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Demand For EFSF Paper Collapses As World Wakes Up To Post Bailout Hangover

Tyler Durden's picture


It just goes from bad to worse for Europe, which had been hoping to issue €5 billion in 15 year bonds to finance part of the Irish bail out via the EFSF. Instead, once seeing the orderbook, or lack thereof, Europe ended up slashing the notional by 40% and the maturity by 33%, to a €3 billion issue due 10 years from now. And that is hardly the end of the concessions. As the FT reports, "The bond from the European Financial Stability Facility will only target €3bn, instead of €5bn, and will be in 10-year bonds rather than a 15-year maturity because of worries over demand. A 10-year bond is more likely to attract interest from Asian central banks than a longer maturity. Banks hired to manage the deal are Barclays Capital, Crédit Agricole and JPMorgan." Do you see what happens Larry, when China walks? But so we have this straight, Europe plans to fund a total of €1 trillion in EFSF passthrough securities.... yet it can't raise €5 billion? Just.... Priceless.

From the FT:

One banker said: “There is so much uncertainty over the EFSF that it will be much harder to sell than it was earlier in the year, when we saw massive demand from European funds and Asian accounts. Japan and China bought in big size earlier in the year. We are not sure we are going to see that type of demand this week.”


Bankers said the bond, which is expected to price on Wednesday, may struggle to attract interest in spite of Klaus Regling, thead of the EFSF, launching a charm offensive in Asia last week to encourage interest.


Already delayed from last week, EFSF officials decided to price this week because market conditions could deteriorate if they held off any longer.


The bond is expected to price at yields of about 3.30 per cent, and about 130 basis points over Germany, the European market benchmark. This is a big mark-up since the middle of September, when existing 10-year EFSF bonds were trading around 2.60 per cent and only 70bp over Germany.

China makes good on its threat to not be perceived as the dumb money any more:

Bankers say earlier in the year Chinese and Japanese investors had been big buyers of EFSF bonds on the basis that they were triple-A rated with a big premium over Germany, which was seen as a risk-free premium.

As for the levels, regulars know that EFSF spreads have blown out to records lately, meaning that as less demand materializes, spreads will have to go ever higher, in the process obviating the advent of reality courtesy of a French downgrade. It seems the market has already priced it in!


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Mon, 10/31/2011 - 12:47 | 1828831 silver500
silver500's picture
"Hangover" - exactly, the central banks give everyone drugs to give us a high.

The world is building tolerance and requires more drugs for the same affect and withdrawal symptoms are getting worse.

When will they realise that the problem is caused by the drugs and we need to go Cold Turkey.

Mon, 10/31/2011 - 13:00 | 1828883 Ahmeexnal
Ahmeexnal's picture

So if they need 1 trillion, but only have 5 billion that means they will dilute euro value to one two hundreth of its current value with the help of Gutenberg's printing press. 


Mon, 10/31/2011 - 13:10 | 1828900 Panic Panic Panic
Panic Panic Panic's picture

Bullish!  Where's my tinfoil "Dow 5 Million" hat?

Mon, 10/31/2011 - 13:20 | 1828919 redpill
redpill's picture

Every Foolish Sovereign Fails

Mon, 10/31/2011 - 14:17 | 1829171 franzpick
franzpick's picture

It is thrilling to envision the banks and sovereign leaders, who have over the years painted themselves into a financial corner, asking for more paint to somehow open a way out of their trap.

Mon, 10/31/2011 - 15:59 | 1829579 Hard1
Hard1's picture

Who want's the equity piece of a 4-5x levered CDO?

Mon, 10/31/2011 - 12:44 | 1828832 Long-John-Silver
Long-John-Silver's picture

I'll take Gold and Silver over paper every time. BTY; It's on sale today.

Mon, 10/31/2011 - 12:50 | 1828851 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Europe is just another bad bet.

Corzine's $12,000,000 bonus means HE can buy almost 7000 oz of gold.  How many here at ZH can do the same?

OWS?  Where are you guys?  Isn't this the kind of thing you should be outraged about?

Mon, 10/31/2011 - 12:55 | 1828867 Bob Sacamano
Bob Sacamano's picture

"OWS?  Where are you guys?  Isn't this the kind of thing you should be outraged about?"

No, the NJ OWSers voted for him.


