This page has been archived and commenting is disabled.

The True Elephant In The Room Appears: Trillions In Commercial And Industrial Loans To Europe's Insolvent Countries

Tyler Durden's picture


With the market's attention over the past year exclusively focused on bank holdings of insolvent European sovereign debt, which as is now well known had been declining for months, many if not all forgot that banks also have credit exposure via far simpler conduits: retail and commercial debt. And as an analysis of the full disclosure in the EBA's second stress test exposes, banks are on the hook for literally trillions in various plain-vanilla commercial and retail loans to individuals and businesses. WSJ's David Enrich summarizes it best: "Friday's test results shed light on another potential problem for Europe's banks: huge piles of residential mortgages, small-business loans, corporate debt and commercial real-estate loans to institutions and individuals from ailing countries. As those economies struggle, the odds of rising defaults grow." Oops.

From the WSJ:

Banks tend to be holding far greater quantities of those commercial and retail loans than they are of sovereign debt, according to a Wall Street Journal analysis of disclosures accompanying the stress tests.

This year's stress tests represent the first time there has been a uniform way to measure this exposure. Until now, banks have disclosed their portfolios of loans to customers in troubled countries on a piecemeal basis. That made it virtually impossible to aggregate data across the industry or to compare different institutions.

"The country-by-country exposure [data] is better than any data we've seen before," said Alastair Ryan, a London-based banking analyst with UBS AG. "It's giving me more things to be fearful of," Mr. Ryan added, referring to the disclosures of some banks' large holdings of loans to customers in troubled countries.

After Spanish and Italian banks, France's banks appear to be the most exposed. As of Dec. 31, its four largest banks—BNP Paribas SA, Crédit Agricole SA, BPCE Group and Société Générale SA—were holding a total of nearly €300 billion, or about $425 billion, in loans and other debt issued to institutions and individuals in Portugal, Ireland, Italy, Greece and Spain, the countries that are among Europe's most troubled. That is largely a result of some of the French banks having big retail- and commercial-banking operations in Greece, Italy and Spain.

The French banks' portfolios of commercial and retail loans in those countries dwarf their holdings of sovereign debt.

For example, the four banks have a total of about €51 billion of loans to Spanish customers, according to the Journal's analysis.

Here is how this latest elephant looks like in chart format:

Germany, so far represented as a stalwart of investment prudence (despite its Landsbanken being decimated and on a constant lifeline by the CDO scammery of our own investment banks back in 2005-2006), is among the most impaired:

The dozen German banks that disclosed their stress-test results were exposed to €174 billion of commercial and retail loans to Greek, Irish, Italian, Portuguese and Spanish borrowers as of Dec. 31. They are holding an additional €70 billion of sovereign debt issued by those countries, according to SNL.

More than half of the German banks' loan exposures are concentrated in the country's two biggest lenders, Deutsche Bank AG and Commerzbank AG. Deutsche Bank alone is holding nearly €80 billion of loans in those countries, including €7.5 billion of residential mortgages in Spain. Deutsche, which passed the stress tests with a 6.5% capital ratio under the EBA's worst-case scenario, said Friday that it "feels well prepared" to hit its capital targets.

Naturally, it is no secret that the second Stress Test was nothing but another attempt at redirection:

While the tests did consider the impact of an economic downturn on banks' portfolios of loans and nonsovereign debt in Portugal, Ireland, Italy, Greece and Spain, many critics complained that the tests were overly benign. For example, the EBA's worst-case scenario for Portugal envisioned an 11.6% unemployment rate this year, rising to 12.9% in 2011. The unemployment rate there is currently 12.4%.

The stress-test figures actually understate some banks' holdings of loans in certain troubled countries. That is because the European Banking Authority required banks to disclose their loan holdings in countries only if they represent more than 5% of the bank's total loan exposures.

As a result, some banks opted not to disclose details of their loan portfolios.

Once again, just like in the case of Spain's LaMancha region lying outright about its deficit, "out of left field" discoveries such as this will keep reappearing until the full kit and caboodle of tens of trillions in impaired exposure finally hits the market. Of course, at that point nothing, not even the Fed's unlimited FX swap lines will do much if anything to help.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 07/17/2011 - 21:36 | 1465151 km4
km4's picture

And the Bernank says I've got your back because I can print. 

David Stockman: I think the Fed is injecting high grade monetary heroin into the financial system of the world, and one of these days it is going to kill the patient."


Sun, 07/17/2011 - 21:48 | 1465177 pesamystik
pesamystik's picture

On another note, you have to love how Goldman Sachs is now advertising on ZeroHedge.

Is it time to short ZeroHedge?

Sun, 07/17/2011 - 22:15 | 1465237 Atomizer
Atomizer's picture

Clear your computer cookies & cache moron. Crap cleaner program will do the job.


Sun, 07/17/2011 - 22:30 | 1465273 Dr. Richard Head
Dr. Richard Head's picture

When dealing with questions like that I have found that it is better to use analogies that relate to the level of the question asked.

For instance, I would thing this analogy would be appropriate. "I would recommend clearing out your browser as if you were about to hand over your computer to you wife."

Today's "Advice During Your Backswing Moment" brought to you by Dr. Richard Head. You didn't ask, but he will tell you anyway.

Mon, 07/18/2011 - 00:51 | 1465471 Ahmeexnal
Ahmeexnal's picture

I'd buy Ibiza for a dollar!!

