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Berlusconi Main Squeeze Merkel Sends Mixed Messages: Says Eurozone Insolvency Is Possible But Greek Default Would Be Comparable To Lehman

Tyler Durden's picture




 

In a surprisingly candid yet traditionally schizophrenic interview on ARD 1 show GuntherJauch, Angela Merkel once again sent the same mixed messages that have forced Berlusconi to smile to her face while saying less than flattering things, ahem, behind (no punt intended) her. While on one hand she said that default is an option under the post-2013 Euro rescue fund and emphasized that a euro-area sovereign insolvency can not be ruled out, she also made it clear that Europe continues to have no Plan B. According to Reuters, "allowing Greece to default on its debt now would destroy investor confidence in the euro zone and might spark contagion like that experienced after the bankruptcy of Lehman Brothers in 2008, German Chancellor Angela Merkel said on Sunday." Obviously this is not new, and our humble interpretation is to continue to telegraph to the market how unstable the Eurozone is so there are very little expectations and more EUR short squeezes can be accomplished, as well as not pricing in anticipation that emergency liquidity conduits, currently being implemented, actually succeed in case they actually do. Of course, should Europe really succeed in ejecting Greece without Europe imploding which is the interim end game here that would certainly send the EURUSD to well over 1.50. Alas, we put chances of that happening at about 1%.

More from Reuters:

"We need to take steps we can control," Merkel said, drawing a parallel between the Greek situation and that of Lehman, whose bankruptcy helped trigger the global financial crisis.

"What we can't do is destroy the confidence of all investors mid-course and get a situation where they say that if we've done it for Greece, we will also do it for Spain, for Belgium, or any other country. Then not a single person would put their money in Europe anymore."

In a one-hour interview on the euro zone crisis with the popular German talk show host Guenther Jauch, Merkel said she relied on the view of the International Monetary Fund (IMF) when assessing how to handle Greece.

As long as the IMF was convinced Greece's debt was sustainable, then she supported that position, she said.

As for the key event of the coming week, which is German ratification of the expanded EFSF, in this case Merkel is setting the expectations bar quite high by saying it is guaranteed:

Merkel also made clear that she did not view a parliamentary vote in Germany on Thursday on the euro zone's rescue mechanism as "make-or-brake" for her government.

Because opposition parties support giving new powers to the so-called European Financial Stability Facility (EFSF), passage is not in question.

Too bad there is no such thing in Europe as guaranteed. And should the German vote actually fail, look for the EURUSD to tumble a good 1000 pips in a few seconds. It may be prudent to hedge for just that possibility...

 

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Sun, 09/25/2011 - 16:46 | 1708454 cossack55
cossack55's picture

About 1%.  I would say too high, but the CBs have a way of surprising one and all.

Sun, 09/25/2011 - 16:57 | 1708491 AbelCatalyst
AbelCatalyst's picture

Everything is priced in! I repeat, everything is priced in:

Euro crash: priced in
Germany leaving Euro: priced in
US default: priced in
Fed printing $10T: priced in
US Muni defaults: priced in
PIGS default: priced in
BRICs will save the world: priced in
Middle East unrest: priced in
Invasion of Isreal: priced in
China hard landing: priced in
China debt collapse: priced in
Hyper inflation: priced in
Hyper deflation: priced in
Peak oil: priced in
New historic oil find: priced in

Nothing is priced in!! When the next shoe falls, then the next, then the next.... We'll see what was actuall priced in!!

Sun, 09/25/2011 - 17:16 | 1708535 ratso
ratso's picture

You are right - the only thing priced in is an uneasiness with the idea that the future will be like the past.

Sun, 09/25/2011 - 17:28 | 1708555 Ancona
Ancona's picture

HAHAHAHAHAHAH  Bitchez!

Default, it's what's for dinner!

Hahahahahha! Really, you didn't see this coming? Shame on you!

Sun, 09/25/2011 - 18:22 | 1708668 AldousHuxley
AldousHuxley's picture

http://wideeyecinema.com/?p=7208

2nd link

 

people who control banking and media also control their own jews to hate non-jews and see everything through the eyes of anti-semitism. Must see rare documentary....BECAUSE AN ISRAELI JEW FILMED THE DOCUMENTARY BECAUSE HE WAS SICK OF HIS OWN SHIT.

