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ECB Tells Belgium Not To Backstop Dexia Interbank Deposits, Says Bailout Plan May Be Against The Euro Charter

Tyler Durden's picture


If anyone is surprised that things in Europe will get massively surreal before this is all over, we suggest finding another thread. In the meantime, for the latest example of the utter chaos and "make it up as we go along" we go to the ECB which has just, in very polite terms, warned Belgium that its bailout-cum-nationalization plan may not be quite feasible. From Bloomberg: "The European Central Bank advised Belgium not to backstop Dexia SA’s interbank deposits and to avoid providing guarantees on debt maturing within three months because it risks interfering with the central bank’s monetary policy." Reading between the lines here, it means that the ECB is effectively telling national governments to not try and become their own central banks under the ECB's umbrella, which would likely result in not only in various sovereign downgrades (that is guaranteed) but in loss of conviction in the European Central Bank, something which the insolvent European continent and the insolvent hedge fund in its core, aka Jean-Claude Trichet Capital et Cie. which holds hundreds of billions of Greek bonds at par, can certainly not avoid. It gets better: "The ECB also said the planned debt guarantees for Dexia may last as long as 20 years, which is inconsistent with European Union guidelines for national support measures to be temporary in nature, according to a statement published on the Frankfurt- based central bank’s website and dated Oct. 13. Belgium sought the ECB’s opinion on draft legislation that would grant state guarantees on Dexia loans." Oops: the ECB may have just scuttled the currently envisioned Dexia bailout plan. Oh well, just like with the Greek 50% bond haircut, so here to it is now back to the drawing board.

More from Bloomberg:

Guarantees on interbank deposits “could entail substantial distortion in the various national segments of the euro-area money market by potentially increasing short-term debt issuance activity across member states,” the ECB said in the statement.
“It could also affect the transmission of monetary policy decisions.”

For those who may have already forgotten last weekend's key event, now largley forgotten and priced in, "Dexia obtained a pledge from the governments of France, Belgium and Luxembourg last week to backstop as much as 90 billion euros ($125 billion) of interbank and bond funding with maturities of as much as 10 years until 2021. The French-Belgian municipal lender, which is being broken up after concern over its European sovereign debt holdings caused short-term funding to evaporate, sought state guarantees to finance long-term assets including 95 billion euros of bonds with an average maturity of almost 13 years at the end of June."

And the ECB just said that this whole plan may be against the Eurozon'e charter.

Good work guys. One can be 100% certain the rating agencies are following this with great interest.


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Fri, 10/14/2011 - 14:50 | 1774725 LawsofPhysics
LawsofPhysics's picture

Should make for a good ramp into the close.

Fri, 10/14/2011 - 15:02 | 1774794 max2205
max2205's picture

Feels like 2009 mar again,,,except Obamer hasn't said buy stocks and Ben hadn't QE'd...simply amazing

Fri, 10/14/2011 - 15:31 | 1774911 jaap
jaap's picture

Brussels police kicking Spanish protest girl in the face at Dexia head office:


Fri, 10/14/2011 - 15:56 | 1775009 Bastiat
Bastiat's picture


Fri, 10/14/2011 - 16:19 | 1775098 Lord Welligton
Lord Welligton's picture

Plaincloths psychopath by the look of it.

Fri, 10/14/2011 - 15:34 | 1774918 knukles
knukles's picture

Obama Invades Africa

WSJ just released news that US combat troops have been deployed in Central Africa to hunt down and kill leader of Lords Resistance Army.

Nice job for a Nobel Peace leauriate if one can get it.

Fri, 10/14/2011 - 15:57 | 1775014 macholatte
macholatte's picture



Obama sends US military advisers to Uganda

Fri, 10/14/2011 - 16:09 | 1775063 SilverRhino
SilverRhino's picture

I'd like to see them try to justify this one in terms of strategic interests.   Should be entertaining to see the attempted distraction.

Fri, 10/14/2011 - 15:24 | 1774887 Cash_is_Trash
Cash_is_Trash's picture

Belgium turned-in the ability to nationalize their banking institutions to the ECB.

Either Belgium bails out Dexia or the ECB does; either path is terrible.

DON'T SAVE IT! Let it hit the ground.

Fri, 10/14/2011 - 15:26 | 1774894 Popo
Popo's picture

so much for sovereignty.

there is really no more illusion that sovereign governments exist at a superior level to banks.

Belgium just realized who the boss was.

Fri, 10/14/2011 - 15:31 | 1774909 Cash_is_Trash
Cash_is_Trash's picture

Feast your eyes on how effective the control of the money supply and financial institutions is than any physical military presence.

You can say the printer is mightier than the sword, eh, Martin Luther?

Fri, 10/14/2011 - 15:41 | 1774953 jdelano
jdelano's picture

rampjob started weirdly early today

Fri, 10/14/2011 - 15:58 | 1775019 HoofHearted
HoofHearted's picture

And how in the hell is this bullish? Unless everyone is assuming the ECB will do exactly what it tells Belgium not to do??? Then, hell, buy all the ink making companies that are out there...