Mon, 07/18/2011 - 02:27 | 1465549 doggings
doggings's picture

I dont think they'd take payment in butthole paper

Mon, 07/18/2011 - 08:06 | 1465818 j0nx
j0nx's picture

I'll do my part and take a hot Greek woman for $10. I hear they love it in the pooper. Hell, sign me up for two!

Mon, 07/18/2011 - 10:17 | 1466122 dearth vader
dearth vader's picture

Don't! Beware of the tail risk.

Mon, 07/18/2011 - 00:41 | 1465462 theopco
theopco's picture

I realize that this is far past the time when anyone is still reading this thread, but what exactly would that accomplish? If you don't want to see adds then block them. As to Gollum Sucks advertising on ZH, I'm pretty sure that's automated, and I'm even more sure that it has no bearing (unlike the MSM) on editorial decisions.

Oh, and it's pretty pathetic to call someone a moron when you yourself don't know what the fuck you're talking about.

Mon, 07/18/2011 - 03:52 | 1465610 ping
ping's picture

Yeah, that 'moron' comment was crass and ill-informed. Save the insults for people who say something worth insulting. 

Mon, 07/18/2011 - 03:54 | 1465613 ping
ping's picture

<Panics> ...but not me! I have insight in all things

Mon, 07/18/2011 - 00:52 | 1465473 Dre4dwolf
Dre4dwolf's picture

The Goldman adverts is probably due to re-targeting marketing tech, you probably visited a goldman sight/browsed them and now the internet thinks you want to buy junk from them.... so they spam you with adverts...

A lot of adverts / banners on the internet now spam you with products you browsed (they save a history of products and the browser looksup products and spams them to you)

Ie: if you looked at a Tv screen the other day on an electronics website and you visit youtube, on the side youtube will spam you with the exact Tv set you were looking at the other day.... its the latest and greatest in marketing.

Mon, 07/18/2011 - 01:07 | 1465488 Prometheus418
Prometheus418's picture

Just for shits and grins, I turned off adblock for a minute and hit reload a couple of times.

I was offered a new dodge, gold, silver, a cure for cancer, and a private jet.  Don't recall looking for any of those beyond the gold and silver, but I guess they assumed I have money I wanted to spend.

Seriously folks- why look at it?  It only takes about 30 seconds to download AdBlock, and it works well. 

Mon, 07/18/2011 - 01:20 | 1465502 MsCreant
MsCreant's picture

Clicking the ads brings income to the owners of the site. They pay their bills on this stuff. Added bonus-- if you hate the advertiser, click it a whole lot. You put them in the position of having to pay for those clicks and you didn't buy shit! 


Sun, 07/17/2011 - 21:54 | 1465188 TheFourthStooge-ing
TheFourthStooge-ing's picture

As long as the economies of every country in the world continue to expand in perpetuity, there's no problem.

What could possibly go wrong?


Sun, 07/17/2011 - 22:22 | 1465252 sitenine
sitenine's picture

Indeed.  Not like peak anything actually exists right?

Funny how we're convinced that we're immortal until we learn that we're not isn't it?

Mon, 07/18/2011 - 00:00 | 1465416 Oh regional Indian
Oh regional Indian's picture

Sitenine, I think it's Peak Death that will prove the peak theory of anything/everything.

Two Little 2 late though. Typical for the species.



Sun, 07/17/2011 - 22:24 | 1465258 dark pools of soros
Sun, 07/17/2011 - 23:53 | 1465409 Oh regional Indian
Oh regional Indian's picture

Then Contract, Contract, Contract....

Hump T Dump T!


Sun, 07/17/2011 - 21:55 | 1465191 baby_BLYTHE
baby_BLYTHE's picture

The is debt ceiling debate is a total joke and complete waste of time.
The path chosen in 2008 ensures the dollar's total collape within this decade.

Never, not one single time in world history, has printing money ever fixed a broken economy.

Our "central planners" have set everyone of us up for some extremely difficult times within the next couple of years. The transition of the United States dollar from reserve currency status will be an immense economic depression for several years as malinvestments are liquidated and global wage arbitrage Is reconciled

Sun, 07/17/2011 - 22:19 | 1465247 TheFourthStooge-ing
TheFourthStooge-ing's picture

Don't worry, they will fix everything. They always do.

I'll just watch some more television, and everything will be fine.


Sun, 07/17/2011 - 22:24 | 1465259 Vic Vinegar
Vic Vinegar's picture

Somebody needs to give you a thumbs-up for your user ID.  It's awesome.

All I care about now is how clubbing went for baby_Blythe last night.

Sun, 07/17/2011 - 22:30 | 1465276 TheFourthStooge-ing
TheFourthStooge-ing's picture

All I care about now is how clubbing went for baby_Blythe last night.

Seal clubbing?


Sun, 07/17/2011 - 22:25 | 1465261 Vic Vinegar
Vic Vinegar's picture

So since none of what you wrote here baby is news to us, let us know how was clubbing last night?  Did you have a good time?

Sun, 07/17/2011 - 23:05 | 1465336 baby_BLYTHE
baby_BLYTHE's picture

I don't see what the big deal is here, don't you go out with friends at least once a week?

As insane as the world has been the last several years, I force myself to interact socially with friends or other people, at the very least, once a week.

Sun, 07/17/2011 - 23:26 | 1465371 MsCreant
MsCreant's picture

Vic wants details, details.

Was there anyone special? 

Sun, 07/17/2011 - 23:33 | 1465380 Vic Vinegar
Vic Vinegar's picture


At this stage of the game, I would suggest that baby procreate with Max Keiser.  Clearly that guy has trouble with women and doing so would help there to be more good guys in the world.