Mon, 10/31/2011 - 13:04 | 1828887 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, just what I was hinting at.  A well deserved + 1 for you.


Like someone on another thread just wrote, Corzine's next stop will be K St. in DC.  Maybe The Podesta Group?

Mon, 10/31/2011 - 13:33 | 1828968 redpill
redpill's picture

Come on now, he deserves a big bonus.  It isn't easy to fail so completely and spectacularly.

Mon, 10/31/2011 - 14:41 | 1829284 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

I almost forgot about the job he did on New Jersey...

Mon, 10/31/2011 - 13:30 | 1828956 motley
motley's picture

Just another revolving door politician/globalist, nothing to see here...

Mon, 10/31/2011 - 12:58 | 1828880 Missiondweller
Missiondweller's picture

Yes, if their average IQ was over room temperature they would be outraged.

Mon, 10/31/2011 - 13:00 | 1828884 Deadpool
Deadpool's picture

Apart from a dent to his reputation, Corzine also stands to lose financially from the MF Global bankruptcy filing. Corzine’s compensation last year was $14.2 million, including stock options MF Global valued at $11.1 million. Those options pay off at a share price of $9.25, which means they are very likely to be worthless now.


Mon, 10/31/2011 - 13:10 | 1828902 Deadpool
Deadpool's picture

=35.55% of MuFfdive Global

1) Fidelity funds, 13.9 million shares or 8.44% of common stock

2) Guardian Life Insurance Co., 12.9 million common shares, or 7.8%

3) Fine Capital Partners, 21.5 million shares, 7.37%

4) Cadian Capital Management, 10.2 million shares, 6.17%

5) TIAA-CREF, 9.5 million shares, 5.77%

Bloomberg News
Chris Flowers

Chris Flowers: The private-equity investor often is among the first calls for ailing financial firms in need of a lifeline. Flowers’s firm, J.C. Flowers, in 2008 agreed to help MF Global refinance debt, after MF Global suffered a $141 million charge from unauthorized wheat trading.

J.C. Flowers committed to invest up to $300 million in MF Global in return for preferred stock that pays a hefty dividend. The preferred stock converts to common shares at a price of $12.50, well above MF Global’s latest share price. Flowers’s stake also is likely worthless, barring a large sale or other rescue of MF Global.

Mon, 10/31/2011 - 12:51 | 1828855 HoofHearted
HoofHearted's picture

"China offered to fund the EFSF, provided that it buys gold, silver, and other commodities rather than worthless paper. Chinese trademaster and head pirate, Fuk Yu, was quoted as saying, 'All your gold are belong to us...bithcez...'" 

Mon, 10/31/2011 - 13:24 | 1828934 fonestar
fonestar's picture

Still buying all that I can.  Just licking my chops waiting for the inverse-Lehman moment when an industrial user says "we can't find any metal!"

Mon, 10/31/2011 - 13:37 | 1828980 kito
kito's picture

long john, europe is not printing. and as the dexias and the mf globals continue to add to the debt destruction and deleveraging, you are looking at a very deflationary environment. be very careful with pms. ben and the ecb are in no mood to print. people underestimate the major central bankers. they understand full well what happens when excess money is released...

Mon, 10/31/2011 - 18:12 | 1829889 SamuelMaverick
SamuelMaverick's picture

go tell your nonsense to SNB and Japan. Then go to the St louis Fed money aggregate charts and look for yourself. the most recent M1 chart actually hit the top of the graph, next week they will have to rescale the parameters in order to be able to get the hyperparabolic vertical line back on the graph. Deflation my ass.  The only thing that you wrote that made sense was not to underestimate the central bankers. Sorry, but you are delusional if you believe the deflation bullshit. The only things that are deflationary are the assets that depend on access to bank money ( real estate etc... )  

Tue, 11/01/2011 - 06:39 | 1831067 cranky-old-geezer
cranky-old-geezer's picture



You apparently understand nothing about monetary practice.

All this debt paper collapse doesn't reduce the money supply.  It simply eliminates creditor claims, effectively transferring wealth from creditors to debtors.

Tue, 11/01/2011 - 07:09 | 1831086 Tao 4 the Show
Tao 4 the Show's picture

Yes indeed. Inflation/deflation is not so simple as many suggest. Collapsing derivatives don't necessarily reduce effective money supplies or prices.

