On The Trail Of Europe's "Mysterious" $2.6 Trillion In Toxic Debt

Tyler Durden's picture

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mikla's picture

My only question now is whether it will be:

<BOOM> .... (pause) .... <BOOM>



...from the EU to the US.

koaj's picture

depends on the speed of Ben's HP printer

Turd Ferguson's picture

For some unknown reason, I was reading these this afternoon. Kinda fun.


Mr Lennon Hendrix's picture

"How much can you know about yourself if you've never been in a fight?"

Gully Foyle's picture

Mr Lennon Hendrix 


A freaking lot if you are a Sociopath.

Mr Lennon Hendrix's picture

Far from it.  Mad, yes.  Selfish, no.

MsCreant's picture

GF meant that he is a sociopath, not you. It's not all about you ya know.

jeff montanye's picture

thank you.  clarifying.  funny and ironic.  possibly deeply silly as in too much of a good thing.

Mr Lennon Hendrix's picture

BS always loved hanging out at P.Diddy's Hampton Mansion....

"Diddy, you throw the best partys."  "I know I do BS, I be the best!"  "Sorry Diddy I couldn't hear you, it's kinda loud in here!"  "I know, I am the man!"  "Alright, hey I got a phone call, hold on."  BS got out of the indoor hot tub and walked outisde into the fresh night air after being handed a towel from a man servent.  "JC what is up?"  "What iz up?  Uhm, vhat doez dat meank?"  "Oh it's an expression that Diddy taught me.  Anyway, why have you rang."  Diddy joined BS outside; Diddy was afterall all about the Benjamins, and loved listening to conversations between money brokers.  "BS, ve in Europe AR in serious trauble.  Ve need your magik printingk press."  Diddy tapped him on the shoulder, "Tell him Central Banking is an art.  I loved that line!"  "Banking is an art, so this could be tricky....It'll cost ya."  "Vat do you vant?"  "Well you know Jean Claude, we are having our own problems here.  I don't know if we can do it."  "Please BS please!!!"  "Ok, but I want a fresh fleet of beamers and benzies asap."  Diddy tapped him again, "Tell him you want the Mona Lisa!"  "And I want the Mona Lisa."  "I can do the cars, but not the Mona Lisa."  "Deals off."  There was a pause and a sigh, "Okay, Okay, you can have the Mona Lisa.  But no jokingk around dis time, you open those svaps right avay!"  Diddy started dancing.  "Okay JC, you got it."  Diddy tapped him a third time, "Tell him to say it's all about the Benjamins baby."  "JC, a request from Diddy, say it's all about the Benjamins baby!"  "It's all about the Benjaminks baby!"  Diddy started dancing again.  "Ok, goodbye JC."  BS hung up, and walked back inside with Diddy.  "You know, I think I should put you in my next video."  "I would like that."  BS said with a cheeky grin.

DoChenRollingBearing's picture

And just for the record, Mr Lennon, which merry evening in June was this out there in The Hamptons?

I am not in that social circle, and enquiring minds want to know!

Mr Lennon Hendrix's picture

Last night!  Man you should have been there!  They had fire works, and strippers, and midgets, and stripper midgets!  Yeah, Diddy and BS are a little perverse, but they throw one HELL of a party!

MsCreant's picture

I knew a midget stripper. She made a lot of money. Table dances were a challenge...

jeff montanye's picture

and she thanks you for the boost.

etrader's picture

The Guardian

The head of the IMF (and Bilderberger), Dominique Strauss-Kahn, looks at the world and declares: "Crisis is an opportunity." He sees the precarious global economy and floats the idea for "a new global currency issued by a global central bank".


Gully Foyle's picture


It would solve a lot of problems for TPTB

Fred Hayek's picture

Don't you just love people wanting to fail upward?

We've destroyed all your economies because we have no principles, no integrity whatsoever.  Just give us more power, perhaps unchecked power and things will be fine.

Oh sure.  How soon do you need it?


etrader's picture

Rentendollar maybe an appropriate name....


Cognitive Dissonance's picture

Yeah, sure, no problem. The bazooka didn't work so let's man up with a cannon.

The really scary thing is that these insane people not only believe themselves but their pied piper music sounds increasing reasonable to those frightened average people who are beginning to understand that we can't kick the can down the road any longer.

"Please, just this one last time, make the button work when I push it and I promise I'll change my ways. I promise." The cries of a desperate junkie begging for a fix to forestall the pain of sobriety.

etrader's picture

This year's  2010 formal deliberations (  Daniel Estulin)

1. Will the Euro Survive?
2. Development in Europe: Europe's Exit Strategy...On Hold?
3. Do We Have Institutions to Deal With the World Economy?
4. Greece: Lessons and Forward-looking Strategies
5. NATO and Afghanistan: The Practical Agenda for the Alliance
6. Iran and Russia: Economic and Financial Threats to the Alliance
7. The Consequences of War Against Terrorism
8. The Influence of Domestic Issues on American Foreign Policy
9.The Outlook for Japan's Economy
10. The Future of the U.S. Dollar: Alternative Scenarios

Mr Lennon Hendrix's picture

First, Danny is awesome!  Disclaimer, I like Jones and Tucker for what it is worth.  However.......