Sun, 09/25/2011 - 19:18 | 1708817 Buck Johnson
Buck Johnson's picture

You hit it right on the head, there is no way to price in the dominoes that will fall no way.  First they know the more money they give Greece no matter a dollar to 1 billion dollars is more money that they won't be able to repay (they are in debt to the tune I think of 350 billion dollars to everybody).  But if the allow them to default all that debt and the banks and financial institutions that loaned them the money (who also levereged that to be able to make more money off the loan) will automatically have that on the books as liabilities, which will officially make all if not most of them insolvent (like we already know they are).  Also it will force discovery of debt price and individual countries economies.  You see other countries are in alot worse shape than Greece and their percentage of debt to GDP is higher (Ireland is 840 billion in debt, Spain and Italy at least a piece 1 trillion Portugal and Belgium high also).  So if Greece defaults and can't pay their debt, then others will say and be correct that these other countries can't pay theirs also.

Both banks and countries will Domino and start falling one on top of another.

Mon, 09/26/2011 - 00:28 | 1709450 Dingleberry
Dingleberry's picture

CDS exposure ALONE makes it impossible to predict the consequences of default.  Oh well, that's why the banks made it this way. The more opaque, the better for them.  No doubt a lot of hedgies (and banks) are praying for greece and others to collapse.  See what happens when you let other people take out insurance on YOU, even if they have no direct interest???  Thanks Blythe!!!!

Sun, 09/25/2011 - 22:32 | 1709219 UBIGDummy
UBIGDummy's picture

WHY WONT THESE FOOKERS just collapse already. I got money to be made:)

I need a private jet for christ sakes!

Sun, 09/25/2011 - 22:46 | 1709248 slewie the pi-rat
slewie the pi-rat's picture

people have made vast fortunes fading slewie...

Sun, 09/25/2011 - 22:36 | 1709230 FederalReserveB...
FederalReserveBankofTerror's picture

Priceless! For everything else there is Mastercard... until there is a global liquidity crisis and credit evaporates where credit cards are frozen and only cash is accepted for transactions. How well do you think that will go over when the gasoline delivery truck pulls up to the Holiday station and asks the store manager if he has his cash for the gas he is delivering, no net-15, no net-30, CASH NOW! No cash? No gas! The store manager can then run to the bank to get cash where a note from Secretary Geitner and Ben Bernanke will read, The United States has declared today a bank holiday. Please come back Monday. If you will need to withdraw cash, your monthly limit will be $500 for personal accounts and $1,000 for business accounts. We apologize for the inconvenience and wish to inform you that your money is safe in this bank. Enjoy your weekend.

Demand deposits are 30x the actual cash that is available. How much food, gas, cash, "protection" (of the steel and brass variety) do you have and how quickly can you get away from populated areas are the questions you will really need answers for...SOON!

Mon, 09/26/2011 - 00:08 | 1709405 goldenagehorde
goldenagehorde's picture

Germany leaving Euro.
This is the only one i don't see to be possible,

Sun, 09/25/2011 - 16:46 | 1708456 Long-John-Silver
Long-John-Silver's picture

Duh!

Sun, 09/25/2011 - 17:24 | 1708501 GeneMarchbanks
GeneMarchbanks's picture

Lehman is the proverbial go-to threat from all these monkeys now. Jeez, find a new threat because I'm crying out for bigger catastophes, disasters and clusterfucks and I'm tired of Lehman Bros allusion.

Sun, 09/25/2011 - 16:46 | 1708457 Tom Green Swedish
Tom Green Swedish's picture

So when does the USA face their deficit problem like Europe? After Europe is through with theirs?  Congress does not seem to want to raise taxes and stop spending like they know they should.

Sun, 09/25/2011 - 16:49 | 1708466 Long-John-Silver
Long-John-Silver's picture

The exact same way Europe is dealing with it. Kick the can down the road until an 18 Trillion wheeled debt truck runs over it.

Sun, 09/25/2011 - 16:55 | 1708482 Tom Green Swedish
Tom Green Swedish's picture

I refuse to believe that the government would deceive the general population (ie those brilliant scholars who created the housing boom) into devauling them into nothingness.  Is reelection really that important?  Sooner or later it will catch up with them either way they decide, so what is the problem with doing the right thing?

Sun, 09/25/2011 - 17:13 | 1708529 Beam Me Up Scotty
Beam Me Up Scotty's picture

It doesn't have to decieve too hard.  Most of the general population are idiots.  As for reelection, just kick the can far enough so the next elected person after you gets to clean up the shit pile you left on the floor.

