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No Capital Controls In The EMU? Liar Liar Pants On Fire

Reggie Middleton's picture





 

I have outlined the upcoming EU bank runs up to two years in advance (see the many links below). Whenever one expects a bank run, the first things TPTB do is institute capital controls to stem said bank run - which of course makes the bank run that much more necessary to get your capital out - wash, rinse, repeat! Remember, by treaty, no country in the EMU may use capital controls without automatically being removed from the union. Well, do you believe that to be fact that will last? Yeah, I don't either. Simply watch as the money bleeds from the banks and the bumbletrons attempt to staunch the flow using mechanisms that will simply exacerbate the flow. Even more incredible is the fact that even to this date, with the existence of publications such as BoomBustBlog, entire nations as well as their financial advisors, leaders, regulators and politictians STILL DO NOT EVEN COMPREHEND the nature of the modern bank run. You cannot stem the tide with capital controls, you can only exacerbate it. 

Now, As Predicted Last Year, The French and the Greeks Are In A Race For The Biggest Bank Run!

On Saturday, 23 July 2011 I penned "The Anatomy Of A European Bank Run: Look At The Banking Situation BEFORE The Run Occurs!" wherein I went through both the motive and the mechanism of a European bank run, focusing on Greece and France as impetus.

You see, the problem with this bank holiday thing is that the real damaging bank run will not be staunced by the conventional bank holidays, et. al. because it is a counterparty run that will cause the damage, not depositors. TPTB in Europe don't have the chops to stem this one, at least not from what I've seen. As for how that institutional bank run thing works, we excerpt "The Fuel Behind Institutional “Runs on the Bank" Burns Through Europe, Lehman-Style":

The modern central banking system has proven resilient enough to fortify banks against depositor runs, as was recently exemplified in the recent depositor runs on UK, Irish, Portuguese and Greek banks – most of which received relatively little fanfare. Where the risk truly lies in today’s fiat/fractional reserve banking system is the run on counterparties. Today’s global fractional reserve bank get’s more financing from institutional counterparties than any other source save its short term depositors. In cases of the perception of extreme risk, these counterparties are prone to pull funding are request overcollateralization for said funding. This is what precipitated the collapse of Bear Stearns and Lehman Brothers, the pulling of liquidity by skittish counterparties, and the excessive capital/collateralization calls by other counterparties. Keep in mind that as some counterparties and/or depositors pull liquidity, covenants are tripped that often demand additional capital/collateral/ liquidity be put up by the remaining counterparties, thus daisy-chaining into a modern day run on the bank!

Make no mistake - modern day bank runs are now caused by institutions!

And Yes!!! The fodder for bank rungs are ALL OVER THE EUROPEAN SPACE!!!!

Today's MSM headlines make this quite clear, but before we get to them, just remember how obvious this was two and three years ago and why NOBODY should be shocked or surprised! See Ovebanked, Underfunded, and Overly Optimistic: The New Face of Sovereign Europe from Wednesday, 31 March 2010 and Is Another Banking Crisis Inevitable? from Feb 4, 2011 and a complete video tutorial based on early 2010 work that has yet to be even one iota inaccurate... 

Now, why would anyone be concerned about a bank run today? Oh yeah...

 CNBC reports Spain Officially Requests Cash for Bank Bailout From Europe, right after I made it clear that CNBC is asking the wrong questions - to wit: CNBC Asks, "So Why Are Spanish Bond Yields Falling?" I Ask The Better Question, "Why Are Spanish Banks Considered Solvent?" 

You also have CNBC reporting that Fitch Cuts Cyprus to Junk as Greek Exposure Hits (exactly as the Greek bailout constructionist lawyer from Gottlieb in the video above said it would last week). Exactly one year ago today I claimed Eighteen Percent of the EU is Literally Junk, Carried As Risk Free Assets at Par at 30x+ Leverage: Bank Collapse is Inevitable!!! I wasn't joking. Bank collapse is INEVITABLE!!!

If you remember, Greece was supposed to be in the clear right? Let's bring back Greek Crisis Is Over, Region Safe”, Prodi Says – I say Liar, Liar, Pants on Fire! All said Greece would never default while I made it clear multiple defaults were literally guaranteed as far back as 2010:

The Greece and the Greek Banks Get the Word “First” Etched on the Side of Their Domino 2010

Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse! 2010

and the list goes on...

