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Europe Opens $80 Trillion Shadow Banking Pandora's Box: Will Seek To Collapse Repo "Collateral Chains"

Tyler Durden's picture




 

In what may be the most important story of the day, or maybe year, for a world in which there already is an $11 trillion shortfall in high-quality collateral (and declining every day courtesy of Ben's monetization of Treasury paper) so needed to support the deposit-free liability structures of the shadow banking system (as most recently explained here), Bloomberg has just reported that Europe may begin a crackdown on that most important credit money conduit: the $80 trillion+ global shadow banking system, by effectively collapsing collateral chains, and by making wanton asset rehypothecation a thing of the past, permitted only with express prior permission, which obviously will never come: who in their right mind would allow a bank to repledge an asset which may be lost as part of the counterparty carnage should said bank pull a Lehman. The result of this, should it be taken to completion, would be pervasive liquidations as countless collateral chain margin calls spread, counterparty risk soars all over again, and as the scramble to obtain the true underlying assets finally begins.

From Bloomberg:

Banks and brokers face a clampdown on using assets they hold for clients as collateral for their own trades as part of European Union moves to bolster market stability and rein in shadow banking.

 

The European Commission is weighing whether firms should have to obtain formal consent from their clients before being allowed to reuse assets to back other trades, according to a document obtained by Bloomberg News. The consent would be enshrined in a “contractual agreement” between the parties.

 

The handing over of collateral is an integral part of repurchase agreements, or repos -- one of the activities under review by global regulators as part of their efforts to regulate shadow banking. The reuse of clients’ assets poses a potential threat to financial stability should one of a chain of firms that handled the securities go bankrupt, according to the document prepared by commission officials and dated May 15. Uncertainty about who holds an asset can fuel panic in times of market stress, according to the paper.

 

“Complex” chains of collateral can make it difficult for investors to “identify who owns what, where risk is concentrated and who is exposed to whom,” according to the document. “This has consequences for transparency and financial stability.”

 

Under the plans being weighed by the commission, banks and brokers holding securities for clients wouldn’t be allowed to reuse the assets for trading on their own account -- speculation on the markets aimed solely at boosting their own revenues, according to the document.

 

...

 

The Financial Stability Board has estimated that the global shadow-banking system was worth $67 trillion in 2011, with EU-based activities accounting for about $31 trillion.

Here's the kicker: collateral chains collapse on their own when confidence and faith in the financial system is evapoarting. This is usually manifested in soaring variation margin, and demand for delivery of collateral (which having been pledged at 10 or more different places just doesn't actually exist).

In other words, the last thing Europe needs is to force the aftereffect of a plunge in systemic confidence to be imposed upon the market participants! And yet, it is doing just that.

And for a comparable virtualization of repo pathways in the US, here is a chart showing the key relationships as of 2009. For the modern iteration, just update $30 trillion with $80 trillion (including custodial "assets" State Street, BoNY and JPM). This is $80 trillion in custodial credit money created via repo. Just in the US.

In other words, just as we have been warning for the past four years, Europe may pull the switch on its own electric chair. Among others, read:

Finally, read Kyle Bass' own thoughts on the matter: Presenting Kyle Bass' Analysis On Shortening Collateral Chains; Or The Gradual Evisceration Of Shadow Banking

Hayman Capital Letter Dec 14

 

 

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Fri, 05/24/2013 - 11:52 | 3596046 tip e. canoe
tip e. canoe's picture

fyi, that response of yours just inspired me to stay home tomorrow and plant some heirloom maize in the garden instead of going into the city to join forces with folks that wish death on anyone that doesn't agree with them.

thanks for saving my time so that it can be put into more productive use.    

see you on the other side...you'll find me laying in the corn patch...i'll save an ear for ya...

Fri, 05/24/2013 - 12:08 | 3596067 The Thunder Child
The Thunder Child's picture

Nice try, anyone with half a brain can see your twisting my words. My comment was directed at his cyncism, negativity and apathetic response. Go march or don't that's your decision as long as you are aware that there is a march, if you agree with what Monsanto is doing that is your choice and I will wish you no harm, this is a non violent protest but you can be sure that I will be voicing my opinion.

I have my heirloom seeds sprouted and ready to go just a bit cold still up here in Canada so they will go out next weekend (May 24 is the traditional plant date up here). Sooo looking forward to the harvest this year!

 

Fri, 05/24/2013 - 12:19 | 3596125 tip e. canoe
tip e. canoe's picture

perhaps, though not any more than how you twisted weaning oneself off of corn & soy (no easy feat for any modern human) as being cynical, negative & apathetic and equating not choosing to go out and shout at the devil as a tacit agreement of their existence.   

with that said, have fun stormin the castle!   sorry can't make it, been there, done that too many times with too little result...

sprouts will be there when you get home.   the period between full and new moon is best time for transplanting anyhow, yes?

 

Fri, 05/24/2013 - 12:36 | 3596145 The Thunder Child
The Thunder Child's picture

I never twisted any words in regards to weaning oneself off of corn & soy I have done this and recommend it to everyone. I tell all my friends and family to stopy buying products with Soy and HFCS. My comment was glaringly and 100% directed at his first sentance

In the US, it's way, way too late. GMO corn and soy are practically the entire market these days.

This weekend is optimal with the full moon but a bit on the cold side for sprouts, I'll be watching the long term forecast and probably make a decision over the weekend.

Fri, 05/24/2013 - 12:41 | 3596173 tip e. canoe
tip e. canoe's picture

the 2nd sentence is a fact.   the 1st an opinion.   you seem to disagree.   so be it. 

it's the stretch between there and "you might as well just lie down and die" to which i am referring.   if you ever wondered why folks bristle against progressives (choose your own connotation), it's in that stretch that you'll find your answer.    i like to call it the AlGory Syndrome, but i'm strange like that.

Fri, 05/24/2013 - 12:47 | 3596182 The Thunder Child
The Thunder Child's picture

It's pretty funny that you turned "you might as well just lie down and die" into me wishing death on all those that disagree. It speaks volumes to who you are...this isn't progressive this is a fight against a company that wants to own the entire food supply.

If they get their wishes in 10 - 20 years your organic graden will become their property through cross pollen contimation, you will be ordered to till it in or be arrested. Planting heirloom and growing your own is a start but it will not stop Monsanto unless you stand up and say no more.

