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The Greek Bailout's Two Secret Exit Clauses: Why Europe Is Now Cheering For Its Own Demise

Tyler Durden's picture


When all of Europe rushed into its rescue package two weeks ago (first half a trillion, market red, then a full trillion, market green), the one thing that struck us as odd was the conflicting data on the conditionality of the package, with various sources both confirming and denying that the "package" was revocable. It did seem somewhat shortsighted of the Germans, whose political leadership would soon be on the verge of a series of electoral routs, to tie its fate without even one exit hatch, to a country that is a financial toxic spiral. Sure enough, the Telegraph's Evans-Pritchard has uncovered what may be the two loopholes in the European bailout agreement. While the first one is not surprising, the second one explains why the biggest sellers of European government debt (and/or buyers of Euro sovereign CDS), are likely the governments of the distressed, and core, countries themselves.

Markets have been rattled by reports in the German media that the Greek rescue deal contains two secret clauses. The package will be "immediately and irrevocably cancelled" if it is found to breach the EU Treaty's "no bail-out" clause, either in a ruling by the European court or the constitutional courts of any eurozone state. While such an event is unlikely, it is not impossible. There are two cases already pending at Germany's top court in Karlsruhe, perhaps Europe's most "eurosceptic" tribunal.

The second clause said that if any country finds it cannot raise funding for the rescue at interest rates below the 5pc charge agreed for Greece, it may opt out of the bail-out. BNP Paribas said this would escalate quickly into a systemic crisis if Spain were in such a position, because the other countries cannot carry an ever-rising burden. The bank warned the euro project itself may start to disintegrate rapidly if these rescue provisions are ever seriously put to the test.

The second clause is particularly troubling: since most European countries will soon see massive hits to their GDP, resulting in inevitable spikes in borrowing costs, this becomes yet another example of a game theory arrangement where the benefit to the first defector is far greater than any dowside, with the last to defect left holding the bag on what would basically become a bail out of all of Europe. Many have wondered how arguably intelligent people could come up with a rescue package of Greece in which Greece itself is supposed to contribute to its own bailout. Now we know that this was the ploy all along. The second Portugal, Spain and Italy are dragged under by the vigilantes, their participation in the $1 trillion bailout ends. And when that happens, the full cost of the bailout will be borne by none other than the "richest" member of the IMF, the United States. Obviously, the incentive to blow up one's borrowing costs in this arrangement are huge, now that both Germany and the US have no choice but to bail out each and every dropping domino. Which is why we are confident that in the very short term we will see credit spreads of the PIIGS blowing out yet again, and in the medium-term, some diligent reporter will get an anonymous tip that the biggest buyers of Spanish CDS are Santander and BBVA, the biggest buyers of Italy CDS are UniCredit and Intesa SanPaolo, the biggest buyers of UK CDS is Barclays (RBS still has to figure out how to sell its Greek bonds, let alone how to trade CDS), etc.

The bottom line is that all of Europe is now incentivized to blow itself up, and it doesn't even have to put too much effort into it. All the borderline European countries have to do is raise their funding costs to above 5%: this is mere basis points away from where most are trading already. After all the US has no option but to bail them out: Bernanke has made it clear that his Wall Street bosses will not allow their European colleagues to be dragged down by something as trivial as total insolvency, which in turn would uncover just how bankrupt our own financial system is. These are the perverse incentives in what is now officially known as farcist capitalism.


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Tue, 05/25/2010 - 22:55 | 373498 Crab Cake
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R.E.M. - It's The End Of The World As We Know It

Wed, 05/26/2010 - 06:24 | 373859 MrTrader
MrTrader's picture

I will contribute some sort of facts to the Greek situation. Let's take a look at the lastest Bank of Greece ( central bank ) household and corporate deposits ( domestic residents ) :

227.355 million EUROs or in other words 227,35 billion EUROs. Question : Why has the world to bail out the RICH Greeks ???????

Tue, 05/17/2011 - 02:00 | 1282107 Karston1234
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This was really a very interesting article that I really do appreciate.
phd degrees online
associates degree
distance education

Tue, 05/25/2010 - 22:58 | 373500 Apostate
Apostate's picture

More apropos of the impending mass-death of the Eurocratic vampire clans:

Bauhaus - Bela Lugosi's Dead

White on white translucent black capes
Back on the rack
Bela Lugosi's dead
The bats have left the bell tower
The victims have been bled
Red velvet lines the black box
Bela Lugosi's dead
Undead undead undead
The virginal brides file past his tomb
Strewn with time's dead flowers
Bereft in deathly bloom
Alone in a darkened room
The count
Bela Logosi's dead
Undead undead undead

Tue, 05/25/2010 - 23:03 | 373502 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"The bottom line is that all of Europe is now incentivized to blow itself up, and it doesn't even have to put too much effort into it."


You are absolutely correct.

So, how does this go now?  Does Europe want a strong dollar for this to work?  Or will the added cost of bailing out the WORLD weaken the dollar?  And what will equities do with America as dead man walking?  Either way, the sky is the limit for gold.

PS, ZH IS a life saving device.  Use accordingly.

Wed, 05/26/2010 - 00:48 | 373686 nuinut
nuinut's picture

Who gives a shit?

You got ya gold haven't ya?

The view sure is good from here, pass the popcorn, eh?

Wed, 05/26/2010 - 01:25 | 373724 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I do.


The view....well, I would rather not watch my people succumb to the tyranny of a tiny few, so, hold the popcorn, I will be back in a minute.

Wed, 05/26/2010 - 01:53 | 373747 nuinut
nuinut's picture

Maybe I was a little callous; I do care that people will get hurt, but that has been inevitable for quite some time. I have made a concerted effort to alert others, as have many here no doubt, with some modest success.

I would very much like the inevitable to get underway, so we can get to the task of rebuilding a fairer future asap.

Wed, 05/26/2010 - 03:12 | 373799 Bringin It
Bringin It's picture

nuinut - I agree, it's difficult.  My advise is don't look back.  Remember Lott's wife.

Wed, 05/26/2010 - 03:45 | 373820 chumbawamba
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Some people just will not listen.  You can't help someone unless they are willing to help themselves.  You can lead an investor to a coin shop, but you can't make them buy.

But you must try.

I am Chumbawamba.

Wed, 05/26/2010 - 05:05 | 373845 UncleFurker
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>You can lead an investor to a coin shop

Unless they refuse to leave the house because Dancing with the Stars is on.


Tue, 05/25/2010 - 23:02 | 373508 doublethink
doublethink's picture


Here Comes The Calvary


Rothschild plan would see privatization of Britain’s massive public motorway


Tue, 05/25/2010 - 23:08 | 373515 Apostate
Apostate's picture

This is coming to the US as well, of course. It's already here in some parts.

The media is more concerned about covering Justin Bieber than anything real.

The public debts are invalid. These coming auctions are going to be overly opaque.