Fri, 10/14/2011 - 14:51 | 1774730 SheepDog-One
SheepDog-One's picture watching kids play Monopoly with no clue about any rules or anything!

Fri, 10/14/2011 - 14:55 | 1774761 Motley Fool
Motley Fool's picture

Calvinball rules, actually.

Fri, 10/14/2011 - 14:59 | 1774775 wretch
wretch's picture

And we just watch the kids, thinking we're spectators, when we're the pieces on that gameboard.

Fri, 10/14/2011 - 15:28 | 1774901 Cash_is_Trash
Cash_is_Trash's picture

These Belgium politicians are just kicking the gameboard down the road.

I don't want currency collapse, I don't want depression and poverty. I rather like the idea that worthless paper can purchase the money of kings.

We'll eventually see fiat paper meltdown within a couple of years.

Fri, 10/14/2011 - 15:41 | 1774943 macholatte
macholatte's picture

All the pieces are stationary, it's the board that's moving.


You can fool some of the people all of the time; you can fool all of the people some of the time, but you can never fool all of the people all of the time.

-PT Barnum




Fri, 10/14/2011 - 15:52 | 1774993 nodhannum
nodhannum's picture

You forgot that you can fool "enough of the people enough of the time" to get an Obummer elected!

Fri, 10/14/2011 - 23:33 | 1776236 Skid Marks
Skid Marks's picture


On Election day, 2012 as the voting begins the ACORN & SEIU crews assists voters by giving them a ride to the polls.


Fri, 10/14/2011 - 15:01 | 1774789 Deadpool
Deadpool's picture

what exactly in Europes 2000 years of existance lead you to believe they know how to do economics?

Fri, 10/14/2011 - 17:52 | 1775471 kaiserhoff
kaiserhoff's picture

Well said Dead, but that was before Tyler mentioned the Luxembourg Put.  If they're in, I'm happy. 

I'm always impressed with countries I can piss across.

Fri, 10/14/2011 - 15:03 | 1774803 Libertarians fo...
Libertarians for Prosperity's picture




What the fuck do you know about the topic at hand?  Anything?  Anything, at all?

Are you part of some sort of competition of who can post the most banal comments on a forum in a single day?  Unwaveringly, every day you post dozens and dozens of the most banal comments I've ever seen.

Every. fucking. day.  50 fucking times. 

Your banality is torture.



Fri, 10/14/2011 - 15:07 | 1774828 Deadpool
Deadpool's picture

don't Libertarians believe in freedom of speech? don't read him/her if you don't like it.

Fri, 10/14/2011 - 17:05 | 1775308 tmosley
tmosley's picture

He is not a libertarian, but rather a statist nutbag who started off trolling Republicans here as "Red Neck Repugnicant", but changed his name each time he was irretrievably humiliated by liberty loving individuals such as myself to the point that he finally switched the sole focus of his entire life from trolling republicans where they don't exist to trolling libertarians.

Also note that he is a psychopathic stalker who tracked down people that worked in my lab group and tried to badmouth me to them.  Luckily he was so stupid that he picked the former member of the team who has age related dementia.  Otherwise I might have been in "trouble", lol.

Fri, 10/14/2011 - 15:15 | 1774858 knukles
knukles's picture

Grow the fuck up.

Fri, 10/14/2011 - 15:18 | 1774873 Shitters_Full
Shitters_Full's picture

Um, how 'bout Libertarians for Decaf instead?

Fri, 10/14/2011 - 15:22 | 1774878 SheepDog-One
SheepDog-One's picture

Libertarians fo.... <---LOL who is this fuknut?

Fri, 10/14/2011 - 15:26 | 1774892 taraxias
taraxias's picture

Brother Dog, why do you flatter him by calling him a fuknut? 

Fri, 10/14/2011 - 15:38 | 1774942 knukles
knukles's picture

Obama Invades Africa
WSJ just released piece that details US combat troops deployed to Central Africa to hunt down and kill leader of Lords Resistance Army.

Nice work for a Peace Laureate if one can get it.

Fri, 10/14/2011 - 15:42 | 1774955 nmewn
nmewn's picture

"If they bring a knife, you bring a gun".

Fri, 10/14/2011 - 15:49 | 1774984 Vincent Vega
Vincent Vega's picture

I bet a SAE that when they hold the press confernece it's called a 'support role' and that they say the US isn't really involved. BTW, the leader of the Lord's Resistance Army is Joseph Kony. Kinetic action anyone?

Fri, 10/14/2011 - 16:22 | 1775114 SheepDog-One
SheepDog-One's picture

World war kicking off.

Fri, 10/14/2011 - 16:23 | 1775121 FilbertH
FilbertH's picture

They told me that if I voted for McCain we would have more troops deployed in more places, and they were right.

Fri, 10/14/2011 - 17:06 | 1775311 tmosley
tmosley's picture

You would remember him better with his avatar, the little yellow Hitler smiley face.

Fri, 10/14/2011 - 17:17 | 1775353 fuu
fuu's picture

He's being all stealthy.

