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Deutsche Bank: "The Spanish Recapitalization Is Not Working" - A Market Shock Is Required

Tyler Durden's picture


This weekend, everyone's attention will be on the Greek elections, however it is Spain that has now become the "fulcrum security" of Europe. As such, events in Greece are merely a catalyst that will set off a chain of events that will have an impact not only on Spain, but on all of Europe, and thus, the world.

As we pointed out last week after the Spanish bailout announcement, based on a preliminary analysis which had been compiled by Deutsche Bank's europhiles hours before the formal announcement, and one which just happened to be a carbon-copy of what was proposed as the 'final (and failed) Spanish solution', it appears that the events in Europe are if not orchestrated by the largest German bank, then certainly receiving part-time advice.

Which is why we were somewhat disturbed to read Gilles Moec's summary this morning, which points out the patently obvious: "Spain recapitalization: it’s not working." Whether it is that Europe's brightest minds forgot about the threat of subordination (promptly reminded by Zero Hedge hours after the formal announcement), and that the scars of the Greek cramdown are still fresh in the private sector's mind, it does not matter: as DB says: "Unfortunately, the market reaction was clearly negative, with Spanish 10 year rate brushing past 7% for the first time since 1996. Two main elements probably explain the market reaction: first, the increase in public debt triggered by the recapitalization whose cost will stay on the sovereign’s balance sheet under the current rules); second the seniority attached to ESM loans, if this scheme is used as the final channel for the EU loan instead of the EFSF."

Yes, it is "unfortunate" that Spain's bailout plan was poorly planned, organized and executed. It is not unfortunate that some are still left who can do simple math and call out Europe's failed plans. Which brings us to the present, where we find that even Deutsche Bank has given up hope for interim solutions, having realized that the market will no longer accept transitory, feeble arrangements. Instead DB is now formally calling for a big bang resolution, one coming from the ECB. Here is the punchline: "ECB has room for manoeuvre, but needs political cover for a ‘big’ policy" or said otherwise, "A shock is required to get a liquidity response." In other words: Europe's only real hope for even a stop gap solution... is a wholesale market crash, not surprisingly the very same conclusion that Citi reached on May 19 when they warned that only Crossover (XO) at 1000 bps or wider could push Europe into acting...

Basically stated, anything less than a controlled market crash, one that finally gets the ECB involved with Germany's permission of course, merely pushes the market higher on nothing but hope of an intervention that said market lift makes even more improbable, as now both Citi and DB admit, which can and will lead to an uncontrolled market collapse, one from which not even the ECB will be able to extricate Europe.

In this light, will Greece simply be the start of the much overdue "controlled demolition", that will bring the ECB out of hibernation, that is paradoxically instrumental in avoiding an uncontrolled demolition, where not even the ECB will have any powers left to prevent a collapse?

Here is how Deutsche Bank sets the strawman - on the recapitalization, the market is wrong, and our advice was, well, right:

The statement by the German finance minister on Monday that he found find an ESM solution “more efficient” may have rekindled among investors the fear that the “Greek blueprint” would be replicated for Spain, with the private sector left to bear the brunt of any restructuring.


We think that the risk to Spain’s public debt sustainability, even after a EUR100bn recapitalization effort, would remain manageable under what we consider realistic assumptions on growth and interest rates (see FE Europe 8 June). Spanish public debt would remain significantly lower than in Italy and not so far above that of France, for instance.

There is always a but. And in this case, it is yet another event out of left field that will likely send spreads soaring even more than before:

However, even if we think that the long-term issues surrounding Spanish public debt are overstated, meeting the government’s refinancing needs in the next few months is getting increasingly difficult, in our view, since the ‘war chest’ accumulated by Spanish  banks in the LTROs of December and February is drying up. At peak, in March 2012, Spanish banks had accumulated EUR 88.7bn on the ECB’s deposit facility. This has fallen to EUR 36.8bn in May. Spanish banks have committed to lend EUR 35bn to the regions this year to help them pay down their arrears. They need to refinance c.EUR 80bn of their own debt before the end of the year. Taking the slack from nonresidents reducing their exposure to the Spanish sovereign is going to stretch their resources further. By March 2012 (latest available data), non residents had reduced their holding of Spanish public debt to EUR 158.7bn (31.6% of the total), down EUR 6.4bn in a month and down EUR 26.1bn in a year. The valve of adjustment under the current circumstances would be to cut lending to the private sector further, thus sending domestic demand into more contraction.

In other words, "the money, it's a gone." Needless to say, the bank that will do everything to avoid the market's attention being focused on its capitalization and leverage ratio, already has a follow up plan, after its first one failed:

To unlock the Spanish situation, we think that three ingredients should be envisaged:

  1. Another round of long term liquidity injection by the ECB. Even if the political conditions are not met at this stage (see last section of this article), we believe that this would be the only possibility for local banks to continue to support their sovereign. Further tweaks in the collateral rules would probably be needed to ensure that banks could take full advantage of this additional round. In our view, to try to incentivize banks to re-start lending to the private sector, the rules could be changed to allow only recently originated loans to corporations, for instance.
  2. Announcing recourse to the EFSF rather than the ESM to recapitalize Spanish banks. This could be seen by the market as a sign that seniority is not a major preoccupation of the Europeans when dealing with Spanish bank recapitalization. This would entail a negotiation with Finland on a collateralization of its support which, given the size of the Finnish contribution, is manageable, in our view.
  3. Ideally, the most powerful signal would be to open the possibility for direct recapitalization of banks by the euro rescue mechanism. This could not be done via the EFSF, but is still doable for the ESM, either via a unanimous change in the list of instruments by the board (article 19 procedure), or via a revision in the treaty – which still has not been ratified by Germany - if the legal basis for an “internal modification” is too weak.

Fair enough, "Door 1" it is, as further confirmed by yesterday's statements out of Draghi, and various media leaks, that a European ZIRP may be just around the corner. There is, however, a problem with getting another LTRO out of the ECB. As Moec says, "ECB has room for manoeuvre, but needs political cover for a ‘big’ policy."

Again, from DB:

With the market unconvinced by the Spanish bank recap package and near-term prospects of an ERF unconvincing, the market will be looking to the ECB as a last resort to restore some order.


There were mixed messages from ECB President Draghi’s comments on Friday, 15 June. In his address to the annual ECB Watchers conference, he claimed the objectives of the 3Y LTRO have been “broadly met”, in particular the easing of supply constraints on private credit, but pledged to provide liquid “where needed”. He claimed economic stabilization remains the ECB’s baseline, while at the same time pointing to the weak data since the baseline was agreed and “serious downside risks” to growth. He claimed that the ECB cannot “fill holes” in the EU’s process of mending heterogeneity, but that the ECB “partly responded” to heterogeneity with the enlarged collateral pool, specifically the credit claims collateral.

