• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Biderman Bets Against A Better Europe

Tyler Durden's picture


"Europe is in big trouble, and the trouble is getting worse - much worse" is how Charles Biderman begins his latest missive. The diatribe focuses on the shortcomings of both the left (the existing political structure of government-dominated economies) and the right (a German-style austerity program of slashing spending and raising taxes) of inane politicians in Europe as the two main issues of over-spending and declining economic activity come home to roost. Starting from the Euro's inception and its implicit permission to allow each country to borrow as much as they want without regard to what was going on in their local economy is just as pernicious as the cradle-to-grave welfare state that is the prevailing mantra "everyone deserves to be taken care of". Therein lies the crux of the matter as borrowing (excessively) to support the people's supposed 'deserved' welfare is viewed as 'just-and-fair' whereas in reality, simply put, "the economies of most of Europe do not work." The Bay-Area bad-boy does offer reasoned solutions that offer hope for growth as opposed to just austerity for the sake of it as, among other things, he suggests eliminating red-tape to create a more entrepreneurial environment but ultimately he sees the probability of this as low and suggests being short via EUO (the double-levered Euro short) and EFZ (short non-USD developed - mostly Europe - markets).


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Tue, 04/24/2012 - 17:44 | 2371673 SHEEPFUKKER

Truth Chuckie!!

Tue, 04/24/2012 - 18:01 | 2371707 HedgeAccordingly
HedgeAccordingly's picture

get the CIHay on this lady - she is a security risk http://hedge.ly/gFWVSm

Tue, 04/24/2012 - 19:08 | 2371827 Pladizow
Pladizow's picture

He also recomended GLD?!?

Tue, 04/24/2012 - 21:20 | 2372031 markmotive
markmotive's picture

How is it this post has over 6000 views and 95 comments, but the video has only been watched 309 times???



Tue, 04/24/2012 - 21:33 | 2372053 surf0766
surf0766's picture

BLS math

Tue, 04/24/2012 - 23:02 | 2372234 Ahmeexnal
Ahmeexnal's picture

China has now stepped aside in the Syrian "liberation" by NATO forces.


The price asked by China? To send chinese tax collectors to Germany and France (as part of the BRICS IMF bailout of insolvent europe).  Apparently Brazil, Russia and India have also demanded the installment of tax collecting agencies all across europe, as well as having full representatives with veto powers in the europarliament.   What did Merkel tell the Greek people a few weeks ago? Something about loss of sovereignty?  

Round and Round, what comes around goes around I'll tell you why

Another imminent sign of how far europe has descended into full blown fascism: Spain seals its borders.


Tue, 04/24/2012 - 23:05 | 2372258 WonderDawg
WonderDawg's picture

You know the end is near when you're quoting 1980's hair band lyrics to describe current events. Good tune, nonetheless.

Tue, 04/24/2012 - 23:28 | 2372296 JW n FL
JW n FL's picture



Dick BeaterMan is a Fucking Zionist Pig that should be sold for his pork belley fat!

never mind his FaceBook Rules!!

but buy paper gold?


and I call this piece of shit out before.. to no avail and here we are again!

BeaterMan is TRASH!

he is just talking about what the people want to hear.. like any good used car salesman!



AND!! He Hates Free Speech!


Tue, 04/24/2012 - 23:30 | 2372311 JW n FL
JW n FL's picture



Have some real News!!

Short these company's!


POGO sent a letter today to the Senate and House Armed Services Committees recommending that an expensive and severely flawed variant of the Littoral Combat Ship program be eliminated. The letter comes on the heels of POGO's release of Navy documents revealing serious cracking and corrosion problems with the ship--along with evidence of dangerous equipment failures.

The Littoral Combat Ship (LCS) is a surface vessel commissioned to operate close to shore. It’s supposed to be the jaguar of Navy ships: fast and agile, with the flexibility to both engage in surface combat with modern-day pirates, and also take down submarines and mines. There are two variants of the LCS: one built by a team led by General Dynamics, which will cost $345.8 million per ship; and the other built by a team led by Lockheed Martin, which will cost $357.5 million per ship.


Tue, 04/24/2012 - 21:47 | 2372076 Cant see me
Cant see me's picture

Youtube has a glitch, counter stops at 309 often, but it will correct eventually

Tue, 04/24/2012 - 19:32 | 2371869 OldTrooper
OldTrooper's picture

The Secret Service could never stop her!

Tue, 04/24/2012 - 19:34 | 2371875 Peter Pan
Peter Pan's picture

Diagnosis = cancer
Prognosis = death
Treatment = burial

Tue, 04/24/2012 - 21:30 | 2372047 Harbanger
Harbanger's picture

Diagnosis = cancer (socialism)
Prognosis = death (thru fiat printing)
TPTB Treatment = burial (bankruptsy)

Cure = freedom from socialism and fiat $

Tue, 04/24/2012 - 20:44 | 2371976 Cabreado
Cabreado's picture

Another good show, Mr. Biderman.

Looking forward to the episode where you shout to the world that "it's all fucked up, finally in gridlock, and the little children in control are out of answers, and out of control."