Fri, 05/24/2013 - 13:21 | 3596314 tip e. canoe
tip e. canoe's picture

i've already acknowledged my initial twisted stretch in perception upthread, dear little Loki-san.   'tis a shame you are fiercely resistant against doing the same, but 'tis exactly the reason why i choose to hang with the plants tomorrow.

by the way, there's an easy non-violent way to stop Monsanto dead in its tracks.   it's called perennial food systems.     one seed, multiple harvests, permanent agriculture.

no shouting though, so you'll have to find another way to release all that anger.    may i suggest nerf wars?

Fri, 05/24/2013 - 13:31 | 3596334 Seer
Seer's picture

Yes, apply your energy toward CREATING rather than DESTROYING.  Bad systems WILL fail, why spend precious energy pushing them over the cliff when they're heading that way already?

Monsanto can no more take over the world's food supplies than Communism could have taken over all governing forces of the world. BAD SYSTEMS FAIL.

"Anger" can be released through hard manual work.  That garden isn't self-planting!

Asking Monsanto to change is ridiculous.  Either make them less powerful by reducing your dependency on them, OR, take on PHYSICAL actions against them (not encouraged by myself).  I'm basically a pacifist (though don't test me on this on my property), so I opt for making Monsanto less present in my life.  One can, instead of burning up a bunch of fuel driving around to all the protests, apply that $$s to a local farmer who is busy CREATING a non-Monsanto world.  Really, if all the "good" farmers dropped farming and picked up protesting we'd all be left with food from the Monsanto world.  People!  THINK!

Fri, 05/24/2013 - 13:58 | 3596404 The Thunder Child
The Thunder Child's picture

I have a home garden, I buy organic at farmers markets but it doesn't stop there. Monsanto wants to own the food supply through patents and destroy organic gardeneres in the process.

Farmers will grow what people will by so yes it does make a difference but the majority of farms today are owned by conglomerates like Kraft and they couldn't care less what they use to put in their products for market. Home gardening and organic farmers will slow them down but it will not stop them. It is up to us to stop this and protesting is in by no way 'DESTROYING' anything.

Fri, 05/24/2013 - 14:27 | 3596501 tip e. canoe
tip e. canoe's picture

I have a home garden, I buy organic at farmers markets but it doesn't stop there. 

agreed, that's just barely scratching the surface.   we just have a disagreement on which path is more productive.    no doubt that getting out on the streets does serve a purpose in raising the level of public consciousness of the issue.   but let's say you could make GMO disappear tomorrow, would that really solve the problem on how to feed 7 billion people?   seriously?   how many civilizations have perished from their once fertile plains turning into arid desert through the practice of annual agriculture & monocropping?    ever hear of the Dust Bowl?

your choice : chase golems or strike the root.    continue to fight between Man or begin to work with Nature (and growing an annual garden is actually working against nature, btw, but that's a whole 'nother discussion).

Fri, 05/24/2013 - 14:51 | 3596608 The Thunder Child
The Thunder Child's picture

As I stated before an elsewhere in this post, if Monsanto is allowed to continue unchecked they will own yours and everyones elses organic garden through cross contamination. They will make you pay, till it under or face arrest.

That is their goal to own all food production, owning an organic garden is no good if you can not stand up and protect it!

Fri, 05/24/2013 - 16:58 | 3596993 tip e. canoe
tip e. canoe's picture

let em do it.   meanwhile i'll harvest some bamboo shoots from the hedgerow, some clover from the pasture, some lillies from the flower bed and some wild garlic & mushrooms from the forest, plus some asparagus from 5 year old plants and make myself a crazy tasty nutritious salad.

once you realize that the plant world is much too vast for any collection of humans to control, all this fear mongering seems rather silly.   if one were to take a very contrarian POV, Monsanto is doing the planet a service by making the crops that are most destructive to the earth's ecosystems persona non eata.

Fri, 05/24/2013 - 14:36 | 3596557 WillyGroper
WillyGroper's picture

They've tried to criminalize our organic coop here with onerous regulation but the blowback (state level) bit back.

Awareness-----it's what's for dinner.

Fri, 05/24/2013 - 16:12 | 3596877 TheGardener
TheGardener's picture

Yes, I have to agree with you , they are trying to destroy me! The seeds I got from mountain farmers in Central America
are not on any list of approved varieties, so I can not
traffic my produce or the seeds thereof which I harvest too.

One day a drone will spot my frost resistant crop and I`ll get busted !

Sat, 05/25/2013 - 07:53 | 3598117 drdolittle
drdolittle's picture

nerf wars are fun too though. And, paintall kicks ass!

Fri, 05/24/2013 - 13:47 | 3596380 Professorlocknload
Professorlocknload's picture

Don't have a dog in this fight, other than patent law (protection racket?) should be abolished, but;

Maybe the fight should be directed at the enabler and protector of the company, .Gov, rather than some logo?

Lopping off one tentacle doesn't kill the octopus. Let alone the entire tangle, or whatever octopi come in.

 

 

 

Fri, 05/24/2013 - 13:52 | 3596392 The Thunder Child
The Thunder Child's picture

The companies own the government at this point ie fascism

Fri, 05/24/2013 - 15:29 | 3596739 FreeNewEnergy
FreeNewEnergy's picture

Call me radical, but I never got with the non-violence program. If you all were up to trashing some GMO cornfields and kicking some Blackwater azz, I might be inclined to come along, but as far as non-violent protests go, mine ended with an ice cream cone and a leap over the barricades at SU in 1972.

These little aprties are great for making friends, but you also make enemies and get on their lists. I prefer to engage in my own non-violent protests quietly, by planting my own plot of vegetables from heirloom seeds and educating those around me and those who ask.

The very best way to destroy Monstanto is by market force. Every back (and front) yard should have an organic garden, and, if the local officials don't like it, then they can haul all of the TAX-PAYING PROPERTY OWNERS OFF TO JAIL.

Maybe when the next school tax referendum is turned down, they'll think twice. Grow local. Stay local. Win local.

Fri, 05/24/2013 - 13:21 | 3596312 Seer
Seer's picture

[deleted]

Fri, 05/24/2013 - 18:37 | 3597224 MeelionDollerBogus
MeelionDollerBogus's picture

indeed. Growing your own is the best protest you can do - and keeping it safe from tampering

Fri, 05/24/2013 - 13:06 | 3596239 TNTARG
TNTARG's picture
PressTV: Argentina activists rally against US Monsanto expansion in Latin America

http://occupy-monsanto.com/presstv-argentina-activists-rally-against-us-...