Fri, 10/14/2011 - 15:23 | 1774882 Steel_Preacher
Steel_Preacher's picture

The word of the day is BANAL, does NOT rhyme with ANAL.

Thanks for playing.

Fri, 10/14/2011 - 16:35 | 1775182 GeezerGeek
GeezerGeek's picture

To rhyme with ANAL you have to spell it BOEHNAL.

Fri, 10/14/2011 - 15:31 | 1774912 Schmuck Raker
Schmuck Raker's picture
Adj. 1.

banal - repeated too often; overfamiliar through overuse.

Hmm, couldn't scrounge a thesaurus?

Fri, 10/14/2011 - 18:03 | 1775498 Lord Welligton
Lord Welligton's picture

What the fuck do you know about the topic at hand? 

Allow me hazard a guess old bean.

More than you?

Fri, 10/14/2011 - 15:36 | 1774923 BandGap
BandGap's picture

You don't have to have a clue when the rules don't really matter in the first place.

There are so many things being done this days just because they "seem right" to a select few.  Question the paths taken and you will bring about the end of the world.  We're dismantleing the Constitution the same way.

Fri, 10/14/2011 - 14:51 | 1774734 Raynja
Raynja's picture

I love the friday afternoon humor.

Fri, 10/14/2011 - 15:03 | 1774811 GeneMarchbanks
GeneMarchbanks's picture

Friday 3pm - 5pm EST is dirty laundry time. You really can't miss news items from that period.

Fri, 10/14/2011 - 14:58 | 1774739 hambone
hambone's picture

Bailing out of the bailout will require...another bailout.  Circular, globular bailouts of bailouts.  There is no refuting "it" cause nobody can even comprehend what "it" is.  BULLLISH!!!

And on this note...we will shortly take out S&P 1221 and show everybody who's bitch the "stock market" is!!!

Fri, 10/14/2011 - 14:52 | 1774740 Lord Welligton
Lord Welligton's picture

So the interbank market sizes up completely on Monday?


Fri, 10/14/2011 - 16:02 | 1775036 HoofHearted
HoofHearted's picture

no way...there will be some sort of a bailout this weekend...Qatar putting money into Dexia or more likely the ECB buying anything that isn't nailed down because they don't even need euro notes to do so. All their electronic 1s and 0s should buy everything very nicely.

speaking of, I'm ready to issue a CDS on the ECB and the Fed. Anyone buying?

Fri, 10/14/2011 - 16:37 | 1775183 NoClueSneaker
NoClueSneaker's picture


Nope - too expensive :-P


... I'd consider shorting U :-P ( Thx for spilling my cofee ... )


Fri, 10/14/2011 - 14:52 | 1774743 imaginalis
imaginalis's picture

Eggs thrown at IMF guy in Turkey

Fri, 10/14/2011 - 15:04 | 1774814 tmosley
tmosley's picture

Too bad it wasn't a petrified dinosaur egg.

Fri, 10/14/2011 - 15:10 | 1774841 Hearst
Hearst's picture

Hurled projectiles historically have always worked better than jawboning.

Fri, 10/14/2011 - 15:37 | 1774937 Cash_is_Trash
Cash_is_Trash's picture

Nothing like throwing a pair of loafers at a politician.

Herbet Walker's speech in Iraq anyone?

Fri, 10/14/2011 - 14:53 | 1774744 ZeroPoint
ZeroPoint's picture

So who is screwing who here?

Fri, 10/14/2011 - 15:02 | 1774799 ptoemmes
ptoemmes's picture

Well, you asked...


Skydiving is a kind of bailout.

Fri, 10/14/2011 - 15:36 | 1774921 falak pema
falak pema's picture

ecb doesn't want to take on the market alone while govt shills try and place their fig leaves in place in helter skelter race to deadline. The three stooges couldn't have a better act than this one. It looks like the cabin scene in Groucho Marx film..was it day at the races or duck soup?

Fri, 10/14/2011 - 14:54 | 1774750 Newsboy
Newsboy's picture

Cash out some more t-bills!

Fri, 10/14/2011 - 14:54 | 1774751 Lord Welligton
Lord Welligton's picture

Guarantees on interbank deposits “could entail substantial distortion in the various national segments of the euro-area money market

Yet this is precisely what the Irish government did !!!!!!

Fri, 10/14/2011 - 15:06 | 1774827 Dick Darlington
Dick Darlington's picture

And what happened to Irish Gubbmint soon after? ;-)

Fri, 10/14/2011 - 16:30 | 1775151 Lord Welligton
Lord Welligton's picture


We still have a government.

It's just that its a new one.

Promised to "burn the bondholders".

Got into power and fucked the people.

Same old. Same old.

Fri, 10/14/2011 - 15:34 | 1774919 beastie
beastie's picture

Yes, completely confused on this. Does this mean the Irish Govt. gets a do over and gets the 90 billion( or whatever the hell it is now ) back?

Fri, 10/14/2011 - 16:32 | 1775171 Lord Welligton
Lord Welligton's picture

If we had a government that actually gave a fuck ........... yes.

