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Complete Eurocrisis Summary

Tyler Durden's picture


Confused by the latest developments, headlines, stories, counterstories, denials, counterdenials and rumors, but mostly prayers out of Europe? Here is your one stop shop of everything that has transpired in the Eurocrisis most recently.

Mostly via Citi:

  • According to Bloomberg, Merkel hardened her opposition to joint debt sharing in the euro region as President Barack Obama singled out Europe’s leaders for not doing enough to arrest the financial crisis: “under no circumstances” would she agree to Germany-backed euro bonds. Some “come along and ask for euro bonds, saying all we need are equal interest rates and everything will turn out all right,” Merkel said in a speech to members of her Christian Democratic Union in Berlin yesterday. Instead, what’s needed is an economic overhaul to tackle the lack of competitiveness in Europe, she said.
  • Dow Jones reports Spanish PM Mariano Rajoy saying that solutions for the Eurozone crisis will start to be found soon. “Spain is a factor in this situation, but one of many... I have good reasons to say that these problems of the monetary union are going to start to be solved in not very much time,” he said in a televised speech.
  • Perhaps Rajoy’s confidence is the result of a report in German newspaper Die Welt picked up by Dow Jones that, “the chiefs of four European institutions are in the process of creating a master plan for the Eurozone, the daily Die Welt reports Saturday, in an advance release of an article to be published Sunday.” It adds: “Suggestions targeting a fiscal, banking, and political union, as well as structural reforms, are being worked out by EU Council President Herman van Rompuy, EU Commission chief Jose Manuel Barroso, Eurogroup Chairman Jean-Claude Juncker and European Central Bank President Mario Draghi, according to the article.”
  • Reuters is among the news services reporting that the "Big Four" accounting firms KPMG, PwC, Deloitte and Ernst & Young will carry a full, individual audit of Spanish banks. First results are expected around mid-June.
  • Spain announced it will auction some 2- 4- and 10y Bonds on June 7. The FT describes the move as ‘defiant’.
  • The FT reports that Syriza aims to renegotiate the Greek bailout should it be in a position to form a government on June 17. “The left-wing party that came a surprising second in last month’s Greek elections has pledged to halt interest payments due on the country’s debt and revoke the terms of its bailout agreement if it comes to power in a re-run vote on June 17. Alexis Tsipras, leader of the far-left Syriza party, said he would also cancel EUR11bn of cuts due to be implemented this month, reverse promised labor reforms and raise taxes on the wealthy.” The article is here.
  • German tabloid Bild says in an editorial that Greece is fast reaching the end game. “Greeks are plundering their bank accounts, imports to the country are no longer guaranteed, rumors abound of drachma being printed and energy suppliers are no longer paid, Nikolaus Blome, Bild’s chief political columnist, said in an editorial in Saturday’s edition,” is how Bloomberg reports it.
  • The UK’s Telegraph has been a critic of the EUR since before its inception and it now smells blood. “Spain is in 'total emergency’, the EU in total denial,” is the title of an article published this weekend. “I’ve never actually heard the term ‘total emergency’ before, at least not in the context of global economics. It sounds like the title of a disaster movie. When it is uttered in sober tones by the elder statesman of an advanced democracy to describe his country’s financial condition, the effect is rather startling,” the piece begins. It says if Spain did leave the EUR, there would be nothing left for any other country to exit. The article is here.
  • Speculation of an ECB rate cut is starting to build. “The European Central Bank may cut interest rates again soon as the Eurozone debt crisis deepens, but it will continue to insist that it is up to governments to find a lasting solution, analysts say,” reports AFP. It adds though: “ECB watchers predict the central bank -- which will hold its regular policy-setting meeting next week on Wednesday instead of Thursday owing to a public holiday -- will not alter borrowing costs just yet this month. But it could act in July as deepening fears about Greece and possible contagion to other countries push the 17 countries that share the euro back into recession, the analysts predicted.”
  • France: French yield levels have gone mental, at some stage the 10y yield rallied by 22bps. And it   looked like around 100bps stops got triggered. As we write the colour the   spread is back up to 105bps vs. Germany. Apart from the wage cut action for himself and for the CEO’s for state owned companies (a bike ride away from communism,) I could not notice any substantial reform so far for France. Most likely we will not see any until the June election is out of its way. Surely France needs to do its homework, and if Mr. Hollande does not want to listen to the markets, at least he should go through the European Commission report, where France is asked to address risky imbalances in its economy.
  • Italy:   Berlusconi   comments that Italy should say “Ciao, EURO” even if it was a   “crazy idea”. How colourful… either way some positive, yes   we mean positive development. The GC short dates have re-traced from its   40bps lvls to now average 37bps in T/N, ending the day 36-35 on a good 5bn   volume. One week term traded at 35bps and 1-3M quoted around 38-33bps.   Specials space we are not seeing exceptionally expensive bonds. The most in   demand is the March 22s, trading close to 1bn in volume on S/N day to day and   followed closely by Aug 23s, both averaging around 8bps. Sept 22s that use to   hold value is now a jump GC since the tap, but if you are to look for term   trades especially for futures trade then you won’t get much liquidity.   
  • Last but not least, the usual dose of fire and brimstone from Ambrose Evans-Pritchard

And that, as they say, is that. At least for the next 2-3 hours when everything changes diametrically.


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Sun, 06/03/2012 - 16:49 | 2489795 CrashisOptimistic
CrashisOptimistic's picture

Timely addition, Bloomberg's lead story this hour:


With Europe’s debt crisis cited last week for canceled IPOs, weaker-than-expected Chinese manufacturing figures and a rise in the U.S. jobless rate, Merkel rejected joint debt issuance in the 17-nation euro area as a solution, saying “under no circumstances” would she agree to Germany-backed euro bonds.