Fotos de la Marcha en Buenos Aires Argentina

http://occupy-monsanto.com/page/6/

 

On Feb. 22, the Labor Court in Córdoba ordered “to suspend the effects of the ordinance issued by said municipality (Malvinas Argentinas), number 821/2013, authorizing to Monsanto Argentina SAIC a building permit for the first phase of a seed-drying facility.” Although so far construction has stopped, it is likely that the municipality will appeal.

 

 

Fri, 05/24/2013 - 10:55 | 3595863 yogibear
yogibear's picture

Derivatives seems huge. A place where enormous damage can be triggered.

Fri, 05/24/2013 - 10:59 | 3595876 TheEdelman
TheEdelman's picture

nahhhh

Fri, 05/24/2013 - 13:32 | 3596336 Seer
Seer's picture

It's only a scratch!

Fri, 05/24/2013 - 12:55 | 3596216 Professorlocknload
Professorlocknload's picture

I figure this could be a probe of the derivatives labyrinth to test it's immensity/resolve. Might also serve as a warning shot to back it down a notch, or at least temper it's policy countering activities.

Hard to bluff when one is consistently called.

They must know it is bigger than they are at this point. But they have to at least go through the motions to appease constituents, or sell protection.

Oh, well. Complex systems...one moving part eventually flies out of formation, destroying the whole.

Curious though, how Ben's predecessor will absorb a Quadrillion bucks worth of this stuff when that part departs.

 

Fri, 05/24/2013 - 10:55 | 3595864 zorba THE GREEK
zorba THE GREEK's picture

I can't wait for this to expose a vault full of IOUs for gold at Fort Knox. 

Fri, 05/24/2013 - 10:56 | 3595865 kensdad
kensdad's picture

Never happen. At least not as long as Chuck Schumer is alive.  He is the Congressman-Senator who looks out for the banks best interest.  Everyday of every week of every month of every year.

Fri, 05/24/2013 - 11:01 | 3595885 rubearish10
rubearish10's picture

Correct! it would be a self inflicted destruction of the massive plot to sustain the great Ponzi. No way.

Fri, 05/24/2013 - 15:34 | 3596753 FreeNewEnergy
FreeNewEnergy's picture

You mean our fat-assed senator from Isra... New York? Tell me it ain't so, Joe!

Fri, 05/24/2013 - 10:56 | 3595867 Thought Processor
Thought Processor's picture

And the unwind begins.  Something big definitely coming down the pike.

Fri, 05/24/2013 - 11:02 | 3595888 Real Estate Geek
Real Estate Geek's picture

Now I am become death, the destroyer of worlds.

Fri, 05/24/2013 - 11:04 | 3595894 Bearwagon
Bearwagon's picture

Oppenheimer's words at Trinity site. +1

Fri, 05/24/2013 - 11:27 | 3595983 WAMO556
WAMO556's picture

Actually, Robert Oppenheimer, said that now famous line in an interview about the Trinity nuclear explosion, first broadcast as part of the television documentary.

- "The Decision to Drop the Bomb" (1965), produced by Fred Freed, NBC White Paper;

Oppenheimer is quoting from the 1944 Vivekananda - Isherwood translation of the baghavid Gita.

This was 20 years after the Trinity Test!

Oppenheimer was feeling his mortal choil and was waxing poetic.

There are no recordings of his comments from during or just after the trinity test, also... His notes are still classified and only viewable with a security clearance!

Fri, 05/24/2013 - 11:37 | 3595997 Bearwagon
Bearwagon's picture

Not to disagree with you, but my source says otherwise: Robert Jungk, "Heller als tausend Sonnen", 1956

Fri, 05/24/2013 - 11:49 | 3596055 Widowmaker
Widowmaker's picture

More like up your pike.

Don't worry you don't matter.  All in a day's "work" for the fuckups of finance.

Fri, 05/24/2013 - 13:43 | 3596363 Seer
Seer's picture

I suspect that it started a while ago.  It's kind of like the Iraq "war" in which Bush gave Saddam 48hrs to turn himself in before the invasion when in fact at the very time that Bush was uttering those words there were already troops on the ground inside of Iraq (http://secondgulfwar.blogspot.com/2010/10/military-aspects-before-invasi...): point being that tracks are put down well in advance of any announced "plans."

Fri, 05/24/2013 - 10:57 | 3595869 TheEdelman
TheEdelman's picture

speaking of collapses. how about that infrastructure?  we should probably get use to more stories like these.

http://www.dailymail.co.uk/news/article-2330069/BREAKING-NEWS-Bridge-collapses-Washington-state-leaving-cars-filled-passengers-river.html 

Fri, 05/24/2013 - 11:00 | 3595879 Bastiat
Bastiat's picture

Physics: how barbaric!

Fri, 05/24/2013 - 11:49 | 3596053 sschu
sschu's picture

The bridge was hit by an oversized truck.  So while our infrastructure is rusting, this is not necessarily an example of such.

The problem is our replacement cost is so high for these items as the government has taken over the management of these type of projects.  Cost overruns, prevailing wages, exorbitant administration costs and needless engineering studies are the problem.

Seattle is spending $3.5 BILLION to dig a two mile tunnel under the city.  Really.

sschu

Fri, 05/24/2013 - 12:10 | 3596108 thisandthat
thisandthat's picture

The estimated final cost for the 5.6km Marão tunnel, in Portugal, was 456mil€ at the end of the 30 years concession (350mil initial), but then it run into underground water streams and it's furiously going nowhere fast, atm.

Fri, 05/24/2013 - 12:24 | 3596141 Bastiat
Bastiat's picture

Yes it was hit by a truck but this bridge was surveyed and classified as in dangerous condition for many many years.

Fri, 05/24/2013 - 13:07 | 3596255 insanelysane
insanelysane's picture

Yes the infrastructure is crumbling, the infrastructure is crumbling, the infrastructure is crumbling.

Then why do we pay the useless fucks in this country long term unemployment benefits and welfare to sit home and do nothing???  

Shouldn't they be employed fixing the crumbling infrastructure, 2 birds, 1 stone?

Fri, 05/24/2013 - 14:34 | 3596548 walküre
walküre's picture

How much did we spend on the 2,3 or more fucking wars in the last 10 years?

Enough said.

