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Meet The Latest European Contagion Casualty: Hungary

Tyler Durden's picture




 

If you are wondering where the latest bout of Euro weakness is coming from, look no further than long-forgotten Eastern Europe. From Bloomberg: "Hungary’s forint weakened against the
euro, erasing earlier gains after Napi.hu reported deputy
chairman of the ruling Fidesz party, Lajos Kosa, said that the
country has a “slim chance to avoid the Greek situation” and
that the new government’s primary objective is to avoid a
sovereign default." It is rather amazing how long Eastern Europe has managed to squeek through the cracks. Will Hungary be the first rerouting of the PIIGS crisis into this latest European market. This means that another under the radar player, Austria, is about to get whacked big.

h/t David

 

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Thu, 06/03/2010 - 09:46 | 391523 DeweyLeon
DeweyLeon's picture

We are all Hungary now.

Thu, 06/03/2010 - 11:11 | 391791 BlackBeard
BlackBeard's picture

There are LOTS of very hot chicks there.  I'm all for a Forint devaluation.

Fri, 06/04/2010 - 07:57 | 394142 Eric Cartman
Eric Cartman's picture

I'm hungry for some Hungarian pussy! Those woman are hot!

Thu, 06/03/2010 - 09:51 | 391528 nonclaim
nonclaim's picture

After Hungary I expect Turkey joins the party soon so we update the acronym:

PIIGS -> PIG SHIT

Thu, 06/03/2010 - 09:52 | 391533 papaswamp
papaswamp's picture

SHIG PIS?

Thu, 06/03/2010 - 09:55 | 391543 Kataphraktos
Kataphraktos's picture

Extra laughs for including a Muslim country in a swine-related acronym.

Someone's about to get fatwa'd.

Thu, 06/03/2010 - 10:41 | 391674 nonclaim
nonclaim's picture

For being a black cat I was also slaughtered for witchcraft in the middle age. I'm used to.

Thu, 06/03/2010 - 10:11 | 391585 Rider
Rider's picture

Cant stop laughing.

Thu, 06/03/2010 - 09:50 | 391530 Reggie Middleton
Reggie Middleton's picture

When considering eastern Europe, remember several countries are already in a depression: The Depression is Already Here for Some Members of Europe, and It Just Might Be Contagious!

Austria, Belgium and Sweden, while apparently healthy from a cursory perspective, have between one quarter to one half of their GDPs exposed to central and eastern European countries facing a full blown Depression!

Click to Enlarge… 

 

Thu, 06/03/2010 - 09:58 | 391551 VK
VK's picture

Great stuff Reggie! I expect the DOW to rally 250 on the news. What a toxic web of smoke and mirrors. Lies and deceit compounds itself exponentially till one day this mess will blow up spectacularly on both sides of the Atlantic.

Thu, 06/03/2010 - 10:00 | 391554 Crab Cake
Crab Cake's picture

Awesome.  Thanks Reggie. Maps I understand.  Alot of what you post is over my head, but I diligently force myself to read your posts again and again.  Whenever I read your posts I have two google windows open at all times. :)  One of these days I'm not going to need those search windows. Thanks again. 

Thu, 06/03/2010 - 10:33 | 391531 velobabe
velobabe's picture

unfair

 

 

tyler, why did i have to solve a math problem when sent from my iphone?

damn junked and didn't say a thing.

ok content, sure of it now.

leggo of my ego†

 

Thu, 06/03/2010 - 10:36 | 391662 SWRichmond
SWRichmond's picture

maybe I like your eggo...

Thu, 06/03/2010 - 23:12 | 393611 Assetman
Assetman's picture

ROFL! :)

Thu, 06/03/2010 - 09:54 | 391538 stickyfingers
stickyfingers's picture

About eighteen months ago a friend of mine, who works at a bank in Brussels, mentioned that they were concerned about the heavy exposure the Austrian banks had to the problems in the Baltic states. I guess diversification works both ways.

