After Pissing Off Germany, Lagarde Now Angers France, Which Blames The Collapse In Financial Markets On The Seasons

Tyler Durden's picture

Earlier today, German financial regulator Bafin roundly smacked down Christine Lagarde's Jackson Hole proposal to use the EFSF as a bank recapitalization vehicle (as we noted over the weekend, it already has its hands full with merely keeping Italy afloat). Now it is France's turn to be indignant:

  • BANK OF FRANCE'S NOYER SAYS DOES NOT UNDERSTAND IMF LAGARDE'S RECENT CALL FOR EU BANK RECAPITALISATIONS
  • BANK OF FRANCE'S NOYER SAYS MAYBE LAGARDE WAS BADLY INFORMED BY IMF STAFF ON BANK RECAPITALISATIONS
  • BANK OF FRANCE'S NOYER SAYS SEES NO REASON TO WORRY ABOUT FRENCH BANKS
  • BANK OF FRANCE'S NOYER SAYS SPECULATION ABOUT POSSIBLE FRENCH DEBT DOWNGRADE IS AN "ABSURD RUMOUR"
  • BANK OF FRANCE'S NOYER SAYS CONSTITUTIONAL DEFICIT LIMIT WOULD BE COMMON SENSE

And just in case there was a need for a scientific explanation for the recent plunge in French banks, which invoked an indefinite short-selling ban, here it is:

  • NOYER SAYS FINANCIAL MARKETS DON'T OPERATE NORMALLY IN SUMMER

Expect to hear comparable arguments about the Fall, Winter, and, lastly, Spring.

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slaughterer's picture

Sofitel scandal 2.0?

BaBaBouy's picture

.

Hopium, And Free Fiats For Everyone ...

spiral_eyes's picture

europe is really going for hell for leather with that big, red self-destruct button...

http://azizonomics.com/2011/08/28/the-death-of-the-euro-in-2011/ 

Leopold B. Scotch's picture

It's only a matter of time before the rats start fleeing the sinking ship.  Eventually the blame game to start kicking into gear...

eureka's picture

It's only a matter of time before "the dumb blonde" follows DSK.

Scapegoat bearer of bad news de jour in place. Next.

Cirederf's picture

She is actually a very bright lady and, I being French, am surprised at how vocal she has become and so quickly, because when she was France Minister of Finance, before being "promoted" to the IMF, she relentlessly was telling us that everything was fine and dandy with the banking sector, the economy, etc... Not sure what is compelling her to be so hard all of a sudden, but I have to admit, she has balls!

destiny's picture

Oh come on Cirederf, get a life ! I am French as well and you my friend really take your deams for reality ! 

Nussi34's picture

Yes, very bright. Her suggestion to solve the problem of the difference in competitivess between countries in Europe was to make Germany less competitive. Maybe it has become normal for European politicians to ignore that there is a world outside of Europe...

cranky-old-geezer's picture

 

 

It's only a matter of time before the rats start fleeing the sinking ship. 

No, I don't think so.

Keeping the Euro alive depends on keeping sovereign debt alive.  Central bankers will do everything in their power to keep sovereign debt from collapsing, even turning on the printing presses and loaning more money so governments can keep rolling debt over and keep operating.

Of course the debt gets bigger and bigger, eventually reaching absurd levels, but it doesn't matter, the debt must not be allowed to collapse in value.

If sovereign debt carried on central bank books collapses in value, the whole game is over, the cental bak collapses and the currency collapses.

Same thing is happening here in America. QE1 & QE2 were to keep the value of treasury debt (and MBS debt) high by buying it all up (when nobody else wants it).

But there's no free lunch. Continually printing currency to buy new sovereign debt debases the currency.

One way or another the currency dies. Rapidly via collapse or slowly via hyperinflation.

Pick your poison.

tiger7905's picture

New gallop poll says 34% of Americans see gold as best investment, of course gallop says we must be in a gold bubble.

http://goldandsilverlinings.com/?p=1594

Triple A's picture

like the man said, nothing is wrong they have everything under control. Everyone move along.

nope-1004's picture

 

 

  • BANK OF FRANCE'S NOYER LIES HIS ASS OFF TO KEEP MARKETS CALM AND DIVERT BLAME ELSEWHERE
destiny's picture

to nope-1004

Is that an excuse for Lagarde? because she is not worth a whole lot more than Boyer in my book !  In her earlier carreer Lagarde worked closely with Brewzinsky.....that says it all on her integrity !

nope-1004's picture

No, I'm not making any excuses.

I actually don't know how to differentiate between the various types of white-collar criminal banksters.  Who did this or who did that is simply more diversion.  To that end, they are all complicit in the game and they all lie.

 

Bob's picture

Indeed.  It's axiomatic.  They have all no doubt proven themselves the highest caliber of sociopath many times over before they are trusted with real power. 

destiny's picture

YES they are all complicit :  the REGLE d'OR....golden rule...THEY ARE ALL FROM THE SAME MOLD and linked together from very early in their carreers.    If you search on this brilliant lawyer as we like to describe her, she has been nurtured by the very same we combat today !  

Peter_Griffin's picture

I can't really speak to Lagarde's worth because I don't know much about her.  But in the movie Inside Job she talks about how her, and the IMF, warned the US repeatedly that a banking collapse was incoming.  If she perceives the same thing happening in France, it might be a good time short some French banks...  Oh yeah, they discontinued shorting....  Adios France.

destiny's picture

IAHO she has been saying what she was told to say...Lagarde has been a puppet minister and is now a puppet of the big wigs.  She does not know anything about economics....since when a lawyer knows about the intricacies of economics...just fooling the sheeple.  Lagarde is perfect for the job. She should have resumed synchonicity swimming where she at least had better results !

