This page has been archived and commenting is disabled.

From Paulson's 3 Page TARP Termsheet To The Euro Council's 3 Page "Bailout" Statement

Tyler Durden's picture


Fresh from the European Council presses comes the complete 3 whopping page statement to bailout the Eurozone (not to be confused with Hank Paulson's 3 page TARP termsheet). There is nothing at all here, but for those who need a paperweight, feel free to print 200 copies and staple them together or something.


And here is Reuters with a summary on what to expect from the complete summit statement, still to be released:

The euro zone aims to leverage its 440 billion euro bailout fund, the EFSF, "several fold" but finance ministers will only agree the details of how that will be done in November, according to a draft statement to be issued after a summit on Wednesday.


The statement, obtained by Reuters, says two options are being considered to leverage the fund, one involving it issuing risk insurance and the other built around it taking part in a special purpose investment vehicle. Both models could be deployed simultaneously, the draft statement said.


The Eurogroup of finance ministers will be asked to finalize the terms and conditions for how the EFSF will operate under the leverage schemes in November, the statement said.


In addition, it said the EFSF's resources could be further enhanced, possibly via cooperation with the International Monetary Fund.


The draft statement also called on Spain to do more to bring its budget into line, while praising it for the steps taken so far. A paragraph on Italy, which is under pressure to do more on pension and other reforms, was left blank but is expected to be added later.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 10/26/2011 - 14:47 | 1813693 tsx500
tsx500's picture

i read every word.   wildly bullish !  

Wed, 10/26/2011 - 14:48 | 1813699 tsx500
tsx500's picture

 N O T    !

Wed, 10/26/2011 - 14:49 | 1813711 GenX Investor
GenX Investor's picture

3 pages, just like the Paulson plan.  It's almost 4 o'clock Gordon... what do you want to do???

Wed, 10/26/2011 - 14:50 | 1813717 Irish66
Irish66's picture


Wed, 10/26/2011 - 14:51 | 1813726 redpill
redpill's picture

Hopping into SDOW at 29.90. This is just stupid.

Wed, 10/26/2011 - 14:56 | 1813760 hambone
hambone's picture

Hey man,

I tire of all the machinations...has anybody jumped ahead and seen how this ends?  Or is it just the never-ending story that goes round and round?

Wed, 10/26/2011 - 15:02 | 1813787 Leopold B. Scotch
Leopold B. Scotch's picture

The faster we run, the slower we go.

Wed, 10/26/2011 - 15:04 | 1813797 redpill
redpill's picture

Time is the fire in which we burn

Wed, 10/26/2011 - 15:12 | 1813840 spekulatn
spekulatn's picture

"Shut the f*** up Donny"

Wed, 10/26/2011 - 15:16 | 1813852 Hard1
Hard1's picture

Amazing, 27 leaders meet and they agree that measures are needed to fix the banking system and that any help will be conditional!!!! not bad for a politicians day work. They must think they are worth every penny the states spend on them.

Wed, 10/26/2011 - 15:06 | 1813807 YesWeKahn
YesWeKahn's picture

Fast forward, QE3, QE4, QE21, DOW 25000.

Wed, 10/26/2011 - 15:10 | 1813830 Troll Magnet
Troll Magnet's picture

When we declare war on (insert your favorite villain here, real or fictional), then you'll know it's all over.  Me, personally, I'd like to wage a full-scale war on breast implants.  Not many things are more disappointing than finding out that a chick you've invested time and money on has fake boobs.  All boobs need to be 999.9 pure.

Wed, 10/26/2011 - 19:28 | 1814709 The Real Fake E...
The Real Fake Economy's picture

truer words have never been spoken on zerohedge

Wed, 10/26/2011 - 22:08 | 1815427 Iam_Silverman
Iam_Silverman's picture

"Not many things are more disappointing than finding out that a chick you've invested time and money on has fake boobs."

Oh yeah?  How about a totally fake chick?  Sorta like Chaz Bone -No in reverse?  I saw one of those working at the coffe stand in the Portland Oregon airport.  Scary!