Pretty firm, and let's also call this 


Sun, 06/03/2012 - 17:03 | 2489862 Antifaschistische
Antifaschistische's picture

"Obama urges end to crisis"

Nothing is more prophetic than those words....tick, tick, tick.

Sun, 06/03/2012 - 17:07 | 2489882 CrashisOptimistic
CrashisOptimistic's picture

Somewhat less signif than the text in bold.

Sun, 06/03/2012 - 17:17 | 2489895 Soul Train
Soul Train's picture

BARRYMETRIC FORECAST FOR NEXT WEEK AND THE WEEK AFTER, June 4-17: "Change you can believe in - ES meltdown".

Sun, 06/03/2012 - 17:29 | 2489930 The Big Ching-aso
The Big Ching-aso's picture



A crisis of confidence in confidence makers appearing confident 2 the masses that currencies deserve their confidence.

Sun, 06/03/2012 - 17:42 | 2489962 Matt
Matt's picture

Somebody DO SOMETHING! Fix it! I have an election coming up! - attributed to Obama

Sun, 06/03/2012 - 23:56 | 2490770 StychoKiller
StychoKiller's picture

When things things don't go to plan, management and government can be remarkably persistent.

This is otherwise known as - The Corporate Approach to Dead Horses .....

The tribal wisdom of the Dakota Indians, passed on from one generation to the next, says that when you discover that you are riding a dead horse, the best strategy is to dismount.  But in modern business (education and government), because heavy investment factors are taken into consideration, other strategies are often tried with dead horses, including the following:

1. Buying a stronger whip.

2. Changing riders.

3. Threatening the horse with termination.

4. Appointing a committee to study the horse.

5. Arranging to visit other sites to see how they ride dead horses.

6. Lowering the standards so that dead horses can be included.

7. Reclassifying the dead horse as "living-impaired".

8. Hiring outside contractors to ride the dead horse.

9. Harnessing several dead horses together to increase speed.

10. Providing additional funding and/or training to increase the dead horse's performance.

11. Doing a productivity study to see if lighter riders would improve the dead horse's performance.

12. Declaring that the dead horse carries lower overhead and therefore contributes more to the bottom line than some other horses.

13. Rewriting the expected performance requirements for all horses.

14. Promoting the dead horse to a supervisory position.


Can it be any clearer??

Mon, 06/04/2012 - 03:04 | 2490931 John_Coltrane
John_Coltrane's picture

My favorite comment of the day.  Thanks styco for your summary of central "planning".

Sun, 06/03/2012 - 20:00 | 2490262 12ToothAssassin
12ToothAssassin's picture

Reminds me of 


"I believe in an America where millions of Americans believe in an America thats the America millions of Americans believe in. That's the America I love"

- Willard 'Mitt' Romney

Sun, 06/03/2012 - 17:44 | 2489967 TheFourthStooge-ing
TheFourthStooge-ing's picture

Antifaschistische said:

"Obama urges end to crisis"

Wait a minute. Do you mean for the last two years, through all of the emergency meetings, special committees, pantomime recapitalizations, Europocalypse charades, and bank bailouts passing momentarily through the conduit of Greece, that they've always had the option of just ending the crisis?



Sun, 06/03/2012 - 18:37 | 2490087 knukles
knukles's picture

Well, not really.
'Till now, Yomomma hadn't addressed the issue.  So now that....


Talk about eating your own, check out Maureen Dowd's latest NYT piece.

Sun, 06/03/2012 - 18:52 | 2490118 GOSPLAN HERO
GOSPLAN HERO's picture

The debt crisis will end Obama's chances for reelection.

Obama is scared, real scared.




Mon, 06/04/2012 - 03:10 | 2490937 John_Coltrane
John_Coltrane's picture

Well, along with "hit with an ugly stick" Pelosi and Reid, no ones has helped to create more new debt than the Teleprompter in Chief.  As you sow so shall you reap.

Can't wait for his anguished cries  as the Supreme court throws out the individual mandate and thus Obamacare in a couple of weeks.

Sun, 06/03/2012 - 18:52 | 2490119 Winston Churchill
Winston Churchill's picture

Crisis urges end to Obummer.

Sun, 06/03/2012 - 18:34 | 2490047 Michael
Michael's picture

I know this Murderer Obama discussion is from Huffington Post and MSNBC, but I deem it a worthwhile discussion to view.

Jeremy Scahill Says Obama Strikes In Yemen Constitute 'Murder' 

Terrorism is a tactic. There is no way in hell or on God's green Earth to win a war against a "Tactic".

Sun, 06/03/2012 - 22:49 | 2490653 long-shorty
long-shorty's picture

Thanks for the link. This is a war crime. Except, of course, the winner never gets charged with war crimes.

It's sad how many people can't see a basic truth when it pertains to their own group or gang or country. Unfortunately, Bush was, and Romney will be, if given the chance, every bit as barbaric as Obama in this regard. As I wrote to our partners recently:

"I look at Obama and Romney and I see one man (a Constitutional Law professor at a pretty good school) who signed into law the executive branch’s right to detain American citizens on American soil indefinitely without due process, in stark violation of several provisions of our Constitution, and another man who more adamantly supports the same provision and is likely to appoint Supreme Court justices who do as well. This election is between two men incapable of upholding the oath of office they take on day one."

Sun, 06/03/2012 - 16:42 | 2489797 Stackers
Stackers's picture

Just watch out for the Lizards in the bar.

Sun, 06/03/2012 - 16:57 | 2489844 Conrad Murray
Conrad Murray's picture

Better wear some golf shoes.

Sun, 06/03/2012 - 17:47 | 2489975 farmjohnny
farmjohnny's picture

Damn blood soaked carpet.

Sun, 06/03/2012 - 18:09 | 2490026 NuckingFuts
NuckingFuts's picture

Fear and loathing in th eurozone. To bad HST is no longer with us, he would be there with a satchel full of "goodies" writing about it.

