Annotated European Union Document On EFSF Status

Tyler Durden's picture

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PAPA ROACH's picture

What is keeping the euro propped at 1.39???  WTF?

dasein211's picture

" The market can stay irrational longer than you can stay solvent."-
A. Dow

NotApplicable's picture

Thing is, it isn't a market any longer, so market rationality no longer applies. Nor is it even a casino, where one can rationally play the odds. Instead it is a giant Rube Goldberg machine which works to transfer wealth from the productive, to the unproductive criminal class. Currently, this machine is very rational, as most do not recognize it for what it has turned into.

Eurodollar's picture

It is even more rigged than italian soccer. The teams playing in the top division, the referees and the association regulating the "game" is in on it or on the system hook. The only change is that now the crowd finally realize what is going on. This will not change though unless the crowd gets tough. All the bad seeds got to be taken out of the equation, and that is not going to be easy.

wandstrasse's picture

The crowd has swallowed everything since decades. I am very sure the crowd will go on swallowing this Ponzi nightmare. Stop waiting for a sudden collapse. We are in the midst of an ultra slow-mo collapse.

Ahmeexnal's picture

Fourth Reich (eurozone) will soon rape Norway: nordic oil fund will be used to bail out franco-german banks.  If Norway refuses, Breivik's buddies will light up some more fireworks.

Norway’s gigantic 3-trillion-kroner ($541-billion) sovereign pension fund could come to the rescue of debt-riddled European economies if an idea aired by Sweden’s Prime Minister Fredrik Reinfeldt gains ground.

Manthong's picture

Whether they go for throwing their pension money into the EU CF will be pretty good evidence for or against  the cognitive value of all those sardines.

falak pema's picture

Norway will NOT have a second Quisling.

YesWeKahn's picture

discounting QE3 (600 billion MBS)

Iam Rich's picture

Baffle/dazzle them with bullshit phase here.

The Big Ching-aso's picture

I think I've found the solution........they just need more 'Capital'.



Zero Debt's picture

European press release draft fatigue

PY-129-20's picture

"Let’s just delay
Til someone pays"

Irish66's picture

I read this 3 times and I still need help

hedgeless_horseman's picture



Help yourself!

In The Race To The Bottom, the EMUs are just trying to catch up with America and the UK.

Calmyourself's picture

I am reading this now and while there is nothing really new here, the brazen nature of the bankers historical crimes are breathtaking.  Even more breathtaking is the sheep like qualities of especially the Amercian public that had experience with hard money and gave it away with nary a peep..

hedgeless_horseman's picture



This is just crazy. EFSF loans money to a country so it can buy an EFSF bond which it then puts in trust? Just directly issue insurance against the EFSF. This seems like a bizarre and unnecessary step...

More Mandrake mechanistics are indeed bizarre, however not unnecessary, but rather critical in hiding the leverage in an attempt at caging inflation.



LawsofPhysics's picture

unnecessary steps are what keep the paperpushers employed.

TooBearish's picture

Thanks Peter this is great stuff and brings ZH back to its roots


machineh's picture

Ditto; thanks Peter.

Can't wait to see the road show ...

No interest in investing, but I could use a free lunch!

NotApplicable's picture

I'm starting to find all these analyses of impossible solutions to be akin to arguing over the number of angels that can dance on the head of a pin. Which, in the end serve no one other than the solution spinners who use any analysis to continue the argument, suspending reality for just another moment.

It reminds me of the people who watch professional wrestling while yelling at the referee that the "bad" guy has a rope in his shorts that he is choking the "good" guy with, when in reality, it's all just a show to attract your attention.

Detailing how impossible the impossible is, is of very limited value in a political (read: mafia-run) world. They are going to break everything (as they have no meaningful alternative), and inflict pain upon us all. Then, they will create their NWO du jour, regardless of whether or not it is helpful. Which of course, it is not, as these are criminals, after all.

Boston's picture

Same tumor.

Bigger BandAid.


The Axe's picture

WOW....Thanks Tyler....but I feel stupid....I only understand half of the plan.....It gives me brain frezze..