However, since we know so much about baby I doubt that would fly.  Because that would make their offspring:

  • 25% Finnish
  • 12.5% Polish
  • 12.5% German
  • 50% "dirty heeb"

Sun, 07/17/2011 - 23:52 | 1465407 DoChenRollingBearing
DoChenRollingBearing's picture

- 1 and junked.

Mon, 07/18/2011 - 00:09 | 1465424 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah!  What?  Stacey Herbert is one of the sexiest women on TV.  Max is a lucky dude.

Mon, 07/18/2011 - 22:19 | 1468880 baby_BLYTHE
baby_BLYTHE's picture

Stacy is da bomb!

Mon, 07/18/2011 - 02:42 | 1465561 Sock Puppet
Sock Puppet's picture

Vic are you a chick with a dick?

Mon, 07/18/2011 - 00:05 | 1465420 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We're going clubbing?  I am going to need to shower; haven't done that today.

Mon, 07/18/2011 - 02:40 | 1465558 Sock Puppet
Sock Puppet's picture

You still around?

Mon, 07/18/2011 - 03:21 | 1465590 Things that go bump
Things that go bump's picture

Only babies can do that, dear, and the men are naturally intrigued.  The rest of us are too tired.  

Mon, 07/18/2011 - 01:16 | 1465498 Dugald
Dugald's picture

And that means?....The Wests wages structure equals china???

Sun, 07/17/2011 - 22:00 | 1465205 bigwavedave
bigwavedave's picture

high grade H is going to skyrocket in price once the USA starts pulling out of Afghanistan. So... that would be inflationary I guess.

Sun, 07/17/2011 - 22:11 | 1465228 TheFourthStooge-ing
TheFourthStooge-ing's picture

high grade H is going to skyrocket in price once the USA starts pulling out of Afghanistan.

Hedonics implies that shooting smack can be replaced with huffing gasoline. Let's hope that the price of gasoline doesn't skyrocket, because the hedonic substitution for gas huffing is entering politics.


Mon, 07/18/2011 - 01:49 | 1465531 Ponzi Unit
Ponzi Unit's picture


Sun, 07/17/2011 - 22:15 | 1465236 Juice Box
Juice Box's picture

That is why the NFL lockout will end soon - Americans need their opiates to get through this shitty year!

Mon, 07/18/2011 - 00:44 | 1465464 theopco
theopco's picture

wrong- deflationary. lol.

Sun, 07/17/2011 - 23:40 | 1465389 Bindar Dundat
Bindar Dundat's picture

Let's kill the dealers!

Sun, 07/17/2011 - 21:35 | 1465155 erg
erg's picture

Thanks always for the new posts Tyler. I hate to start a new thread OT

but I have a lingering question. I've seen the odd complaint about the captcha.

Namely if I recall, it doesn't accept negative numbers though the answer requires it.

Another from months ago is that you can bypass it by doing something I forget.

Regardless, I've yet to see a captcha at all. Anyone know why?

Sun, 07/17/2011 - 21:52 | 1465184 Hulk
Hulk's picture

This and how many licks it takes to get to the center of a tootsie roll pop, the world may never know...

Sun, 07/17/2011 - 21:57 | 1465201 erg
erg's picture

Thanks for the response Hulk.

Sun, 07/17/2011 - 22:08 | 1465224 Hulk
Hulk's picture

Its always been like that. Just click through the damn thing a second time and it works...

Sun, 07/17/2011 - 23:23 | 1465364 Atomizer
Atomizer's picture

In our world, 2+2= 4. 

Sun, 07/17/2011 - 21:44 | 1465173 erg
erg's picture

As a result, some banks opted not to disclose details of their loan portfolios.


It's like a shell game with an octopus on purple mike.

Sun, 07/17/2011 - 22:03 | 1465211 TheFourthStooge-ing
TheFourthStooge-ing's picture

It's like a shell game with an octopus on purple mike.

...along with some Goofy® blotter, jimsonweed, a few sherman sticks, and a barrel of swish.


Mon, 07/18/2011 - 01:11 | 1465489 Prometheus418
Prometheus418's picture

Quiet boys, you're making me hungry.

Sun, 07/17/2011 - 21:48 | 1465175 disabledvet
disabledvet's picture

My guess would be "buck breaking" at the MMF's. The Fed has been screwing cash since day one and it's time to Pay the Piper. The commercial paper market has been shit since the collapse--and Every Business Inc. has run like boyz to the bubble gum shop straight to the junk debt bazaar to lock in the yields. The actual amounts be lent out however appear to me to be shrinking dramatically so I agree: the banks are putting their protective armour on here. "All banks are not created equal" however. "Some banks are more equal than others" as we all now know. Speaking of Animal Farm how about something on the lighter side:

Sun, 07/17/2011 - 21:49 | 1465178 buzzsaw99
buzzsaw99's picture

Force austerity and the little guys and gals default big time.



Sun, 07/17/2011 - 21:49 | 1465179 Hulk
Hulk's picture

This "no counter party risk" thing is sounding better and better...God I love sleeping at night...

Sun, 07/17/2011 - 23:54 | 1465412 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1590 and peaceful sleep!

Sun, 07/17/2011 - 21:53 | 1465185 HungrySeagull
HungrySeagull's picture

United States 2008 Redux.

I suppose Old Europe learned absolutely NOTHING since we went (And still enduring) our own elephants.