#1 was actually how to cut up the bunt cake?

#2 was how bad did we fuck ourselves and everyone else?

Those Bildebergers are idiots and Tucker and Jones are giving them way too much credit.  It is very important to stand up to them, but the fact that Tucker says they have some magikal control over oil production is rediculous.  I think Jim chased the dragon a little too long.  Jones is getting taken on a "there is no peak oil" ride and they are going to throw him over a cliff. 

Oil shock coming in 3........2..........1..........

Problem Is's picture

Who Needs a Bennie Bernank-ster???
To buy $$$ trillions in worthless assets and hide them in the basement from the public you just screwed with a massive bankster bailout...

Come on You European Pussies...
Man up to the QE desk and get yourself a bald fraudster to devalue the Euro and inflate your way to success...

EscapeKey's picture

It worked so well with the Euro, so why not scale the experiment up?

carbonmutant's picture

I don't think the current regime in Iran is part of their plan...

jeff montanye's picture

and why not?  every desperate regime needs putative enemies to confuse, distract and impassion those easily confused, distracted and impassioned.  

pick a country.  isolate, subvert and impoverish it.  any attempts by the country to resist are proof of its intrinsic evil.  worked great with the ussr, china, cuba, vietnam, iraq and iran.  

some get careless, like when iraq invaded its former province of kuwait, forgetting only the u.s. gets to invade countries now with impunity (i would add israel but i don't want to be inflammatory and besides it's redundant).  

exception: china, when they buckled on letting foreign money at their resources they became our "friend" (and "funder").  the exception proves the rule.

moneymutt's picture

When any claims a big mystery with the facts staring them right in the face they are obviously trying to cover for something.

Thanks ZH for continually exposing who the govts work for, who they protect...the banks

quintago's picture

Well these types of stories translate into one thing only: uncertainty. And uncertainty tells us.....to short the market. It really is that easy folks

jeff montanye's picture

as (the great) john hussman recently wrote (paraphrasing):  looking at the recent gulf oil spill, the banking crisis/bailout and the european sovereign debt debacle, one realizes how poor most analysts are at analyzing worst case scenarios.  

i don't know about black swans but i believe there are enough black pelicans to go around.


Muir's picture

Not to worry G20 just came out with communique that fixes all.



The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability, differentiated for and tailored to national circumstances. Those countries with serious fiscal challenges need to accelerate the pace of consolidation. We welcome the recent announcements by some countries to reduce their deficits in 2010 and strengthen their fiscal frameworks and institutions. Within their capacity, countries will expand domestic sources of growth, while maintaining macroeconomic stability.

italics are mine

seventree's picture

The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability, differentiated for and tailored to national circumstances.

Is it just me, or is that sentence just a string of words with no decipherable meaning whatsoever?

confusion is mine

SecretGoldfish's picture

sounds a lot like one of my essay answers on the bar exam.  just toss a lot of crap in there and hope that it means something to someone.



RF's picture

I thought I was the only one who did that.


Mitchman's picture

I think theyr'e saying "There ain't gonna be no U.S. style QE II."

Dirtt's picture

To me this is a case of "doing the opposite of what is prudent" and then "saying what is prudent" and then hope that people will overlook 'what they are doing' and rather look at 'what they are saying' so that one day 'what they are doing' will somehow become prudent.

I hope that solves some confusion.

MsCreant's picture

I read, "We are flying by the seats of our pants and want to be free to pull any kind of stunt we need to, depending on what we can get people to believe. We know things will keep changing and look worse as we go along and we will have to pull more outrageous shit each step of the way. But luckily for us, you will become inured to it as each one comes so we will be able to sustain the bullshit for quite a bit longer as we go about looking like we are working on it when really, like the oil spill, there is nothing we can do. But we don't want you too pissed at us." 


Got it?

Mr Lennon Hendrix's picture

Clown magicians, I'll tell you, the lot of 'em.

walküre's picture

Actually it makes perfect sense if you read between the lines which is why the other guy used italics to emphasize the key phrases of the agenda coming up.

They could have used less words though.

Simply: Austerity, smaller budgets, more poverty.

End of the story.

Thank you for paying into a ponzi that was never designed to work. The cat is out of the bag and now we are cutting all programs and services that you thought you paid into over all those years.

Sorry, and fuck you.

Don't take anything for granted.

Free ride is over.

Money will be tight. Cash will be king because the kings are sitting in mountains of cash.

TBT or not TBT's picture

That must be right.   Wealthy people accumulate cash in a big room in their houses where they can swim in it.   They don't actually invest it in, you know, capital, which might be used to produce ever more efficiently.   Your kings just lock it up somewhere, mountains of it, in order to make everyone else that much poorer.

if's picture

That chart doesn't seem very helpful.  On the left side it notes the debt is held by foreign banks but the listed foreign banks on the right sum out to less than 50%.  So the majority of the debt was sold to entities outside of the EUR zone ?  And most of the debt is not sovereign so I would expect the owners to have bought CDS protection which would negate all but counter-party risk.

