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Hugh Hendry: The Greek "Bailout" Is Really A Bailout Of French Banks

Tyler Durden's picture


Yesterday we pointed out that France was a global top three derisker in sovereign CDS as traders have shifted their worries from the periphery to the core. We have long discussed that the reason for this is that France, not Germany, has the greatest exposure to Greece and the PIIGS. Below is an RT clip in which Hugh Hendry confirms just this: according to the Ecclectica head man, a mark to realistic market of Greek debt would wipe out E35 billion in French bank capital, "and it is questionable whether the French banking system would take such a hit." Hendry's solution, as has been the case from the solution, is for Greece to leave the euro, and points out that due to FX inflexibility, there will be no tourists in Greece this year as everything becomes painfully expensive, not in Drachmas but in Euros. We would add that the burning parliament is probably not that much of a tourist draw either. In typical fashion, Hugh dismembers Angela Merkel's hypocrisy: "When the truth becomes unpalatable, what is the truth. Angela Merkel, when we say she is being generous, there is nothing generous about spending taxpayers' money in another country, that is not generosity, that is merely trying to salvage a bankrupt set of political ideology. So to blame the messenger when it's the truth that hurts, I find that inexcusable." Just as Hugh's huge bet against the euro has proven to be a terrific success, we are confident that he will be correct about the end of the EMU quite soon as well. And as the moderator adds "Shame on you, Europe, for needing the IMF to bail you out. Europe is like an African nation." Amen.


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Thu, 05/06/2010 - 05:47 | 334024 boooyaaaah
boooyaaaah's picture

Capitalism is holding it's own in the battle against big government, finacial oligarchy, and socialism / communism.

It may disolve The EU, The USA in the process but truth is a huge stumbling block to all the great plans and planners.



Thu, 05/06/2010 - 05:47 | 334025 boooyaaaah
boooyaaaah's picture

Capitalism is holding it's own in the battle against big government, finacial oligarchy, and socialism / communism.

It may disolve The EU, The USA in the process but truth is a huge stumbling block to all the great plans and planners.



Thu, 05/06/2010 - 05:50 | 334031 aleph0
aleph0's picture

Hugh Hendry is right .
Bailouts for a completely overstretched fiat money system of compounded and "impossible to pay back" interest .... crazy. Admit "now" that the basis of the current banking system is just a ponzi scheme. Better late than later !



Thu, 05/06/2010 - 05:51 | 334034 Sudden Debt
Sudden Debt's picture

Looks like the Greek protesters will now soon feel a lot better. See! Everything is now solved.

Other news today?

Goldman Sachs? No, borring!

Oilspill...: No, borring!

Obama's mistress? Neah...

California almost real real broke? So passé



Nothing newsworthy ever happens these days he?

Thu, 05/06/2010 - 05:57 | 334039 Cognitive Dissonance
Cognitive Dissonance's picture

"And as the moderator adds "Shame on you, Europe, for needing the IMF to bail you out. Europe is like an African nation."

That's gotta be the ultimate insult to the European aristocracy, let alone for the intelligentsia and the political organ (pun intended) to be compared to a continent many European countries conquered centuries ago and still consider inferior and which has never been able to get its (financial) house in order. Ouch!

To call upon the IMF for help is to say that the proud Europeans have messed their bed, stink of shit and can't even wipe their ass. This is what you get when you play with that dirty little American whore, a severe case of sexually transmitted disease and a political organ that's rotten to the core, completely useless and about to fall off.

"I've fallen and I can't get up."

Thu, 05/06/2010 - 06:04 | 334047 AnAnonymous
AnAnonymous's picture

Another possible and more likely explanation is that the commentators regard this as a great insult, using their own context as the major reference, regardless of any consideration Europeans has toward this.

Insults are also considered a benefit to insultors. People can insult foreigners in their language, perfectly knowing that the foreigners do not understand the stuff.



Thu, 05/06/2010 - 06:19 | 334068 Renfield
Renfield's picture

LOL!!! We have THE best slapdown artists on this site...!

I GOTTA write that one down. So that I can sound clever next time some richly deserving candidate pisses me off.

Thu, 05/06/2010 - 06:35 | 334085 Hephasteus
Hephasteus's picture

I wouldn't sweat it. These people couldn't shame a drug dealing, child molesting, stripper with an IQ of 20.

Oh look impossiblenomics is impossible. I'm so ashamed.

Thu, 05/06/2010 - 06:56 | 334100 Debtless
Debtless's picture

If only Euroland was as fiscally prudent as we are here in the US - none of this would have ever happened.