NOTE: guys, if you are going to become transgendered, please reconsider if you are over 6 foot tall and probably sing (sang?) bass.....

Wed, 10/26/2011 - 15:18 | 1813856 GenX Investor
GenX Investor's picture

Let's see, there are 2 main concepts to ECON... 1) Incentives Matter, 2) There is no such thing as a free lunch.  You can figure out how they get out of this mess (hint:  look at the US housing market, with much less coordination or grace).

Wed, 10/26/2011 - 15:35 | 1813937 slaughterer
slaughterer's picture

The EUR/USD should cool off with the deadline for quantitative capital target stretched out till June 30th, 2012--EZ banks can just take their time, and not bother with panic repatriation.   

Wed, 10/26/2011 - 14:56 | 1813759 AbelCatalyst
AbelCatalyst's picture

We officially entered Bizzaro world!  I read that, looked at the S&P, and was totally dumbfounded!  It is so far from reality I have no words...  Not sure I can hold on much longer...  Ready to throw in the towel!!  

Black is white, up is down, this is that, and nothing has substance - no reality...  ugh!

Wed, 10/26/2011 - 15:11 | 1813836 DormRoom
DormRoom's picture

It's not Bizarro.. Power isn't capital you own, but what you control.

Revealed – the capitalist network that runs the world

Wed, 10/26/2011 - 15:20 | 1813869 AbelCatalyst
AbelCatalyst's picture

The more I think about this i honestly believe the markets were more concerned with seeing actual details, which would have led to a France (and possibly Germany) downgrade almost immediately, and the dominos would have begun to fall.  

In this bizzaro world: Details are bad, plans of plans are good;  Doing something is bad, planning to do something is good

Unfortunately, we live in the real world, and they are trying to defuse a bomb in which they will need to clip either the red or green wire - they can stand around the bomb and talk all they want, and the people watching from a distance may think all this debate is healthy, but in the backround we can all hear the faint sound...  tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock tick/tock, tick/tock....    

Wed, 10/26/2011 - 21:02 | 1815092 Buck Johnson
Buck Johnson's picture

Spot on, spot on. All this is is having a plan for the plan that will involve the plan in some future date, keep the faith. They know that any detail would show how bad this is and as you said instantly have the downgrade on France and Germany making the levereaging even more expensive if not impossible.

Wed, 10/26/2011 - 18:39 | 1814509 MarkS
MarkS's picture

Actually there is one significant piece in there:

The sovereign debt will be carried at the mark to market valuation as of Sep 31, 2011.

So, rather than have to right down the Greek debt on the haircut, they can use whatever thier bank mark to market model says.  I'm pretty sure they were maxed at the 21% haircut they thought that they had agreed to, not the 50% that is coming.  And, that doesn't count the haircut on the Irish debt that will come next because if I'm Ireland I'm not carrying that staggering debt if the Greeks aren't going to have to...

Wed, 10/26/2011 - 14:50 | 1813695 TruthInSunshine
TruthInSunshine's picture

Off topic alert, but here's something to add to the aforementioned paperweight -

- only because it comes remotely close to the idiocy of anyone who actually believes the EU is one step closer to resolving their Eurodebtapocalypse crisis rooted in mathematical proof than they were yesterday (the solution will come, and it will come in a massive wave of blinding red numbers all over the board, but I digress):

The complete lunacy of the day OP/ED, courtesy of the New York Times:

Op-Ed | JAMES LIVINGSTON It’s Consumer Spending, Stupid

Consumer debt and government spending are what really drive economic growth, not private investment.



AS an economic historian who has been studying American capitalism for 35 years, I’m going to let you in on the best-kept secret of the last century: private investment — that is, using business profits to increase productivity and output — doesn’t actually drive economic growth. Consumer debt and government spending do. Private investment isn’t even necessary to promote growth.

...We don’t need the traders and the C.E.O.’s and the analysts — the 1 percent — to collect and manage our savings. Instead, we consumers need to save less and spend more in the name of a better future. We don’t need to silence the ant, but we’d better start listening to the grasshopper.

