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CEO Of Europe's Largest Insurer Pops The Utopia Bubble: "Nothing Is Solved And Everybody Knows It"
It's one thing for a tinfoil fringe blog to repeat, month after month, that nothing in Europe has been fixed, that Draghi's disastrous policies are merely concentraing and stockpiling even more unresolved problems - for now ignored courtesy of the gentle sprinkle of ZIRP, or rather NIRP "fairy dust" - and that just like Portugal showed panic can grip the entire continent literally overnight because everyone knows this. It is something entirely different for the CEO of Europe's largest insurer to make the same statement.
From Bloomberg:
When asking Allianz SE’s chief investment officer about the euro area’s sovereign debt woes, be prepared for an emphatic response.
“The fundamental problems are not solved and everybody knows it,” Maximilian Zimmerer said at Bloomberg LP’s London office. The “euro crisis is not over,” he said.
While extraordinary stimulus from the European Central Bank has encouraged investors to pile into the region’s government bonds this year, that’s not a sufficient remedy for Zimmerer, who oversees 556 billion euros ($757 billion) at Europe’s largest insurer. Countries are still building up their debt piles, and that’s storing up trouble for the future, he said.
As Zimmerer was speaking, investors were getting a reminder of the volatility that was rife through the sovereign debt crisis that started in 2009, as sliding stocks and bonds of Portuguese financial institutions rippled across the region’s markets. Amid a four-day slump, yields on Portugal’s 10-year bonds ended yesterday 279 basis points higher than their German counterparts, the widest spread since March 18. The securities recovered some of their losses today, tightening the spread to 268 basis points at 10:27 a.m. London time.
“There is only one country where the debt level last year was lower than 2012 and this is a signal the debt crisis can’t be over, only a recognition of the debt crisis has changed,” Zimmerer said on July 9. “If the debt levels are not going down in the end we will have a problem, that is for sure.”
And crickets.
Here's the punchline: everyone knows that Draghi, the unelected dictators of Europe, and all of its bankers are lying when the say day after day that things are better. However, at least there was unanimity in the "head-in-the-sand" exercise, which recall from game theory works only if all participants in the charade agree to the ignore reality.
Today for the first time, a "member of the club" finally called out Europe on its bullshit: something that is not allowed under game theory. What's worse, he made it quite clear that everyone else knows they are not only lying to others, but lying to themselves.
What happens next may be very unpleasant, because as always happens, following protracted periods of denial, and Europe has been living in a vacuum completely dislocated from reality for exactly two years since Draghi's "Whatever it takes" speech, there is very violent convergence between reality and idiocy. And Europe is just about due for precisely that kind of denial-shattering convergence.

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Insurers are getting there asses handed to them right now.
So I assume he's never heard of the Nail Gun Man?
Governments DO NOT solve problems. They create problems and usurp power and wealth from the people to "fix" the problems.
Has there been a time in history when everyone knows things are bad and everyone can see bubbles everywhere and the market has collapsed?
Note: Everyone excludes central banks and economists!
The bankers designed a system where debt always increases, and then they cry for a bailout when debt levels don't go down. Assholes!!
Exactly... The system REQUIRES credit expansion.
exactly. our entire monetary system is built upon debt. It is the ulitmate ponzi scheme, requires more and more people to keep going into more and more debt, and never actually paying it off. It works until it doesnt
He can always purchase a nail gun from the widow of a JPM suicide exec.
Optimist.
Honest to God, I saw a Nail Gun Supply truck a couple of days ago!
SOFIA, July 11 (Reuters) - Bulgaria is to allow its fourth-biggest lender to collapse but could spend up to 2 billion levs ($1.39 billion) making sure customers do not lose out, as the Balkan country battles to clean up its worst financial scandal since the 1990s.
http://www.reuters.com/article/2014/07/11/bulgaria-banking-idUSL6N0PM28G...
Mr. Insurer,
Everyone knows it...And you are just now admitting you are one of the everyone?
So what's your proposal to solve it then?
MEEP MEEP!!....
http://www.youtube.com/watch?v=1xJ4OWVcLlY
Unfortunately, the monetary system is man-made horseshit. The laws of Nature and physics really don't give a shit about that.
Biological systems require calories. - fixed it for you.
That, and electrolytes.
Your nickname is very fitting here.
And also for that expansion to be infinite.
dont be stupid, they must know, coz they use the system, even a monkey usig wheel after a while willunderstand correlation between steering direction & car direction.
You mean this guy? http://www.niallferguson.com Yeah, scary shit.
Here's the problem, Europe doesn't intend on paying off it's debt, however they will bleed every man women and child for every dollar they can to keep power and control. The sand in the hour glass of 'indentured servitude' to the State by the masses will soon drop it's last grain and it will not end well.
