This page has been archived and commenting is disabled.
"Spectacular Developments" In Austria: Bail-In Arrives After €7.6 Billion Bad Bank Capital Hole "Discovered"
Slowly, all the lies of the "recovery", all the skeletons in the closet, and all the bodies swept under the rug are emerging.
Moments ago, Austrian ORF reported that there have been "spectacular developments" in the case of the Hypo Alpe Adria bad bank, also known as the Heta Asset Resolution, where an outside audit of Heta's balance sheet exposed a capital hole of up to 7.6 billion euros ($8.51 billion) which the government was not prepared to fill, the Austrian Financial Market Authority said.

As a result, according to Reuters, the bad bank that was created in the aftermath of the Hypo collapse, is itself about to be unwound, as the bad bank itself goes bad!
"Austria's Financial Market Authority stepped in on Sunday to wind down "bad bank" Heta Asset Resolution and imposed a moratorium on debt repayments by the vehicle set up last year from the remnants of defunct lender Hypo Alpe Adria."
In short: Austria just cut off state support of what was until this moment a state-backed, wind-down vehicle and a key pillar of trust in what was already a shaky financial system.
Not surprisingly, today's shock announcement comes a week after Austria's Standard reported that up to a five billion euro impairment at Heta would take place, a report which the Finance Ministry called "pure speculation" and noted that the Bank was in good health. According to Standard, among the reasons for the massive capital shortfall was the plunge in collateral as a result of the continuing crisis in South East Europe which meant that the value of "real estate in South East Europe, shopping centers and tourism projects, deteriorated massively" driven largely by the appreciation of the Swiss Franc. "As a result, the volume of bad loans has increased significantly."
Everyone was wondering who the first big casualty of the SNB's currency peg failure would be. We now know the answer.
Further from Reuters, the finance ministry confirmed this in a statement, adding Heta was not insolvent and that debt guarantees by Hypo's home province of Carinthia and the federal government were unaffected by the move.
The problem is that going forward that nobody knows who insures what, what various other state and quasi-state guarantors suddenly unclear as to who is responsible for what: the province of Carinthia guarantees back €10.7 billion worth of Heta debt. The federal government backs a 1 billion euro bond issued in 2012 that the ministry said would be honored in full.
As a result of the "sudden" capital deficiency, there will be a moratorium on repayment of principal and capital lasts until May 31, 2016, giving the FMA time to work out a detailed plan to ensure equal treatment of all creditors, the FMA said in a decree published on its website.
Perhaps a badder bank to rescue the bad bank?
According to Reuters calculations, More than 9.8 billion euros worth of debt is affected, including senior notes worth 450 million due on March 6 and 500 million on March 20.
But the punchline, is that while the world was waiting for Greece to announce capital controls, or a bail-in over the past week, it was none other than one of the Europe's most pristeen credits (one which until recently was rated AAA/Aaa) that informed creditors a bail-in is imminent: "The finance ministry noted that creditors can be forced to contribute to the costs of winding down Heta - or "bailed in" - under new European legislation that Austria adopted this year so that taxpayers do not have to shoulder the entire burden."
Bloomberg confirms that the ministry announced that under new EU rules means creditors can be forced to share losses.
Of course, this being Austria, and the Creditanstalt, aka the bank which failed in 1931 under almost identical circumstances and set off the dominos that led to a global financial crisis which in turn bank fanned the flames of the Great Depression, also being Austrian, suddenly everyone is asking: "what just happened and what happens next?"
- 71763 reads
- Printer-friendly version
- Send to friend
- advertisements -


Digital Wildfire!!
Do you know whats in your wallet?
RIPS
Whoops there goes another rubber tree plant. Kerplunk!
Someone needs to explain to Austria that, once you take all the liabilities from regular but insolvent banks and put them into one "bad" bank, that you then own the bad bank and those liabilities and cannot disclaim them. Surely that rule is written down somewhere? Otherwise, who the hell puts their money into the "bad " bank?
