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Austrian "Freedom" Party Demands Bailout For Swiss Franc Speculators (From "Monstrous Monetary Policy")

Tyler Durden's picture




 

The phrases "it's just not fair" and "waa waa waa" were not seen in Austria's Freedom Party's statement demanding a bailout for Swiss-Franc-denominated borrowers (i.e. people who were willing to speculate on FX rates with their house as collateral in order to get a lower interest rate in order to afford a bigger home that they really couldn't afford in real risk-adjusted terms). What Austria needs, general secretary Franz Kickl exclaimed is "a general regulation and an offer to all Franc borrowers," adding that "it cannot be that Austrian borrowers are the only ones who keep their losses even they are indemnified in Hungary, Croatia and perhaps even in Poland, the Czech Republic and Slovakia." Which does sound oddly like 'waa waa waa'?

 

Austria Freedom Party Statement (via Google Translate):

Kickl: Freedom Party calls for aid package for Franken-borrower

Home builders and entrepreneurs pay bill for catastrophic monetary policy

 

Vienna (OTS) - The ECB monetary policy always takes monstrous forms. The bill for the absurdities pay the citizens of the economically better prepared States and Austria - especially the savers whose assets are depreciated in real terms, and in particular the extent franc borrowers. "It has to be this clear, there blame for the disaster that has increased by up to 60 percent of the debts of the borrower franc, the Chaos policies of governments in the euro area countries - and in Austria's fault SPÖ and ÖVP and its mehrheitsbeschaffenden green and pink appendage, "said Freedom Party General Secretary NAbg. Herbert Kickl .

 

Although located franc borrowers had to be the speculative nature of their funding form quite aware, must surely is a legitimate apply to them, explained Kickl: "I do not think that someone who, for example, in 1995 with confidence on economic development in Austria and which resulting hard currency has taken out a loan had to reckon with the fact that 15 years later the prevailing policy begins to demolish the now common European currency intentionally by the break even given all the rules. " Therein lies namely the cause for the dramatic decline in the value of the euro against the Swiss franc and also many other currencies.

 

Kickl now therefore calls on the policies a comprehensive support package for Franken-borrowers. With life extensions - bring the banks money again - it could not be done. "We should definitely have a look to Eastern Europe to throw," said Kickl. Croatia chic at just the come under pressure borrowers financially bail out. Hungary had already done this, and other Eastern European countries could follow, as experts say. "The cost for wear, especially in Eastern Europe often Austrian banks. It can not be that, although the Hungarians, Croats, perhaps even the Poles, Czechs and Slovaks replace their losses and at the end of the Austrian borrowers are the only ones on the track and sit fully on their losses remain, "said Kickl. Austria had its banks massively helped at the outbreak of the crisis, although the cause was to search for their difficulties never in Austria itself, but especially in Eastern Europe. "Now the opportunity arises - for banks as well as the policy must set appropriate rules - to do something in this financial and economic crisis for its own citizens," Kickl appeals to the government parties, as soon as possible to present a proposal.

 

The Freedom Party Secretary General also points out that many loans also legally lot was to clarify, because incorrect advice could be available by banks or by the release of stop-loss limits to fatal courses, the damage should be prevented so has widened had been. "It can not be that one, leaving the enormous risk of litigation to enforce these mistakes in the already financially ailing borrowers. We need a general scheme and an offer to all Franken-borrowers," says Kickl. After all, it is also in the interest of the banks, which also reduce existing risk to themselves by foreign currency loans. Now to put your head in the sand and just playing for time, increase the risk of the catastrophic Euro-Politics - Tagged government bond purchases by the ECB - even further.

*  *  *

Bailouts for all...

 

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Mon, 01/26/2015 - 23:17 | 5709132 SHEEPFUKKER
SHEEPFUKKER's picture

Join the privatize the gains and socialize the losses bandwagon Austrian bitches. 

Mon, 01/26/2015 - 23:19 | 5709149 dwayne elizando
dwayne elizando's picture

He must not believe in..... Austrian Economics! Tuhdoomptsh!

Mon, 01/26/2015 - 23:28 | 5709168 CrazyCooter
CrazyCooter's picture

As a US TaxPayer, I feel like its Socialize the Gains and Privatize the Losses!