Sun, 07/17/2011 - 21:54 | 1465187 erg
erg's picture

Junked for inquiring about captcha protocol. I am new admittedly. We've all been.

I thought it might me important but what in the hell do I know.

My first junk. Wish I could place it on my mantle.

Sun, 07/17/2011 - 22:07 | 1465220 cosmictrainwreck
cosmictrainwreck's picture

welcome to Fight Club.... we hit ya 'cause we luv ya

Sun, 07/17/2011 - 22:13 | 1465234 buzzsaw99
buzzsaw99's picture

first rule of fight club is we do not talk about our junk.

Sun, 07/17/2011 - 22:19 | 1465246 erg
erg's picture

I should know this. Listen, I'm gonna pull an Ed Norton and

drill myself. I had it coming. I actually look vaguely like him.

Especially when he has that haunted, febrile look on his face.

Sun, 07/17/2011 - 22:39 | 1465295 blindman
blindman's picture

don't flatter yourself, you look just like the unknown
"16 July 2011
Andrew Jackson On the Paper Money System and Its Consequences
“The last duty of a central banker is to tell the public the truth.”
Alan Blinder

"When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe, he has prepared himself for the commission of every other crime."
Thomas Paine

As the US Federal Reserve System approaches its 100th Anniversary in a few years, and as central banks and their political allies around the world promote the bailout and enrichment of the biggest banks and wealthiest individuals, to be paid for by the impoverishment and sacrifice of the people, it might be well to remember the lessons of history with regard to a fiat currency controlled by private corporations under the guise of an 'independent monetary authority.'

"The paper system being founded on public confidence and having of itself no intrinsic value, it is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain.

The corporations which create the paper money can not be relied upon to keep the circulating medium uniform in amount. In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business; and when these issues have been pushed on from day to day, until public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given, suddenly curtail their issues, and produce an unexpected and ruinous contraction of the circulating medium, which is felt by the whole community.

The banks by this means save themselves, and the mischievous consequences of their imprudence or cupidity are visited upon the public. Nor does the evil stop here. These ebbs and flows in the currency and these indiscreet extensions of credit naturally engender a spirit of speculation injurious to the habits and character of the people. We have already seen its effects in the wild spirit of speculation in the public lands and various kinds of stock which within the last year or two seized upon such a multitude of our citizens and threatened to pervade all classes of society and to withdraw their attention from the sober pursuits of honest industry.

It is not by encouraging this spirit that we shall best preserve public virtue and promote the true interests of our country; but if your currency continues as exclusively paper as it now is, it will foster this eager desire to amass wealth without labor; it will multiply the number of dependents on bank accommodations and bank favors; the temptation to obtain money at any sacrifice will become stronger and stronger, and inevitably lead to corruption, which will find its way into your public councils and destroy at no distant day the purity of your Government."

Andrew Jackson, Farewell Address, 1837"

Sun, 07/17/2011 - 22:53 | 1465322 A Lunatic
A Lunatic's picture

Well if the twenty dollar bill is good enough for Jackson then it's good enough for me dammit.

Mon, 07/18/2011 - 00:32 | 1465450 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Dead Presidents, and heads will roll.

Mon, 07/18/2011 - 00:35 | 1465454 Boxed Merlot
Boxed Merlot's picture

"The corporations which create the paper money can not be relied upon"...


This should be on a voice balloon coming from the mouth of the portrait on the 20 spot.  How about it Banzai?

Sun, 07/17/2011 - 22:49 | 1465310 MsCreant
Sun, 07/17/2011 - 22:59 | 1465331 blindman
blindman's picture

ed norton was the actor who played the narrator part
( tyler durden's ego ?) in the movie "fight club".
i think, while brad pitt was the actor who played
tyler durden, the alter ego. ? i get confused with
the whole schizophrenia thing.

Sun, 07/17/2011 - 23:03 | 1465337 MsCreant
MsCreant's picture

Oh how funny, I should have known that. Sacrilege uses a black and white Norton avatar I think. Thanks for setting me straight.

Sun, 07/17/2011 - 23:15 | 1465355 sellstop
sellstop's picture

They were both in that great trading movie. What was it called?



Mon, 07/18/2011 - 00:26 | 1465440 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Brad wasn't in Rounders.

Sun, 07/17/2011 - 23:09 | 1465345 Piranhanoia
Piranhanoia's picture

Ed Norton worked in a sewer in NY in the 50's and hung out with Ralph Cramden.

Sun, 07/17/2011 - 23:18 | 1465359 cosmictrainwreck
cosmictrainwreck's picture

ROFL... I was gonna correct the kid that it's Edward, but didn't have the heart

Sun, 07/17/2011 - 23:12 | 1465350 erg
erg's picture

You're hard not to notice MsCreant. I Like you. My avatar is delayed because I'm creating my own 3D model. Nothing too elaborate mind you. Just another meme, just another threnody.

Sun, 07/17/2011 - 23:21 | 1465363 TheFourthStooge-ing
TheFourthStooge-ing's picture

Or something ergish. ;-)

Something ergish: Claviceps purpurea

Sun, 07/17/2011 - 23:31 | 1465375 oldman
oldman's picture


As another old bag-----I resent that!

Mon, 07/18/2011 - 00:25 | 1465438 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We should do this again sometime.

That's funny.  People tell me I look like Edward Norton, too.