Fri, 05/24/2013 - 17:20 | 3597067 Herd Redirectio...
Herd Redirection Committee's picture

10 years ago there was a case to be made, MAYBE, for money not to be spent on large scale infrastructure projects.

But now?  The economy needs the 'stimulus',  the economy needs functioning infrastructure.  So why not?  I guess the ruling interests don't profit as much (on a margin $ for $ basis) from infrastructure spending as they do from defense spending!

Fri, 05/24/2013 - 10:57 | 3595870 PaperBear
PaperBear's picture

I've got my physical silver so I'll just st back and watch the fireworks.

Fri, 05/24/2013 - 10:57 | 3595871 RougeUnderwriter
RougeUnderwriter's picture

What's a little leverage between friends?? :-)

Fri, 05/24/2013 - 10:58 | 3595872 LawsofPhysics
LawsofPhysics's picture

Over 700 trillion in CDS and other derivative "collateral chains".  Yeah, collapse that pile of paper promises!!!!  Would certainly make for some awesome fireworks for this 4th of july!!

Fucking bring it!!!

Fri, 05/24/2013 - 11:25 | 3595969 RafterManFMJ
RafterManFMJ's picture

I hope they don't collapse it; I just got my shadow banking statement and I'm somehow on the hook for 900 billion.

I don't have that kind of cash on hand.

Fri, 05/24/2013 - 11:31 | 3595992 LawsofPhysics
LawsofPhysics's picture

Odd, I just looked at my statement I have 900 billion dollar credit (remember in the shadow banking/mark-to-fantasy world, your statement/collateral/assets is whatever you want it to be).

Fri, 05/24/2013 - 13:52 | 3596390 Seer
Seer's picture

Remind me to never take any of your investment advice! </sarc> BTW - That was funny, though I suspect that it's a reality for far more than we know.

Fri, 05/24/2013 - 11:30 | 3595991 yrbmegr
yrbmegr's picture

It should be possible to come up with a Richter scale for financial disruptions.  I find it interesting that the 2008 collapse apparently destroyed $6 trillion in shadow banking assets.  After the collapse, we had about $3 trillion in stimulus and loan guarantees from the fed and the U.S. government, followed by QE of $85 billion/month now for, what, 36 months?  Total of...$6 trillion.  Is that a thing?

Fri, 05/24/2013 - 13:54 | 3596397 Seer
Seer's picture

We're changing the game from Ponzi to Whack-a-Mole! (I say this while thinking of Sudden Debt's avatar!)

Fri, 05/24/2013 - 18:29 | 3597213 MeelionDollerBogus
MeelionDollerBogus's picture

I vote we call it

a)   The Bernanktor

b)   The Krugtor

c)   The KY scale (cuz yer gonna need some)

Fri, 05/24/2013 - 10:58 | 3595873 Frastric
Frastric's picture

Seriously the EU cannot be that self-destructive, so who or what is pulling the strings here? The Illuminati, Rothschild's or that small group of bankers seeking to horde all of the world's wealth into their pockets?

Fri, 05/24/2013 - 11:17 | 3595938 insanelysane
insanelysane's picture

It isn't self destruction, it is self preservation.

2008 Economy collapses and banks must be bailed out because of all of the derivative bullshit.

2008-2013 Politicians tell sheeple that they are fixing everything and not to worry.

2008-2013 Banks initially slow derivative bullshit but then realize politicians like getting paid so they start to ramp up.

2014 or sooner  Economy collapses and banks must be bailed out again.  Citizens revolt.  Fool me once....

Fri, 05/24/2013 - 14:00 | 3596412 Seer
Seer's picture

"It isn't self destruction, it is self preservation."

Preservation of the non-preservable at that!

It's predicated on a Ponzi.  It was ALWAYS going to fail!  It's like riding on a train that has a bomb on board and hoping that if we refuel the train we can keep going on so that we "out-distance" ourselves from the bomb- and the tracks lead to the edge of the cliff...  Nowhere is there a discussion on whether we should abandon the fucking train! ("train" in this case is the failed premise of basing everything on perpetual growth on a finite planet)

Fri, 05/24/2013 - 11:00 | 3595878 LawsofPhysics
LawsofPhysics's picture

Do these fuckers mind if we see that "collateral"?  I think people forget that we have had 30+ years of mark to fantasy accounting.  morons.

Fri, 05/24/2013 - 14:03 | 3596426 Seer
Seer's picture

No peaking, you pervert! </sarc>

Can stink (risk) really be rid of?

Turd juggling (not affiliated with Turd Ferguson) is one thing, but when turd-generation turns diarrhea-etic then things become a bit messy.

Fri, 05/24/2013 - 11:03 | 3595883 Mercury
Mercury's picture

The European Commission is weighing whether firms should have to obtain formal consent from their clients before being allowed to reuse assets to back other trades, according to a document obtained by Bloomberg News.

 

Isn't that already covered in standard Rehypothecation Agreements?

Fri, 05/24/2013 - 11:09 | 3595913 disabledvet
disabledvet's picture

Well I'm looking at article c subset omega and it seems to imply all regulatory frameworks henceforth given over to pre requisite tabulation are to be made clean.

Fri, 05/24/2013 - 11:16 | 3595933 Mercury
Mercury's picture

And why would any central bank hoping to stoke inflation acquiesce to a scheme like this which would be deflationary. Isn’t inflation more or less treading water because shadow banking liabilities have been unwinding (on their own) as activist CBs pump money into the system?

Fri, 05/24/2013 - 14:08 | 3596439 Seer
Seer's picture

All those on-board are accounted for and have been accumulating* "corrective numbers."  The small fish are being told to leave the pond or become food.

* Hand-fed by CBs.  The plan/agreement was inked a long time ago.

Fri, 05/24/2013 - 11:20 | 3595946 Widowmaker
Widowmaker's picture

Nope, buyer beware.

Pensions and 401k's are totally unaware, which is the racket. Does anyone using a fraud faggot for money management know what risk is?

Fuck no, but Buttfuck Ben Shalom will cover the crimes.

Fri, 05/24/2013 - 11:01 | 3595884 Wakanda
Wakanda's picture

Year right.  I'll believe it when I see it.

Fri, 05/24/2013 - 11:01 | 3595887 Bearwagon
Bearwagon's picture

Maybe this old thing from ZH could still be of interest: "The $30 trillion "problem" at the heart of shadow banking"  (Scroll down the page to the copy of said ZH-article)

http://www.hobinrood.info/index.php/paul-feuermanns-wirtschaftskommentar...