And here we get to the crux of the issue, the one that has inverted the expectations outcome out of Greece, whereby if Syriza wins, the market's Pavlovian dogs are now fully expecting a global central bank intervention, aka the Bank. Should Syriza disappoint and Greece end up ungoverned, or paradoxically get a pro-Europe government, the lack of response will likely result in a risk off mood come Monday especially since the entire upward move in the past week was purely short covering on fears of monetary policy response:

A shock is required to get a liquidity response


Draghi discussed the concept of “adequate liquidity” on Friday. He differentiated between normal times, when the volume of liquidity is determined by banks’ obligatory reserve requirements and other autonomous factors, and times of financial instability, when the central bank must counteract bank funding market tensions and “systemic consequences”. Financial stability is an ECB responsibility. Compared to the comments from Draghi at the 6 June press conference, when the hurdles to more liquidity seemed high, there is more of a sense of ‘readiness to act’. That this message came right at the start of Draghi’s address to the ECB Watchers conference implies the importance of the ‘readiness’ message. The full allotment regime remains in place. Banks can get as much liquidity as they require for one week and for three months. The 3Y LTRO Draghi describes as having “broadly met” its objectives, specifically, easing credit constraints. He admitted it would take longer to judge full success (a flow of credit to the private sector), but demand may be weak. We have highlighted the importance of the next ECB Bank Lending Survey on 25 July of the ECB’s judgment regarding the need for additional vLTROs. It is possible in the context of more disorderly market scenarios that the ECB pre-empts the BLS to reengage the vLTRO policy which has, in Draghi’s view, already ‘broadly’ worked in similar market conditions.

And there you have it: if have more "disorderly market scenarios" read market crash, but not terminal crash, then ECB brings out the firepower.

Anything less, and everyone will be disappointed as it merely enforces the continuation of a now failing, and obvious to all, status quo, one which sees Spanish bond yields leaking ever wider, until Italy too finds itself beyond the dreaded 7% barrier.

Will Greece be the catalyst to bring on this much needed response from the Central Banks? Or will Greece "muddle through" for however many weeks before it needs another bailout, and/or finally throws in the towel, while the global central banks do nothing? 

Find out on Sunday night.


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Sat, 06/16/2012 - 09:06 | 2531834 Aziz
Aziz's picture

Frankly I think the thing we really need is a collapse of the entire system and some kind of reset, not more central bank printing. More printing will just kick the can, and give society a chance to address underlying problems which most likely they will continue to ignore (falsely believing the money printing "fixed" the problem) resulting in an even bigger collapse down the line.

Sat, 06/16/2012 - 09:18 | 2531858 JustObserving
JustObserving's picture

They will not permit a total collapse of the system.  There may be war instead.

If a collapse is permitted to happen, the whole world may turn upside down and China may become the new dominant economic power.  Europe's living standards may fall by 50%.  War may be preferred to this option.

The Mayans look more prescient everyday.


Sat, 06/16/2012 - 09:51 | 2531910 kindape
kindape's picture

you are right they won't 'permit' a crash of whole system and that war would happen first. but there is ample room for unintended consequences and non-linear events from bad human decisions

you are very mistaken if you think everything implodes and somehow China ends up on top - they are critically linked at hip now to US/OECD. They are in very very bad shape resource/environment/credit wise. 


Europe living standards fall about 50%?  Yup. And USAs about same level, if we are lucky.


Mayans=BS. (but I agree the timing is gonna be about right)

Sat, 06/16/2012 - 10:18 | 2531960 flacon
flacon's picture

I saw Obama read this book, so I bought it and read it:


The Post American World ~ Fareed Zakaria


A rather lame book written by a die-hard Keynesian - but still it's good to know what lies they are injesting. 

Sat, 06/16/2012 - 11:58 | 2532174 francis_sawyer
francis_sawyer's picture

I'm too stupid to figure these things out on my own, so, would someone kindly explain to me how "war" will fix the problem & prevent western society from collapsing (as armchair QB-ed above)?...


Please do not hesitate to include steps & details along the process...

Sat, 06/16/2012 - 12:41 | 2532243 Things that go bump
Things that go bump's picture

It is a keynesian dream.  Everything gets broken.  Winner gets to fix it.  Loser gets to march to St. Petersberg in winter.  

Sat, 06/16/2012 - 13:19 | 2532326 markmotive
markmotive's picture

Wow - that lasted a week. The marginal returns on bailouts are shrinking dramatically.

And Spain has waay more to go. Real estate is 79% of total Spanish wealth and housing is expected to drop another 30%.


Sat, 06/16/2012 - 13:49 | 2532379 Divided States ...
Divided States of America's picture

War itself would cause a financial system collapse....but like the saying goes, "Never waste a good crisis", from the most 'high' jbag extraordinaire (Rahm Emanuel) once said. Yup, Iran will be the target.

Sat, 06/16/2012 - 14:29 | 2532436 francis_sawyer
francis_sawyer's picture


Iran is an idiots dream with regards to conquest...

The joos have been barking about 'taking out' Iran for more than 2 decades now (&, of course, by the AIPAC lobby, have managed to sell it as a US problem as well)... That's all it is... Rhetoric & Jawboning from a bunch of pussies...

All the while... Iran, Russia, & China are saying... "Go ahead... make my day"...


A bridge too far... francis_sawyer humbly counsels... DON'T GO THERE... Moreover ~ STFU...

Sat, 06/16/2012 - 14:58 | 2532478 AldousHuxley
AldousHuxley's picture

Iran is ex-empire...meaning they might be poor but their elites know how colonialism works. They will sell out to Russia or China against US. Russia and China will be happy to let oil rich country into their new empire building ambitions.


Largest holder of Spanish debt are Spaniards themselves followed by France.

Sat, 06/16/2012 - 15:09 | 2532495 Manthong
Manthong's picture

A step into the outer limits worked last time around..

Sat, 06/16/2012 - 16:11 | 2532591 AldousHuxley
AldousHuxley's picture

Argentina is where Spain gets her oil.


But bunch of German ex-Nazis went to Argentina. If Germany can gain control of Argentina, she no longer needs Spain.

Sat, 06/16/2012 - 15:14 | 2532497 ITrustMyGut
ITrustMyGut's picture

this may explain a genuine apathy or interest to ever do anything about any of this, FUku, Fiat, etc...

New Clif High ( 6/16 ) - fairly urgent. mp3. download it and listen.. 38 mins  ( top one )

or directly here....  It speaks to his reading and listening to this work....  far sight institute for their 2012 page which is also discussed here in a interview with Cory Brown on the same topic... go to 22 mins in whats important here.. is Cory Brown's group has published in a scientific journal.. a quality RV ( Remote Viewing ) experiment and Clif's work... independently.. arrives at validation of the same! yikes....


Sat, 06/16/2012 - 21:13 | 2532942 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

You know if that darn Koran did not prompt people to kill non-Koran following people them Joos would have no meaning.

Sat, 06/16/2012 - 13:43 | 2532369 francis_sawyer
francis_sawyer's picture

How many 'winners' of wars have there been since WW2 & how have those 'fixes' worked out?

How many winter marches have occurred?

Sat, 06/16/2012 - 15:08 | 2532493 emersonreturn
emersonreturn's picture

francis sawyer, while i agree with you there have been few winners since WW2, tibetans have suffered several winter marches, and i think china's war on tibet has secured for it a pivotal point of defense, 7 asian headwaters, as well as untold minerals. china's war and occupation of tibet has helped china immeasurably.

Sat, 06/16/2012 - 16:21 | 2532569 francis_sawyer
francis_sawyer's picture

On a global scale, Tibet is a 'skirmish'... I don't want to argue humanitarianism or individual plight... But it's the 'Gadsden Purchase' or the 'Milagro Beanfield War' as conflicts are concerned...

Instead ~ I'm talking to all the people here who are looking at WW3 as the ultimate solution to the banking collapse... While it may happen in the end, it will solve nothing... WW3 isn't going to start in Tibet...

Look ~ I'll go ahead and say it... OUTCOMES are not SOLUTIONS...

- Bolshevism (outcome) was not a 'solution' in the end... Who was behind that anyway?

- National Socialism (outcome) was not a 'solution' either... Who was behind that anyway?