WALLST8MY8BALL's picture

I thnk you mean Southwestern Deustcheland

Popo's picture

Further reports:

...

  • LAGARDE TO BANK OF FRANCE'S NOYER:  "YOU SAID WHAT?  OH NO YOU DIDN'T!"
  • NOYER TO IMF'S LAGARDE: "OH YES I DID BITCH.   AND WHAT'S WITH YOUR MOZILLO-STYLE SUNTAN ALL THE TIME AND SHIT?"
  • LAGARDE TO SOFITEL MANAGEMENT: "OPERATION FRENCH MAID PART DEUX IS IN EFFECT" 
destiny's picture

LOL + hyperinflated 1

TruthInSunshine's picture

I have just one song to sing to the EU (unless Germans are lobotomized further, which is possible, actually):

 

Na Na Na Na

Na Na Na Na

Hey Hey

Goodbye

 

The EU was a terrible idea to begin with, and anyone with at least one remaining brain cell now realizes this fundamental truth.

Jonas Parker's picture

or maybe "another one bites the dust"...

TruthInSunshine's picture

Queen works, too.

Speaking of queens, can we get a laugh track sound effect on ZH, because shit like this desperately needs such a tribute:

 

Just to add to ZH's list above -

 

p.s. - We have secretly replaced the FOMC's coffee with freeze dried, coffee flavored, mega laxative crystals, because coffee is too QEexpensive, and just because we could.

Smiddywesson's picture

I don't know TIS, the ECB and the Fed are acting in concert to pull a fast one and screw everybody, our governments, our citizens, and the people in the emerging economies who worked like slaves to make us pretty things for pieces of paper.  Everyone, all over the world is fixing exactly nothing, kicking the can at enormous costs, and buying gold.

Methinks I smell a rat.  Can there be any question that the center of this conspiracy is the Fed and the ECB?  Central banks crave secrecy and central control.  The EU may not exist in name when all is said and done, but I doubt they will release central control without a fight.

TruthInSunshine's picture

 

 

Oh, don't get me wrong. Bernank & Trichet want urgently - sooooo urgently - to print and bail out the PIIGS+France+UK+???

Surgeons want to cut.

Dentists want to drill.

Carpenters want to hammer.

 

Central banksters want to cut, drill & hammer taxpayers/savers.

eureka's picture

Who are more lobotomized - Germans or US'ians?

Who ever believed US had monopoly on dysfunctional non-melting-pot'hood?

Who believes human melting pots are fantastic ideas - except of course reductionist materialists?

Who thinks human beings are competing consumer bots who need nothing but stimulus?

Who has monopoly on terrible ideas?

Personally, I'll take the French revolution over the US any day.

Justice can be bought - brotherhood and equality requires enlightenment - and that isn't cheap - it comes at the cost of blood and sacrifice.

Got Guillotines?

Léonard's picture

+1268

European brotherhood, bitchez !

Sequitur's picture

Is it too early to start talking about Q.E. 4 and Tarp 2?

SheepDog-One's picture

Lets just go ahead and price in QE5, may as well whats the difference?.

The They's picture

Ya... At this point, it's pretty much official that the US economy runs on lollypops, sunshine and rainbows (not to mention unicorns).

Leopold B. Scotch's picture

I'm cornering the market on wheelbarrows. Cuz that's what da peoples uses to haul money to buy loaves of bread whenz da shitzle hits the fanzitzle.

Smiddywesson's picture

I'm cornering the market on wheelbarrows

And you can start your own business:  "Bring out yer dead!"

The They's picture

Lagard is uniting Europe in hatred... for her.

WALLST8MY8BALL's picture

Mirror Mirror on the wall, which is the fairest banking season of them all? Is it Winter  - cold and harsh? Is it spring - ground wet as a marsh? or tis it Summer - hotter then hell or perhaps the Fall - sort of hard to tell.

Whatta's picture

blame it on the seasons?

"paprika and cumin causes market turmoil...film at 11"

Cursive's picture

Sacrebleu!  Noyer isn't a believer in EMH?

Bam_Man's picture

More European-style "theatre of the absurd".

And lots more to come.

kaiten's picture

If I was Lagarde, I would stop visiting New York hotels. One just never knows what is in making ....

TruthInSunshine's picture

 

 

Lagarde will soon be caught in her NYC hotel room, stooping over a bound hotel bellhop, force feeding him escargot, while dressed as cat woman.

OrdellRobbie's picture

EU bank assets are marked-to-model, the markets keeps levitating higher as the news get progressively worse, classic bear market signal.

Steroid's picture

Noone says it?

Bitchez, bitchez!!

JW n FL's picture

 

 

It is the WEATHER!!

 

Irene had very strong winds! which blew France and Germany around in Europe!

People please stick to the acts of God!

No worries!!

UCTIS will save the day! Long Live the 3rd World Market Place!! LOL!

http://mediazone.brighttalk.com/comm/INCRISK/a4066b69ec-26486-5095-28935

 

SheepDog-One's picture

WHOA the DUH is down -35 points that must be the 'fear and panic' can we haz QE3 now pleez?

JW n FL's picture

we need to be down in the 10k range for an extended period of time..

then! we will have more free money for wall street! 20% - 25%.. or more would work!

Irish66's picture

Icing on the cupcake...

rubearish10's picture

Yeah, Europe only has buyers during the last two weeks in August. Just wait until the sellers arrive back from vacation. Now, I get it.

TK7936's picture

This is why i trust the weather report more than any financial report. I bet Noyer has a weather channel subscribtion too.