And In The Meantime Back In Reality

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Wed, 11/02/2011 - 15:32 | 1838225 wisefool
wisefool's picture

Why would they buy EFSF bonds when they can buy bonds in re-emerging currencies tied to single fiscal policies of same in about 6 months?

The Chinese are not dumb, and of all things, they are known for being patient.

Wed, 11/02/2011 - 15:44 | 1838282 Peter K
Peter K's picture

Because the big Panda is long about 1.1t of that superlicious Eurobamboo that will gap to the 30% to 40% recovery level, if they pulled the plug. It is pretty obvious that the socialist welfare states have spent all their money. They were funding itself with US MM funds (Northern Rock anyone?). And now that this market has dried up, all they have left is selling all their IG jewels, and hope it's enough to forstall nationalization. Can anyone say "Perastrioka":)

Wed, 11/02/2011 - 15:50 | 1838318 css1971
css1971's picture

How much do they need to meet capital requirements? €3 trillion? Or was that the whole shebang; sovereigns included?

Wed, 11/02/2011 - 15:58 | 1838354 TruthInSunshine
TruthInSunshine's picture

They are going to lever up the EFSF.

Which is the functional equivalent of getting a Rent-A-Center customer in default on their Plasma Screen $143 per week payment plan to sign another personal guarantee pledging that they "really, really, really are going to seriously catch up with their payments."

It should work.




Wed, 11/02/2011 - 16:23 | 1838460 WonderDawg
WonderDawg's picture

Sort of, but worse than that. It's like giving them another loan so they can make their $143 payment with borrowed money.

Wed, 11/02/2011 - 16:27 | 1838488 TruthInSunshine
TruthInSunshine's picture

This is true.

They'd have to agree to double their payment and sign up for automatic deduction payment from their already overdrawn banking account before being allowed to sign the "cross my heart" repayment pledge.

Wed, 11/02/2011 - 16:54 | 1838603 slewie the pi-rat
slewie the pi-rat's picture

this is why there is such a critter as:

double secret probation

Wed, 11/02/2011 - 17:06 | 1838653 wisefool
wisefool's picture

I thought it was double super secret probation.

Wed, 11/02/2011 - 18:05 | 1838882 rokka
rokka's picture

It's double penetration.

Wed, 11/02/2011 - 21:43 | 1839557 FeetOnTheGround
FeetOnTheGround's picture

It's 'double top-secret probation.'

Wed, 11/02/2011 - 15:47 | 1838297 JLee2027
JLee2027's picture

You forget ultra corrupt. The first known failure of a paper currency Ponzi scheme occurred in China during the 13th century.

Wed, 11/02/2011 - 15:47 | 1838298 LongSoupLine
LongSoupLine's picture

I've said it for a long time...Sun Tzu, bitchez.

Wed, 11/02/2011 - 16:02 | 1838352 wisefool
wisefool's picture

Timeline: 2011-01

SEC-DEF Gates (ret.) "The Debt is the biggest threat to US national security"

Timeline: 2011-08

Joint Cheif Mullen (current) "The Debt is the biggest threat to US national security"

Wed, 11/02/2011 - 16:27 | 1838486 NotApplicable
NotApplicable's picture

So, why can we not have a War on Debt? Let the military occupy Wall St. for a while.

Wed, 11/02/2011 - 16:33 | 1838521 wisefool
wisefool's picture

current and former members of the US military support Ron Paul more than all other candidates combined.

"Nearly all men can handle adversity, if you want to test a man's charactergive him power."

Wed, 11/02/2011 - 18:31 | 1838958 DosZap
DosZap's picture


Well at 8%, it ain't gonna happen, Herman(Big Lead Herman), just pulled a whopper.........the most knowledgeable/capable man on the A Team (Besides Ron P), just THREW the RACE card.

Now, he has some issues I do not agree with that could have been worked out.(w/his fiscal plan)

NOT NOW. When your ACCUSED(not proven ) of something you do not LOSE it, and you do NOT throw the race card.

He just lost my vote, and likely many others, this PC shit,makes me earp.

Wed, 11/02/2011 - 19:58 | 1839242 jekyll island
jekyll island's picture

Looks like I picked a good month to short Treasuries.

Wed, 11/02/2011 - 18:42 | 1838998 peekcrackers
peekcrackers's picture


right on right on !

Sun Tzu at high Noon~

Wed, 11/02/2011 - 15:49 | 1838309 TheLooza
TheLooza's picture

Allow me to show you how the Algos read the china headline:

there’s [no]strike] concrete plans [yet so it’s too early]strike] to [talk about]strike] further invest[ments]strike] in these tools,” Zhu Guangyao, Vice Finance Minister



Wed, 11/02/2011 - 16:08 | 1838390 legal eagle
legal eagle's picture


Wed, 11/02/2011 - 18:47 | 1839012 peekcrackers
peekcrackers's picture

The best way to read the china head lines is sideways

like they'er truth telling

Wed, 11/02/2011 - 15:32 | 1838226 nope-1004
nope-1004's picture

"everything behind the facade is falling apart".


It's about time.  Good night insolvent banks.  Too-da-loo liar Benocide and Geithner.

Welcome to jail, Mr. Corzine!!!

Wed, 11/02/2011 - 15:44 | 1838277 JLee2027
JLee2027's picture

In a week, the entire world could change as the zombie banks will finally meet their maker. Here's hoping we have arrived.