In April 1931, Germany announced a customs union with Austria. France protested that such a union was illegal under the Treaty of Saint-Germain, by which Austria had promised to maintain its independence from Germany. The dispute was referred to the World Court, but in the meantime the French, to discourage such attempts at union, recalled French funds from both Austria and Germany. Both countries were vulnerable. On May 8, 1931, the largest Austrian bank, the Credit-Anstalt (a Rothschild institution), with extensive interests, almost control, in 70 percent of Austria's industry, announced that it had lost 140 million schillings (about 520 million). The true loss was over a billion schillings, and the bank had really been insolvent for years. The Rothschilds and the Austrian government gave the Credit-Anstalt 160 million to cover the loss, but public confidence had been destroyed. A run began on the bank. To meet this run the Austrian banks called in all the funds they had in German banks. The German banks began to collapse. These latter began to call in all their funds in London. The London banks began to fall, and gold flowed outward. On September 21st England was forced off the gold standard. During this crisis the Reichsbank lost 200 million marks of its gold reserve and foreign exchange in the first week of June and about 1,000 million in the second week of June. The discount rate was raised step by step to 15 percent without stopping the loss of reserves but destroying the activities of the German industrial system almost completely.
Tradegy and Hope, by Carroll Quigley, page 268
The sign says: "HypoGroup." Does that mean they are "under capitalized?"
selective beta test before the big show begins
"Austria? Lets put another bank on the barbie"
Is this good for American stocks?
Im picturing Arnold's face from the movie Total recal where he runs out of air on Mars.
I am hoping this shit show can keep itself together for another week. I've gotta buy a car, and would love to get good cheap liquidity while its still up for grabs.
Anything Goes
Haircut anyone?
How can a bad bank be bad?
How can a badder bank be badder..er than a bad ....bank?
Welcome to the centrally planned extend and pretend!
bullish
So buy a fucking used car. One you can afford. Pay cash. Just don't tell any cop who stops you on your way to pay for it that you have some <<gasp>> money in your pocket. Or does that only make you a terrist in the USSA?
Just get a car loan with a negative interest rate.
IN AMERIKA, BANK PAYS YOU!
of course - eveything helps!
More likely Bankschnitzel. We are at the meat pounding stage.
Is this the Black Swan event that starts the market crashing finally?
No. It's all Bullshit!!!
Nahhhh.. It's REAL shit!
We bailed-in some folks...
No, that would imply something bad for the bull market. But we all know what whenever anything bad happens to the market the central banks rescue us from the consequences of our actions.
So, anything that could possible infer something bad for the market would be bad for the market making it good for the market. There just isn't anything that could possibly happen that would be bad for the markets since that would in fact be good for the markets, a dichtomy of finance which we know is a statistical improbability.
Just print more credit that acts as money and double down.
Always double down.
.
You're another pom pom fucking idiot
' market ' ?
LOL ! that's a good one
http://kingworldnews.com/chris-powell-3-1-15/
They just need a hypodermic syringe with some capital injections. Tap that vein!
We bailed in some folks.
HypoGroup is a medical clinic where you go for a shot of heavy-duty tranquilizer. An anaesthetic for all monetary concerns.
They're running out of rugs to sweep this shit under...
140.000.000 Austrian Schilling (ATS) were a bit more than EUR 10.000.000.
EUR 1,-- = ATS 13,7603
Might be worth a bit more than that today. Perhaps that what hat he was saying?
It's amazing to me how the Rothschilds and their ilk have never been forced to drastically change their tactics. The bank moves are the same, the economic manipulation is the same. the false flag attacks are the same, the propaganda is the same. They just repeat everything on a 20-40 year cycle. How pathetic does that make the masses for buying this shit every time?
werks donit?
The more I learn of the events that led to WW2, the more the playbook becomes apparent. They are still running off of the First Edition. There does not look to be a revised edition ever printed.
1. gang up and kick the shit out of a country.
2. redraw the geographical maps to separate millions of people from their homeland.
3. butcher those people in an attempt to make the targeted country "invade" to save their people.
4. declare said country "evil" and invade with a world wide coalition of banker controlled serfs.
5. divvy up the spoils between the puppets, and create a new target.
But, but, Butt - Things are so much better arranged now. We must be safer than the Europeans were in 1931.
Let's see:
1. Customs Union between Germany and Austria. Now there is a customs union among all EU members. Safer?
2. Each country in the EU has its own Central Bank and the EU has its European Central Bank which dictates monetary policy for all in the Euro Zone. Plus there are many retail banks in each country, all dependent on their Central Banks, which are dependent on the European Central Bank. There are many cross-guarantees among the banks, meant to make each more secure, but spreading insecurity around. And then there are the cross-guarantees between the ECB and US Federal Reserve. The whole fleet is roped together so all float together or all sink together.
3. Bankers and markets are so much more sophisticated than in 1931 that such meltdowns as 1929 and 1931 could never happen again. Why, the USA enacted Glass Steagall to separate retail banks with customer deposits from insurance companies with policy-holders' premium payments on hand from Wall Street investment banks and speculative trading.