Assholes!

More on topic, I have this gut feel the Swiss central bank intentionally did what they did to take the other side of the trade and claim (indirectly) profits from the move to help repair the losses they stuffed down their gullet for years.

Someone, somewhere make huge profits on this and I bet you money it was the SNB.

Regards,

Cooter

Mon, 01/26/2015 - 23:33 | 5709211 linniepar
linniepar's picture

As a staunch liberal I feel we should lend them more currency so they can "buy" their liberty. 

Mon, 01/26/2015 - 23:36 | 5709216 CH1
CH1's picture

"Oh, dear overlord, please, please save me!"

How depraved.

Mon, 01/26/2015 - 23:38 | 5709229 linniepar
linniepar's picture

Yo Coot, it was Soros and his tribe.

Tue, 01/27/2015 - 00:49 | 5709421 0b1knob
0b1knob's picture

What does the Pirate Party of Austria have to say about this matter?

 

https://encyclopediadramatica.se/Pirate_Party_of_Austria

Tue, 01/27/2015 - 05:05 | 5709721 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

I adore that website.

Tue, 01/27/2015 - 06:39 | 5709779 StandardDeviant
StandardDeviant's picture

Forget the Pirate Party, the SPÖ, and the ÖVP.  I want to vote for the "mehrheitsbeschaffenden green and pink appendage", whatever the hell that is.

Tue, 01/27/2015 - 14:13 | 5711681 shovelhead
shovelhead's picture

Who knew that Austrians were funny?

Granted I only know two, both actors of a sort, and politicians. One was decidedly unfunny and the other slightly less so.

One became Chancellor of Germany and the other became Governor of California.

Both self-destructed in a mad pyromaniacal fashion. I don't know about their capacity for humor, but their flair for a dramatic exit is splendid.

Tue, 01/27/2015 - 08:36 | 5709949 Againstthelie
Againstthelie's picture

This article is quite disinforming.

As everywhere in the world,  I am sure the mortages in Swiss Francs were NOT the idea of ordinary homeowners, nor have they been aware that they are speculators and are risking their whole existance. It are the banks that lure mortage takers into foreign FX debt!

Ask anyone on the street, if he understands what a foreign FX mortage is and what the chances and risks are. People have no clue and go to banks, because they are being brainwashed from the ziomedia and propaganda, that banks would give them objective advice. But the truth is that banks are SELLING things, like car dealers. And the provision for the seller determines how "great" a product is.

Nobody would go to a Ford dealer and expect an objective information if a Toyota Yaris would be a good car. But banks claim they would give advice objectively.

Ok, it can be discussed if in times of the internet it can be expecte that people are still that dumb to believe that, but justice must always be aimed at the evil perpetrator who is selling things to people fully aware that they do not understand them and withholding the associated risk. Each banker that sells foreign FX mortages to the average Joe should be held personally responsible for any losses.

 

Tue, 01/27/2015 - 03:20 | 5709601 me again
me again's picture

Apparently not ! LOL.  Dumbfucks. there's no cure for stupid. how could they believe Switzerland would bleed itself dry for their convenience ?

Mon, 01/26/2015 - 23:44 | 5709244 Gringo Viejo
Gringo Viejo's picture

, I believe it's the "AUSTRIAN DO-OVER PARTY".

Tue, 01/27/2015 - 00:29 | 5709328 RaceToTheBottom
RaceToTheBottom's picture

Austrian Keynesians or Keynesian Austrians....

 

Tue, 01/27/2015 - 00:57 | 5709438 AlaricBalth
AlaricBalth's picture

I'm guessing Moral Hazard is thrown out the window.

These days when people hear "Moral Hazard" they think it refers to some country singer from Dothan, Alabama.

Tue, 01/27/2015 - 09:55 | 5710261 DriveByLurker
DriveByLurker's picture

"These days when people hear "Moral Hazard" they think it refers to some country singer from Dothan, Alabama."  

I wish I had said that...and I soon will.

Tue, 01/27/2015 - 05:50 | 5709617 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

When it comes to profits, banks and investors are staunch Capitalists. When it comes to taking losses, they are suddenly keen to borrow from Socialism. This "Freedom" party is essentially advocating for profit to be kept private and losses to be unloaded unto the public and taxpayers.