"nstead of drawing the tolls directly from motorists pocketbooks, the firms would draw up formulas that estimate the total number of drivers, which the government would then pay for in regular increments. Critics call the idea a "shadow toll," though it is seen as preferential compared to building new toll roads and electronic payment systems. The so-called "shadow toll" would also appear to be a possible route for deflecting the full brunt of an almost-certain public backlash."

This is wretched. That's not a true privatization.

Wed, 05/26/2010 - 01:23 | 373722 faustian bargain
faustian bargain's picture

It's fascization. Fascistization?

Wed, 05/26/2010 - 07:04 | 373875 MsCreant
MsCreant's picture

Justin Bieber? Who is that? Don't bother, I will google.

Wed, 05/26/2010 - 10:56 | 374151 WaterWings
WaterWings's picture

"We don't say that in America."

Wed, 05/26/2010 - 07:48 | 373891 AnAnonymous
AnAnonymous's picture

Why is it not true privatization? They own the stuff. They way they exploit it is theirs.


Always interested in knowing the rationale behind statements like not true privatization.

Tue, 05/25/2010 - 23:14 | 373521 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Hmmm...who are these Rothschildes you speak of?  Let me get some books...

OK, old banking family from the 18th century....changed name to Red Shield, well thats odd, why would anyone change their name?....anywho....chartered the first Banking Houses of Brittain, France, Italy, Germany, Austria; wow the major States!....COat of arms is the same as the coat of arms for Brittania, how ironic....Created many many many currency collapses over the centuries.....collapsed London by claiming Brittish defeat at the hands of Napoleon, and then bought up all assets at pence on the pound; well that wasn't nice!....intermarried until the 20th century, weird....founded LBMA.....ducked out of banking in the 80's except for their shares in Barclays; doesn't Barclays own ishares silver trust, the worlds largest silver reserve? they want to privatize infrostructure huh?  Well upon reading "The House of Rothschilde: The World's Banker" by Nigel Fergeson, I am not surprised!

Wed, 05/26/2010 - 02:24 | 373765 Howard_Beale
Howard_Beale's picture

LH, my friend, the book was written by Naill Ferguson. Just a little typo and I won't comment on the rest....Brittish, British, Tomatoe, Tomato. Sweet dreams.

Wed, 05/26/2010 - 01:03 | 373707 TJW
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Here Comes The Calvary

Now THAT is funny. Dark humor, I admit. But funny.

Wed, 05/26/2010 - 01:52 | 373746 Privatus
Privatus's picture


Sat, 02/19/2011 - 18:51 | 978151 web dizajn
web dizajn's picture

oh no, not the Rothschilds again! web dizajn

Tue, 05/25/2010 - 23:04 | 373513 Gimp
Gimp's picture

Ladies and Gentlemen start your printing presses!

Tue, 05/25/2010 - 23:05 | 373514 Matto
Matto's picture

Burn baby, burn.

Tue, 05/25/2010 - 23:14 | 373523 Mr Lennon Hendrix
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US inferno!

Tue, 05/25/2010 - 23:30 | 373553 Matto
Matto's picture

Global Inferno!!

Tue, 05/25/2010 - 23:54 | 373600 Mr Lennon Hendrix
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Wed, 05/26/2010 - 11:00 | 374165 WaterWings
WaterWings's picture

I want to dance till I'm dead:

Tue, 05/25/2010 - 23:11 | 373516 Me XMan
Me XMan's picture

Benny fucking us again???

Tue, 05/25/2010 - 23:24 | 373543 LeBalance
LeBalance's picture

there was a stoppage?

Tue, 05/25/2010 - 23:27 | 373545 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah, he had to readjust and relube.

Wed, 05/26/2010 - 00:50 | 373690 nuinut
nuinut's picture

Maybe you're just getting numbed to it.

Wed, 05/26/2010 - 01:23 | 373721 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Oh for real?  Naw, BS is doin a corpse if you want to get into it.  Necro Ben nuinut, necro ben.

Wed, 05/26/2010 - 01:45 | 373738 knukles
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I'd been thinking of the 3 Stooges, but NecroBen takes the cake.  WS and DC Rapes and Kills 'em and NecroBen tosses the corpse.

Oh, and Barney gets to Chair the Committee for the Ultimate Redesign of the Financial System.  Somehow being in Good Hands with the State does not here compute.

Can anybody please address the Disease rather than the Symptoms; the very Wall Street and sycophant Business Models and their Cheering Section amongst the Law Givers? 

Wed, 05/26/2010 - 00:53 | 373692 SecretGoldfish
SecretGoldfish's picture

lube?  hell, ben ain't even gonna spit on it.

Wed, 05/26/2010 - 00:11 | 373628 doublethink
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The turbulence in financial markets in the last couple of weeks has been ascribed by reporters to doubts about the long-term stability of the euro, and concern over the finances of southern European countries. This is over-optimistic. Whether or not the current market downdraft proves temporary, monetary and fiscal policies in the United States and worldwide have been excessively stimulative since the September 2008 market meltdown. Thus we are at some point in the near future going to suffer the second Bernanke crash.


Tue, 05/25/2010 - 23:11 | 373517 DoChenRollingBearing
DoChenRollingBearing's picture

I need to find some better pills, it seems like things are getting worse even faster than I had thought.  My bottle of Absinthe is half gone too.

There in Europe, here in America.  Yes, the Rothschilds might do very well out of all this.  And whoever their lapdogs are here.

Tue, 05/25/2010 - 23:20 | 373533 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Find a grower, ask for the leaves, make butter.  That will make you remember your days sippin' absinthe in a flash. 

Rothschildes are banking on this.  And they, my friend, have ALL of their assets in gold and silver...for real.

Tue, 05/25/2010 - 23:58 | 373611 AnXmarine
AnXmarine's picture

Try Soma, it's got all of the advantages of Christianity and alcohol with none of their defects.  Afterall, one cubic centimeter cures ten gloomy sentiments! You can take Soma when you have all those dreadful ideas and you'd forget all about them. Then, instead of feeling miserable, you'd be jolly. So jolly!  

Wed, 05/26/2010 - 00:30 | 373654 Mr Lennon Hendrix
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Ok, and Kava is cool too.  I like drinking kava tea from Yogi Tea.  That will knock you right out.

Wed, 05/26/2010 - 01:09 | 373711 DoChenRollingBearing
DoChenRollingBearing's picture

I have perhaps carisprodol, but perhaps not enough.  I can take advantage of that soon.  Maybe buy soma at the rate I buy gold.

Wed, 05/26/2010 - 08:07 | 373901 MaximumPig
MaximumPig's picture

Absinthe half full! be optimistic! lol

Tue, 05/25/2010 - 23:14 | 373520 brushfire
brushfire's picture

this is perhaps the most important article i've ever come across on ZH, and that is reallly saying something. truly, im speechless. if this is true, gold

Tue, 05/25/2010 - 23:18 | 373528 Nihilarian
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You put your hand up on my hip, when I dip, you dip, we dip.