What's that? Glass Steagall was repealed in 1999? What happened next? Oh, yeah, meltdown in 2008 and contagion in Europe in 2010.
But computer algorithms were touted as being able to predict risk and allow risk avoidance. Oh, well, even quants and algos can make mistakes.
4. Moves by the EU have made all countries in the Euro zone safer by having all sign guarantees of each other. See "European Financial Stability Facility ("EFSF")" of 2010, and "European Fiscal Compact" or "Treaty on Stability, Coordination and Governance in the Economic and Monetary Union", also referred to as the TSGG or "Fiscal Stability Treaty", which came into force on April 1, 2014. (April Fool's Day, 2014, Hmmmm....). The Fiscal Compact required all Euro zone members to keep fiscal deficits below 3%, and debt to GDP below 60% (or move at a predetermined minimum rate to reduce debt ratio accordingly). France and Italy (let alone Greece) are complaining that the ratios cannot be met.
After the EFSF was announced, an analyst looked at it and pointed to a basic flaw - if a weaker member of the Euro zone defaulted, the remaining guarantors were left bearing liability for more debt, risking the next-weakest members, causing some of them to default, eventually leading to a cascade of defaults in which the richest members of the Euro zone were left bearing all the liabilities of all those who had defaulted, and risking the financial stability of even the richest members of the Euro zone.
5. Tying all members of the Euro zone together with one climbing rope thus risks all members of the Alpine climbing team when one member loses its footing. Annnd.....They're gone.
6. The 2010 meltdowns of the PIIGS were "remedied" by "bailouts" funded by the Troika of ECB, IMF, and EC. But the "bailout" funds went mostly to purchase worthless sovereign bonds issued by the PIIGS and IOUs issued by banks in the PIIGS. In the case of Greece, at least, those sovereign bonds and IOUs were held mostly by French, German, and Italian banks, and if the banks were forced to write them down to market value, the banks would be insolvent. So the bailout funds "for Greece" went mostly to French, German, and Italian banks, while the Greek treasury shouldered the responsibility for payment of all principal and interest, and austerity was imposed to make loan repayments first priority of government budgets. The Troika put the bonds and IOUs on their balance sheets as valuable assets, even though it was clear that they could never be paid off. Worse, austerity has plunged Greece, Portugal, Spain, and Ireland into depression, while Italy sails on like the Titanic.
6. For a year or more, Mario Draghi of the ECB has been pushing for ECB Quantitative Easing, saying that it would lead to renewed economic growth in Europe (very doubtful, given the result of extensive and failed QE attempts in Japan and the USA). Draghi now has his dream realized, with ECB QE to begin this month, purchasing bonds from Euro zone central banks and even corporations (but not Greece, at least before July 2015). This effectively gives each Euro zone country a press to print Euros up to the amount that the ECB will pay for bonds from that country. If they can get away with it, the printing countries should issue bonds with zero or negative interest rates (ZIRP or NIRP compliant) with maturity dates set sometime in the next century. EXTEND AND PRETEND, BABY!
Now it seems that Draghi's QE may be just the thing necessary to stem the hemorrhages to the banking systems. I suspect Draghi foresaw the current problems and wanted to position the ECB to cover the emergency liquidity requirements that surely would come. This will allow the illusion of liquidity and financial soundness to be maintained in the Euro zone, or so it is hoped. Heck, if it works for the USA, why not in Europe.
And if all else fails, the banks can now appropriate all the deposits that their customers think they have safely stowed in the banks. Cyprus was a successful test run, and legislation is in place to allow customer bail-ins. Now it's a race between depositors and banksters to grab the money. "Aaaannnndddd They're Off!!!!!!!! At the first post, depositor Number One leads by a nose, having stolen an early lead at the ATM overnight......"
A few days ago someone posted a link to a movie on youtube. Titled, Adolf Hitler: The Greatest Story Never Told. Talk about long views/reads(much text). Six hours or three, 2 hour versions. It attempts to tell the story of Hitler in a positive light, and how the only thing they did wrong is shake off the yoke of the jewish banker. A nearly impossible task considering the little maggots are embedded in every rotting branch of Government worldwide. It's what they DO!
What is doesn't mention is what happened to the Brownshirts, how the Ghettos were formed, or even the powers behind the people that backed him into power.
There must be a good reason the Zionists hated him as much as they did.
Ding, ding, ding, we have a winnar! Both WWI and WWII were caused by the moneychangers of the time, who just so happened to be alive and well (their money and bloodline) and operating today.
layman_please , did you read the full or the edited version?