In 1948... Israel achieved the 'outcome' of statehood... Has it been a 'solution'?... In 2008, Barack Obama was elected POTUS... Has that 'outcome' proved to be the 'solution' to cultural division?

Don't answer with your HOPES, answer with the truth...

Sat, 06/16/2012 - 16:30 | 2532619 AldousHuxley
AldousHuxley's picture

US pratices neo-colonialism. they realize wars are costly, so they try to settle matters through other methods first

  1. soft diplomacy influence peddling, honorary titles, export US culture and media, get foreign leaders trained in US schools.
  2. Money (American companies buying foreign resources and companies)
  3. CIA covert ops (kill democratically elected presidents and install puppet regime
  4. UN, sanctions, trade agreements (NAFTA fucked Mexican farmers)
  5. lastly, WAR.

So far, American companies and large stock holders have benefitted.

Indians speak English, drink coca cola, elect puppets, etc.

Chinese are revolting though.

Russians forever lost cause. Sadistic fucks still have nukes and lots of energy.

Sat, 06/16/2012 - 17:57 | 2532714 francis_sawyer
francis_sawyer's picture

1. "Soft diplomacy" works as long as some can be bribed by your bullshit... Whem Hilary Fucking Clinton becomes the interface for your "soft diplomacy", you're essentially fucked...

2. Money works as long as people believe in the paper hedgemony ponzi... After that, you're fucked...

3. CIA exists because they're the best drug runners, money launderers on the planet (save for the Vatican)... It has no function if 'society' collapses... Fuck ~ For that matter, it has no use now except for thugs to collect paychecks as long as there is still belief in the 'system'.

4. Fuck the UN... It's never been useful for anything...

5. The US has been about WAR & only WAR since 1913... War is the quickest way to get into debt... The private banking families have known this, & practiced this for over 200 years running... It took awhile, & several attempts, but finally they succeeded in infecting the US political & media fountains at the turn of the 20th century & it has been a downward spiral ever since...


Chinese don't buy into this shit... Russians don't buy into this shit... Iranians don't buy into this shit...

Therefore... HOUSTON ~ We have a problem...

Neither the US, nor it's Jew banking overlords have any power to stand up to that... It's all histrionics from this moment forward...

Sun, 06/17/2012 - 01:00 | 2533213 Joseph Jones
Joseph Jones's picture

Here, here! 

All drinks on me this Saturday night, in this poster's honor! 

Sat, 06/16/2012 - 17:51 | 2532715 francis_sawyer
francis_sawyer's picture


Sat, 06/16/2012 - 13:19 | 2532318 THX 1178
THX 1178's picture

Consider an economic depression-- What is the problem with it? Not enough jobs or too many people? The great depression was solved by killing 60+ million people in the industrialized world-- a large chunk of the population... Presently, unemployment is absolutely astronomical-- above the official number--, and corporate profits are nearing all time highs... so what does this mean??? It means They no longer need us.

Sat, 06/16/2012 - 16:52 | 2532652 AldousHuxley
AldousHuxley's picture

depression are bad for debtors who need to be able to roll over debt to finance operations.


US government/military is in debt to China. Depression means short on cash flow....Chinese /Russians would be able to buy American assets at firesale prices.


Also to elites, people = slaves = assets with monetary value. Kllling 60+ people means killing 60million slaves..suicide for a plantation. Their economy would collapse, less workers, less demand, lowered assets, their land values drop, their ranking in the world drops. Corporations need us.....not as workers, but as indebted consumers which most Americans are.

dumbass americans buying stupid shit....wait 50 years and their kids will be slaves under control of billionare russians and chinese. better make it into the investoment class real quick, because the bridge is going to get cut.



Sat, 06/16/2012 - 19:24 | 2532789 BigDuke6
BigDuke6's picture


i get the feeling you don't watch AMerican Idol much?

Sun, 06/17/2012 - 01:02 | 2533215 Joseph Jones
Joseph Jones's picture

Man you suckers are funny! 

Sat, 06/16/2012 - 13:24 | 2532332 crawldaddy
crawldaddy's picture

what does a loan shark do if you try to default?  he breaks your arm.  Same thing, but on a national scale.  If you dont pay, we mess you up and TAKE payment.

OR, if you owe someone a lot of money and you cant pay, but you can beat them up, You beat them up and suddenly that debt goes away.


The great reset happens in a multitude of ways, but first one party has to be MADE to accept it.

Sat, 06/16/2012 - 13:52 | 2532381 francis_sawyer
francis_sawyer's picture

In a loan sharking world, if your arm is broken, it hurts, but the lender is still out his money... If he gets tired of breaking your arm and kills you instead, you're dead & he's still out his money...

On a national scale, the 'loan sharks' aren't sovereigns, they're bankers (furthermore, they're not lending real assets, they're lending debt counterfeitted out of thin air)... These bankers can't break your arm or kill you because they're just pussified hook nosed dweebs who think they're doing God's work... So they have to HOPE they can bribe politicians to fund a military to do the job in absentia...

As in small scale 'loan sharking', the FEAR FACTOR lasts for awhile... Then it doesn't anymore...

Sat, 06/16/2012 - 17:53 | 2532718 AldousHuxley
AldousHuxley's picture

loan sharks are not bankrupted American bankers.

they are chinese state sponsored (meaning backed with military) banks.


China threatened US to leave dollar hegemony by switching to Euro like arab oil money. US said ok ok, but now they got bankers to attack EU's weakest links (greece, spain, etc.)  and break it up so China has no where to go in the future. Yuan as global currency is still 100 years away...they need to take over share of GDP first.


that's why goldman sachs and banksters do not get indicted. Military/Government need banksters to pull the same tricks on foreign investors and foreign debt.






Sat, 06/16/2012 - 20:02 | 2532851 HurricaneSeason
HurricaneSeason's picture

So the military and government are in charge?  I thought goldman sachs tells them when they can have a war or when the banks need $700 billion or else they'll be 20% interest and martial law. Didn't the outgoing president and the incoming president and congress all get that memo at the same time? Paper covers rock and I think military covers congress most of the time unless there's a banker with better bullshit.

Sat, 06/16/2012 - 20:36 | 2532899 francis_sawyer
francis_sawyer's picture

The 'people' are in charge & will always be in charge as long as they have the balls to execute that prerogative...

Instead ~ we get long periods of pussified zombies who'd rather sell out their their share because someone said that they didn't have to shovel anymore if they would oblige to spy on & rat on dissidents in the chain gang.. 

Sat, 06/16/2012 - 19:36 | 2532816 55 men
55 men's picture

I agree with you on the mayan b.s., , i believe the people in control will use it to there benefit. Most of the population thinks the world is going to end that day and if any thing that has some discomfort with the financial industry the people will believe it has to do with the prophecy and continue to stay complacent . Just a thought ....

Sat, 06/16/2012 - 20:36 | 2532898 TorchFire
TorchFire's picture

Wheels keep turning
Something's burning
Don't like it but I guess I'm learning

Shock! - watch the monkey get hurt, monkey

Sat, 06/16/2012 - 09:56 | 2531920 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I think there is a legitimate conspiracy at play here; with all the focus on the global economic crisis (which could easily be solved if governments would become more centralized, more cooperative, and more ready to inject liquidity) everyone has taken their eye off the real economic disaster caused buy greedy capitalists exploitation: the environment. Nothing, nothing, regarding the worlds financial system will matter if there isn't clean air to breath, and good soil with which to rear crops, or good habitat for polar bears. Amsterdam may well be bellow sea level in a few years.