Mon, 10/31/2011 - 12:44 | 1828836 pendragon
pendragon's picture

expect more stage managed bs that the markets melt up on post g20 cannes

Mon, 10/31/2011 - 12:47 | 1828845 SheepDog-One
SheepDog-One's picture

And expect 48 hour halflife to be reduced to 24 hours max now. Who is left to be fooled?

Mon, 10/31/2011 - 12:45 | 1828840 SheepDog-One
SheepDog-One's picture

Wow that Hopium hangover is a real skull splitter.

Mon, 10/31/2011 - 12:46 | 1828842 Fips_OnTheSpot
Fips_OnTheSpot's picture

I postpone my personal hangover to tomorrow - and it's not "financially induced" :D

Mon, 10/31/2011 - 12:46 | 1828843 DoChenRollingBearing
DoChenRollingBearing's picture

Surprise!  Corzine bought a bunch of Euro-paper...

Mon, 10/31/2011 - 12:47 | 1828847 Deadpool
Deadpool's picture

this is first sign of the failure. There will be more.

p.s. who the fuck would even step up to 3billion when we know it goes towards worthless Irish debt? China can only be counted on to do stupid things for so long.

Mon, 10/31/2011 - 12:51 | 1828854 SeverinSlade
SeverinSlade's picture

When the solution to excessive debt is MORE debt, you know the plan is fucked.

Mon, 10/31/2011 - 12:51 | 1828856 youngman
youngman's picture

Its not that they reduced the amount..5 billion to 3 billion...its who is the idiots that are buying any of it...are investors really that stupid...or is it just one Central bank buying from another Central bank......or Fed to ECB...and yes gold and silver down today...well because...they just are...they can´t keep up with the fiat printing...the fiats get first crack at any good press...

Mon, 10/31/2011 - 12:53 | 1828862 Dick Darlington
Dick Darlington's picture

Add to this the latest cookings from Finland where they are preparing to add a mechanism to the Treaty with which exit from eurozone would be "legal". Dunno if they are preparing to run to the hills themselves or is it for the peripheral countries...

Finland would allow the euro resignation (Google Translate)

Finland has quietly made a policy decision that the EMU can be connected to the provisions of an agreement on how the euro erotaan. Alignment means that Finland would allow the resignation of a member of the euro area, which is not currently legal.

The Prime Minister made an alignment of currencies on Thursday, and renewed it last Tuesday. Exists in practice, already a political consensus, as opposition parties agree.

Prime Minister Jyrki Katainen (cons), the Board of Directors of the EU Ministerial statement is word for word as follows:

"Finland is ready to explore the possibility of strengthening the provisions of the Treaty establishing the Euro to resign."

The present of the EMU in the Treaty of the Treaty on European economic and monetary union, there is no regulations on how the euro erotaan. It is common ground that the euro will also lead to rejection of the EU's resignation.

The Government of Finland took a stand after the Dutch had suggested that the euro area's resignation would allow the same way as the withdrawal from the Union.

The opposition agrees with

Parliamentary opposition parties, the True Finns and the center support the idea.

Centre Party MP and the Parliamentary Grand Committee Vice Chairman , Antti Kaikkonen dictated by the last Tuesday of the minutes of the Committee to that effect in a statement. It agreed with the True Finns MP Peter Jääskeläinen .

Kaikkonen statement was ordered to be secret, but secrecy was demolished on Friday.

It reads as follows: "Any constitutional changes should be to create rules for insolvency vajonneiden countries leaving the euro."

Soini led out of the EMU?

Eroamissäännöksen absence has become a burning Greek velkakurimuksen period. Greece has been shown at one time or another door out of the euro.

But, in principle, the resignation may be topical, sometimes by Finland, where the test would be a politically appropriate. In practice, such a presentation could become the government, the prime minister should be based in Finland , Timo Soini .

Euro area countries have put forward a variety of changes in the EMU in the Treaty.

In Germany, almost all the major parties want to change the basic agreement. The German government members have suggested that the EU Court of Justice to monitor the budgetary discipline and impose penalties for violating rules of the countries. EU law does not present such a power.

The Netherlands has been a great idea to spin. The Hague has been suggested that repeated violations of the provision could be exported to a member country of the voting rights. Finland does not support this proposal.

