How Can You Raise One Trillion When Even 5 Billion Auctions Fail!?!

Phoenix Capital Research's picture

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Element's picture

The European Financial Stability Facility is putting off the 10-year issue “due to market conditions,” according to Luxembourg-based spokesman Christof Roche. The fund may wait for the outcome of the Nov. 3-4 Group of 20 summit in Cannes, France before selling the bonds, according to a person with knowledge of the matter.

So the EFSF is supposedly going to raise 1 trillion Euros… in an environment in which it struggles to even stage a five billion Euro bond offering?  Give me a break.



An unbeliever!  ... kill the heritic!

You need to read-up on your MMT ... it can do miracles ... it's unconstrained by leverage, or reality ... JUST BELIEVE ... and ye shall be healed! ... so sayeth the Benocoptier.

canuck's picture

Hi Mr Summers,


Could you find articles to link to from other sources than FT? Some of us just don't feel like going to the trouble of registering or subscribing to FT. Nothing against Martin Wolf and Gillian Tett of course.

CPL's picture

Read the google cached version.  Or just get the gCache plugin for ff or chrome.

philipat's picture

If the Eurozone won't bail itself out when it has the financial ability to do so, why should the IMF do it with OPM? As Cameron said, the role of the IMF is to assist individual countries in financial difficuly NOT to rescue a currency experiment. You broke it? It's yours!!

To answer the question, leverage upon leverage to address the problem of too much leverage in the EU Banking system is the only "Answer" because the hard working Germans are not about to allow Merkel to piss even more of their money into the Greek pisspot.

I can't understand why Gold isn't going through the roof, other than that it is being manipulated by the CB's just so the Chinese don't start getting funny ideas?

Buck Johnson's picture

Spot on, spot on.  Also as a few articles on the site have said, the G20 countries are reticent or just plain not wanting to fund the EFSF.  So who in gods name is going to buy these bonds, private banks and institutions?  No way, they saw what is happening or may happen to the banks that agreed to the 20% in europe just for the EU to turn around and say now it will be 50% voluntary (so as they hope it wont cause an adverse effect and a run on CDS's).  If your where a hedgefund or a mutual fund or whatever, would you invest in this investment vehicle that was described.  This is what happens when an organization starts to crumble from the inside, eventually we will see a mad dash to the exit with whatever treasure the countries and institutions can take from the EU, ECB.  It's not like they are going to pay it back anyway. 

surf0766's picture

That is really what I do not understand. Who is going to buy this crap?

CPL's picture

You are.  Doesn't matter what country you are from, you will pay...then pay some more.

New_Meat's picture

don't cha' know. - Ned

AldousHuxley's picture

You raise it by selling it to yourself. Treasury sells bonds to Banksters who flips it over to the central banksters who holds  it on par value forever.


That's how US does it anyways.


Watch out for Greek state assets for sale on Groupon, Ebay, Craigslist....

surf0766's picture

Well it seems to be working out for us..

Zero Govt's picture

"..the EFSF is going to raise 1 trillion Euros… in an environment it struggles to even stage a 5 billion Euro offering?  Give me a break."

We all need a break. Yep, detach yourself from reality and think like a Eurocrat 

falak pema's picture

we are moving to one fake fiat currency and one global statist resolution of mega debt. Markets will become irrelevant, as they are today totally becoming a manipulated thing for the essential moves. At macro level.

Captialism, having lost its ethics and its compass, is now in total limbo. At least the market version. Not the Oligarchy version which doesnt need markets as its peer to peer Oligarchy plays.

israhole's picture

EFSF won't see weak demand, they own the printing presses, just like the Fed buys treasuries.  It's currencies that will have less demand.

e2thex's picture

"How can You Raise One Trillion When Even 5 Billion Auctions Fail?"

There's a simple but eloquent solution. You take a scissors and you ever so carefully cut up each Euro Bill into one hundred pieces. This saves you on those related costs arising from printing presses, ink and repairs.

Hey,  what's your next fucking question?

CompassionateFascist's picture

There aren't enough scissors.

IQ 145's picture

"How can you---etc" The same way a magician pulls a rabbit out of a hat; mis-direct the audience's attention and cheat.

HD's picture

That's ridiculous - that will never work in the real world...oh look a bunny!