From Amazon,
Matt H. Arsenault says: this is not the full version of the book btw..........the 1st half was destroyed by the publishers...who wont republish. Thats why old original full copies go for hundreds of dollars online, Quigley will even tell you this himself, you can find the interview online.
Bateman says: "Quigley will even tell you this himself, you can find the interview online"http://www.youtube.com/watch?v=OxVlBVXwU5k -- 8:45 on
currently i'm reading the one that is widely available from https://archive.org/details/TragedyAndHope_501 , and elsewhere, on my kobo but i have also read the original 1966 print which i found at my local library, and which previously belonged to the world bank (they have stamped it, no idea how this copy ended up here). i will check the original print against the ebook to see if i can find any significant differences. also check http://www.tragedyandhope.com/which-versions-of-tragedy-and-hope-are-the...
I started working out of cash and into inventory and silver about six months ago.
First good decision in a looong time;)
Same here Hoff. A bit nerve racking converting so called safe assets, but I just can't see a path where this system winds up on its feet...
You must have nerves of steel, I started doing that six years ago.
Frankly, I have never understood how a Bad Bank can take all the bad liabilities and remove them from the system, allowing failed banks to off load the junk and continue on.
By the laws of physics, the losses still exist, only in a different place. The bag is now held by this Bad Bank, how does it meet these bad debts and obligations that bag holders must be screaming for to be made good.
Grants from the Fed.
Jack Burton, an excerpt that may somewhat enlighten:
"Pundits talk about the toxic assets in the banking system as if somehow they were infectious, and the good assets would become infected by the bad assets. One envisions the mould on one piece of cheese taking up residence on an adjacent piece in the frig. Or that somehow if the bad, hard-to-value, assets were moved somewhere else, both sets of assets would be easier to value and the banking system somehow more sound. We don’t think the bad assets are infectious."
http://www.voxeu.org/article/goodbad-bank-debate-new-proposal
Burdened by post graduate degrees in Business and Economics, I used to buy this BS. Instead, I now realize it is just another way to extend the ponzi, by convincing gullible investors that the problem is magically solved.
"Frankly, I have never understood how a Bad Bank can take all the bad liabilities and remove them from the system, allowing failed banks to off load the junk and continue on."
I'm in a similar position... I've never understood why, for example, beginning at sundown on Sunday, September 13, this year, & culminating at sundown on Tuesday, September 22, I need to flagellate myself in Awe & Repentance about nothing in particular that I've done, perpetrated upon humanity, or plan to [aforementioned] in the process...
Color me DAFT!!!
Simple actually...as the currency collapses the "meaning" of the debt disappears.
Unless of course you have a DEFLATION.
Then you'll have to mark the debt to the market lest people lose confidence in the entire banking system...and indeed the country itself.
Hank Paulson® also took Fannie and Fred "off balance sheet" in effect making the entire war effort pay for DC's malfeasance...which the US Navy has now discovered is indeed true as defense PROCUREMENT has increased ten fold in a matter of just a fiscal year.
Never too many Marxists in this world. "Quantity is a quality all its own."
So even very small things (an "i-phone" por ejemplar) if produce in sufficient quantity can indeed "create their own market.". In the 90's the term was " scalability.". That's Karl Marx.
Howz that work if I want manufacture WIDGETS?
https://www.youtube.com/watch?v=YlVDGmjz7eM
Totally superflouous mention of Marx. Nothing about what you described can be considered "Marxist" other than the fact that you dislike it.
the Federal Reserve itself is a "bad bank," at least partially. they bot a lot of the devalued sub-prime crap. and who's to say the treasuries they own aren't crap?
Marked to market, the Treasuries Bernanke bought have huge gains currently. Could be the genius trade of the century.
"Digital Domain"...not just in the collection of information but how that information is then distributed and by what " means."
These are just ones and zeros after all...
And when they quietly write them off... who's to know?
Debt Gone!
2+-2=5 still wrong
There is a question of ethics...and indeed perhaps existentialism itself.
Simple explanation. It's all fake!
Jack, I have a suspicion that you don't understand because you probably try to not live your life via fraud.
Indeed! I have no foraml ecnomic education. I have always lived in the world of work, save and compete. Obviously this has ill trained me to undestand why the laws that govern my finances, do not govern on the larger scale.
I suspect money printing is the difference. I must work and save, produce value or I go bankrupt. While bankers seem immune from all this.
I remember this game. It is called pass the parcel. When the music stops you get the privilege of unwrapping an old piece of worthless, ripped newspaper, then pass the parcel on. The music then starts again. This process is repeated until everyone is sufficiently bored. Eventually the music stops and one winner is left with an underwhelming prize like a book containing dot to dot puzzles.