Therefore I propose robust new measures. Everyone using products that involve the burning of fossil fuels at all levels of the supply chain must pay a proportionate tax. Society MUST recognize the damage being done. Using fossil fuels should be equated to murder - the destruction of one's society. The added benefit of this tax is that the extra revenue could be used to help top lending institutions recapitalize and restart a period of economic growth.

Sat, 06/16/2012 - 10:09 | 2531943 derek_vineyard
derek_vineyard's picture

collapse?????? the powers that be will do anything and everything to prevent that including ZIRP to infinity, unlimited money supply, shrinking wages/job security fears and record corporate profits.  i'm not making this shit up....they will do it.

Sat, 06/16/2012 - 10:18 | 2531958 holdbuysell
holdbuysell's picture

Weimar Germany did everything in its power to prevent a collapse too.

However, when the herd changes direction, (e.g. loses, faith, confidence and/or panics), it can't be stopped.

It only takes a small percentage of the herd to change direction with conviction and the rest will follow; that's the tipping point.

Sat, 06/16/2012 - 11:25 | 2532077 Captain Benny
Captain Benny's picture

Bingo - And that is why the MSM is blacking out any deep discussions about what is going on in Europe and instead focusing on the wonderful stock market "rally" hidden in some very volatile equity markets.  Not a peep out of the media about bond yields and how bad they are for Spain, Italy, and Portugal.  Not a word about the "bailout" having Italy borrow at nearly 7% while loaning out at 3% to Spain....  Not a peep about anything that makes a damn other than the equity market rally.

I think we're about to see some drama in Europe escalate but when it settles, the US Treasury market will be so crowded that there will be a rush to the theatre's exits... leaving behind all the MOMOs holding high yielding treasuries at a loss.  Tough shit, but this Euro contagion is coming home to roost pretty soon.

Sat, 06/16/2012 - 11:35 | 2532110 Manthong
Manthong's picture

:) I was typing as you posted.

Sat, 06/16/2012 - 11:33 | 2532103 Manthong
Manthong's picture

Wait till the larger audience of the big show discovers that the fire exits are jammed and the pyrotechnics have set the whole theater ablaze,

Sat, 06/16/2012 - 16:35 | 2532625 SaveTheBales
SaveTheBales's picture

No problem.  Hand me a politician.  I'll have this fire beat out in no time.

Sat, 06/16/2012 - 13:26 | 2532341 crawldaddy
crawldaddy's picture

Weimar republic also collapsed mainly due to France marching their army in to collect payment. Germany shut down its economy rather than pay. People seem to forget this fact.

Sat, 06/16/2012 - 16:02 | 2532579 francis_sawyer
francis_sawyer's picture

 "France marching their army in to collect payment"


HAHAHAHAHAHA!... Mistaken for a surrender...

Sun, 06/17/2012 - 09:45 | 2533640 Analyse2
Analyse2's picture

Racist joke

Sat, 06/16/2012 - 10:40 | 2531986 Bansters-in-my-...
Bansters-in-my- feces's picture

Hey MaxilopeZ FuckTard....

Speaking of fossil fuels,you ever see how much chemicals (chemtrails) is sprayed on us evey day...????

I think those Jet tankers are burning said "fossil fuels"

Maybe you could convince the Terrorist (goverments) to stop using so much fossil fuel  to fly the Jets that carry the chemtrails,cause there is one hell of alot of jets dumping this shit on me EVERY DAY....


Sun, 06/17/2012 - 11:29 | 2533878 Bansters-in-my-...
Bansters-in-my- feces's picture

I see the 11 users that gave red arrows to my chemtrail comment never go outside much,don't look up when they do,or live in a big city where you can't see through the smog anyways OR are in complete denial....


Wake up .and Look up...... wayyyyy up............

Sat, 06/16/2012 - 11:38 | 2532120 neidermeyer
neidermeyer's picture

Fossil fuels equal murder?? Put down the crack pipe ... todays cars have exhaust so clean that it is often less polluted than the air ingested by the motor ... same for most things that use gaseous fuels... even the "worst" .. soft coal can be cleaned up to the point where no reasonable person could object...

You want no fossil fuels?? You can eat your pork chops raw .. I want mine grilled ...

Sat, 06/16/2012 - 13:13 | 2532313 Ned Zeppelin
Ned Zeppelin's picture

Please post the video of youself with an exhaust pipe in your mouth breathing the clean air.

Sat, 06/16/2012 - 12:19 | 2532222 skipjack
skipjack's picture

Did I really waste 10 seconds reading this tripe ?  Or did you just forget the /sarc tag ?


Cluestick - look up the phrase "you can't solve a solvency problem with liquidity".


Retard.  Cleaner air will do nothing for you if there is no food to eat or water to drink or a place to shelter out of the elements, all of which you will be deprived of if the banksters keep on with more globalization and liquidity "injections".

Sat, 06/16/2012 - 14:04 | 2532392 dearth vader
dearth vader's picture

>> Amsterdam may well be bellow sea level in a few years. <<

Well, that's no news. It has been for an odd 700 years, already.

No need to bellow.

Sat, 06/16/2012 - 15:50 | 2532563 Umh
Umh's picture

Did you ever hear about the Dutch boy and the dike?

Sat, 06/16/2012 - 10:38 | 2531982 The Monkey
The Monkey's picture

Central banks are fixing to find out the downside of risk suppression.

We'll soon find out if they have the balls to inject another dose of pain meds, distorting again the signals sent by the market. At this point we have no idea how many broken bones our over-medicated quarterback is playing with, but the clock is ticking.

Sat, 06/16/2012 - 12:20 | 2532225 tarsubil
tarsubil's picture

You know I think they are distorting things because I swear the QB used to have two arms.

Sat, 06/16/2012 - 13:11 | 2532309 The Monkey
The Monkey's picture

After Tuesday, the quarterback may have three arms and a lap full of drool.

Sat, 06/16/2012 - 12:57 | 2532287 Element
Element's picture

Can we discuss the alphabet-shape of the recovery yet?

That was the best bit last time.

Sat, 06/16/2012 - 11:09 | 2532028 ElvisDog
ElvisDog's picture

A war against who? France vs Germany? Spain vs Germany? The very concept is laughable. There are no parallels to 1914, because in 1914 every European country had millions of young men in uniform or on reserve and detailed battle plans, train schedules, etc. all ready to go. In 2012, because the European countries have relied on the U.S. for so long to provide their military shield the Euro armies have shriveled into almost nothing. In the recent undeclared war against Libya, NATO air forces could only keep their bombing of Gadaffi up for a few days before they ran out of bombs. A Euro-wide war to resolve the economic imbalances is just stupid.


Sat, 06/16/2012 - 11:34 | 2532109 bsdetector
bsdetector's picture

It doesn't really matter who is fighting who. War in these times would simply be a distraction from all current imbalances. Government edicts will alleviate those imbalances for a while (remember government cheese) and then after a good and exhausting fight we will all enjoy a reset. The elites will still be in control and the world will go on. But the pain and the suffering will probably be terrible.

Sat, 06/16/2012 - 11:42 | 2532132 neidermeyer
neidermeyer's picture

Oceania , Eastasia and Eurasia of course... and the alliances will be similar to the euro nonsense we've been living ... just a big game for them...

Sat, 06/16/2012 - 11:45 | 2532140 ElvisDog
ElvisDog's picture

A modern-day France vs Germany war would be like the Battle of Agincourt where the 60,000 man French army would square off against 14,000 Germans. They could hold the entire war on a muddy battlefield 1-2 miles wide. That is (almost) literally how small European armed forces have become.