Thu, 05/06/2010 - 07:59 | 334121 kaiten
kaiten's picture

Well, insulting Europe says more about insulter than about Europe, IMHO.

Thu, 05/06/2010 - 08:37 | 334185 Cognitive Dissonance
Cognitive Dissonance's picture

You are quite correct of course. But I spend some time each week reading European media and the general vibe I get is that they think this has been brought upon them by the Americans, the Fed and the complicit banksters, along with the EU's own corrupt politicians, CBs and banksters. In other words, in the tradition of the human race, they feel they have been victimized.

What's really interesting is that each country then has their own view about their particular victimization in the hands of everyone else. Each country has been most unjustly handled in relationship to the other countries in the EU. So we have layer upon layer of victims in Europe.

Of course, we do the same thing in America, with first regional victims, then state, then city or county. I'm not saying America is any better, just that at times the Europeans think their shit don't stink, or at least not as bad as their neighbors. Or if it does, it's because of the bad food they were fed by others. God forbid they admit they brought this upon themselves just as we did in America.

Thu, 05/06/2010 - 08:51 | 334217 sushi
sushi's picture

If they had seignorage rights to the world reserve currency would they have any problems?

Thu, 05/06/2010 - 08:57 | 334231 Hephasteus
Hephasteus's picture

It's a global ponzi scheme. This is how it works. This is how it ends. Banks are failing all over the world. Anyone who is talking about responsible spending and responsible debt has deluded themselves way the fuck past pluto on the hipocracy scale. Nobody asked me what economic system I would like to use when I got my first job. Nobody asked me my input on any of this. The people who are going to take the blame for this don't want it. You are going to have to shove it down thier throat

So really you are way to smart and tuned into be jumping on the retard bandwagon. If you want to involve youself for even one second in this european, american, african superiority stupidity do so in an intelligent manner.

Thu, 05/06/2010 - 09:20 | 334269 desgust
desgust's picture

Europeans have savings, do you ? We didn't buy McMansions on liar's loan, did you?

We are ignorant as MSM are even worst than yours so that people have no alternative when elections are held. Brain washing has a long tradition in Europe and stealing, yes there they had the best teachers from USA - your politicians and globalists. Merkel and Sarko are american puppets, look up their bio in voltairenet!

Thu, 05/06/2010 - 08:11 | 334154 G-R-U-N-T
G-R-U-N-T's picture

Five Stages of Collapse:

Also..."The Collapse of Complex Societies"...By Joseph Tainter...Informative, and well reasearched.

EU reaches parity with Greece:


Thu, 05/06/2010 - 09:15 | 334257 Cheeky Bastard
Cheeky Bastard's picture

CD, good man, do not equate all Europeans, cause we are not all the same. We were put in a synthetic behemoth ruled by invisible bureaucracy and greedy banks, but we are not the same. Not only are differences between nations beyond words, but every nation has its own history, forces which defined it and people like no other nation. To call all Europeans the same is an insult to European history and the people which inhabit many countries which form Europe. Millenia of micro tribulations, shocks and tremors managed to divide Europe culturally, genetically, intellectually and historically and no bureaucratic monster can erase that division in only 20 years. Europe was forcefully unified because the monstrosities of Hitler still hover in its collective memory, because wars of unification from the 19th century are still contemporary in their significance and the savagery that was brought upon by medieval micro nation states is not forgotten. We Europeans may be geographically united but we are a melting pot which is brewing for 7000 years now. 100 years is a long period in the USA, but in Europe it is not and we do not forget things easily. I'm sorry if this offends you or something, but this goes to all other-side-of-the-Atlantic-ZHers since i see that many commentators here think of us as we are all the same and countries are but provinces of the current Union. That is not only false, but it shows a great lack of knowledge and intelligence in general. Nation states were and are going to be here for a long long long time. This is a failure of made up geopolitical theory, synthetic currency and forced centralism/federalism that is EU and EMU. It is not by any mean a failure of Europe. Can the same be said for the USA.  

Thu, 05/06/2010 - 09:38 | 334306 Cognitive Dissonance
Cognitive Dissonance's picture

Cheeky, you do not offend me. And I don't see everyone over there as one big country. But the financial entity that is the EU tries to act that way. I spend time each week reading many European newspapers and I see the differences between each country and between America. I have commented often that the European culture and perspective is much more mature than Americans regarding leisure time, education, culture and history etc.

But there is also a bit of a split personality in many countries. They see themselves as victims, even when it is clear they have caused their own problems. See my post above for more on that.