But what is important here is this.

The ECB instructed the previous government to save the banks.

The ECB is a piece of shit.

It's not even a Central Bank.

Fri, 10/14/2011 - 14:54 | 1774755 kito
kito's picture

European Cluster Bomb is dropped.............

Fri, 10/14/2011 - 14:57 | 1774765 ReallySparky
ReallySparky's picture

Good Gawd Man, I just can't keep all this straight anymore.

Fri, 10/14/2011 - 15:19 | 1774773 Motley Fool
Motley Fool's picture

Another successfully baffled by bullshit. Winning. :P

Fri, 10/14/2011 - 15:25 | 1774889 centerline
centerline's picture

Add me to the pile.  Someone please stop the ride, I would like to get off now.

Fri, 10/14/2011 - 15:13 | 1774852 greenfire
greenfire's picture

That's the point isn't it? But of course it's not really fraud, per se. All perfectly legal, I'm sure. It's just another great example of innovation in the financial sector.

Fri, 10/14/2011 - 14:57 | 1774766 Bunga Bunga
Fri, 10/14/2011 - 15:04 | 1774812 earleflorida
earleflorida's picture

define country?

Fri, 10/14/2011 - 16:14 | 1775082 Peter K
Peter K's picture

Neither does Euroland. But somehow it's been able to manage all these years.

Fri, 10/14/2011 - 14:57 | 1774767 slaughterer
slaughterer's picture

Did European traders even notice this announcement over and above the Merkel phonecalls, and the Timmy interviews, and the Sarkozy promises?

Fri, 10/14/2011 - 15:10 | 1774839 knukles
knukles's picture

Timmah gave an interview today?  Must not have been very important.  They didin't interrupt the Cartoon Network.

Fri, 10/14/2011 - 16:12 | 1775078 Peter K
Peter K's picture

But it sent the EUR/USD through the resistance at 1.3820 up to almost 1.3900. Beautiful example of the Feb/Treasury fiscal transmission mechanism.

Fri, 10/14/2011 - 14:58 | 1774771 Yellowhoard
Yellowhoard's picture

I defer to the wisdom of the late great Leslie Nielson at times like this.

Fri, 10/14/2011 - 14:59 | 1774774 Everybodys All ...
Everybodys All American's picture

I'm really having a hard time figuring out just what the hell they expect Belgium, France, and or others to do. I guess they just want the power over the whole cluster f eurozone.

Fri, 10/14/2011 - 14:59 | 1774777 surf0766
surf0766's picture

Pour me a 12 year old scotch please. This is almost as funny as the boat launch in China.

Fri, 10/14/2011 - 15:00 | 1774780 MiningJunkie
MiningJunkie's picture

The Zimbabwe-esque money-printing orgy continues which is indeed BULLISH for ANYTHING not denominated in Federal Reserve Notes ($U.S.), Euros, C$, A$, Yen....We must NEVER underestimate the replacement power (in fiat) of stocks within a MASSIVE GLOBAL re-flationary spiral. AAPL goes to $2,000 per share which is great - but a loaf of bread costs 25 times as much. Shorting stocks (going uber-long fiat) is going to be a DISASTER trade for the headline readers. BUY BUY BUY....

Fri, 10/14/2011 - 15:00 | 1774781 Vincent Vega
Vincent Vega's picture

The rule(s) of law shall be changed to accommodate the bankers.

Fri, 10/14/2011 - 15:07 | 1774830 knukles
knukles's picture

LOL  First rule of banker's fight club.

Fri, 10/14/2011 - 16:44 | 1775229 NoClueSneaker
NoClueSneaker's picture

Looks more like Bokassa's or Idi Amin's lunch party ...

Fri, 10/14/2011 - 15:00 | 1774783 Belarus
Belarus's picture

See? The market didn't start this huge bear market rally because of solved plans in Europe: it started before any supposed plan of a new plan of a new plan due by the end of the month so says Merkozy. The entire ramp--rember gold and silver were left behing and the only reason for a stock ramp job would be becaue of confetti paper duplication, started because the despots had to do something quick before OWS took on an immediate and even larger meaning. 


Fri, 10/14/2011 - 15:01 | 1774792 Dick Darlington
Dick Darlington's picture

Today there was BIG stress in French and to some extent Belgium Gubbmint bonds. France-Germany 10 year spread widened to euro-era record and Belgium's CDS pushed to record too. After ECB started it's now daily monetization of Spain and Italy, Belgium's cash bonds erased some of the losses. But the most important thing was that ECB monetization DIDN'T stop the meltdown in France. Of course the clueless equity complex ran to the hills and shouting "be merry" but things are getting serious if (lol) France will keep getting hammered.

Fri, 10/14/2011 - 15:02 | 1774795 AldoHux_IV
AldoHux_IV's picture

It looks like the rules are changing all the time and now the EU is a clusterfuck of organization that is chasing the wide wild circles to get to the simple end conclusion: it's broke both from a financial and moral standpoint and it will fail.