Tue, 01/27/2015 - 06:26 | 5709769 silvermail
silvermail's picture

I have my own investment rules. I always carefully listen to what banks recommend and what they offer their customers. And I always do the opposite.
And I always win.
A few years ago, banks was strongly suggest all customers to get loans in Swiss francs.
I told all my friends to do the opposite and they took loans in euros.
Now my phone is broken every day. Every day I hear words of thanks from my friends.
But it is not only just words. Yesterday I was presented with a bottle of good whiskey, as thanks for my good advice!

Mon, 01/26/2015 - 23:16 | 5709135 Son of Captain Nemo
Son of Captain Nemo's picture

Ode to a terminally ill and diseased wreck that is the EU

Ring-a-round the rosie,
A pocket full of posies,
Ashes! Ashes!

  They all fall down
It won't be long now for Spain and italy!
Mon, 01/26/2015 - 23:19 | 5709148 NoDebt
NoDebt's picture

Ah, the simple joys of Socialism.

Mon, 01/26/2015 - 23:34 | 5709214 Ward cleaver
Ward cleaver's picture

I was playing poker in Vegas and had A high flush but lost
To a full house. Everyone at the table gave me back my money

Mon, 01/26/2015 - 23:39 | 5709233 Hulk
Hulk's picture

Take it easy on the beaver Hugh...

Tue, 01/27/2015 - 04:26 | 5709681 Anasteus
Anasteus's picture

Who knew one couldn't trust a banker...

Mon, 01/26/2015 - 23:21 | 5709156 holdbuysell
holdbuysell's picture

You. Just. Can't. Make. This. Stuff. Up.

What's next?

Mon, 01/26/2015 - 23:24 | 5709176 CrazyCooter
CrazyCooter's picture

Just a hint ... but ... it involves a donkey, a tax payer, and they sell tickets.

Regards,

Cooter

Mon, 01/26/2015 - 23:28 | 5709184 NoDebt
NoDebt's picture

Tijuana donkey show!  Sweet.  Haven't been to one of those in a long time.  I mean ever.  Yeah, ever.

Mon, 01/26/2015 - 23:34 | 5709206 ThroxxOfVron
ThroxxOfVron's picture

Then what's with the t-shirt?   Mom get it for ya in her vacation?

Mon, 01/26/2015 - 23:22 | 5709158 overmedicatedun...
overmedicatedundersexed's picture

grow a pair and default. let them come get it. molon labe..or be a bitch.

Mon, 01/26/2015 - 23:25 | 5709170 Joebloinvestor
Joebloinvestor's picture

"We need a general scheme ..."

 

that is what fucked ya in the first place.

Mon, 01/26/2015 - 23:25 | 5709178 holdbuysell
holdbuysell's picture

On another note,

It's been noted that there are emerging market countries and others that have taken on trillions of debt denominated in USD. With the USD appreciating as it has been, payments get quite difficult in the local currency.

The fireworks from that mushroom cloud could make the SNB move look like a flea fart.

Food for thought.

Tue, 01/27/2015 - 00:35 | 5709394 Clowns on Acid
Clowns on Acid's picture

Yeh .. and add in collapsing commodity prices (softs and industrial metals) into to your algo.

Mon, 01/26/2015 - 23:26 | 5709180 NoDebt
NoDebt's picture

"I do not think that someone who, for example, in 1995 with confidence on economic development in Austria and which resulting hard currency has taken out a loan had to reckon with the fact that 15 years later the prevailing policy begins to demolish the now common European currency intentionally by the break even given all the rules. "

It may come as a surprise to some of you on ZH to learn that I was not always the nice, sweet cuddly guy you know now as NoDebt.  In 1995 I was still a pretty despicable person, by most measures.  And I still pay the price for that behavior today.

Therefore, I say with no small measure of authority on the long term consequences of bad behavior:  FUCK.  YOU.  ASSHOLES.  Pay the price and learn from the experieince.  I'll give you sympathy.  I'll give you understanding.  I'll give you moral support.  But the last goddammed thing I'll ever give you is a bail-out.  If I did, you would just go do it again.