"Not only are differences between nations beyond words, but every nation has its own history, forces which defined it and people like no other nation."

I have never understood why each country in the EU, by popular vote as all countries must do, would willingly give up it's sovereignty to the EU unless they felt it was to their financial advantage. I understand that many people feel they were hijacked but how hard did the average person in Europe think this through before voting to join the EU?

It's obvious the excuse being held today was that it sounded good at the time. But I remember those discussions back then and there was a lot of contrary views, with many talking about the bad side of the EU. Is it so hard to admit that many people felt a little greed when voting for entry into the EU, like they would be able to challenge America, China and Russia if they joined together.

Now that it has gone all wrong, just as it has in America, everyone is looking for scapegoats to blame. This is what angers me a bit. A constant theme here on ZH is that we ZHer's are above the fray because we didn't go with the flow or succumb to the insanity or whatever. That because we didn't agree to this, it's not our fault and thus we aren't responsible for cleaning this mess up. I see and hear this as well in Europe.

And this was the purpose of my clumsy comments, to say that we are all acting a little like children, pointing fingers and saying "I told you so" when in fact, this mess, even though we may be able to disown it in our mind, is still kicking me and everyone else in the ass.

Thu, 05/06/2010 - 10:04 | 334345 kaiten
kaiten's picture

"They see themselves as victims...."

"...give up it's sovereignty to the EU..."

"...Is it so hard to admit that many people felt a little greed when voting for entry into the EU, like they would be able to challenge America, China and Russia if they joined together...."

"Now that it has gone all wrong..."


You should better stay commenting economics, because you clearly have no idea about Europe, europeans or EU. No constructive discussion here, only bias.



Thu, 05/06/2010 - 10:16 | 334362 Cognitive Dissonance
Cognitive Dissonance's picture

"You should better stay commenting economics, because you clearly have no idea about Europe, europeans or EU. No constructive discussion here, only bias."

OK, then educate me. If I am wrong, and I most certainly am often wrong, tell me where. I am more than willing to modify or completely change my views based upon facts that I'm either unaware of or can't see because of my own bias.

But to dismiss me without discussion also shows your bias. Instead of being angry, since I'm open to being educated and willing to learn from you, why don't you try showing me the error of my ways.

Thu, 05/06/2010 - 10:41 | 334416 kaiten
kaiten's picture

I´m neither angry or biased(me think), I´m only tired of american simplistic view of Europe. It´s really difficult to have a constructive discussion when you see (american) poeple missing the basic knowledge of Europe.

For example.

"They see themselves as victims". That´s a statement and your belief, not a fact. Should Europeans really see themselves as victims then we(and most of world) still lives in medieval times. Europeans are evolutionists, and always been, if you understand.

"...give up it's sovereignty to the EU..."

What is EU? It´s not a person or some alien, EU is an association of countries. You give and get. Not a one-way street.


"...Is it so hard to admit that many people felt a little greed when voting for entry into the EU, like they would be able to challenge America, China and Russia if they joined together...."

Greed? America, China, Russia? Nothing of that. Reasons for creating EU were purely domestic(european).


"Now that it has gone all wrong..." All went wrong? If something goes wrong, fix it is the right option, not throw it away. We´re evolutionist, remember? See above. Only two countries talk about EMU break-up. US and UK. (What a coincidence). Eurozone talks about fixing it, not breaking. (it may still break-up, regardless, of course)


Thu, 05/06/2010 - 10:49 | 334441 Cognitive Dissonance
Cognitive Dissonance's picture

Thank you for replying back to me.

Then it sounds like what is being said in your media is contrary to what you are saying. I guess that isn't surprising because the average American doesn't beleive US media reflects the average American, which is one of the reasons US newspapers are dying.

So is this the case in the various European countries, that the media doesn't accurately reflect to view of the man on the street? Because honestly that is where I get my information. If this is the case, do you have alternative media outlets that might set me straight in my thinking?

Thanks again.


Thu, 05/06/2010 - 11:04 | 334478 kaiten
kaiten's picture

I dont know whether european media represent average europeans or not because I dont read it, but I guess they do not. Dont have any other(alternative) media links, dont read too much these days. Except ZeroHedge ;p. The best way to understand people of a land is to go and live there for some time, I´d say. 

Thu, 05/06/2010 - 11:46 | 334576 Cognitive Dissonance
Cognitive Dissonance's picture

Unfortunately I can not do so and I assume neither can you. Thus the utility of the comment section of ZH. :>)

I will be more careful in the future and not lump a group of different nations together nor make general assumptions like I did simply because they share a common currency and close economic ties.

