This page has been archived and commenting is disabled.
Der Verkauf Ist Verboten - Germany Considers Ban On Sovereign Bond Sales
When back in August, Europe declared a short selling ban of any financials (here we are willing to channel Romney, and make a $10,000 bet with anyone that said ban will never be lifted), and which as we predicted has had no favorable impact on bank stocks which have since tumbled, we suggested that the next step will also be the final one: the passage of laws prohibiting sales of any kind. As usual we were partially joking. And as so often happens, we are about to be proven right again. As the FT reports in its headline article today, whose gist is simple enough, that Europe is on the verge, it is the tactically-placed final paragraph that is of particular curiosity. It says the following: "Speaking on the fringes of a start-of-year retreat of her Christian Union lawmakers in the city of Kiel, Ms Merkel said she would consider calls from her party colleagues for legislation to bar institutional investors such as insurance companies from selling bonds when ratings were downgraded, or fell below investment grade." Allow us to recopy and repaste the key part: "legislation to bar institutional investors such as insurance companies from selling bonds."
And there you have it: after everything else has failed, the state, not the politically independent, if at least on paper central bank, is about to formally enter the capital markets. And yes, first it will be a ban of selling on downgrades, then it will be a ban of selling on any downtick, and finally it will be a ban of selling anything and everything.
Naturally, since whatever is left of the market is still oddly rational, and somewhat forward looking, those who are still foolishly long the bonds will dump them asap, before this idiotic law is passed and finally crashes the European market. Correction: the market will be there, but it will consist entirely of the ECB only buying bonds, and never selling to comply with German capital control laws. Because after all Frau Merkel has elections to consider, and it will hardly be beneficial if the Dax were to be cut in half in an election year.
We do find it odd that insurance companies are being targeted - as these, just like AIG, are being completely ignored for the time being. Perhaps not much longer, and goes back to our thesis that Allianz & Generali, aka "A&G", are about to be the European equivalent of AIG, whose demise also began with that one particular rating agency downgrade.
And for anyone who thinks this form of lunacy is limited to Germany, we have news: it isn't. With Obama facing a daunting reelection task, one can be 100% certain that this and other potential laws are being contemplated (not least of which is the one-time financial asset tax as explained here back in September), and will likely take place just as soon as QE3, which SocGen believes will begin in March, fails completely to do much if anything about the market collapse, let alone the economy, the unemployment rate, and inflation.
»
- 27701 reads
- Printer-friendly version
- Send to friend
- advertisements -
Jim Willie on how UniCredit is about to take down a dozen western banks.
So next on tap is UniCredit going bad, going bust, failing, turning to dust. And when that happens look for at least another couple Italian banks to also go bust. And when that happens look for the French banks to go bust. The three major French banks. Credit Agricole, BNP Paribas, and Societe Generale. And when that happens look for at least one or two London banks to go bust- they’re all inter-connected! When one or two banks go down, it’s going to hit overnight, hit rapidly, and probably involve a dozen banks. That’s my feeling Doc.
http://silverdoctors.blogspot.com/2012/01/jim-willie-unicredit-failure-is-on-tap.html
We have now entered Looneyville where only the asylum inmates can come up with this ridiculous nonsense. Trying to unload your pigs in a poke is now to become verboten.
so if my golds goes down, i can't sells it?
Next it will be the 'Golden Ticket' use of rewriting corporate stockholder rules.
Funny, the worst cuss word in German is 'schweinhund', which translates to PIIG DOG.
Though the heavy restrictions and anti-capitalistic actions in the EU might fly, I doubt they would fly here at this time. Obama doesn't control everything, and given capitalism is on trial with him, the Ron Pauls/Mitch McConnels, etc will push hard against anything so radical and will clearly use it against Obama in the election. Now..if he should happen to get 4 more years, then it's all over with...
My 2 cents anyway.
Jaysus.....what the fuck is the point of an asset if you can't sell it.....ever. LOL
She is maybe, maybe, trying to do what the Japanese have done in the past; a nation with a debt/gdp ratio of 200%, but ALL the debt is held by local institutions and Japan has a creditor nation status, strong currency, as it exports more than it imports. Germany is in a similar situation trade wise but not currency wise because of frenetic speculation on peripheral sovereign debt. In order to get out of the "manipulated market" vice she may be tempted to impose an embargo on all Euro institutions, a moratorium of sorts, to ensure that during the next few years, they go 'Japanese', buy and hold sovereign bonds and cool off the market frenesy; which is from the German/Euro zone perspective part of financial currency "war" being waged by greedy US institutionals at the expense of weak Club Med Euro peripherals, now hurting the core countries.