Mon, 01/26/2015 - 23:30 | 5709195 CrazyCooter
CrazyCooter's picture

This sums up why my life goal, for the rest of my years, is simply to not borrow money ever again.

I am not sure the banking elite understand what they are really doing to themselves in this regard and may not figure it out until debt is reviled by the population which require it to be enslaved.

And that, as they say, will be a hoot and a holler.

Regards,

Cooter

Tue, 01/27/2015 - 00:14 | 5709344 NoDebt
NoDebt's picture

Cooter, you hit it exactly.  In an era where everyone is telling you to go into debt (pretty lease with sugar on top!) it's probably best to avoid that trap.  Maybe someday there is universal debt forgiveness.  Maybe not.  But people who practice the basic principle of deferred gratification somehow always seem to end up in a better place than those who follow the "I don't care, give it to me now!" path, no matter the macro-economic/political circumstances.

Tue, 01/27/2015 - 02:40 | 5709567 CrazyCooter
CrazyCooter's picture

I have said this in other places, perhaps in other words, but debt forgiveness will equal hyper-inflation or currency collapse. Who would want to hold an "asset" in a currency that was absolving that asset - to zero. Can't work in a fiat money world ... curious if you disagree.

Instead, we will get really scary debtor prisons. They haven't floated that shit yet, but it will happen, because when the debts can't be paid, it is the last line to cross before they are wrote off across the board. And those places will spread you open like an x-mas turkey. Kind of like how the loan sharks work, just assholes instead of knees. Time honored I guess ...

Regards,

Cooter

Tue, 01/27/2015 - 05:06 | 5709723 OldPhart
Tue, 01/27/2015 - 08:43 | 5710004 gatorengineer
gatorengineer's picture

Heres the thing No Debt, and I enjoy your posts.   When the shit hits the fan, its going to be people with tangible assests that get hit the hardest.  Housing -Property taxes, 401ks a one time tax.  It started with  bank accounts and ZIRP / NIRP (corrected for inflation),  Its progressing to the attempt to repeal the 529 plans tax free gains.  Borrow money for college and its forgiven...  the Mantra is be responsible be punished, be irresponsible the debt will get socialized....  Only way I see around it is physically small high velue assests that you can possess....

Tue, 01/27/2015 - 00:58 | 5709349 RaceToTheBottom
RaceToTheBottom's picture

The WS'ers are tooo stupid to know history.

All the data is there.  Depression generation provided much data of changed behaviour.

 

As for me, it goes way beyond personal debt.  I hope to go out of my way to never use, in any way WS firm SCUM.  I will try and get others to not use WS Scum.  

I use BOFA now to funnel my company money through so they know how much they are missing.  I am looking for ways to do away with even that level.

My goal is to walk into a real estate transaction and drop a kilo or two of gold on to the table instead of some WS Scum mortgage....

Mon, 01/26/2015 - 23:29 | 5709188 Caleb Abell
Caleb Abell's picture

I used to read The Onion, but the stuff on ZH is funnier.

Mon, 01/26/2015 - 23:34 | 5709209 Bill of Rights
Bill of Rights's picture

I wonder if these people are excited about the $3000 dollar per ticket Dumbfuck Bowel next week?...somehow I doubt it.

 

Big story in the LA Times says homeless camps are spreading beyond their traditional boundaries in Los Angeles.

Mon, 01/26/2015 - 23:35 | 5709213 stant
stant's picture

I am opening a pay day loan like biz there called credit assansalt

Mon, 01/26/2015 - 23:49 | 5709260 Bennie Noakes
Bennie Noakes's picture

To borrow in one currency when your income is in another is just asking for trouble. Of course governments do it all the time (which still doesn't make it a good idea). But to expect taxpayers to bail you out when your stupid speculation goes wrong is just vile. Of course, governments do that all the time too.

But Austrian borrowers could try arguing that the loans were unconscionable:

http://en.wikipedia.org/wiki/Unconscionability

A sympathetic court might rule that the loan was invalid and doesn't need to be repaid. Those loans really were unconscionable, but somehow I doubt that the courts will acknowledge it.