A more interesting question in the case of Spain might be how much and what kind of debt is held by Santander, the largest bank in the Eurozone, and BBVA.


jkruffin's picture

Obviously, there are huge US failures coming real soon as Europe implodes.  First clue, Obama on TV addressing jobs as data came in poor on Friday and he has to attempt to reassure people, and market futures crashed.  I mean really, they had to put up a makeshift podium in a car dealer lot quickly.  Bush was doing this all during the last collapse of the ponzi system.


Second clue,  Giethner was just on CNBC with one of the lying sluts they employ, claiming Europe problems would not affect the U.S.  Yet today, he says this:


In a letter to the rest of the G20, Tim Geithner, US Treasury secretary, argued: “Concerns about growth as Europe makes needed policy adjustments threaten to undercut the momentum of the recovery”.

Ministers from many countries stressed the need for structural reforms to boost the potential for private sector growth

In private, G20 officials said that the US had been the country most concerned about the new austerity drive and feared for the momentum for global growth. In the meetings it had been frank in the meeting in calling for China to revalue the renminbi and for Germany to boost domestic demand, officials said.

Mr Geithner, himself, was open about his fears in his letter to the G20. “Concerns about growth as Europe makes needed policy adjustments threaten to undercut the momentum of the recovery,” he wrote, adding that fiscal tightening won’t “succeed unless we are able to strengthen confidence in the global recovery.”

Now ask yourself, what do you believe?

Mitchman's picture

It is a very interesting split that we have on our hands between the US and the Europeans.  Apparently, the Europeans are determined to hang on to some form of fiscal sanity but it is the US that has the handle on key levers like the IMF.  I keep waiting for the Russkies and the Chinese to step into this muddle but we may be witnessing the beginning of some worldwide political, and therefore economic, realignment.

ratava's picture

euros are too xenophobic to deal with russia and china, they need to be starved into it

Mitchman's picture

Euros get most of their natural gas from their friends the Russians.

MsCreant's picture

I thought it was from their diet. 

TBT or not TBT's picture

Maybe Geitner knows the Euro zone will fly apart in the short run, so he and the administration are preparing the blame for the doubledip in the US.   It's Europe's fault!    See, this administration has awesome awesome intentions so any bad results cannot be their fault.   It is various saboteurs and outside forces screwing things up.

walküre's picture

Bullshit. The Chinese export more to Europe than anywhere else. Germans have been building Volkswagen in China before anyone else even looked at that market.

You're incorrect but it's typical when our media here is lopsided and doesn't report on anything that does not involve the US.

Here's a newsflash for you.

Europe has 550 million citizens with a broad middle class which has SAVINGS.

Compare that to the US where the middle class is hugely indebted, highly overleveraged.

Not to mention the mass poverty that is omnipresent around the US which simply doesn't exist in Europe.

I'm starting to see the reason for the Euro bashing and Europe bashing is part of the US imperialist propaganda.

According to the US world view, there can only be one super power.

Don't kid yourselves what is being played here. The internet is full of info and easy access to facts from European countries to create your own picture.

Europeans can afford to travel to the US to shop in NYC or spend Easter weekend in Florida. Europeans have tons of charter flights to several US destinations.

How many US citizens can afford to travel to Europe during their life time at least once?


TBT or not TBT's picture

"Europe has 550 million citizens with a broad middle class which has SAVINGS."

And which is OLD, and didn't save nearly ENOUGH, which is true mainly because they didn't have enough CHILDREN, to work to pay into the WELFARE STATE PONZI, and so they imported MUSLIMS, and failed to integrate them, and so they reproduce more than twice as fast, such that europe will no longer be "EUROPEAN" anymore within a generation, and will have another monster civil war before then, in all likelyhood.

But do go on with your americans-r-ignorant-hicks propaganda.

seventree's picture

Giethner was just on CNBC with one of the lying sluts they employ, claiming Europe problems would not affect the U.S.

A sentence in this form is always a lie: "<enter any problem here> will not affect <enter any situation here>."

cossack55's picture

Why you doggin' the sluts, man.  Most sluts I know at least have an ethical framework upon which to build if a little lacking on the morals side.  CNBC succubus described as sluts? Forsooth!!!


Iceland Rules

dumpster's picture

the debate of a European "game over" is not one of if but when. Unfortunately, the US is in far worse shape than all of Europe combined, but is much better equipped at dealing with


a population so illiterate in financial matters that it can keep pulling the wool over the eyes of the (LEO's  added) years after the EMU is finished.


 Furthermore, the longer investors stay glued to their television watching the storming of the Athens parliament first, and soon many more, the longer the US debt catastrophe can stay out of sight and out of mind.


Alas, once the European crisis is "dealth with" one way or another, the bored bond vigilantes will inevitably turn their eyes to the US, as Roubini recently predicted. It is all now just a matter of time, and how fast the kleptocracy can load up their vaults in various non-extradition countries with non-dilutable assets before it is all let loose.


does leo just post stuff .. and then runs and not read the varous information articles

leo what say you ,, are your reading this ?