The Complete And Annotated Guide To The European Bank Run (Or The Final Phase Of Goldman's World Domination Plan)

Tyler Durden's picture

"Nervous investors around the globe are accelerating their exit from the debt of European governments and banks, increasing the risk of a credit squeeze that could set off a downward spiral. Financial institutions are dumping their vast holdings of European government debt and spurning new bond issues by countries like Spain and Italy. And many have decided not to renew short-term loans to European banks, which are needed to finance day-to-day operations. " So begins an article not in some hyperventilating fringe blog, but a cover article in the venerable New York Times titled "Europe Fears a Credit Squeeze as Investors Sell Bond Holdings." Said otherwise, Europe's continental bank run in which virtually, but not quite, all banks are dumping any peripheral exposure with reckless abandon is now on. Granted, considering the epic collapse in bond prices of Italian, French, Austrian, Hungarian, Spanish and Belgian bonds which all hit record wide yields and spreads in the past week, and furthermore following last week's "Sold To You": European Banks Quietly Dumping €300 Billion In Italian Debt" which predicted precisely this outcome, the news is not much of a surprise. However, learning that everyone (with two exceptions) has given up on Europe's financial system should send a shudder through the back of everyone who still is capable of independent thought - because said otherwise, the world's largest economic block is becoming unglued, and its entire financial system is on the edge of a complete meltdown. And just to make sure that various fringe bloggers who warned this would happen over a year ago no longer lead to the hyperventilation of the venerable NYT, below, with the help of Goldman's Jernej Omahan, we bring to our readers the complete annotated and abbreviated beginner's guide to the pan-European bank run.

But first some more details from the NYT:

The flight from European sovereign debt and banks has spanned the globe. European institutions like the Royal Bank of Scotland and pension funds in the Netherlands have been heavy sellers in recent days. And earlier this month, Kokusai Asset Management in Japan unloaded nearly $1 billion in Italian debt.


At the same time, American institutions are pulling back on loans to even the sturdiest banks in Europe. When a $300 million certificate of deposit held by Vanguard’s $114 billion Prime Money Market Fund from Rabobank in the Netherlands came due on Nov. 9, Vanguard decided to let the loan expire and move the money out of Europe. Rabobank enjoys a AAA-credit rating and is considered one of the strongest banks in the world.


American money market funds, long a key supplier of dollars to European banks through short-term loans, have also become nervous. Fund managers have cut their holdings of notes issued by euro zone banks by $261 billion from around its peak in May, a 54 percent drop, according to JPMorgan Chase research.

Is this setting familiar to anyone? It should be: "Experts say the cycle of anxiety, forced selling and surging borrowing costs is reminiscent of the months before the collapse of Lehman Brothers in 2008, when worries about subprime mortgages in the United States metastasized into a global market crisis." 

Ah, but there is one major difference: last time around, the banks were not all in on the wrong side of the world's worst poker hand (as described by Kyle Bass earlier). Now they are. And should Europe's banks begin a domino-like spiral of collapse, there will be nobody to bail out first Europe, then Japan, then China, then the US and finally the world.

But lest someone suggest this is merely the deranged ramblings of yet another blogger, here is Goldman Sachs with a far more cool, calm and collected explanation for why we should all panic (which comes at the sublime moment: just as Goldman takes over all the key political locus points of the European continent: more on that in the conclusion...)

Core’ banks cut GIIPS debt by €42 bn (-31%) in 3Q; a manifestation of PSI side-effects? 


In 3Q2011, banks from the ‘core’ cut their net GIIPS sovereign debt holdings by €42 bn (or by one-third), mostly Italian (€26 bn), Spanish (€7 bn) and Greek (markdown of €7 bn). French and Benelux banks cut their exposures most, by €21 bn and €9 bn, respectively. GIIPS portfolios remained unchanged with periphery banks.


Greek PSI sets a risky precedent, in our view, as the prospect of ‘voluntary’ haircuts becoming a template for GIIPS crisis resolution could drive exposure reduction. Core banks now have €88 bn of GIIPS sovereign bonds remaining. We expect this to decline. Problematically, we observe that GIIPS bond reductions are not resulting in ‘core’ bond purchases but in a rise in deposits at the ECB.