Fri, 10/14/2011 - 15:19 | 1774876 Spitzer
Spitzer's picture

Central banks fail from printing. The Fed has printed so much more that there is no comparson.

Fri, 10/14/2011 - 15:02 | 1774797 dr.charlemagne
dr.charlemagne's picture

ECB: "we will print the toilet paper. now please return to a contagious bankrupcy immediately"

Fri, 10/14/2011 - 15:02 | 1774798 Belarus
Belarus's picture

See again? The market not only doesn't drop on this but the same ramp job that takes place during power hour is here yet again! Unbelievable no one calls this shit out for what it is: total manufactored rally by TPTB. 

Fri, 10/14/2011 - 15:02 | 1774801 The Axe
The Axe's picture

Volume drying up like a grape in direct sunlight. Every trader out on the street watching cops run over protesters on their scooters.....its like Death Race 2000---only fat cops on scooters...ha ha

Fri, 10/14/2011 - 15:02 | 1774802 mynhair
mynhair's picture

Sell that PrimeX!

Buy them stawks!


Fri, 10/14/2011 - 15:03 | 1774804 zippy_uk
zippy_uk's picture

The DebtStar cometh, ask not who it tolls for as it tolls for thee.. Dexia:-

The DebtStar cometh, ask not who it tolls for as it tolls for thee.. Belgium:-


Fri, 10/14/2011 - 15:03 | 1774805 Deadpool
Deadpool's picture

Marshall Plan 2.0

Fri, 10/14/2011 - 15:03 | 1774807 Smiddywesson
Smiddywesson's picture

There must have been a threat to shareholders somewhere in the deal.  There must be no nationalization of banks, just bailouts and stalling please.  We can't have TPTB foot the bill, that would be unthinkable.

Fri, 10/14/2011 - 15:04 | 1774816 THE DORK OF CORK
THE DORK OF CORK's picture

Holy Shit !!!!!!!!!!!!!


Fri, 10/14/2011 - 16:50 | 1775257 Lord Welligton
Lord Welligton's picture

Got to say it Dork.

"Holy Shit".



If they mean it.

Shit has got to hit the fan.

Is this Trichet's mob leaving a bomb for Draghi to defuse?

Fri, 10/14/2011 - 17:21 | 1775364 THE DORK OF CORK
THE DORK OF CORK's picture

I am not qualified to say to be honest - if this involves a subsequent default on the euro shadow banking system it will be great in the long term - maybe the ECB needs to be seen to act fair to prevent a peasants revolt..............I just don't know what is going on in their minds but I doubt it - still saving your skin can change peoples minds.

But we are going to get a massive depressionary shock me thinks.


Fri, 10/14/2011 - 18:10 | 1775413 Lord Welligton
Lord Welligton's picture

a massive depressionary shock me thinks.

I had thought that "they" might be sensible about this.

I had thought that they might create €2 Trillion and use it to prevent cahos.

The "money" was "created" and has been exchanged in commerce.

The money was created as debt. The commerce occurred. The people were happy.

All they have to do know is forgive the "sin" of economic activity.

And without going into too much detail fill the black hole of debt that has been created.


I am now convinced that some want things to remain exactly as they are.

They want that transfer of wealth to be permanent.

They don't want the debt forgiven because they would lose 50 years work.

They would rather kill you and me than give up that generational transfer.


Fri, 10/14/2011 - 20:46 | 1775889 THE DORK OF CORK
THE DORK OF CORK's picture

You're probally right - but its hard to get into the head of bastards that bad sometimes.

Euros can be produced for real productive activity to prevent defaltion - I am always banging on about a tram for my town for instance - the CB gives us Euros , we buy a French tram , we reduce our oil imports , we sell butter to Fatter French workers etc etc............. ok ok maybe we sell the stuff to Germans as the French farmers..............  I always thought that was productive trade for some funny reason.

I can always dream I guess.


Fri, 10/14/2011 - 15:04 | 1774817 knukles
knukles's picture

I've heard of and dealt with a number of folks with serious alcohol and drug adictions well as others with pretty strange and disturbing mental problems, but this takes the cake. 
It's like the EU/ECB's medulla oblongatta has been severed so that the right hand really and truly has no fucking clue what the left hand is doing.

Fri, 10/14/2011 - 15:06 | 1774826 tony bonn
tony bonn's picture

god forbid that a supercilious unelected european bureaucrat should find his power eclipsed by the local yahoos...

Fri, 10/14/2011 - 15:07 | 1774829 dr.charlemagne
dr.charlemagne's picture

"transmission of monetary policy"=giving freshly printed euros to our plutocratic supporters. FUCK YOU ECB

Fri, 10/14/2011 - 16:10 | 1775067 Peter K
Peter K's picture

To paraphrase Al Pacino's character in the movie Scarface:

Fri, 10/14/2011 - 16:48 | 1775250 NoClueSneaker
NoClueSneaker's picture

Request aknowledged &  fullfilled ....