The key is to relieve the concern of private sector investors. The uncollectable liablilities are transferred to a "bad bank" where they are now guaranteed by the public treasury, and shown on the bad bank's books as assets. Presto - private sector saved; faith in markets saved;taxpayers screwed; and politicians, economists, and bankers all pretend the financial system is safe and sound. Add ZIRP and perpetual roll-overs, and the carrying cost of the uncollectable "assets" is held to zero.
If you're a bank and you see that you have so many liabilities piling up that you may be insolvent, you get scared shitless. (It might affect your bonus!) You start to think "maybe engaging in reckless behavior can have consequences". You might even start to act in a semi-responsible fashion, trying to get those liabilities under control, not taking ridiculous risks with assets greater than your entire country's GDP.
That's simply not acceptable!
So you divide the bank into "good bank" and "bad bank". Since the good bank doesn't have so much shit on its books, it's good to go! Consequeces to actions? Ha! Full steam ahead baby - mama needs a new pair of diamond shoe multi-nationals! I.e., the good bank isn't good because it's solvent - that's just what the masses are led to believe. Why it's really considered good is because it will return to conducting itself in a totally irresponsible manner, keeping the fraud that is modern banking going. And the bad bank isn't bad because it has solvency issues, it's bad because it's not making the large risky bets that the good bank is.
Gamblers (even ones with get-out-of-insolvency-free bail-out cards in their back pockets) need something to gamble with. The split of assets into good bank and bad bank means that the good assets will now be psychologically/individually-speaking "available" to be gambled with (whereas in the combined bank those assets were being "oppressed" by such ridiculously out-dated concepts such as "fudiciary responsibility", or at least "fear").
Risk provides leveraging/inflation while derisking provides deleveraging/deflation, and bankers as a class "suffer" under the latter (while the masses suffer under the former), so the bankers want it to be Risk-On Forever, and the masses will be told whatever they need to be told to keep them oblivious to the real situation. Of course, Risk-On Forever is and never was a real possibility, and the only questions are "when" and "how bad" the party is going to finally end (and how much collateral damage there will be).
Not only is it based somewhat on psychology on the banker's side, but on the depositor's side as well. From the article linked by Latina Lover:
(Though the source of this is still fraud -- fractional reserve banking where your deposits are _not_ safely stored in the bank. Without that fraud there would be no bank runs, even at a bank in danger of going out of business.)
Good/bad bank reorganization can also be a way to benefit banks by screwing shareholders and bondholders, depending on how it's done (which will of course depend on who exactly are the bagholders at the time -- if they have political influence then -- surprise! -- they won't get screwed and may in fact get indirectly bailed-out themselves, if not -- wouldn't want to be them).
Somebody is buying Italian debt, which yield less than U.S. debt. The great fool waiting for a greater fool is the buyer.
Insolvent banks need to close, moneys owed clawed back from asset sales and from bank management and their families. Put those motherfuckers on the street where they belong without a dime.
Any politicians in the immediate vicinity will lose their job and all their assets also.
Grimaldus
Someone please explain this for me.
Is this Austrian bank (that uses the EURO), lending in Swiss currency? Otherwise why would their collateral, ""real estate in South East Europe, shopping centers and tourism projects, deteriorated massively" driven largely by the appreciation of the Swiss Franc" be affected? In other words why would the debts of a EURO bank lending in Euros be affected by the appreciation of the Swissie?
The austrian bank gave mortgage loans in Swiss Francs (low interest there) to people in SE-Europe countries. Since the peg is gone the cost of the loans in Swiss Francs increased by 20% -> more mortgage loans are underwater. And of course the bank wasn't hedged against the Swiss Franc, bacause of the SNB guarantee to peg to Franc at 1,20
BNP Paribas circa August 2007.
Cue the Global Carbon Tax rheteric, We need to find some money!!
Yes, everytime a country or even a municipality introduces some kind of a licensing fee, it has ZERO to do with safety and EVERYTHING to do with finding a fresh stream of money.
As a 7 year old, I rode my bike around with no helmet. Never an issue. Now, you get caught with your kid without a helmet and it's a fine, along with having to appear in court over child endangerment, and then having to spend $30 for a helmet which is nothing more than a piece of styrofoam made in China.
A global carbon tax is a way to look for extra cash by the government.
I figure once it gets too ridiculous, I'm just gonna drive my car around unregistered.