Sun, 06/03/2012 - 18:24 | 2490055 Zero Govt
Zero Govt's picture

there is a very old saying that if a fat lady sits on your head the priority is not to understand the motivations of 'why' she got there but 'how' to get her off your face before you suffocate

(ok it's not an old saying, just cooked it up)

with the Eurozone sovereign and banking debt crisis/problem the priority for the yawning masses is therefore how to get these bankrupt fat cats off our faces before they suffocate to death what's left of the real economy not already ruined by 80 years of socialism

Sun, 06/03/2012 - 16:42 | 2489798 X.inf.capt
X.inf.capt's picture

june 17th...

its on...


Sun, 06/03/2012 - 16:53 | 2489836 Sudden Debt
Sudden Debt's picture

That's a sunday.... Doesn't work for me because I've got a BBQ planned than...

Sun, 06/03/2012 - 17:05 | 2489872 X.inf.capt
X.inf.capt's picture

sorry about the bbq...

but theres an election in greece,....and egypt...and in both countries THEY ARE SERIOUSLY PISSED...

i dont think this story will end with...'and they lived happily ever after'....

Sun, 06/03/2012 - 17:27 | 2489927 IAmNotMark
IAmNotMark's picture

Sure it will!  It's just there's a lot of story between 'They are seriously pissed...' and 'they lived happily ever after'.

My question:  Is the movie going to be a comedy, a tradegy, a horror, or a war flick?  I'm thinking a RomComZomDram...with a throw-up inducing intermission by Obama.

Sun, 06/03/2012 - 17:43 | 2489964 X.inf.capt
X.inf.capt's picture



Sun, 06/03/2012 - 18:14 | 2490038 Winston Churchill
Winston Churchill's picture

Remake of Love Story.Leads played by zombies.

Whole new meaning to eating pussy.

Sun, 06/03/2012 - 22:51 | 2490658 Bastiat
Bastiat's picture

I don't remember that scene in Love Story -- must have been the director's cut.

Sun, 06/03/2012 - 17:06 | 2489873 I am Jobe
I am Jobe's picture

then Sunday Night TV and must watch TV program . Yeah the Amerikan Way.

Sun, 06/03/2012 - 16:43 | 2489800 macholatte
macholatte's picture

Was that an American Flag soaked in Hopium?

Sun, 06/03/2012 - 17:03 | 2489859 I am Jobe
I am Jobe's picture

American flag made in China.

Sun, 06/03/2012 - 16:46 | 2489811 Spitzer
Spitzer's picture

Hey why don't they just print money like the US does ?

Then there wouldn't be any problems at all.

Sun, 06/03/2012 - 16:48 | 2489822 CommunityStandard
CommunityStandard's picture

Germans afraid of another Weimar.

Sun, 06/03/2012 - 16:56 | 2489841 Dismal Scientist
Dismal Scientist's picture

Mistakenly afraid. Little chance of inflation for a while with declining velocity of money. Its coming eventually of course, but not for a few years.

Sun, 06/03/2012 - 17:48 | 2489874 LawsofPhysics
LawsofPhysics's picture

Riiiigghht, because the velocity of money always has to increase in order for hyperinflation to occur.  FAIL.


I see that we have some folks who don't understand basic eCONomics.  "Money" is chasing lots of things (real assets, a decent return, essential consumables, etc.)

There are two sides to the equation morons.   Even when the "velocity" of money is low, some things can get very expensive very quick.  Eespecially if an item (such as food, water, or fuel) is in short supply.   Morons, complete morons., the U.S.S.A. deserves the "leaders" it has and the people deserve what is coming.

Sun, 06/03/2012 - 19:46 | 2490227 Dismal Scientist
Dismal Scientist's picture

I said inflation, not hyperinflation. Thats a collapse of confidence in a currency, and is something entirely different.

I'd be prepared to think we have biflation now, ie: some inflation and some deflation simultaneously. But we are nowhere near the environment you think, as the demand side of the equation is slowing. Seen the price of oil lately ?

As for what the people deserve in the USA, wouldn't presume to comment. But then am not a total muppet like you...

Sun, 06/03/2012 - 17:40 | 2489957 CommunityStandard
CommunityStandard's picture

You are correct.  Neither LTRO nor QE entered the economy.  The money printing is disappearing into banks' fudged balance sheets.

Sun, 06/03/2012 - 17:50 | 2489983 LawsofPhysics
LawsofPhysics's picture

Capital (and resource) mal-investment and mis-allocation.  It is called a "liquidity trap" and it always leads to a deflationary crash followed by hyperinflation and war.  Wake the fuck up.

Sun, 06/03/2012 - 17:55 | 2489993 CommunityStandard
CommunityStandard's picture

Yes.  Short timeline = deflation.  Long timeline = inflation.  What were we arguing about again?

Sun, 06/03/2012 - 17:57 | 2489999 LawsofPhysics
LawsofPhysics's picture

If by "longtimeline" you mean less than five years, then you are correct.  Shorttimeline is now less than 18 months.

Sun, 06/03/2012 - 19:50 | 2490242 Dismal Scientist
Dismal Scientist's picture

CS, the guy's read a bit of history and is seemingly obsessed with hyperinflation. Leave him to his infantile wish for very bad outcomes.

Sun, 06/03/2012 - 17:20 | 2489909 5880
5880's picture

If you're in debt you want to print

If you have money printing just dillutes your wealth

Germany has money

Sun, 06/03/2012 - 18:36 | 2490076 scatterbrains
scatterbrains's picture

Cant we hit the Germans with economic sanctions for not playing nice?  When do those threats kick off ? I can picture the liberal editorial cartoons already. Merkel alone in a lifeboat filled with gold bags, slapping and swiping away with her paddle at the rest of the drowning Euro country characters gasping for a life line.  Evil Germans

Sun, 06/03/2012 - 17:40 | 2489955 Spitzer
Spitzer's picture

Bah, that was the 30's man. If Bernanke was around then, he could have stopped Weimar in 15 minutes.

