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Of Beggars, Choosers, Unemployment, And Bailouts In Europe

Tyler Durden's picture


"The problems of a group of 17 different economies that are growing further apart - all functioning under the same currency - will not be solved by any actions taken by the ECB" is how Stratfor's Adriano Bosoni describes the can-kicking that has once again become the euro-zone this summer. From the systemically rising and drastically desperate unemployment rates around the Southern nations, which are not benefiting from the typical seasonal advantages of the Summer tourist trade (since both recessionary contraction of spending and fear of violence are keeping northern Europeans at home); to the Madrid-to-Rome 'demands' in the face of Berlin's clear message, Bosoni notes the ironic fact that 'aid' is there (as Draghi pointed out today) if it is asked for (and an MoU is signed) but both Spain and Italy know full well that the mere act of signing that Memorandum signals the market that a full sovereign bailout is closer at hand and will further steepen yield curves and shrink market access (which in our view is now gone for anything but short-duration issuance in Spain). A succinct 'status update' on where Europe stands.

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Thu, 08/02/2012 - 21:24 | 2674548 q99x2
q99x2's picture

BTDD - Buy The Draghi Dip

Well I was hopeful until I saw the old guys dressed up in the red halloween costumes. I had no idea. Maybe they will be able to protect the world from the bankster corruption. Something that far out of the ordinary might just work.

Thu, 08/02/2012 - 21:47 | 2674620 veyron
veyron's picture

BTBD: Buy the Bernake Dip?

Thu, 08/02/2012 - 23:45 | 2674829 jeff montanye
jeff montanye's picture

oh you children.  it is now sell the fucking bounce.



Fri, 08/03/2012 - 02:01 | 2674982 The Monkey
The Monkey's picture

Sell the bounce, sell the rally...

We've heard that mantra for 3 and a half years now, ALL THE WAY UP.

Whether you like it or not, this market moving higher.

Thu, 08/02/2012 - 21:17 | 2674553 trebuchet
trebuchet's picture

one of many interesting points in Draghi comments was on price inflation and that food prices in EU are not "as yet" under upward pressure as EU is largely self sufficient plus not in drought.....    the implication was that inflation risks would not be "balanced" but "to the upside"


... one to watch for the US Fed in September since "inflation risks to the upside" - from food, energy,oil prices will put pressure to NOT act.

Thu, 08/02/2012 - 21:25 | 2674565 THE DORK OF CORK
THE DORK OF CORK's picture

There has been 4 months of constant rain in Ireland......in the wettest Irish Spring /summer on record (now thats saying something)

People will spend their last Punt , I mean Euro to get out of this bog for a week or two but they won't have much money to spend when they get to Club Med..... almost everything will go on the Kerosene Bill.

Thu, 08/02/2012 - 21:38 | 2674594 Bobbyrib
Bobbyrib's picture

In The US, our farmers would kill for that rain.

Thu, 08/02/2012 - 21:36 | 2674588 Yen Cross
Yen Cross's picture

 The outcome of draghi's under, the "FULL Moon" ?  rant!

He is " INCREDULOUS"!  Unwilling to believe, or take action!   The guy clearly superceded the < EU as a whole, and pissed off Merkel!   This shit-storm is just about to end.

  Mario Draghi sounded like drowning RAT this morning! He showed a complete lack of authority and leadership! He .Monti, and Berlusconi should be clad in plastic!

   European people are wonderfull. Their leaders are , can kicking parasites!

Thu, 08/02/2012 - 21:36 | 2674590 Bobbyrib
Bobbyrib's picture

Default and disband already! How much longer can this go on?

Thu, 08/02/2012 - 21:49 | 2674624 Bobbyrib
Bobbyrib's picture

I noticed the unemployment rate in Ireland is almost as much as Portugal, but wasn't mentioned by the reporter. Is that, because there are not wide spread protests in Ireland and they don't want to stir the pot?l

Thu, 08/02/2012 - 22:49 | 2674751 Yen Cross
Yen Cross's picture

 Ireland took a " proud" tranche of cash.  Ireland isn't fixed, by a long shot!

  The Irish are prowd, and work for a fair days quid!

Thu, 08/02/2012 - 21:54 | 2674639 Spitzer
Spitzer's picture



17 all functioning under the same currency - will not be solved by any actions taken by the ECB"

Exactly. What is right with it is what is wrong with it






Thu, 08/02/2012 - 22:27 | 2674710 disabledvet
disabledvet's picture

To quote Tom(e) Keene "a truly historic day." Here's the one chart i looked at: http://seekingalpha.com/symbol/bbva?source=search_general&s=bbva
she'll have to be nationalized...perhaps over the weekend. The EZ is flying apart. What happens tomorrow...and this is PURE politics and RAW expressions of power now...is anyone's guess. It is simply an admission of incompetence if anyone is recommending anything denominated in euro's. The only thing that is certain is that no one has any idea what to replace it with. STAY TUNED ON BLOOMBERG DIAL! (who knows, maybe even CNN will start reporting on it.)

Thu, 08/02/2012 - 22:45 | 2674745 Yen Cross
Yen Cross's picture

 seeking Alpha is a good" RePUTable site"   D/A/V.  That is a pretty darn good post. "NEIN" Merkel will make consessions.


    The " Margaret Thatcher" , of a new " WORLD" order?   Thanks again " disabledvet".

Thu, 08/02/2012 - 23:47 | 2674831 Peter K
Peter K's picture


Fri, 08/03/2012 - 03:46 | 2675025 Floodmaster
Floodmaster's picture

Spanish public sector is too large, cut tax and the public sector in half and young people will get jobs.The public sector serve no purpose, it's simply the economic exploitation of one class by another.

Fri, 08/03/2012 - 04:09 | 2675041 Trichy
Trichy's picture

Great, market rallies on hopes that countries representing almost 25% of Euro Gdp are gonna need a bailout.

Fri, 08/03/2012 - 06:41 | 2675110 Nussi34
Nussi34's picture

We need another summit!

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