  1. Greek Soap Opera Update: Back to the Bailout That Was Never Needed?

  2. Many Institutions Believe Ireland To Be A Model of Austerity Implementation But the Facts Beg to Differ!

    As I Explicitly Forewarned, Greece Is Well On Its Way To Default, and Previously Published Numbers Were Waaaayyy Too Optimistic!

    How Greece Killed Its Own Banks!

    Introducing The BoomBustBlog Sovereign Contagion Model: Thus far, it has been right on the money for 5 months straight!

Spain was even called as an unrecognized problem back in 2010: As We Have Warned, the Fissures Are Widening in the Spanish Banking System

So what's the purpose of all of this reminiscing? Well, the contagion trade is on and popping my friend. Those BoomBustBlog Armageddon Puts That Became Fashionable At Goldman are ready to be strategized. My next post on this topic will be on that big EU bank that was the last to be priced for contagion. In the meantime, remember (subscriber only - click here to subscribe) contagion model research:

Next up is an updated take on that big bank hooked to deep into Greek and Italian exposure. I'll try to have the subscriber document and a free preview opinion up in a few hours on BoomBustBlog. In the mean time and in between time, follow me:

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Tue, 06/26/2012 - 10:52 | Link to Comment TacticalZen
TacticalZen's picture

FEMA camps my ass. Anything stationary is vulnerable. Including guards. Thats why we practice at 800 meters.

Tue, 06/26/2012 - 07:20 | Link to Comment dizzyfingers
dizzyfingers's picture
http://www.economicpopulist.org/content/moodys-downgrades-imf-warns-and-cyprus-next#comment-21781 Moody's Downgrades, IMF Warns and Cyprus is Next Submitted by Robert Oak on Thu, 06/21/2012 - 19:50

Moody's downgraded 15 banks, primarily because banks are busy placing bets in the great capital markets gambling casino. As a result of these downgrades, banks borrowing costs will increase and they will have to pony up more collateral to cover their holdings and trades. Below is a chart the new credit ratings and additional collateral costs banks reported in their 1st quarter financial statements. Moody's originally warned about bank credit ratings downgrades in February.

Moody's main reason for swinging the ratings hatchet was Global Capital Market activities.

All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital-markets activities,

Capital markets are, in part, long term debt instruments. In other words, exposure to sovereign debt, specifically European sovereign debt. Moody's gave reasons for each individual bank downgrade. For example, BoA's mortgage exposure was cited as well as their litigation costs. Why, we have no idea, since any civil action has resulted in BoA getting away with murder. Credit Agricole, on the other hand, has heavy Greek debt exposure. That said, with almost every bank downgrade comes the mention of risky activities, inability to reduce risk, challenging risk culture and large percentages of their quarterly profits due to risky global capital market investments. In other words, the great derivative gambling casino finally caused a few downgrades. Below is the sweeping overview from Moody's with the details for individual banks at this link.

 

--FIRST GROUP

The first group of firms includes HSBC, Royal Bank of Canada and JPMorgan. Capital markets operations (and the associated risks) are significant for these firms. However, these institutions have stronger buffers, or 'shock absorbers,' than many of their peers in the form of earnings from other, generally more stable businesses. This, combined with their risk management through the financial crisis, has resulted in lower earnings volatility. Capital and structural liquidity are sound for this group, and their direct exposure to stressed European sovereigns and financial institutions is contained.

Firms in this group now have standalone credit assessments of a3 or better (on a scale from aaa, highest, to c, lowest). Their main operating companies now have deposit ratings of Aa3, and their holding companies, where they exist, have senior debt ratings between Aa3 and A2. Their short-term ratings are Prime-1 at both the operating and holding company level.

--SECOND GROUP

The second group of firms includes Barclays, BNP Paribas, Credit Agricole SA (CASA), Credit Suisse, Deutsche Bank, Goldman Sachs, Societe Generale and UBS. Many of these firms rely on capital markets revenues to meet shareholder expectations. Their relative position reflects a combination of differentiating and sometimes adverse factors. Capital markets operations constitute a large part of the overall franchises for Credit Suisse, Goldman Sachs, Barclays, and Deutsche Bank, but less so for UBS, Societe Generale, BNP Paribas and CASA's cooperative group, Groupe Credit Agricole.