Fri, 05/24/2013 - 11:02 | 3595889 Fuh Querada
Fuh Querada's picture

"The program Smith is out of control"

Fri, 05/24/2013 - 14:11 | 3596455 Seer
Seer's picture

CCR, um... er... rocks!  (can't forget my double-take when I discovered that they originated from SF).

Fri, 05/24/2013 - 11:03 | 3595891 TimmyM
TimmyM's picture

This is why Gold needs to be revalued upward by orders of magnitude. It is the Last collateral standing. And can be the savior of the banking system.

Fri, 05/24/2013 - 11:08 | 3595910 Quinvarius
Quinvarius's picture

They won't figure that out.  They will get run over by it after fruitlessly attempting to base their financial system foundation on absolutely everything but the only thing that has ever worked, gold.

Fri, 05/24/2013 - 11:26 | 3595973 TeamDepends
TeamDepends's picture

Amen!  We particularly enjoyed the "orders of magnitude" part.

Fri, 05/24/2013 - 11:03 | 3595892 viahj
viahj's picture

all we need is one large player to panic, then it all unwinds.... where is the pressure to be applied?

Fri, 05/24/2013 - 13:04 | 3596242 Spigot
Spigot's picture

+10^6 Or a few smaller fish who are more agile. The problem is those who unwind first CAN unwind, everyone else gets gutted. Who knows what the ratio is: those who can: those who can't. Let's call it 1:30 conservatively. So if 1-3% of these positions is unwound, then the remaining 97-99% go up in smoke.

Fri, 05/24/2013 - 14:14 | 3596471 Seer
Seer's picture

Not exactly what I had in mind when I coined "economies of scale in reverse," but...

Fri, 05/24/2013 - 15:50 | 3596799 Spigot
Spigot's picture

... but "whatever works" ... including a good sized garden, lead projectiles and a "store of value"... until the "collapsing" is completed.

Fri, 05/24/2013 - 11:04 | 3595895 The Invisible Foot
The Invisible Foot's picture

$80trillion Shadow banking ha! Try $1qudillion betting on the what the weather like will be next mouth.

Fri, 05/24/2013 - 11:06 | 3595901 Bay of Pigs
Bay of Pigs's picture

“Complex” chains of collateral can make it difficult for investors to “identify who owns what, where risk is concentrated and who is exposed to whom,” according to the document. “This has consequences for transparency and financial stability.”

In other words, they have no idea what is going on or what anything is worth. And there is no transparency or stability.

Fri, 05/24/2013 - 11:16 | 3595928 Widowmaker
Widowmaker's picture

Sure they do.  FASB 157 says its worth whatever you say it is.

Fri, 05/24/2013 - 11:18 | 3595944 Bay of Pigs
Bay of Pigs's picture

Yes, of course, Marked to Unicorn.

And that was over four years ago.

Fri, 05/24/2013 - 14:17 | 3596479 Seer
Seer's picture

I wonder whether they'll all just finally figure out that it's all one big cluster-fuck, toss their hands in the air and declare Jubilee.  Might be the only way to save their asses.  After all, most of the collateral is pretty much junk, stuff that isn't going to be desirable ever again (paradigm shift).

Fri, 05/24/2013 - 11:06 | 3595903 Atomizer
Atomizer's picture

Just parcel 11 small pieces of land, sell at 1 trillion per lot. Presto, out of debt! Finding a buyer may be somewhat difficult.

 

Remember: Location, location, location.

 

/sarc

Fri, 05/24/2013 - 14:19 | 3596489 Seer
Seer's picture

Easier is to just get to the point, take out the eraser (or use the Delete key).

Fri, 05/24/2013 - 11:07 | 3595906 aleph0
aleph0's picture

..."Europe may pull the switch on its own electric chair."...

Cyprus was obviously not enough.

 

 

Fri, 05/24/2013 - 11:10 | 3595916 Seasmoke
Seasmoke's picture

Dick Fuld approves this message.

Fri, 05/24/2013 - 11:15 | 3595923 Widowmaker
Widowmaker's picture

There are NO assets in this pig market - none.

The joke is all paper.  Nothing but more and more printed "confidence."

Fri, 05/24/2013 - 14:21 | 3596495 Seer
Seer's picture

But, but!  We all want more "confidence," right?  Or, are we unsure of that?

Fri, 05/24/2013 - 11:13 | 3595924 Quinvarius
Quinvarius's picture

They are pulling the plug.  And that is why stocks have been up since Cyprus.  They are up for the same reason AAPL went up after Jobs died and they started losing market share.  The bankers are getting out and getting short.  One last ramp in stocks to bring in some sheeple to take stocks off their hands on the way down.  One last smash in gold to make the sheeple fork it over.

Fri, 05/24/2013 - 11:21 | 3595955 LawsofPhysics
LawsofPhysics's picture

Please, there are non "markets".  If they are pulling the plug, will they be buying bonds?  All the matters is sovereign debt.  If the governments cannot fund their operations, game over.  please do tell...

Fri, 05/24/2013 - 11:47 | 3596045 Quinvarius
Quinvarius's picture

As you indicated there is no bond market.  Just a way to give free money to government.  But as far as dealing with the public and the economy, they will steal everything.

Fri, 05/24/2013 - 11:16 | 3595936 buzzsaw99
buzzsaw99's picture

corzined bitchez

Fri, 05/24/2013 - 11:17 | 3595940 Winston Churchill
Winston Churchill's picture

Totally off topic.

Does anyone know about US marines in' police actions' within the Republic of  South Africa.

Heard a very disturbing story from an ex marine about villages being Mai Lai'ed within the

last 18 months by US forces based there..He claimed he took part in one such action.

Would not put it past our Nobel peace prize winner.

Fri, 05/24/2013 - 11:30 | 3595994 RafterManFMJ
RafterManFMJ's picture

"Is there gold hidden in the village? Is there silver, gems? Is there food? Where is lord beric? Where did he go? How many men were with him? How many knights, how many bowmen? How many, how many, how many, how many, how many, how many? IS THERE GOLD IN THE VILLAGE? "

Fri, 05/24/2013 - 11:31 | 3595995 Non Passaran
Non Passaran's picture

WTF is "Mai Lai-ed"?
Why not simply "Dresdened", Mr Churchill?