Tue, 05/25/2010 - 23:31 | 373556 silvertrain
silvertrain's picture

you put yours , and I put mine 

and we can dip down low and roll and grind 

Wed, 05/26/2010 - 07:52 | 373894 velobabe
velobabe's picture

testing testing††

Tue, 05/25/2010 - 23:19 | 373529 Turd Ferguson
Turd Ferguson's picture

You know, all of this has been to buy time. 

The Fed, Congress and the WH all know that we're fucked if the economy (tax receipts) doesn't recover fast enough to manage the debt. They enlisted CNBC to pump their propoganda of MOPE. They gave billions to GS and JPM to form the PPT that buys SPY anytime the market looks dicey. They all hoped they could buy time thru pretend&extend and that it all might work out in the end.

Sadly, as it always does, events are beginning to rapidly spin out of control. Where Benny and B'rock thought they were buying time until 2012-14, they only made it to now. Its like a nuclear reaction. Once started, it cannot be contained and the speed of burn only accelerates.

The American Idiot has no clue what is coming. He/she is just trying to make ends meet. Make the mortgage. Educate the kids. Save a little for retirement. But the end is near. The only America we've ever known, the post WW2 America, is passing away. 

What emerges on the other side is anybody's guess. A hungry and scared electorate will trade almost any and all freedoms for the "hope" of prosperity and safety regained. My best guess is some form of fascism, a TBTF corporatist/statist fascist semi-police state. 

This could have been prevented. No. I take that back. I'm not sure it could have been prevented. Once the US decided, as the sole provider of the global reserve currency, to take it upon ourselves to issue unlimited amounts of fiat and debt, the jig was up. The forty years it took for the end to begin seems like a logical amount of time.

At any rate, this will all soon be over. The final tipping point, our generation's Arch Duke Ferdinand, will soon be upon us. My prayers are for my family and friends and all of you hear at ZH. 

Tue, 05/25/2010 - 23:21 | 373536 Missing_Link
Missing_Link's picture


Well said, TF.

Wed, 05/26/2010 - 01:49 | 373742 knukles
knukles's picture

Well said.  The Orwellian future of the True Mercantilist State.

Tue, 05/25/2010 - 23:22 | 373537 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Tue, 05/25/2010 - 23:29 | 373550 Hansel
Hansel's picture

We already have "a TBTF corporatist/statist fascist semi-police state".  Sounds like you are predicting the status quo.  Don't hurt yourself out on that limb.

Tue, 05/25/2010 - 23:34 | 373559 Turd Ferguson
Turd Ferguson's picture

I suppose you are right, however many are blinded to the current state. In the near future, there will be no such illusions.

Wed, 05/26/2010 - 00:06 | 373598 Crab Cake
Crab Cake's picture

Buck up TD.  All is well.  All is as it should be.

Renewal through chaos, nature's way.  The forest can't avoid the flame forever, and as is obvious, a forest without getting scorched once in a while is a terribly unhealthy thing.

I'm not so worried about the police state issue here in the US.  I think its has just about had its hayday.  The moment illusion vanishes, reality will meet a populace armed like no other on the face of the planet.  There is a line within each of us, and when it gets crossed, deep in every true American's psyche there is a middle finger that gets thrown.  It's a national trait.  The US will be a roving mess of fracture, lawlessness, and pockets of government before an OVERT fascist police state took hold; IMO. 

Let it be.  Like every day, prepare yourself to die well, and struggle to find the light; that's all we get.  Que sera sera.

Ecclesiastes 1:9

 What has been will be again,
 what has been done will be done again;
 there is nothing new under the sun.

Wed, 05/26/2010 - 00:08 | 373622 Turd Ferguson
Turd Ferguson's picture

Well said, my friend.

Wed, 05/26/2010 - 11:09 | 374178 WaterWings
WaterWings's picture

Crime stats are scrubbed/omitted, then passed on to the FBI. Maybe the other way around. Rising crime in Chicagoland points more to general unrest - calls for National Guard troops: effective martial law. Watch for more of this as even more law enforcement budgets are slashed...calls for troops...external violence is the only way to wake some people up. It'll be too late. This will be like BP trying to stop an oil spill.

But if I shove a rifle up your butt then you'll know how effective gun bans are:


Wed, 05/26/2010 - 00:07 | 373620 Jack H Barnes
Jack H Barnes's picture

Citys are laying off officers in most places, Counties are firing Sherrifs, States are not hiring troopers.  Reality is, we are cutting our police enforcements at all levels but the Federal level.

They, (The Feds) are growing in number...


Wed, 05/26/2010 - 00:25 | 373650 Apostate
Apostate's picture

Sure... but how long can you keep a man's loyalty with green paper?

The entire government is mercenary. When the money drains away, so does the power.

Wed, 05/26/2010 - 08:08 | 373902 MaximumPig
MaximumPig's picture


Tue, 05/25/2010 - 23:30 | 373552 Ataraxia
Ataraxia's picture

"You know, all of this has been to buy time." 

You are correct... It's bought us almost two years, and I'm thankful. If the powers that be had allowed this thing to go down the way it should have in September of 2008, I would have been totally screwed.

I wasn't paying attention to anything other than the next paycheck back then. I had a mortgage, student loan debt, credit cards and no plan. Now, I'm out of the house; I've cut up and paid off the cards; I have a year's supply of food, have moved to a rural location and am armed appropriately.

It's taken me this long to prepare for what is coming, and I'm thankful to have had the time to do it. This government, by doing everything wrong, has allowed me to finally do things right for myself and my family. Count your blessings... You've been given the gift of foresight, and you are going to be alright.

Tue, 05/25/2010 - 23:40 | 373573 msjimmied
Tue, 05/25/2010 - 23:41 | 373575 saladbarbeef
saladbarbeef's picture

An interesting take on why they elites are so tone deaf to the trouble they are creating and the cries from the across the country to "STOP!"


Wed, 05/26/2010 - 00:02 | 373614 glenlloyd
glenlloyd's picture

precisely, and that's all it's ever been, buying time.

Wed, 05/26/2010 - 00:05 | 373617 JLee2027
JLee2027's picture

Have faith.  The collapse is an opportunity to throw the rascals out and fix things.  

This is hardly the end of America.  We will rebuild.

Wed, 05/26/2010 - 00:16 | 373635 silvertrain
silvertrain's picture

 Thanks man, now way I could have said it any better..

Wed, 05/26/2010 - 00:23 | 373646 doublethink
doublethink's picture


Are We There Yet?


If LIBOR continues to creep up and reaches, say, 75 bps, it no longer will be economical for banks to own US 2-year notes. In that case the US Treasury market will be in trouble. That’s when you head for the bomb shelter.


Wed, 05/26/2010 - 04:47 | 373841 Pondmaster
Pondmaster's picture

Thanx T.F.