Carry on, Sir.

Tue, 04/24/2012 - 21:03 | 2372005 American Dreams
American Dreams's picture

You have a right to obey and a right to kill

There be no shelter here

Tue, 04/24/2012 - 21:08 | 2372011 American Dreams
American Dreams's picture

The frontline is everywhere

Tue, 04/24/2012 - 17:45 | 2371674 Teamtc321
Teamtc321's picture

Bankster giant Bank of America has joined the effort to take down the Second Amendment and deny Americans the right to own and use firearms.

Kelly McMillan, the CEO of McMillan Fiberglass Stocks, McMillan Group International, and McMillan Firearms Manufacturing, recently wrote on his Facebook page that Bank of America has refused to do business with his companies because they sell firearms. Bank of America admitted its decision was political. McMillan’s response was to immediately stop doing business with Bank of America.

Here is Mr. McMillan’s post:


Tue, 04/24/2012 - 18:07 | 2371722 kengland
kengland's picture

Don't worry. With firearm mfg backloged for the next century, they'll be plenty of low cost funding that will come out of the woodworks.

Business is business.

Tue, 04/24/2012 - 18:32 | 2371758 TBT or not TBT
TBT or not TBT's picture

This is called fascism, where business is no longer business, politics is business.   Tyranny will grow like cancer this way.

Tue, 04/24/2012 - 18:46 | 2371782 LowProfile
LowProfile's picture

Clearly BOA thinks it's in their best interest to not support the firearms industry.

And they are right, it's not in their interest.

Unfortunately for them, they are about 50 years too late.

Tue, 04/24/2012 - 19:38 | 2371885 JPM Hater001
JPM Hater001's picture

Yes, and let's hope they are 10 minutes late leaving after the crash....give the kids a sporting chance at a lynching.

Tue, 04/24/2012 - 19:45 | 2371900 Muppet Pimp
Muppet Pimp's picture


Tip from TK's SOH:


First installment tonight, check it out or Tivo if you have the mind to do so

Fisher still holding it down for all the TBTF party poopers here:


Keep the faith Bitchez!


Tue, 04/24/2012 - 20:16 | 2371943 Yes_Questions
Yes_Questions's picture



Thanks Pimp.


Proving once again ZH has the best posters.

Tue, 04/24/2012 - 23:13 | 2372275 WonderDawg
WonderDawg's picture

Just finished watching it. Kind of treated the banksters with kid gloves, but it was still informative enough for someone who isn't well-versed in the financial crisis to get a basic understanding of what happened. Only thing is, watching it, the presentation almost made you feel sorry for the banksters. Rather than really exposing the greed that created the crisis, they sort of glossed over it and talked more about the mechanics of it. And they barely touched on the ineptness/corruption of the supposed "regulators" of the financial system.

Tue, 04/24/2012 - 20:19 | 2371944 Yes_Questions
Yes_Questions's picture



Double plus duplicate post.


Tue, 04/24/2012 - 18:48 | 2371791 UP Forester
UP Forester's picture

Tyranny will grow like cancer?

I don't know if you've noticed, but the wheezing, stumbling, blurred vision, weight loss and constant pain might be indicators of cancer.

The only problem, is that the only doctors that can diagnose it are PhDs of Economics, and their diagnosis tools are a shovel and a gun, and their only prescription is to give sugar-pills and an appointment in 6 months for a check-up.

Tue, 04/24/2012 - 20:24 | 2371949 Yes_Questions
Yes_Questions's picture



at least sugar is "low fat".

oh, weight-loss.


Tue, 04/24/2012 - 19:37 | 2371882 Peter Pan
Peter Pan's picture

Does this mean Bank of America will also stop doing business with the military?

Tue, 04/24/2012 - 20:38 | 2371968 tempo
tempo's picture

How much Fed and State income tax does AAPL pay? How many domestic employees vs how many Foxconn employees?

Tue, 04/24/2012 - 21:22 | 2372036 NewWorldOrange
NewWorldOrange's picture

I doubt that BofA made this decision completely willingly and of their own accord. That gang of hoodlums is in so much trouble with the Courts, I suspect the Obamination Admin probably "made them a deal." Happens all the time.

Tue, 04/24/2012 - 21:40 | 2372063 surf0766
surf0766's picture

Deal > Do it NOW !

Wed, 04/25/2012 - 01:07 | 2372461 Teamtc321
Teamtc321's picture

B of A doesn't want to bank for a gun stock manufacture but probably is the lead on this shit.



Is there a drone in your neighbourhood? Rise of spy planes exposed after FAA is forced to reveal 63 launch sites across U.S.

  • Unmanned spy planes are being launched from locations in 20 states and owners include the military and universities

Tue, 04/24/2012 - 17:48 | 2371681 fonzannoon
fonzannoon's picture

I guess this guy does not understand repatriation? Either that or I don't. I guess I will go with I don't

Tue, 04/24/2012 - 18:01 | 2371708 Sam Clemons
Sam Clemons's picture

Or that any short ETF ultimately goes to zero almost regardless of what the underlying instrument does.