Sun, 06/03/2012 - 17:45 | 2489969 Matt
Matt's picture

Increase interest rates from 0 to 20 percent in fifteen minutes. Because that wouldn't cause any nasty side effects at all. Like a massive sale by UST holders, perhaps?

Sun, 06/03/2012 - 17:51 | 2489987 LawsofPhysics
LawsofPhysics's picture

Sale?  What the fuck are you talking about?  People holding UST paper would finally get a return.  Now it might be a bit challenging for the U.S. government to service the debt. Big fucking difference.

Sun, 06/03/2012 - 18:00 | 2490007 zhandax
zhandax's picture

No, people buying UST paper would finally get a return.  People already holding UST paper would get a 40% haircut.

Sun, 06/03/2012 - 18:08 | 2490023 LawsofPhysics
LawsofPhysics's picture

People who are holding UST paper are already paying Uncle SAM to lose their money. You are correct, but the real problem would still be the ability of the government to service the debt.  What is the interest at now?  Something like 500 billion?  Go ahead Ben, "fix it in 15 minutes"  I dare you.

Sun, 06/03/2012 - 18:02 | 2490012 Piranhanoia
Piranhanoia's picture

and their neighbors.

Sun, 06/03/2012 - 18:57 | 2490100 knukles
knukles's picture

If they don't print that much money then all's they'll have is a little weiner.

Get it, weiner?
Ha hah ha h a hahah aha ah ahaha ha ha hahah aha ahah ah


(maniacal laughter)

Sun, 06/03/2012 - 16:54 | 2489838 Sudden Debt
Sudden Debt's picture

Overnight 30% devaluation of the currency

Sun, 06/03/2012 - 17:06 | 2489880 I am Jobe
I am Jobe's picture

Germans are smarter than Amerikan Counterparts.

Sun, 06/03/2012 - 18:12 | 2490035 NuckingFuts
NuckingFuts's picture

That why I drive VW TDI. 47 MPG, Bitchez

Sun, 06/03/2012 - 18:19 | 2490050 LawsofPhysics
LawsofPhysics's picture

That was before the "clean diesel" version.  It is now at 38 MPG - "winning"

Sun, 06/03/2012 - 18:28 | 2490059 NuckingFuts
NuckingFuts's picture

Farm tank, off road , tax free, winning. And it's a '98

Sun, 06/03/2012 - 18:32 | 2490071 LawsofPhysics
LawsofPhysics's picture

There you go.  The older diesels are getting hard to find, but still quite a few around.

Sun, 06/03/2012 - 19:25 | 2490182 unrulian
unrulian's picture

US doesn't print money..the Fed does

Sun, 06/03/2012 - 16:46 | 2489812 weltvermesser
weltvermesser's picture


"Also sometimes restrictions on the freedom of monetary transactions are necessary in the opinion of some economists, that liquidity assistance could not flow right back out of the crisis countries."

Sun, 06/03/2012 - 16:59 | 2489847 Manthong
Manthong's picture

Thanks for that

ECB… “Schattenrat"  phoneticly sounds more apropos in English than German.

Sun, 06/03/2012 - 17:14 | 2489899 RoadKill
RoadKill's picture

God another misinformed gold nut!

None of this is good for gold.  Gold is not going to break out due to bank runs and soverign defaults.  Indeed Gold will recouple with equities next week.

The reason gold outperformed equities last week is:

1.  Gold underperformed in Q1.  Basically it was flat and equities had one of the best quarters of all time.

2.  Rumors of QE3, 4, 5 etc....

Sorry but their will be no QE until the fall, and their will be no Euro Bonds or other printing.  The EU is going to blowup, the Euro will break apart.  We will see bank runs and multiple soverign defaults.

DEFLATION BITCHEZ.  Gold will "breakout" only after I get to trade in my FAZ, TZA and VXX for a 100% gain and buy gold at under $1,000 an ounce.  (Actually I'll buy platinum for $750 when Gold is at $1,000)

Sun, 06/03/2012 - 18:34 | 2490075 Bay of Pigs
Bay of Pigs's picture

Do you have idea whats going on the physical market or do you just spout deflation bullshit?

Sun, 06/03/2012 - 16:48 | 2489817 RockyRacoon
RockyRacoon's picture

I'm not confused; I just don't follow the day-to-day machinations of fools who change their minds as often as their underwear.   Well, in the case of Europe, maybe more often.

Sun, 06/03/2012 - 17:08 | 2489884 Silversinner
Silversinner's picture


I know you have knowlege about collecting coins.

I have a question for you;is FIRST STRIKE interesting

to invest in(DRAGONS?!)

I am a long time coin collector from Europe(Holland),

but I am not so familiar with the graded coins.

TNX,of course some advice about this subject from

others would be apriciated.

Sun, 06/03/2012 - 23:39 | 2490741 bigkahuna
bigkahuna's picture

Coins that the grader determines to be among the first off the mint can get the "first strike" label - and I do believe that collectors see this label as a novelty because it only goes to a set amount of coins. -some good for price-

However, the mints change out their press dies at regular intervals, so the "first strike" designation does not say as much about the quality of the coin strike as it may appear.



Mon, 06/04/2012 - 01:41 | 2490887 RockyRacoon
RockyRacoon's picture

You pretty well nailed it.   First Strike designations are more date oriented than die-state.  The whole thing is a marketing gimmick by the graders.   Don't mean a thing except to the bling collectors.   One has to determine whether one is acquiring coins for the fun of collecting, which can't be denigrated, or whether one is "investing".   (I hate the word.)   If collecting, buy the best grade you can.  If "investing" for the coming EOTWAWKI-- junk silver and common date bullion (not proofs) gold Eagles in denominations you can afford.   Above all, paper gold is not gold.   Get the real goods in hand.