I like the reference by another to Lot's wife , as well . I find it VERY difficult to pray for the hitmen who are trying to destroy us . The one they follow is the Father of Lies , they do as their father . Almost to a man , politicians ,large corporations .... uh ... mmph.. BP ..  um ,er... This should not really be a surprise to any who follow the Father of Light .

Can't have a one world goverenment without it occuring . Watch whom you bow down to and serve ....when it blows up . Peace !



Tue, 05/25/2010 - 23:20 | 373532 Missing_Link
Missing_Link's picture

Fascinating.  It hadn't occurred to me that between suicidal acceptance of bailing out Greece and impossible denial with politically explosive consequences, there was a third choice: planting time bombs in the bailout agreement itself to detonate the bailout while simultaneously deflecting the blame from Angela Merkel when it fails.

I guess these kinds of clever shenanigans are why the politicians make the big bucks  ...

Wed, 05/26/2010 - 02:28 | 373768 Privatus
Privatus's picture

Well, these ruses are how the politicians take the big bucks, anyway.

Tue, 05/25/2010 - 23:21 | 373534 cbaba
cbaba's picture

On the surface everybody looks like helping each other, fed team talking with ECB and German counterparts, nobody wants euro go down but under the surface there is a chess game going on.

Europe wants a low euro to boom its economy and exports, cannot do it officially, by bailing out Greece and others, by printing more euros this will serve the purpose, but on the other hand the FED already printed vast amount of money and still the dollar is increasing, hitting the future growth( imaginary) targets, FED doesn't want to print more dollars , so its giving credit lines, in the meantime SNB is buying euros or printing francs,, its a shell game, in the end they will all loose and the winner will be gold.


Tue, 05/25/2010 - 23:24 | 373542 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And at the end they will probably turn to us and say, "Well you didn't read the fine print either." 

They had a recipe for disaster, and they baked the motha trucka.  WWIII is at the door, a new world order is what they have in store.

Tue, 05/25/2010 - 23:42 | 373568 cbaba
cbaba's picture

yes, that way they will help each other, just killing men from each side, they will decrease the number of men hence increasing the fiat value per ca pita.

Easy solution, bombs are stored , press the button and let the men die.

there is always a live target, Iran, north Korea, you name it, who would even think Iraq or Afghanistan before 9/11.

just now NK is more hot, nobody asks how a torpedo can be launched within the most hi-tech SK and US ships protected seas and then easily escape from the scene without even noticed. But that's not important we couldn't find any WMD in Iraq and that wasnt noticed either.


Wed, 05/26/2010 - 00:31 | 373659 TBT or not TBT
TBT or not TBT's picture

I dunno, I thought I read that somewhere else, the part about the WMD not being found.

Still, if peace is what we want, NK's subs should just regularly mysteriously dissappear with all hands.  It's a psycho state that doesn't need to have toys like that.  Full stop.

Wed, 05/26/2010 - 00:40 | 373672 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Pot, kettle...kettle, pot.

Wed, 05/26/2010 - 02:29 | 373772 Howard_Beale
Howard_Beale's picture

What a great sure not to join in the Mad Hedge Fund Traders advice on the TBT right now. Or do what you want.

Tue, 05/25/2010 - 23:40 | 373569 cbaba
cbaba's picture



Tue, 05/25/2010 - 23:28 | 373548 three chord sloth
three chord sloth's picture

Hey guys... did any of you see this?

Apparently, the exposure to debt from just Greece, Spain, and Portugal by the rest of Europe is much bigger than most people think.

Tue, 05/25/2010 - 23:32 | 373557 Tyler Durden
Tyler Durden's picture

The cool, calm and collected FT/RBS Joint Venture is just 2 months behind the ball as usual.

Explains why we have been bearish on France more than any other country since April fool's day

Tue, 05/25/2010 - 23:43 | 373578 three chord sloth
three chord sloth's picture

I should've guessed this place would be way ahead of the curve. Thanks!

Wed, 05/26/2010 - 00:17 | 373638 SilverIsKing
SilverIsKing's picture

Not just ahead of the curve but rather, the FT/RBS is probably picking up their "scoops" from ZH.  These guys are just 'hangers on.'

Wed, 05/26/2010 - 00:32 | 373660 Apostate
Apostate's picture

At the recent Milken conference, an FT reporter admitted to reading ZH.

These newsrooms are absolutely sucking on ZH's fumes. The entire model of journalism exists to prop up the SEC regime of speech controls, support government propaganda organs, mis-inform the populace, and facilitate abuses of power.

Now that there's ferocious competition from anti-authoritarian news sources using encryption, the for-profit media has no choice but to begin discussing the truth.

It's manufacturing "red pills," grinding 'em up, and dosing the water supply.

Wed, 05/26/2010 - 00:41 | 373673 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yes, the names are fluoride, HFCS, aspartame, and chlorine.  The four horsemen of the 2pacalypse.

Wed, 05/26/2010 - 03:16 | 373805 Illya Kuryakin
Illya Kuryakin's picture

Chlorine? Damn I just did the pool.

Wed, 05/26/2010 - 10:09 | 374042 Voluntary Exchange
Voluntary Exchange's picture

Switch to ozone!

Tue, 05/25/2010 - 23:50 | 373585 cbaba
cbaba's picture

I am sure they know it, but first they hide and sell all toxic stuff in their hands and then publish what is actually going on in Europe.


Tue, 05/25/2010 - 23:50 | 373587 cbaba
cbaba's picture



Tue, 05/25/2010 - 23:56 | 373607 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

1 year anaversery 6 days ago!  Way to go bro, and congrats!!!!!!!

Wed, 05/26/2010 - 00:21 | 373640 Miles Kendig
Miles Kendig's picture

With all of the juice that has flowed to the pink sheet from these pages I would have hoped for more than a rare passing of attribution.  Wouldn't do to have the FT readership know how reliant upon free thinking bloggers it has become.  Best to chafe 'em without rinse since ZH has far greater readership and more importantly, influence than Alphaville ever will.  Rock 'em Fight Club !

Tue, 05/25/2010 - 23:31 | 373554 Freebird
Freebird's picture

So extend & pretend. Lip service. Everybody need an out, right?


Tue, 05/25/2010 - 23:40 | 373571 Immanuel Cunt
Immanuel Cunt's picture

This made my day. Thanks, Tyler. I was worried the 1T bailout was real Sarkozy woodoo. It's nice to see it was just one of those dysfunctional smokescreens from Brussels. Pheeeeew.

Wed, 05/26/2010 - 00:06 | 373618 mikla
mikla's picture


When they threw away the EU charter to print, and violated individual sovereign constitutions to print, I feared we merely created another year of extend-and-pretend:  Just don't look in the black box, and we can all pretend to be fine.

However, upon reflection, we should have guessed that these are politicians doing what politicians do:  Hey, we tried, look at the great cover we provided for ourselves, because we voted *for* the bailout before we voted *against* it!