And not trust the foreign media as much as I obviously did. I tried to cross reference to avoid the natural bias newspapers have to support the powers that be and I had thought that there was more media independence in Europe, but such doesn't seem to be the case.

Lesson learned.

Thu, 05/06/2010 - 12:20 | 334692 kaiten
kaiten's picture

Oh, what should I say.

"Lesson learned."

I think not. Sorry to sound offensive.

First you write:

"I will be more careful in the future and not lump a group of different nations together..."

and then:

"I had thought that there was more media independence in Europe"

So, we´re in square 1 again. Do people in US know that Europe is a continent not a country? Wondering ....


Thu, 05/06/2010 - 12:53 | 334788 TBT or not TBT
TBT or not TBT's picture

"Do people in US know that Europe is a continent not a country?"

If you look at the physical geography, Europe is just the left side of a true continent, properly defined, that you might call Eurasia.  So the question is what makes the left side of the Eurasian confident at the same different from the right side, and similar enough to itself, to get the special name "Europe".    Everybody knows it isn't quite a country, which would be giving it an absurd overdose of credit, but it does have some internal consistencies that have earned it a name, despites its not really being a "continent" in any true sense.

Thu, 05/06/2010 - 12:54 | 334792 TBT or not TBT
TBT or not TBT's picture

continent, not confident!  Damned brains!

Thu, 05/06/2010 - 13:14 | 334854 kaiten
kaiten's picture

"Everybody knows it isn't QUITE a country..."

That´s a PROGRESS I tell ya. Congratulations. With this pace, americans will even know that french is not the official language of Europe. In some 1000 years or so ...

Thu, 05/06/2010 - 13:36 | 334933 TBT or not TBT
TBT or not TBT's picture

Any thoughts then about what it is that the disparate elements of "Europe" have in common, that earn them the collective moniker "Europe", which we find quite handy in conversation?  

They ought to have a lot in common, because the members of Europe are big on their Europeanness, and all around the world, not just in the USA, people refer to the members of "Europe" as, doggonit there it is again!, European.  

All around the globe you find people who don't know much precisely what the differences are between the "European" countries.   Get over yourselves, if you possibly can.   On a map of the globe you have a lot big influential countries, and in "Europe" you have a confusing mishmash of tiny countries that most of the people in the world, and not only Americans, don't know that much about.

Thu, 05/06/2010 - 13:57 | 335000 kaiten
kaiten's picture

Oh, man. This is becoming funny. I only try to say that Europe is a CONTINENT, not a country. Period. Like Asia, or Africa, or Americas ... And what an amount of biased information I get back? Amazing. Tells lot about you. Please, go on, at least I learn something about the US.

Thu, 05/06/2010 - 10:01 | 334341 trav7777
trav7777's picture

I think I speak for ALL Americans in saying that we laugh at you because you think soccer is a great sport

Thu, 05/06/2010 - 10:14 | 334357 kaiten
kaiten's picture

And the whole world is laughing at you because you think that boring game you call football is a great sport. World Cup is the most watched event on planet. How many people outside US watch your final game? Exactly. No one. So you may laugh. At yourselves.

Thu, 05/06/2010 - 10:59 | 334466 TBT or not TBT
TBT or not TBT's picture

OK, now you are getting into taunting over what the french (/spit) call les gouts et les couleurs.   The EMU =is= falling apart, and it =was= constructed in such a way that this sort of crisis would destroy it, =despite= lots of smart economists pointing out the folly.   Currency zones and all of that.  

So what did they think they were getting out of it, each of these european states?    You'd hear arguments that they wanted it as an =external source or discipline on their own countries politicians=, sort of like, I dunno US politicians trying to vote laws against their own profligacy so they can't do it anymore.  The man in the street absolutely thought, and openly expressed the idea that this was critical to compete with the US and Japan and China and so on...countries which presumably had a lot influence and power thanks to their larger currency zones.

Thu, 05/06/2010 - 11:18 | 334488 kaiten
kaiten's picture

EMU was constructed in a way which was the only possible at the time. And the construction is still under way.

"The man in the street absolutely thought, and openly expressed the idea that this was critical to compete with the US and Japan and China and so on...countries which presumably had a lot influence and power thanks to their larger currency zones."
On outside yes, but the main reason for it was, is, political.

Thu, 05/06/2010 - 11:22 | 334504 TBT or not TBT
TBT or not TBT's picture

"On outside yes, but the main reason for it was, is, political."