I don't know if she can impose such a moratorium but this is the only logical explanation of this rumor if it is even envisioned.
Well, sometimes you can eat your assets, or live in them, or make pretty jewelry out of them, or grow food on them, or in come cases shoot people with them if they are trying to take any of the just mentioned. I think you are referring to financial assets.
Hitler would have the done the samething, her idea isn't original
Thats fair if she needs to make sure euro needs to survive.
FNN24 introduces news products which were previoulsy unavailable for retail trader.
Up to second real time news flow esp when it comes to bond markets auctions and economic data releases all of which allows the news trader and the other traders to benefit well before others get. This is a brilliantly affordable solution to bloomberg and Reuters.
http://fnn24.com/?p=37389
http://fnn24.com/?page_id=29780
Merkel always sais these kind of things to here party zombies. They never have any effect on legislation.
Personally, I think it;s a good idea. No selling gold if it goes down! Why should any fucker be allowed to buy the stuff for less than I paid?
A 2012 outlook for the EURUSD cutting through the noise and nonsense: http://www.youtube.com/watch?v=sXzqQL3SvBs
Ms Merkel said she would consider calls from her party colleagues for legislation to bar institutional investors such as insurance companies from selling bonds when ratings were downgraded, or fell below investment grade." Allow us to recopy and repaste the key part: "legislation to bar institutional investors such as insurance companies from selling bonds." ---->
Bundeskanzlerin Angela Merkel sagte am Samstag in Kiel, die vom CDU/CSU-Fraktionsvize Michael Meister angeregten Gesetzesänderungen seien "eine Betrachtung wert". Die Politik müsse darauf achten, dass durch die Herabstufung keine Folgen entstünden, die mehr schadeten als nützten. "Die Folgemechanismen, dass wenn eine Herabstufung erfolgt, dann zum Beispiel für Versicherer der Ankauf bestimmter Staatsanleihen nicht mehr möglich ist, die sind sehr, sehr strikt", sagte sie zur Erklärung. Die Vorschriften bewirkten einen "sich selbst verstärkenden Effekt". Deshalb sei es wertvoll, "sich das mal anzuschauen und zu überlegen, wo man hier gegebenenfalls Gesetzesänderungen machen könnte".
Meister hatte gefordert, Versicherungen und Banken müssten sich unabhängig vom Urteil der Ratingagenturen machen und eigene Beurteilungen von Anlagen vornehmen. Der Gesetzgeber könne dafür sorgen, dass bestimmte Anleger weniger stark vom Urteil der Agenturen abhängig seien.
http://de.reuters.com/article/idDEBEE80D02720120114
....FT lies! All they want is to destabilize Germany & Co. even more.
Jim Willie:
"The money supply is still growing. The data contradicts the premise that the QE program was terminated. Easily explained. The initiative turned global to produce Global QE. The USFed has been accommodating the Europeans and Wall Street banks, so that the broken insolvent big Euro banks can be propped with more phony money. The Euro Central Bank is printing money heavily or else borrowing in heavy volume from the USFed Dollar Swap Facility. Without bond market buyers, the EuroCB has reluctantly filled the void and has been buying the Italian Govt Bonds. Recall that big Euro banks are huge sellers of sovereign bonds. The USFed never stopped printing money to buy USTreasury Bonds, which ramps up each month as USGovt debt piles up each month. Recall that foreign creditors are net sellers of USTBonds. The USTBond auctions have not failed, and for a reason. The USFed is buyer of last resort. Where the bids came from has been kept quite secretive. It is the USFed, which never stopped QE. In fact, Global QE is the mainline policy nowadays, and it has turned into hyper-inflation under the sleepy eyes of both investors and the financial press. Why the investment community relies upon the central bank liars and the financial press dimwits is proof of national stupidity in my view. Intelligent people are wondering if QE3 will emerge when QE never ended!!"