Wed, 05/26/2010 - 00:20 | 373642 Immanuel Cunt
Immanuel Cunt's picture

The lesson to take away is this:

Recession: The one time when it helps when your burocracy is useless.

Tue, 05/25/2010 - 23:57 | 373608 cephalo
cephalo's picture

"There in Europe, here in America.  Yes, the Rothschilds might do very well out of all this.  And whoever their lapdogs are here"

Apologies but had to repost this:

HeliBen is doing exactly what he’s told to do. He is in line for one of these:

Order of the British Empire

“Several past American statesmen and diplomats who have performed service for, or on behalf of, the United Kingdom have been given the designation of Knight Commander of the order”.

Interesting list:

List of honorary British knights and dames;

·         George H. W. Bush - GCB (1993)

·         Rudolph W. Giuliani - KBE (2002)

·         Alan Greenspan - KBE (2002) also, Commander of the Légion d'honneur (Legion of Honor) – (Alphonse James de Rothschild - Alfred de Rothschild - James Mayer de Rothschild - Marie-Hélène de Rothschild)

·         Not Honorary The Rt. Hon. The Lord Rothschild, OM, GBE, FBA (1998)

·         Ronald Reagan - GCB (1989)

·         Caspar Weinberger - GBE (1988

·         Edward Kennedy - KBE (2009) – (Tokenism)

·         Wesley Clark - KBE (2000)

·         George Patton – GCB

·         Colin Powell - KCB (1993)

·         Dwight D. Eisenhower - GCB (1945), OM (1945

·         Bill Gates - KBE (2004

To list but a very few.

What kind of service/s have they performed for, or on behalf of, the United Kingdom?

President Kennedy’s Executive Order 11110 of June 4, 1963, sealed his fate; do not fuck with the banksters. Presidents who attempted to or did revoke the authority of the banks to control and print money had the same fate. Abraham Lincoln, James A. Garfield, William McKinley and a failed attempt on Andrew Jackson.

The thlot pickens.

Wed, 05/26/2010 - 07:59 | 373897 cbaba
cbaba's picture

Only one we know,who couldn't get this medal and killed, its the President Kennedy.

What all others did to protect Rotschilds are secret .


Tue, 05/25/2010 - 23:57 | 373609 RobotTrader
RobotTrader's picture

Wed, 05/26/2010 - 00:10 | 373624 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

That is like the CCTV building, this building that did not fall down do to fires, unlike World Trade Center building seven that collapsed at free fall speed due to office fires on the floor that the CIA operated out of.

CCTV Towering inferno:

builing seven dust cloud:

Wed, 05/26/2010 - 00:08 | 373623 Raymond K Hassel
Raymond K Hassel's picture

and we are all secretly quite relieved - personally I got my gold, and the prospect of getting real religion now will feel like a 30 year slow pull on the bandage - just doesn't sound like nearly as much fun.  Thankfully no cola built into my ex-wife support payments ;)

Wed, 05/26/2010 - 00:10 | 373626 abalone
abalone's picture

I wonder who will gain History's notoriety for igniting the inevitable? Will it be an entire nation of people who shall carry the stigma or perhaps a international head of state?

Wed, 05/26/2010 - 07:20 | 373883 bigdumbnugly
bigdumbnugly's picture

when you know who comes out on top in the end and writes the history, you will have your answer.

Wed, 05/26/2010 - 00:11 | 373627 Miles Kendig
Miles Kendig's picture

As this latest rendition of dollar trap to supposedly wick away the poison gets up and running.  Transfer it all the the fed, in return for full faith and credit treasuries or just a swap line.... What a racket !!

Wed, 05/26/2010 - 01:30 | 373727 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

How long do we have before the Fed tells us they put the rates in the negative.

"No trust us, it'll work." -Ben Shalom Bernanke

Wed, 05/26/2010 - 02:06 | 373756 abalone
abalone's picture

I would think interest rates will start to rise once the initial vapourisation of the worlds monetised debts gets underway to keep the pressure on the masses to give up something our unknown creditors would like. On a side note who are these creditors that all these nations owe money to? How does one invest in such great schemes? It does appear crazy at first that TPTB are printing like crazy but as pointed out in another post on this thread, unpaid debt can still be paid back with important public infrastructure. Now what better way to fleece the people than to saturate the populous with a unmanageable debt & then offer them the debt relief program of the future whereby one relinquishes what was taken for granted before the GFC for an easy once a month payment via the government to the creditor who never really had the money to lend out in the first instance & wa la next rort soundly in place.

Wed, 05/26/2010 - 04:47 | 373840 Miles Kendig
Miles Kendig's picture

Restructuring gives way to resolution gives way to repudiation.  Sop up as much as can be then good bank/bad bank it and drive on...  We'll see.

Wed, 05/26/2010 - 05:12 | 373847 PeterB
PeterB's picture

Anticipatory repudiation maybe, as all the money will somehow have vanished. The saying 'that the return of money will become more important than the return on money' has never been more true.

Wed, 05/26/2010 - 00:31 | 373658 williambanzai7
williambanzai7's picture

A bailout market out clause. Must be a first.

Wed, 05/26/2010 - 00:36 | 373669 Rusty_Shackleford
Rusty_Shackleford's picture

Got a kick out of this quote from Evans-Pritchard's article:


"It turns out we weren't seeing the light at the end of the tunnel after all, but a train with a big light on it coming towards us of double-dip," said Dr Suki Mann, at Societe Generale.

Wed, 05/26/2010 - 01:13 | 373716 Apostate
Apostate's picture

I'm glad Dr. Suki has a sense of humor!

Wed, 05/26/2010 - 00:43 | 373674 doolittlegeorge
doolittlegeorge's picture

what did Chevy Chase say in the movie "Fletch" when the cops had him in jail with a pistol to his head?  I think it was, "Thank God.  The Police." It's funny how quickly society not only "turns us in" but "turns on us" no less.  It's what I despise about The Third Reich.  Hitler?  No.  Everybody turning everyone else in then when "the whole edifice" heads south then says "go kill yourself."   It's so friggin' common.  Napolean said "never assume malice when simple incompetence will do."  Even if this story isn't true it has "the ring of truth."  Like somewhere in our "citizen leader's" financial DNA is nothing more than a self destruct button.  In other words "Captains of Chaos" and nothing more.  Indeed Hollywood needs a re-airing of the movie Citizen Kane for the whole world to see just in case "the folks" were wondering about the "morality of it all."

Wed, 05/26/2010 - 00:44 | 373677 silvertrain
silvertrain's picture

 so give it to me straight doc, how much time do we have? Estimates please..

Wed, 05/26/2010 - 01:28 | 373726 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

6 months of crazy assed markets until they burn in effigy.