  • The disposal of GIIPS sovereign debt accelerated during 3Q2011, and we highlight the following.
  • Banks cut net GIIPS sovereign exposure by €43 bn. The largest reductions relate to Italian (€26 bn), Spanish (€7 bn) and Greek (€7 bn) net sovereign debt positions.
  • Almost all of the reduction (€42 bn) came from banks in the European ‘core’, where the GIIPS bond positions therefore fell by just over one-third (31%). At the same time the banks from the ‘periphery’ kept their exposures unchanged.
  • French (€21 bn) and Benelux (€9 bn) banks reduced their exposure most.
  • Individually BNP (€12 bn), KBC (€4.4 bn), SG (€4.1 bn), BARC (€3.5 bn) and ING (€3.5 bn) cut the net sovereign exposures most, in absolute terms.


We expect this trend to extend into 4Q and to ultimately lead to a long-term reduction GIIPS bond holdings by core banks.


Greek PSI – and the ‘voluntary’ 50% haircut – has changed the risk perception of GIIPS bonds. We believe it has allowed for an assumption that PSI will be used as a template in helping other GIIPS sovereigns improve their public finances. Such intention is denied by policy makers. Banks, on the other hand, express their view of the likelihood of such an event through the changes in their net positions.


It is important to emphasizes that a bank’s decision to hold sovereign debt is not an expression of an investment preference. Rather, it is a decision related to liquidity management. As such banks seek ‘risk free’ assets that can be used to access liquidity at any time, particularly at the time of crisis. Regulators continue to treat sovereign debt as highest-quality and risk free (0% risk-weight) collateral. With no RWA constraint and full refinancing eligibility, banks are encouraged to hold sovereign debt; its (selective) transition from a ‘risk free’ to a ‘risk’ asset is therefore unexpected and highly damaging.

Earlier we said all but two entities have been dumping PIIGS (or GIIPS as Goldman prefers to call them). Sure enough, one of the unlucky two tasked with buying everything sold in the secondary market is of course the ECB: the same bank that everyone is accusing of not doing more to help.

Funding: Increasingly reliant on the ECB


The use of ECB facilities rose again in October, driven by Spanish (€7 bn) and Italian (€6 bn) banks. For 4Q, we expect a sharp increase in use by Italian banks, driven by: (1) LCH’s increased margin requirements on Italian REPOs, which now make market REPOs comparatively more expensive than those at the ECB; and (2) a steady fading of the ECB funding ‘stigma’. It is possible that the majority of the €300 bn of interbank funding and market REPOs could end up on ECB’s balance sheet. That alone would have the capacity to lift current ECB use from €579 bn to just below €900 bn. This level of use would compare with previous crisis peak levels (2009) of €870-897 bn.


We have long argued that the ECB has capacity to back-stop bank funding requirements – and there is no change to this view. That said, a gradual closing of the last functioning wholesale funding market – short-term REPOs, backed by government bonds – is certainly not an encouraging sign. The re-opening of the long-term funding markets has been pushed further out, in our view.


LCH triggers increased margin requirements on Italian REPOs


On November 9, 2011, LCH.Clearnet (LCH) announced its decision to increase ‘deposit factors’ applied to Italian debt repo transactions (e.g. haircut on collateral) by 3.5% to 5% depending on the duration of the collateral. The move was not a surprise as LCH’s Risk Management Framework states that it “would generally consider a spread of 450bp over the 10-year AAA benchmark to be indicative of additional sovereign risk”, which may cause it to “materially increase the margin required for positions in that issuer”. Previously, ECB interventions kept the spreads below the key trigger level of 450bp.


Italian banks likely to switch to the ECB


Owing to increased margin requirement, market REPOs have become more expensive. In our view, the banks are therefore likely to look for alternative sources of funding, especially with the ECB.


