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.

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tsx500's picture

i read every word.   wildly bullish !  

GenX Investor's picture

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

redpill's picture

Hopping into SDOW at 29.90. This is just stupid.

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?

Leopold B. Scotch's picture

The faster we run, the slower we go.

redpill's picture

Time is the fire in which we burn

spekulatn's picture

"Shut the f*** up Donny"

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.

YesWeKahn's picture

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

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.

The Real Fake Economy's picture

truer words have never been spoken on zerohedge

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.....

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).

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.   

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!

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

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....    

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.

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...

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....



Darth Sidious's picture

remind me not to send my kids to rutgers

chet's picture

Man, that guy sounds like a sociopath.

MolotovCockhead's picture

He who dies with the most debt, wins!

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.

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


Rover's picture

I think i finally ran out of tears...

Brutal article.

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.

Tao 4 the Show's picture


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

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.

Hooligan's picture

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

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.

B-rock's picture

Hey, European on my shoe.

YesWeKahn's picture

you wanna a logical trade?

Energy stocks rally on weaker oil price.

Irish66's picture

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

drivenZ's picture

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

YesWeKahn's picture

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

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.

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..."

YesWeKahn's picture

Market is pausing to read these pages right now.

hedgeless_horseman's picture

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

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.

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."

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.

caerus's picture

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

Jena's picture

No, it just means they're Italian.

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

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