NotApplicable's picture

Inchoerent plans are like that. For a reason.

Carlyle Groupie's picture

Warning, warning OT.

Burried on page 14 of China Daily today [10/25/2011];

"JP Morgan confident in it's China growth"
Shao Zili, China head of JPM say's the bank remains confident in it's plan to double it's revenue in China over the next three years.
The bank is looking closely at the opportunities in Hong Kong's rise as an offshore yuan hub, triggered by the central governments move to internationalize the yuan. It has set up a cross-department committee to study the development and oportunities involved in the yuan's internationalization.

It looks like Jamie is positioning himself to back the new world reserve currency. We love Jamie Diamond!

Thank you from China!

(not here yet? what are you waiting for?!

pods's picture

Well I hope that they can launch a new world reserve currency better than they can a boat!


Zero Govt's picture

Dimon and Blankfein have perfected the art of spending their entire careers sitting on the toilet shitting and getting village idiots at the Fed and US Govt to run in, pay money for their turds and take them away still steaming in their hands ...what an eco-system eh?

Carlyle Groupie's picture

We've got Jamie here, and Lloyd. Expert guidance wouldn't you say? Lotsa muscle to help develop cutting edge financial products for the world to enjoy.

Things are looking amazing over here Pods. Come on my friend. Take some time out, a little vacation, scope out the opportunities. Come join forces.

Thank you from China!

earleflorida's picture

"and so, the illusionist has unmasked himself as the nascent triumphant Hellenistic Zeus

absent all hubris for ones glorious ascension unto the dark-side

all hale this utopian unambiguous  amorphous lapidary, this 'J`dimon`esk'

who's hermetic seque exodus has no peers, other than the uncompromising 'white sepulchors' fickle-folly

whoa is such ones fate, if greed be your avarice twice-over"    

pendragon's picture

they may as well use the document as toilet paper and just get the imf to write a big check

monkeys.pick.bottoms's picture

that's giving something as valuable as toilet paper a bad name

Zero Govt's picture

the Eurozone Financial Suicide Fund is sure to be a 'winner' ...there's nothing like digging yourself deeper into debt to get out of debt . . . . . Doh!!

Big round of applause for the beauty parade of village idiots (politicians) from around Europe signing up to this 'solution' ....i think it's a Full House (except Slovakia) of complete fuking goons only surprised they left out the retard at the US Treasury, Tiny Tims, brilliant financial advise to leverage this sack of crap (empty promises) to the moon ...what self-respecting village idiot could resist such moronic 'extra-suicidal-white-knuckle' advise! 

Wake me up with popcorn please when this goon-train full of lemmings smashes into the toilets in all-out acrimony, back-biting and bitching whose fault it was ...sick i know but never tire of watching the spoilt brats of the public sector throw their toys outta the pram as they all sink down the sewer grasping at straws, buck-passing and excuses

EFSF RIP . . . . . couldn't happen to a nicer bunch of people!

Everybodys All American's picture

Why don't they just do a Reg D offering on the ECB. Float the entire ECB and raise capital for the central bank. Use the capital raised to fund the entire euro ponzi.

Answer: That is what they are doing.

LawsofPhysics's picture

"A Financial Assistance Facility Agreement will settle all profits and losses of EFSF engagement for a country."

There it is.  And exactly who will serve on this committee/facility?  Let me guess, Rothchilds, Windsors, Rockafellers, JPM, Goldman Sachs...   ... or perhaps China?

"All your assets is belong to us"

Chappy's picture

Off topic, but I just noticed that the SPY vapor trades in increments of 153,061.  Just thought it was interesting that that number repeats so many times.  That's assuming my charting source is accurate.  Anyway, no real selling conviction here.  I've been covering a lot of shorts the last two days, sigh.

TradingJoe's picture

In danger of repeating myself...THEY GOT NOTHING!!!

NotApplicable's picture

You're forgetting guns. They got guns. Everything else, well, it's transitory.

CrashisOptimistic's picture


Both Figuratively and Literally:



Imminent Collapse's picture

Wow.  Lots of talk and no action.  Of course, what can you do with a significant portion of your member states are completely insolvent and unrepentant?