Mario Draghi ( Goldmanite ) and Jörg Asmussen ( Da Weirdo ) on the board :-P


Fri, 10/14/2011 - 15:08 | 1774832 jomama
jomama's picture

charter, sharter, THE MUSIC MUST STILL PLAY ON!!!

Fri, 10/14/2011 - 15:09 | 1774836 Alvaro de Esteban
Alvaro de Esteban's picture

Eurozone´s charter?


There is only: S.O.S Politicians & Bankers first!!!

So... no logic, no rules, no law. I left "the game" right after QE1 

Fri, 10/14/2011 - 16:07 | 1775056 Peter K
Peter K's picture

All EU laws are "self modifying" lest we forget.

Fri, 10/14/2011 - 15:12 | 1774846 Lone Mad Minute...
Lone Mad Minute Medic's picture

Going into the last hour, melt up anybody?

Fri, 10/14/2011 - 15:13 | 1774849 RobotTrader
RobotTrader's picture



What is amazing is how the NY Composite had a huge shakeout low, and now it has almost completely run through a huge resistance area with no pullbacks whatsoever.

Never underestimate the "bargain seekers" wanting to "make their year".

And who would have believed that with Euro zone funding problems at all time world record stress level highs, the QQQ would be at 3-year highs?

As if nothing happened?

Fri, 10/14/2011 - 15:17 | 1774871 mynhair
mynhair's picture

AS Wall Street is mainly inhabited/run by Libs, the delusional behavior is perfectly explainable.

Fri, 10/14/2011 - 15:16 | 1774866 pauhana
pauhana's picture

Sweet Jesus!  You can't make this stuff up!

Fri, 10/14/2011 - 15:19 | 1774875 RobotTrader
RobotTrader's picture

SBUX and BBBY at world record highs

While Euro Zone interbank funding is flat out frozen.

Yeah, that makes sense.....

Fri, 10/14/2011 - 15:22 | 1774880 Belarus
Belarus's picture

The U.S. markets are the only in the entire world that will close at its highs today. 

Fri, 10/14/2011 - 16:04 | 1774881 Black Forest
Black Forest's picture

ECB is afraid of rating downgrades of Belgium (and France). Am I wrong?

Fri, 10/14/2011 - 15:24 | 1774884 Belarus
Belarus's picture

Lookie at the power hour ramp and the take-down in PM's. This is the most rigged market ever.

Fri, 10/14/2011 - 15:26 | 1774893 Iam Rich
Iam Rich's picture

Must be where the "fuel" is coming from...sell my PM's (cuz they don't pay a dividend) and buy some AAPL (because it does, oh wait, uh, hmm, nvm).

Fri, 10/14/2011 - 15:27 | 1774895 socratesplus
socratesplus's picture

Jean-Claude Trichet Capital et Cie. which holdings hundreds of billions of Greek bonds at par

not true. see the credit suisse report referred to in post above re 50% psi not enough

Fri, 10/14/2011 - 15:27 | 1774896 mynhair
mynhair's picture

Be nice if this ramp crap would bleed over to the dogs I'm holding.

Fri, 10/14/2011 - 15:28 | 1774898 nantucket
nantucket's picture

sounds like how my wife and i parent sometimes.  Parent 1: "sure kid, you can do that"....10 minutes later....Parent 2: "what the hell are you doing?, you can't do that!"

so really, listenting to european financial leaders is just like having normal parents.  what's the problem?

Fri, 10/14/2011 - 15:33 | 1774917 AngryGerman
AngryGerman's picture

Dead man walking...the last words of trichet! During the last minutes on the job he finally said decided to do sth sensible.

i feel sorry for him. guy learned the business at a different time, and the old solutions do not work anymore.

everbody is just too fucking scared to admit that the endless debt game sponsored by fiat currencies does not work.

from here on downwards. expect no less than the biggest worldwide collapse of financial systems ever. and the real economy will be dragged down in the aftermath.

it was a good ride as long as it lasted. maybe the current round of bailouts of govies and banks will even work, but it will just shift the shitstorm back out for a couple more months/years.


Fri, 10/14/2011 - 15:36 | 1774922 IveBeenHad
IveBeenHad's picture

carry on....

Fri, 10/14/2011 - 15:46 | 1774973 AngryGerman
AngryGerman's picture

just learn from history: all of this is nth new.

debt is the key to financial prosperity. when external and internal debt level rise, debt tolerance shrinks, and economies are locked out from long/term funding.

solutions? debasement of currency (does not work with fiats). inflation? does work, but creates massive civil unrest and leads to intergenerational funding conflicts. default? once down that road, you can kiss potential creditors good/bye (you probably still get ST, but at very high costs, and that ultimatively bankrupts you).

Fri, 10/14/2011 - 15:36 | 1774925 mynhair
mynhair's picture

BAC offering 20 grand to underwater homeowners to go short sale!

Ramp it!

Fri, 10/14/2011 - 15:41 | 1774954 Bansters-in-my-...
Bansters-in-my- feces's picture

I wondered why the markets are rallying today.

Now I see.