Sun, 06/03/2012 - 16:51 | 2489826 knowshitsurelock
knowshitsurelock's picture

Confused about the latest developments?  I dunno, let's do a check on that.

A small handful of overstuffed alien reptilian, narcissistic, murderous, satanic, oligarchical banksters took over the planet, stole all of the assets from 7 billion of us, put the entire population into debt which they cannot pay, using fiat currency with no value, and are sucking all of the energy out of us like vampires and want to kill us off like a bunch of old used dirty dish rags.

Am I close?

Sun, 06/03/2012 - 16:59 | 2489852 slewie the pi-rat
slewie the pi-rat's picture

no, you're a troll!

how about another para on how you think the power transition will proceed in theParty (china)?

Mon, 06/04/2012 - 06:10 | 2491014 Al Gorerhythm
Al Gorerhythm's picture

Hey, Slewie. Hard to pick where the force lies with this one, na? I am torn between reading this as sarcasm or affirmation. You may have got it right here. We'll see. He may want to confirm whether giving private for profit bankers the monopoly to create debt and tie the nations monetary system to it with a derivative of it called currency, is a good idea or not. Perhaps you've misinterpreted, perhaps not.

Sun, 06/03/2012 - 17:28 | 2489931 Iwanttoknow
Iwanttoknow's picture

I think you are pretty close.

Sun, 06/03/2012 - 18:06 | 2490019 WmMcK
WmMcK's picture

Old dirty dish rags.
My Mom like that phrase, hadn't heard it in a while.

Sun, 06/03/2012 - 16:52 | 2489834 Dismal Scientist
Dismal Scientist's picture

The banks need to be recapitalised, and then broken up. Easiest way to do it would be to swap bondholders into equity, at the relevant loss ratio. But this cannot happen, say the experts, because the people holding the bonds are ... the banks.

Biggest clusterfuck of all time. And we'll get to pay for it via the magic of central banking. I'd like a ticket off the planet...

Sun, 06/03/2012 - 16:56 | 2489842 Alejandrito
Alejandrito's picture

The pain of bank. The pain of Europe. Euro crisis. Bank crisis.


Are you ready Germany?

Sun, 06/03/2012 - 16:57 | 2489845 Snakeeyes
Snakeeyes's picture

Merkel gets it that Obama, Soros, Lagarde, etc. want Germany to share in the DOWNSIDE risk of gross government spending and debt. She is not stupid. She may get forced into it, but it is like asking Texans to jpintly guarantee California debt at Texas debt rates.

It is the idiocy of socialism where they pretend that debt doesn't matter and tomorrow never comes. Well, it came and Germany doesn't want to get stuck with the tab for Greece, Italy, Spain and Portugal.

Much like I don't want to pay the tab for Calfornia's insane spending and entitlement programs. But I probably will.

Sun, 06/03/2012 - 17:42 | 2489963 smb12321
smb12321's picture

I fail to understand the joy at Italian rates being "only" five percent.  How can a nation with the second worst economy in the world ever repay loans even at 1%.  This is the ultimate kick the can - get all excited over a drop of a few basis points when there is no way to ever repay the loan in the first place.

Maybe they can pull an Illinois - sell bonds to pay for the ones coming mature today.  (Repeat cycle ad inifinitum).

Sun, 06/03/2012 - 17:48 | 2489977 Matt
Matt's picture

If they have a 5 percent yield and 2 percent deficit while running 7 percent GDP growth, everything will work out fine.

Of course, the real problem is that all of these countries, unions, pensions, insurance companies, etc etc etc, REQUIRE 7 to 8 percent growth every year or they collapse.

Sun, 06/03/2012 - 18:00 | 2490005 Whalley World
Whalley World's picture

GIPSI - Greece Italy Portugal Spain Ireland

Sun, 06/03/2012 - 16:57 | 2489848 Blotsky
Blotsky's picture

My attorney had never caught on to the notion espoused by some former drug users that you can get a lot higher without drugs than with them. And neither have I, for that matter.

Sun, 06/03/2012 - 17:48 | 2489979 Matt
Matt's picture




Sun, 06/03/2012 - 16:58 | 2489849 Conman
Conman's picture

You forget Cyprus might ask for bailout.

Sun, 06/03/2012 - 17:06 | 2489877 Boilermaker
Boilermaker's picture

Guam is in deep shit also!

Sun, 06/03/2012 - 17:17 | 2489903 Conman
Conman's picture

Is Guam a member state of the euro? Bailout for thee too then.

Sun, 06/03/2012 - 17:20 | 2489912 Boilermaker
Boilermaker's picture

No, but the contagion they would set off would be ginormous. The world just can't take that kInd of risk!

Where were the parents!? Why did kamikaze pilots wear leather helmets?!

Something to ponder along with the Eurotard mess.

Sun, 06/03/2012 - 17:28 | 2489928 Conman
Conman's picture

Well world wars were set off by smaller or equal states .. Food for though.

Sun, 06/03/2012 - 16:58 | 2489850 Boilermaker
Boilermaker's picture

Guess the opening ES.

+6 is my astute guess after reading, deciphering, and fully digesting all of that information.

Step up and place your bets folks!

Sun, 06/03/2012 - 17:01 | 2489855 slewie the pi-rat
slewie the pi-rat's picture

1 hour and the wheel will spin!

Sun, 06/03/2012 - 17:05 | 2489867 Boilermaker
Boilermaker's picture

Come on big money, no whammies....

Sun, 06/03/2012 - 17:11 | 2489893 malikai
malikai's picture

Wake me when it opens at 0.

Sun, 06/03/2012 - 17:17 | 2489904 Boilermaker
Boilermaker's picture

You're going to have a long slumber, then.

Sun, 06/03/2012 - 17:41 | 2489958 X.inf.capt
X.inf.capt's picture

i was thinking this week will be like.....