Learn to speak Spanish and you can do that now.
pods
"Hey Esse, am I driving OK?"
https://www.youtube.com/watch?v=kCXqbjo6cb0
If you get pulled over, crack the window a inch and rub your balsa de wabbos......
I posted a link last week (goldcore?) that stated BOE had stolen 20% of Austria's gold.
We are all in GA Ga land .ho is next ? Ireland NAMA the biggest property REIT in the world. There is a new crack in this manufactured overly every day.
We are all in GA Ga land .ho is next ? Ireland NAMA the biggest property REIT in the world. There is a new crack in this manufactured overly every day.
Europe: a financial Potemkin Village...
World affecting events like this seem to be occuring on a weekly basis now... not good.
Bank runs are inflationary and good for the markets. Right Mr. Yellen?
I personally prefer beer runs to bank runs, but what do I know?
The main take-away tidbit I gleaned from LTCM was that paired trades quickly become unpaired during a run. Let's see what happens in the derivative universe.
Counter party risk bites..., big time.
Taxpayers shouldn't be required to 'bal in' any of these derelict fukkerz.
The means to wind up a business are just being evaded as always. Bring the effing lot down.
I agree with bail ins as long as they begin with wiping out the current shareholders whose shares are then allocated pro-rata to either the depositors or bond holders who are hair cutted.
Byte me, I'm afraid taxpyers and esp your 401(k)s are sitting targets for these gangsters.
Yes they are, but I don't have a 401k, have spent several decades decoupling my retirement pots from conventional sitting duck cross-hairs (on the basis of evolving demographics mostly), and just wish that more of my contemporaries were less willfully blind to what is coming.
But hey, maybe the state will provide (NOT)
More likely scenario, its already gone and people are easily placated by digits on a screen.
No no, those digits on a screen still hold value to the paper pushers, Full faith and credit and all. Given the right circumstances, those digits will be shifted to somebody else and it will be a digital robbery that is sold as "protecting" the robbed.
This is why capital requirements should force some portion of debt to be convertible bonds.
Should be good for 30 S&P points tomorrow!
Bank's name will be changed to Hypo Dermic after they sink their fangs into their savers' accounts.
One down, thousands to go. I hope they take JPM with them.
JPM is the greatest of current criminal enterprises. Even the vampire squid Goldman stands in awe.
Think bigger, Why take down thousands when we only need to take down one, BIS
This is bullish! Looks like some debt might get wiped out which means that they can print MOAR instead!!
<pats front shirt pockets then pants pockets, looking around manically>
HAR ze HAR HAR
"Creditors" ... nice neutral euphamism for customers with accounts in said bank.
"Newspeak" like future citizens for immediate welfare bums.
Customers with account in said banks...nice euphemism for screwees.
I wish they'd use it more. When you deposit cash in a bank, you are loaning it to that bank to do whatever they like with it. It is no longer yours until you withdraw it. It is the bank's. Having a bank account is being an unsecured creditor in reality. I wish more people understood this. Instead, they use creditors when they don't want the people who are getting screwed to know it is they that they are talking about, and when it is something that won't piss people off, they use depositors. Well, depositor == creditor.
A trillion Euros to the rescue.Greece and Austria situations are only part of the problem.Now you see the timing of more money printing in Europe is not just a coincidence.Plus the European Central Bank is backstopped with swap lines from The Fed.What could possibly go wrong?Now you know why Europeans do as their told by Washington.They have become debt slaves to America's corrupt system which China and Russia are seperating themselves from and starting a parallel system.
Indeed! Is this not exactly what the new ECB QE was meant for. 1.1 trillion Euros, they can fund this bad bank in an eye blink and still have 1.092 trillion left!
You took the words right out of my mouth! SuperMario has a real woody. And remember, he did not ever start to open his wallet.
If you're right and I think you might be then is Hypo the Bear Stearns of this impending disaster or Lehman?
I think they may be pulling a Lehman. They did say the crediters are going to eat some of this.
China and Russia are seperating (sic) themselves from and starting a parallel system.
China has more worthless debt than anyone by far. Russia is circling the drain because oil is their only product and they're run by gangsters who only care about squeezing out their share. Surely, that much is obvious to the clear-sighted.
If you're not part of the solution, you're the problem...Eldridge Cleaver.
Austria and Greece are part of the solution, because without them where is the rationale for printing MOAR, MOAR, MOAR...
Glad I transferred most of my assets out of the banking system.
Whats the weather like on Mars ?
But seriously, everyone will still get hurt in a banking collapse, its just mitigating the loss
and damage right now.