There are Balance Sheet privileges for Rated Quoted, Tradeable investments - capital reserve requirements, accounting and reporting standards depend on the Rating.
Since the balance sheets of financial institutions are now loaded with investments that are no longer "privilege" rated, change the rules, which is what governments will now attempt. Merkel is only the first to bring this in public view.
Zero Hedge / Tylers all give us an alternative perspective on uncertainty and risk - fine by me.
Financial asset tax? maybe
Devaluation of the USD and all fiat currency? 100% certain.
why does everyone assume that Merkel isn't confused?
Confused and filled to the brim with strong, strong beer.
After Roosevelt's Presidential Executive Order 6102, drilling for new resources meant losing your safety deposit box full of gold. The clever krauts pass a law preventing institutions from selling bonds when ratings are downgraded, or fall below investment grade. The frogs whine, drink wine, and cut the cheese.
Financial repression, as predicted:
http://seekingalpha.com/article/269022-protecting-against-financial-repr...
Did someone say something about Angela Merkel starring in a German bond-age film?
I'm putting everything I have in moss. (I'ts great for insulating the walls of your cave)
http://www.economist.com/blogs/buttonwood/2012/01/debt-crisis
"Italy, Spain, France, and Germany together will need to issue in excess of Euro 4.5 billion every working day of 2012."
Sado Monetarism & Fiscal Bondage
In a room full of nervously shuffling people in line at the port-a-potties,...Merkel starts a large fountain of running water.
And you said the Germans have no sense of humor.
Abort PSI
And guess what this won't be mentioned, even in passing by ignorant irrespnsible so called journalists at CNBC....Fuck Steve Leisman
http://alles-schallundrauch.blogspot.com/2012/01/wie-ft-eine-falsche-aus...
And even Zero Hedge gets a mention for spreading this falsehood from the Financial Times.......Michael Meister of the CDU asked Merkel if it was right that Insurers were compelled to buy AAA-rated bonds only to have to sell them when they were downgraded ?
Diese Behauptung der FT ist sofort wie eine Lauffeuer durch die englische Finanzpresse gegangen und die bekannte Seite "Zero-Hedge" hat daraus einen Artikel geschrieben mit der Überschrift "Der Verkauf Ist Verboten - Germany Considers Ban On Sovereign Bond Sales" oder auf Deutsch: "Deutschland erwegt ein Verbot des Verkaufs von Anleihen". Wenn das stimmen würde wäre es eine Sensation. Hier weiterlesen: Alles Schall und Rauch: Wie FT eine falsche Aussage von Merkel verbreitet http://alles-schallundrauch.blogspot.com/2012/01/wie-ft-eine-falsche-aus...
Im letzten Paragraph behaupten die Autoren Gerrit Wiesmann und Scheherazade Daneshkhu, Merkel würde sich überlegen, den Versicherungen den Verkauf von Anleihen zu verbieten, wenn diese herabgestuft werden.
Hier weiterlesen: Alles Schall und Rauch: Wie FT eine falsche Aussage von Merkel verbreitet http://alles-schallundrauch.blogspot.com/2012/01/wie-ft-eine-falsche-aussage-von-merkel.html#ixzz1j7isd2mBhttp://www.youtube.com/watch?v=uP-mDvLqMJM
I had seen this story from one of my German colleagues (who reads Zero Hedge, so he will remain nameless). The story should be called "Conservative Merkel Goes Nixon/FDR!"
Germany Considers Ban On Sovereign Bond Sales (“Conservative” Merkel Goes BIG Gov’t Solution, French PM in Denial) – Remember the SS Eastland!
https://confoundedinterest.wordpress.com
This is the correct translation of what Merkel said.
http://www.ftd.de/politik/deutschland/:schuldenkrise-cdu-will-macht-der-ratingagenturen-begrenzen/60154574.html
There is no question that Zero Hedge and the FT got the German article wrong - the Germans want to take countermeasures against the rating agencies. Whether that involves legislation to prohibit the buying or selling of sovereign debt rated less than AAA is not the point. This all part of the on-going currency wars.