Mon, 09/26/2011 - 03:26 | 1709830 ivana
ivana's picture

USA will "face the problem" last since they created it and managing it.

TBTF and other major banksters are "managing crisis" from begining behind the curtains

 

Sun, 09/25/2011 - 16:46 | 1708458 TruthInSunshine
TruthInSunshine's picture

And still the believers in the EuroZone failure of an experiment won't be deterred.

Merkel admitted, plainly and loudly (see title of thread) that INSOLVENCY OF THE EU IS POSSIBLE.

Gee, would that be as if a President of the U.S. gave a Rose Garden Presser and admitted that the imminent insolvency of the U.S. was possible?

Sun, 09/25/2011 - 16:50 | 1708467 SilverIsKing
SilverIsKing's picture

The U.S. can print so the President would never have to say that.

Sun, 09/25/2011 - 16:55 | 1708472 TruthInSunshine
TruthInSunshine's picture

The ECB can print, as well, so Merkel could have avoided saying what she did today (though the consequences may have been far more dire than to date).

They are just dealing with little Greece, here.

Just imagine the economic & political task involved in rescuing PIIGS+France+UK.

Sun, 09/25/2011 - 17:02 | 1708505 SilverIsKing
SilverIsKing's picture

That day is coming.

Sun, 09/25/2011 - 18:12 | 1708635 Dapper Dan
Dapper Dan's picture

That day is here,

China says "no way Jose"

BY BOB DAVIS

WASHINGTON—China to Europe: Don't expect a bailout from us.

That was the message delivered by a number of Chinese officials during meetings at the International Monetary Fund, where China was widely seen as an answer to the euro zone's problems, either as a purchaser of European debt or as a country that could further goose its economic growth rate.

"We can't just go save someone," said Gao Xiqing, president of China Investment Corp., China's huge sovereign wealth fund. "We're not saviors. We have to save ourselves," he said at a weekend panel discussion

 

Sun, 09/25/2011 - 18:42 | 1708723 Stack Trace
Stack Trace's picture

PIIGS FUK

Sun, 09/25/2011 - 16:47 | 1708462 RSloane
RSloane's picture

Merkel is relying on the IMF? Did she read the IMF's latest solvency report? Sheeeeet.

Sun, 09/25/2011 - 17:50 | 1708599 macholatte
macholatte's picture

Merkel said she relied on the view of the International Monetary Fund (IMF) when assessing how to handle Greece.

As long as the IMF was convinced Greece's debt was sustainable, then she supported that position, she said.

 

Translation-Interpretation = The Fed will rescue EU = American Taxpayer gets pimped again

 

Sun, 09/25/2011 - 16:54 | 1708476 Black Forest
Black Forest's picture

And should the German vote actually fail, ...

It won't fail. The German parliament mainly consists of teachers, laywers and similar useless folks. Most of them are feeble brain-washed socialists, regardless of the party they actually belong to, and have litter in their heads.

Sun, 09/25/2011 - 17:34 | 1708568 Lord Welligton
Lord Welligton's picture

consists of teachers, laywers and similar useless folks.

Let me help you there.

consists of teachers, lawyers and similar useless fucks.

Fixed.

No charge.

Mon, 09/26/2011 - 00:19 | 1709431 Fips_OnTheSpot
Fips_OnTheSpot's picture

Yep - the Greens and the social"democ-rats" already signalled "Yay!" to the EFSF extensions - makes up something like 70-75% for letting the bill thru.

Nowadays I hate the weapons-law in Germany - might get a crossbow, tho...

default (Greece) on Saturday, new D-Mark on Sunday - thanks heaven for public holiday ("Day of Re-Union"!!!) on Monday (Oct, 3rd).

Sun, 09/25/2011 - 16:54 | 1708478 SirPlayomic
SirPlayomic's picture

The SPD, who are the opposition in Germany, will definitely vote for the EFSF and not against it. The SPD want a stronger EU, in effect a super state, under one Treasury department. They are in bed with the banks. Sad but true. This makes the EFSF guarenteed.
www.greedion.com

Sun, 09/25/2011 - 16:55 | 1708484 Religion Explained
Religion Explained's picture

Yeah, but ... don't be betting one way or another. CBs are just licking their chops and ready to shear bulls and bears alike. The only way to win is not to play the game or to have timely intimiate insider info on the CBs next move.