Sat, 06/16/2012 - 16:08 | 2532585 Umh
Umh's picture

With weapons having ranges of hundreds and even thousands of miles why would they stand so close together?

Sat, 06/16/2012 - 14:49 | 2532462 UgglyBetty
UgglyBetty's picture


Sat, 06/16/2012 - 16:06 | 2532583 Umh
Umh's picture

War is stupid. I'll agree with that one. Will people still do one? I think they will especially one they are sure they will win. I'm sure  it will seem like it comes out of nowhere, but there will be reasons. Even Pearl Harbor didn't really come from out of the blue. People said they didn't see it coming and that no one could have seen it coming; does that sound familiar to you, it does to me.

Sat, 06/16/2012 - 15:40 | 2532535 uno
uno's picture


Deutsche Bank ie German Government like JPM is US's is putting this out for Greek consumption since they want the same deal Spain got, they also want to warn any other countries that more austerity is coming to Spain and the other PIIGS as well as France's new government.


Sat, 06/16/2012 - 09:31 | 2531876 GMadScientist
GMadScientist's picture

It's difficult to reason with junkies about the relative merits of different types of withdrawl.

Sat, 06/16/2012 - 11:44 | 2532135 neidermeyer
neidermeyer's picture

I'm waiting for Putin to join in on the games ... see what he can extract from western Europe...

Sat, 06/16/2012 - 09:49 | 2531907 Gully Foyle
Gully Foyle's picture

Treasurers Face $46 Trillion Financing Cliff

A massive amount of global corporate debt matures in the next four years, and it’s causing treasurers to refocus their efforts on securing access to credit.

Show me the money, corporate treasurers seem to be saying. Refinancing was the issue that dominated the treasury agenda above all others during the past year at more than 100 companies worldwide, according to a new survey by Ernst & Young. Just under 40% of the treasurers surveyed mentioned refinancing as an issue, with more than half of them (27% of the total) citing it as the top concern.

Given the state of banks’ balance sheets and their attempts to scale down and derisk their exposures, availability of funding is certain to be an ongoing problem for companies. As ever, treasurers say funding is easy to get if the corporate balance sheet is in good shape — or in other words, banks will gladly lend money to businesses that don’t need it.

Given that, companies are looking to diversify funding sources, E&Y says, both by increasing the number of counterparties they deal with and tapping into European and U.S. capital markets more during the next couple of years.

A measure of the scale of the refinancing problem is revealed in a recent report by Standard & Poor’s Ratings Services. S&P suggests there is as much as a $46 trillion “credit overhang” — the amount of money corporates will need to raise between 2012 and 2016 to refinance their soon-to-mature debts and to fund capital expenditure and working capital growth.

The combination of bank balance-sheet restructuring, a euro zone crisis, a softening U.S. recovery, and the prospect of slower growth in China could make for what S&P calls “a perfect storm” in credit markets. S&P’s working assumption is that “global banks and debt capital markets will largely be able to continue to provide the majority of liquidity to allow most corporate issuers to proactively manage their forthcoming refinancings.” However, S&P warns, “the balance is fragile” and there is the threat of financing disruptions “even for borrowers that are not highly leveraged.”

New money requirements from 2012 to 2016 could be as much as $2.3 trillion in the euro area and the United Kingdom, $3 trillion in the United States, almost $10 trillion in China, and $1 trillion in Japan. (Those numbers assume corporate debt grows at 1.2 times the rate of GDP over the next five years.)

Added to this are estimated refinancing needs of $8.6 trillion in the euro area and the United Kingdom, $8.6 trillion in the United States, $7 trillion in China, and $5.8 trillion in Japan.

While many companies have huge piles of spare cash — some €745 billion ($931 billion) in Europe, the Middle East, and Africa as of 2010, S&P estimates — they are not expected to use those cash reserves to repay debt.

Of late, some European companies have been turning to U.S. markets for financing, according to statistics published by Leveraged Commentary & Data, a division of S&P Capital IQ. The first four months of 2012 saw European borrowers tap the U.S. leveraged loan market to the tune of €7.3 billion ($9.1 billion), with another €11.4 billion ($14.3 billion) raised in the high-yield market. The combined total is more than double the amount raised by European companies in the United States in the same period of 2011. In fact, it’s more than the €15.7 billion ($19.6 billion) raised by Europeans in these markets for all of 2011.

Sat, 06/16/2012 - 19:12 | 2532770 James-Morrison
James-Morrison's picture

Doen't Ctrl+P take care of the refinance problem?

Sat, 06/16/2012 - 19:32 | 2532805 BigDuke6
BigDuke6's picture

it would be nice to see MDB's response to this

Sat, 06/16/2012 - 10:27 | 2531970 Eireann go Brach
Eireann go Brach's picture

Citi and Douchebank, 2 banks that will go up in flames when the market crashes!

Sat, 06/16/2012 - 10:36 | 2531979 ISEEIT
ISEEIT's picture

'Government' is a cancer. What these crashes should teach humanity is that as difficult as a truly free market might be...All attempts to circumvent the natural state of individual Liberty will fail.

Every single time. I sincerely respect that most ZH'ers have contempt for organized religion and so intend no offense when I say that the entire world situation right now reminds me of the biblical story of the tower of Babel.

Sat, 06/16/2012 - 10:43 | 2531988 Calmyourself
Calmyourself's picture

Why apologize to the minority without the developed consciousness necessary to acknowledge a supreme being?  Ha, yep you just sprung up from blind chance, lol...  By the way I just threw some iron ore in my backyard, waiting for an E class to grow out of it..

Sat, 06/16/2012 - 11:17 | 2532050 donsluck
donsluck's picture

God is the apex of representational thought. Just as our interpretation of what is cold (35 deg in winter, 69 deg if I'm bored), God is our interpretation of the universe, personalized by our level of ego into Great Spirit, Jesus or whatever. God does not actually exist.

Sat, 06/16/2012 - 16:14 | 2532599 Umh
Umh's picture

People who only do the right thing to avoid being caught and punished need a god. Unfortunately there are a lot of those people. So, let's just let them think they might get caught and punished, ok?

Sat, 06/16/2012 - 19:58 | 2532841 TrulyBelieving
TrulyBelieving's picture

donsluck says that God does not actually exist.  If you have proof-positive evidence of the origins of matter your statement would be a fact. If you have no proof-positive evidence of the origins of matter, then your statement requires as much faith to believe as faith in a Creator God. So you have faith?

Sat, 06/16/2012 - 19:11 | 2532768 sadmamapatriot
sadmamapatriot's picture

On a long enough timeline, everyone will know God and the devil exist. And He will not be mocked forever. Interesting how some people are capable of believing in sin but not in God. 

Sat, 06/16/2012 - 11:05 | 2532015 q99x2
q99x2's picture

This is how the banksters collapse nations. They did this with Greece, Argentina and next Spain. While this is taking place (in the background of the chaos) they will be passing laws to give up national rights whether through treaty or by slipping in a technocrat. Nations can't win without revolution. The banksters are deadly and have been murdering people for centuries. People want to believe they will be able to maintain life as it has been. They do not realize that they are in a war until it is too late.

Continuum. But one that results in death and destruction every time.

Germany can pull out and stop it. It might.

The US is under heavy attack at this time.



Sat, 06/16/2012 - 11:09 | 2532027 Billy Shears
Billy Shears's picture

Fucking madness:




Sat, 06/16/2012 - 13:31 | 2532345 Jumbotron
Jumbotron's picture

Frankly I think the thing we really need is a collapse of the entire system and some kind of reset, not more central bank printing.