Typically, the cost a bank faces to fund a sovereign bond portfolio through a tri-party repo transaction consists of: (i) the funding rate (‘repo rate’) for the duration of the repo and applied to the market value of the bonds; and (ii) additional funding costs, mostly in the form of the haircut/margin required by the Central Clearing House as collateral. The higher the haircut/margin level and the marginal funding cost, the higher the cost of the borrowing, which becomes ineffective when it exceeds the cost of the ECB repo facility (1.5% repo rate + haircut funding cost).


The Italian banks’ funding currently includes €155 bn of customer repos and €193 bn of interbank funding exposure to non resident MFIs. The large portion of the latter takes the form of secured funding (repos). In addition, the Italian banks currently draw on €111 bn of ECB funding.


It is possible that the majority of the €300 bn of interbank funding and market REPOs could end up on the ECB’s balance sheet. That alone would have the capacity to lift current ECB use from €579 bn to just below €900 bn. This level of use would compare with previous crisis peak levels (2009) of €870-897 bn.

So just why again is it that anyone accuses the ECB of doing nothing? When all is said and done under the current regime, the ECB balance sheet will be just under €2 trillion, and that is without any incremental printing, courtesy of the farce that is "sterilization" with banks which exist only due to the ECB, thereby making said sterilization about the most idiotic thing ever conceived. Yet that is what spin is for...

In the meantime, the European shadow banking system is on the verge of a complete shutdown, with repos of all shapes and sizes about go dark.

And summarizing all of the above visually, here come the charts:

And while we already discussed that one half of Europe's dumb money is the ECB by necessity, to get the answer for who is the other half we go back to our post from last Friday:

Completing the picture is the answer of who the dumb money is:

Italian bonds still have one support bloc. Domestic banks appear to be holding on to their much larger holdings. As of last December, EBA stress tests showed Intesa Sanpaolo held €60bn of Italian debt. UniCredit and Banca Monte dei Paschi di Siena held €49bn and €32bn respectively. Recent results indicate that those holdings have changed little.


“We will keep investing the largest part of our liquidity in Italian government bonds,” said Corrado Passera, chief executive officer at Intesa Sanpaolo, in a call with analysts this week. “We believe they provide the right yields vis-à-vis the cost. So no policy change on our side.”


Still, according to the investment banker advising firms on their Italian holdings, the domestic banks’ decisions to hold on could have more to do with their inability to offload such large amounts quickly and without deep losses. Indeed, some Italian bankers seem resigned to the situation.


Capital concerns are also preventing them from selling. “The key issue is on solvency and I think they made a mistake in requiring us to hold more capital,” said the chief executive of a mid-sized Italian bank. “To meet these levels we cannot sell too much of our sovereign debt.”

So instead of selling, Italian banks are doing all they can to dodecatuple down!?

To summarize: everyone is dumping European paper, except for the ECB and Italian banks, which have no choice and instead have to double down and buy more. In the meantime, the market is going increasingly bidless as liquidity evaporates, confidence has disappeared and virtually everyone now expects a repeat of Lehman brothers. Of course, this means that when the bottom finally out from the market, the implosion of the Italian banking system, and thus economy, will be instantaneous. And when Italy goes, so goes its $2 trillion+ in sovereign debt, and at that point we will see just how effectively hedged and offloaded the rest of the world is, as contagion shifts from Italy and slowly but surely engulfs the entire world.

Incidentally, is it really that surprising that Goldman is now doing its best to precipitate a bank run of Europe's major financial institutions by "suddenly" exposing the truth that was there all along? During the great financial crisis of 2008, the one biggest winner from the collapse of Bear and Lehman was none other than the squid. This time around, Goldman has set its sights on Europe and has already made sure that its tentacles will be in firmly in control at all the right places when the collapse comes, as the Independent shows.

And when banks are falling over like houses of cards in the middle of a tornado cluster, and the financial power vacuum is in desperate need to be filled, who will step in once again but... Goldman Sachs.