Mon, 07/18/2011 - 11:52 | 1466576 hangemhigh
hangemhigh's picture
TO: buzzsaw99
on Sun, 07/17/2011 - 22:13


"first rule of fight club is we do not talk about our junk."

no, we do not talk about our junk, we tweet it instead.................

Sun, 07/17/2011 - 22:30 | 1465275 GoldmanSux
GoldmanSux's picture

I find it clears itself up if I wait 72 hours to post.

Mon, 07/18/2011 - 01:52 | 1465534 Ponzi Unit
Ponzi Unit's picture


Tue, 07/19/2011 - 00:29 | 1469179 HungrySeagull
HungrySeagull's picture

I added a welcome Junk.

I see you are still here after a whole bunch of hits.

Enjoy your stay!

Sun, 07/17/2011 - 21:55 | 1465193 Poor Grogman
Poor Grogman's picture

bigga badda boom.

Sun, 07/17/2011 - 21:56 | 1465195 lizzy36
lizzy36's picture

Fear not, Larry Summers has a new interview with Reuters where he lays out a comprehensive (and by comprehensive I mean the taxpayer gets bent over, again) solution to the "Euro Crisis":

Summers argued that if there is any chance for success in stemming the financial crisis, policymakers must first recognize that maintaining systemic confidence is key.


"There must be a clear and unambiguous commitment that whatever else happens, the failure of major financial institutions in any country will not be permitted," Summers wrote.

I guess this week when Barney Frank said TBTF was dead he never checked with the smartest man in any room.

So it is not surprising that when Rep. Barney Frank (D-Mass.), one of the law’s chief architects, spoke this week in front of the National Press Club to reflect on its progress one year later, he insisted several times that “too big to fail” was over:

“We are the first nation to say, ‘Hey, if you get in trouble, you're dead.’ And we will then worry about your mess, and we may have to minimize the mess you left behind. But if we — if that costs us any money — it's coming from your colleagues; it's not coming out of the taxpayer. And we think that model is an attractive one.”

So to sum up;almost 3 years after Lehman NOTHING HAS CHANGED. The same play book is being used. Regardless of political party, state or country, ALL policy, ALL is subverted to the stabilization of the banks.


Sun, 07/17/2011 - 22:02 | 1465208 snowball777
snowball777's picture

Won't someone just harpoon that stupid twit already?

Even Greenpeace won't get in the way.

Sun, 07/17/2011 - 22:06 | 1465216 lizzy36
lizzy36's picture

Correction..."the stupid twits".

2 whales/1 harpoon.

The world would be a better place ;)


Sun, 07/17/2011 - 22:55 | 1465325 MsCreant
MsCreant's picture

Will they be posting the video on Two Girls One Cup?

Sun, 07/17/2011 - 23:37 | 1465385 lizzy36
lizzy36's picture

LMAO. Because it's true

Thanks, old friend ;)

Mon, 07/18/2011 - 13:05 | 1466888 MsCreant
MsCreant's picture


Sun, 07/17/2011 - 22:47 | 1465306 G-R-U-N-T
G-R-U-N-T's picture

Yeah right, Frank and Summers real pillars in the American financial community as they vaporize Americans dream one policy at a time.


Sun, 07/17/2011 - 22:57 | 1465330 Temporalist
Temporalist's picture

They are trotting Summers all over the place lately.  He's been talking about spending more U.S. money, from unknow sources apparently" on "infrastucture" to get jobs going.  He and Krugman must have just finished a game of "Find the FRN" and he was all giddy.


Mon, 07/18/2011 - 00:30 | 1465446 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fwank says this after he and his brethren gave the Majors trillions of taxpayer dollars.  Good job, Fwanky.

Sun, 07/17/2011 - 21:57 | 1465200 buzzsaw99
Sun, 07/17/2011 - 22:02 | 1465209 wsmith
wsmith's picture

Yeah, but so fucking what?

The Germans and French are gonna pay the money.  The Euro is a sweetheart deal for them.

Let them try selling their junk with the Kraut-mark and the Frog-franc.

These bankers have a lot of power.  And they can keep the balls in the air for many many years.

When it finally starts to crash, they'll just take us to war.

And we'll all march off draped in our flags and whistling patriotic songs.

The more things change, the more they stay the same.

Anyway, so long.

And God bless all you Marxist cocksuckers.

Sun, 07/17/2011 - 22:26 | 1465263 TheFourthStooge-ing
TheFourthStooge-ing's picture

Let them try selling their junk with the Kraut-mark and the Frog-franc

...and the Yankee-wipe printed by the Bernank.


Sun, 07/17/2011 - 22:02 | 1465210 QQQBall
QQQBall's picture

PIIGS owe/own each others debt totally like $4T... that ends badly

Sun, 07/17/2011 - 22:30 | 1465278 wsmith
wsmith's picture

But core Europe is doing OK.

Look at Germany.  They haven't had this type of boom since...Hitler.

Greece is good news for the American and core Europe financial gangsters.

You bankrupt them and buy up all their shit for pennies on the dollar.

Welcome to the global plantation.

Instead of being ruled by kings, we are now under the thumbs of investment bankers and hedge-fund cocksuckers.

Anyway, I'm off to play with myself.

God bless.

Sun, 07/17/2011 - 22:09 | 1465225 HITMAN56
HITMAN56's picture

Anyone care to comment on how all this will effect EIB bonds?  My guess is probably not so good.

Sun, 07/17/2011 - 22:09 | 1465226 Atomizer
Atomizer's picture

Awaiting GEAB next installment. Looks like the young don't like the current ponzi system. LOL.