Sun, 06/03/2012 - 17:08 | 2489886 Excursionist
Excursionist's picture

My sense is Spain's proposal to move towards a fiscal union at the expense of sovereignty will resonate with the markets above all else.  It's going to be an EMU headline driven week..

Sun, 06/03/2012 - 17:11 | 2489890 Boilermaker
Boilermaker's picture

Then I would like to modify my guess to +15

Sun, 06/03/2012 - 17:32 | 2489939 Conman
Conman's picture

Doubt it , this was something already floated last year and pretty much shot down out the gate.

Sun, 06/03/2012 - 17:50 | 2489985 you enjoy myself
you enjoy myself's picture

i went back to 8/22/11 and looged every SPX move on the opening day of the week (an occcassional tuesday in there) - its not as ridiculous as i would have imagined.  it was up 25 out of 41 mondays, an avg of +1.29 points, and a median of +0.71 points.

Sun, 06/03/2012 - 17:58 | 2490002 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Flat...which is a great result given what's happpening

Sun, 06/03/2012 - 17:03 | 2489857 Vegetius
Vegetius's picture

“Suggestions targeting a fiscal, banking, and political union, as well as structural reforms, are being worked out by EU Council President Herman van Rompuy, EU Commission chief Jose Manuel Barroso, Eurogroup Chairman Jean-Claude Juncker and European Central Bank President Mario Draghi, according to the article.”

This is unreal and very funny; these four guys are going to sort it all out are they. Three full time politicos who know sweet fuck all and have never held a real job in their lives and a has been Goldman Sachs man what a total joke! If that’s the A-team well it’s time for a quote – 


Hudson: Think of what? We're fucked!

Sun, 06/03/2012 - 17:02 | 2489858 Towhog
Towhog's picture

Me thinks the drug induced fun at this circus would be much more intense if it were a European hall of mirrors carnival ride. Mind altering drugs in a hall of mirrors would make the troika ride seem normal. Then i could get back to watching Moe, Larry, & Curly

Sun, 06/03/2012 - 17:05 | 2489866 I am Jobe
I am Jobe's picture

Europe needs , WMT, 7-11 and Circle K and may more MCD's to boost the economy. They do not have obese folks to compete with Amerikans. Let the games begin. I am sure many Amerikans will float.

Sun, 06/03/2012 - 17:09 | 2489887 Boilermaker
Boilermaker's picture

No, they enjoy paying double for everything. Just ask them. They'll justify it to themselves. Interstingly enough, when I have euro guests at work, their primary interest is hustling to the mall to stuff their empty suitcase they brought along. Strange.

Sun, 06/03/2012 - 17:34 | 2489944 Eally Ucked
Eally Ucked's picture

Don't worry, they saved a bundle on medical, dental and educational expenses. Also they don't drive 100km to work, one way.

Sun, 06/03/2012 - 20:39 | 2490372 johnnyyuma
johnnyyuma's picture

Europe will have more than enough to contend with when we close our bases from lack of funding. They have had a free ride for defense for 60 years at our great grancillin's expense. When we are out the door they can bargain and or reason with Komrade Putin to their hearts content.


Sun, 06/03/2012 - 17:06 | 2489879 Piranhanoia
Piranhanoia's picture

A brief summation of Europe now on Radio 1;  "bite me"  German Reichsmarshall statement.  "Aliens have been in communication with King Franco";  Spanish PM statement.  "Greeks want their money"  German paper "Bilk".  "na na na na na na"  Telegraph (pole).  ECB (Euro Comedy Bureau) promises destruction of citizens.  "Euro will crash before we do" Le Sauce Hollandaise.  "bite me",  quote from drunken Bunga at weekly meeting with lonely girls.   Ambrose Wolfinger;  "na na na na na na"    


Sun, 06/03/2012 - 17:21 | 2489913 gatorengineer
gatorengineer's picture

Was kinda expecting at least a rumored big bazooka this weekend.  Looks like all we got is Merkel in some Depends....  They will have a hard time pumping this......

Sun, 06/03/2012 - 18:10 | 2490028 knowshitsurelock
knowshitsurelock's picture

Looks like all we got is Merkel in some Depends....  They will have a hard time pumping this......


ROFLMAO!!!  ZH has some of the best truth laced with comedy anywhere.

Sun, 06/03/2012 - 17:22 | 2489915 DavosSherman
DavosSherman's picture

This shit is fucked

Sun, 06/03/2012 - 18:27 | 2490060 TheFourthStooge-ing
TheFourthStooge-ing's picture

DavosSherman said:

This shit is fucked

Fucken A


Sun, 06/03/2012 - 17:27 | 2489925 max2205
max2205's picture

Detoliet and Douche can be counted on to tell the truth

Sun, 06/03/2012 - 17:32 | 2489938 Peter Pan
Peter Pan's picture

General Custer did not take two Gattling guns with him to Little Big Horn because they would slow him down. The result of that battle is well known.

The Europeans are so far refusing to pool together their one and only big gun which is gold. If they made an announcement that gold is going to be used to recapitalise the system, gold could easily hit $3000 and at over 11,000 tonnes they could end up having 3 trillion dollars of real, tangible and internationally recognised capital. Solvency issues would be largely dealt with.

Of course there would still be much to do, but this MUST be the start of any honest attempt to stabilise the system.

Sun, 06/03/2012 - 17:42 | 2489960 Sandmann
Sandmann's picture

The United States should form political union with Mexico and grant all Illegals in the US Full US Citizenship. Only by recognising the common destiny of USA and Mexico is it possible to resolve the economic problems in Mexico

Sun, 06/03/2012 - 17:47 | 2489972 Peter Pan
Peter Pan's picture

Yeah. Sounds about right. Will we end up with a level playing field or a field that has been levelled?

Sun, 06/03/2012 - 17:57 | 2490001 GeneMarchbanks
GeneMarchbanks's picture

Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom. -- Alexis De Tocqueville

Mon, 06/04/2012 - 06:03 | 2491008 AnAnonymous
AnAnonymous's picture

Another detached from reality US citizen comment.