*James Livingston, a professor of history at Rutgers, is the author of “Against Thrift: Why Consumer Culture Is Good for the Economy, the Environment and Your Soul.”



It's know...

Go into more debt to resolve your debt crisis, and not a mention of the necessity of employment or wage growth to fuel even net-debt consumer spending.

He thinks an increasing number of jobless people, coupled with those still working but making less in real wages (or even nominal wages), can fuel an economic rebound, and save debt-drowned governments, as well....



Wed, 10/26/2011 - 14:51 | 1813728 Darth Sidious
Darth Sidious's picture

remind me not to send my kids to rutgers

Wed, 10/26/2011 - 14:54 | 1813748 chet
chet's picture

Man, that guy sounds like a sociopath.

Wed, 10/26/2011 - 15:19 | 1813857 MolotovCockhead
MolotovCockhead's picture

He who dies with the most debt, wins!

Wed, 10/26/2011 - 14:57 | 1813766 daxtonbrown
daxtonbrown's picture

We live in a time of utter insanity, that is the only way to explain what is going on. Everyone is a liar at a liar's feast, no statistic can be counted on. Balance sheets, who needs stinking balance sheets? Mark to market, pfffft. The only way out is to go to ground and hope to wait out a decade of this crap.

Wed, 10/26/2011 - 15:16 | 1813789 TruthInSunshine
TruthInSunshine's picture

To those of you who mock the esteemed James Livingston (including myself, as he's utterly mockable), I'll have you know that he has lunch with The Bernank regularly, and that he won the 2009 Building A Bridge To Debt Serfdom Award© from the Marriner S. Eccles Ecclesiastical Society.

I eagerly await his next three worka of non-fiction, famed Economic Historian that he is, which are rumored to be titled:

Eternally Indebted To 'The Man' & Forever Digging Deeper: A Keynesian Love Story


With Every Additional Leveraged Loan Gone Sour, Angels Find Their Wings


How Old Man Rothschild Busted My Balls With The Loansharking & I Learned To Love It


Wed, 10/26/2011 - 15:16 | 1813853 Dick Darlington
Dick Darlington's picture

lol! Thanks for the laughs!

Wed, 10/26/2011 - 15:00 | 1813782 Rover
Rover's picture

I think i finally ran out of tears...

Brutal article.

Wed, 10/26/2011 - 15:05 | 1813805 LiquidDreams
LiquidDreams's picture

This guy is frighteningly stupid. "We grew so much when people were spending %120 of their income, gee wiz why don't the consumers just do that again!" If only we could just pile up debt forever. I feel bad for anyone who pays to take a class from this jerk off.

Wed, 10/26/2011 - 15:07 | 1813814 Tao 4 the Show
Tao 4 the Show's picture


Starving farmers only need to eat more. No need to plant more crops.

Wed, 10/26/2011 - 15:10 | 1813828 LawsofPhysics
LawsofPhysics's picture

Relax sunshine he has simply been studying the wrong 35 years of history.  While it is true that debt has fueled prosperity and growth this is sort of like looking in your rear-view mirror to see where you are going.

Wed, 10/26/2011 - 15:11 | 1813832 Hooligan
Hooligan's picture

Would charging silver coins on your amex count as savings or consumer debt?

Wed, 10/26/2011 - 16:27 | 1814121 Manthong
Manthong's picture


I thought this was a clever bit of satire, but after doing a little research, this guy is dead serious.

What's maddening is that this lunacy gets any coverage or is tolerated in serious venues.

I pity the kids that have been contaminated by this idiot.

Wed, 10/26/2011 - 14:48 | 1813697 B-rock
B-rock's picture

Hey, European on my shoe.

Wed, 10/26/2011 - 14:48 | 1813700 YesWeKahn
YesWeKahn's picture

you wanna a logical trade?

Energy stocks rally on weaker oil price.

Wed, 10/26/2011 - 14:49 | 1813704 Irish66
Irish66's picture

I can't stop laughing..2 years for that

Wed, 10/26/2011 - 14:49 | 1813705 drivenZ
drivenZ's picture

is that "Courier New" font? they really stretched that to 3 pages

Wed, 10/26/2011 - 14:49 | 1813707 YesWeKahn
YesWeKahn's picture

Tyler, it is a 3 pages document, thank you for triming the other 197 pages of non-sense.