Sun, 09/25/2011 - 17:41 | 1708581 Lord Welligton
Lord Welligton's picture

Absolutely.

There are no markets.

Just Soviet instructions.

Sun, 09/25/2011 - 16:56 | 1708488 Catullus
Catullus's picture

What I love the most about Merkel is that she makes this seem so much like democracy and less like the vassal state that Germany is. You know the French allowed German unification for the price of destroying the DM and handcuffing the Bundesbank.

The fact of the matter is that a Greek default doesn't matter. They're already marked down. That this reveals inadequate liquidity for the banks is mutually exclusive of a Greek bond default. The analysis that a Greek default is Lehman event is bullshit. The part that's very disturbing is that the USDA will never declare sovereign debt in default, so those CDS transactions used as "hedges" will never pay out. THAT is the Lehman event.

Sun, 09/25/2011 - 16:57 | 1708489 ivana
ivana's picture

Germans don't care if EURO drops. Everyone there knows that german export will rise accordingly. Merkel have to play it out herself

Sun, 09/25/2011 - 17:01 | 1708502 Tom Green Swedish
Tom Green Swedish's picture

Exactly, A weak currency favors exporters like Japan, which is exactly what Germany wants to revive their economy.  THe Euro will tank so Germany can grow again.  If you look at when most of their growth occured it was during the stage when the Euro was worth much less.

 

 

Sun, 09/25/2011 - 16:56 | 1708490 paul_Liu
paul_Liu's picture

Hi Tyler,

Could you please send me an email at paulliu9@gmail.com? I have a very important info to share with you. Thanks Paul

Sun, 09/25/2011 - 17:02 | 1708504 achmachat
achmachat's picture

don't forget to let us know just how many emails you just received after posting your email address here.

Sun, 09/25/2011 - 17:04 | 1708513 Motley Fool
Motley Fool's picture

Contact Information:

Tips: tips [ at ] zerohedge.com

Sun, 09/25/2011 - 17:33 | 1708565 Earl of Chiswick
Earl of Chiswick's picture

Quanwei please ask ZH to remove your email address, you should not post your email on a public board.

Sun, 09/25/2011 - 17:36 | 1708572 bob_dabolina
bob_dabolina's picture

You will be getting emails like


DEAR SIR,

URGENT AND CONFIDENTIAL BUSINESS PROPOSAL

I AM MARIAM ABACHA, WIDOW OF THE LATE NIGERIAN HEAD OF STATE, GEN. SANI ABACHA. AFTER HE DEATH OF MY HUSBAND WHO DIED MYSTERIOUSLY AS A RESULT OF CARDIAC ARREST, I WAS INFORMED BY OUR LAWYER, BELLO GAMBARI THAT, MY HUSBAND WHO AT THAT TIME WAS THE PRESIDENT OF NIGERIA, CALLED HIM AND CONDUCTED HIM ROUND HIS APARTMENT AND SHOWED HIM FOUR METAL BOXES CONTAINING MONEY ALL IN FOREIGN EXCHANGE AND HE EQUALLY MADE HIM BELIEVE THAT THOSE BOXES ARE FOR ONWARD TRANSFER TO HIS OVERSEAS COUNTERPART FOR PERSONAL INVESTMENT.

ALONG THE LINE, MY HUSBAND DIED AND SINCE THEN THE NIGERIAN GOVERNMENT HAS BEEN AFTER US, MOLESTING, POLICING AND FREEZING OUR BANK ACCOUNTS AND EVEN MY ELDEST SON RIGHT NOW IS IN DETENTION. MY FAMILY ACCOUNT IN SWITZERLAND WORTH US$22,000,000.00 AND 120,000,000.00 DUTCH MARK HAS BEEN CONFISCATED BY THE GOVERNMENT. THE GOVERNMENT IS INTERROGATING HIM (MY SON MOHAMMED) ABOUT OUR ASSET AND SOME VITAL DOCUMENTS. IT WAS IN THE COURSE OF THESE, AFTER THE BURIAL RITE AND CUSTOMS, THAT OUR LAWYER SAW YOUR NAME AND ADDRESS FROM THE PUBLICATION OF THE NIGERIAN BUSINESS PROMOTION AGENCY. THIS IS WHY I AM USING THIS OPPORTUNITY TO SOLICIT FOR YOUR CO-OPERATION AND ASSISTANCE TO HELP ME AS A VERY SINCERE RESPONSIBLE PERSON. I HAVE ALL THE TRUST IN YOU AND I KNOW THAT YOU WILL NOT SIT ON THIS MONEY.