Tue, 04/24/2012 - 20:02 | 2371923 agent default
agent default's picture

What people don't get is that short ETFs are in fact a form of levered ETfs.  Same  with PM ETFs backed by futures and commodity ETFs ,the contago will always get you in the end.  What I don't get is all these investment advisers telling their clients to buy and hold these things for long.

Tue, 04/24/2012 - 21:25 | 2372038 NewWorldOrange
NewWorldOrange's picture

For real. I was kind of surprised to see Gerald Celente went against his own advice in that regard (he got Corzine holed.)

PHYSICAL gold and silver bitchez!

Tue, 04/24/2012 - 18:01 | 2371709 NotApplicable
NotApplicable's picture

Why do you think repatriation is any sort of solution?

Tue, 04/24/2012 - 18:12 | 2371727 fonzannoon
fonzannoon's picture

A few months ago everyone was shorting the euro. It looks like they all took a beating. ZH has been touting repatriation as the reason why the euro has been/will continue to strengthen. This guy is shorting the euro. Thats what I can't reconcile.

Tue, 04/24/2012 - 18:47 | 2371784 Muppet Pimp
Muppet Pimp's picture

There are two sides to every trade my friend.  If you think he is incorrect, than take the other side.  I'm no Biderman fanboy but going long Eur/Usd while the fire is still on is a ballsy bet.  Hell, give it a shot, its just money after all.

Tue, 04/24/2012 - 20:30 | 2371956 fonzannoon
fonzannoon's picture

I don't think he is correct or incorrect. Although I respect your point that if I did I should take a side. All I was pointing out was that his trade seemed at odds with what this site has been touting. I give him a lot of credit however for calling a shot and putting it out there for everyone to follow. That takes balls.

Tue, 04/24/2012 - 20:55 | 2371990 Harbanger
Harbanger's picture

Balls?  If you don't take a side (or stance) then you're a victim of circumstance. I know people hate to hear that, but it's true.  Do or don't, you choose, if only by non-action.

Tue, 04/24/2012 - 21:29 | 2372048 NewWorldOrange
NewWorldOrange's picture



If you choose not to decide

You still have made a choice


RUSH bitchez!


Tue, 04/24/2012 - 21:56 | 2372090 Harbanger
Harbanger's picture

I love Rush!  We all choose free will... when given a real choice.  If you don't stand up for liberty now while you still can, then what will you do later when you're standing on the line labeled, totally screwed? 

Tue, 04/24/2012 - 22:27 | 2372152 NewWorldOrange
NewWorldOrange's picture

Alright! Say, did you know that most of RUSH's early lyrics, mostly penned by Neil Peart, were inspired by the writing of Ayn Rand? And that Ron Paul has cited her as one of his strongest influences? RUSH's label, Anthem, was the title of her second of four novels. Her best one INHO. 2112 is a sort or retelling of that book.

If you like RUSH, you might really like this:




Tue, 04/24/2012 - 23:37 | 2372333 WonderDawg
WonderDawg's picture

Love that tune. Is that you in the video, NWO?

Wed, 04/25/2012 - 00:34 | 2372426 SAT 800
SAT 800's picture

Pessimism re. the Euro, or the Euro zone, does not translate into a a currency pair trade insight because the the currency pairs are managed by the central bankers. The name of the game is race to the bottom, and the Fed and the ECB can, and will, keep the Euro at 1.30 as long as they find it amuzing. All the significant world fiats are devaluing/inflating together.

Tue, 04/24/2012 - 18:51 | 2371792 LowProfile
LowProfile's picture


few months ago everyone was shorting the euro. It looks like they all took a beating.

Since late Feb, unless you are a horrible chart reader and picked a terrible entry, shorting the EUR has been a very profitable trade...  And at this very moment, it's looking like it's going to fall off a cliff.

A ZH has been touting repatriation as the reason why the euro has been/will continue to strengthen. This guy is shorting the euro. Thats what I can't reconcile.


Tue, 04/24/2012 - 20:27 | 2371952 fonzannoon
fonzannoon's picture

I looked at the chart (EUO) and see nothing interesting. There are a lot of monday morning qb's on this site. It would be more interesting if people said what they planned on doing instead of bullshitting what they may have done.


Tue, 04/24/2012 - 21:28 | 2372046 PlausibleDenial
PlausibleDenial's picture

Logged in for this... Agreed, and it has been going on for some time....

Tue, 04/24/2012 - 22:40 | 2372190 NewWorldOrange
NewWorldOrange's picture

That's a fair statement and I agree. I shorted EUR/USD this afternoon at 1.3192 with a limit at 1.3125 and a stop at 1.3233

Will post my exit when it happens.I'm always glad to encourage people interested in trading to try forex. A friend encouraged me about 15 years ago and it's given me the means and freedom to travel the world non-stop for over 10 years while saving serious money. Highly recommend fxcm.com - not a market maker, and they've been great. Their demo is a great way to try out forex. Takes 2 minutes to start and no downloads needed.

Do NOT follow this link or you will be banned from the site!