Wed, 10/26/2011 - 14:49 | 1813713 Gief Gold Plox
Gief Gold Plox's picture

I'm amazed they managed to inflate nothing to three pages. Wish I had that power back in my schooldays.

And so the Eurozone saga continues.

Wed, 10/26/2011 - 14:59 | 1813777 AbelCatalyst
AbelCatalyst's picture

They bumped up the font size to 13 and used double spaces and many bullet points (really!)  

I'm surprised we did not see, "It is very, very, very, very, very, very, very important to..."

Wed, 10/26/2011 - 14:50 | 1813715 YesWeKahn
YesWeKahn's picture

Market is pausing to read these pages right now.

Wed, 10/26/2011 - 14:53 | 1813743 hedgeless_horseman
hedgeless_horseman's picture

I don't read European so well, but they make it even harder by writing in the future imperfect tense.

Wed, 10/26/2011 - 14:56 | 1813756 TruthInSunshine
TruthInSunshine's picture

I never took European, but to be perfectly honest, all those years of French and German lessons may have been for naught anyways.

Wed, 10/26/2011 - 15:14 | 1813793 hedgeless_horseman
hedgeless_horseman's picture

"Any form of public support, whether at a national or EU-level, will be subject to theconditionality of the current special state aid crisis framework, which the Commission hasindicated will be applied with the necessary proportionality in view of the systemic characterof the crisis."

Google translated from European to American...

"Public will be subject to the state with view of the systemic crisis."

Wed, 10/26/2011 - 22:13 | 1815452 Iam_Silverman
Iam_Silverman's picture

"Google translated from European to American...

"Public will be subject to the state with view of the systemic crisis.""


Cliff Notes version:

Expect your taxes to increase.

Wed, 10/26/2011 - 14:50 | 1813718 caerus
caerus's picture

at least they incorporated italics...that means they're serious

Wed, 10/26/2011 - 15:35 | 1813929 Jena
Jena's picture

No, it just means they're Italian.

Wed, 10/26/2011 - 14:50 | 1813721 PicassoInActions
PicassoInActions's picture

they are using different papaer sizes...

We used 8/11 , they are using 8.5/11

They have more bs on their paper

Wed, 10/26/2011 - 14:51 | 1813725 Mark123
Mark123's picture

So the markets have rallied for a couple of weeks in anticipation of a MASSIVE European solution...we get nothing and the rigged market rallies.  This would cause a normal sentient human beings to question the system.  Not in the mainstream is the basic spin coming out (from Yahoo Finance):


Market Update   Set Alert    


2:30 pm : Recent headlines indicate that participants in the EU Summit are partial to leveraging the EFSF bailout, but that details won't be decided until November. The lack of reaction among makret participants suggests that after all of the buildup the Summit was essentially a non-event and that market participants weren't really expecting any details today.DJ30 +143.99 NASDAQ +10.43 SP500 +11.21 NASDAQ Adv/Vol/Dec 1705/1.35 bln/770 NYSE Adv/Vol/Dec 2300/585 mln/670

Wed, 10/26/2011 - 15:00 | 1813729 Mayer Amshel
Mayer Amshel's picture

Nuffin' about Greece forbidden to buy more arms from France, paid by Germans!?

Wed, 10/26/2011 - 14:51 | 1813730 SheepDog-One
SheepDog-One's picture

Theyve decided to just let it all fail. Theyve already got their underground bunkers stocked, theyll now just go to them and let the billions fight it out topside while theyre all under granite a mile deep.

Wed, 10/26/2011 - 14:55 | 1813751 Ethics Gradient
Ethics Gradient's picture

You know what Dog; for once I nearly agree with you.

