Willem Buiter Says If ECB Does Not Intervene In Thursday's Italian Bond Auction, It Will Likely Fail

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/12/2011 - 09:51 | 1447501 Harlequin001
Harlequin001's picture

These central banks all so busy buying everyone else's bonds now that they've forgot to sell any gold...

Tue, 07/12/2011 - 10:20 | 1447588 Larry Darrell
Larry Darrell's picture

Edit, nvm:  Refresh has USDX back at 76.04


Tue, 07/12/2011 - 10:23 | 1447591 TruthInSunshine
TruthInSunshine's picture

Off Topic, but somewhat timely/humorous - as the debt ceiling and budget deficit debate in the U.S. has gone full Kabuki Theater Retard:

07-12 10:17: Senate Republican leader McConnell says as long as Obama is in the White House a real solution to US debt problem is unattainable Back On Topic: As someone on another forum mentioned, it's highly amusing that China, whose economy is about 17% the size of the Eurozone's, is going to bail out the Eurozone, and that China's entire national surplus, if donated in its entirety to rescue Eurozone debtors and backstop counterparty risk, would have a burn rate of about 8 to 12 months.
Tue, 07/12/2011 - 10:27 | 1447607 SheepDog-One
SheepDog-One's picture

Its a Kabuki enigma...the real answer is THERE IS NO SOLUTION to the 'debt problem' which is WAY more than a 'problem' in reality its mathematically IMPOSSIBLE to ever pay back.

So Mitch and man-tan asshole Boehner and illegal alien Barry Soetorro you can keep up the puppet show, but you know there is NOT an answer!

Tue, 07/12/2011 - 11:38 | 1447806 TruthInSunshine
TruthInSunshine's picture

Nope, Greece is almost fixed again (a matter of minutes or hours, possibly days):

Then, they're going to fix Italy, Spain, Portugal, Ireland and France, too. Dallara was apparently holding out. The Greek finance minister is requesting the next batch of euros ASAP, however...ahem...


Tue, 07/12/2011 - 09:52 | 1447506 LeBalance
LeBalance's picture


If someone has to intervene to save your ass, you already failed.

Tue, 07/12/2011 - 09:53 | 1447514 Harlequin001
Harlequin001's picture

Hmm, what happened to those bad old days when money had some value and the last thing we needed was central bank intervention?

Tue, 07/12/2011 - 09:56 | 1447527 Sudden Debt
Sudden Debt's picture

When the ECB and IMF where considered useless organisations...

2007... the I-pad didn't even went mainstream in that time. Just imagine how people survived that era...

Tue, 07/12/2011 - 10:51 | 1447684 johngaltfla
johngaltfla's picture

They did. It didn't fail. Wash, rinse, repeat.

Until the laundry comes out of the machine looking like Lehman.

Tue, 07/12/2011 - 11:06 | 1447741 Jonas Parker
Jonas Parker's picture

Good to see you, John! Glad you're enjoying watching the tightwire act (sans net) that the world economic news has become. Just wait for the first "splat"!

Tue, 07/12/2011 - 11:09 | 1447750 Jonas Parker
Jonas Parker's picture

Oops! Fat fingers!

Tue, 07/12/2011 - 09:53 | 1447512 SirPlayomic
SirPlayomic's picture

This ECB doesn't do any "heavy lifting", that's left to us plebs - the tax paying public.


Tue, 07/12/2011 - 09:55 | 1447523 Harlequin001
Harlequin001's picture

Yes, how much of my money are they going to blow again on this one...

Tue, 07/12/2011 - 10:00 | 1447545 SirPlayomic
SirPlayomic's picture

Well, they'll be asking the Germans to double their contribution to the ECB rescue fund, so the German tax payer is probably on the hook for at least 250 billion Euro. The US? At least as much.


Tue, 07/12/2011 - 10:17 | 1447585 Josh Randall
Josh Randall's picture

SWEET! The Germans now officially are suffering from "American taxpayer syndrome", where you load up the world on your tax paying shoulders and get paid back with hand buzzer handshakes, and golden showers....welcome to the club boys and girls

Tue, 07/12/2011 - 09:55 | 1447518 hedgeless_horseman
hedgeless_horseman's picture

Circle jerk...European banker style. 