Wed, 05/26/2010 - 00:57 | 373697 Mentaliusanything
Mentaliusanything's picture

Tyler D I want your address to send my dry cleaners bill - Soiled they are - Big time. shirt,undies, pants (and the shoes are making squelchy sounds)

Your just a barrel of laughs ;)

Wed, 05/26/2010 - 01:17 | 373717 Silver Bullet
Silver Bullet's picture

Finally, some good news...

Wed, 05/26/2010 - 02:02 | 373754 CustomersMan
CustomersMan's picture



 What Taxes To Increase in U.S. ?



I've heard that the gasoline tax may go up by 30 cents per gallon. The U.S. Gov't already has the mechanism in place to charge this and so it would be fairly easy to just raise it as opposed to trying a new tax where they would meet resistence and a refusal to comply.


Just thinking.

Wed, 05/26/2010 - 02:42 | 373776 Apostate
Apostate's picture

No reason to tax anyone when you have Mr. Bernanke's wondrous machine keeping you in power.

It's magic. He presses the button, strokes his beard, and wealth flows throughout the land. 

Wed, 05/26/2010 - 11:15 | 374187 WaterWings
WaterWings's picture

I think it's barrel. But still.

Wed, 05/26/2010 - 02:24 | 373766 jeff montanye
jeff montanye's picture

"is now incentivized" could have been "has now an incentive" with just one more keystroke. 

Wed, 05/26/2010 - 07:51 | 373892 MsCreant
MsCreant's picture

Don't think your phrase gets it as well as his. Incentivization is being coined here as a process. "An incentive" is weak, not enough, limp dick writing (not directed at you, but at the phrasing). What he is describing, for me, is that it is an institutionally embedded process, inevitably emergent from the structure that is our Ponzi economy. Fractional reserve lending with little or no reserves, fiat currency backed by nothing, naked shorting, subprime lending, Jesus Christ, what we have been allowing to pass as normal is insane.

Dude, just heard a terrible story. A special ed teacher described that they have to document the progress of their students with daily pictures of them accomplishing tasks. They have to do a ton of paper work too. There is very little time left to teach these students. Guess what they are doing? Dressing the students in different clothes so they can get different pictures and posing the "accomplishments" so that they can get the documenting done. Getting it all out of the way gives them some time to teach.

Ponzi special education. They are incentivized by the structure of the situation to produce this behavior. It is normal and rational to be dishonest because being honest is insane and does not get their needs met based on the exigencies of the situation. 

Incentivized gets at the "written on the soul by the culture" nature of the problem. 

Wed, 05/26/2010 - 09:33 | 373899 velobabe
velobabe's picture

yeah, look at the dumbing down of america while standing in line at the grocery store.

ponzi PR marketing. the magazines, i mean, this is the conception the core, may you, what is available for news. the god damn grocery stores. this is why not eating works for me†

incentivization = farcism

i touch myself†

          ..................J/K i am actually a morning person.



fuck, there are naked men running along side the peloton in the

Giro d'Italia
stone cold naked in the camera lens, what makes you men do things such as this.
for attention i suppose†
Wed, 05/26/2010 - 12:34 | 374396 MsCreant
MsCreant's picture

Where are my naked men?

Wed, 05/26/2010 - 21:39 | 376008 Miles Kendig
Miles Kendig's picture

Waiting on you to ding 'em my dear MsCreant.

At least that is what experience & observation has taught me.. after all we can't play blind all the time...

Wed, 05/26/2010 - 21:54 | 376041 velobabe
velobabe's picture

miles, your hilarious

plus spot on, every time†

Thu, 05/27/2010 - 01:22 | 376309 MsCreant
MsCreant's picture

Very handsome, too young.

Thu, 05/27/2010 - 02:50 | 376331 Miles Kendig
Miles Kendig's picture

Ya,  'cause you know the deal. 

Do you prefer a young wine, or one slightly older? - Isobel

Oh, slightly, slightly older- Miles

As a general rule the older wines are better.  You see it takes time for the elements in wine to resolve themselves into an harmonious whole...  It takes time & oxygen - Isobel

Thu, 05/27/2010 - 04:15 | 376361 velobabe
velobabe's picture

no no i like mine young, around .....................

It takes time & oxygen

just breath, slide..........................just slide


Wed, 05/26/2010 - 21:47 | 376033 Miles Kendig
Miles Kendig's picture

The package check game at Hedo II would suggest otherwise 'babe

Wed, 05/26/2010 - 21:56 | 376045 velobabe
velobabe's picture

explain, please

don't know a lot, Miles

package check game, Hedo II. hey i am ready to learn†

Wed, 05/26/2010 - 22:31 | 376084 Miles Kendig
Miles Kendig's picture

Ya, I am just learning too.  For singles, couples or groups..  Line the guys up, blindfold the chick and let her pick her mate from a package check only after checking the whole line up...  Same in reverse later, except its a chest check to mix things up a bit... 

Wed, 05/26/2010 - 22:40 | 376095 velobabe
velobabe's picture


that is what they all said to me.

.................oops, got away from me now, sorry†

Wed, 05/26/2010 - 22:57 | 376110 Miles Kendig
Miles Kendig's picture

hahahaha  You will always find what you think you will... Ginger could do everything Fred could, backwards and in heels.  Still she wasn't it until Fred led.

Wed, 05/26/2010 - 23:00 | 376138 velobabe
velobabe's picture

your a bit crazy, babe

we will leave it at that†


Thu, 05/27/2010 - 01:21 | 376305 MsCreant
MsCreant's picture


Thu, 05/27/2010 - 04:18 | 376362 velobabe
velobabe's picture

yep, i would definitely make you dance, too†

Thu, 05/27/2010 - 01:21 | 376307 MsCreant
MsCreant's picture

Crazy like a fox.

Wed, 05/26/2010 - 02:42 | 373777 carbonmutant
carbonmutant's picture

You people need to stop talking this trash the EURO is beginning to fall again.

Wed, 05/26/2010 - 02:47 | 373781 CustomersMan
CustomersMan's picture



I just read a article over at Mish's. It said among other things that the Democrats were trying to borrow money against the revenue derived from the bottle tax.



What's important here is that the elected leaders need to go to the opposition party "Wall Street" (Proven to be Dominated by Republicans) to pledge the receipts from the deposit tax on bottles, in order to borrow money.


The question then comes up,....just who is the soverign power here ?????


Why should the U.S. need to go to the Republican Party's representative`s to borrow money?  The process needs to be cleared and underwritten by Wall Street, otherwise it's no go.

It's no different when the U.S.Government needs to go to Wall Street's 16 Primary Dealers in order to borrow money, by having them sell U.S. Treasury Bonds, Notes or Bills. Where in the U.S. Constitution do they derive this power. What is the penalty for fraud of this magnititude upon the American citizens??


It all becomes apparent when you look at it this way.