What we're looking at is the destruction of Freedom!
'The Obsolete Man'
http://www.youtube.com/watch?v=ZymJAsxHbVg
europe is in the same downward spiral as the rest of the world. it really is genius how these guys make it look otherwise.
the truth of the matter will reveal itself in time: infinite debt means no one gets paid with anything but debt, and sooner or later this illusion must crumble.
FRN cash currency is zero interest paying debt, good for legal tender, so we have been paying debt with debt for a long, long time.
This is the part when the coyote has just looked down after running off the cliff before the long plunge and splat?
when it becomes serious you have to tell the truth to spark the next 5% rally.
I see hot tubs and prostitutes wielding heroin in this man's future.
Lemme google that............
pods
Bartender told me.
Debt = Wealth
Freedom = Slavery
War = Peace
Relax, dude.
You forgot the most important dystopian motto of them all.
Ignorance = Strength
or one that was not published.... Evil= Good.
Wrong.
Knowledge is power.
The "game" is and has always been about power and control over real resources (including human resources).
History does suggest this to be the case, yes.
Bullish
The new home of M.El-Erian ... maybe some fresh thinking on their global asset exposures going on.
the stock is plummeting up on this horrifying news.
http://finance.yahoo.com/q?s=ALV.DE&ql=0
Explains why they are green.
Things aren't fixed.
That means default.
Default means insurance payment.
So, wait, buy insurers?
Who is gonna make the bet that "ringfence" makes a lexiconal comeback sometime soon?
pods
Backstop, baby!
Why does these people always complain about debt not going down?
It is like the arguments I remember about the US's balanced budget and paying off the debt.
Duh, it's the money supply stupid.
Just nowadays, since we are in a worldwide depression, governments have to take up the slack on debt creation otherwise it all goes boom and their little farm is overrun by the escaping livestock who may or may not eat them in the process.
pods
(Jumping up and down and waving hands) Look at me! Look at me!!!
http://finance.yahoo.com/q/bc?s=DB+Basic+Chart&t=6m
Hmmmm. Sucks to be a Deutsche bank.
There is almost zero credit growth in the USA. That will change should oil prices collapse to say ...5 bucks a barrel.
Google search Royal Dutch Petroleum and the Masnoon field. The contract is for two bucks a barrel.
And production cost in Iraq can be even lower, it matters not one iota except to the margins of Royal Dutch Shell.
There is almost zero credit growth in the USA. That will change should oil prices collapse to say ...5 bucks a barrel.
Google search Royal Dutch Petroleum and the Masnoon field. The contract is for two bucks a barrel.
Cyprus --> Detroit --> Argentina --> Portugal.
Portugal used to rule the world a long time ago.
One of these holiday weekends !! (shorts on)
Fans are spinning.
And Detroit used to rule the world and was the center of the universe in 1960s when it had the highest per capita income in the country.
Bulgaria --> Austria --> Italy ?
Bulgaria to allow its fourth-biggest bank to collapsehttp://www.reuters.com/article/2014/07/11/bulgaria-banking-idUSL6N0PM28G...
Panic in Detroit
https://www.youtube.com/watch?v=AXxmIcsmpnQ&feature=kp
https://www.youtube.com/watch?v=SKoIPk5Za0A
Lets not get the UAW mixed up in this. While evil, they didnt print money out of thin air to finance all new debt of the central government of our formerly non banana republic. The UAW are...moderate evildoers.
My bet is that Greece will default.
Debtors are only in default when the creditors say they are in default. Since having their debtors be in default would be catastrophic for these creditors, they will never say their debtors are in default. Ipso facto by the transitive property, the debtors are solvent. What part of this can’t you all understand?
If you've extended a trillion in credit for an oil driven recovery that has failed to materialize don't expect World War Z to bail you out.
At the article's link "fairy dust", the guy sort of looks like Art Cashin in the chair up front, reluctantly playing Canta Clause.
Those saying "the Emperor has no clothes" are becoming ever more credible.
"When it gets serious, you have to lie." - Juncker
Sure sounds like someone is getting ready to pop da bubble. Who's the fall guy?
http://www.youtube.com/watch?v=VJ1YHkhfCKc&feature=kp
"I might fall from a tall building
I might roll a brand new car
'Cause I'm the unknown banker
That made Blankfein such a star."
Wow this shit is gonna have teeth.
I saw that exact saying written on the bathroom door at a Taco Bell!
pods
Who do you think wrote it (more of a statement than a question).
You used the bathroom at Taco Bell?
Its the collateral stupid.
Sorry, off topic, but this issue is close to my heart.
Recently, there have been photos of dead endangered animals (next to their hunters) surfacing online that are truly offensive. Today, a photo of Steven Spielberg has surfaced which shows him next to a dead triceratops. It is truly distrurbing. I mean, what did this innocent triceratops do to him?!
http://www.news.com.au/technology/online/social-media-storm-after-steven...