The Commission has proposed a joint and several bonds and eurobonds. Finnish Government's position on eurobonds intensified last Tuesday. The Board decided that Finland will not accept the EMU contract changes that would allow the joint and several eurobonds.

The long road ahead

EMU, the Treaty will not change overnight. It requires at least all the 27 EU member governments of consensus. The decision to factories in the summit, which should be consulted before the European Parliament, and possibly also the European Central Bank.

Nor is it conceivable that need to be to convene the EU convention, after which the changes confirmed at the Intergovernmental Conference. Under this option, the time can keep you busy for years.

The changes, however, attempt to perform as quickly and conveniently.

Germany is related to Finland, the aim is that the Berlin Protocol, which is integrated into the treaties. It would apply to all other EU countries except Denmark and the UK, with a permanent exception to the EMU.

Drawing up the Protocol aims to ensure that the articles of the Treaty avattaisi.


Mon, 10/31/2011 - 13:36 | 1828975 plantigrade
plantigrade's picture

Keep the Euro as legal tender besides the national currency to keep European business, but get out of the financing mechanism.

Last countries remaining finance the Euro mechanism.

Mon, 10/31/2011 - 12:56 | 1828866 Azannoth
Azannoth's picture

"Just.... Priceless." - Because your Mastercard is already maxed out ! LOL

Mon, 10/31/2011 - 13:11 | 1828878 Deadpool
Deadpool's picture

gold could be down because MF Global has to liquidate everything (which would include Europe debt which killed them), or dollar rally, or someone sold some they don't have to a market that is leveraged 100:1...nothing near a correction. Gold is only asset class up over 10 years. Today is another of the 1000 reasons why = currency debasement to infinity.

Mon, 10/31/2011 - 13:18 | 1828917 The Deleuzian
The Deleuzian's picture

Holy shit Deadpool!!...You're not as stupid as I thought...Trying to justify, predict, or prognosticate how, when, and why gold moves is futile...Give up...Just take cash you don't need to pay bills, or $ to invest in other 'vectors,' and buy physical...simple yet profound and you will be happy...

Mon, 10/31/2011 - 13:28 | 1828949 Troll Magnet
Troll Magnet's picture

I agree with everything except the "you don't need to pay bills" part.  Given that TPTB will do everything in their power to prolong this for as long as possible, I'd urge everyone to pay their bills on time, stay clear of the housing market, don't buy anything big like a car and remain debt free.  And yes.  Do buy gold and silver and take physical delivery.  But keep some cash on hand to remain liquid for as long as the system is in place.

Mon, 10/31/2011 - 13:50 | 1829024 The Deleuzian
The Deleuzian's picture

Troll Mag...I think you misunderstood my point...I just payed my e-, my internet and my rent today...The double negative is confusing...admittedly!

Mon, 10/31/2011 - 13:29 | 1828953 Deadpool
Deadpool's picture

Fuck you very much...

Mon, 10/31/2011 - 13:42 | 1829001 The Deleuzian
The Deleuzian's picture

OHHHH Deadpool!!

Mon, 10/31/2011 - 13:01 | 1828888 bankonzhongguo
bankonzhongguo's picture

And once again risk can only be priced in with higher interest rates.

Don't worry your friendly neighborhood Federal Reserve will purchase any under-subscription.

Mon, 10/31/2011 - 13:01 | 1828889 topcallingtroll
topcallingtroll's picture

Dammit you guys just dont like to see people partying and having fun. Always trying to throw a turd in the punchbowl.

Lalala la de la....I cant hear you.

Everybody buy buy buy!

Mon, 10/31/2011 - 13:02 | 1828891 SaMsKy
SaMsKy's picture

Priceless :D That's right baby


Mon, 10/31/2011 - 13:04 | 1828895 jcaz
jcaz's picture

3.30%?   No thanks-  talk to me when you can pay me closer to 8% to hold this shit.

Mon, 10/31/2011 - 13:48 | 1829015 Strider52
Strider52's picture

They could promise to pay 200% in 60 days and I wouldn't come near this Radioactive Waste. No thanks, I'm too busy trying to find all the gold I lost in the boating accident.

Mon, 10/31/2011 - 13:05 | 1828896 RobotTrader
RobotTrader's picture

IBD Top 50 mostly green today.