To what political end???   Clarity, much?

Thu, 05/06/2010 - 11:26 | 334514 kaiten
kaiten's picture

Political(military) union.........Well, a kind of

Thu, 05/06/2010 - 11:59 | 334621 TBT or not TBT
TBT or not TBT's picture

A military alliance between such militarily weak and politically feckless countries having such wildly different aims doesn't make a stronger alliance, and it doesn't make a focused alliance.  Case in point:  Look a the Bosnia and Kosovo situation.  A genocide right in the heart of europe dragged on while the weak, feckless european countries squabbled.   US and UN intervention came later, no thanks to "Europe".

So that pretty much busts your theory.

The original reason for "Europe" and democratic socialism writ large was to constrain Germany and prevent wars(by taming nationalist impulses that come out of econonomic crises in Europe, ahem).   The resuly is a disarmed, socialist, broke, childless continent, but that hasn't made you more secure.   Au contraire, all you need for a cost efficient genocide is a bunch of machetes..easily constructed with a strip of metal and a file.

Thu, 05/06/2010 - 12:26 | 334709 kaiten
kaiten's picture

Thanks for your opinion about Europe, appreciate it. Sorry to not write my opinion about US. I dont have one. I dont really care about US too much, so ....

Thu, 05/06/2010 - 12:45 | 334767 TBT or not TBT
TBT or not TBT's picture

Lived and worked in France for 10 years and got my MBA and psychology degrees there.   A year working in Germany too.   I care about freedom for humans, and therefore I'm big on western civilisation in general, ergo I care about the ongoing re-implosion of Europe.   The US will be greatly affected, as usual.   Maybe Europe will be saved one more time by the US.   I doubt it, but it won't hurt you to wish for it, and not irritating us might actually help your case.

Thu, 05/06/2010 - 13:10 | 334841 kaiten
kaiten's picture

Why should US save Europe when Europe is such a worthless piece of shit? (as you described above)

Now, move your troops out. Quick, quick.... you still here?

Thu, 05/06/2010 - 13:44 | 334963 TBT or not TBT
TBT or not TBT's picture

Freedom, genius.   We are there exactly because Europe is not a worthless piece of shit, or wasn't a piece a shit.   It is still part of the free world, and freedom is something we like to back up, and expand.  Unfortunately we overdid our support for Europe during the cold war(see all the bases we still have there), which permitted them to lavish the resources not spent on defending themselves on buying votes and constructing cushy nanny states fully of whiny, dependent citizens.   The world is still a dangerous place, and getting more so.  The europeans don't seem to know this, but that have remarked that their own cities are getting more dangerous.  This is of course the fault of the USA, the IMF, globalisation, Joooos, or whatever other outside force. 

Thu, 05/06/2010 - 14:07 | 335028 kaiten
kaiten's picture

Mhmm, I didnt know it makes sense to spend time and effort on shit. Well, whatever, you must know better. I agree with you, though. You did overdo. Now you can leave. Will you ? ... or not. I know it´s more difficult to upkeep an empire without bases, but you´ll figure out something. An illegal war .... or something.........regime change, for example. CIA guys are pretty well qualified in this one.

Thu, 05/06/2010 - 10:48 | 334439 the phantom
the phantom's picture

No you don't.

Thu, 05/06/2010 - 11:36 | 334542 TBT or not TBT
TBT or not TBT's picture

Both soccer and american football are games, not sports, good for the physical and mental fitness of children and young adults.  The obvious success of the NFL and FIFRA in selling these games to consumers, buying huge chunks of mindshare and time, reflects badly on each and every human who gave over that time and mindshare.   I guess interest in watching those games is something programmed into the human genome, like our interest in the "chase scenes" film makers add.   It isn't just a fetish of theirs, it is entertainment for humans.  No one watching has an actual stake in either the chase scene or which of the teams of overgrown children running around on the field gets the most point.   We do have stakes in what governments do with the currencies they force us to use.

Thu, 05/06/2010 - 06:05 | 334049 Grand Supercycle
Grand Supercycle's picture


The proprietary indicators I use can identify trend changes before they occur and they have been warning of a USD rally since last year.

Just posted a new EURUSD chart: showing long term trendline with important support around 1.2770

Thu, 05/06/2010 - 06:25 | 334074 Crime of the Century
Crime of the Century's picture


Thu, 05/06/2010 - 06:05 | 334050 godfader
godfader's picture

Hendry has a "huge bet" against the EUR? Last thing I saw he was long different pegged pairs such as EUREEK etc., i.e. zero directional short exposure to the EUR.