We don't know how many counter party chains just broke, but sooner or later Humpty Dumpty will
not be put back together again.
When you don't dare mark anything to market, it's like Boris...
Alotofcrap.
Where is he Winston? Did you give him two weeks off?
Must have struck the motherlode of copper.
The main sub station in St.Petersburg.
We all need a hobby;)
There's still the $1e trillion coin option.
MMT to infinity ... no one else is going to buy the bonds.
You may be on to something. Why stop at $1 trillion? Mint the damn thing with a denomination of $60 trillion. Just think about it. No more debt ceiling, government is like a household or economic self-flagellation nonsense.
Never been to mars.
Maybe I wasn't specific enough. Most of my assets are in farmland, bullion, my factory, and various minor items. Will it insulate me fully? Of course not. However, it is difficult to steal these items electronically. You have to send men out to seize them, which is far less likely than your bank accounts being raided.
How many divisions do you have?
Good point. Obviously less than them. If it comes to that point, I'll at least have the satisfaction of dying like a man.
You know he could have been asking about the factory...
Glad I transferred most of my assets out of the banking system.
Me too, because I had to eat. Wish I had more assets to transfer. Maybe some of you stackers could throw a doubloon my way?
I don't stack gold, so no doubloons. I could spare some Ag eagles if you really want some.
<throws the guy a 1/10 oz eagle>
" a report which the Finance Ministry called "pure speculation" and noted that the Bank was in good health."
"When things get bad, lie!"
This is the world we live in now. A petty criminal, a minor drug offence, a driving violation gets you taken down by a pack of cops and dragged to jail, the court treats you like a filthy scum, and you end up fined a huge amount in order to feed the Police and Courts that just corrected your behavior.
Yet, billions of Euros can be lost, lied about, misused, engineered outside the law, etc. etc. And no man is responsible, the tax payers simply are forced to pay for recovery of investors bad bets.
How can they keep this system going? Here is how they do it.
1. Public Education
2. Corporate Media
3. Goverment funded lie campaigns
4. Fear that if you speak up, you will end up on law enforcement lists of potential terrorists.
"Brainwashing" and "fear" my friends. That is how the Public turns a blind eye to the criminal evil of Bankers, and Governments.
Nope ... 99.99% are just ignorant and have neither clue nor interest what is happening in financial land. They are busy with TV, porn, games, chips, beer and ass licking. Absolutely no need for fear or brainwashing. Since Stonage.
The rest - the also ignorant 0.01% - are busy with the same items just at a more exclusive level. And also ignorant on how these type of imbalances have always - with no exception - ended. Lust and greed always comes first - and fear and sanity last.
Nothing changed since Stonage - except the colors and clothes and furniture and how we name this and that - while - inside - we are still nothing but completely stupid animals which have never ever learned anything from history.
That is the truth and nothing but the truth.
Please enlighten me. You seem to have it all figured out. Why are you not an economic illiterate like everyone else? Please, no bullshit about a gold standard. That would put you squarely in the middle of that 99.99%.
Yes. It's the brick and mortar itself that did the dirty deeds. So fine the banks themselves. How many $$billions in fines did JP Morgan and Goldman pay in the past few years? Never the bankers themselves you see arrested and jailed and fined.
Public Education??? How is public education responsible for collateralized debt obligations, credit default swaps, rehypothecation, etc.? I could be wrong, but I don't believe 2nd grade teachers drafted and passed the Commodity Futures Modernization Act, nor did high school economic teachers advocate for Gramm-Leach-Biley.
Please read my post. It clearly states "How do they get away with it" NOT "How do they do it".
The difference is clear. People don't act against these financial crimes because of their dubious knowledge of what is going on in the world. Here I put blame to "Public Education" "Corporate Media" and "Government Lies"
I stand by that.
Well, that ignorance is your burden to bear. You still haven't made a coherent case why public education is to blame for our economic depression. If you are implying some six degrees of separation, that's some fantastical logic.
There are individuals who have gone to elite, private K-12 schools or have been home schooled who believe all sort of economic nonsense.
They have been taught to believe, not to question. That is the gift of public education.
The "Legal System" or "Justice System", as it is euphemistically called, is theatre put on to entertain the proles. The system serves the moralists by taking some sod, labelling him/her an evildoer, and putting him her in the public stocks for publice abuse and amusement, while impressing upon the proles that the system must be feared and respected since you might be next. TPTB have nothing to fear, since they run or manipulate the system.
Litmus test Bitches!
The recipients of those "bad loans" who defaulted must be living high on the hog not having to pay it back and passing the losses onto someone else.