Except for the few "resource" stocks getting the beat down, like AUY, IAG, etc.


Mon, 10/31/2011 - 13:13 | 1828907 sheeple2012
sheeple2012's picture

I Keep looking for NFLX and GMCR in the IBD 100, what happened?

Mon, 10/31/2011 - 13:06 | 1828898 boyplunger
boyplunger's picture

monalisa is falling apart ?

Mon, 10/31/2011 - 13:07 | 1828899 RobotTrader
RobotTrader's picture

44 days running with -1000 panic TICK or worse.

"Investors" still pretty jittery.$TICK&p=D&yr=0&mn=6&dy=0&id=p37322057532

Mon, 10/31/2011 - 13:10 | 1828903 lesterbegood
lesterbegood's picture

This report from Benjamin Fulford may shine light on the current situation:

 The situation in Europe is making it clear to all but the most brainwashed that something historical is taking place. What is happening is that the criminal element at the very top of the Western power structure, especially at the very top of the financial system, has been cut off from their money printing machine. As a result, the IMF and the major European and US money center banks are insolvent. No amount of lying or paper shuffling or propaganda is going to hide this fundamental truth. The governments of Greece, Ireland, Portugal, Italy etc. know that the debts they supposedly owe to bankers were created through fraudulent book entries and thus do not have to be repaid. That is why the banks suddenly announced that Greece only had to pay back 50% of their debt even though such a write off would destroy them. They are hoping for a tax payer bail-out that is just not going to happen. It is game over. The Rothschild banking nightmare is ending

Mon, 10/31/2011 - 13:30 | 1828955 SMG
SMG's picture

I really hope this is true.  I'll believe it when I see it.

Mon, 10/31/2011 - 13:30 | 1828958 ziggy59
ziggy59's picture

Any one think Ben fullofshitford is credible?

Mon, 10/31/2011 - 13:38 | 1828986 Tao 4 the Show
Tao 4 the Show's picture

A new meme? The poster must either be Fulford, his friend, or just an undying optimist. The unbacked claims are wild and completely unsupported except by "sources". Of course he is asking for money.

Selling good news and hope to battered watchers at the head of the pack? It's an interesting idea in these times. Creative marketing.

Mon, 10/31/2011 - 14:17 | 1829172 Last_2_Sense
Last_2_Sense's picture

While I would like to agree with you, but I wouldn't send out the party invitations just yet. It has been a tactic of the elite for many years to create the problem, then offer the solution that causes the change they had initialy wanted, but couldn't get by simply buying the law makers. I'm inclined to belive whats going on in Europe is all geared toward establishing complete centralized control. And as long as all those uppity European peasants stand in the way with antiquated ideas of national soverginty, then things will continue to get just as bad as they need to get, until their spirit is broken and they submit even further to their financial overlords. The family you speak of has enough money of their own to right the system over night, and alot of this "shadow debt" is owed to them as well. I don't see any of this as a crisis I see it as one huge power play, though it may seem like a crisis to anyone who was stupid enough to think they could play along side the masters of us all and come out ahead.

Mon, 10/31/2011 - 14:30 | 1829245 Tao 4 the Show
Tao 4 the Show's picture

Distinctly possible and fits the historical pattern. Also historical is the tendency for people in power to believe they are more intelligent than other humans or even the whole of nature. It is this fault that will ultimately foil their plans. There are far bigger pictures than they are capable of seeing. The time in-between is the challenge.

Mon, 10/31/2011 - 21:44 | 1830408 TrulyBelieving
TrulyBelieving's picture

Makes sense, agree all could be possible. One thing that might be different, This ain't game over for Rothchild. The game has been to use paper worthless currency to buy real goods and commodities. That's basically something for nothing. Rothchild already won. So now that it's getting close to end game for paper, his plans for part 2 will begin, are probably already being implimented we just dont know what they are. But you can bet they are sinister. With his pockets loaded, he could do just about anything. Cause wars, famines, civil unrest, anything.

Mon, 10/31/2011 - 13:11 | 1828904 PianoRacer
PianoRacer's picture

This is what happens, Larry!