Thu, 05/06/2010 - 08:51 | 334218 Cognitive Dissonance
Cognitive Dissonance's picture


I also saw your "SS Euro" Voyage of the Damned. Dude, there was clearly some juggling on your part to fit 5 "smoked" countries on a 4 smoke stack ship. And I love the woman at the top with the monocle.

Thu, 05/06/2010 - 06:19 | 334069 rawsienna
rawsienna's picture

Funny how just 6 months ago everybody was bullish on the Euro.  Does Buffet still own a huge long in the Euro? 

Thu, 05/06/2010 - 06:27 | 334078 Renfield
Renfield's picture

Dunno what he owns, but he definitely has a huge long for Goldman Suchs.

Thu, 05/06/2010 - 06:45 | 334094 THE DORK OF CORK
THE DORK OF CORK's picture

Aw shucks, the old man is long Betty Liu all the way.

Thu, 05/06/2010 - 07:12 | 334112 godfader
godfader's picture

I remember Jim Rogers was out on Bloomberg 2 months ago running his mouth how he bought EUR with both fists because it was oversold and people were too negative on it. He was certain Greece would get bailed out and then the EUR would rally. He's been very quiet lately.

Thu, 05/06/2010 - 08:35 | 334182 moneymutt
moneymutt's picture

yeah, the generals fight the last war...everyone apparently thought countries could be bailed out as easily as banks...I heard one guy bragging he was going heavy into Greek bonds for essentially the same reason Pimco went heavy into Fan/Fred just before US govt tookover them, there will be a bailout he thought...commercial debt was shifted to sovereign debt, but where do you shift sovereign debt? The taxpayers were the last chumps in on this ponzi scheme and now there are no more new suckers....we regular folks, taxpayers, will all go down and have to scrounge for scraps while the monied elite will find what little wealth they have left will do them just fine when starving people will work for nothing.... and those that make money on the collapse, they will not only do fine, they will have immense power...but their native lands will be wastelands...small concession for ruling the world, that the world be trashed.

Thu, 05/06/2010 - 09:29 | 334289 MsCreant
MsCreant's picture

And their oceans greased, scoured, and scorched.

Thu, 05/06/2010 - 06:44 | 334093 Modus
Modus's picture

although i disagree with the greek bailout as most readers do I have to say that european countries are one of the biggest contributers to the imf...

so no, it`s not all uncle sam`s money...

Thu, 05/06/2010 - 06:47 | 334095 A Man without Q...
A Man without Qualities's picture

Hendry makes a valid point about not taking a vacation in the Greek islands owing to the price.  I looked at this myself and couldn't believe how expensive the hotels were.  When I asked about discounts, it was as though I were insulting their mother or treating them like peasants.  However, is this really the fault of the Euro, or is it just the owners pushing prices up as much as they can?  

I hate to say this, but the problem with the Greeks is they are lazy and greedy, even the mythical hard working middle class, mainly sit around all day moaning.


Thu, 05/06/2010 - 08:37 | 334186 moneymutt
moneymutt's picture

I have a friend leaving today for two weeks in Greek Islands...just an older couple on their own...I told them to divert to Italy or Macedonia but they haven't....

Thu, 05/06/2010 - 06:54 | 334099 Rick64
Rick64's picture

Easy credit was and is the problem, and not just in Greece.

Thu, 05/06/2010 - 06:56 | 334101 MarketTruth
MarketTruth's picture

IMHO let them all fall. This is what happens when you make a bad investment/loan. But, well, we no longer live under a rule of law, the USA can not enact Capital Controls and your Money Market fund can be LOCKED so you can not access it.


Got physical gold/silver?

Thu, 05/06/2010 - 07:00 | 334102 desgust
desgust's picture

The European banksters have the best advocates even if they are douche bags!

Who the fuck wanted a political union???

Who wanted the euro in Europe? Yes, the poorer countries needed the money from Germany.

The fucking globalists!!!!

Thu, 05/06/2010 - 08:39 | 334189 moneymutt
moneymutt's picture

Germany is so nice, they never made any more off other countries, they are just generous...not

Thu, 05/06/2010 - 07:48 | 334128 primefool
primefool's picture

Watching the 2 Eoropean intellectuals I had to add to my Euro shorts. These guys really are very dull and have no clue. And they probably were very goo students in economics courses in college - and actually believed it too. hahahahahaha.

