Goldman Agrees With Zapatero That Spain Needs No Bailout, As Goldman Prop Desk "Does Its Thing"

Tyler Durden's picture

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MilleniumJane's picture

"even as Goldman sets everyone at hypnotic ease. "

 

Poetry.  Reminds me of Kaa the python from the Jungle Book.

docj's picture

Trussssssst in meeeeee...

Trussssssst in meeeeee...

Sssssshut your eyesssssss...

And trussssssst in meeeeee...

101 years and counting's picture

Time for GS to tell their clients now is a good time to long EUR?

With a stop loss at 1.00?

 

4shzl's picture

Goldman sets everyone at hypnotic ease.

Apparently not in the FX pits -- the yourowe just cracked 1.2980.


daz's picture

no bailout needed today... but what about tomorrow....

 

Gordon_Gekko's picture

The question of Spain needing the bailout is easily resolved - nothing is more sure of happening than when it has been officially denied.

On another note, I wonder why EUR starts collapsing due to a few hundred billions in bailout for one little country (or a few countries) when the United States has been printing trillions with abandon to bail out the ENTIRE world yet nothing is happening to the dollar.

carbonmutant's picture

"I wonder why EUR starts collapsing due to a few hundred billions in bailout for one little country (or a few countries) when the United States has been printing trillions with abandon to bail out the ENTIRE world yet nothing is happening to the dollar."

Because the US controls the Rating Systems...

Carl Spackler's picture

No, it is actually because you have to have a bigger bankroll than "the house" (in this case, the largest casino or GDP in the world) if you are going to try and push them over the tipping point.

As well, Bernanke can print money in really, really big quantities, making this too difficult to bet against.

Greece, Spain, Portugal...these are all little pipsqueaks in comparison.

Rainman's picture

The dollar is still the best looking whorehouse in a big neighborhood full of crack houses.

Budd Fox's picture

"The dollar is still the best looking whorehouse in a big neighborhood full of crack houses."

Priceless...I'll share it.

Bonesetter Brown's picture

To name a things the US has that EU/EMU does not:

common fiscal policy

political union

deep, liquid, unified sovereign debt market

ability and willingness to engage in QE

a military

better energy independence, through its own energy resources and control of the Sunni oil fields

better demographics, if only relatively better

more alignment with China and the rest of Asia-Pac, if only relatively better alignment

...i'm not sayin', i'm just sayin'

Sudden Debt's picture

Funny thing about rumors.... they always tend to have at least some truth in them.

I think the fuse is lit and the candybomb will soon explode. Sweet or bittersweet, that will be the surprise.

Hondo's picture

And who in the world is going to trust GS.  Not I....

Wheatman's picture

Zapatero's denials are just like lehman's before it went down. Ditto Greek denials of need for aid. Ditto GS denies guilt. Ditto Buffet denies GS in trouble. The entire system is about to implode and the sooner the deck of cards collapses the better. Everyting will deflate in terms of wheat. Revelation 6:6

Buck Johnson's picture

You are right Carl Spackler, we have a bigger bankroll to use.  Also everywhere you go the dollar is used or can be purchased, dollar is the planets reserve currency.  But it is in a small sense happening in the US via the stat govt..  They are all needing money because they had to rosy of a fiscal scenario in thinking that tax revenues will be this or that (sorta like EU countries).  But the US doesn't really want to bailout the states because if they bailout one the rest will follow using their senators and congressmen and women to help.  And then what happens, those billions of dollars that are printed our put back into circulation of our economy alot quicker which will show inflation/hyperinlfation.  When we send the money overseas, it takes awhile to get back and most of the time its being used to buy treasuries or bonds, which the Fed can keep out of the local/US economy.  This won't enable inflation as much as direct money to the people or states who will use it to buy this or fund that etc. etc..

 

We can export our inflation out to the world and soak it up on the way back via treasuries and other paper instruments.   Greece is like a state in a country of 16 states/countries.  They need a bailout and we see the currency of the euro taking a beating because of what that bailout means.  It means that they are debasing the currency in order to prop up a country/state.  Another big thing is that since these countries in this Union compete with one another, it's real hard to get them to do something like monetize their currency (until know).  But since they said they are via the loans, then their currency is taking a beating and will continue to take one.

Brett in Manhattan's picture

This reminds of how all the experts said Lehman was a different story than Bear.