I HAVE SUCCEEDED IN CARRYING THE FOUR METAL BOXES OUT OF THE COUNTRY, WITH THE AID OF SOME TOP GOVERNMENT OFFICIAL, WHO STILL SHOW SYMPATHY TO MY FAMILY, TO A NEIGHBOURING COUNTRY (ACCRA-GHANA) TO BE PRECISE. I PRAY YOU WOULD HELP US IN GETTING THIS MONEY TRANSFERRED OVER TO YOUR COUNTRY. EACH OF THESE METAL BOXES CONTAINS US$5,000,000.00 (FIVE MILLION UNITED STATES DOLLARS ONLY) AND TOGETHER THESE FOUR BOXES CONTAIN US20,000,000.00(TWENTY MILLION UNITED STATESDOLLARS ONLY). THIS IS ACTUALLY WHAT WE HAVE MOVED TO GHANA.

THEREFORE, I NEED AN URGENT HELP FROM YOU AS A MAN OF GOD TO HELP GET THIS MONEY IN ACCRA GHANA TO YOUR COUNTRY. THIS MONEY, AFTER GETTING TO YOUR COUNTRY, WOULD BE SHARED ACCORDING TO THE PERCENTAGE AGREED BY BOTH OF US.PLEASE NOTE THAT THIS MATTER IS STRICTLY CONFIDENTIAL AS THE GOVERNMENT WHICH MY LATE HUSBAND WAS PART OF IS STILL UNDER SURVAILLANCE TO PROBE US.

YOU CAN CONTACT ME THROUGH MY FAMILY LAWYER AS INDICATED ABOVE AND ALSO TO LIAISE WITH HIM TOWARDS THE EFFECTIVE COMPLETION OF THIS TRANSACTION ON TEL/FAX N0:xxx-x-xxxxxxx AS HE HAS THE MANDATE OF THE FAMILY TO HANDLE THIS TRANSACTION.

THANKS AND BEST REGARD

MRS. MARIAM ABACHA

Sun, 09/25/2011 - 17:45 | 1708586 Earl of Chiswick
Earl of Chiswick's picture

cause what happens is you end up in a place like this

http://www.skymem.com/document.aspx?name=email-2011-2-3t16-48-27.6518z-1...

Sun, 09/25/2011 - 16:58 | 1708494 lolmao500
lolmao500's picture

Latest news from Greece : Government to vote on Tuesday on a new ``special fee`` on property.

Most Greeks still support the Euro (about 60%) and don't want to go back to the Drachma.

The MPs are very tired of the government and everything that is going down, a lot of them are thinking about resigning... which could happen tuesday. Or they could kick out that SOB Papandreou out of office.

 

Sun, 09/25/2011 - 17:03 | 1708506 Black Forest
Black Forest's picture

Most Greeks still support the Euro (about 60%) and don't want to go back to the Drachma

Of  course most of the Greeks are (still) in favour of the EUR because it enables them to accumulate debt with low interest rates.

Sun, 09/25/2011 - 17:00 | 1708500 bugs_
bugs_'s picture

i just had a deflationist nutjobgasm

Sun, 09/25/2011 - 17:07 | 1708519 Dick Darlington
Dick Darlington's picture

More from German "leaders" according to WSJ:

But warnings from the German finance minister, Wolfgang Schäuble, suggested serious obstacles remain. "We won't come to grips with economies deleveraging by having governments and central banks throwing—literally—even more money at the problem," he told the IMF meetings.

He told reporters that the bailout fund can only work within the legal framework of the European Union's treaty, and more specifically, within the agreement governing the bailout fund. Neither of those allows the facility to be leveraged, he said.

Deutsche Bundesbank's Jens Weidmann also said leveraging the bailout fund, specifically by allowing it to borrow from the ECB, would be equivalent to the monetary financing of state budgets, which is forbidden by the EU treaty.

http://online.wsj.com/article/SB1000142405297020401060457659283002099648...

Sun, 09/25/2011 - 17:17 | 1708536 tom a taxpayer
tom a taxpayer's picture

Looks like these two powerful Germans are standing tough and throwing a large pail of cold water on the leverage fantasy fever.

Sun, 09/25/2011 - 17:08 | 1708521 lolmao500
lolmao500's picture

If Germany were to man up and leave the euro (like tomorrow) a war would probably happen in Europe.