Mon, 01/26/2015 - 23:56 | 5709273 hooligan2009
hooligan2009's picture

see...here's the thing... funny money central banking means that all these borrowers should be made whole by simply printing the bank notes for their losses

it's about as meaningful as central bank intervention

and since all central banks wear big pointy hats with a large letter "D" on them, those who made losses should be made whole in a currency of their choice...either dollars, pounds, euros, yen...take your pick

and if you make a bad choice on paper? well it is only paper and it doesn't matter...it's just QE in a different direction!

Tue, 01/27/2015 - 00:31 | 5709337 R-502
R-502's picture

These assholes didn't bitch much when they were swimming in money, I hope they choke on it :P

Tue, 01/27/2015 - 01:25 | 5709472 atomicwasted
atomicwasted's picture

Ah, the Austrian "Freedom" Party.  I remember when conservatives and even some libertarians were stepping all over their dicks to talk about how awesome these folks were, until Jorg Haider started talking about his Nazi sympathies.

This is a stellar example of how right-wing populists don't give a shit about freedom or liberty.  They care about keeping "them" (which vary depending on location) out or down, having plenty of lawnorder, and ensuring the trough is full for themselves instead of for the "Free Shit Army" or the local variants thereof.  The fact is, right wing populists are just the Free Shit Army, Angry White Man Division.

Tue, 01/27/2015 - 04:06 | 5709652 shouldvekilledthem
shouldvekilledthem's picture

This is the second time in 7 years that they pull the exact same scam on the less bright eastern europeans.

I cannot decide if the people who took on the CHF denominated mortgages despite history or the the bankers/politicians are more fucked up.

Tue, 01/27/2015 - 04:26 | 5709678 Jano
Jano's picture

This is a clear reason, why is Euro a failed project.

EU/ECB cannot put on the table a common position towards a swiss franc. I mean some people get the bail out (permission from Brusseles to local ministries of finance to take the measures) and some do not.

And this is one simple task, compared to more difficult economic questions.

So dear Greeks, jump out.

Tue, 01/27/2015 - 04:51 | 5709708 williambanzai7
williambanzai7's picture

Is it the Von Crap family's?

Tue, 01/27/2015 - 06:48 | 5709788 slowimplosion
slowimplosion's picture

LOL.  Hear ye, hear ye.  Let it be proclaimed that "investors" (gamblers) shall forthwith be made whole should any of their speculations turn out to be unfortuitious.  And furthermore, when they are so fortunate as to profit from their "investments", let there be no tax burden.

Hear ye, hear ye.

Tue, 01/27/2015 - 07:00 | 5709802 SMC
SMC's picture

Pathetic.  

However, this may do more for their demand side than bailing out the banksters..

 

Tue, 01/27/2015 - 07:58 | 5709874 John Moke
John Moke's picture

It's kinda hard to agree on a statement by the Austrian Freedom Party. Especially when they are trying to make political gains. But...

Overall it seems that we are talking about private and business credits worth EUR 29 - 32bn (!), in Austria only. And that - for example - the City of Vienna signed some new Swiss Franc credit only last October. Overnight it became 20 - 30 % more.

Besides that the banks offered weak stop/loss-contracts to private/business clients to get them out of SF in case it drops below a certain rate (if there would have been enough time), one might wonder why noone seems to have hedged (I guess thats the right word) against the falling SF...

Especially when banksters constantly defend derivatives as necessary tools to avoid situations like that, why were these tools not used here? At least for a part?

But for secondguessing the banks the economical knowledge of Mr. Kickl is too limited, therefore its much easier to blame politicians for their "Monstorous Monetary Policy". Well, honestly, since not one single member of the Austrian goverment seems to have any clue of whats actually going on moneywise, its easy to blame them...

Tue, 01/27/2015 - 09:21 | 5710101 theyjustcantstop
theyjustcantstop's picture

you wonder why the snb did what it did, they had everyone on earth, from soros to, to home-owners in Austria shorting their currency.

this should be a warning, globalized home loans.

this is going to be like Obama-care, go to your doctor in iowa, and your doctor calls dc. on how best to treat you.

you'll go to your local banker, he'll call district fed. office, then they'll direct him to the currency they want you to loan in.

 

Tue, 01/27/2015 - 12:47 | 5710307 a common man
a common man's picture

+5

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