Thu, 06/03/2010 - 09:54 | 391540 Kataphraktos
Kataphraktos's picture

The Unbearable Lightness Of Being Broke.

 

(yes, I know, different Eastern European shitshow)

Thu, 06/03/2010 - 10:00 | 391553 Cursive
Cursive's picture

LOL.  This thread is begging for Robo or Leo to post some really hot Lena Olin pics.

Thu, 06/03/2010 - 09:56 | 391547 Crab Cake
Crab Cake's picture

I have one word, and that word is....

Creditanstalt

Thu, 06/03/2010 - 10:15 | 391592 SWRichmond
SWRichmond's picture

We have so many opportunities for that now...I was criticised in another thread for saying the black swan could be seen "on approach", but really there's a whole flock of them circling now waiting for their turn to land.  They can plainly be seen by anyone who is willing to look up.

Thu, 06/03/2010 - 10:42 | 391678 Hephasteus
Hephasteus's picture

I replied to that but I didn't criticize it. When I said the black swan was shitting white buffalo's it meant that it was confirmed in another culture. White buffalo is native american for black swan event.

Thu, 06/03/2010 - 16:41 | 392676 SWRichmond
SWRichmond's picture

wasn't referring to you, I knew what you meant.

Thu, 06/03/2010 - 09:58 | 391550 williambanzai7
williambanzai7's picture

PIIGS SHIT U.S. (catchy, no?)

Thu, 06/03/2010 - 10:24 | 391622 Miss Expectations
Miss Expectations's picture

If you've ever been in a swine barn, you know how breath-stopping this situation is.

Visual to follow?

Thu, 06/03/2010 - 10:03 | 391563 BobPaulson
BobPaulson's picture

Ah yes, the Hungary question. Only a matter of time before this is posted, so I might as well do it:

www.youtube.com/watch?v=uEP7uti0PDw

Thu, 06/03/2010 - 10:10 | 391580 Double down
Double down's picture

Jesus!!!  How the f..., no, no, no, what the... no, no,no that does not do it, how in the name of... no, I can't, I can't say it right can't express it!!!

Why not just say those simple words I do not know!  Fuck, you get away with that!

Thu, 06/03/2010 - 10:11 | 391582 SWRichmond
SWRichmond's picture

The following is shamelessly ripped from NatLamp:

"I'm going to ask you a few questions.  Squeeze my right thigh for 'yes', and my left thigh for 'no'."

Thu, 06/03/2010 - 10:46 | 391677 Miss Expectations
Miss Expectations's picture

For those of you who might have missed Maria Bartiromo's stunning Jeopardy loss:

Part 1

http://www.youtube.com/watch?v=xmpYFiJcTVo&NR=1

Part 2

http://www.youtube.com/watch?v=XRE1Wi9nr1k

Thu, 06/03/2010 - 10:04 | 391565 bugs_
bugs_'s picture

Bring out yer blondes!

Thu, 06/03/2010 - 10:11 | 391583 THE DORK OF CORK
THE DORK OF CORK's picture

Remember Sep 2006.

Refreshingly Honest - he was just telling the truth about lying

At least its a start

 en.wikipedia.org/wiki/2006_protests_in_Hungary 

 

 

Thu, 06/03/2010 - 10:11 | 391587 mikjall
mikjall's picture

I recommend for those who are interested in keeping up with what's happening in Europe to follow Eurowatch: http://eurowatch.blogspot.com/  Lots of good linked and archived stuff.  It is particularly instructive to call up the Latvia Economy Watch, which is linked from the Eurowatch page. That gives you an idea how far people will go to let themselves be screwed by bankers and other lower life forms. Don't think that revolution is too far away.

Thu, 06/03/2010 - 10:14 | 391590 poorold
poorold's picture

fx manipulated to keep within a trading range.

 

regional central banks keep printing to keep everything afloat.

 

the world moves forward without a crash of the money systems.

 

then what happens?

 

government transfer payments ratchet up even higher.  more and more money is printed to pay the government's bills.

