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Deutche Bank's Ackermann on the LTRO

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Sat, 01/28/2012 - 10:18 | 2105365 falak pema
falak pema's picture

 

 

Great analysis as usual smack on the button BK, the time line banker prediction and hubris/misconception so visible, even if ...

Deutsche Bank optimism...is under the gun, but is presented as...'Deutche' bank 'optomism'.

I am of course tongue in cheek on this as the substance is so meaty in itself. You should smack your proof reader's butt, which I hope sincerely is sufficiently enticing and worth that effort...

TY Sir.

Sat, 01/28/2012 - 04:41 | 2105166 PORTA PORTA
PORTA PORTA's picture

BREAKING NEWS

Assurance of Compliance in the 2nd GRC Programme/FT

http://www.scribd.com/doc/79659411/Assurance-of-Compliance-in-the-2nd-GRC-Programme-PP

1. Absolute priority to debt service

Greece has to legally commit itself to giving absolute priority to future debt service. This commitment has to be legally enshrined by the Greek Parliament. State revenues are to be used first and foremost for debt service, only any remaining revenue may be used to finance primary expenditure. This will reassure public and private creditors that the Hellenic Republic will honour its comittments after PSI and will positively influence market access. De facto elimination of the possibility of a default would make the threat of a non-disbursement of a GRC II tranche much more credible. If a future tranche is not disbursed, Greece can not threaten its lenders with a default, but will instead have to accept further cuts in primary expenditures as the only possible consequence of any non-disbursement.

2. Transfer of national budgetary sovereignty

Budget consolidation has to be put under a strict steering and control system. Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time. A budget commissioner has to be appointed by the Eurogroup with the task of ensuring budgetary control. He must have the power a) to implement a centralized reporting and surveillance system covering all major blocks of expenditure in the Greek budget, b) to veto decisions not in line with the budgetary targets set by the Troika and c) will be tasked to ensure compliance with the above mentioned rule to prioritize debt service.

 

i DONT KNOW IF ANY COUNTRY IN THE WORLD COULD ACCEPT LOOSING SOVEREIGNTY IN SUCH MANNER.

GREECE/HELLAS WILL NOT. THEY PERFORM THE UGLIEST FASCIST EXERCISE ON GREECE/HELLAS AND I FORESEE

TROUBLE COMING. TROUBLE TO EU AND THE MARKETS. THERE IS NO EXCUSE FOR EU/GERMANY TO ESTABLISH A FASCIST RIGIME ON A MEMBER STATE... !!!!!!!!!!

 

PP 

 

 

Sat, 01/28/2012 - 03:53 | 2105114 PORTA PORTA
PORTA PORTA's picture

DB has 1/44 leverage.-

They re out of cash in Germany, and by September they will pass the Electronic Money DIrective ( voted in 2009 in EU ).. no cash transactions... ( today its 60%+ )

 

PP

Sat, 01/28/2012 - 00:48 | 2104931 virgule
virgule's picture

Bruce,

Nice video - but I'm not sure this medium is suitable for the ideas you try to convey. Your thoughts often require some real thinking on the audience's part. Video is not suitable for thinking: can't go back one paragraph, can't pause for a second to digest something unexpected, can't stop completely to check some facts that sprung in your mind, etc. (well, one can do that, but it really breaks the flow and the video becomes very confusing)

Your written articles tend to be shorter than average, and convey a lot of meaning. I felt this video was longer than average and lacked density in meaning (no offense intended).

Finally, while it's nice to see real evidence rather than a hyperlink to the evidence (which most don't follow), it re-creates the same feeling as edited television, where information is re-used out-of-context. Given the paranoiac crowd here at ZH and elsewhere, the videos may be perceived as manipulative rather than truth-digging.

Thanks for taking the time to share. You are one of my favourie bloggers.

Fri, 01/27/2012 - 21:10 | 2104572 disabledvet
disabledvet's picture

Listen...the history of all this crap is "one big Banker's Trust." That's all Wall Street and all of Europe became in the 90's and 2000's. Private banking is the way forward...all else is being handled by the Fed. And I mean ALL ELSE. the media is the evil doer in all this...with the political classes "driving the car off the cliff" in the hope that in all the mayem "no one will notice." Here's a brief history of the banking theories right up to 2008:
http://www.youtube.com/watch?feature=player_detailpage&v=owt4M_4FFss
of course sometimes mayhem is harder to create than TPTB think....