How long can they, "keep it up?"

Tue, 07/12/2011 - 09:57 | 1447533 Sudden Debt
Sudden Debt's picture

untill they are forced to back up the currency with tungsten to give it back some value.


Tue, 07/12/2011 - 10:03 | 1447539 etrader
etrader's picture

Just happens that Citi is the most (US based) exposed to Italy's debt. <?>

Tue, 07/12/2011 - 10:04 | 1447555 Sudden Debt
Sudden Debt's picture

there's no danger in that. The worst that can happen is that the stock drops to zero.

At least their generous dividend stops that from happening...


Tue, 07/12/2011 - 09:54 | 1447522 Cognitive Dissonance
Cognitive Dissonance's picture

So when are the central banks going to run out of thumbs for all the leaking dikes?

Tue, 07/12/2011 - 10:03 | 1447540 Harlequin001
Harlequin001's picture

I hear they're going to print more 'thumbs' as necessary...

and if that doesn't work they'll bring in some old workers from Fukushima of something...

I hear they've grown a few spare ones...

Tue, 07/12/2011 - 10:14 | 1447575 Cognitive Dissonance
Cognitive Dissonance's picture

Fresh out of the growth medium.

Tue, 07/12/2011 - 10:21 | 1447595 TruthInSunshine
TruthInSunshine's picture

Post that McBaby face pic, CD.

It's creepy and highly symbolic.


Tue, 07/12/2011 - 10:48 | 1447673 Cognitive Dissonance
Cognitive Dissonance's picture

It always brings a chill to my spine when I see it. Cute but scary at the same time. Very Cognitive Dissonance like.

Welcome to the new world order McBaby.


Tue, 07/12/2011 - 11:39 | 1447853 TruthInSunshine
TruthInSunshine's picture

Poor little bastard. Gonna' be raised on Shamrock shakes and McNuggets.

Tue, 07/12/2011 - 11:58 | 1447921 Cognitive Dissonance
Cognitive Dissonance's picture

And educated by Ronald McDonald. The ultimate human assembly line.

Perfectly consistent worker bees at last. Henry Ford must be eating his heart out.

Tue, 07/12/2011 - 10:44 | 1447652 Sudden Debt
Sudden Debt's picture

this kid will surely work on wallstreet when he grows up...


Just imagine all those flash crashes that could have been but didn't because he wasn't born yet...


Tue, 07/12/2011 - 09:56 | 1447526 HITMAN56
HITMAN56's picture

on the conf call (going on now) he said ECB not ready for rate hike unless risk markets move substantially lower...no balls...smells just like QE3 wont happen until mkt moves substan lower....

Tue, 07/12/2011 - 09:58 | 1447530 SirPlayomic
SirPlayomic's picture

I read somewhere, probably here at zerohedge, that China is not only simply protecting its European investments, but wants to make sure that USA falls before EU, since that makes it more likely that China is the last man standing.


Tue, 07/12/2011 - 09:58 | 1447534 Dick Darlington
Dick Darlington's picture

Yeah, ECB buying the toxic waste of the insolvent european sovereigns has worked so well that now it's time to start monetizing the massive pile of **** called Italy.

Tue, 07/12/2011 - 09:59 | 1447538 steve from virginia
steve from virginia's picture


So ... the benefits to the so-called EU economy flowing from Mr. Trichet's interest rate hike a few days ago have cost what, exactly?

This is a lesson for the US 'deficit hawks'. Austerity and grim determination need to be approached delicately. Wrong move -- .25% too far or too fast -- and the result is 2% losses -- turning into 20% losses.

The ECB has caused this 'ripple of financal discontent' and it is fitting that it will have to undo itself.

On the other hand, a finance deleveraging event would be refreshing, don't you think? Kind of 'clear the air' and 'get rid of dead wood'?