Wed, 11/02/2011 - 15:50 | 1838316 sushi
sushi's picture

Teheran banks might meet their maker first


UK military steps up plans for Iran attack amid fresh nuclear fears


Wed, 11/02/2011 - 15:53 | 1838329 css1971
css1971's picture

Yup. They've got Weapons of Mass Destruction.


We're going to have to invade to .... Y'know, I've forgotten but I'm sure it was a jolly good reason.


Wed, 11/02/2011 - 15:58 | 1838355 drink or die
drink or die's picture

Something about invading to protect our freedoms?  Or something. 


Wed, 11/02/2011 - 17:24 | 1838720 CrashisOptimistic
CrashisOptimistic's picture


The phrase you're grasping for is "Protect Civilians".

Wed, 11/02/2011 - 15:57 | 1838353 dizzyfingers
dizzyfingers's picture

Quote: Unquote


So, will US strike using collapse of Europe as cover, or will Europe collapse using US strike for cover?  Good grief, it's keystone cops.

Wed, 11/02/2011 - 20:15 | 1839293 delacroix
delacroix's picture

first, we freeze their assets

Thu, 11/03/2011 - 01:25 | 1839939 MSimon
MSimon's picture

Then their shit backs up.


Warmers and Ex-lax in great demand.

Wed, 11/02/2011 - 16:08 | 1838391 Raskolnikoff
Raskolnikoff's picture

Say what you want about Shari'a Law, but compared to our 'lawless' society.... at least you know where you stand with them, the Iranians, radical muslims, etc.

Wed, 11/02/2011 - 16:26 | 1838478 WonderDawg
WonderDawg's picture

Maybe so, but I would have had a hand or something worse cut off by now, so I'll stick with our "lawless" society and maybe have a chance to be part of the change for the better.

Wed, 11/02/2011 - 15:33 | 1838232 Comay Mierda
Comay Mierda's picture

in order to keep the euro ponzi scheme alive treasuries will get dumped.  a lot of ppl are bullish on the dollar.  i'm not so sure. my gold is looking pretty shiny today though

Wed, 11/02/2011 - 15:41 | 1838264 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Gold is now the default option.  And some FRNs.  Be armed to protect what you have.

Wed, 11/02/2011 - 15:45 | 1838288 css1971
css1971's picture

Good one. I see what you did there.

Wed, 11/02/2011 - 15:33 | 1838233 No One
No One's picture

Can ZH stop dealing in "reality" please. I am too busy ramping up my equity exposure as some people on CNBC just said that equities were undervalued.

Wed, 11/02/2011 - 15:43 | 1838268 Doubleguns
Doubleguns's picture

As soon as the dollar drops in value your equities will rise. They are presently undervalued because the dollar is so over valued at present.

Wed, 11/02/2011 - 15:35 | 1838239 lapedochild
lapedochild's picture

Can someone remind me again, what's the necessity of insolvent banks? What purpose do they serve in our economy?

Wed, 11/02/2011 - 15:37 | 1838250 Deadpool
Deadpool's picture

Again, no banks = no loans = no business = no jobs. Congress gets re-elected on jobs, Jobs, JOBS! k?

Wed, 11/02/2011 - 15:41 | 1838266 nope-1004
nope-1004's picture

Would be interested in hearing which banks are currently lending to small businesses.

This economy needs to purge the leeches and parasites:  The BANKS.  Until then,

"they terk err jerbs!"

Wed, 11/02/2011 - 15:46 | 1838292 DB Cooper
DB Cooper's picture

Only small community banks lend to small business. 

Wed, 11/02/2011 - 15:46 | 1838291 faustian bargain
faustian bargain's picture

Maybe there's a missing piece... no savings = no investment = no banks = ...etc

Wed, 11/02/2011 - 15:59 | 1838359 Deadpool
Deadpool's picture

-8? wtf, you guys are crazy.

Wed, 11/02/2011 - 16:12 | 1838406 brew
brew's picture

-12 now, and climbing...

Wed, 11/02/2011 - 18:33 | 1838964 CPL
CPL's picture

I'm down voting because all the other kids are doing it.

Wed, 11/02/2011 - 17:43 | 1838789 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I guess thats where QE comes into the frame...

Wed, 11/02/2011 - 15:38 | 1838253 midgetrannyporn
midgetrannyporn's picture

They hold many toxic assets which if released into the environment could be detrimental to human wealth.

Wed, 11/02/2011 - 15:53 | 1838307 iDealMeat
iDealMeat's picture

They hold many toxic assets...


no..  they don't.  FED bought them all and paid 100% LTV.. 2 Trillion worth.. Banks get paid to "service" those "assets" on the FEDs Black Hole Books.

Which we'll never see..  F.U. FED!

Wed, 11/02/2011 - 15:54 | 1838333 Withdrawn Sanction
Withdrawn Sanction's picture

How does anyone know?  Neither the Fed nor the banks produce trustworthy books on which to base such an assessment.  Maybe they're sound, maybe they aint.  Their silence, however, speaks volumes

Wed, 11/02/2011 - 16:29 | 1838497 WonderDawg
WonderDawg's picture

The Fed did not buy them ALL. 2 trillion is big but it's still just a drop in the bucket of the banks' exposure. The big banks are most definitely insolvent.

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