Please remember that the rating agencies are American owned. McGraw-Hill owns S&P. And, the composition of MHP's Board is overwhelmingly American, except for the representative from Lloyds Bank (Bischoff):
http://themoderatevoice.com/wordpress-engine/files//2011/08/mcgraw-hill-theyrule-net.png
These agencies are tools of the Federal Reserve and the combine of American corporations. S&P didn't give a rat's ass about rating US mortgage derivatives AAA until the US real estate market collapsed. Same for sovereign bonds. When S&P downgraded US debt to less than AAA in August 2011, MHP sacked S&P's president.
Everything possible is being done to divert attention from the weak US economy and the insolvency of the US Government. This is an election year. The primary directive to the Fed in 2012 is to get the sitting President re-elected.
No one can blame the Europeans for fighting back. They will not participate in a boycott of Iran or measures against Syria. After all, a currency war is just another form or warfare - this is all international politics and the battle for maintenance of world power.
The Europeans are trying to preserve the existence of their own banks - only Germany could bail out its own banks - but then, what would the rating of German sovereign debt be after the bailout - CCC?
No one will mention the consequence of a second round of bailouts for US banks. Our debt ceiling will have to be raised another $3 or $4 Trillion.
Hang on to your gold and be prepared for hard times.
only Germany could bail out its own banks
Really ? Deutsche Bank = 80% GDP Current Debt = 81% GDP So bailing out just one bank could put Germany on 160% GDP excluding Liabilities at ECB owed to Bundesbank and guarantees on ESM and EFSF.
The Fed gave Deutsche Bank over $70 billion of TARP money, just a little less than JPM.
My friends in Germany were astounded that DB required no emergency funding from Germany. The money came from NY.
http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending/#/overview/?sort=nomPeakValue&group=none&view=peak&position=0&comparelist=&search=
On the next go-around, Deutsche Bank will be acquired by its NYC subsidary and qualify as a an American TBTF bank.
Germany will say good riddance. DB only manufactures derivatives and market manipulation and no machinery or other high tech goods.
Don't worry about Germany - the Germans have always figured out a way to stay in business.
The Japanese will also survive - their Government will just reduce their populace to poverty by devaluing the internal savings in bonds to zero. That will make Japan more debtworthy and garner new cash from overseas.
We Americans will print money until no one will accept it. But doomsday is along way away.
Darren Sharper Jersey Drew Brees Jersey Jimmy Graham Jersey Lance Moore Jersey Malcolm Jenkins Jersey Mark Ingram Jersey Reggie Bush Jersey Saints Jersey Archie Manning Jersey Bobby Hebert Jersey Cameron Jordan Jersey Chase Daniel Jersey Chris Ivory Jersey Darren Sproles Jersey Deuce McAllister Jersey Devery Henderson Jersey Garrett Hartley Jersey Jabari Greer Jersey Jeremy Shockey Jersey Jonathan Vilma Jersey Marques Colston Jersey Mike Bell Jersey Morten Andersen Jersey Patrick Robinson Jersey Pierre Thomas Jersey Rickey Jackson Jersey Robert Meachem Jersey Roman Harper Jersey Saints Customized Jersey Scott Fujita Jersey Sedrick Ellis Jersey Tracy Porter Jersey
great choice. there may be hope for europe yet!
http://expose2.wordpress.com
en iyi oyun platformu
gazeteler.org
gazeteoku.com
limasollunaci
cagdasdanismanlikegitim.com
erteksyalitim.com
Cool Down, Merkel never made this statement, it is simply a wrong translation of FT. The error comes from Financial Times
You Zerohedge would do better to correct this and not simply copy paste everything from everywhere
http://alles-schallundrauch.blogspot.com/2012/01/wie-ft-eine-falsche-aus...
Since the end of hostilities in 1945, its industrial might have neatly positioned the U.S. to have become the single global super-power: alone, unchallenged and of all developed industrialised nations, totally intact, with no structural damage to its physical self and infrastructure.
Perhaps most critically of all, the USA had amassed huge gold bullion reserves, making the US Dollar the hardest and most desirable post-war currency.
Aware of this, and the need to promote political and economic stability in the nations now devastated by global war, the Bretton Woods Conference in New Jersey, 1944 was a meeting of accord: one of the critical delegates being John Maynard Keynes, the eminent British economist and philosopher.
. . .
The full: Changing of the Guard! | Feltham on the Economy
an interesting read... How Fiat Dies