Fri, 01/27/2012 - 17:22 | 2103893 barliman
barliman's picture

 

What is he thinking this year?

The same as last year .... "Deutchland, Deutchland uber alles ..."

This is loan sharking on a global scale. The loan shark isn't worried about you paying the principal off, he's looking for the vig. If you keep current on the vig, he's happy to take a fat profit. If you don't keep current on the vig, he's happy to take EVERYTHING.

For global scale loan sharking, you forget about the vig - because your plan from the get-go is to take EVERYTHING.

Unfortunately for the biggest of the mob bosses, Benny the VIG, your usual loan shark clientelle doesn't include people with standing armies and THERMONUCLEAR WEAPONS.

barliman

Fri, 01/27/2012 - 17:43 | 2103972 Money never sleeps
Money never sleeps's picture

Kyle Bass on when the shit is going to hit the fan: http://bit.ly/ywzqNI

Fri, 01/27/2012 - 16:20 | 2103656 crzyhun
crzyhun's picture

Where in the F is all this $$ coming from???

Fri, 01/27/2012 - 17:06 | 2103849 covert
covert's picture

deutchebank sucks! oberbank's better.

http://oberbank.at

http://covert.mypressonline.com

 

Fri, 01/27/2012 - 14:53 | 2103342 Clowns on Acid
Clowns on Acid's picture

Hey Bruce - know where one can buy new Dmark call options ? Y'know...what price the USD / DMK will be upon Germany's exit from Euro....

Fri, 01/27/2012 - 14:53 | 2103339 847328_3527
847328_3527's picture

$500 is most likely just the beginning. With trillions needed for banks and sovereigns, this Half trillion is merely the initial installment payment to be followed by much more "funding."

Fri, 01/27/2012 - 14:40 | 2103269 sangell
sangell's picture

If Ackermann was not 'confident' would Maria Bartoromo have interviewed him?

Fri, 01/27/2012 - 13:46 | 2102973 bank guy in Brussels
bank guy in Brussels's picture

An Ackermann predecessor, Alfred Herrhausen, at that time head of Deutsche Bank, was killed by a car bomb in Frankfurt on 30 November 1989.

In another interview a couple of years ago, Josef Ackermann was asked about a possible 'debt jubilee' of haircuts to wipe out a lot of the bad debt in Europe, and Ackermann responded by 'joking' that if he came out publicly in favour of such debt write-offs, he might suffer the same fate as Herrhausen.

Fri, 01/27/2012 - 16:44 | 2103747 anonnn
anonnn's picture

 ..." he [Herrhausen] was the first prominent western banker to propose publicly, two years ago " that the debt crisis in the Third World could not be solved without a partial waiver of claims by the western creditor Banks. This was also clear at the time to most other heads of banks, but they would have preferred to keep it to themselves a while longer.

Herrhausen supported the strategy of debt reduction, as posed to refinancing ("fresh money"), strongly and constantly. His derailed proposal was published in the German financial newspaper HairdeIsbiart on June 6th, 1989 and repeated in a presentation to the annual meeting of the World Bank and International Monetary Fund in Washington on September 25, 1989. In the latter he remarked: "Mr. Reed, speaking for Citi-bank, has said they are a "New money" bank. I can tell you that the Deutsche Bank is a "debt reduction bank". ln the same speech, he pointed out that a major obstacle to his proposed debt reduction strategy is that Japanese and American banks would find it more difficult than their European counterparts to compensate partially for their losses through tax adjustments."...

see http://www.prouty.org/letter7.html

Fri, 01/27/2012 - 13:42 | 2102946 lynnybee
lynnybee's picture

yup, it's great to hear the voice behind "the man ",  i'm subscribed !    keep those videos coming .....please ? 

Fri, 01/27/2012 - 13:38 | 2102928 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Goldilocks ...

The film is probably more apropos of the behind the scenes action at Davos ...

The realization is that in the long run, we will all be on the receiving end ...

What these guys say and what they do are two different things. Painting a positive picture is in the job description.

By June, the S&P breaks 1400 at this rate ... not saying it's right, has any moral or ethical connection to reality, but it is what it is.

Fri, 01/27/2012 - 13:36 | 2102918 earnyermoney
earnyermoney's picture

I thought you'd have video of The Bernank's balls in a vice.

Fri, 01/27/2012 - 13:30 | 2102902 Clowns on Acid
Clowns on Acid's picture

Great Bruce - Exactly...if 500B euro...why not 1Trillion? If that is all what it takes to "stabilize" the Euro markets ...why hasn't this been done throughout history?

