Charting Europe's Toxic Debt Jack In The Box - Redux

Tyler Durden's picture

That Europe is, and for a long time has been nothing more than one spring club loaded, and destructive Jack in the Box, just waiting to be unleashed upon the world when the conditions are most dire, is by now nothing new to regular readers: it was roughly two years ago when we presented for the first time the case of how European bank debt is not only orders of magnitude greater than American debt, but that the equity tranches is a tiny sliver in a world where one bank's assets are another bank's liabilities, and any modest write down of debt would result in a cascading domino effect which wipes out billions and possibly trillions in "book value." It is also yesterday, that we refreshed on why a Greek forced write down of up to 60% would promptly spread like wildfire and lead to every troubled European sovereign to demand the same conditions as Greece, pushing French banks (and their US proxies, we all know who they are), to the edge of the abyss because while one Greek write down of 50% may be viable, the same treatment afforded to Italy (which will become inevitable) will simply topple French banks. And putting it all together is this chart redux of who owes what to whom via the NYT. It is nothing new, and it speaks for itself.

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Fips_OnTheSpot's picture

Third EU-summit (in a week) announced for Thursday.

The results from EuZo summit on Wednesday shall be ratified by all EU-countries on Thursday. Farce.

bigwavedave's picture

The Euro is finished. They fucked it up through lies and cheating. Suprize Suprize. Give me my Escudos and I'll go play golf on the Algarve. Fuck the French banks. Sacre Bleau!

Banksters's picture

Ladies and Gentlemen, we struck an iceberg years ago. With much conniving and effort we seized your pensions and savings to plug the whole, but alas, it did not work. The unsinkable ship is now taking water on at an alarming rate, but do not worry about us. For we are now shuttling off in the life rafts and soon enough will be sitting by a warm fire in the country eating foie gras and gasping at the violence that poverty can make! In the meantime, the deck chairs are yours... Enjoy the music, too!


zippy_uk's picture

PS - don't worry about your possessions in your luggage as we have swiped all your jewlery and money before we boarded the lifeboats.

This is justified as fees because we engineered a financial solution to prevent this problem.



sheeple2012's picture

A summit to ratify the summit? wtf?

cossack55's picture

I assume the Icelanders are in an extreme state of LMAO.  Hooray for Iceland.

ciscokid's picture

All paper currecies are toast.

stoneman sacked's picture

When will it all end. I am so tired of waiting.

Monedas's picture

It seems longer when we analyze every wrinkle, mole and "taint boil" of Europe's derrier (ass hole) with tongue depressor and magnifying glass ! We know it's going to Hell ! Enjoy the ride ! Monedas 2011 Comedy Jihad you're the next stop tour !

Diogenes's picture

It never ends. Just when you think it can't get any worse they turn up the dial on the crazy machine.

Vergeltung's picture

a plan to make a plan.


Fips_OnTheSpot's picture

Currently a presscon running w/ Merkozy.. just blabla about "teh future" and "technical details issues". ALL WILL BE WELL!


Yeah, right.

JenkinsLane's picture

I've saved this jpg and titled it, "The EU Cluster****".


CrazyCooter's picture

The old version of this was from ... Morgan Stanley? I think it was in a PDF of some report they did maybe a year and a half ago. It only showed the five PIGS but it had the vectors between the circles like above.

Anyway, I titled it "The Reservoir Dogs" and it was my wall paper on my PC for quite a while. I tried in vain to find a screen cap of the final scene were everyone has a gun pulled on everyone else ...



UPDATE: This isn't the original, but its the image. Second down in the post.

JenkinsLane's picture

My last post, before I read your reply was "Clowns to the left of me..." Spooky.


Here you go


sangell's picture

reuters has this interactive writedown/bank recap cost tool to play with.

Caviar Emptor's picture

I have grave news: If the Eurozone unravels, prepare for a backlash against Wall Street, who's banks will still hold the paper that condems impoverished Euro nations to debt slavery forever more (derivative or otherwise). Who will pay the bill if they default?? Look to your right, look to your left. If you can't tell who the patsy is, it's you. 

RiverRoad's picture

Yeah, what's the upshot of this extortionist market game they've been playing?  "Pay us now or pay us later....take your pick."

CrazyCooter's picture

Bankers do not produce value in society. As long as they can hold society in contempt, they will retain their power. However, the dirty secret is that society doesn't need the bankers. So when society simply decides to quit playing the game and walks away from the table, its game over.

Chris Hedges had an interview regarding OWS ...

I think he calls it right. What remains to be seen is how this plays out.



DosZap's picture

Caviar Emptor

Agreed, going to the bank tomorrow and removing all cash,(I can't wait for the why,what for, it will take a few days questions) except what is needed for expenses.Of late(been banking same Bank for years,all know me by first name, and vice versa), anytime I go in and write a W/D of over 5k, I get the 20 questions from the Tellers!.

As long as I just do Wire Transfers all's well, no probs. game going on.

Closing Ira's, and cashing out.Pay the taxes, and know I will at least get some of my money.

401k's,need to be closed also..........because WE ARE going to be holding the EU's Ball sack if this does not get solved.

smiler03's picture

+1 and thank you for reminding me to do the same.

Bobbyrib's picture

"Bank for years,all know me by first name, and vice versa), anytime I go in and write a W/D of over 5k, I get the 20 questions from the Tellers!."


They're required to do that. I'm not saying it's right, but they have to do it.

Atomizer's picture

Go long on remote car starter stocks. LOL

1835jackson's picture line is at the end...SELL EVERYTHING IMMEDIATLEY....EU is done for next say hello to the NWO whose mission along is enslavement by debt. PS- one clear sign of a nations imminent downfall is the proliferation of political correctness.

Temporalist's picture

"All around the mulberry bush the monkey chased the weasel"

RiverRoad's picture

But that "Euro libor" was nice while it lasted.......What's the deal with that anyway?  Lots of silence on that.

Alex Kintner's picture

Look how FAT the US has gotten. Really let herself go. She used to be so beautiful. The PIIGS pale in comparison. The US is now the biggest PIG.

Rynak's picture

Hey folks, i got an evil idea.

You see, besides of the kleptocracy, there are two problems:

1. The EMU is shit. You put countries of quite different economic balance and strength into one economic block, and then remove all ways for individual countries to adapt to each other..... and then are super proud, about throwing cash at the imbalances.

2. Too much debt to ever be paid back.

Sooo, let's see - what would happen, if the pushers leave the EMU (hey, they can even keep their own common currency, even if i do not favour this).... while the junkies stay in the euro for 10 further years, and then exit it as well. They do however already get tariffs as a tool ahead of time. What would among other things be the result:

1. Problem #1 would be solved in two phases.

2. Problem #2 would be solved, because.... and this is the cool thing.... via inflation and deflation, the countries would be bailed out, at the expense of the..... banks :-) How so? Well, see, those loans were made in euros :-) But if now the pushers leave the currency, the demand in it will go down, and thus its exchange value.... thus, the loans made by the banks, also lose in value :-)

LawsofPhysics's picture

Seems to me that the U.S. and Japan should also be in red.  What am I missing here?

falak pema's picture

we've flogged this one to lets see the gods play their hands.

slewie the pi-rat's picture

if we put some hebrew letters in the circles... looks like the atomic kaballa, BicheZ!

ziggy59's picture

Jeeze.. Looks like It's fissionable and about to meltdown..

Monedas's picture

Mankind has never been able to resist the temptation to use new weapons.....especially when they kick butt ! Hirosh and Nagy ? After the financial reorder will follow the Nuke Holocaust ! Don't worry...."In the long run....the planet is cooling off !"....Monedas 2011 Comedy Jihad Next Stop Venus Tour i.e. As the fire burns down....scoot your rocking chair closer to the fireplace !

OutLookingIn's picture


Total Global Debt Jubilee.


Total Global War.

zippy_uk's picture

Can't do a debt jubilee because:

* Chinese industry would disintegrate, causing China to disintegrate as there would be no market for their goods they export.

* This would undo all GODs (/Goldman Sach's) good work

* The West would have to make things again. That means you have to employ people in the West again

* The people who put us in this mess would all go bankrupt

* Governments would have to listen to the people again, as there would be no money from overseas and corporations.

Sorry - it would be a disaster. Can't allow it.

sockcutter motorforker's picture

that's certainly a big fat fucking arrow going to china

navy62802's picture

Every time I look at a chart like this of who owes whom money in Europe, it reminds me of WWI in which entangling alliances inflamed military conflict. Pre-WWI Europe was famously referred to as a powder keg, and it only took a relatively small event to ignite the powder. I think this is the same thing, only now it's entangling economic alliances that are our "powder keg." And all it's going to take to spark war is a relatively minor financial event.

I am Jobe's picture

Road kill and Top Ramen bitchezz fro Christmas.