 

think status quo with everyone having the same income level or reduced to a living wage if you lose your private-sector job and move to the governmnet check.

 

people still buy the necessities and things continue to slow down in the economy.  no hunger or homelessness where there is none now--just lower standards of living.

 

no real inflation over what we have now because those producing food and other necessities continue producing.

just continued deflation of real assets as population increases force smaller peices of the pie to be shared.

more ipods anyone?

Thu, 06/03/2010 - 12:17 | 391994 Hephasteus
Hephasteus's picture

Sorry. Foxconn employees won't stop killing themselves. You're ipod is on back order.

Thu, 06/03/2010 - 10:35 | 391659 Anarchist
Anarchist's picture

This is proof of the too small to succeed theorem coming into play. The US and other Western countries have done everything possible to break up "enemy" countries into smaller and smaller pieces to either gain control of local resources or to diminish their power base. The arming and training of Jihadis by the US and shipping them into Serbia, Bosnia, Dhagistan, Chechnya ..etc, the funding of the color revolutions in Ukraine, Georgia ..etc has been a complete failure. These rump countries cannot generate the income required to keep their people fed and fully employed. You will see many of these countries cut deals with Russia and come back into the fold.

Just like the Brits were lied to by the Neocons into the Iraq and Afghan wars, the ex soviet republics will find they were conned. The Brits were promised a glorious return to power and wealth in the Mideast that they lost in the 60s. The Ukranians and Georgians were promised wealth and free money from pipeline access fees.  All have been lies. Another issue is that the Neocons did not count on was the huge population of ethnic Russians in all the ex soviet republics.  

Thu, 06/03/2010 - 12:28 | 392021 Canucklehead
Canucklehead's picture

In your world view, neocons are the smartest people on the planet and everyone else is dumber than a fence post.

Re-read what you wrote.  Can you spell "T-R-I-B-A-L-I-S-M"?  In order to counter democracy you accentuate tribalism.  Do you really think Russia has a role to play here?  Is Russian geo-political power ascending or desending?

The following are words you should contemplate: ... If you are not part of the solution you are part of the problem...

Thu, 06/03/2010 - 15:59 | 392579 Anarchist
Anarchist's picture

The Neocons are smart enough to make money no matter what the outcome of the wars they have started. Their long terms goals of complete Hegemony over the world will fail.

The goal of the West has never been true Democracy for Russia or any of the ex Soviet satellite states. The same can be said for Africa, South America, Asia.... The goals are to destroy any possible future threats to our Hegemony and loot their resources. We are fighting proxy wars all over the world. Most you will never see in the paper. 

Barack is a neocon in sheeps clothing. He is fully signed onto the full destruction of Russia as a major power and the containment of China. He believes that the growth of emerging countries like India, China, Brazil.. should be checked. Barack also fully believes that indigenous populations in Africa, South America .. should not be allowed to take back their countries from the European immigrants who now hold the reigns of power.

Russia's geopolitical power is rising again after a long and violent slide. Unfortunately for them unless they decide to accept a large influx of immigrants to stabilize their population and educate them to world class standards they will be irrelevant in less than 50 years. The eastern Russian empire will fall to China and it's south east empire will fall to the growing Islamic populations.

 

Thu, 06/03/2010 - 10:37 | 391664 chindit13
chindit13's picture

Austrian banks have the GDP equivalent of 75% in exposure to emerging markets, most of these in Eastern Europe.  I rather expect that the folks in Vienna would prefer Lajos Kosa choose his words more judiciously.

Thu, 06/03/2010 - 11:06 | 391778 ldotf
ldotf's picture

Romania might be next on the list, too

Fri, 06/04/2010 - 07:59 | 394148 Eric Cartman
Eric Cartman's picture

Do not associate the PIIGS with the Hungarian beauties. The hotness of the Hungarian woman alone will keep this country strong. I'd move there if I could learn to speak a new language but English is hard enough!

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