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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 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Should make for a good ramp into the close.

Fri, 10/14/2011 - 15:02 | Link to Comment 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 | Link to Comment jaap
jaap's picture

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

http://www.welingelichtekringen.nl/15880-politie-van-brussel-in-actie-je...

 

Fri, 10/14/2011 - 15:56 | Link to Comment Bastiat
Bastiat's picture

Psychopath.

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

Plaincloths psychopath by the look of it.

Fri, 10/14/2011 - 15:34 | Link to Comment 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 | Link to Comment macholatte
macholatte's picture

 

 

Obama sends US military advisers to Uganda

http://www.reuters.com/article/2011/10/14/uganda-usa-idUSN1E79D19G20111014

Fri, 10/14/2011 - 16:09 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment jdelano
jdelano's picture

rampjob started weirdly early today

Fri, 10/14/2011 - 15:58 | Link to Comment 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 | Link to Comment SheepDog-One
SheepDog-One's picture

WTF....like watching kids play Monopoly with no clue about any rules or anything!

Fri, 10/14/2011 - 14:55 | Link to Comment Motley Fool
Motley Fool's picture

Calvinball rules, actually.

Fri, 10/14/2011 - 14:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

http://www.youtube.com/watch?v=grbSQ6O6kbs

 

Fri, 10/14/2011 - 15:01 | Link to Comment 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 | Link to Comment 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 | Link to Comment Libertarians fo...
Libertarians for Prosperity's picture

 

 

@sheepDogOne

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 | Link to Comment 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 | Link to Comment 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 | Link to Comment knukles
knukles's picture

Grow the fuck up.

Fri, 10/14/2011 - 15:18 | Link to Comment Shitters_Full
Shitters_Full's picture

Um, how 'bout Libertarians for Decaf instead?

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

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

Fri, 10/14/2011 - 15:26 | Link to Comment taraxias
taraxias's picture

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

Fri, 10/14/2011 - 15:38 | Link to Comment 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 | Link to Comment nmewn
nmewn's picture

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

Fri, 10/14/2011 - 15:49 | Link to Comment 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 | Link to Comment SheepDog-One
SheepDog-One's picture

World war kicking off.

Fri, 10/14/2011 - 16:23 | Link to Comment 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 | Link to Comment tmosley
tmosley's picture

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

Fri, 10/14/2011 - 17:17 | Link to Comment fuu
fuu's picture

He's being all stealthy.

Fri, 10/14/2011 - 15:23 | Link to Comment 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 | Link to Comment GeezerGeek
GeezerGeek's picture

To rhyme with ANAL you have to spell it BOEHNAL.

Fri, 10/14/2011 - 15:31 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Raynja
Raynja's picture

I love the friday afternoon humor.

Fri, 10/14/2011 - 15:03 | Link to Comment 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 | Link to Comment 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 | Link to Comment Lord Welligton
Lord Welligton's picture

So the interbank market sizes up completely on Monday?

 

Fri, 10/14/2011 - 16:02 | Link to Comment 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 | Link to Comment NoClueSneaker
NoClueSneaker's picture

LOL !

Nope - too expensive :-P

 

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

 

Fri, 10/14/2011 - 14:52 | Link to Comment imaginalis
imaginalis's picture

Eggs thrown at IMF guy in Turkey

 

http://www.today.az/news/interesting/96416.html

Fri, 10/14/2011 - 15:04 | Link to Comment tmosley
tmosley's picture

Too bad it wasn't a petrified dinosaur egg.

Fri, 10/14/2011 - 15:10 | Link to Comment Hearst
Hearst's picture

Hurled projectiles historically have always worked better than jawboning.

Fri, 10/14/2011 - 15:37 | Link to Comment 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 | Link to Comment ZeroPoint
ZeroPoint's picture

So who is screwing who here?

Fri, 10/14/2011 - 15:02 | Link to Comment ptoemmes
ptoemmes's picture

Well, you asked...

 

http://www.huffingtonpost.com/2011/10/13/skydiving-sex-bakersfield_n_101...

 

Skydiving is a kind of bailout.

Fri, 10/14/2011 - 15:36 | Link to Comment 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 | Link to Comment Newsboy
Newsboy's picture

Cash out some more t-bills!