Other factors contribute to the relative positioning. For example, Barclays, BNP Paribas and Groupe Credit Agricole have, to varying degrees, relatively robust shock absorbers. Exposure to capital markets businesses is very high for Goldman Sachs, but this is balanced by a record of effective risk management. Barclays, BNP Paribas, Groupe Credit Agricole, and Deutsche Bank also have sizeable but varying degrees of exposure to weaker European economies. Some firms are relatively weak with regard to structural liquidity or reliance on wholesale funding.

Firms in this group now have standalone credit assessments of baa1 or baa2. Their deposit ratings range between A1 and A2, and their short-term ratings are Prime-1 at the operating company level. Their holding companies, where they exist, have senior debt ratings between A2 and A3 and short-term ratings between Prime-1 and Prime-2.

--THIRD GROUP

The third group of firms includes Bank of America, Citigroup, Morgan Stanley, and Royal Bank of Scotland. The capital markets franchises of many of these firms have been affected by problems in risk management or have a history of high volatility, while their shock absorbers are in some cases thinner or less reliable than those of higher-rated peers. Most of the firms in this group have undertaken considerable changes to their risk management or business models, as required to limit the risks from their capital markets activities. Some are implementing business strategy changes intended to increase earnings from more stable activities. These transformations are ongoing and their success has yet to be tested. In addition, these firms may face remaining risks from run-off legacy or acquired portfolios, or from noteworthy exposure to the euro area debt crisis.

Firms in this group now have standalone credit assessments of baa3. Their deposit ratings are A3 at the operating company level. Their holding companies, where they exist, have senior debt ratings between Baa1 and Baa2. Their short-term ratings are Prime-2 at both the operating and holding company level.

Then, the IMF issued a warning that the European Financial Crisis has reached critical stage:

The euro area crisis has reached a critical stage. Despite extraordinary policy actions, bank and sovereign markets in many parts of the euro area remain under acute stress, raising questions about the viability of the monetary union itself. A determined and forceful move toward a more complete EMU, particularly a banking union and more fiscal integration, is needed to arrest the decline in confidence engulfing the region.

The IMF has laid out various reasons for the problem, and reiterates a move to a banking union and fiscal consolidation. Yet one thing demanded by the IMF stood out. The IMF claims Europe must lower unit labor costs. Great, huh, squeeze workers under this lie of being competitive.

With that, below is a Bloomberg Law interview with Greece's attorney Lee Buchheit. Buchheit is on the front lines of the European debt crisis. He navigated and negotiated Greek's investor hair cut and restructuring deal. Buchheit is predicting Europe will need yet another €1 trillion and Cyprus is the next nation up for a bail out. This interview has a lot of insight, from a veteran expert's view returning home from the ongoing debt war.

 

 

 

Capital controls are financial speak to stop the bank runs going on in some of the imploding European nations.

Comments


Complete manipulation - heads + tails they win Submitted by And yet the manipulated market shrugs it off (not verified) on Fri, 06/22/2012 - 11:10.

Given this news, should't we be at DEFCON 2 or 1 like 2007 already? I mean Dick Bove, master bankster shill on CNBS and Bloomberg, was busy saying Moody's was bad for doing this and banks were still awesome (just like he's been saying since 2007, same with Kudlow, etc.). Bloomberg etc. were shrieking last night. But bank stocks went UP today?! Really? It's like when Bloomberg runs headlines at the bottom saying "China's economy slowing down," but then says "China's economy picking up," or "gold seen falling on imminent deflation" and then the next "gold seen rising on imminent inflation." Complete joke, even the media doesn't know how to play these blatant manipulations. Sure, banks have no $, will be crushed by trillions in derivatives - why not shoot up 50000%. Well, when things are good, thing are good for banksters and CEOs, and when things are really, really, really bad, it's also good because the Feds and Eurocrats have to goose the markets up. Heads they win, tails they win, we lose every time.


bank stocks up insanity Submitted by Robert Oak on Fri, 06/22/2012 - 11:38.

Right, you get these stock hype "articles" daily with no basis in data reality. "Market rises on oil supply concerns, market falls on Buffet comments"...they are issued every 15 minutes and to me it's some serious trader noise. If investors really base trades on those headlines, to me, they are out of their mind.

That said, supposedly one of the reasons stocks are up is because Morgan Stanley should be been the maximum downgrade, 3 notches and instead was only 2. In other words, due to the February warnings, the market had it "priced in" than the downgrades would be much worse.