Tue, 07/12/2011 - 09:59 | 1447541 scratch_and_sniff
scratch_and_sniff's picture

Some huge bids comming into EUR/USD, and they are all bids, then the trickle back down of offers, which does suggest there is someone throwing money at it...who knows.

Tue, 07/12/2011 - 10:11 | 1447569 snowball777
snowball777's picture

I love the smell of moral hazard in the morning.

Monetize it!

Don't criticize it (Moody's!)

Monetize it!

and JC will advertise it 

Some call it T-bills
Some call it bonds
Some call it sovereign 
Some call it junk 

Tue, 07/12/2011 - 10:14 | 1447574 props2009
Tue, 07/12/2011 - 10:19 | 1447583 SheepDog-One
SheepDog-One's picture

US leading in world full-retard Special Olympics YEAAAAAAAAyyyyyyyy!

Tue, 07/12/2011 - 10:18 | 1447579 SheepDog-One
SheepDog-One's picture

How come no one figured out this simple economic system before? ANY sign of danger ahead, just pave the road ahead with printed up fiat until smooth.

Tue, 07/12/2011 - 10:18 | 1447586 Troy Ounce
Troy Ounce's picture


If that is Willem Buiter, also called:

Willem the "I-hate-a-gold-standard-because-it-will-stop-any-over-leveraged-financial-company-like-Citi-to-manipulate-anything-and-everything-and-i-do-not-like-that-because-Citi-pays-my-enormous-salary-because-they-can-and-other-companies-can-not-because-they-are-not-financial-companies",

then ignore him.

Tue, 07/12/2011 - 10:22 | 1447599 SheepDog-One
SheepDog-One's picture

No matter what anyone says Im sticking with MY plan, Im my own central bank with my own currency. 

Tue, 07/12/2011 - 10:40 | 1447637 SDRII
SDRII's picture

Buiter is like a addict trying desperately to break old habits but just when it seems within reach the relapse

Tue, 07/12/2011 - 10:19 | 1447590 Jerominoo
Jerominoo's picture

Well, if Italy goes, quess who's next...


Tue, 07/12/2011 - 10:20 | 1447593 web bot
web bot's picture

So what do you think the mega parasites that appear on CNBC are doing now to get ready to play the Euro crisis?

Tue, 07/12/2011 - 10:23 | 1447601 SheepDog-One
SheepDog-One's picture

Preparing their bunkers.

Tue, 07/12/2011 - 10:25 | 1447603 Troy Ounce
Troy Ounce's picture


Where is that US (CNBC?) commentator with that high pitched voice who had a spat with ZH 2 years ago telling everybody that there was no crisis and that time would tell?

Tue, 07/12/2011 - 10:31 | 1447614 TruthInSunshine
TruthInSunshine's picture

Beaker jumped CNBS to join Rupert Murdoch's FBN:


Dennis Kneale to Join Fox Business Network
Tue, 07/12/2011 - 11:02 | 1447727 Troy Ounce
Troy Ounce's picture

Thanks Truth

That's him!

Tue, 07/12/2011 - 10:34 | 1447619 RobotTrader
RobotTrader's picture

The investment community's fixation and fascination with "Paper" is nearing an all time record.

Everyone is eyeballing the huge yields on these PIIGS bonds, everyone wants to be the hero to bottom tick this paper so they can enjoy a huge dividend yield for the next 10 years.

A bailout is inevitable, nobody is going to let a major country go broke.

Pretty much a game of "chicken" to see who has the balls to step up and buy when the news flow is the worst.



Tue, 07/12/2011 - 10:40 | 1447642 tallystick
tallystick's picture

Well, bailing out a major country is like trying to rescue someone who can't swim from drowning.  If you aren't careful you get pulled in and pushed under.

Tue, 07/12/2011 - 10:56 | 1447669 SheepDog-One
SheepDog-One's picture

YOUR cheap 2 bit whore fascination with paper is making Gentleman Jim *LOL* while you puke up more blood.

Tue, 07/12/2011 - 11:44 | 1447881 scratch_and_sniff
scratch_and_sniff's picture

"They say the darkest hour, is right before the dawn"

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