NotApplicable's picture

How can a collective be repentant? Only individuals have the capacity to repent. Guess what? Each and every one of them can honestly say "it isn't my debt." Only once people stop making irrational demands from collectives will the individuals within be able to prosper.

Until that day, the plundering will continue.

slewie the pi-rat's picture

as longs as

  1. nobody ever has to mark2market and
  2. coupons and interest get paid

i don't see why not, do you?  what could possibly go wrong with the idea of creating more demand for europeon sovereign debt?  and making the demand "big enuf" so we won't hafta go thru this again for two fuking years for at least a week, ok? 

Scalaris's picture



Dear EMU

You could always nationalize BitCoin, which should allow you to create an adequate amount of reserves backed by a "not real" currency, which in turn you will be able to leverage into oblivion and create "real" money by using the same applicable magical procedure, since I do belive that the process is relatively similar with that in the "real" world.

Yours Sincerely


OutsideTheBox's picture

Okay. So we all know this is whole Eurozone debacle has been nothing but pure shit since last year. But, honestly, no one cares and no one will until the whole house of cards comes crashing down. I wish it would already..... 

The reality is that there is still so much that can be done. I am not saying that it will solve the problem, in fact I honestly don't feel that TPTB are even aiming for a solution. All they need is to convince the dumb money that everything is A-Ok, and they will. Beyond the people posting and reading on the issues, most are clueless. Just think about it, there are more of them than there are of us. And those dumb dollars are going to find their way into the stock market. The rally over the past month has gotten their attention and once this bullshit EFSF deal is finalized it will get them in. 

It makes me sick to say it, but we are looking at a year-end rally.  



Carl Spackler's picture

Amen to that brother!

I wouldn't touch this garbage.

However, I wonder what kind of cuisine wil be served at the roadshow luncheon...






Peter K's picture

Wow. This approach assumes that interest rates that each individual country (PIIGS and France) pays is actually lower than the present rates that the market is making them pay.

I am not so sure that this is the case.

The reason all the PIIGS piled into the Euro was on the back of a promise (which turned out to be the case) that their respective rates will converge to that of the Germans. Now we see that this was a faulty assumption, and a mispricing of risk on a massive scale took place. Therefore the problem that was created was that the risk premium built into the interest rate was too low.

This in turn created a pathological situation where the true rate of say Italy 10 yr BTP should have been closer to 10% over the last decade, but was as low as 3.5% on the one hand, and allowed Italy to increase its debt burden by a stagering 60% over the course of this period.

So where are we today? The rates that Italy is asked to pay in the market is still much lower than the true rate (non Euro rate) by at least a couple hunder basis points, but it's debt burden is presently much larger, which makes the default componant of the interest rate that much greater. Therefore, logic would dictate that the true rate for Italy should be 12%+.

And I suspect that this is where Mr. Market will take the Italian 10 year along with the rest of the F'n PIIGS regardless of whatever financial construction they put in place.

citrine's picture


Thank you for the excellent analysis.

ThirdCoastSurfer's picture

FAFA Fooey!

"A Financial Assistance Facility Agreement will settle all profits and losses of EFSF engagement for a country."

What FAFA Agreement?

So, under either option, once losses (or gains) are incurred, a secondary mechanism will then define the responsibility for each specific country. Since there is no actual agreement, just a name, a whole new round of debate to discuss any "settlement" thus provides another buffer of time delay to any actual haircut, right? 

Peter K's picture

This was posted earlier at the the Daily Telegraph:

...and Channel 4 News economics editor Faisal Islam says:

@faisalislam: EFSF = End For Silvio's Fiefdom .... That's what I think is going on here. If the bazooka is meant to save Italy, then Ger/ Fra want him out

I wonder how the removal of a head of a soveriegn state by other heads of soveriegn states is handled by the Lisbon Treaty. Oh, wait.... it's not.

Sounds downright Medevil, if you ask me.

Bansters-in-my- feces's picture

"The mechanism will supply immidiate and reliable support"

Too fucking funny.