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Hulk's picture

The Market is speaking as the ISDA gave it voice...

knukles's picture

New-fucking-York Terr-ist-times!
How dare they begin a run on the European Banking System and Sovriegn Debt Markets? 
Do They Not Know Their Place in the Structure of Tomorrow?
Of the New World? 
Are they Not Responsible (nice double entendre, Knukles!) for Providing IFactual Information and News as Enshrined in Their Very Own By Line...
"All the News That Fits?"
Who Do They Think They Are? 
Superior All Knowledgable Intelligencia With Supra-Nromal Insights as the the Very Condition of All Mankind, Not Just The Profligate Insensitive Upper Crust Banking Local Few?
Bring on The Krugmans, The Dowds, The Freidmans. 
Have Them the All Knowledgable Who Until Now Have Poo-pooed, SHunned and Dismissed these Faults, Come Hither, Straghten Out, Defease, Eradicate This Curse Upon Humanity.
This Sin of False Perception!
There Is No Problem That    That   uh   That The Powers   That  uh got us here..    might             not       
  can not

yes we can

uh    hmmm



Where's Krugman When We Need Him?

WonderDawg's picture

Nobody could have seen this coming.

Not For Reuse's picture

I stand by my advice to be solid with the 1%, if at all possible.

99% of the 99% do not give a flying fuck about any notion of "constitutional justice."

I repeat, NO one gives a flying fuck.

All anyone really wants to do is "get money," fly back to their hometown, butterfly out of an airport limo, and pop off a load in that fat slut with 3 kids who turned them down for their senior prom.

Any talk of change or revolution is purely academic at this point

Michael's picture

The only solution now is;

"The Universal Bankruptcy Act Of 2012."

A golden jubilee for a new golden age. All non-secured debt will be discharged and all sovereign debt will be defaulted on and discharged in one fell swoop. 


Manthong's picture

GIIPS might be a more appropriate way to spell the acronym if pronounced like "gyp".

XitSam's picture

How did PIIGS get turned into GIIPS that I've been seeing the last couple days? Did the europeans just figure out what PIG means?

Oh, and "venerable" New York Times?!

Oh regional Indian's picture

As of last December, EBA stress tests showed Intesa Sanpaolo held €60bn of Italian debt

At least now we know why the Inesta guy is in the gobbermint. Protection racket.

I think it is in the order of things. Greece/Ireland/Italy/Poro/Spain.

It looks like they are saving the rain from spain for the end. i have a feeling the swing of the pendulum of sovereign crises is going to start swinging wildly and unpredictably now. 

Because the truth is that everyone is naked. 



AldousHuxley's picture

Final Phase of Goldman's World Domination Plan


World must be pretty stupid to be dominated by a bankrupted institution with same credit rating as McDonald's and run by Master BullShitting Assholes who can't operate a mathematically-guranteed-profit casino without a bailout from Uncle Buffett and Uncle Sam who call themselves Goldman Sachs while having no traceable amount of gold.

Chris Jusset's picture

Aw crap!  This is worse than the Lehman meltdown.

macholatte's picture



“The euro is burning, the EU is falling apart and yet here they are: highly-paid, highly-pensioned officials worrying about the obvious qualities of water and trying to deny us the right to say what is patently true.

“If ever there were an episode which demonstrates the folly of the great European project then this is it.”

EU bans claim that water can prevent dehydration

Aengrod's picture

Epic! .... stupidity. Seriously let someone bomb Brussel and Strasbourg that would be filled with those Euro-fascist, but spare Farage.

Harlequin001's picture

Obviously the only way Goldman can survive this is is someone bails out their defaulted hedges just like AIG, but this time MUCH, MUCH BIGGER...

TruthInSunshine's picture

The New York Times version of events makes Goldman seem so benign that it's literally sickening - Andrew Ross-Sorkin has his grimey little finger/claw print all over this New York Slimes expose.

It's very quite simple as to how this will play out (and why).