Thu, 05/06/2010 - 07:51 | 334132 primefool
primefool's picture

I enjoyed a particularly pleasant bely laugh when the German dude said there would'nt be any problems if the markets would just behave themselves. I wonder where he got his PhD?

Thu, 05/06/2010 - 07:52 | 334136 primefool
primefool's picture

Its a pity because he could be probably very useful designing automobile engines or something. This finance stuff is just .. just.. not scientific ya know!! hahahahaha.

Thu, 05/06/2010 - 08:13 | 334159 reload
reload's picture

Hendry is right - The French Banks are the major beneficiaries of the bail out. Hell, if the Greek people were seeing any benefit they would not be rioting and striking. The French populous would make the Greeks look tame though if their banks and savings were alowed to fail. The French after all invented the Guilotine and used it on their rulers without compunction in fairly recent history. The French governmaent has been wary of its population ever since. If the French populous decide the Euro has been bad for them - it is over. The Germans do not want it to be over, a weak euro suits them much better than a strong DMark. 

Thu, 05/06/2010 - 08:21 | 334163 AnAnonymous
AnAnonymous's picture

I'd like to see that.

One of my points is that a society hosting a minority they fouled in the past gained in stability. The majority is too scared that the minority could use the destabilization effort to settle the score to do anything.

My guess is that the French are to be much more focused on fighting the scam of a Europe falling to the hands of Muslims than being concerned by bank failing and Euro fall. Scare of payback is sure a fine tranquilizer.

They already voted out the Constitution to see it shove to them without consultation. Did they react?

Thu, 05/06/2010 - 08:53 | 334198 moneymutt
moneymutt's picture

I like you minority that end, Greece may end up being the country least beholden to ruling it makes sense they would default and find their way....

Thu, 05/06/2010 - 08:47 | 334208 Segestan
Segestan's picture

Once the mass unrest begins , and it will, France and Germany need to start Mass deportation. Forget PC BS the real world says it all was a silly and now dangerous ... gig.

Thu, 05/06/2010 - 08:25 | 334171 TwoJacks
TwoJacks's picture

stopped watching at 8:15 when guy said "people spending money in our shops, that's the answer."

show me any country throughout history that became prosperous via the reckless consumer.

you can't.

Thu, 05/06/2010 - 08:42 | 334195 MsCreant
MsCreant's picture

Greece = AIG zombie, kept on life support, to funnel funds to dying sovereigns. Greecing the gears means what it always meant, just change the letters a bit.

The populace may or may not be lazy and all the other stuff people like to say here. If you think they would have all voted in favor of having their politicians take Goldman Sach's advice on hiding debt so they could stay in the union and get more loans so that they could be led into this kind of a situation, well, I want to say something ugly about you but how about, "That is not realistic."

Subprime loans sold to an overpriced country, repackaged, bundled, and resold with derrivative spin. They really asked for that. 

Thu, 05/06/2010 - 08:53 | 334222 moneymutt
moneymutt's picture

agreed, I hate it when people say things like, "the Russians like strong leaders, they have the leadership they deserve blah blah" that token there was something drastically culturally different about North and South Koreans....I don't think so...there may be big cultural differences now, but its due to leadership and foreign interferences not because Koreans north of a military stalemate line liked strong leaders or those Koreans didn't like liberty as much as those to the south, who were so much better at establishing a democracy...and what of East and West Germans 40 years ago...yes, people of a country ultimately have power to change it if organized but the degree of difficulty of this task varies greatly, if they have a vicious ruling elite and outsiders supporting said rulers, say like most countries in Africa, even the great people movements done at great cost like say in Ghana, Nigeria, end up taken out by assassinations etc. The slave of US in early 1800s were no less character than Haitians but Haiti managed a slave revolution while one in US was nearly impossible do to geography etc.., took a civil war....

Thu, 05/06/2010 - 10:05 | 334346 trav7777
trav7777's picture

The civil war wasn't fought by slaves.

Thu, 05/06/2010 - 10:20 | 334367 MsCreant
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My understanding is that Lincoln freed the slaves so that they would fight for their "new country." The north was running out of soldiers and the black free jobless men turned the tide.

Thu, 05/06/2010 - 11:33 | 334532 Jim in MN
Jim in MN's picture

I think it was more a stroke of economic warfare, to encourage the labor force to desert and cause an economic collapse in the South.  This was after all the founding of 'total war' of population vs. population, not just military vs. military. 