That said, these downgrades to me are really telling. Moody's is telling us the Banks are at it again, nothing has changed. In spite of a global economic collapse, meltdown, they are still making massive risky derivatives bets, which have contagion written throughout.

It's unbelievable the larger economics awareness people didn't go really reading Moody's comments. This time, I think a credit ratings agency is doing something right, yes a rarity, but that's a serious warning to me.


BIS reports Banks engaging in risk, expect bail outs Submitted by Robert Oak on Sun, 06/24/2012 - 09:50.

This goes right along with Moody's downgrades for the same reasons and Moody's mentions "government support" in their ratings rationale.

The BIS has released a report stating banks are doing the same risky, derivatives types of trades that caused the financial crisis and fully expect taxpayers to bail them out if things go bad.

Article overviewing the report.


And it goes on. . .and on . . . and on Submitted by It's like "Groundhog Day" - except not funny (not verified) on Sun, 06/24/2012 - 12:57.

Damn, who would have thought, crack addicted gamblers that own the pit bosses and casino management and law enforcement won't give up crack or gambling? Especially when people who don't use crack or gamble have to finance the gamblers when they lose and don't get to share in any of their winnings? Who thinks the gamblers will ever give up their actions . . . EVER? Why would they, no repercussions, no rebukes, no prison, and the casino and enforcers are completely owned by crackheads while those who never stepped foot in a casino ever are forced to fund their drugs, gambling, and whores against their will. And to top it off - the upstanding non-gamblers are called lazy idiots and unemployed scum by the crackhead gamblers and casino management (actually, casino management does criticize the American public on MSM and praise the crackhead banksters). It's good to be a crack-addicted moron gambler - "best and brightest" - oh absolutely, "best and brightest."
The comparison to the mob is not apt, they wouldn't tolerate degenerate gamblers when they couldn't payoff their own bills, there never was public backing and the enforcers kept these mutts in check. Now, there is no check on these idiots, they own DC and NYC and everywhere else while the citizens that respected the rules deal with the repercussions against their will.
-KURTZ

Tue, 06/26/2012 - 07:03 | Link to Comment dizzyfingers
dizzyfingers's picture

 

BIS: Central Banks Reaching Limit of Power to Fix Economies Central banks in developed nations are confronting the limits of their ability to aid economic recovery as government efforts to strengthen their finances fall short, the Bank for International Settlements said.

“Central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed,” the Basel, Switzerland-based BIS said in its annual report, published Sunday. “Both conventionally and unconventionally accommodative monetary policies are palliatives and have their limits.”

While central banks’ actions were key to limiting damage from the collapse of Lehman Brothers Holdings Inc., interest rates are now “as low as they can go” and debt purchases have swollen central bank balance sheets, the BIS said. European Central Bank President Mario Draghi has indicated that the ECB is close to exhausting its tools after cutting its benchmark rate to a record low and flooding the banking system with cash.

“In the middle of all this we find the overburdened central banks, pushed to use what power they have to contain the damage,” Stephen Cecchetti, BIS economic adviser, said on a conference call. “There are very clear limits to what central banks can do. It’s critical for the health of the global economy to break the vicious cycles and reduce the pressure on central banks.”

 

‘Buys Time’

The BIS was formed in 1930 and acts as a central bank for the world’s monetary authorities. It said extraordinary measures have reduced incentives for politicians and other borrowers to repair balance sheets, and created the illusion that central banks can do much more to stoke growth and redress imbalances.

Central bank policy “buys time” in the short term for banks and governments to tackle debt overhangs, the BIS said. European finance ministers meeting in Luxembourg last week battled over strategies to contain the debt crisis. Leaders are due to hold a summit on June 28-29, which will be their 19th since the turmoil erupted.

The Federal Reserve expanded its Operation Twist program last week and will swap $267 billion in short-term securities with longer-term debt. Chairman Ben S. Bernanke said officials are focusing “primarily” on the outlook for jobs in deciding on further easing. The ECB has lent more than 1 trillion euros ($1.26 trillion) at its benchmark rate, and said this month it will continue to provide liquidity to solvent banks.

 

‘Benefits Shrink’

The benchmark rates of both banks, along with the Bank of England’s, are at a record low. Overall, central bank assets are at $18 trillion, about 30 percent of global gross domestic product, double the ratio a decade ago, according to the BIS.

“As the benefits of extraordinary monetary easing shrink and become less certain, the risks of expanding central bank balance sheets are likely to grow,” Jaime Caruana, general manager of the BIS, said in prepared remarks for a speech in Basel today. “Such hazards may materialize in ways that are not completely clear today.”

Loose policy also poses risks for developing nations by fueling credit- and asset-price booms, complicating efforts to stabilize price gains, the report said. In emerging economies, interest rates have been raised “only hesitantly” out of concerns about stoking further capital inflows.

Imbalance Risk

“As a result, monetary policy in emerging-market economies may be systematically too loose,” the BIS said. “This creates risks of rising financial imbalances” similar to those in advanced economies before the crisis.

The BIS called on central banks in advanced economies to take account of these spillover effects, and use all opportunities to encourage balance-sheet repair and deleveraging. Still, they “may have no choice but to keep monetary policy relatively accommodative for now.”

As central banks enter “uncharted territory” with their stimulus measures, policy makers may find it difficult to implement the required tightening of fiscal policy, Caruana said. Central banks might also lose credibility if governments fail to improve their balance sheets, he said.

“If markets come to see monetary policy decisions as constrained by the growing financing needs of government, the ability of central banks to control inflation would, at some point, be seriously compromised,” Caruana said. “Fiscal consolidation is therefore essential not only to restore fiscal sustainability, but also to preserve the credibility of monetary policy.”

On the debt crisis in Europe, the BIS said it’s “hard to escape” the conclusion that the solution to the crisis will have to include a pan-European banking system.

“A currency union that centralizes the lender of last resort for banks must unify its banking system,” it said. “Banks in Europe must become European banks.”

© Copyright 2012 Bloomberg News

Tue, 06/26/2012 - 06:20 | Link to Comment BlackVoid
BlackVoid's picture

If noone else, the FED will print to avoid collapse.

Tue, 06/26/2012 - 05:08 | Link to Comment Zero Govt
Zero Govt's picture

No capital controls???

Try getting some Forex

I ordered 9,000 Swiss Francs and without a utility bill the currency changer wouldn't do it. Ok what's the amount below not requiring a utility bill? Max £5,000 in the foreign currency amount. Ok i'll have £4,900 in Swiss Francs please... er, no you're "deliberately going below the amount, i can't in all consciounce do that!"

So you ask for the rule not to break it and these twats with rule books stuck up their arses literally invent another rule on the spot, or think you're a terrorist or drug smuggler, because you're going under the rule (to avoid breaking it!)

And all this twatishness (Govt regulation) is driven by your friendly neighbourhood stone cold broke banker in nappies (he needs constant bailouts to stay in biz) because they don't want you to have access to your money as they're scared you might find out how bankrupt and badly run their bank is and because Govt regulators are little more than extensions of these retards rotten business models

the loons have taken over the asylum, the arseholes (rule books stuck up their rectums) are running the world ...suck it and see

Tue, 06/26/2012 - 05:10 | Link to Comment tonyw
tonyw's picture

Just go to a different currency changer and ask for £4,900 in Swiss Francs.

Anti Money Laundering regulations state that when a person indicates a person trying to avoid the reporting regulations that person should be reporting, e.g. frequently paying in cash below the reporting limits. If you don't like it take it up with your bought and paid for politician.

 

Tue, 06/26/2012 - 08:00 | Link to Comment Zero Govt
Zero Govt's picture

tonyw  -  you're just listening mate.. i couldn't comply with the dickhead rule so i asked to dip below this moronic legislation (State intervention/abuse of freedom).. the money changer (dipshit) then INVENTED a new rule fabricated out of thin air for below the £5,000 (thought £10k was the 'regulators piss their pants' level anyway!)

now dipping below the rule because you can't comply is deemed as avoidence is it? a terrorist drug-trafficing act.. you can't fuking win can you, it'll be changing £5 next because the total wanker behind a desk thinks you look like a bomber coz you wear a skull t-shirt... they're now not applying 'The Rule' but are miles into pure supposition and applying their very own obnoxious peanut brained personal opinions on biz transactions

... so as with everything the State does simple business transactions are turned into hysterical political footballs ...business seizes up ... the rules as aways cause bloody chaos

in fact we're waaaaaaaay beyond the rules, this dipshit talked about his "conscience" ...is he trained in consciousness by the financial regulators? ..you know those dozy dipshits that have missed every banking collapse in the past 4 years and not said a squeek while imposing their know-nothign jack-ass rules on small private transactions?

..these Forex screens are just like the equally moronic rules at airports where they also achieve nothing (no terrorists stopped, no drug money found etc) but abuse the lives and freedom of 99.9999999% of the population

the rules are a total failure (like every Law ever made) to prevent or stop anything

the rules are a total success at expanding the empires of societies arseholes with rule books stuck up their rectums patronising and putting a spanner in the workings of society

Fuck the morons ....we're just going to find another way to do it and this State owned money changer (whose staff have gone downhill into zombie brain-dead retards since they bought the private guy out) can go the fuck out of business

Tue, 06/26/2012 - 18:52 | Link to Comment Zero Govt
Zero Govt's picture

UPDATE : it gets worse!!!

Today organising a bank transfer i signed a form to authorise it with Photo ID to prove i was me. I know i'm me but the bank is too thick to recognise me unless i have photo ID to prove i am me

But the bank tellar took one look at my signature on the transfer form and said it "wasn't close enough" to my original signature. What? Yes the bloke that checks signatures is a right fussy fucker apparently and even though i signed my signature in her presence it wasn't "close enough" to the 2 originals provided and the twat would reject it

WTF???

Yes you heard that right. Your signature is not good enough even evidenced (in reality) in front of the banks own staff that you had signed your signature

You now have to comply with the personal opinion of some compliance a-hole that your signature is in fact your signature according to HIM.. not any Earthly reality and matter of fact you had signed the form but to his artistic impression of what your signature looks like in his God-like personal opinion

This is only your signature if he says it's your signature. If the arsehole doesn't think it's your signature, it's NOT your signature, it's clearly a fake or just 2nd rate

I had to sign a 2nd form and try again.. it's like fuking school, "must try harder next time" to please all the total tossers with rule books stuck up their backsides

We are beyond dealing with reality here, we have now entered outer space and are heading at ramming speed toward Uranus (planet rules and regulations loony land)

Namely you are not a legitimate person and nothing you do is legitimate unless arseholes behind Govt/legislative desks grant you their permission

Tue, 06/26/2012 - 07:12 | Link to Comment Ghordius
Ghordius's picture

+1 this is the intent of several treaties, including the "report suspicious activities" idiocies. All because of the War on Drugs the laws target all cash transactions as potentially drug-money or untaxed money.

Tue, 06/26/2012 - 03:55 | Link to Comment Dismal Scientist
Dismal Scientist's picture

'Remember, by treaty, no country in the EMU may use capital controls without automatically being removed from the union.'

Actually, you're wrong, but never let the facts get in the way of a good story. Under the treaty, the rules on capital controls can be suspended in the event of a financial emergency. Have a guess what the current situation will be defined as...

 

Mon, 06/25/2012 - 23:01 | Link to Comment brettd
brettd's picture

Merkel can do what she wants.

It's amazing that the German people still want to pay europe's credit card bill.

Mon, 06/25/2012 - 22:39 | Link to Comment Davalicious
Davalicious's picture

They have to do something about their lighting. I couldn't see Reggie at all in that video.

Mon, 06/25/2012 - 14:50 | Link to Comment falak pema
falak pema's picture

I think Nigel Farage should organise a special event at the London Olympics reserved for french, greek, italian and spanish bank CEOs!

My bets are on Santander. Spain always wins! Like Nadal.

Mon, 06/25/2012 - 14:49 | Link to Comment gaoptimize
gaoptimize's picture

Patrick: "Liar, liar plants for hire."

SpongeBob: "It's 'pants on fire' Patrick"

Patrick: "Well, you should know, liar."

Mon, 06/25/2012 - 13:51 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Quick question.  The bank runs in Europe are taking what form:  withrawals to cash, transfers to other institutions, transfers out of the EU, or what?

 

Tue, 06/26/2012 - 05:21 | Link to Comment tonyw
tonyw's picture

The bank run in the UK mentioned above is to do with Northern Rock which had to be nationalised in 2007 with the government stepping in to guarantee all deposits. Since then there have been no other bank runs in the UK - to the best of my recollection.