Wed, 10/26/2011 - 14:51 | 1813731 melanie
melanie's picture


I'm ashamed to be a European today. Need to ask the communists chinese for help. How low can you go... 
And the whole joke is it will not even work. Economonitor wrote a great article about it this month, see link

Wed, 10/26/2011 - 14:52 | 1813735 Everybodys All ...
Everybodys All American's picture

The market loves it...the show continues. Stay tuned for more stock levitating fun.

Wed, 10/26/2011 - 14:56 | 1813755 SheepDog-One
SheepDog-One's picture

Yea well maybe not so much in coming days. People do realize at some point reality comes crashing back in like a tsunami right?

No one on 9-10 saw 9-11 coming the next morning.

Wed, 10/26/2011 - 15:06 | 1813810 Everybodys All ...
Everybodys All American's picture

It is so crazy all you can do is laugh at it. I agree this will not end well but it may very well be put off for a while and it's because these guys financially control the entire ponzi. Give them credit for now.

Wed, 10/26/2011 - 14:52 | 1813737 Lord Welligton
Lord Welligton's picture

Dear God .......... just let it end.

Press the reset button.

Wed, 10/26/2011 - 14:58 | 1813771 Peter K
Peter K's picture

Yes, me Lord.

Wed, 10/26/2011 - 14:52 | 1813738 citrine
citrine's picture

They seem to believe that brevity is a sister of solution...or something like that

Wed, 10/26/2011 - 14:53 | 1813740 machineh
machineh's picture

'The Commission should urgently explore together with the EBA, EIB, ECB the options for achieving this objective and report to the EFC.'

This is what passes for action: consult some three-letter agencies, then a submit a report.

Wed, 10/26/2011 - 15:14 | 1813845 praps
praps's picture

This calls for immediate discussion!


Wed, 10/26/2011 - 14:54 | 1813745 Dick Darlington
Dick Darlington's picture

10-26 14:23: ECB's Mersch says expulsion of Euro-Zone member state would be...


Delusional idiot. EFSF is THE atomic bomb. Expulsion would just be the one and only right decision in the longer term.

Wed, 10/26/2011 - 14:54 | 1813746 dasein211
dasein211's picture

Perpetuity Bitchez!

Wed, 10/26/2011 - 14:54 | 1813747 chancee
chancee's picture

And the 'Fast Money' production team is rushing to figure out how to weave this into a storyline of why everyone should BUY, BUY, BUY!  Terranova, Brian Kelly, and Seymour are on a conference call guiding them through the process.  Sad, pathetic men...relying on a TV show to make money in the stock market.

Wed, 10/26/2011 - 14:55 | 1813750 carbonmutant
carbonmutant's picture

Lots of weasel clauses...

Wed, 10/26/2011 - 14:57 | 1813762 spastic_colon
spastic_colon's picture

I live in a school district that had several unsuccessful tax increase votes over the years, parents complained about poor school conditions etc, it was clear the aging population in the area was not in favor of more taxes.  The school board then decided to announce many "potential" school closings and mergers, even sending out a list.  Irronically 98% of the schools were on the list!  The community was in outrage......and there is your moral.......just the threat of an action motivates the populace enough to influence a wanted outcome, in this case higher taxes in the next vote............quite ingenious.......Europe knows exactly what it is doing, do you not think they own US equities?  Please.  I hate to say I was correct on the announcement for today, so now the other predictions will follow.

Wed, 10/26/2011 - 14:57 | 1813763 pauhana
pauhana's picture

Looks like one of my old term papers.

Wed, 10/26/2011 - 14:57 | 1813765 Voltaire
Voltaire's picture

The only thing that is going to happen in the end is that the ECB becomes a true lender of last resort. And vooousch...there goes all this crisis to the historical archives and we can rally on.

Wed, 10/26/2011 - 14:58 | 1813769 Josh Randall
Josh Randall's picture

I hear the working title for this material originally was "Saving the Eurozone: He ain't heavy, he's my Brother"


Wed, 10/26/2011 - 14:58 | 1813773 unionbroker
unionbroker's picture

the market would have run up on a blank page , why rtead when it is so musch easier to just make stories up. How about "Japan to buy Greece to relocate the population of Tokyo "

Wed, 10/26/2011 - 15:00 | 1813778 chancee
chancee's picture

Que the 'emergency props rooms' at all the primary dealers.. ALL ATTENTION ON SPY AND THE ES.  EVERY ASK PRICE MUST BE HIT.