Either you do or don't believe some or all of the following:

1)   The European Union is inevitably destined for failure (and the odds, for reasons to be reference below, of a fast & furious implosion have grown exponentionally higher over the last 6 months) as it's simply not possibly to have a central bank (the ECB) usurp the ability of the very disparate political, social and economic allegedly sovereign nations of what is now the EU to print their own money, given the radically divergent political social and economic stability/instability the peoples of these nations find themselves facing (e.g. Greeks vs Germans; e.g. Belgians vs. Italians), and given that those nations (few as they may be) that are solvent don't want to face the consequences to their own health of what would be bailing out the many nations that are not solvent (by many, I mean the predominant majority, and not insolvent by any small % of their annual GDP, either, with demographic ticking time-bombs on their balance sheets in the form of entitlements, also).

2)   If there is any chance to hold the EU together, whether for another couple of years or maybe 5 or 6 years (before the reality of math slaps the unicorns & rainbows delusion of a common European Union in the face again like a bucket of Icelandic Sea Water poured on the face of Spaniard sleeping in a hammock in Santander on a warm and sunny day), it means that the solvent few must give their consent (via the body politik, who definitely rarely have the best interests of their consituents in mind, but will only do what is best if they feel sufficient rage and the very real theat of untoward consequences for selling out) to the ECB to go ahead and fire up the CERN-esque Printing Press at the ECB.

3)    Such consent to print Euros at faster than the speed of light pace will toss all of Europe into an inflationary environment that will make any time since post WWI or circa-WWII look positively tame, and in fact, the inflation resulting from what would have to be a massive devaluation in the Euro, which is not a reserve currency (despite claims of such de facto status or 'waiting in the wings' status to the contrary), will far exceed anything that respective European Nations that form the EU saw back in the late 1970s, prior to turning the legal process of the hows and whys and how much and other such question pertaining to the printing of their own currency over to the ECB. It would not be hyperbole to claim that real average per annum inflation of 10% to 20% a year for a lengthy period of 5 to 10 years could be not only possible, but likely (that would result in a 50% to 200% increase in the cost of living over a 5 to 10 year period, for Europeans, depending on how long the ECB monetization had to endure, for those of you keeping score at home, and that assumes that the process will yield the desired results, and put things back together again - a big assumption). Again, even with this monetization, loose ECB policy and absolute policy goal (stated or not) of inflating away EU Zone debts enacted, it has the possibility of not only not resolving the disease that is causing the EU crisis, but of exacerbating it (especially given that solvent members of the EU will be dragged down and drowned, inevitably, with their far more numerous, non-solvent EU brethren, which carries with it a special set of political and social risks as the process gets to the flailing-clutching-gasping for air stage).

4)   If the solvent members, mainly Germany, declare nein!, then the winding up of the European Union turns into an outright implosion, Icelandic style, but on an obviously monentous scale, with debts purged and investment losses accelerating into a process that clears the pipeline in maybe  a year or two, but giving the ability of the former EU members (and what could be a new set of non-core former EU members) to get back to a lifestyle consistent with their means, and taking their own monetary and economic policy back from the EU, with no one imposing austerity upon them, with the corresponding element that they need to have the cash to do what they want to do before they decide to do it (e.g. maybe not so generous pensions, transfer payments and huge public sector employment, etc. etc.?). Conversely, the solvent members, whether still forming a core-EU alliance, or parting ways completely, are not threatened with a perverse sinking of their living standards, as they no longer have to subsidize the former hopelessly and helplessly insolvent member states.

5)   If the implosion caused by a decision to not authorize the ECB to devalue the EUR is taken, then the brunt of the losses spurned by the non-repayment of debts falls far more on the shoulders of investors (whether individual or institutional buyers of equities or bonds [sovereign and otherwise], and CDS/CDO), rather than the taxpayer hammering that would result from trying to keep the EU intact.

