sorgenfrei-rasen-im-Dienstwag...
orderly insolvency? Is that like retreat? I have never seen an orderly retreat..
The Europeans/Japanese dont really get capitalism. They are central planners at heart. Uncomfortable with risk. Engineers - who think they can design/repair the economy like they would design/repair a car. If you put smart engineers on the job - cars can be engineered - great cars. If the car fails - it is due to poor engineering. Unfortunately the economy is not like that. markets are not like that. They dont get this. They are goo-time capitalists - dont like the "risk" bit. Th US govt is kinda heading in that direction too - but the DNA is very strong - maybe the capitalist DNA is strong enough to resist a few years of wanna-be central planners.
But Europe - I think they dismantle the markets at the earliest opportunity - they have no taste for it. They dont like the prices or the message .
You have 550 million people that are used to a certain stability and quality of life.
If the free market was self regulating and not manipulated, I would agree with you.
Time to bring it back to a healthy level.
Doesn't look like American's "get" capitalism either. Gunboat extortion mafiocracy feudalism. Everything else is feel good lacquer so the chumps don't figure out the American dream is only for those animals who are more equal than others.
A would prefer a system run by engineers. Much better than one run by lawyers and bankers.
NoFault DeFault!...LOL
Long German Sonderweg, Bitchez!
EURUSD buying support is still evident.
Updates:
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
10:30 05/20 GERMANY FINMIN: WE CANNOT AFFORD TO BUY GREECE MORE IPADS
10:30 05/20 GREEK MIN: CONSIDERING BAN ON NAKED SHORT GERMANS ON OUR BEACHES
..for those who haven't seen it, today's best one.
10:30 05/20 GERMANY FINMIN TO HEDGIES: ALL YOUR BASES ARE BELONG TO US.
Donate? Bandwidth? Yes that's all well and good but what about censorship. I was on this morning and saw headline re 100K marching in Greece and considering storming parliament, and then ZH 'went away' (we assume due to mkt volatility and asscoaited volume to site). When it came back a short time later the Greece story was not there. Taken down? Censorship??? on ZH? Tyler, say it ain't so!
What are you talkin about?
http://www.zerohedge.com/article/live-feed-athens-100000-greeks-go-strik...
My bad - busy day, crazy amount of posts. Starting to think there are 100 Tylers!
please click on the ads from time to time. I registered for one of the ad pages :)
For several days I have been warning of EURUSD buying support as detected by my indicators, and this has been confirmed by the recent break out.
The proprietary indicators I use can identify trend changes before they occur.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1