Obama's universal healthcare death panels will wipe away any youth global debt obilgation concerns.


Sun, 07/17/2011 - 22:11 | 1465229 Arkadaba
Arkadaba's picture

What happened???

Loved this when I was a kid - US was good.

Sun, 07/17/2011 - 22:17 | 1465241 vamoose1
vamoose1's picture

This thing comes Down.

    We love to push it out,  later,  later,  someone is going to put cement in that can in the road and you break  your foot.

    Confiscate gold?  oh  grrrr, dont come anywhere near my house ,  i shoot. And if i get killed i am old.

    No,  the contemporary equivalent of gold or silver confiscation  would be an information shutdown.

    I would shut down Zero Hedge, or more likely the entire internet.

    The Internet is to Governments today as gold was in  1933,  as in   absolutely menacingly dangerous. The bullshit gets called within  minutes.

    At some risk,  i would put forward that this very site is the most dangerous and subversive site in the world.


     I predicted a DORM RAID on gold 2 hours ago,  well,  go figure.

    Why is Armageddon always tomorrow? How about tonite? 

Sun, 07/17/2011 - 22:26 | 1465265 sitenine
sitenine's picture

i would put forward that this very site is the most dangerous and subversive site in the world.

You don't get out much do you?

Sun, 07/17/2011 - 22:28 | 1465269 HungrySeagull
HungrySeagull's picture

Don't worry. The Internet was designed to survive a full on nuclear exchange with the USSR provided you had some kind of power left over and could connect to other computers over the old style modems. There will still be plenty of connectivity.

Today's Wireless internet into your hand over a Droid phone or whatever off wireless is yesterday's cold war science fiction.

This site has been rather consistent when you strip the bullshit out.

More than once someone posts something going in right that moment and it comes out across the Media the next day or weeks after the fact. A million or so ZH'ers make quite an army. If only for information.

Sun, 07/17/2011 - 22:38 | 1465292 CrashisOptimistic
CrashisOptimistic's picture

What the internet does not survive is starving maintenance workers who do not go to work because they are searching for food.

Oh, and the mechanism for gold worthlessness has nothing to do with confiscation.  The mechanism is to outlaw trafficking.  Like drugs.  Possession of small amounts is not a crime.  Only trafficking is a crime.

The day that happens you have no more quotes.  Anyone who contacts you to buy or sell might be a narc, and you would not know what price to use even if you believed him.  And note that is trafficking in barter form, too.

The gold and silver guys are on borrowed time.

Sun, 07/17/2011 - 23:26 | 1465370 Clay Hill
Clay Hill's picture

I generally like the tilt o' yer cap mate, I'm in the kollapse klub myself.

But now you're just being full of it. 


"Trafficing" for fun and profit happens to be something I know a thing or three about.

Be sure an' lemme know when the last tunnel under the border gets backfilled, and the last charter boat gets lashed to the pier, O.K.?

Mon, 07/18/2011 - 00:50 | 1465469 oldman
oldman's picture

no one ever sells gold

why would they?

That's why we have silver

Mon, 07/18/2011 - 07:12 | 1465725 ViewfromUnderth...
ViewfromUndertheBridge's picture

Outlaw trafficking..."Like drugs"...and that worked so well.

You are delusional.

Sun, 07/17/2011 - 22:31 | 1465281 treemagnet
treemagnet's picture

"Net Neutrality" is the fancy phrase the FCC  is using to do just that.

Sun, 07/17/2011 - 22:20 | 1465249 hettygreen
hettygreen's picture

Hmmm, swish.

I remember when you could buy a barrel from Hiram Walker (everyone pretended you were buying it to use as a planter) for next to nothing. Throw in some decent water and rotate on a regular basis for a couple of months and presto, water with the kick of white lightning. Those were the fucking days.

Sun, 07/17/2011 - 22:19 | 1465250 PulauHantu29
PulauHantu29's picture

Come Alive! It's the Default Generation.

Sun, 07/17/2011 - 22:46 | 1465304 Caviar Emptor
Caviar Emptor's picture

Yup. If you're coming of age in this decade (8-20), all you learn about institutions is "Debt this" and "Bailout that". It's a debt-fest of broken liars. 

Sun, 07/17/2011 - 22:28 | 1465253 treemagnet
treemagnet's picture

C'mon - who amongst us doesn't feel that .5% buffer on Portugal's unemployment is totally crazy....seriously, you can't honestly believe 57 more Portugalians(?) are gonna lose their job - no way....can't be.  

<sarc on>

Sun, 07/17/2011 - 22:43 | 1465300 Caviar Emptor
Caviar Emptor's picture

At this point, we need to divide up world finances to create a good hemisphere and a bad hemisphere. 

Mon, 07/18/2011 - 05:22 | 1465640 StychoKiller
StychoKiller's picture

How about a good planet and a bad planet?  I nominate Jupiter for the bad planet, because we need way more space for all the bad junk...

Mon, 07/18/2011 - 07:17 | 1465735 ViewfromUnderth...
ViewfromUndertheBridge's picture


Sun, 07/17/2011 - 22:44 | 1465302 buzlightening
buzlightening's picture

Europe's banks: huge piles of residential mortgages, small-business loans, corporate debt and commercial real-estate loans to institutions and individuals from ailing countries. As those economies struggle, the odds of rising defaults grow."