Wed, 10/26/2011 - 15:00 | 1813779 Pig Brotha
Pig Brotha's picture

That's it?

That was like spending a couple of months in lock up thinking about banging your super hot girl and when you finally get out she tells you she's on the rag and just wants to cuddle...

Wed, 10/26/2011 - 15:05 | 1813802 Mark123
Mark123's picture

Thank you for that laugh....sure need it today!

Wed, 10/26/2011 - 15:01 | 1813781 AccreditedEYE
AccreditedEYE's picture

OHHH! THANK GOD! THE WORLD IS SAVED! I can go back to living beyond my means again and buying financial assets at the top of peaking bubbles! joy!

Wed, 10/26/2011 - 15:04 | 1813788 NEOSERF
NEOSERF's picture

Clearly the markets look at any botched attempt to tangibly deal with the situation as a positive...From an investment standpoint, I want this to ramp over 12K in the coming weeks for any reason because the hammer will come down harder ie. every up day from here takes risk out of my upcoming short.

Wed, 10/26/2011 - 15:03 | 1813790 American idle
American idle's picture

Just in from the pits...

A collective "WAIT, WHAT??"

Wed, 10/26/2011 - 15:03 | 1813794 RobotTrader
RobotTrader's picture

Like I said.

These guys are not stupid.

Some "scheme" will be concocted to please Wall St. and the investing pubic.

Whether it works or not is immaterial.

People just want an excuse to chase stocks and make some money.

Wed, 10/26/2011 - 15:09 | 1813826 Everybodys All ...
Everybodys All American's picture

The scheme is market control as well as public relations. This sounds to me like socialism has entered the capital markets in spades.

Wed, 10/26/2011 - 21:28 | 1815196 UP Forester
UP Forester's picture

No one noticed they will lever it up "several times?"

10x - 15x oughta get 'em through the end of the year....

Wed, 10/26/2011 - 15:03 | 1813795 tahoebumsmith
tahoebumsmith's picture

Maybe the head of the European Council should now give a closing speech to its victims that is just as inspiring as Hank Paulson's was after he looted America for a cool TRILLION... The sucking sound just gets louder and louder... OBTW Hank, you should work on that body language thingy...

Wed, 10/26/2011 - 15:03 | 1813796 SwingForce
SwingForce's picture

They must think we are complete idiots.

Wed, 10/26/2011 - 15:04 | 1813800 Yellowhoard
Yellowhoard's picture

This is like the Chasing The Dragon game on Southpark.

Wed, 10/26/2011 - 15:05 | 1813803 YesWeKahn
YesWeKahn's picture

The market seems to like that. Stupid as expected. Rally to continue.

Wed, 10/26/2011 - 15:05 | 1813804 Aductor
Aductor's picture

This only proves that they are either clueless, have not understood how serious the situation is, cannot agree or all of the above.

Wed, 10/26/2011 - 15:05 | 1813806 melanie
melanie's picture

Looking forward for Sarkozy's attempt to raise the retirement age from 62 to 67 in France :)

Wed, 10/26/2011 - 15:06 | 1813808 chancee
chancee's picture

Market tanks into the close... guarantee

Wed, 10/26/2011 - 15:07 | 1813811 Odin
Odin's picture

Christ what a serious waste of perfectly good trees...

Wed, 10/26/2011 - 15:07 | 1813815 Frank N. Beans
Frank N. Beans's picture

well THAT was anti-climactic.  I musta been thru a 100 bags of popcorn the last 3 weeks waiting for the lid to blow, and we get THIS!?

Can we just jump to 2012 already and be done with it?

Wed, 10/26/2011 - 15:07 | 1813816 smoked
smoked's picture

Was ist das auto mit fahr verGnügen boot it with nukes lazyfairchair re-creation line...