"It's comin right for us!"
Sounds a little cynical.
I mean really...
The problem is not the economy and lack of jobs. The problem is your perception of the economy. I mean... Weve been busy doing whatever it takes to improve the appearance of things. You guys are such uncooperative winers. I mean how about all those road work jobs and walmarts hiring and the nsa is hiring. I did that! What? Am I going crazy!!!
http://www.google.com/trends/explore#q=stock%20market%20bubble
What's up with this honesty all of a sudden?
Pulled all the cash out. Book-cooking.
Because in NINE DAYS, when the IMF takes over, we are all screwed.
Enjoy your Holiday...
We are going to have a Holiday.
The Banks will close and eat your Deposits away.
So enjoy your Holiday.
Fools names, like their faces, always seen in public places.
Handwriting is on the wall. End-game is coming. He knows it. You know it. We all know it.
Prepping is not a fad - it is a reasonable reaction to an irrational situation.
America's experiment in irrationality for the last five years is bearing its just fruits - affects the entire world.
What deposits? We moved everything to physical cash and PMs a long time ago.
I tend to value managers of insurance interests because they need to be realistic and accept honest facts in order to manage risk. And these guys are the ultimate risk managers. So if one of their big boys comes out and says things are not fixed, it is simply a hoax perpetrated by central banking. The media and governments can live the lie and sell the lie, insurance interests will be bankrupted by accepting lies. And this holds true for Global Warming as shown by climate science. You will not find deniers or doubters managing casualty insurers. They are cancelling policies and rasing premiums across the board in areas prone to global warming impacts. Like sea coasts especially, but flood and drought prone areas. Like people with floodplane houses and farmers working on marginal lands of the west. Insurers are demanding rish premiums from these folks to cover the increasing weather related losses.
When your company's future profits are at stake, you tend to dismiss central banker manipulators and media liars as regards economic risks and you totally ignore climate science deniers who work for fossil fuel companies. Denial is useless and wasteful when YOU are the company responsible for paying out on casualty insurance for mega storms, mega floods and mega droughts, all of which are proven results of increased energy in the seas and atmpshere in the form of heat, heat that was not radiated back to space as much as in the past.
Yeah, I remember in the past when there were no mega storms, droughts, polar vortices, floods, insect plagues or gonorrhea.
Well, that last one might be correct.
pods
Been through them all, pods. That insect plague was a bitch!
Insurance = hedge
Insurer = ultimate hedge fund
Note that Allianz is more than just insurance ...Allianz Asset Mgt has $1.8T (incl client) AUM.
pimco is allianz's bitch.
insurance is a GAMBLING scam meant to lockup profits for the insurer.
whether or not the insured gets paid on his claim simply has to do with the extent of the scam......
unlike all other industries claiming to produce a product, the insurer produces NOTHING but a promise to pay in the future IF something happens and IF they deem it necessary to pay you.
Yes but it's great to have insurance when you need it.
...and if they don't go bust first.
Comrade Jack, you might want to revise your faith in the "Insurer in the Coal Mine" and nuance it with the truth that Crony Crapitalism factors in to the Insurers calculaus too.
Recall that AIG went BUST-A-ROONY and only the backing of the FED and billions of American Citizen backed dollars saved it to this day. THey continued to collect premiums through out their hidden financial ruin until this very day.
Oceans everywhere will be seeing a collapse as a food resource as CO2 drives ocean acidification...but don't expect the agents of insurance companies to necessarily lead the charge away from insuring related at-risk enterprises.
They know that when things are real bad, the "big boys" are given a pass.
We should all be focusing on revising our democracies so that government is responsive to everyone's needs, not just the super wealthy corproate campaign donors. I suggest the fight is on today and our global cause is advancing to root our the corrupting influence of money on politics. In the USA, campaign finance reform movements are active in every community.
Otherwise, I really like your analysis Jack.
The denialists didn't like that...
Drinking that polluted Chesapeake Bay water again I see...
Bankers game. Modified corporate raider game.
Pull out the cash, off-shore the money, claim your in trouble and need a bailout. Rinse and repeat. Some excellent book-cookers around.
Leave the taxpayers holding the bag.
The SUX-2015 Crock of Book Cooker - on sale now at Sears or JC Penney for (how much ya' got?)
Smoke some hopey
get straight
all is well again
An Infinite Jest
Jubilee ...
... every 7 years.
We have been told that there are increasing consequences for not obeying the law.
Let's see who will speak the words below THIS time ...
Isaiah 9:10 (NIV)“The bricks have fallen down, but we will rebuild with dressed stone; the fig trees have been felled, but we will replace them with cedars.”