In other troubled countries such as Greece those with lots of money have used their "spare cash" to purchase property outside Greece e.g. London and/or switched to banks in countries perceived to be more secure. Mostly they are doing this IMHO to avoid having their cash converted to New Drachmas which they see as more risky than euros.

Of course most people do not have enough "spare cash" to do this and are therefore stuck between leaving any money they do have in the bank or holding cash at home and having it stolen. And a high number are living hand to mouth so literally have nothing to lose.

 

Tue, 06/26/2012 - 01:07 | Link to Comment DeadFred
DeadFred's picture

Watch the EURCHF rates everyday with the slow crunch downward and the occasional ramp upward. Very few are betting on the peg breaking anytime soon, what you are seeing is major amounts of money leaving the EU and being converted into francs, interspersed with the Swiss bank printing a boatload to drive the rate a bit higher. Big money positions are moving toward safer grounds. I'd love to know the actual amounts but what are the chances they would tell the truth when the truth would make things worse?

Mon, 06/25/2012 - 13:18 | Link to Comment KidHorn
KidHorn's picture

Germany will step in, but not after a lot of concessions from the periphery. Germany will end up in control of mainland europe, both financially and politically. It doesn't seem possible right now, but give it a few more weeks or months. When you're starving, you'll concede anything for food. Germany is as broke as everyone else, but who won't accept the euro after europe becomes Germany?

Mon, 06/25/2012 - 22:56 | Link to Comment Savyindallas
Savyindallas's picture

I think Germany needs to step in and demand that the German territories stolen from them after WW2 be given back  -they then need to demand reparations for the 9 million or so of Germans who were murdered after the war ended (by slave labor camps, expulsions and mass deportations from their ancestral homes, and just plain murder in various despicable ways)and the even larger number of German women who were raped  -  this should be a condition of their continued baillouts of the lazy, corrupt European, Banksters. We don't need Nuremberg Trials -let's have Brussels trials  -and then hang the Banksters by their balls.

Tue, 06/26/2012 - 03:35 | Link to Comment jeff montanye
jeff montanye's picture

much of current events has entertainment value.  the response of europe to german calls for ww2 reparations would be particularly amusing.  somehow i believe we wait in vain.

Mon, 06/25/2012 - 12:47 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Careful Reggie, you're gonna be on the FBI top investigations list when the melt-down occurs.  Especially if you've been calling it for years.  You'll be classified as the reason.  You certainly don't think government has the fortitude for circumspection do you?  Yep, your head will be on a platter like the first voice calling in the wilderness.  (Of course you avoid the trouble with a simple donaton, er, short position, a la Corzine) 

 

Mon, 06/25/2012 - 22:59 | Link to Comment Savyindallas
Savyindallas's picture

Right Reggie-the Ministry of Truth will surely prosecute you for telling the truth.  Be careful. They especially don't like people who rub their noses in it and say "I told you so".

Mon, 06/25/2012 - 17:16 | Link to Comment bunnyswanson
bunnyswanson's picture

Are you suggesting anyone who saw The Great Credit Expansion as a noose around the neck of nation's soverignity be duct taped and thrown into the trunk of a car, taken to a prison and isolated?  In the end, those who are trying to warn the people of the impending collapse of the monetary system (which is intentional - in order to create one bank, one currency) will be heroes.  Getting the word out is important as the MSM is not.

Mon, 06/25/2012 - 14:00 | Link to Comment oddjob
oddjob's picture

Pumping Google/SeeIA is not exactly ruffling feathers.

Mon, 06/25/2012 - 12:29 | Link to Comment Snakeeyes
Snakeeyes's picture

It is starting fall apart and the pressure on Germany to guarantee everyone is mounting. Let's see if she can continue to say no.

http://confoundedinterest.wordpress.com/2012/06/25/the-new-siegfried-line-merkel-dismisses-eurobonds-and-eurofdic-while-spain-and-cyprus-seek-aid/

Mon, 06/25/2012 - 12:17 | Link to Comment MrBoompi
MrBoompi's picture

I hope Farage wears a bullet-proof vest and travels with armed security.  I think the Rothschilds probably know a few hit men.

Another thing I might add is it may very well require trillions of Euros to bail these countries out, but a bailout is composed of newly-created fake money that is only handed out if the countries agree to pay the loans back with REAL money.

The huge debts we see all over the world is just a scheme to transfer all of the world's wealth to a relatively small number of people.  Some day we'll all come to that realization, but it may be way too late to do much about it.