Do you really think the elite will not do anything possible including enslaving the world to preserve and protect the concept and practice of central banking since the formation of the Bank of Englans over 300 years ago?

Collapse will just let the elites buy up everything they don't have already for even cheaper and charge more rents. 

You don't want central banking....unfortunately it will take armed rebellion just like our founding fathers.  But don't expect that to last long either....look how short a time it was after the Revolution that Alexander Hamiltion was proposing and pushed through the First Bank of the United States.

Sat, 06/16/2012 - 15:42 | 2532554 TraderTimm
TraderTimm's picture

I used to agree with the total collapse scenario - but honestly all I really want is accountability, and the people who are gaming the system to end up behind bars or broke.

In the end, we don't want to become something radically different - such as a pure agrarian society, for example - I think most would just prefer the parasites to be expunged, while preserving the way of life they are accustomed to.

That's really the best that can be hoped for, I think.

Sat, 06/16/2012 - 19:24 | 2532788 Stock Tips Inve...
Stock Tips Investment's picture

This is probably the best solution to a problem size is unknown rel. I think the Europeans are trying to delay the strike, hoping the world will help (or share with them the crisis) or that these partial solutions allow the landing a little softer. My impression is that this crisis will grow each week until puedn not handle it.

Sat, 06/16/2012 - 20:01 | 2532848 cranky-old-geezer
cranky-old-geezer's picture



Frankly I think the thing we really need is a collapse of the entire system and some kind of reset, not more central bank printing.

What we've been seeing since '08 is a banker's dream, more and more debt piling up, making bankers more and more money.

I believe bankers are deliberately destroying economies so government tax revenues fall and they have to borrow more.  It would explain the massive growth of sovereign debt since '08, which bankers love, more debt means more profits.

But they're running into a snag now.  All that debt paper is beginning to lose its market value as governments reach a point where they can't service their debt.

So central banks respond by dropping interest rates to zero, telling all the other banks do not lend money into the economy, lend only to governments, so we can keep inflation to a reasonable level.

So economies collapse further, further reducing government tax revenues, forcing governments to borrow even more money, which bankers just love, but governments are already at a point where they can't service their debt, and the market knows it, so the value of all that new debt paper drops drastically.

Sovereign debt should have junk rating, not AAA rating, because it'll never be paid off, just rolled over endlessly.

Bankers aren't to blame, they're just filling a demand in the market. 

Governments are to blame for not controlling their spending and piling up enormous unpayable debt.

Economies and people at large are the losers in this government debt ponzi scheme.  Money is being sucked out of economies and out of people's pockets by heavy taxes and devaluing currency (from all the currency printing to fund more government debt).

Bankers aren't looting the people, governments are.  Governments are taxing away and borrowing away all the people's wealth.

Bankers just facilitate it ...and make a cut for themselves.

It's not bankers' job to impose fiscal discipline, it's governments' job to do that.  We shouldn't blame Bernanke, we should blame congress.  We shouldn't blame Draghi and the ECB, we should blame the greek government and spanish government and italian government.

Where will it all end?  Currency collapse, from endless printing to fund endless government debt.

Sat, 06/16/2012 - 20:31 | 2532891 RiverRoad
RiverRoad's picture

+ 100

Sat, 06/16/2012 - 22:30 | 2533036 sadmamapatriot
sadmamapatriot's picture

I think you are right.

Sat, 06/16/2012 - 09:06 | 2531835 Mr. Fix
Mr. Fix's picture

This will be the most expected crach in history.

Sat, 06/16/2012 - 09:14 | 2531850 GMadScientist
GMadScientist's picture

Somehow, being in the elevator descending at 9.8m/s^2 doesn't make the crash more avoidable.

Sat, 06/16/2012 - 14:18 | 2532424 Overfed
Overfed's picture

That's 32ft./sec.^2. Kindly refrain from using the metric system, please. ;-)

Sat, 06/16/2012 - 16:19 | 2532606 Umh
Umh's picture

Another failure of the American educational system. Instead of teaching students how to use the metric system which has an elapsed time of maybe an hour they fixated on teaching conversion methods which I'm sad to say is beyong the skill level of a significant number of students.

Sat, 06/16/2012 - 20:25 | 2532882 Marginal Call
Marginal Call's picture

No worries, we learned metric and conversions in the drug war.  Any idiot can do it. 

Sun, 06/17/2012 - 02:28 | 2533286 John_Coltrane
John_Coltrane's picture

I would like to point out that of the four major forces in the universe gravity is the weakest.  Gravity doesn't kill you in a fall-the Pauli exclusion principal does.

Sat, 06/16/2012 - 09:30 | 2531875 falak pema
falak pema's picture

well at least Sarajevo 1914 taught us something; no surprises ! 

Sat, 06/16/2012 - 11:22 | 2532064 ElvisDog
ElvisDog's picture

In 1914, European armies could mobilize millions of men in a matter of days. Detailed campaign plans were already drawn up. Today, it would take years for the same countries to gear up for a large scale war. So you are saying that the modern-day 140,000 person French army (including civilian personnel) is going to square off against the 73,000 German army? Give me a break.

Sat, 06/16/2012 - 11:54 | 2532171 augustusgloop
augustusgloop's picture

Wrong armies--French will just have to live with beer bellied Swabians driving up to their new Chateaux in their Daimler sedans. Francois, mehr wein bitte! 

Worry about the 2.3 million man active / 4.6 mil total  Chinese army  or the 1 million strong Russians 

Sat, 06/16/2012 - 12:11 | 2532202 ElvisDog
ElvisDog's picture

Umm, why would the Chinese or Russian armies get pulled into a Euro conflict? That's a long way for the Chinese army to drive/march. It's not clear to me which side Russia would support. Germany, France, Belgium, Greece? I was talking specifically Euroland, not the madness that Hillary et al. are trying to pull in Syria.

Sat, 06/16/2012 - 16:21 | 2532609 Umh
Umh's picture

Have you ever looked at how close China and Russia are to Iran?

Sat, 06/16/2012 - 19:16 | 2532776 James-Morrison
James-Morrison's picture

The west has never been this weak. 

It's the unexpected that always surprises the most people.

A collapse at this time is not that far-fetched. 

Sun, 06/17/2012 - 00:27 | 2533177 cranky-old-geezer
cranky-old-geezer's picture



Umm, why would the Chinese or Russian armies get pulled into a Euro conflict?

They won't.  They don't care what goes on in Europe.  They view it as just a bunch of squabbling children ...which it is.

All they care about is oil. Iran oil for the present, since Iran is a significant oil supplier to China.  Mess with their Iran oil supply, and the entire asian alliance will strike back at whomever messes with it.

And by the way, it will be thermonuclear, since Russia, and China, and India, and Pakistan all have nuclear weapons, together way outgunning America and Israel. 

Since it is likely America (and Israel) will be the ones messing with China's Iran oil supply, it is likely Israel would just flat be turned to glass, and American cities would suffer heavy thermonuclear damage.

People need to realize, China isn't going to tolerate their oil supplies being cut off, and they have formed an alliance of several nuclear powers, including the biggest nuclear power on the planet, Russia, in anticipation of America attempting to do just that.

This government isn't interested in Iran's alleged nuclear capability.  They know Iran has no such capability.

That's just a cover story for trying to go into Iran and cut off China's oil supply.

...and it absolutely will get America nuked.