Much closer to reality:

US citizens are so enamored of inequality that they would rather be inequal in slavery than equal in freedom.

Trouble with that it gives credence to the US citizen debt slavery fantasy.

Sun, 06/03/2012 - 18:11 | 2490031 kurt
kurt's picture

I used to take cars needing body work down to TJ, spend the day, eat dinner at the Cultural Center, drink 2 litres of local wine. I was coming down the hill to pick up a blue VW, toward town. The sun was setting, the air, light, wine. I said, "You know it would take a little nudge, slight adjustment, to fix this old and beautiful land." At that exact moment I fell into a sewer, the manhole cover had been stolen. I climbed the 12 feet out to discover blood pouring out of my shin. I had to bribe the taxi driver to be taken to the "cruz roja". There I had to bribe an attendent to get sewed up. I waited by a table with a big bloated naked dead body. Satiated fat flys hung low. On leaving a mustached man laughed at me saying "Tia Juana Borracho!"

Keep looking up, and down occasionally.

Sun, 06/03/2012 - 18:45 | 2490105 Ungaro
Ungaro's picture

Terribly misguided. Mexico should grant all US citizens automatic Mexican citizenship so the gringos can buy up more beachfront land. The fee for Mexican passports issued to dual citizens should be set at 10 oz of gold, 15 if there is a change of name.

In order to focus more effectively on fighting terrorism and the threat of terror, Mexico should immediately legalize and tax marijuana, with export permit fees set in oz. of gold. Problems solved.

Sun, 06/03/2012 - 22:52 | 2490662 Milestones
Milestones's picture

You have obviously never spent any time traveling around Mexico by highway. Much of it is impromptu garbage dumps.        Milestones

Sun, 06/03/2012 - 17:48 | 2489978 smb12321
smb12321's picture

LOL  the ONLY reason they have that gold is that they refused Roosevelt's request to trade it in for paper in 1934.   Most of it is US gold sent long ago.   They will NEVER use gold because their brains are hardwired against it except as another in a long line of phony tricks.  The problem is DEBT - not bonds, gold, rates, growth, austerity or elections. They can talk all day but as long as they ignore the mounting debt by taking on more debt, nothing has changed.

Sun, 06/03/2012 - 18:38 | 2490090 Ungaro
Ungaro's picture

That would be an excellent second step. First, they have to recognize that the mountain of debt will never be repaid and write it off. Once that is done, it is time for step 2.

Sun, 06/03/2012 - 17:47 | 2489973 theTribster
theTribster's picture

Thank God there is no crises in Spain, Rajoy clearly understands the situation and is on top of it. I feel much better about Europe now, what would we do without honest people like Marianno Rajoy? and Juncker to, the guy that said "when things are really bad you have to lie" but hey, I believe him and you should too.

Its a comedy of bullshit and to think these are the antics of adults - albeit Europeans. We Americans put on a much better show for the audience before we fuck 'em and steal everything they own and all they have worked for.

Soon, these pieces of shit will get their due. To quote somebody: "Heads will roll". I'm hopeful they include something in the Olympics, a new sporting event called "Kill the Banker" where the contestents use a weapon of choice to head into the city and kill as many bankers as possible, but they have a time limit of 24 hours. Extra point should be given if they kill them in their homes versus the office since it would show more initiative. Points could be given on kill quality, number of victims and even some sort of ranking for the bankers themselves 10 points for a CEO, 8 points for a CFO, etc.

If they don't implement it as an Olympic sport maybe we could do it as a new reality TV show, Americans love reality TV and we love to watch suffering. The show would be a winner creating lots of new American heroes that slayed the bankster scum and saved the country...or not.

A guy can dream.

Sun, 06/03/2012 - 17:50 | 2489984 smb12321
smb12321's picture

No, when Europe rolls all we will here is that "only if we'd printed / issued Eurobonds / taken on more sovereign debt / raised taxes, etc" the whole scheme could have continued forever.  I doubt anyone will EVER acknowledge the problem of massive debt caused by the welfare state. 

Sun, 06/03/2012 - 17:49 | 2489982 Winston Smith 2009
Winston Smith 2009's picture

Dr. Gonzo: We won't make the nut unless we have unlimited credit.

Raoul Duke: Jesus Christ, we will, man. You Samoans are all the same. You have no faith in the essential decency of the white man's culture.




Sun, 06/03/2012 - 17:55 | 2489994 djsmps
djsmps's picture

The Republic of San Marino is threatening to default on its 10 year. Draghi promises immediate action.

Sun, 06/03/2012 - 17:56 | 2489995 Zero Govt
Zero Govt's picture

Complete Eurocrisis Summary ...according to Chrsitine Lagarde

Greeks not paying enough Tax.

Sorted by the IMF

Sun, 06/03/2012 - 18:10 | 2490004 franzpick
franzpick's picture

I hope conditions are deteriorating so fast as to end the charade and force Angela to announce the German "Nein-Nein-Nein" plan.

Sun, 06/03/2012 - 18:06 | 2490021 midgetrannyporn
midgetrannyporn's picture

Germany controls the ECB. NO SOUP FOR YOU!

Sun, 06/03/2012 - 18:10 | 2490029 bankonthebust
bankonthebust's picture

In short.... Theyre fucked.

Sun, 06/03/2012 - 18:16 | 2490040 knowshitsurelock
knowshitsurelock's picture

I don't see the end of the road yet.  Can't EU kick the can down the road some more, issure more debt to pay for more debt to pay for more debt, raise taxes, excellerate their demise and stiff the next couple generations with the tab?

I mean, Keynesian economics works, right?

Sun, 06/03/2012 - 18:34 | 2490078 Ungaro
Ungaro's picture

Nah, the financial pocket pool (left pocket borrows from the right pocket, secured with collateral from the hip pocket) is nearing the end. The markets, not the central banksters will raise borrowing costs to reflect the risks. The end.