I don't know who TD is but he obviously is a fan of The Big Lebowski. And that makes him all right in my book. I like to play a ZH drinking game where whenever I catch TD subtly referencing minutae of American pop culture (I'm sure many references fly right over my head).  Good thing I keep a bottle of scotch in my desk for occasions just such as these.

Mon, 10/31/2011 - 13:41 | 1828999 TheLooza
TheLooza's picture

there are about 10 lebowski drops a day here.  "see what happens larry" being the most common and obvious.



Mon, 10/31/2011 - 15:47 | 1829534 PianoRacer
PianoRacer's picture

Yeah, I tend to get pretty hammered.

Mon, 10/31/2011 - 13:11 | 1828905 The Deleuzian
The Deleuzian's picture

Robo...You just hate the gold-stocks don't ya...

Mon, 10/31/2011 - 13:14 | 1828908 lolmao500
lolmao500's picture

Do you see what happens Larry when you f*** a stranger in the ass? That's just like your opinion, man.

Mon, 10/31/2011 - 13:16 | 1828909 SaMsKy
SaMsKy's picture

USD/JPY no movement after the morning


Mon, 10/31/2011 - 13:15 | 1828911 Deadpool
Deadpool's picture

Based on MF Global’s disclosed assets in its bankruptcy filing, it is likely to slot in just ahead of Chrysler as the eighth-largest U.S. bankruptcy.

1) Lehman Brothers Holdings, September 2008: $691 billion in assets

2) Washington Mutual, September 2008: $327.9 billion

3) WorldCom, July 2002: $103.9 billion

4) General Motors, June 2009: $91 billion

5) CIT Group, November 2009: $80.4 billion

6) Enron, 2001: $65.5 billion

7) Conseco, 2002: $61.4 billion

MF Global: $41 billion (as of Sept. 30)

8) Chrysler April, 2009: $39.3 billion

9) Thornburg Mortgage May, 2009: $36.5 billion

10) Pacific Gas & Electric Co., 2001: $36.15 billion

Source:; SEC filings for MF Global asset size

Mon, 10/31/2011 - 13:20 | 1828920 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Good job digging this up.

Mon, 10/31/2011 - 13:20 | 1828922 lolmao500
lolmao500's picture

Lehman with $691 billion in assets? Wut? From September 15, 2008 :

The bankruptcy filing by the Wall Street firm followed a failed effort to find a buyer or persuade the U.S government to bail it out of massive real-estate- related losses. The bankruptcy petition said Lehman's assets are worth $639 billion.

Mon, 10/31/2011 - 13:29 | 1828952 Deadpool
Deadpool's picture

...bring it up with's $52bln in the grand scheme of things anyway? they were big by 2x.

Mon, 10/31/2011 - 13:23 | 1828929 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Morality is the U.S.A's #1 bankrupcy...

... the U.S.A has been morally bankrupt for quite a while now. Killing women and kids for oil and so fat citizen's can work less and get even fatter while watching junk on the idiot box.

Mon, 10/31/2011 - 13:38 | 1828987 topcallingtroll
topcallingtroll's picture

Dont you get bored with the "USA very very bad" rant?

Mon, 10/31/2011 - 13:39 | 1828989 LFMayor
LFMayor's picture

It's great work if you can get it...

Mon, 10/31/2011 - 13:15 | 1828912 digalert
digalert's picture

Has anyone tried sticking a fork in the euro? I think it's done.

Mon, 10/31/2011 - 13:16 | 1828914 GeneMarchbanks
GeneMarchbanks's picture

'From the FT: '

FT = Full Tard

Mon, 10/31/2011 - 13:16 | 1828915 lolmao500
lolmao500's picture

3.3% yield... total BS. Why would someone buy a 3.3% yield when they can get a 6%+ yield from Italy? Both have the same likelyhood of being repaid....

Mon, 10/31/2011 - 13:22 | 1828924 Ghordius
Ghordius's picture

but...but... it has Irish Debt(TM) in it!

and you get one of those... how are they called... leprechauns for free!

Mon, 10/31/2011 - 13:31 | 1828962 lolmao500
lolmao500's picture

The chinese were stupid enough to buy more than a trillion of US debt, they sure as hell can buy a trillion of EU debt. They have 3+ trillion in foreign currencies, they need to spend it.

Mon, 10/31/2011 - 13:41 | 1829000 jomama
jomama's picture

indeed, they stand to benefit more to keep the music playing even if on paper they look like they're taking a drubbing (pun intended).