Default? Just print more money and loan massive more debt sums to the people about to default.  We can continue world wide, to spend our way to prosperity by being buried deeper in debt.  I know if I'm drowning I breath much easier the deeper I go.  What kind'uv world wide madness is this when there's no method but eventual monetary destruction.  OOPs.  Madness leads to destruction.  Who's at the helm of this burning madness to ashes; certain monetary world wide financial destruction.  We need more mad people to keep this inferno from melting down. I'm going to vote for change.  ROTFL  More madness next election.  Not one has a solution because the USDinker dollar is dead...It will burn to ashes.  Just keep preparing your economic self sufficiency lifeboat. Once these numb nuts in power, have the nation bulldozed over the economic precipice.   Those who trusted goonerment to save them economically, will pull the goons rip cord, of the financial parachutes packed by madness and  get nothing but  baloney!!  Will be plenty of massive road pizza, when AmeriCON'd citizens, fall to their deaths financially.              

Sun, 07/17/2011 - 22:56 | 1465305 midnight
midnight's picture

More distraction garbage, this time from WSJ. ALL of U.S. is broke, at federal and states level. In Europe you have 1 SERIOUS problem and 2 moderate which don't amount a large U.S. state. The rest are amplified by the media in the midst of currency warfare.


44 million needing food stamps.  Ultra-expensive health care. Trillions wasted in military. Politicians corrupt to the core. Millions of outsourced jobs. Racial tensions. Massive meds and drug addiction.


Keep living in denial.

Sun, 07/17/2011 - 22:48 | 1465309 wsmith
wsmith's picture

What's on store for today...

First, I'm going to take a long satisfying dump while reading the paper.

I never wash my hands after doing my business.  My filth just makes the food taste better.

Then I'll drink coffee and smoke cigarettes.

The wife took my oldest son to see Transformers.

I might get drunk on Soju.  I can get totally shitfaced for less than two dollars American.

Tonight, I'll watch CNBC.  I love that show.

I plan on calling Steve Lisman a cunt several times.

Then I'll go to bed.

I enjoy my life--even though I'm a fucking serf.

Anyway, God bless. 

Sun, 07/17/2011 - 23:23 | 1465365 gall batter
gall batter's picture

your exactitude is appealing.

Sun, 07/17/2011 - 22:49 | 1465311 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

OT: Wrong Side Up

ONe of the funniest recent 2 minute youtube vids out there...

Sun, 07/17/2011 - 22:53 | 1465320 Caviar Emptor
Caviar Emptor's picture

At this point , we need a casino for high-debt holders to roll double or nothing against the Fed and other central banks. Billion-dollar minimum bet, no limit, table stakes only. Ben makes a fine croupier. 

Sun, 07/17/2011 - 23:00 | 1465333 A Lunatic
A Lunatic's picture

Once everyone is equally fucked then no one is. Once we can get past wanting to be the least fucked and stop trying to out-fuck the other fuckers then maybe we can have some fucking progress?

Sun, 07/17/2011 - 23:07 | 1465341 cosmictrainwreck
cosmictrainwreck's picture

now there's an interesting "paradigm shift" [gag]... take it to the UN...IMF? World Bank? How 'bout the Bernank? Suggest you do not edit....

Sun, 07/17/2011 - 23:11 | 1465347 Caviar Emptor
Caviar Emptor's picture

It's the philosophy of the decade: "if we all do it, then we can't get into trouble". Just like getting high in school

Sun, 07/17/2011 - 23:33 | 1465381 midnight
midnight's picture

This article is itself an attempt at redirection

Sun, 07/17/2011 - 23:34 | 1465382 chump666
chump666's picture

Germany the if German taxpayers will be happy once China implodes (counting down now).  Europe has become 'old' Europe again, they should learn from their own history.  Asset supporting central planning cartels have always collapsed.

Sun, 07/17/2011 - 23:35 | 1465384 chump666
chump666's picture

Then there is the UK...perpetually stuck in extreme stagflation

Mon, 07/18/2011 - 05:27 | 1465642 StychoKiller
StychoKiller's picture

What, all that public surveillance gear hasn't turned their Economy green yet?   Who woulda thunk it?!

Sun, 07/17/2011 - 23:37 | 1465387 chump666
chump666's picture

CHF is getting pumped...something is up, thats a panic meltup.

Major bond haircut, some bank, some french bank?

Mon, 07/18/2011 - 00:11 | 1465403 Youri Carma
Youri Carma's picture

In the land of the blind the one eyed is king. In this case I don't think it's the US despite all the biased Europe pieces.


But in the end this doesn't matter at all.

Mon, 07/18/2011 - 00:03 | 1465418 wsmith
wsmith's picture

The Wall Steet World Slavery Tour has devestated America and cannibalized Europe.

With that in mind, which Asian Tiger will be the first to fall?

My money is on South Korea.

Too much household debt and a nasty housing bubble.

Anyway, so long for now and God bless.

Mon, 07/18/2011 - 00:13 | 1465430 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

...Roll up!  Roll up for the slavery tour!  The majikal slavery tour is dieing to take you away....

Mon, 07/18/2011 - 02:01 | 1465538 Ponzi Unit
Ponzi Unit's picture


Mon, 07/18/2011 - 00:04 | 1465419 williambanzai7
williambanzai7's picture

Read Trillion Dollar Meltdown and then consider that these European Banks were trying to emulate banks in the US.

Mon, 07/18/2011 - 00:11 | 1465427 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

That's just tradition.