Fri, 05/24/2013 - 12:19 | 3596127 RafterManFMJ
RafterManFMJ's picture

Ever wonder why the war criminals did not incinerate Berlin? Berlin was defended by 3 of these

Zoo flak tower

Fri, 05/24/2013 - 12:26 | 3596144 Winston Churchill
Winston Churchill's picture

Big difference looking into a childs eyes as you kill it., than droppping bombs from

20000 ft.The amorality is the same,the inhumanity is not.

Doesn't make sense, but we are animals, not algo's.

Fri, 05/24/2013 - 14:25 | 3596508 Seer
Seer's picture

So, bombs it is! (more hands in the pie) </sarc>

Fri, 05/24/2013 - 11:17 | 3595941 Lmo Mutton
Lmo Mutton's picture

"pull the switch on its own electric chair"
I sooo wanted to apply for that job.

I would even give up health care and union breaks. (Provided my golden parchete was compensated accordingly.)

Fri, 05/24/2013 - 11:19 | 3595945 Craxi
Craxi's picture

Krugman minted a coin for all of this. Move along.

Fri, 05/24/2013 - 11:19 | 3595947 OpTwoMistic
OpTwoMistic's picture

short EURO?

Fri, 05/24/2013 - 11:23 | 3595961 Bearwagon
Bearwagon's picture

Don't you remember?

http://www.zerohedge.com/news/2013-04-04/mario-draghi-responds-zero-hedg...

No plan B. Period! So be careful, be very careful ...

Fri, 05/24/2013 - 11:32 | 3595998 Cobra
Cobra's picture

Plan B? Phyzz, food, lead, fuel and tools... Among other things.

Fri, 05/24/2013 - 11:20 | 3595949 Cole Younger
Cole Younger's picture

Insane....one now has to wonder are the conspiracy nuts are right???New world oder and one world governance...Collapse the global system and someone / something comes to the rescue to save us all...scratching my head over this one...

Fri, 05/24/2013 - 14:32 | 3596539 Seer
Seer's picture

You misspelled "odor."

Of course all TPTB are trying to come to some agreement as to how to keep the barbarians from storming their gates.  Problem is they're all unwilling to sacrifice one of their own in order to do so (there's no assurance that the plan will work, so no one wants to offer themself up for sacrifice) - STALEMATE.  The game continues until it doesn't (and the day of reckoning is getting closer every passing day).  The game cannot be saved.  Any reformulation is STILL the Game.  Until we're all willing to question the premise of perpetual growth on a finite planet we'll forever be wondering why our systems continue to fail.

Fri, 05/24/2013 - 11:22 | 3595956 yrbmegr
yrbmegr's picture

Interesting.  It's kinda like watching the buildup to an earthquake.

Fri, 05/24/2013 - 11:24 | 3595967 AgShaman
AgShaman's picture

"Mr. Pump, I'd like you to meet Mr. Dump....this meeting will get started as soon as Miss Rehypothecator arrives....I think?"

Fri, 05/24/2013 - 11:34 | 3596005 Peterus
Peterus's picture

But what is being pumped?

And isn't there a fan somewhere between the two?

Fri, 05/24/2013 - 11:30 | 3595990 Divine Wind
Divine Wind's picture

 

 

Bullshit.

I wonder what the game is here.

Somewhere, TPTB have found a new way to get their cut.

Considering the sheer number of people / entities who are growing their coffers through rehypothecation (layers upon layers upon layers), I do not believe for one moment this is being done for the betterment of the banking and investment community. Not in this day and age and certainly not with that crowd.

Forgive my paranoia, but something is amiss with this plan.

Fri, 05/24/2013 - 11:45 | 3596035 Peterus
Peterus's picture

Maybe it's just preferable for the old way to end at this point?

There is a thick layer of disinformation and speculation over the fundamentals so I'd say even experts have extremely limited vision... but the fundametals are still there. Accounts may be forged, but one physical brick can only be in one place. Whatever schicanery goes, you can at best (worst?) trick people into burning thier savings and than capital. It seems standards of living actually started falling in the West from 1990, even with exceptional gains in techonology. There is a bottom somewhere in there. Maybe EU officials think that they just can't make it any longer and have their hand forced? Maybe they think they are prepared enough already and would rather lit the fuse before people realize too much?

This is unsustainable. It has to end at some point. I'd say TPTB have good understaning of this at least from 2008-9. There's no way they're all on Keynsian kool aid and hope for return of organic growth that will overtake accumulation of debt...

Fri, 05/24/2013 - 14:49 | 3596602 Seer
Seer's picture

Trouble for many commenting is that they may be under the influence of either the Pygmalion Effect or Illusory Superiority.

I don't believe that TPTB are clueless.   They have, mostly, inherited this BAD system, it is what they know and what they feel privileged to protect (perhaps also suffering from the above?).

The System has so much built-up momentum (mass) that it can't just stop.  It NEVER came with instructions on how to deal with its end: "the answer is 42."  And many without a conscience will gladly throw a LOT of people under the wheel in oder to achieve profiting off of a "short;" though they WILL prove right, I don't take the stand of profiting off the misery of others (even if they're nasty banksters/whatever- behave as you wish others to).

Nationalism will hold the wedge against any OWG: and, really, w/o Russia and China signing up it's kind of hard to have a One-World govt with only half the world signing on (and dependent on that "other" half).  And as the retreat continues nationalism will give way to regionalism.

Fri, 05/24/2013 - 11:47 | 3596039 outofhere
outofhere's picture

"Considering the sheer number of people"... or Number of people sheared???

Fri, 05/24/2013 - 11:33 | 3596001 Cheater5
Cheater5's picture

Maybe it's just me, but if European banks are short collateral in a big way, isn't this a huge opportunity for the Fed to liquidate some or all of its portfolio in the short squeze.  Hmmmmm?

Fri, 05/24/2013 - 11:34 | 3596004 astoriajoe
astoriajoe's picture

Makes sense to me.

When you can just take customer deposits, why bother with collateral?

Fri, 05/24/2013 - 11:36 | 3596010 FubarNation
FubarNation's picture

Get ready for the Bank Shitstorm  Randy. 

The shitclouds are gathering and the shiterologist is calling for severe shitweather.

Fri, 05/24/2013 - 13:24 | 3596321 OldE_Ant
OldE_Ant's picture

lol the shitometer is reading "The RUNS"

Fri, 05/24/2013 - 15:29 | 3596738 WmMcK
WmMcK's picture

With a chance of meatballs.