Wed, 10/26/2011 - 15:08 | 1813820 melanie
melanie's picture

Default imminent ... Sarkozy, Merkel Said to Want to Meet Bankers Tonight on Greece

Wed, 10/26/2011 - 15:31 | 1813923 Piranhanoia
Piranhanoia's picture

I got the real translation;    Merkozy said to "apply grease" to meet tankers at night near beach.

Wed, 10/26/2011 - 15:08 | 1813821 Belarus
Belarus's picture

I wondeer if it's possible for FT to release a rumor on the day of the Summit? Now that would be classic. 



Wed, 10/26/2011 - 15:09 | 1813824 RobotTrader
RobotTrader's picture

Dow stocks still doing OK.

Hard to be bearish.

When "widow and orphan" stocks like WMT are pushing 3-year highs.

Seems like any Dow stock that pays over 2.5% yield is now trading as a "momentum" stock.

I mean, really, look at INTC.

Wed, 10/26/2011 - 15:09 | 1813825 orangedrinkandchips
orangedrinkandchips's picture

Extraordinary delsusions and the madness of crowds......


Everything you need to know about finance in one book. Written over 250 years ago...same shit...

Wed, 10/26/2011 - 15:24 | 1813888 machineh
machineh's picture

Today's sequel: 'extraordinary delusions and the madness of krauts'

Wed, 10/26/2011 - 15:30 | 1813919 s2man
s2man's picture

is that back fat sticking out between the straps?  ewww.  and I thought buzzsaw's av was gross...

Wed, 10/26/2011 - 15:10 | 1813827 Sequitur
Sequitur's picture

I still can't get over that phrase, "highest quality capital." What in the fuck does THAT mean? This isn't any recognized term in accounting or finance.

What a joke. Absolute joke.

Wed, 10/26/2011 - 15:14 | 1813842 Mark123
Mark123's picture

Like I said has as much credibility as the vendor in the Grand Bazaar in Istanbul telling you that the $50 Rolex he is trying to sell you is the "highest quality".


This has to be the most incredible disappointment in a long time....

Wed, 10/26/2011 - 15:19 | 1813864 JohnG
JohnG's picture

It means "the least smelly shit."

Wed, 10/26/2011 - 15:10 | 1813829 Mark123
Mark123's picture

Merkel is F--ked....and this is not good for France and it's crony pals in the long run.  Read the quotes from the debate in the German parliament (from telegraph):


Dr Merkel has won her vote. She secured an "own majority" for proposals to leverage the €440bn bail-out fund (EFSF) into the stratosphere, with the support of some very sheepish looking law-makers from posturing Free Democrats and Bavaria’s Social Christians.

But what a price she paid. The credibility of her team is shattered. Europe has all but destroyed her, even if she manages to limp on to the next crisis.

As she glowered darkly, speaker after speaker from the Social Democrats (SPD), the Greens, and Die Linke, asked how she could possibly reconcile her plan to leverage the EFSF to €1 trillion or €1.5 trillion (we still don’t know how much) with solemn pledges to the Bundestag just three weeks ago that there would be no such leverage.

"Shameless abuse of the truth," was the verdict of SPD leader Frank-Walter Steinmeier. The government had acted "tactically" at every turn, "misled the people", "held back information", "crossed every red line", brought Europe "to its knees" with botched policies, and lied blatantly about EFSF leverage.

"You came here to say there would be no leverage, not three years ago, not three months ago, but three weeks ago. You denied everything."

"This is a matter of democracy in our country. Trust is the resource with which we all work." (For those German speakers who watched the debate, excuse my instant and loose translation, but I think it is not far off.)

Die Linke (Left) leader Gregor Gysi was electrifying. "It is the arrogance of power," he began, and never let go.

"Every week you come up with a different story about this crisis."

"We were told there would be no leverage and you have reversed everything in a matter of weeks. Now we learn that the 20pc loss will fall entirely on taxpayers. They alone will pay. That is the decision you are taking."

"Why don’t you tell German taxpayers the truth? They are being asked to pay the losses for French banks."

Green leader Jürgen Trittin rebuked Dr Merkel for hiding the true implications of EFSF leverage, particularly the plan to insure the first 20pc of losses on Club Med bonds.