Mon, 07/18/2011 - 00:13 | 1465429 Youri Carma
Youri Carma's picture

June 2, 2011 Youri Carma wrote: Best would be if Greece, Portugal Ireland with the support of some other sane EU countries (which I can’t think of at the moment) would say enough is enough and decide to wipe out the bogus derivative deads and let the banksters eat cake for a change.

Webster Tarpley on his World Crises Radio June 4, 2011: Why don’t you create a debtors club since they call it ‘Club Med’. Allright fine the European ‘Club Med’. Let’s have a debtors club. A club of the outsiders. The Greeks, the Portugues, the Spain, the Irish. Maybe the Italians can join? There maybe some Easterners? The Baltics might wonna join?

A Debtors Club because of couse the creditors are organized in the Club of London and the Club of Paris. You need a debtors club to say: “You’re organized, quess what? We’re organized too. You have a syndicate, we have a syndicate. You have a kartel, we have a kartel and our policy is: We can’t pay! So, cut those debts and whipe out all the derivatives.” That’s gotto be the key demand.

Youri Carma: Why not the Tulip Mania solution?

Youri Carma: The Tulip Mania Solution or the Infinite Narrow Cliff Path

Mon, 07/18/2011 - 00:33 | 1465452 tempo
tempo's picture

More EU problems only strengthens the dollar as the world reserve currency which allows the US to run trillion dollar deficits for at least 5+ years w/o consequences. Good news for Americans.

Mon, 07/18/2011 - 00:34 | 1465453 tempo
tempo's picture

More EU problems only strengthens the dollar as the world reserve currency which allows the US to run trillion dollar deficits for at least 5+ years w/o consequences. Good news for Americans.

Mon, 07/18/2011 - 03:37 | 1465605 Urban Redneck
Urban Redneck's picture

More EU problems mean Ben will be forced to print more USD faster, fast money can oscillate on the EURUDS see-saw but it only buys hours days or weeks anymore.  There are too many players at table banking on M.A.D. theory maintaining the status quo, and moving problems "off balance sheet" only works as long as long as the other balance sheet doesn't need to be "rebalanced."  The circle is a wonderful shape...  


Mon, 07/18/2011 - 00:52 | 1465472 oldman
oldman's picture

Yeah, there is an elephant in the room and guess who it is?

Mon, 07/18/2011 - 01:00 | 1465483 mt paul
mt paul's picture

darn elephant..

long nose

ate all my peanutz.....


Mon, 07/18/2011 - 01:25 | 1465512 wsmith
wsmith's picture

Let me tell you motherfuckers something.

Why?  Because I believe you're idealistic and naive.

This is the new fucking normal.  You might not see full-employment till the baby-boomers die off.

We're completely fucked with a capital F.

And there are NO safe havens.


What do you think the government is going to do when it passes 2,000 and threatens to become a currency?

Do you think people like Bernanke and the Brilliant Larry Summers are just going to sit on their hands?

Fuck, no!  You'll see interventions coming out your assholes.

We're screwed! 

My advice?

By a tin shack, lots of pork and beans, and run to the hills.

Anyway, so long for now.

And God bless all you Marxist cocksuckers.

Mon, 07/18/2011 - 01:27 | 1465514 wsmith
wsmith's picture

The sky is falling, you motherfuckers.

Mon, 07/18/2011 - 10:46 | 1466234 MobBarley
MobBarley's picture

Well Golly Gee Willickers Mister take it easy.


Mon, 07/18/2011 - 01:39 | 1465523 Milton Waddams
Milton Waddams's picture

they will innovate their way toward prosperity, er, they will produce their way toward prosperity, er, they will consume their way toward prosperity, er, i got nothing else....

Mon, 07/18/2011 - 01:49 | 1465530 cosmictrainwreck
cosmictrainwreck's picture

er....uh...borrow their way?

Mon, 07/18/2011 - 01:47 | 1465528 SilverDoctors
SilverDoctors's picture

Silver's back above $40! Gold within tics of $1600!

Mon, 07/18/2011 - 01:54 | 1465532 Milton Waddams
Milton Waddams's picture

Looks like Bilderberg Group, or whatever it is called is right, to many fucking people and not enough resources.  

This is made especially problematic in the age of rapid technological development; that is machines and machine learning replacing jobs basic jobs.

Fast forward 500000000 years and there is some history channel talking about the chimps that embraced what everyone rationally refuses  oday as 'extinct'.  

Only the 'best' 'genetic lines' survived.  The everlasting beauty is it will be open source.

Mon, 07/18/2011 - 05:32 | 1465647 StychoKiller
StychoKiller's picture

Ergo, the surface of a planet is the incorrect place for an expanding technological civilization!

Mon, 07/18/2011 - 02:03 | 1465539 chump666
chump666's picture

gold bid, silver bid, CHF bid...major bear signal! 

Mon, 07/18/2011 - 02:07 | 1465545 chump666
chump666's picture

and the juiciest risk currency (AUD) of them all is sell.

Mon, 07/18/2011 - 02:50 | 1465564 wsmith
wsmith's picture

My dearest friends...

A brief update...

My wife has returned.  And she's pissed.

I've been drinking, and soon I shall masturbate to the lovely images of Becky Quick.

I'm trying to convince her to make barbeque pork for dinner.

But we live in inflation ravaged South Korea.  Pork is expensive.

However, soju is cheap.  It's 90 cents a bottle.

Will I get pork?  I truly don't know.

Pray for me, brothers and sisters.

I'll give you the news later.

Anyway, so long for now.

And god bless all you Marxist cocksuckers.

Do NOT follow this link or you will be banned from the site!