Wed, 05/26/2010 - 04:15 | 373834 godfader
godfader's picture

Over 18 months ago, when Evans-Pritchard suggested the ECB should abandon their hawkish stance and move towards an inflationary stance in order to rescue "Club Med" he was laughed at, here too. Now people love him. He got it right and he continues to be right. The root of the European disease is the Bundesbank and their academic hawks. The Germans could actually do Club Med a favor and withdraw from the EUR altogether. That would send the EURUSD cross down to say 0.60/0.50 and the PIGS would have a fighting chance since their unit labor costs suddenly matches that of the Germans.

Wed, 05/26/2010 - 06:09 | 373856 vanorton
vanorton's picture

eurusd ~0.5 wow, I wonder how the the Schweizerische Nationalbank would react to that or BoC or BoJ or...whatever

Wed, 05/26/2010 - 06:35 | 373860 GoldBricker
GoldBricker's picture

I agree, albeit reluctantly (I live in the eurozone, but not in Germany, and do not want to see my purchasing power cut in half.) I have to respect Ambrose on this one. We shouldn't be here, but given that we are, this is the course of least resistance.

Having known Europeans from many different countries of the 'zone, I am more respectful of the periodic-devaluation model. Places like Scandinavia and the Netherlands can get along with a consensus model, where everyone compromises and more or less accepts the result.

The more southern countries, however, have a culture of paralyzed decision making, with many parties having a veto over change. In these countries what works politically is devaluation: everyone holding cash or local-currency denominated assets takes a haircut. No debates or street demonstrations. This is just the culture; if they wanted to change it, they would. Big people insulate themselves with foreign-currency accounts offshore. Little people don't save cash or buy local bonds, instead preferring houses, boats, antiques, etc.

So here we are in the eurozone, with (at least) two cultures having two different courses of least resistance. It's like having a pathological saver married to a pathological spendthrift: it's only a matter of time until something goes wrong.

Germany should leave, as should the other 'saver' countries, and the sooner the better.

Wed, 05/26/2010 - 04:49 | 373842 Portugal
Portugal's picture

Dear Evans Pritchard

This story originally appeared in the The New York Times  - "In Europe, Britain May Face Largest Debt Hurdle"

As governments from Greece to Portugal to Spain try to sell markets on their budget-cutting zeal, the country that may face the biggest hurdle is Britain.



Propelled by a robust economy that finally collapsed in 2008, Britain’s spending boom was the most expansive in Europe, producing a welter of shiny hospitals, school buildings and highways, along with a cadre of well-paid public sector officials.

Now the new government must unwind not so much the debt incurred from two years of economic stimulus efforts, but more broadly, the structural deficits built up over more than a decade of expanded health care, education and pension commitments.

Prime Minister David Cameron has talked boldly of closing a British budget deficit now equal to 11 percent of its gross domestic product. But he also has said that he will allow health spending to outpace inflation, continuing a trend started by the Labour government that has doubled the cost of the government’s elephantine National Health Service since 2000.

It is this apparent disconnect between the promises of politicians and the harsh demands of investors for immediate and across the board spending cuts that is at the root of the financial crisis in Europe today.

Even after the nearly $1 trillion rescue package arranged by European Union leaders to shore up the weaker euro zone members, financial markets have gyrated as fears build that debt-plagued nations lack the will to stand up to powerful unions and pare back once generous welfare programs.

“You need a martyr to cut this type of deficit,” said Andrew Lilico, chief economist at Policy Exchange, a right-leaning London research group, who has argued that quick and immediate spending cuts would actually hasten economic recovery rather than derail it.

“You need someone to say, ‘I will do the right thing and everyone will hate me.’ ”

According to a recent analysis by Citigroup, Britain’s structural deficit — meaning the part of the budget gap that will not close even when the economy improves — was 9.2 percent of G.D.P. last year, ranking third in the world behind rapidly aging Japan and almost bankrupt Greece.

As is the case with other countries in Europe, like Spain, Greece and Ireland, Britain has a deficit that has grown mostly because of a decade of rising government outlays that seemed reasonable at the time, but rested heavily on rising tax revenue that disappeared when the bubble burst.

In a recent report, the International Monetary Fund warned that the countries that would have to make the biggest sacrifices in spending cuts and tax increases to return to precrisis levels of indebtedness — Britain, France, Ireland, Spain and the United States — also face the biggest increase in spending demands. These are driven by the rising number of the elderly, thus making the cuts all the harder to impose.

“All developed economies now have in-built structural components in their government deficits due to having pension and health systems and aging populations,” said Edward Hugh, an independent economist based in Barcelona. “And these costs will go up by the year.”

The British chancellor of the Exchequer, George Osborne, who has long urged the Conservative Party to trim the deficit, said on Monday that he would push through £6 billion ($8.65 billion) in spending cuts.

Though decidedly modest when compared with a budget deficit estimated to be about £178 billion, the cuts represent an effort to convince skittish markets that Mr. Cameron’s team is committed to fiscal restraint.

The latest menu of restrictions, freezes and spending reversals also represents an effort to convince the public that Britain must be in tune with the budget-cutting in Greece, Portugal, Spain and other parts of Europe.

“The years of public sector plenty are over,” Mr. Osborne said. “The more decisively we act, the more quickly we can come through these tough times.”

Mr. Cameron has fulminated publicly about cutting public sector pay and decreed that members of Parliament themselves take a 5 percent pay cut.

But it remains unclear whether he can force significant savings in what has become in many respects a public sector aristocracy of elite civil servants, heads of national railroads and top officials of obscure agencies, like the National Policing Improvement Agency and the Horserace Betting Levy Board. The heads of those two agencies, for example, were paid salaries last year that exceed Mr. Cameron’s pay of £197,000 (about $284,000) — £211,831 and £220,665, respectively.

Among the highest paid have been administrators and doctors within the country’s government-financed National Health Service, which has become its own separate economy with its 1.7 million employees and £100 billion plus budget.

For example, David Taube, a doctor, administrator and medical director for five hospitals comprising the Imperial College Healthcare N.H.S. Trust, was paid £260,000 (about $375,000) at the exchange rates last year. That is also more than the prime minister received.

According to the TaxPayers’ Alliance, an advocacy group for spending cuts, the highest-paid 805 government employees in Britain received a 5.4 percent pay increase last year, with the average official taking in £209,224.

Whether it be the £1.3 million paid to the chief executive of the Royal Mail, the £267,000 for the head of information technology in the Department for Work and Pensions, or the £270,000 earned this year by the chief executive of the Guy’s and St. Thomas Hospitals in London, the galloping pay of public sector workers in Britain has become a major component of the structural deficit and shows little sign of letting up.

“We have been doing this for five years now, and the numbers just get bigger and bigger,” said John O’Connell, an analyst at the TaxPayers’ Alliance.

Starting in 2000, the Labour government made it a priority to improve the N.H.S.’s lackluster reputation and invested billions in bricks and mortar as well as the salaries of its growing ranks of doctors and administrators.