It's very 21st Century economics.
This is big news. Because states like Austria are supposed to be the heart of prudent Europe. Austria is not Greece, Portugal or Spain. Austria is Germanic, these are supposed to be the rock foundation of the EU, the solid rock upon which the other states hang together.
The EU is imploding faster and faster. They have the Euro, but the Euro does not hold the standing of the US Dollar, it can be printed, sure it can. But not to infinity. The USA, despite all it's economic failures, and massive over spending, the USA can print all it needs to fill any holes.
Gimmie 5 names (beside Sachertorte) which are important for the Austrian GDP.....all in 15 seconds Jack, do not cheat!
Ha Ha...now it's APIGS breakfast.
Not in the approved solutions manual, Miss E...
damn funny though;)
The US can not "print all it needs to fill any holes." If the Treasury and FED try to go down that route then the States fall apart.
Oh yes it can! You. You may not like that fact, but holding your breath and stomping your feet doesn't make reality go away.
Money for Nothing
The Treasury and Fed have been going down that route ("print all it needs to fill any holes") ever since the 1970s with great success in gulling the people and markets. That is how US Federal Government debt has doubled under successive administrations, with it doubling under Obama's administration to about $17 Trillion and counting. US Federal Gov. debt rose by about $1 Trillion last year, while Obama claimed to have reduced the federal deficit to under $500 Billion. Meanwhile the Federal Reserve admits to its balance sheet having ballooned to only $4 Trillion, when it's holdings of government debt are known to be much, much higher.
Supposedly, the Federal Reserve put an end to QE, but the Fed has kept its borrowing window open for big clients like big corporations, Wall Street banks, and hedge funds, lending at 0.25% (one quarter of one percent interest rate), continuing to flood the financial system with money to keep the stock and bond markets, banks, and governments afloat.
Or maybe I just overlooked your unstated "sarc" tag.
Jack Burton, wait until the Ukrainian, Polish and other Eastern and Southern European credits go bad... money printing to infinity.
If the credits were issued in Euros, then the EU can imitate the Fed and print away the bad debts. The real question is, what proportion of the bad credits are denominated in USD?
BTW, trying to screw down the Russian economy further with sanctions, will begin to cause great harm to the EU banking system. The blowback to the Austrian and French banking systems could cause them to collapse.
Moreover, it is now obvious to most EU leaders that the Kiev coup has failed. Instead of capturing Russia's resources, using the Ukraine to take down Putin on behalf of western capitalism, they are stuck with a bankrupt Ukie rump state populated by loonies and nazi's. Just wait till the starving Ukies start to flood the EU border states...
No Crimea, no offshore oil and gas, no donbass gas fields to be fracked, no pipelines to control, just the consolation prize of GMO'ing Ukie farmland. In other words, a highly predictable big bust. The Nemtsov false flag murder will advance the western narrative of an evil Putin, but will accomplish nothing in Russia, and will actually backfire against the Russian Liberal/USSA stooges. Personally, I would not want to be a Russian Liberal leader for fear that the CIA may knock me off if I am more useful dead, as was the case with Nemtsov.
Nailed it. You and Jackie B are on it today.
Thank You. It is still too early for my morning scotch so I am somewhat lucid.
I have always loved your insightful comments !
Brilliant. I'm forwarding this analysis to "Cookies" Nudelman. I'm sure she will get right on it and change course.
"Moreover, it is now obvious to most EU leaders that the Kiev coup has failed."
It's very likely this message is getting home, hence Mutti and Hollande meeting with Putin last week or so to talk peace.
However, the message doesn't seem to have reached Washington & Westminster yet. They remain determined to ratchet up fighting any which way they can.
So the bigger question is how to take down the free money printing press and the BIS.
My Dear Austria seem to be the fuse of almost every global crisis.
Nothing will happen at all .. in a few days new ATHs on several fronts and evil Putin and poor Ukraine and Kims ass and tons of other shit on top of the News.
No fuse, no global crisis ... all is well and that will not change anytime soon.
Instead get used to SnP 25xx later this year.
Everything else is just noise.
I'm stomping on my mouse, but it only gives one up arrow :(
It would be useful to know just who the largest creditors are. If they get 'bailed in' that is going to impact their liquidity and may precipitate their being in jeopardy.
The dominoes all appear to stand apart from each other...that is, until one falls....then we discover that they were all linked.
At least Deutsche Bank. Probably Goldman Sachs and JPM. Wouldn't be surprising if the FED Bank of NY had a currency swap with them.