"Why are you shying away from telling the people the truth? You must tell people what this leverage means. You must explain to them what the risk is, and why it is necessary. But you wriggled out of it."

"You came here three weeks ago and said there would be no leverage. This is the sort of thing that unnerves people."

And so it went on, raw red-blooded democracy.

Wed, 10/26/2011 - 15:11 | 1813837 comrade rally monkey
comrade rally monkey's picture

Their efforts are now aimed at the 'real' economy.

I'm feel like relivieing myself.

Wed, 10/26/2011 - 15:16 | 1813849 Piranhanoia
Piranhanoia's picture

ECOFFIN,   fixed it.

Wed, 10/26/2011 - 15:26 | 1813900 Falcon15
Falcon15's picture

No matter how much you polish a turd, it is still a turd.

Wed, 10/26/2011 - 15:27 | 1813905 smoked
smoked's picture

N ZH transport feed chappies NINETY-NINE

Wed, 10/26/2011 - 15:30 | 1813916 jmcadg
jmcadg's picture

@ machineh

'consult some three-letter agencies'

I popped into KFC, the Colonel gave me three sheets of A4 he'd used to wipe his arse. It was more useful, in fact more nutritional than his normal slop.

Wed, 10/26/2011 - 15:39 | 1813946 curbyourrisk
curbyourrisk's picture

I think they are going to sell the bull case to investors and short it out the back door.  They consulted with Goldman and JPMorgan and they believe this is the best way to go.

Wed, 10/26/2011 - 15:53 | 1813991 Jackson Wood
Jackson Wood's picture

The last two years have been so depressing. Waiting for reality. Problem is there is no reality. Only debt. And work. Must pay debt. Must work. Must pay debt. Must work. Two week vacation. Must pay debt. Must work. Repeat fifty years. There is no escape. Smile and take it. And don't ask any questions.

Wed, 10/26/2011 - 15:53 | 1813993 BeachBummed
BeachBummed's picture

Is there no help for the widow's son?  There, now somebody will do something........somebody?  Anybody?

Wed, 10/26/2011 - 15:54 | 1813998 junkyardjack
junkyardjack's picture

I haven't seen such liberal use of spacing since I had to write papers in college.  Maybe someone should set standards on how big margins can be, they could have fit the whole thing on 1 page.

Wed, 10/26/2011 - 16:04 | 1814032 Colt atticus
Colt atticus's picture

That hopium I have been smoking since SP 1100 is tasting pretty good. I am taking some profits, but you end of the system bears may be disappointed for a few months. I follow the lead of credit and currencies and like a good trader I let the markets action tell what to do. When the facts change, what do you do?
I hope you folks are not managing any money.

Wed, 10/26/2011 - 16:04 | 1814035 Colt atticus
Colt atticus's picture

That hopium I have been smoking since SP 1100 is tasting pretty good. I am taking some profits, but you end of the system bears may be disappointed for a few months. I follow the lead of credit and currencies and like a good trader I let the markets action tell what to do. When the facts change, what do you do?
I hope you folks are not managing any money.

Wed, 10/26/2011 - 16:21 | 1814099 peekcrackers
peekcrackers's picture

Would you like some German deutschmark crout on your swiss frank?

Wed, 10/26/2011 - 16:35 | 1814146 Rastamann
Rastamann's picture

i joined a gym the other day...... their agreement was longer and more in depth.

Wed, 10/26/2011 - 17:25 | 1814281 jmcadg
jmcadg's picture

That's not three pages, that's three half pages, I guess that's leverage for you.

Wed, 10/26/2011 - 17:33 | 1814298 jmcadg
jmcadg's picture

Just decided to actually read it. What a waste of 2 minutes of my life, and I'm a slow reader.

Fuck, there is NOTHING in it. Forgive me for stating the obvious, shit I could get a job in the EU at this rate.

Just seen David Cameron on BBC desparately trying to look like he has some sway in all this. Laughable. He was at the dinner for the outcasts in Maccy D's. 

Would you like fries with that sir, or should I say frites!

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