The other euro countries would be screwed, going into depression, and of course they would all blame Germany for it. Angry people can easily be manipulated into war.

Sun, 09/25/2011 - 17:15 | 1708534 Catullus
Catullus's picture

Exactly. This was the French thesis in post Cold War Europe by Mitterrand in 1995.

http://www.amazon.com/Mitterrand-Unification-Berghahn-Monographs-Studies...

Sun, 09/25/2011 - 19:53 | 1708900 smiler03
smiler03's picture

I think this talk of war in Europe is a complete fantasy by people who seem to think it would achieve something.

Can you possibly conceive of the UK, France, Germany, Italy etc fighting against each other? Let me see, how would they start. Bomb each others ammunition dumps. Arm the populace with chinese pick up trucks and guns and roam around each other's cities. Blockade each others harbours (the French would win that). 

Third world countries maybe but not a seriously armed nation against seriously armed nation.

That would just be M.A.D. 

Sun, 09/25/2011 - 17:11 | 1708526 ivana
ivana's picture

Germans don't care if EURO drops. Everyone there knows that german export will rise accordingly. Merkel have to play it out herself. Of course ECB will print finally. On the other side FED will preserve illusion that USTreasuries are "safer" than any other gov bonds.

That's why this "crisis" will last for months. All puppet media , various Nobel idiots, soros bastards, rating agencies etc will spur the collapse feeling fom time to time. ECB will print but nothing will improve, bancrupcies will continue after Greece.

FED has changed game and will dry up global liquidity soaking USD back to give it to us.gov (which is bankrupt) for elections and possibly new war. Monetary ice age for circa 12-16 months.

USD will rise for months and US citizens will be proud again ... proud they can afford more imported goods. So USD up up up than elections than USD down down than war than USD again up up but yields also up up up and then ... MAJOR RESET sometime in 2013 or 2014

Behind curtains, EU banks and some corrupt governments will be taken over by NWO and major banksters.

Sun, 09/25/2011 - 17:22 | 1708543 Piranhanoia
Piranhanoia's picture

A straight actor has to suddenly do improv comedy.  This isn't likely to work out well.

Sun, 09/25/2011 - 17:28 | 1708554 magpie
magpie's picture

If this goes the way of the early 2009 playbook, total mark to fantasy and extra bank stocks next

Sun, 09/25/2011 - 17:34 | 1708569 PY-129-20
PY-129-20's picture

Most people here are right about the vote. CDU will lose some of their votes, FDP too - Linke will probably vote against it, but then you have still the majority with SPD and Gruene (Greens) votes.

So it would only mean a crisis for Merkel and her CDU, but there is no chance that they will vote against it. Sadly.

Another thing:
The guys over at the volcano blogs are currently at Defcon 3.

Sun, 09/25/2011 - 17:35 | 1708570 fdisk
fdisk's picture

Prepare for triple high in everything, believe it or not.

and Higher (YES) inflation.

Huge trillions QE world-wide:

"Multi-trillion plan to save the eurozone being prepared"

F*CK CHARTS at this point they don't mean anything.

http://www.telegraph.co.uk/finance/financialcrisis/8786665/Multi-trillio...

Sun, 09/25/2011 - 17:40 | 1708577 fdisk
fdisk's picture

Follow the money, If you see Silver dropping, load up on

ZSL? - ProShares UltraShort Silver (ETF) (NYSE)

Receive 2% on every 1% Silver Drop, take profit and buy Physical,

f*ck them.. That's is why all those Double Ultra shorts are there.

Sun, 09/25/2011 - 17:48 | 1708593 jmcadg
jmcadg's picture

Merkel is waiting for The Bernank to print, then she can't be blamed for the hyperinflation as this is Germany's biggest fear - a return to the Weimar Republic.

Sun, 09/25/2011 - 17:49 | 1708594 disabledvet
disabledvet's picture

This is power politics plain and simple. These leaders now know it's time to position your nation "post euro" this is a smack down of merkel. She's a weak leader of an uber strong nation. Same cannot be said of berlusconi nor of the most powerful Continental right now President Sarkozy. That could change once Putin wins of course.

Sun, 09/25/2011 - 17:55 | 1708602 fdisk
fdisk's picture

Putin wins? ha-ha-ha.. Putin and Medvedev Russian
Dolce & Gabbana. Who is president who is who been decided
between very few people, everything else is details, Besides
Putin is actually the strongest leader in Whole Russia anyways,
Medvedev for now just a middle tier TEMP manager anyhow.