Sun, 06/17/2012 - 00:47 | 2533197 Hulk
Hulk's picture

Nobody is going to nuke us COG, our subs alone could lay waste to Russia and China.

Nukes are off the table, at least as far as russia, china and the us goes...

Sun, 06/17/2012 - 02:42 | 2533295 cranky-old-geezer
cranky-old-geezer's picture



Dream on.

Sat, 06/16/2012 - 10:27 | 2531972 holdbuysell
holdbuysell's picture the crowd watching a burning, collapsing building and just standing there. When a few start running/doing something, the herd will follow. The tipping point has yet to be reached.

From ZH:

Eidesis Capital's presentation on Systemic Insurance spells out clearly that "Everyone knows this but only few are willing to accept the implications; fewer still are willing to act."

Zero Hedge goes on to say in its commentary: "But more than anything, the one biggest giveaway is near endless complacency: the more the pros exhibit it, the closer we are..."

Sat, 06/16/2012 - 09:08 | 2531839 Segestan
Segestan's picture

They don't know shit. They go from one idea to the next. In others words the powers that be clueless.

Sat, 06/16/2012 - 09:15 | 2531852 t_kAyk
t_kAyk's picture

For the most part I believe they know what they are doing.  This big circle jerk is just part of the show, keeping us on our toes so they can extract as much as possible before people really start taking to the streets. 

Sat, 06/16/2012 - 10:12 | 2531947 lakecity55
lakecity55's picture

Financial Mayhem. Blowbama gets on TV with TOTUS:

"There has, uh, never, uh, been an emergency like, uh, this one, American Citizens. As a result, we have to take all your 401, bank accounts, and equities accounts. In return, you get some of these New Obama Bonds, with my picture on them! Each denomination will have me in a heroic pose as I save the world!

After 50 years, you can cash them in for the face amount!"

Sat, 06/16/2012 - 16:27 | 2532613 Umh
Umh's picture

I've never heard a better reason to buy something with my money!

Sat, 06/16/2012 - 10:18 | 2531959 aleph0
aleph0's picture

"I believe they know what they are doing"


... & Greg Palast seems to know too :

Sat, 06/16/2012 - 19:08 | 2532762 RockyRacoon
RockyRacoon's picture

Oh, that's so 2001. 

Sat, 06/16/2012 - 10:03 | 2531931 decon
decon's picture

I don't think they're clueless.  The battle was lost a long time ago and these are all just rear guard actions they're cobbling together on the fly.

These politicians and technocrats are like water, they always take the path of least resistance.  There is no long term plan or strategy.

Sat, 06/16/2012 - 19:21 | 2532783 sadmamapatriot
sadmamapatriot's picture

I have been thinking about this a lot. It is tempting to think there is a big conspiracy and there are certainly those who are conspiring against us. But seriously, how competent are these centralized masterminds? We have never seen centralized planners before to be competent. Why would there now be a secret central planner that magically is? I think they are trying to control us and manipulate us for the furtherance of their grand schemes but ultimately they will get sucked in and defeated by their own failed ambitions. Remember, it is was just a little scared old man behind the green curtain. That is not to say they won't fight like hell to stay on top but they have no guarantee of success.

Of course this might be heresy for many ZH'ers. So, explain it to me. How are these secret central planners more competent than any who have gone before?

Sun, 06/17/2012 - 20:00 | 2535108 Dr. Sandi
Dr. Sandi's picture

I think the question of competency hinges on what, exactly, they're actually supposed to be doing.

If they're supposed to be helping to save the world economy, then no, competency is seriously lacking.

If they're supposed to be draining all the remaining wealth from the system into dark pools while leaving a tarp of worthless paper to cover the hole, then I see a very high level of competency.

Sat, 06/16/2012 - 09:12 | 2531847 GMadScientist
GMadScientist's picture

Price Shock maybe. Morons.

Sat, 06/16/2012 - 09:12 | 2531848 Jack Sheet
Jack Sheet's picture

Now what was Deutsche Bank's derivatives exposure again ( in tens of trillions of €)? They are f***ed without the ECB teats

Sat, 06/16/2012 - 09:17 | 2531857 Inthemix96
Inthemix96's picture

What we fucking need, is to stop fucking gibber jabbering on about the fucking shit we face and do something about it.

That takes balls brothers, and since we are all internet tough guys, it wont be any of us eh?

Prepare accordingly bitchezs.  And here cameron, fuck you sideways you fucking cunt.

Sat, 06/16/2012 - 09:23 | 2531866 williambanzai7
williambanzai7's picture

Balls Brothers, isn't that a swillery?

Sat, 06/16/2012 - 09:43 | 2531897 Chaffinch
Chaffinch's picture

Welcome to Balls Brothers!

We have a host of fine bars and restaurants for you to explore and enjoy in the City of London and the West End.

Our Balls Brothers and City Bars provide the perfect place for lunch or after work drinks while our iconic Gows Oyster Restaurant and bar has been serving the best meals in the City for over 100 years!

Please click on the links opposite to find a venue that suits your requirements. All our bars take bookings from tables of two to private venue hires at the weekend.

To be kept right up to date with special offers and VIP invites to our new openings, please join our growing following on Twitter or Facebook.

Facebook  @BallsBrothers

Sat, 06/16/2012 - 10:13 | 2531949 derek_vineyard
derek_vineyard's picture

overuse of profanity

but balls brothers is fucking funny

Sat, 06/16/2012 - 10:16 | 2531955 AlaricBalth
AlaricBalth's picture

Junked you just for having a Facebook account.

Sat, 06/16/2012 - 14:06 | 2532406 Chaffinch
Chaffinch's picture

I haven't got a Facebook account - that was cut and pasted from Balls Brothers website - junk them!

Sat, 06/16/2012 - 15:35 | 2532545 AlaricBalth
AlaricBalth's picture

Junked you for being defensive. Lighten up, have fun with it.
Million Dollar Bonus and MaxiLopez consider getting junked a badge of honor. All the best. AB

Sat, 06/16/2012 - 14:58 | 2532479 Chaffinch
Chaffinch's picture

I guess this is what they call 'friendly fire' huh?
Go ahead, junk away...

Sat, 06/16/2012 - 13:14 | 2532314 LULZBank
LULZBank's picture

Dont be talkin 'bout balls and actions. Just stack the PMs and cuss out whoever you think is responsible for your misery.

Sat, 06/16/2012 - 09:20 | 2531861 bigwavedave
bigwavedave's picture

---This weekend, everyone's attention will be on the Greek elections, however it is Spain that has now become the "fulcrum security" of Europe. As such, events in Greece are merely a catalyst that will set off a chain of events that will have an impact not only on Spain, but on all of Europe, and thus, the world. And would be the end of Deutsche Bank and of course my crappy parasitic job.


Sat, 06/16/2012 - 09:21 | 2531864 williambanzai7
williambanzai7's picture

It is amazing how many words are needed by these banster geniuses to describe what can be distilled into a few words: lost trust and zero confidence.

Sat, 06/16/2012 - 09:32 | 2531873 falak pema
falak pema's picture

I'm sure a clever picture would solve that verbiage issue : Lost thrust and zero penetration/gratification. 

Sat, 06/16/2012 - 09:34 | 2531881 Zero Govt
Zero Govt's picture

what time zone are you in Banzai?

unusual you're joining the Euro ZH'ers here or are you just up bright and early!

Sat, 06/16/2012 - 10:22 | 2531964 derek_vineyard
derek_vineyard's picture

i think he partied all night with LiLo

Sat, 06/16/2012 - 11:00 | 2532010 AssFire
AssFire's picture

falak pema

What you described sounds like a dog fucking air.