6)   There can be no question that this train wreck could have been seen, and was in fact seen coming, for years now, and that there have been the sleaziest type of manuevering (see rest of this section as to the why of the 'sleazy') by the likes of the Goldman Sachs & JPM and their filthy ilk, to seize upon this latest crisis, who have now ramped up efforts to do everything they can to accelerate the crisis, and who are assuredly betting on positions that will reward them many, many times over, while knowing full well that a) they literally have a voice in the governments of key EU Member States and the ECB itself through former (and even present) agents of their firms as to how to influence the decisions that will be made, and b) if things go wrong for them despite 'a', they will simply fall back on their "we're too big too fail because if we did, it would only assure and hasten a global economic collapse, and therefore give us our taxpayer backstop; here's the blank check Mr. President, Mr. Treasury Secretary & our very dear friends (and colleagues) at the ECB & Federal Reserve (and in select EU governments), so go give your scary speeches to the public now about 'martial law' and 'tanks in the streets' and we'll fill in the number on the check."


So, my friends and fellow takers of the red pill, we all can clearly see that Old Man Rothschild -  you know, the Great Red Shield House of Financial Empire - which just so coincidentally established its roots in Germany back in the 1600s, and then successfully gained control, through devious and brilliant chessmanship, of the global fiat supply (would you plebes like some inflation or some deflation to separate you from your homes, property, other inherent valuable and even your food?) - is back at the SSDD playbook, with all the right pieces (and lackeys) in place, whether political actors or banking and banker proxies - and is set to reap yet another Great & Bountiful HARVEST for the Money Masters.

It's a Big Club, and 99.9999% of us ain't in it, so remember that if you haven't taken the proper precations, quit playing a rigged game on their terms, as they beat you over the head with the Big Club (as they pepper spray your sister in the face, kick your family out of your house, take your farms, turn the riot police or military loose on the citiizens they always told you were there to protect you, fire live ammunition at you, or even design and implement plans to overthrow your government if you are just so unfortunate enough to be living in an alleged sovereign nation that has rich resources - or anything that can be leveraged to extract blood from you for that matter, such as being able to buy up the rainwater and aquifiers to charge you for the privilege of drinking the water - and especially so if your government has no fractional reserve central bank bearing the Red Shield Mark of Approval, ala Federal Reserve 'Bank' or Central 'Bank' of England style).

All you blue pill takers, disregard this, because it's - you know - the talk of conspiracy theorists and such.

For those with a strong enough CONSTITUTION to have already swallowed the red pill, or who think they can and would like to try, The  Money Masters, bitchez! 

The Money Masters
Dabale arroz a la zorra el abad's picture


My wealth is so minuscule I don't own anything with gold (well, this laptop surely has some micrograms), but I have some cash just in case there is an actual bank run. Though it is just a short term remedy for what would come next.

XitSam's picture

So buy a couple silver eagles, nearly as liquid as the ATM. Or some junk silver.

Ghordius's picture

"...Goldman seem so benign..."
Yeah, trust the benign Holy Squid

Randall Cabot's picture

Granddaddy Rothschild wasn't born until 1744 so I think you mean the 1700s.

TruthInSunshine's picture

February 23, 1744.

You're correct.

Time flies when the Rothschild Lampreys are having fun.


jaffa's picture

The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. Thanks.
cell phone directory

jaffa's picture

The European Central Bank is the institution of the European Union that administers the monetary policy of the seventeen EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam, and is headquartered in Frankfurt, Germany. The current President of the ECB is Mario Draghi, former governor of the Bank of Italy. Thanks.
trade show displays

BandGap's picture

The wobble will intesify as each variable in this alphabet soup makes it's contribution.  From failed mortgages in Hungary to banks in South America, the inevitable tipping will involve one and all. Even those seeking to stabilize the oscillations will only magnify the problem.  The ultimate push will come from human nature itself, as people realize how they have been played by Gold Man-sacks.


Ropingdown's picture

The New York Times is venerable, simply meaning that they were reporting way back in the day, 1930, when Goldman Sachs sunk a big chunk of investor money raised in 1928 not into new investments, but into an attempt to prop up stocks it already owned.  It didn't work.  They became insolvent, went into a reorganization, and came back to life.  All reported by the Gray Lady, meaning the one with bags under her eyes.

Prometheus418's picture

Maybe it should be GIPSIs- I hear they like it when you pay with silver.

flacon's picture

Dont-ch-know it's not polite to call someone or some nations "PIIGS" even if they are? We are to be respectful to all mankind and call them GIIPS. LOL!

aleph0's picture


How ?


savagegoose's picture

gotta be room for an M in there somewhere

CharlieSDT's picture

Malta? Montenegro?  Mexico's spreads are rising too but it's best if we find a Eurozone M.