Oh yeh...thats right ..it has...Argentina, Brazil in the 70s, 80s...and in the western world Germany and the Weimar Republic. Hey we all know how that worked out....death and destruction.

But this time it will be different because we have all these feckin geniuses in Davos figuring it all out.

 

Fri, 01/27/2012 - 13:22 | 2102868 Rainman
Rainman's picture

Ackermann better hope his team of brainiacs can run the Euro casino better than their Vegas casino.  Cosmopolitan is profit-challenged. These banksters don't know what they are doing and there's no escape option but to sit it out.

http://dealbook.nytimes.com/2011/04/18/deutsche-banks-4-billion-las-vegas-bet-3/

 

Fri, 01/27/2012 - 13:34 | 2102914 LawsofPhysics
LawsofPhysics's picture

I agree, remmeber when Vegas actually made money and wasn't simply propped up by junk bonds and insolvent banks.  Hey wait, I am starting to see a trend here.  Where is the Mafia?  Where are the animal spirits?

Fri, 01/27/2012 - 17:02 | 2103835 Dan Conway
Dan Conway's picture

Wall Street bankers make the mafia look like a bunch of boy scouts.  Al Capone said that a man with a suitcase (bankers and lawyers) can steal more than a hundred men with tommy guns.  Look at the german banks trying to take over Greece.  Why did the German bankers lend to a country with no ability to pay it back?  So they could take it!

Fri, 01/27/2012 - 13:19 | 2102859 lizzy36
lizzy36's picture

Ackermann was lying through his perfect teeth both in 2011 and today.

Remember Hank Paulson saying publically in July of 2008 that the US economy was resilient and he thought the US was through the worst of the down turn. All the while privately he was working on his "Break the Glass" plan while meeting with HF's and Goldman explaining exactly how bad things were and what his plans were.

Seriously, these dudes put the CON in confidence. The thing  is 99% of people WANT to believe in the CON. That is why it has been so effective in the past.

Fri, 01/27/2012 - 13:06 | 2102803 LetThemEatRand
LetThemEatRand's picture

Douche Ba[g]nk.

Fri, 01/27/2012 - 13:06 | 2102802 NEOSERF
NEOSERF's picture

Draghi at his heart is a Keynesian and an Italian...he won't let Italy go down, no matter what Germany says...

Fri, 01/27/2012 - 13:03 | 2102784 Eireann go Brach
Eireann go Brach's picture

Great reporting Bruce! I wonder if one of those guys gets to bang Maria over there in Davos? Maria looks like she could suck the chrome of a door knob!

Fri, 01/27/2012 - 13:01 | 2102773 LawsofPhysics
LawsofPhysics's picture

I agree, solvency is one issue.  When the PIIGS debt will be written off (and it will eventually) and who will own what is the other.  The "back room" meetings is where this will all be determined, all the "news" is simply to keep the sheep calm.

Fri, 01/27/2012 - 12:58 | 2102763 The Alarmist
The Alarmist's picture

I remember the first time I heard Ackermann speaking in German ... He was speaking in that sing-song Schweizer-Deutsch, moving his head from left to right and then back again, and all the while blinking constantly. I thought I must be watching a mechanical coo coo bird.

Fri, 01/27/2012 - 13:01 | 2102776 digitlman
digitlman's picture

or Stevie Wonder.

Fri, 01/27/2012 - 12:57 | 2102755 the grateful un...
the grateful unemployed's picture

he's right in a perverse way, its a solvency problem not a liquidity problem. this is typical CNBC bs. the guy who polishes the company logo is still coming to work, we think everything is okay.

Fri, 01/27/2012 - 12:42 | 2102726 Gene Parmesan
Gene Parmesan's picture

It's good to hear the voice of the man behind the words.

Fri, 01/27/2012 - 13:18 | 2102847 Bruce Krasting
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Stay tuned. Business Insider says no voice overs. So next time I'll be on camera.....

Sat, 01/28/2012 - 22:43 | 2106443 Zer0head
Zer0head's picture

Business Insider?

 

Now if your were to refer to the  National Enquirer online, then that would have some cred

Fri, 01/27/2012 - 16:03 | 2103599 margaris
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Bruce Krasting on youtube. I love it! Subscribed!

Fri, 01/27/2012 - 14:00 | 2103059 Manipulism
Manipulism's picture

When you write Deutch I will write Amercan.

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