I think that pretty well describes the recapitalization effort as a whole.

It is a dry hump.

Sat, 06/16/2012 - 12:06 | 2532192 falak pema
falak pema's picture

At least the dog has a cat to fall back on or a bone to chew out his boner...these guys are into dry humping a tornado. I like that picture! Bernanke riding a tornado, a twister,  like that guy on his bomb in Dr Strangelove! 

Sat, 06/16/2012 - 09:42 | 2531896 Tao 4 the Show
Tao 4 the Show's picture

Yes, but even smelly brews served up by fake Shamans are more desirable by most people than the truth. MF Global was barely an hors d'oeuvre.

Sat, 06/16/2012 - 09:51 | 2531906 Zero Govt
Zero Govt's picture

MF Global to be fair was an after-shock 

2008 with over-leveraged gambling junkie bankers going bust was a forerunner for MFG

and here we are again this week with the British and European banking (gambling) systems being bailed out yet again ..if only Corzine had timed his collapse to this month he might have got a bailout too as his grounds are identical in merit 

Sat, 06/16/2012 - 10:38 | 2531981 Unbezahlbar
Unbezahlbar's picture

Banker Bonuses and commissions and Kickbacks on each $100 billion sovereign bailout?

Anyone know this amount? Any time a few Billions moves a handful of bankers must grab Millions out of the stream of that transaction...the flow of money.    Anyone know who grabs it?   Amounts?  That would be news.

Sat, 06/16/2012 - 15:29 | 2532532 walküre
walküre's picture

Yes. That is why the Anglo-American Banking cabal wants Europe to "FIX" itself. The bonds are issued under English Law.

More printing means higher bonuses and more fees for these guys in The City.

Just pull the plug and fuck the whole lot. Let 'em all squirm and weazel until they get squashed under the boot.

Sat, 06/16/2012 - 09:45 | 2531869 Zero Govt
Zero Govt's picture

not sure where the "if" is in the ECB taking action

maybe this Deutsche Bank report was drafted before yesterday but Draghi stated yesterday he would provide (print) whatever is needed to support the European banks... by implication that would suggest sovereigns too yes/no?

so German Govt approval must already have been granted to the ECB for a printing orgy (Merkals stern fiscal discipline mask has slipped, oops!)

is this Deutsche Bank smoke and mirrors or am i missing something?!!

Sat, 06/16/2012 - 09:29 | 2531872 Newsboy
Newsboy's picture

Collapse for a decade, then the reset takes a decade more. That's what history says. Human patterns change in this fashion. The depths of despair must be reached by the majority. There are always a few who manipulate this, and a few others who see past and try to bypass it.

We might be that last group, if we're lucky and noble and stuff.

Sat, 06/16/2012 - 09:29 | 2531874 solidus
solidus's picture

Wait, help me to understand this.  We need a market crash to provoke a "liquidity response" so that the market can go higher?

Sat, 06/16/2012 - 09:46 | 2531901 Dead Canary
Dead Canary's picture

Crazy stuff, huh.

Sat, 06/16/2012 - 09:48 | 2531905 Spastica Rex
Spastica Rex's picture


Hope that helped.

Sat, 06/16/2012 - 09:52 | 2531911 nmewn
nmewn's picture

Yes, its the latest in algorithmic moneterist theory and whackademics world wide have approved it as a long lasting and viable wealth generator for all.

Of course the price for this "running in place model" is the destruction of the very currency in which you supposedly make a profit...but hey, they're very proud of it and seem quite pleased with the results so

Sat, 06/16/2012 - 09:58 | 2531922 Spastica Rex
Spastica Rex's picture

Perpetual motion machines everywhere. The global power concentration effort is lifting itself up by its bootstraps.

Sat, 06/16/2012 - 10:13 | 2531948 nmewn
nmewn's picture

The Levitating their next trick, they'll pull themselves out of their own hats!

Sat, 06/16/2012 - 10:06 | 2531937 lakecity55
lakecity55's picture

Yes. (Bwahahahha- evil laugh from "reptilians").

Sat, 06/16/2012 - 10:32 | 2531975 derek_vineyard
derek_vineyard's picture

no longer need the crash.....just bring on the liquidity repsonse

Sat, 06/16/2012 - 12:29 | 2532236 Turin Turambar
Turin Turambar's picture

A "controlled" crash will give the central bankers the political cover to make an even larger power grab.  When things are going to hell in a handbasket, the masses will coalesce around just about anybody with a solution - real or imagined, and they don't have to be in the majority.  Many times it's the most organized minority.  This is exactly how Hitler came to power, and there are lefties all around salivating for a crisis, so they can take a shot at seizing control.

Sat, 06/16/2012 - 15:36 | 2532548 walküre
walküre's picture

Lefties and Righties - to be fair.

Both being financed from the same sources. Divide and conquer has worked so well over centuries. Why stop now?

Sat, 06/16/2012 - 14:09 | 2532410 vh070
vh070's picture

Looks like we're going to get it too: Shock and Awhhh. . . shit!

Sat, 06/16/2012 - 09:36 | 2531883 Dick Darlington
Dick Darlington's picture

How abt just letting insolvent banks go bust, Spain exit euro.

Sat, 06/16/2012 - 09:41 | 2531891 RiverRoad
RiverRoad's picture

Greece's plight will be used by TPTB to suit their agenda and they already have their plan in hand.  So bring on the controlled or uncontrolled collapse, there will be some tasty tidbits for the picking either way.

Sat, 06/16/2012 - 09:58 | 2531921 MsCreant
MsCreant's picture

Never waste a good crisis.

Sat, 06/16/2012 - 09:42 | 2531895 digalert
digalert's picture

So they need some sort of "False Flag"?

I can think of some countries, one in particular, that are very adept in these operations...

Sat, 06/16/2012 - 09:44 | 2531898 BennyBoy
BennyBoy's picture

DB and C are looking to save their Spanish investments.

First, crash. (For drama, fear, pretense)

Second, "save" Spain by bailing out DB and C investments at 100% or 105%.

Third screw Spain for years to come.

Or have Spain go BK now and screw the bankers.

Oh wait, the bankers are in charge, BK won't happen.

Sat, 06/16/2012 - 09:51 | 2531909 Cursive
Cursive's picture


In this light, will Greece simply be the start of the much overdue "controlled demolition", that will bring the ECB out of hibernation, that is paradoxically instrumental in avoiding an uncontrolled demolition, where not even the ECB will have any powers left to prevent a collapse?

When the big down draft starts, they will be able to control it about as well as the TEPCO hands are controlling Fukushima.

Sat, 06/16/2012 - 10:30 | 2531974 MsCreant
MsCreant's picture

This is where you know they have to be narcissistic delusional. The attempt to control it IS the problem. I think your analogy is on the money but I am not sure which one has graver consequences. 

Sat, 06/16/2012 - 10:54 | 2532001 RiverRoad
RiverRoad's picture

Might as well throw in sociopath too while we're at it.

Sat, 06/16/2012 - 09:56 | 2531919 MsCreant
MsCreant's picture

Once Hyperinflation starts, and the gov. starts printing those bigger notes, don't you think that folks know what is happening? I am trying to get my head around this. I don't like conspiracy stuff, but man, it seems like they are doing it on purpose. 

When you start, you must know there is only one outcome. And the people must know.

The prices I am paying for food are going up scary fast in my estimation. But then again, I watch closely. I feel the slide NOW.

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