Pitchman's picture



Fibonacci Numbers - The Fingerprint of God & God Within

How Two Banksters Led Europe To Ruin -- AND REVOLUTION 

Evaporation of Wealth on a Vast Scale: How $Millions - Trillions Can Disappear 

Graphic: Financial World Dominated By A Few Deep Pockets 


The Looting of America: Happy Labor Day

The Disappearance of Chivalry - George Santayana & Murder By Joystick

"There are no parasites as vile, insidious and cold as the Bankers. They are the original Satanist. Stop the bankers and you stop the wars, you stop the poverty, you stop the inequality. You stop every evil financed by them and they are considerable.... It's a wonderful irony that those who have spent a lifetime putting others into debt are now going to find themselves very very deeply in debt."

The Forces of the Last Gasp, on Meat Street. & Operation Blackout

Not For Reuse's picture

WTF kind of a solution is that??

If you truly want to start fellating the facetwitter crowd, you need to wait at least 15-20 yrs. Today's demographics would prefer that you take a long walk off a short bridge

kito's picture

no way!!! the piigs have new leaders!!! they have solved their problems!!! soon to be elected rajoy will restore confidence to the markets for spain. he says spain wants to stay in the eu. he promises austerity, lower taxes, jobs for everyone!!!! it will work, believe him!!!!! invest in spains bonds!!!!!

redpill's picture

I don't know how any rational person could have money in these institutions at this point

Not For Reuse's picture


The same logic underlying most marriages, most domestic violence cases, and most rages against the machine

redpill's picture

How about the inertia of bureaucrats so obtuse that they will deny that water prevents dehydration?

Not For Reuse's picture

The Euro is God.

Because it "floats" gold on its balance sheet.

Water will adapt to whatever metric FOA dictates.

I will personally convert water into wine because I am Jesus.

Suck my water, bitchez

flacon's picture

"EU bans claim that water can prevent dehydration"


Only a dehydrated "government body" can make such a claim. Hydration is only possible through central bank money printing. 

Not For Reuse's picture

you are not a unique & beautiful flacon de neige. Va te faire foutre.

Mille millions de mille de sabords de tonnerre de tonnerre de brest

Fuck off & die :)

CompassionateFascist's picture

So don't drink the stuff. Vampire squid needs the H2o to SwimIn.

koperniuk666's picture

the eu are right on this one.

its hypohydration not dehydration and is caused by a loss of homeostasis of hydration - essentially an EXCESS of water over electrolytes. The body, simplistically (for you) at this stage requires more electrolyte AND more water.  the addition (by terry fuckwit) of more water (further excess) from his PET bottle of African spring water will cause body electrolyte to migrate into the  new water. body will then eliminate the excess water immediately. 

its pointless , like so much of terry fuckwits life.

but he's the cretin who voted in the lunatics responsible for pissing away his savings, home value and pension.

what do i care if he gets a headache?

war next



BandGap's picture

The more water you drink the more it drains your body of salts. Please, use layman's terms.

Ropingdown's picture

Does it bug anyone else that this is the second time in 80 years that a new conservative Spanish leader has called for German assistance? 

Ahmeexnal's picture

Angela Merkel, generalissima por la gracia y mandato de dios??

augmister's picture

Tell that to the squid, MICHAEL ... here's hoping that you have a dynamic IP address as you are no long safe.

ZeroPoint's picture

So I should max out my credit cards now buying gold & silver?

ToNYC's picture

Michael, your wish for debt forgiveness will be granted as soon as they finish getting paid selling you the debt that You will Jubilee on yourself.


El Viejo's picture

I predict the same solution as the one proposed by a Caesar many years ago: A 50-50 split between creditors and debtors. (Just before the creditors murdered him).

The split will be instituted through printing and specific bailouts to the masses through tax cuts. Stagflation baby!