Second Straight Hungarian Bond Auction Failure As Citi's Willem Buiter Calls For €2 Trillion European Rescue Facility, Ridicules Stress Tests

Tyler Durden's picture

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SDRII's picture

Buiter - the same guy who used the FT pages to lament the barbarous relic and call for negative interest rates. Add him to the lose column

SWRichmond's picture

Euro Area banks therefore need additional capital; a lot of it.

Yes, they do, but you can't print capital.  Would that it were...

Sicilian Stallion's picture

And wouldn't EUR 2 trillion bankrupt the bailors???

btw/ Italy has a secret weapon called EUR/GLD.  With the highest amount of gold holdings per capita in the world, Italians get richer with each tick down.

Somewhere around EUR 5,000/GLD, Italy will be the richest country in the world.  I say that half-kidding and half-serious.

mephisto's picture

Unfortunately, if deflation is the policy in Europe only, not US, then EUR/USD will rally while Gold will only go up in USD as Bernanke destroys the USD.

You need Obama to cut the budget or Germany to leave the Eurozone, destroying EUR.

Chance... 1%.

mephisto's picture

Disagree. Buiter at least understands just how bad this situation is. He doesnt have a credible solution, but who does?

homersimpson's picture

Pimpin' just got cheaper in Eastern Europe.

Bam_Man's picture

Where exactly is the Unicorn that is going to sh*t these two trillion euros?

scofflaw's picture

The US taxpayer of course.  What else would you expect?

MrTrader's picture

Yawn. More of the world is going under chatter. Long EUR, long JPY. Short USD. Long ES of course. Short BP. Long GS. Short Gold. Long Copper. Long Oil. Thatßs qhat I call a portfolio. :=)

aaronb17's picture

So YOU'RE the bastard who's been on the winning side of all my trades!

Devore's picture

Just do the opposite MHFT says, and you'll be fine.

Ivanovich's picture

Yes, that's sure doing well today.

SDRII's picture

When Buiter was discussing portfolio risks at the banks he couldn't possibly be talking about the few billion STD just took on from CitiFinancial Auto's auto loan portfolio (Santander Consumer USA)?



London Dude Trader's picture

Denmark 0 - Japan 1. 

Erik Nielsen must be sweating....

Bonesetter Brown's picture

So if everything is so bad in Europe, why hasn't the ECB, BoE, or BoJ drawn on the Fed's FX swap line?

doublethink's picture


Country by country will now need to be bailed out.... You Betcha!


"Our national debt is our biggest national security threat," said Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, at a "Tribute to the Troops" breakfast on Thursday


Cyan Lite's picture

<sarcasm>So... iPhone 4 anyone? </sarcasm>

London Dude Trader's picture

The super-hyped iPhone 4 will kill AAPL.


It seems that people who pre-ordered the iPhone 4 in the US and received it one day early (yesterday) are unable to get any reception and make calls when holding the phone in their left hand: The same problem is now also being reported in the UK:


London Dude Trader's picture

Denmark 0 - Japan 2 

I hope Erik is watching the game in idyllic Chiswick 

Cow's picture

Quick!  All countries give ALL your money to bailout the failed EU and thus the failed EU banks, so that they might be able to lend the money back to you to grow the economy or else they will fail and "We" will lose a lot of money.



zero intelligence's picture

European governments can't write big checks for the next round of bank recaps. The simple solution is a debt/equity swap like John Hussman ( has been talking about for years. This is easy, doesn't cost the government a dime, and would result in huge capital bases for Europe's banks. Unfortunately, the eurocrats don't have the balls for it, so they will probably print the money instead.

Monday1929's picture

He doesn't believe a faked stress test by discredited criminals will boost confidence?

Where has he been?

And why would anyone care what Citi says? Didn't they die yet?

fearsomepirate's picture

The only reason the currency will die is because the people have been conditioned to believe that the single worst thing that could possibly happen to an economy is for the government to spend less money this year than it did last year.  They have been taught over years to believe that an economy can survive stocks hitting zero, defaults on corporate bonds, and individuals defaulting on private loans, but that if a government can't confiscate enough money to pay its loans, a plague of locusts will destroy the land, and no more joy will be seen in Zion, yea, unto a thousand generations.

So the people beg the state to please take away their freedom, anything, lest the apocalypse of, um, a state that is unable to squander even more of our money be visited upon us.  They embrace the central bank's announced plan to destroy their savings, happy to see their net worth go to zero to avert the catastrophe of an insufficiently rich political class.

If people ever wake up and realize that honest money is far more crucial to prosperity than a corrupt, obese and self-indulgent government, the game will be over.