Mon, 10/31/2011 - 13:37 | 1828979 Sizzurp
Sizzurp's picture

If this paper can't find buyers, how long is it before capital is controlled and forced unwillingly to buy it? No QE, no bond buyers, what is a government to do?  I don't see them holding off the QE presses, or even your money, while watching interest rates go to infinity and beyond.

Mon, 10/31/2011 - 13:50 | 1829023 JOYFUL
JOYFUL's picture

Where are all the "historians" at this epochal moment: have they all gone the way of BP Gulf whistleblowers, or are they all bought off with promises of tenure and scholarships? Surely the "Austrians" could rise to the occasion!?!?...but not one delegate appears amongst us to elucidate the key theme of the cyclical nature of our reality.

Perhaps Martin Amstrong with his theory of business cycles really is the only giant left amongst us. But we of lawn ornament stature must dare to tread where even Martin fears to go(understandably-he served hard time for refusing the 'invitation' to give over to GoldmanSachs the fruits of his intellectual labor!)

All of the bullshit emanating out of the Eurozone at this moment is but a replay of the game of Metternich and the "Council of Europe" post Waterloo, a game of bought and paid for statesman angling on behalf of their shadowly bankster owners for the delegation of sovereignity to Yacob Franks' inheritors: his curse invoked upon those who had opposed his Saturnine vision, Catholics, (Torah)Jews, Protestants alike all to be eternally damned by his millenial cabbalist crusade to abase European culture and DNA.

Had there not been one giant also at that moment [I speak of course of Robert Stewart, 'Castlereagh'] able and willing to resist the seemingly unstoppable momentum of the maniacs, there would be no replay at this moment to distract us from our servitude to the neofeudal forces behind the destruction of EuroAmerika.

Kissinger wrote his thesis on the role of Metternich and the other minions of Moloch, and has pinned his fate on completing the work of his hero, on behalf of his City of London paymasters, who purposely interbred with the AngloIrish ascendancy in order to dilute that strain of honor and nobility which saved us from destruction once before.

There are no 'statesmen' anymore, only "dual citizens" placed strategically amongst the satrapies, and Martin is smart enough I'm sure to leave politics to the losers. Guess we're going to have to dig deep and find it in ourselves to save ourselves this time. That time is nigh.

Mon, 10/31/2011 - 14:42 | 1829286 Tao 4 the Show
Tao 4 the Show's picture

Nice post. These times we live in remind me of a Rumi poem:

An Empty Garlic

You miss the garden, because you want a small fig from a random tree. You don’t meet the beautiful woman. You’re joking with an old croon. It makes me want to cry how she detains you, stinking mouthed, with a hundred talons, putting her head over the roof edge to call down, tasteless fig, fold over fold, empty as dry-rotten garlic. She has you tight by the belt, even thought there’s no flower and no milk inside her body. Death will open your eyes to what her face is: leather spine of a black lizard. No more advice. Let yourself be silently drawn by the stronger pull of what you really love.


That line "empty as a dry-rotten garlic" is a stunning description of our times. So little substance to be found. I suspect those who survive will re-discover it.

Mon, 10/31/2011 - 14:46 | 1829300 lesterbegood
lesterbegood's picture

In all the history books I have read, there is nary a mention of the financial forces that foment war?

Mon, 10/31/2011 - 14:08 | 1829121 Joebloinvestor
Joebloinvestor's picture

Euphoria at the prospect of over 1 trillion euros to deal with the mess.

Now the only problem is how to raise the 1 trillion when EVERYONE KNOWS it isn't going to be enough.

What a joke, buying debt to give the illusion of wealth.

Mon, 10/31/2011 - 14:52 | 1829332 ivars
ivars's picture

All my prediction charts are now in one place without unnecesary text:

Please visit!

Mon, 10/31/2011 - 22:55 | 1830499 Bay of Pigs
Bay of Pigs's picture

You keep spamming this shit and using Turd's site promoting your charts, I will go full retard on you. You need to stop doing this, and show some repect to TD and TF. 

Better yet, go build your own site.

Mon, 10/31/2011 - 19:11 | 1830042 Buck Johnson
Buck Johnson's picture

This EFSF deal isn't going anywhere and they know it.

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