Fri, 10/14/2011 - 15:42 | 1774957 MiningJunkie
MiningJunkie's picture

This is CLASSIC - Every permabull on CNBC is now talking "caution" which means they all got flushed out last month into the orchestrated takedown. The left-behind-bulls are whining and the annihilated shorts are wailing in agony.

Roasting the shorts! What a great and absolutely NOVEL thought!

Never underestimate the replacement power of equities within a Weimar-revisitation!


Fri, 10/14/2011 - 15:49 | 1774958 Alvaro de Esteban
Alvaro de Esteban's picture

Last one from EUROcrats; Blackmail


"Eurogroup chief Jean-Claude Juncker said on Friday that banks must be aware that unless the voluntary agreement of bondholders is sufficient, then the target will be for a non-voluntary participation of the private sector."

Fri, 10/14/2011 - 15:54 | 1774999 AngryGerman
AngryGerman's picture

it's called turning private debt into public debt. it's double bad for your ma: first she gets fucked on her investment, and then she gets fucked bc the bill will be picked up by the gov. you think that greece will ever get creditors to give them money LT? and who will pay for the poor suckers (yes, i would notlike to live in greece now)? more debt for good old europe, and down the drain with any future public spending (and not just the fun stuff like new autobahnen, but health care, retirement benefits, unemployment services, schools etc).

Fri, 10/14/2011 - 16:21 | 1775111 Alvaro de Esteban
Alvaro de Esteban's picture

When I trained people, in my old Bank times I always repeated:

There are not "bad debtors", there are silly, irresponsible or too greedy creditors. Because if they are bad you can´t allow them to become your debtors.

Fri, 10/14/2011 - 16:32 | 1775170 GeezerGeek
GeezerGeek's picture

Does "non-voluntary participation of the private sector" apply to "paying income taxes"? And did the bondholders of GM and Chrysler get to agree voluntarily to take a 100% (or whatever it was) loss just to benefit some unions?

Fri, 10/14/2011 - 15:59 | 1775023 chump666
chump666's picture

wall street is panic buying....

Fri, 10/14/2011 - 16:02 | 1775033 mynhair
mynhair's picture

OMG!  Quick, call 911!

Laughing so hard, I can't breathe.

Swear to god, if nukes fly this weekend, this pig would jump 1000 Mon.

Fri, 10/14/2011 - 16:04 | 1775041 AngryGerman
AngryGerman's picture

go call netanjahu. wait. they officially do not have nukes.

Fri, 10/14/2011 - 16:56 | 1775268 NoClueSneaker
NoClueSneaker's picture

He could lease at least one to hiis friend Ahmadinejad (*).

Paul Krugman needs ETs, k, Persians r good enuff to boost the economy :-P

(*)EDIT: I've forgotten the keyword - "transitory"

Fri, 10/14/2011 - 16:07 | 1775051 MiningJunkie
MiningJunkie's picture

"I love the smell of incinerated shorts in the mornin'...." - Robert Duvall from Apocalypse Now.

Fri, 10/14/2011 - 16:11 | 1775068 MiningJunkie
MiningJunkie's picture

Wonder how Phoenix Capital is doing "protecting portfolios" from the meltdown? I don't see him pumping his "The Sky is Falling" newsletter much this past week...he must have been slaughtered being short this wonderful rally.

Fri, 10/14/2011 - 16:36 | 1775189 Scalaris
Scalaris's picture



1) BNP Paribas : France

  • PIIGS Exposure: $280.96 billion
  • Market Cap: $79.91 billion
  • Common Equity: $78.43 billion
  • Exposure as % of Common Equity: 358%

2) Commerzbank : Germany

  • PIIGS Exposure: $67.38 billion
  • Market Cap: $18.45 billion
  • Common Equity: $14.60 billion
  • Exposure as % of Common Equity: 462%

3) Dexia : Belgium

  • PIIGS Exposure: $132.95 billion
  • Market Cap: $5.229 billion
  • Common Equity: $10.34 billion
  • Exposure as % of Common Equity: 552%

4) Banco Santander : Spain

  • PIIGS Exposure: $567.20 billion
  • Market Cap: $92.08 billion
  • Common Equity: $59.51 billion
  • Exposure as % of Common Equity: 953%

5) Unicredit : Italy 

  • PIIGS Exposure: $541.54 billion
  • Market Cap: $34.41 billion
  • Common Equity: $50.59 billion
  • Exposure as % of Common Equity: 1,070%

6) Bank of Ireland : Ireland

  • PIIGS Exposure: $102.43 billion
  • Market Cap: $1.39 billion
  • Common Equity: $7.40 billion
  • Exposure as % of Common Equity: 1,385%

7) BBVA : Spain

  • PIIGS Exposure: $552.90 billion
  • Market Cap: $52.80 billion
  • Common Equity: $35.39 billion
  • Exposure as % of Common Equity: 1,566%

8) EFG Eurobank Ergasias : Greece

  • PIIGS Exposure: $76.01 billion
  • Market Cap: $2.07 billion
  • Common Equity: $4.74 billion
  • Exposure as % of Common Equity: 1,601%