Fri, 05/24/2013 - 11:36 | 3596014 Catullus
Catullus's picture

Theory: the EU knows this is a huge problem. And it's unliquidatable.

But by inserting this authority, what they're doing is attempting to collapse the collateral chain directly into the EU's coffers. You know, for your safety. They'll just hold on to it until "things can get sorted out" for "an orderly liquidation". But because it was always illegitimate and no post hoc illegal, you'll never be able to draw a line back to what is yours.

What that means is theyre going to move into position to rip everyone off and there's nothing you can do about it because you had to claim to it to begin with. THIS from an entity that is completely unaccountable to anyone.

This is entering the launch codes in a currency war.

Fri, 05/24/2013 - 11:47 | 3596038 Widowmaker
Widowmaker's picture

Just like real estate - evict the "owners" on behalf of the new "owners."

No one hears. No one sees.  No one says.

Fri, 05/24/2013 - 14:58 | 3596632 Seer
Seer's picture

I see it more as a natural end to a BAD system.  Who the hell would think that the End could be GOOD?

I've asked the question many times but have not gotten any meaningful reply: what is the endgame when THEY have everything? when everyone (billions of people) are alienated from the System then how can controlling/owning the System be all that so many think is the endgame?

The banksters ran the game.  A lot of people (many here, myself included) caught some of the crumbs.  Much of it is crap that we never really would have "owned" to begin with.  The banksters don't want crap, it's just that they're stuck with it- they have little choice.  Really, I read comments from several people on ZH extolling the virtues of NOT owning (in an ownership society, huh?)- with that logic then it seems that the same could be applied to the banksters, in which case how could it magically be GOOD for them?

It's nothing but Product Recall and there's no replacement product coming (because we don't really know what we need).

Fri, 05/24/2013 - 11:45 | 3596025 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The is the best news I've read in awhile if they go through with it. It is definitely a step in the right direction to unwind this mess and try to get back to sound fundamentals.

The bad side is instead of forgiving a lot of rehypothecation between counterparties and coming up with a per determine split on actual underlying assets (i.e. who gets how much and how many of each particular asset type) it is probably going to be a no holds barred disorderly clown show for one or 2 major parties to grab as much as possible force the rest into debt slaves to them for the next 200 years to keep power structure in place. The only right way to do this is hit the reset button but they won't do that.

Fri, 05/24/2013 - 11:49 | 3596052 LawsofPhysics
LawsofPhysics's picture

Will be interesting to see the response when the counterparty (say a Saudi warlord) shows up in a suburban American neighborhood to "collect".

Fri, 05/24/2013 - 15:02 | 3596646 Seer
Seer's picture

Saudis don't hold that much in US-based assets do they?  Compared to China? (NOTE: be sure to scrub "Made in China" from your shit, as one day that'll like be read to mean "Property of China")

Europe is going to be so owned by Russia (energy): that's what the many decades of cluster-fucking in the ME have been about.

Fri, 05/24/2013 - 11:47 | 3596040 Smuckers
Smuckers's picture

Pepper Brooks: It's a bold strategy, Cotton. Let's see how it plays out for'em.

Fri, 05/24/2013 - 11:47 | 3596041 newworldorder
newworldorder's picture

Has JPM, D Bank, the Squid, FED and BIS agreed to this? Inquiring minds want to know.

Sat, 05/25/2013 - 08:45 | 3598161 Urban Redneck
Urban Redneck's picture

In order to work (with minimal carnage/maximum possible stability) the first three would have to explicitely not agree to it, since the latter two (in coordination with their Finance Ministers) would have to sieze control of them...  Anything else and something is rotten in the state of Denmark...

Fri, 05/24/2013 - 11:58 | 3596043 moonstears
moonstears's picture

CDSs are a biggie too, and so far they simply change the parameters of the payout. I DO think they're all pissy with one another Govts/banks/counterparties. You are trying to de-industrialize the USA, Europeans too, yet continue to tax 'em and fuck 'em. No blood in a stone, so they'll vampirize one another. Chinamen makin' 25cents and hour are hard to draw liquidity from, even if there are billions of them. The way it works is you NEED a consuming class/nations...i.e. western jobs, bitchez!(slightly OT rant over)

Fri, 05/24/2013 - 11:50 | 3596050 falak pema
falak pema's picture

either this is true and its a beginning of unknown dimensions or else its a false flag; but its a two edged sword to now NOT implement it if you say you are going to.

What a revolution it will be if it is implemented; and what pain as those banks get nationalised as they won't be able to stand that stress; or will they?

Fri, 05/24/2013 - 13:09 | 3596259 HoaX
HoaX's picture

He should´ve been telling that to his own government instead.

Oh wait, they don´t have any say in their own parliament, just in the oh so undemocratic European one.

Fri, 05/24/2013 - 11:51 | 3596060 All_Is_Well
All_Is_Well's picture

All good ponzis must come to an end......

Fri, 05/24/2013 - 15:26 | 3596727 WmMcK
WmMcK's picture

Even the bad ones do -- oh, now I get user name.

Fri, 05/24/2013 - 11:50 | 3596061 Meat Hammer
Meat Hammer's picture

Maybe it's time to say GAME OFF, take their money and go into the bunkers for a bit, watch it all burn, let the population thin itself out a little, then come back out and...

GAME ON!

Fri, 05/24/2013 - 11:53 | 3596068 rosiescenario
rosiescenario's picture

"Europe may begin a crackdow....."

 

Yes they may if they wish to bring doomsday forward into the now.

Fri, 05/24/2013 - 11:54 | 3596070 Quinvarius
Quinvarius's picture

So when they get to the bottom of the rehypothecated customer assets, I seriously doubt they will find in favor of the customers.  Which is why you need to GTFO of the banking system while you can.

Fri, 05/24/2013 - 12:01 | 3596082 trebuchet
trebuchet's picture

The phrase "looking for a needle in a haystack" comes to mind,

 

and yes you are right, but most likely it wont be outright robbery it will be sudden margin hikes as the banks start screaming about their own exposure

 

I wouldnt rule out daylight robbery either given the Cyprus precedent

Fri, 05/24/2013 - 12:09 | 3596105 Kreditanstalt
Kreditanstalt's picture

Day after day, any Asian or European gains in the fake "gold price" immediately begin to trend down when NY opens.

When GLD is empty, that's when the fun will begin!