Sun, 06/03/2012 - 18:24 | 2490056 carbonmutant
carbonmutant's picture

Are the lights still on?

Sun, 06/03/2012 - 18:24 | 2490058 JamesBond
JamesBond's picture

europe should be quaking in their boots at anything referenced to as -


The Master Plan



Sun, 06/03/2012 - 18:29 | 2490069 Ungaro
Ungaro's picture

Ja, es kommst, die übermensch und die untermensch. This time, it will surely work much better than the least.

Sun, 06/03/2012 - 18:27 | 2490062 Ungaro
Ungaro's picture

Europe's economy is Eurobust! How you parse the new word depends on the color of glasses you wear: EU robust -- Euro bust.

Sun, 06/03/2012 - 18:29 | 2490068 unemployed
unemployed's picture

UK Sunday Times reports HSBC testing ATMs  for drachma notes ....

Sun, 06/03/2012 - 19:06 | 2490121 gwar5
gwar5's picture

No, Germany doesn't want Germany-backed Eurobonds. They're gonna want gold-backed Eurobonds backed by everybody's re-hypothecated gold to help cover their Ponzi tracks. 


The new master race of bankers will try to make the PIIGS pony up that gold for collateral, holding an unloaded Troika checkbook to their heads. The technocrats are already in place, but it would be very unwise of the people to allow it to happen.

The master race of douches made loser bets on profligate countries, so they need to pay. We're not here to bail them when they fail trying to play God. Let them sue Goldman Sachs for cooking the PIIG books. 

Sun, 06/03/2012 - 19:59 | 2490257 Fix It Again Timmy
Fix It Again Timmy's picture

Ah, Jesus Christ, what's the rush?  Things will turn out OK, just need a little more tiiiiiiiiiimmmmmeeeeeeee - goddamn etherrrrrrrr....zzzzzzzzzzzzzz.

Sun, 06/03/2012 - 20:06 | 2490281 lakecity55
lakecity55's picture

What a great idea in 2008: turn the country over to a gay negro stooge.

Fear and Loathing in the USA.

Sun, 06/03/2012 - 20:33 | 2490347 The Count
The Count's picture

...And let's not forget about the Queen's jubilee! Thanks to the media we all believe the royal family is the greatest thing since Disney World. They are all so cute and fun, arent they? Its all one big hoax, the royals still control most of what goes on in the UK along with high finance, much more wealth than officially reported and some very unsavory things (to be left unmentioned here). Its all just about as phony as when you see Warren Buffet come on TV looking like some kind of friendly senior from next door.

Mon, 06/04/2012 - 05:45 | 2491004 slackrabbit
slackrabbit's picture


I split myself at the BBC presenter talking about how dangerous it was for boats  to navigate the Thames - my wife on I roared with laugher. The level of BS truely has reached epic proportions.

Mon, 06/04/2012 - 06:06 | 2491010 AnAnonymous
AnAnonymous's picture

Thanks to the media we all believe the royal family is the greatest thing since Disney World.

Should be:

Thanks to the media we all believe the Disney world is the greatest thing since The Royals.

US citizens'issue with chronology is well known though.

Mon, 06/04/2012 - 06:22 | 2491022 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

US citizens'issue with chronology is well known though.

It must be a side effect of time travel to pre-1776,July,4th Easter Island for the purpose of resource depletion.

One resource which will never be depleted: comedic entertainment value of Chinese citizenism.


Sun, 06/03/2012 - 21:00 | 2490434 lolmao500
lolmao500's picture


  • According to Bloomberg, Merkel hardened her opposition to joint debt sharing in the euro region as President Barack Obama singled out Europe’s leaders for not doing enough to arrest the financial crisis: “under no circumstances” would she agree to Germany-backed euro bonds.

BULLSHIT Merkel. BULLSHIT. I bet if it goes for a vote in the parliament it would pass.

Mon, 06/04/2012 - 01:49 | 2490901 Joe A
Joe A's picture

Total power grap by the EU. First they created a disfunctional currency and then created the conditions for an economic disaster and now they use the situation to get total control. History (USSR, Yugoslavia) has shown you cannot force countries and people into one single country. It might have worked in the US but in the US people created one country from a cleanly wiped slate. In the USSR and Yugoslavia it might have worked for a while when people believed in an ideology of "brotherhood and unity" but people in Europe don't want a domination by Brussels. They seem to be united in their belief against the domination of Brussels.

Mon, 06/04/2012 - 06:15 | 2491017 Ghordius
Ghordius's picture

"domination of Brussels" my bottom. when was the last time you have been "dominated" by Brussels? And did you ever check how small Brussel's budget is?

Mon, 06/04/2012 - 06:33 | 2491037 GeneMarchbanks
GeneMarchbanks's picture

You know nothing. Brussels is a blundering mess of clumsy jugglers, the only thing intolerable is how ineffective these clowns are.

There is no domination from Brussels.

Mon, 06/04/2012 - 05:39 | 2490999 slackrabbit
slackrabbit's picture

I think John Galt's speech  sums up EU leaders today:


"both want a world where the impossible is possible @ their wish

How? ???? Somehow

They seek to escape the law of identity (impossible isn’t possible)"


Mon, 06/04/2012 - 06:14 | 2491016 zippy_uk
zippy_uk's picture

We need a plan... any plan...right now a plan..anthing...but right NOW!

- OK what about this break up plan

No!No!No!NO! Any plan, as long as its the same as the OLD plan

- You mean the old plan which has not worked

YES - that one!

Mon, 06/04/2012 - 06:36 | 2491039 PR Guy
PR Guy's picture



Complete EUrocrises summary? I can give it to you in 3 words: "Europe is toast."

When Spain falls, it all falls. The whole house built of cards.


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