9) Intesa Sanpaolo Group : Italy

  • PIIGS Exposure: $607.03 billion
  • Market Cap: $51.06 billion
  • Common Equity: $37.07 billion
  • Exposure as % of Common Equity: 1,638%

10) Banco Popular Español : Spain

  • PIIGS Exposure: $182.94 billion
  • Market Cap: $6.91 billion
  • Common Equity: $9.49 billion
  • Exposure as % of Common Equity: 1,927%

11) Banca MPS : Italy

  • PIIGS Exposure: $290.98 billion
  • Market Cap: $7.96 billion
  • Common Equity: $6.24 billion
  • Exposure as % of Common Equity: 4,666%

12) Allied Irish Banks : Ireland

  • PIIGS Exposure: $129.02 billion
  • Market Cap: $2.00 billion
  • Common Equity: $0.387 billion
  • Exposure as % of Common Equity: 33,352%






Fri, 10/14/2011 - 16:47 | 1775245 Dick Darlington
Dick Darlington's picture

Awesome post!

Fri, 10/14/2011 - 17:11 | 1775334 Lord Welligton
Lord Welligton's picture

If it were true.

Fri, 10/14/2011 - 17:06 | 1775313 Lord Welligton
Lord Welligton's picture

12) Allied Irish Banks : Ireland

  • PIIGS Exposure: $129.02 billion
  • Market Cap: $2.00 billion
  • Common Equity: $0.387 billion
  • Exposure as % of Common Equity: 33,352%p

Where in the name of fuck did you get that shite from?


Fri, 10/14/2011 - 17:29 | 1775391 Scalaris
Scalaris's picture

Some Bloomberg article; reference cited for Allied Irish was from .

Fri, 10/14/2011 - 17:48 | 1775455 Lord Welligton
Lord Welligton's picture

Your link is full of shit.

You know it.

Where did you get that shite from?

Fri, 10/14/2011 - 18:10 | 1775515 Scalaris
Scalaris's picture

My link is full of shit and I know it?


I'm not the one who composed the article you semi/fully retared oaf, I merely copied/pasted the content because I thought that it would be useful information.

Since I do not possess the link anymore, I am redirecting you to Bloomberg's search facilities, which you can use to confirm your "my link is full of shit" theory which you are then more than welcome to share within the current public forum, or sue them.

Otherwise shut the fuck up and resume your presumed 24/7 forum trolling.


And as a token of my overextended generosity, here is the document containing bank's individual results

and the document with the results of the 2011 EU-wide Stress Test under the adverse scenario


Fri, 10/14/2011 - 18:13 | 1775523 polak potrafi
polak potrafi's picture

przetlumaczyc nie wiadomo po co



Dear guys although we love a lot your backstop offer in the amount of 54.45  billion euro (plus interests and ancilliary costs) we think that the deal may be too generous. In particular, we really hope that you are not intending to substitute the ECB with Dexia when it comes to gathering and ensuring the deposits placed by banks. It is rather clear that the ECB deposit rates can not compete with those that would be set by Dexia (unless something happens to the guarantor).  Moreover, we are a little bit concerned with your "kicking the can" laser sight. We are proposing to squeeze your current wild target range 0-20 years to the customary 3 months -3 years. Otherwise you can kick yourself with the can in the face, or shoot it to the moon and there will be nothing to kick around anymore.


Other than that everything is splendid and we hope that you will not wake up the State Aid Commissioner. 

Fri, 10/14/2011 - 19:03 | 1775648 Apeman
Apeman's picture


Fri, 10/14/2011 - 19:18 | 1775687 slewie the pi-rat
slewie the pi-rat's picture



  • tyler had this shit down to a "T", with the (+) for belgian CDSs and the (-) for dexia's
  • sounds like qatar got too good of a deal
  • do-over, BiCheZ!!!
Fri, 10/14/2011 - 20:39 | 1775876 StychoKiller
StychoKiller's picture

The ECB also said the planned debt guarantees for Dexia may last as long as 20 years, which is inconsistent with European Union guidelines for national support measures to be temporary in nature,

Hmm, 20 years is temporary -- just a lonnnnng temporary!

Fri, 10/14/2011 - 21:06 | 1775938 Hedge Fund of One
Hedge Fund of One's picture

I don't see the problem ... I mean just today DB CEO Ackermann told Maria Bartiromo that Deutsche Bank is well capitalized with almost no exposure to "The South", that there is "absolutely" no problem. If he said it, it must be true. I mean Period, End of Story!


Fri, 10/14/2011 - 21:43 | 1776020 Buck Johnson
Buck Johnson's picture

It is against the charter but everyone are looking up in the sky whistling past the graveyard.  Because they know the laws they made hamper them from manipulating the economy which they made the rules in order to protect.

Sat, 10/15/2011 - 09:06 | 1776706 Grand Supercycle
Grand Supercycle's picture

SP500 / DOW daily charts remain choppy but bullish.

A reminder that SP500 / DOW weekly indicators now give bullish warning. If confirmed, it suggests significant equity rally this year.

Importantly, monthly charts remain bearish.

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