Health care spending in Britain soared to 9 percent of G.D.P. from 3 percent. The image of the service has been transformed from one that exemplified drab inefficiencies of the British state to what is now hailed as a world archetype, even by Conservative politicians like Mr. Cameron.

As for Dr. Taube, a spokeswoman for the Imperial College Healthcare N.H.S. Trust said that he was a leading renal clinician and that the bulk of his salary, £180,000 to £185,000, came from his clinical work. He was paid an additional £75,000 to £80,000 for his administrative duties.

Now the new government must wrestle with whether it can restrain such pay and spending and at what political cost.


Wed, 05/26/2010 - 06:45 | 373862 GoldBricker
GoldBricker's picture

I like Ambrose, but note the phrasing:

the promises of politicians and the harsh demands of investors for immediate and across the board spending cuts

"Harsh demands": investors don't demand anything. They just decide which bonds to buy. This phrasing casts the market as a monolithic, oppressive government (a metaphor most readers can understand).

If you don't like market signals, don't borrow in the markets. Sell your bonds through private placement or retail at banks (I'm old enough to remember the US savings bonds (5%!) sold by every bank). Better yet, fund your government with current receipts.

Wed, 05/26/2010 - 07:03 | 373873 unemployed
unemployed's picture

(UK) Health care spending in Britain soared to 9 percent of G.D.P. from 3 percent.

Hmm,  US health care spending is over 20 percent of G.D.P. ...

Wed, 05/26/2010 - 05:36 | 373850 Cheeky Bastard
Cheeky Bastard's picture

There you go 8:30 [GMT]:


Entity Name 5 Yr Mid Change (%) Change (bps) CPD (%) Denmark 46.36 +4.29 +1.91 3.96 Norway 22.29 +2.81 +0.61 1.93 Brazil 148.76 +1.13 +1.66 9.84 Peru 146.10 +0.36 +0.53 9.71 United States of America 41.40 +0.28 +0.12 3.51 Ukraine 683.79 +0.19 +1.31 37.52 Kazakhstan 236.04 +0.12 +0.29 15.24 United Mexican States 146.17 +0.04 +0.06 9.69



Name Spread/Price Unit Change(%) Markit iTraxx Europe 129 Spread 6.82% Markit iTraxx Europe Crossover 626 Spread 6.95% Markit iTraxx Europe HiVol 204 Spread 7.70% Markit iTraxx Europe Senior Financials 175 Spread 6.72% Markit iTraxx Europe Sub Financials 263 Spread




Volatility Indices Name Index Level
20 day Index Level
60 day Index Level
90 day Markit VolX Europe 168.27% 103.08% 87.69% Markit VolX Europe HiVol 160.37% 99.54% 87.35% Markit VolX Europe Crossover 113.40% 73.94% 64.78% Markit VolX.NA.IG 121.26% 76.06% 67.78% Markit VolX.NA.IG.HVOL 65.68% 46.65% 46.03% Markit VolX.NA.HY 94.62% 64.38% 59.13%

Not looking good. Swings are unprecedented.

No one, even in the derivatives market, knows what is ahead. Just look at the idiocy which is widening of Norways and Finlands spreads by more than 15%[intra-day yesterday]

Wed, 05/26/2010 - 05:42 | 373851 Hephasteus
Hephasteus's picture

Volatility is good. If your making dynomite.

Wed, 05/26/2010 - 07:54 | 373890 Cheeky Bastard
Cheeky Bastard's picture; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; font: normal normal normal 12px/normal Helvetica, Arial, sans-serif; line-height: 20px; font-weight: bold; color: #990000; text-align: left; background-position: 0px 17px; background-repeat: no-repeat no-repeat; border: 0px initial initial;">


Entity Name 5 Yr Mid Change From Close bps bps % Truvo Subsidiary Corp. 39017.39 +8977.37 +29.88 Unipol Gruppo Finanziario SpA 188.90 +24.58 +14.96 Atlas Copco AB 72.30 +7.19 +11.04 Alstom 187.58 +16.74 +9.80 Noble Group Limited 221.81 +19.35 +9.56



and this


Wed, 05/26/2010 - 10:52 | 374141 bhessel
bhessel's picture

Not that the Eurozone bailout rises beyond extend-and-pretend-as-usual, but it hardly seems shocking that there is a provision to enable the PIIGS to opt out of contributing to it if and when their borrowing costs to finance their contributions rise too high. Putatively, the purpose of the package is to reduce pressure on the PIIGS, not increase it. And given the amount of money they have to borrow, I doubt that this provision rises to the level of an “incentive” for them to engineer higher rates, just so they can opt out…it is more like a consolation prize.

It will be interesting to see what happens vîs a vîs this clause when Germany’s borrowing costs increase, however.

Also…does anyone know if this clause applies to the IMF?

Wed, 05/26/2010 - 21:13 | 375973 Bezukhov
Bezukhov's picture

 It appears that Greece has graduated from economic woes to plagues of biblical proportions:

Wed, 02/23/2011 - 01:24 | 987700 shawnlee
shawnlee's picture

With all of the juice that has flowed to the pink sheet from these pages I would have hoped for more than a rare passing of attribution. Wouldn't do to have the FT readership know how reliant upon free thinking bloggers it has become. Best to chafe 'em without rinse since ZH has far greater readership and more importantly, influence than Alphaville ever will. Rock 'em Fight Club !
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Wed, 04/20/2011 - 05:21 | 1187209 shawnlee
shawnlee's picture

The second clause is particularly troubling: since most European countries will soon see massive hits to their GDP, resulting in inevitable spikes in borrowing costs, this becomes yet another example of a game theory arrangement where the benefit to the first defector is far greater than any dowside, with the last to defect left holding the bag on what would basically become a bail out of all of Europe. Many have wondered how arguably intelligent people could come up with a rescue package of Greece in which Greece itself is supposed to contribute to its own bailout.mcp training \ ccie 350-001 \ ccna 640-802 \ mcitp 70-680 \ mcitp 70-640 \ ccnp 642-813 \ ccnp 642-902 \ icnd 640-822 \ mcitp 70-642 \ mcts 70-662 \ testkings \ security+ sy0-201

Mon, 04/25/2011 - 07:03 | 1202889 george22
george22's picture

we are like children in kindergarten. Why is the big bad wolf trying to eat little red riding hood? He is such a bad wolf. We're scarred. The children never analyze why the the wolf sounds like mr. janitor and the LRRH sounds like Mrs. Teacher. And/or why the wolf and lrrh need those strings to mowe are like children in kindergarten. Why is the big bad wolf trying to eat little red riding hood? He is such a bad wolf. We're scarred. The children never analyze why the the wolf sounds like mr. janitor and the LRRH sounds like Mrs. Teacher. And/or why the wolf and lrrh need those strings to moCatalytic Converter

Thu, 05/12/2011 - 02:35 | 1266760 designerhandbag...
designerhandbagsoutlet's picture

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