Replace fruit trees with cedars, sure sounds like something the bible fucktards would think was a good idea.
Actually it was the UNBELIEVING fucktards that replaced the Fig Trees with Cedars. Then, following that, Israel lost God's favor, experienced an invasion and subsequent ENSLAVEMENT by Babylon, due directly to their arrogance.
But of course you do not know the story. It is laughable that you can criticize something of which you lack any knowledge. It demonstrates your shallowness of thought.
Nor do you understand the consequences of turning your back on God. It is because you are one of the unbelieving fucktards. YOU ARE NO DIFFERENT. LMAO...at you. How does it feel to be a target of faraway laughter?
Take a good look in the mirror as the story talks about YOU. The judgment you gave is judgment upon yourself.
(Judge not lest you be judged. For whatsoever you measure out that measure will be returned to you. You serve to demonstrate the principle, to prove the prophecy.)
So, for YOU, there will be Hell to pay. Have fun paying for it...
Sorry but honesty and intgrity is an exception and not the rule.
The greater the fraud and lies the higher in status you go.
Talk is cheap. Crashes are not. If it's crashes............LET'S HAVE ONE.
https://www.facebook.com/photo.php?fbid=10152130436567511&set=pcb.101521...
Shame
Shame
Shame
At least 81 people, including many children, have been killed in the Gaza Strip in two days of Israeli air raids, as Israel's army mobilised on the border for a possible ground invasion.
Maybe it wasn't such a good idea to kill those three Israeli boys after all. Might want to rethink shooting rockets into Israel also.
lying bastard hasbara troll
Violence begets violence.
I would be more convinced if the guy would announce what they aren't going to insure any longer.
Alliance recently stopped all insurance policy guaranteed minimum "growth" returns. I suspect if they can't guarantee even 1% to their policy holders, they know the future holds some time of very low returns. Hedge accordingly!
Here's some good comedy:
Portugal bank crisis: 4 reasons to keep calmhttp://money.cnn.com/2014/07/10/investing/portugal-bank/index.html
Who wrote that BS? Draghi?
I refrained the other day from calling the financial media stupid, naive and ignorant yes, but after reading that trash, they are either stupid or complicit...at this point I'll believe either one.
Whatever it takes!
Of course the eurozone crisis isn't fixed, it has been dormant at best. Problem is that the time Draghi brought has been squandered because no politician can find a way to fix it becuase the people don't want it. So they will sit there for as long as bond yeilds are at idiocy levels until banks/bonds or whatever blows up in their face brings the wholse sorry mess down.
PS. New to this board so might as well put my cards on the table. I'm eurosceptic, a Brit and want the UK out of the corrupt EU as soon as possible. It was always going to be an undemocratic clusterfuck, and has proved to be just that.
clearly the comment is all about helping the pimco book.
Zimmerman didn't get the memo...
He missed OClowno's speech yesterday, no cynicism is allowed, only hopyness.
Another one ripe for suicide. At least it will look that way.
Extreme care required when handling nail guns or taking the air on top of buildings..
What do CEOs know? Those idiots were selling their stock at a record pace last year 30% below current price levels.
It's no big deal really, for all the fancy systems and whatnot we're just on a ball of rock spinning around the sun which will burn out in a few billions years and we'll all just be back to dust. In the meantime have a beer and laugh at it.
yeah, I'll be pretty old by that time.
Meep meep!
The song never gets old.
Blue Oyster Cult - Godzilla
The European Union was structurally built to burn to the ground with one match on a soggy matchpack and a bit of faith in God for a spark!
NOTE: The European Union was not built in one day but will be destroyed
in one day. That day is fast approaching as the winds blow harder on the flames that will burn the EU to the proverbial ground. America feeds those flames collectively every single day without a thought to where the West is going to end up in short order. You have heard of 'Dumb & Dumber' and
now you are about to hear about 'Drunk & Drunker', my friends. The European Union is plastered on the souls of the poor and now she will have to get drunker on the souls of the not-so-poor if she wants to maintain her drunken stupor. If the not-so-poor say no, the drunken bitch will crash the bus that the EU is riding on. Let us assume that bitch is sitting in her palace of the International Monetary Fund right this minute fuming over the fact that they will not buy her another bottle of gin. And you know what that drunken bitch is going to do when she starts to sober up and get the DTs, eh. It's not going to be lady like behaviour we are likely to see out of this drunken skinny bitch I'll tell you. Wait till you see what she is like when she starts to get hungover and there is no more gin in the silo. Christine Legarde has a temper under all that cool level headed debauchery.
OCCUPY THE IMF - OCCUPY THE EUROPEAN UNION - OCCUPY EVERYTHING except Christine Legarde's liquor cabinet.
Nothing will EVER be solved.
THE PERFECT STORM (see p. 59 onwards)
The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf