Citigroup Has The Best Summary Of Europe's Fiasco Yet: "Losses Are Unquantifiable"

Tyler Durden's picture

Feel like every day Europe is juggling hot potatoes? You are not alone. As the following graphic summary from Citi's Matt King (whose insight into Europe, liquidity conduits, shadow banking and a comprehensive picture of modern financial "innovation" has rapidly become second to none) shows, the hot potatoes are getting hotter by the minute, and are flying ever faster and higher. But the kicker: King has the best punchline on Europe we have yet encountered: "Losses are unquantifiable" Q.E.D.

Passing The Potato

Europe - and no less most of the developed world - is caught in a self-reinforcing deleveraging process.

They are caught in a vicious triangle.


Asset Prices Are Overbaked

Asset prices are reconnecting with the real world, but the debts are hard to eliminate.

When Asset values drop, the debts remain!


Chipping Away - Deleveraging has Barely Started

Shifting from Private to Public balance sheets - Creating new risky assets.

Merely shifting from one pocket to the other creates MORE problems


But Who Will Buy The 'Hot Potatoes'?

Required Premium is greater than the Sustainable Premium; and Spain and Italy (among others) are getting uncomfortably close to the the cliff...

Individual Rationality May Be Collectively Disastrous


...Which leaves question of: Going Concern or Gone Concern? for Spain - but this is far more than a Periphery Problem.


Losses Are Unquantifiable - And Highly Profitable!


Source: Citi

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fonzannoon's picture

If the market has not priced any of this in by now then maybe it just won't. Maybe the market remains this place where the few remaining people play around until they run out of money and disappear too.

old naughty's picture


Aren't the accountants supposed to work ot?

"...few remaining people play around..."

Should fewer and fewer students join the ranks of accountants; lawyers; doctors; ugh, heck, engineers (sorry folks, THAT'S ALL!)...

Muppet of the Universe's picture

Just remember, according to zero hedge you shouldn't be trading or trying to create a profit to use to protect yourself.  You should have a duffle bag of gold around your shoulders, one hand wrapped around a bag of beans and the other clutching a benelli.  ZH you MF'ers are fucking crazy.  I cna understand, picking up pennies in front of a steam roller is bone headed, but to pretend ppl shouldn't trade the market?  LOL get fucked.


& the losses ni europe are totally quantifiable.  The answer is 1.618 quintillion.

StychoKiller's picture

When the killbot(s) offer you a claw to consumate yer trade(s), count yer fingers, if any are left...

AldousHuxley's picture

"unquantifiable" = mark to fantasy accounting


mark to market that shit and see most western banks go BK.




gold-is-not-dead's picture

Of course it's unquantifiable. Kim Stolz still didn't send them her invoice. :)

goldfish1's picture

"Losses Are Unquantifiable"

Of course it's quantifiable.

Quantifying it means exposing the whole rotten underbelly of the beast for the world to see.

That's the part he doesn't want to be quantifiable becasue then who's going to buy the beast?

Brother Sebastian's picture

America's losses, unlike Europe's, are quantifiable.  But who cares.  Benny-boy and Timmy-kins can always create more money out of thin air.  But they're not worried.  As the wise prophet once said, "Everybody lies, but it doesn't matter since nobody listens."

AlphaDawg's picture

The exponential growth of the defecit will expose all, when the people realise the money has lost its value through printing

or we dont print, which would be hell on earth in a very short period of time

Its all very simple really

They WILL PRINT, they always do if they can

Lewshine's picture

My point as well AD. "Exponential Unquantifiable", it doesn't matter, you can string digits end to end to Mars and back. Ben and his hoard will continue to micro-manage anything of value that can either help or hinder "the cause" - And what is his cause? It's simply two fold; 1. His sole purpose is to further enrich and strengthen, through public and clandestine unification operations, the world's fiscal power elites. 2. Use their own assets; the world banking system, the international media outlets, and all economic market resources available to him to further his overlords absolute control of: A. The Industrial military complex  B. Technological & Agricultural Sciences C. All Currencies, international & domestic. With this, they own the deed to the earth...And that day is fast approaching, and well beyond stopping this side of divine intervention.

goldfish1's picture

divine intervention indeed

the bigger they are...

sunaJ's picture

Sure it's quantifiable. 60 trillion. See? Easy.

Kassandra's picture

But oh, so reprehensible...

Tunga's picture

Some would say whimsical.

TideFighter's picture

Did we just have a SuperTramp moment?

i_fly_me's picture

Well ... all the world's asleep.

Tunga's picture

...and it would be comical


if the sums weren't so astronomical.



Freddie's picture

Citigroup is an expert in unquantifiable losses.  Shitty bank has lost tens, if not hundreds of billions.  Scum bank like BAC and Wells.

prains's picture

must be run by muslims, frieddie

kito's picture

and tyler continues to churn out posts giving these socialist economists air time........................

Fix It Again Timmy's picture

Well, isn't that special.....?


Put all the big banks in a deep frier for Thanksgiving. It's what America does with turkies.

LawsofPhysics's picture

Can't be quatified or won't be quantified? Jubileeeee, bitchez!

fonzannoon's picture

Quiet night on here. I am drinkin a beer toiling around. Here is what I am listening to. If anyone has a song out there I am all ears.

4horse's picture




hollywood infected
your brain
you really wanted kissin in the rain

0 0 0 0 0 0ohhh

i've been living in the movies
seen puking american dreams

i'm obsessed
with the mess
that's america

i'm obsessed
with the mess
that's america




Enceladus's picture

Cheap whiskey here


Feelin' a wee bit rebellious

or this


O, father dear I oftimes hear you speak of Erin's Isle
Her lofty scenes, her valleys green, her mountains rude and wild
They say it is a lovely land wherein a prince might dwell
So why did you abandon it, the reason to me tell
My son, I loved my native land with energy and pride
Till a blight came over all my crops and my sheep and cattle died
The rents and taxes were to pay and I could not them redeem
And that's the cruel reason why I left old Skibbereen
'Tis well I do remember that bleak November (/December) day
When the bailiff and the landlord came to drive us all away
They set the roof on fire with their cursed English spleen
And that's another reason why I left old Skibbereen
Your mother, too, God rest her soul, lay on the snowy ground
She fainted in her anguishing seeing the desolation round
She never rose, but passed away from life to immortal dreams
And that's another reason why I left old Skibbereen
Then sadly I recall the days of gloomy forty-eight.
I rose in vengeance with the boys to battle again' fate.
We were hunted through the mountains as traitors to the queen,
And that, my boy, is the reason why I left old Skibbereen.
Oh you were only two years old and feeble was your frame
I could not leave you with my friends for you bore your father's name
So I wrapped you in my cóta mór at the dead of night unseen
And I heaved a sigh and I said goodbye to dear old Skibbereen
well father dear, the day will come when on vengeance we will call
And Irishmen both stout and tall will rally unto the call
I'll be the man to lead the van beneath the flag of green
And loud and high we'll raise the cry, "Revenge for Skibbereen!"
JLee2027's picture

Same as the short position in Silver when it goes pop. Unquantifiable except that JP Morgan and the US Fed will be both be instantly out of business.


Beam Me Up Scotty's picture

Dick Bove:

Ignore the fiscal cliff, S&P to 1555

azzhatter's picture

I saw that assclown Bove on with Kudblow. He still had some of Jamie's jizz on his cheeks. He needs a better makeup/cleanup man

nmewn's picture

So, just what is the "euro-citizen" obligation to this mountain of unpayable debt anyways?

I'm constantly treated (really just as to what some retarded Keynesian MSM mouthpiece says "my obligation" is here in the US...which for the record is zero for me (outside of US currency destruction).

Just a question ;-)

hannah's picture

well the last 'euro-citizen obligation' was called war reparations and that guy named...aaaah...hibler or hitner..oh..hitler made it everyone elses obligation.

Darkness's picture

Full note link?

Pejorative Requiem's picture

Unquantifiable isn't so bad. Try figuring out the Fed's balance sheet. Here's a new rally cry for Ben's next put: "We can live with unquantifiable for an undetermined number of years!"

XRAYD's picture

OK, there is one easy answer. We take over Spain (like Puerto Rico) first and then they can apply for statehood.  We are all bi-lingual anyway!

hannah's picture

spain hates americans.....i know several people that 'their life long dream' was to visit spain. they came back bitching about how the spanosh treated them like dirt....

slewie the pi-rat's picture

my son studied for a year in barcelona during high school;  he had zero complaints!]  time back, tho

now?  after 2008, maybe not so wunnerful

they went with the 'american model' didn't they?

RE boom/bust & the debt becomes unpayable

and they don't have the reserve currency...  so they depend on the politics and kindness of neighbors now

...not that the spaniards minded when they were financing and building, flipping and cashing any more than WE did;   of course

as i think about this today, it reminds me of guys who have had triple/qudruple by-pass surgery

after the surgery they get outa the hospital and they feel pretty good

then it hits them, usually;  and they don't feel so good for a while;  a long while;  and then they "recover" more fully

isn't this about what "we" are going thru?

we fail!  we bail!  we by-pass and everything becomes unquantifiable:  it is just yea or nay

so we don't die and we get thru the by-pass surgery and go home for a little QE1 and feel pretty damned good compared to before we went in

and then QE2 and reality sets in:  this sucks and we feel like shit on a stick

the doctors tell us:  do ZERO and just rest and heal and eventually you will begin to feel more like yourself again

meanwhile we can't do much at all and we really do need to rest.  and heal

the time scales are not alike but the processes do seem similar to me today

it is the heart and it is serious but we are expected to keep recovering and we still have our families and our friends and the fuking gooberment and 'centralized dieticians' too

lucky us!


SafelyGraze's picture

that's one of the great things about corporations, which can go extremely negative (debt) and have the negative counted as zero (bankruptcy).

your corporation has a thousand subsidiary corporations. all of them leverage their negligible assets for spectacular sums of borrowed cash. you use the cash to pay yourself (and your employees, but mostly yourself). then assign staggering debt to your subsidiaries, one by one, while keeping the other ones solvent. 

if you do this right, the ponzi lasts for decades as you keep borrowing cash against the subsidiaries still in the black, then shove the debt into yet another bad subsidiary that dies.

remember please to donate 0.01 percent of your final winnings to a charitable cause before you relocate to another country.

bless your heart, you captain of industry.