 

 

Mon, 06/25/2012 - 18:24 | Link to Comment Impotent_Smurf
Impotent_Smurf's picture

I think this site mistakes the amount of people who know this system is utterly flawed. A lot do. The problem is the system is setup so a pissed off individual can't do a thing, while the government will be up the ass of any group who gets large enough to rally behind a cause. Better to go with the flow, no matter how insane it may appear upon actual analysis. That's the mindset of the majority, and it's in place because deep down most people are lazy fucks who will take the path of least resistance at every turn of their lives. The owners/elite, whatever you want to call them learned this a long, long time ago.

Mon, 06/25/2012 - 11:32 | Link to Comment New American Re...
New American Revolution's picture

Say Reg... that video frame of you kind of looks kinda like.... could it be.... OMG... it's Barry Soetoro!!!

Mon, 06/25/2012 - 14:14 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

NO. WRONG. That - is Ben Bernanke. With a Coppertone tan. And, elevator shoes. Dead match. 

Mon, 06/25/2012 - 12:00 | Link to Comment akak
akak's picture

I have that same problem --- they all look alike to me, too.

Mon, 06/25/2012 - 16:20 | Link to Comment akak
akak's picture

Shit, whatever happened to that good ol' ZH politically incorrect humor?

Lighten up, you thin-skinned geeks.

Mon, 06/25/2012 - 16:33 | Link to Comment Normalcy Bias
Normalcy Bias's picture

No kidding...

These results show that N170, the highly-specific facial recognition signal, cannot discriminate between "other race" faces. This inability had not been known previously, and this study is the first to identify a possible neurophysiological basis of the other race effect.

"They All Look Alike": Understanding the "other race effect."

 

Mon, 06/25/2012 - 16:40 | Link to Comment akak
akak's picture

And anyone who is old enough to remember John Amos of the 1970s sitcom "Good Times", and who would deny that he looked EXACTLY like a gorilla, is simply lying to themselves.

Mon, 06/25/2012 - 16:53 | Link to Comment Normalcy Bias
Normalcy Bias's picture

Are you sure that part wasn't played by Maxine Waters?

Mon, 06/25/2012 - 16:58 | Link to Comment akak
akak's picture

ROR!

(But actually, no, I am not sure, now that you mention it.)

Mon, 06/25/2012 - 11:11 | Link to Comment Sudden Debt
Sudden Debt's picture

don't feel like running...

LET'S TAKE THE CAR!

 

Mon, 06/25/2012 - 11:22 | Link to Comment covert
covert's picture

somehow there must be a way to profit from it.

http://covert.ias3.com/expose/

Mon, 06/25/2012 - 11:01 | Link to Comment bankruptcylawyer
bankruptcylawyer's picture

reggie you should be the next treasurer with jim grant head of the fed. 

Mon, 06/25/2012 - 12:20 | Link to Comment New American Re...
New American Revolution's picture

That's what I was thinking, tho it wouldn't be the FED, but the ARB (Publicly held-2/5ths by Congress as American Reserve Bank), and Reggie wouldn't be at Treasury, but at the CBO.   At the treasury I'd find a small town banker that understands and maybe used to work in the big picture.   www.nar2012.com and coming soon, www.electanewcongress.com   Viva la' Revolucion

Mon, 06/25/2012 - 18:13 | Link to Comment Mitzibitzi
Mitzibitzi's picture

"You're in hut 16, Bunk 3. Your hot-swap is 'Guest 20212' - A Mr. Achmed, apparently. You have 4 minutes to stow your gear, then assemble on the yard for work assignment. Oh... welcome to FEMA Camp 4-Echo!"

Mon, 06/25/2012 - 10:52 | Link to Comment bigwavedave
bigwavedave's picture

ACA for those not ITK

Mon, 06/25/2012 - 10:47 | Link to Comment stocktivity
stocktivity's picture

Merkel is the last holdout pushing for the Eurobonds and kicking the can a bit further down the road. She won't hold out much longer. More hopium soon. It's all Bullshit!

Tue, 06/26/2012 - 03:25 | Link to Comment jeff montanye
jeff montanye's picture

saying merkel is the last holdout on eurobonds is like saying you, carlos slim and i have a majority vote for pooling our assets.  but carlos still holds out!

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