Sun, 09/25/2011 - 18:15 | 1708638 bob_dabolina
bob_dabolina's picture

LOL! Who just saw silver hit $29.04? 

Sun, 09/25/2011 - 18:36 | 1708709 Caviar Emptor
Caviar Emptor's picture

Euro/US stimulus plan B: pre-paid shopping cards, 1 per citizen, redeemable for Chinese products and Saudi petro products. In return China and Saudi buy Greece and lease it back to the Greeks. 

Sun, 09/25/2011 - 18:39 | 1708718 CapitalistRock
CapitalistRock's picture

Silver trading 4.11% lower Sunday night. Clearly, everything was not priced in.

Sun, 09/25/2011 - 19:13 | 1708805 msmith
msmith's picture

Bearish price action for Gold last week.  Here is an interesting bearish bias analysis after a short term upcoming correction. http://bit.ly/pN2otj

Sun, 09/25/2011 - 19:33 | 1708858 supermaxedout
supermaxedout's picture

Ms. Merkel I love you!!!!!!!!!! 

This is what I think from her:

Everybody thinks she is dull but that is her trick. She is not pretty but she can show female charme when it is useful.   She understands math much better than most other politicians since she is by profession a physics scientist. That was before she "decided to become a politician".  Five years ago she was a blank page as far as economics was concerned .  But she realized early that this is " the theme" of her time as chancellor.   She is pragmatic and of course fast learning.  A real clever brain with an instinct for power and networking. Now the world is listening when the "hausfrau" from Germany is saying something concerning the world economic system. She titled herself as hausfrau a few years ago knowing that the term economy means simply household. And the hausfrau is the boss from the household. Thats it.

She has no skeleton in the closet which means she can not be manipulated by blackmailing. She is clean.

Her past as a communist youth cadre in Eastern Germany is known to everyone in Germany. In this function she was even in Moscow for furher education. I dont think her English language skills are very good but she speaks very good Russian.  She knows about the importance of the German Russian relations. This is crucial for both economies. But she knows on the other side, that Germany can only prosper in peace with its European neighbours. Therefore she has to be in the same boat with them. And she has to save the Euro from the "money printers" at the same time. Not an easy situation all in all.

So its no wonder that the courageous Ms. Merkel is public enemy number one in the US, UK and from Mr. Sarkozy.  Nobody knows the outcome of the present situation but one thing is already clear. It is a luck to have somebody like Ms. Merkel at the rudder in Germany. She is no weakling like most other politicians. I do not see any other leading politician in Europe having the same format as Hausfrau Merkel. If she succeeds she will deserve a new title: Ms. Europa.

I wish her all the luck she needs.

 

Sun, 09/25/2011 - 19:36 | 1708863 msmith
msmith's picture
Longer term equities picture seems very bearish http://bit.ly/pqc7LL.
Sun, 09/25/2011 - 20:00 | 1708902 Tuffmug
Tuffmug's picture

The parasitic creditors in charge of our world have learned from Lehman and from Japan. From Lehman they learned that they cannot allow any failure or default of a large player because it risks financial chaos that could wipe out the debt that is their power and sustinence. From Japan they learned that they can extend and pretend for decades, keeping insolvent banks and a whole country functioning via fraudulent accounting, ZIRP, money printing, and deficit spending.

The endgame is clear. (It is the IMF's standard endgame). Absent a revolt by the Greek people or the Germans or French, there will be no default or restructuring and no contagion to the other PIGS.  The EU and IMF will support Greece and the other PIGS just enough to keep them alive as a debt slave colony and their assets and future will be slowly bled from them to service the massive debt. 

Capitalism is long buried. Parisitism is the new economic system. 

Sun, 09/25/2011 - 20:58 | 1709048 Esso
Esso's picture

I'll bet you're right. The leeches will probably drag this on for years.

Sun, 09/25/2011 - 20:18 | 1708958 knukles
knukles's picture

Psssst!  Gotta deal for ya'

Only as bad's Lehman?

Suggest you take it and run.
That's cheap.
Small potatoes, gnocci, weinerbreastsundcoohersnerts, whatthefuckever.