Fri, 05/24/2013 - 12:13 | 3596112 Element
Element's picture

Thank Christ it's only fiat.

Fri, 05/24/2013 - 12:16 | 3596123 WTFUD
WTFUD's picture

Draghi (ex GoldieSucks but you never leave Da Family ) is the man who likes to say YES.
This fukka is giving me 30 years but not a grey hair in his head/bonnet/napper!
Where have i gone wrong?

Fri, 05/24/2013 - 12:32 | 3596132 fallst
fallst's picture

Way Underfunded...try 700 T   oh this was posted before I read all the comments so...yes..All CDS please just go away. Try clearing them now good luck.

 

Fri, 05/24/2013 - 12:24 | 3596140 Clowns on Acid
Clowns on Acid's picture

If Europe even hints at implenting this BenDover Bernanke woil have to print oar than $85B/mth. MOar like $185B / mth.

I don't think thast they can even try to do this. This is just jawboning by some doosh in the ECB. 

Fri, 05/24/2013 - 12:27 | 3596148 Bastiat
Bastiat's picture

Maybe it's a shakedown for more "swaps" from Bernanke. 

Fri, 05/24/2013 - 12:40 | 3596170 MrSteve
MrSteve's picture

I've seen Oppenheimer quoted as saying "we're all sons of bitches now" regarding the Trinity test.

Fri, 05/24/2013 - 12:47 | 3596187 the grateful un...
the grateful unemployed's picture

and here comes capital controls (in order to stop bank failures while simultaneously deleveraging) in the US instance Bernanke should have learning something from 2008 and the Fed will open their books [on a case by case basis probably] and make advice BEFORE the next Lehman moment.[you'll know who the next Lehman is before the next Lehman happens]

the character of that advice is open to spec, it should contain some inducement for baks to loan out reserves, which will require the fascist central planners to come up with a public investment plan, [probably defense based] companies and technology, [since the private sector ain't doin nothin] and the GOP can can always be counted on to back defense spending. but it could also be the healthfraud industry, a Reagan based deficit spending program in the war against toe nail fungus, or whatever healthterror thing you've got. [we could probably learn something from cramer about this, he always knows the hot sectors]

but i see that Bernanke sees custodial assets as savings which need to be invested, [just not quite as recklessly as MF global did it] Europe only dances to BB's tune. they already hamhandedly bailed in Cyprus, [warning to sovereign banks don't sit on your deposits, idle assets are the devils playground]

and real collateral may get scarce, but does that bother bernanke? LOL 

 

Fri, 05/24/2013 - 12:57 | 3596220 YHC-FTSE
YHC-FTSE's picture

Why not? This article reads as though collapsing the shadow banking industry, a bullshit paper economy vaguely related to the real world backed by fictional counterparties and  bought with the rehypothecated (stolen) assets of their own clients is a bad thing. Is any other country even trying to untangle the chain of lies that creates a fantasy notional value of tens of trillions of dollars in an industry founded on fraud, debt, and criminal obfuscation?  

Don't come to ZH to whine about banks collapsing, or threaten that it will lead to "a plunge in market confidence", or that it will be akin to turning the switch on its own electric chair. We've all heard enough TBTF bullshit about the finance industry to last several lifetimes. Let them fail. Let the system collapse. Let them lose their shirts for playing that rigged and risky game, and if the big banks disappear nobody will shed a tear here. Humanity have survived worse. The alternative is letting these leeches suck at the lifeblood of every economy on the planet indefinitely. 

As mentioned previously,  DB's off book plays in derivatives are in the WTF neighbourhood of ~70 trillion USD, so I doubt it will be rigorously implemented soon. Just another in a long list of "Things we should do about the banks" that will be kicked into the future. As we all know, there is a world of difference between what politicians say and what they do. The fuckers.

 

Fri, 05/24/2013 - 12:58 | 3596224 Hayabusa
Hayabusa's picture

So, as they unwind the shadow banking system Bernanke is going to concurrently start tapering back QE?  Uh, I don't know what yer smokin... but it must be some powerful hopium cuz yer delusional.  Talk about a double whammy... wall street won't tolerate this sort of behavior so it won't happen, period.  Besides, the rich have too much to lose.  IF it happens, you can bet the rich will have cashed out first and the rest of us clueless bastards will be financing the subsequent bailout(s). 

Fri, 05/24/2013 - 13:08 | 3596230 suicidalpsychologist
suicidalpsychologist's picture

Every single life form on earth and in the universe is designed to defend its own interests/ survival even if at the expense of other life forms interests/ survival. It s a giant free for all. We only help others when we calculate it could improve or maintain our own chances of survival, when we calculate it doesnt, we dont do shit and ignore them. When we calculate that the survival of someone threaten our own odds of survival we calculate how to eradicate that threat or how to cooperate with it if we cant defeat it. We only help the survival of those whose survival is linked to our own survival. Knowing, being able to envision that you have a more stable future, better future chances of survival than others makes you feel happy, knowing you re going to have troubles surviving makes you sad, seeing other people with better odds of survival makes you angry, frustrated, jealous, or sometimes, you submit to them hoping it will improve your own chances of survival. This is why rich people at the top of the pyramid are often happier; their survival is not in danger anytime soon. They re less stressed, they dont have to struggle for survival like the average joe; everyday they re comforted seeing how most of mankind is having lots of troubles just surviving. Doesnt prevent some of them from having desperate spoiled kids who will ruin all the legacy just because they werent loved enough tho. Loving your offspring means giving them more strategies of survival than your neighbor s offspring. Loving = giving someone better odds of survival against the competition, this is why we want our kids smarter, faster, richer than the neighbor's kids.

Fri, 05/24/2013 - 13:39 | 3596355 Anusocracy
Anusocracy's picture

That's why it is completely asinine to grant control to government if you are not in government. A minority obtains most of the survival benefits, while the majority thinks they get benefits but in truth are used and disposed of like objects. Unfortunately, because of our evolutionary development, people operate with an emotional bias in favor of government and are incapable of seeing what an unmitigated disaster it has been.

Fri, 05/24/2013 - 13:04 | 3596240 booboo
booboo's picture

Men, set your phasers to disiniggerate!

Fri, 05/24/2013 - 13:06 | 3596249 eddiebe
eddiebe's picture

I'm surprised somebody in the loop even mentions this. If it gains any traction at all and isnt just swept under the rug again it can only be good for gold.

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