I wonder when ordinary people across Europe, Japan and the US will find a common place to develop their strategies under this new total war of debt enslavement.  Maybe it doesn't matter--the response will be so decentralized anyway--but I don't like the blaming and smearing being perpetuated by the elites and their media lapdogs.

The ultimate political weapon would be a way to sort the bond market by the net worth of the owners, to enable progressive bond haircuts.  I will probably be rendered for just thinking of it.

Progressive bond haircuts.  With a good enough marketing strategy it could change the world.  Save granny's pension and send the sheikhs to Hell.

Peace n love....

Thu, 05/06/2010 - 08:42 | 334196 Invisible Hand
Invisible Hand's picture

At some point, the important questions is: Can Greece generate the cash flow to service it's debt internally (without further borrowing)?

That begs the second question:  Can Greece ever generate excess cash flow to pay down it's debt?

The answer to both questions is: NO!

What do politicians do when faced with this unpalatable truth?  Change the subject.

Notice the same questions apply to US.  However, having our own currency we can:

--print as much money as needed (Question #1 answered)

--inflate the debt away, instead of paying it off (Question #2 answered)

This works great for everyone except the citizens (especially the savers) of the US.

We need a grownup somewhere in the worldwide power structure.  No sign of that in the US (especially).  BANKERS RULE, CITIZENS DROOL!

Thu, 05/06/2010 - 09:59 | 334337 AnAnonymous
AnAnonymous's picture

As I think mass production existence is on the decline, number 2 does not have to be introduced through a monetary approach.

With mass production fading away, debt free countries or indebted countries will face the same situation.

The difference being that (deeply) indebted countries will likely be countries who heavily consumed before mass production peaked.

Thu, 05/06/2010 - 08:45 | 334205 Leo Kolivakis
Leo Kolivakis's picture

Great clip, thank you.

Thu, 05/06/2010 - 08:47 | 334212 Translational Lift
Translational Lift's picture

Greece should be made to default....No IMF bailouts...screw paying off France's loans.....France can make up their lost loans by providing more nuclear technology to Iran...

Thu, 05/06/2010 - 08:55 | 334227 moneymutt
moneymutt's picture

Made to default, Greece should want to default and have its own currency, jubilee...

Thu, 05/06/2010 - 09:16 | 334260 MsCreant
MsCreant's picture

I wonder how much of their needs they can take care of themselves? Food? Energy? If they import more than they export, (which they probably do) then will a new drachma work?

Thu, 05/06/2010 - 09:36 | 334300 Hephasteus
Hephasteus's picture

They are screwed cause of shipping but the country could surivive off tourism and fish EASY. WAY EASY.

Tourism doesn't work because they are screwed over by the relative economy principles but once you get them out of the euro tourism would become probalby about 500 percent more effective.

Thu, 05/06/2010 - 09:52 | 334330 AnAnonymous
AnAnonymous's picture

At present days, nobody wants to default.

Defaulting means being expelled from the consumption ring.

Being expelled from the consumption ring means less for you, more for the others.

Worse: when Greece recovers, they might discover they lost their position in the queue as there will be less to be consumed.


Now is not the time to pay debt. Because there is still much to consume.

Any country pausing to pay off its debt will sit on the side lines, watch others consuming.

When fresh and ready to join the party again, much less food, drink etc on the table.


Debt will be repaid. Not now.

Thu, 05/06/2010 - 10:08 | 334348 trav7777
trav7777's picture

Debt at this point cannot be repaid.

There isn't a sufficiently expansive future to pay it.

The system is grappling as we speak with the interest demands of the current debt load.  Every FRN in existence is borrowed; that's a lotta freakin interest.

Our creditmoney model is not a static system nor can it function in a climate of aggregate contraction.

Thu, 05/06/2010 - 09:08 | 334245 msjimmied
msjimmied's picture

The French have a way with numbers, let them figure it out.

Thu, 05/06/2010 - 10:46 | 334430 Double down
Double down's picture

Michael Ende wrote a "childrens book" called Momo.

Question to you all:  To what extent are the European bureaucrats represented by the Men in Grey from the Timesavings Bank?

Thu, 05/06/2010 - 11:36 | 334545 Jim in MN
Jim in MN's picture


New idea: progressive bond haircuts.  Either use the tax system to rebate/credit writedowns back to lower income folks, or force disclosure of the bondholders to enable the haircuts themselves to be applied to the rich/furriners.

Otherwise it's a long march to Hell for everyone.  Gotta wash that bad debt out.....or else.

Thu, 05/06/2010 - 11:56 | 334611 Kurtieboy
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Who the fock are these knobs???? Brutal

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