(PS.  Pssssst!  If you really fucking think that Greece and the dominoes whatever they might be, even small ones, is all's the size of one, ONE,  ONLY ONE FUCKING brokerage firm.  Do it and get it the fuck over with.)

(PSS.  Angie, I've longed for the reaches of your uppermost inner thighs, ever yet untouched by a man's hands, pristine, pure white as driven snow settling gracefully, serenely atop the great mountains of Bavaria, untouched, never seen the light of day, un... uh...  un... ah... ummm... unspoiled.  Yeah, that's it unspoiled!  So I give you the above advice in all seriousness.  If you think that's all it is, go for it.  But I warn you.  Your knowledge of economics and finance I suspect is less, far less, like just about naught, similar to the knowledge of men posessed by your upper inner thighs.  Naught.  Like Greece goes, so too the banks, etc., and it's all but done anyway.  Get it over with!)

PSSSS.  Quit the bullshit, the charade.  It's become a disaster.  Even my dead stock broker knows a bad line when he can't hear it anymore.  You folks are driving the terminal silver stake into the heart of European Credibility.  Then again, maybe just confirming the rest of the world's doubts about your lack of seriousness and adult capacities of any form of rational thought.

PSSSSSSSSSS.  And if I were G-Pap, I'd be really fucking pissed that you'd compare us to a common brokerage house.  If we're that small, inconsequential, then what's your fucking problem?  Can't solve anything, no matter how small and insignificant?  Give it some pause.  In the words of the immortal Silverstein of WTC7 fame, just "Pull it."

Sun, 09/25/2011 - 21:12 | 1709075 PulauHantu29
PulauHantu29's picture
IMF admits it might not be able to save the Euro as it emerges that current threat is 'worse than crisis in 2008'

By Alex Brummer and James Chapman

Read more: http://www.dailymail.co.uk/news/article-2041797/IMF-admits-able-save-Euro-emerges-current-threat-worse-crisis-2008.html#ixzz1Z13j2z6T

Very possible an EU rupture with death of the euro will drive dollar even higher.,....strong dollar will impair any hopes of USA recovery...

OUCH~!

Sun, 09/25/2011 - 23:13 | 1709292 Tuffmug
Tuffmug's picture

LaGuarde using Hank Paulson's playbook. First, scare the shit out of everyone that the world is about to end because of a financial "crisis" which somehow will stop all clocks and prevent the sun from rising. Second, demand an obscene amount of money to save the world from the "crisis". Third, after you've given the money to all your banker friends then ask for more so the bankers can get a bonus and fatten their balance sheets for their great work in saving us from their fraud and theft. Fourth, celebrate the biggest theft in history!

This whole "crisis" is a con job to get other suckers to foot some of the bill. EU whores have already conned IMF into footing 25% of the bill for Greece and has ECB doing illegal QE in buying 150 billion plus in Greek, Italian, and Spanish debt. They even conned the Chinese into buying debt. They are just playing up the possible death of the Euro to extract more money and to get the Eurobonds and the United States of Europe to consolidate power.

Sun, 09/25/2011 - 22:55 | 1709262 slewie the pi-rat
slewie the pi-rat's picture

merkel loves the eurozone

poor eurozone!

and poor merkel, too...

Mon, 09/26/2011 - 01:06 | 1709502 scrappykoala
scrappykoala's picture

This is starting to feel like the people predicting the rapture or the end of days or something. The difference is we will see something big but we dont know how big the same thing is we dont know the time because these clowns are good and juggling.

Mon, 09/26/2011 - 01:28 | 1709533 winter is coming
winter is coming's picture

Tyler, can we start a ZH pool for when Greece defaults? Each person can pick a date and the winner gets all the bragging rights

Mon, 09/26/2011 - 01:56 | 1709584 Tuffmug
Tuffmug's picture

I pick never!

Mon, 09/26/2011 - 02:46 | 1709731 goldenagehorde
goldenagehorde's picture

I also go with never.

Mon, 09/26/2011 - 07:17 | 1710316 trx
trx's picture

Poor Angie...she's already a lost cause...

She's made a lot of promises she won't be able to keep, right now she's fighting not only to save the euro zone, but also to save her government and her personal political careere. 

And with lunatics like Berlusconi running wild? 

(By the way - what happened to those USD 134 billion in "fake" bonds captured at the Italian/Swiss border a couple of years back... anyone?)

 


Europe: A Lehman Collapse in Slow Motion, Former Lehman Banker Says

 

 

 

 

 

 

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