Fri, 10/14/2011 - 14:54 | Link to Comment 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 | Link to Comment Dick Darlington
Dick Darlington's picture

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

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

Indeed.

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 | Link to Comment 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 | Link to Comment 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 | Link to Comment kito
kito's picture

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

Fri, 10/14/2011 - 14:57 | Link to Comment ReallySparky
ReallySparky's picture

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

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

Another successfully baffled by bullshit. Winning. :P

www.youtube.com/watch?v=9QS0q3mGPGg

Fri, 10/14/2011 - 15:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment Bunga Bunga
Fri, 10/14/2011 - 15:04 | Link to Comment earleflorida
earleflorida's picture

define country?

Fri, 10/14/2011 - 16:14 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Yellowhoard
Yellowhoard's picture

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

http://www.youtube.com/watch?v=rSjK2Oqrgic

Fri, 10/14/2011 - 14:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Vincent Vega
Vincent Vega's picture

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

Fri, 10/14/2011 - 15:07 | Link to Comment knukles
knukles's picture

LOL  First rule of banker's fight club.

Fri, 10/14/2011 - 16:44 | Link to Comment NoClueSneaker
NoClueSneaker's picture

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

Fri, 10/14/2011 - 15:00 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment mynhair
mynhair's picture

Sell that PrimeX!

Buy them stawks!

AaaarrrrGGgggggg!

Fri, 10/14/2011 - 15:03 | Link to Comment zippy_uk
zippy_uk's picture

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

http://www.youtube.com/watch?v=djZFHTa6TfA

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

http://www.youtube.com/watch?v=djZFHTa6TfA

etc,etc..

Fri, 10/14/2011 - 15:03 | Link to Comment Deadpool
Deadpool's picture

Marshall Plan 2.0

Fri, 10/14/2011 - 15:03 | Link to Comment 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 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

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

 

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

Got to say it Dork.

"Holy Shit".

Erudite.

Succinct.

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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

www.geograph.ie/photo/76745

 

Fri, 10/14/2011 - 15:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Peter K
Peter K's picture

To paraphrase Al Pacino's character in the movie Scarface:
"No, FUCK YOU".

Fri, 10/14/2011 - 16:48 | Link to Comment 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 | Link to Comment jomama
jomama's picture

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

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

Eurozone´s charter?

Rules?

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 | Link to Comment Peter K
Peter K's picture

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

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

Going into the last hour, melt up anybody?

Fri, 10/14/2011 - 15:13 | Link to Comment 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".

http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...

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?

http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...

Fri, 10/14/2011 - 15:17 | Link to Comment 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 | Link to Comment pauhana
pauhana's picture

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

Fri, 10/14/2011 - 15:19 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment IveBeenHad
IveBeenHad's picture

carry on....

Fri, 10/14/2011 - 15:46 | Link to Comment 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 | Link to Comment mynhair
mynhair's picture

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

Ramp it!

Fri, 10/14/2011 - 15:41 | Link to Comment 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 | Link to Comment 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!

BUY BUY BUY...SQEEEEEEEEEEEEZE those shorts!!!

Fri, 10/14/2011 - 15:49 | Link to Comment 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."

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_14/10/2011_410895

Fri, 10/14/2011 - 15:54 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment chump666
chump666's picture

wall street is panic buying....

Fri, 10/14/2011 - 16:02 | Link to Comment 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 | Link to Comment AngryGerman
AngryGerman's picture

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

Fri, 10/14/2011 - 16:56 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Scalaris
Scalaris's picture

 

Downgrade-o-palooza


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 | Link to Comment Dick Darlington
Dick Darlington's picture

Awesome post!

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

If it were true.

Fri, 10/14/2011 - 17:06 | Link to Comment 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 | Link to Comment Scalaris
Scalaris's picture

Some Bloomberg article; reference cited for Allied Irish was from http://stress-test.eba.europa.eu/pdf/bank/IE037.pdf .

Fri, 10/14/2011 - 17:48 | Link to Comment 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 | Link to Comment 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 | Link to Comment polak potrafi
polak potrafi's picture

przetlumaczyc nie wiadomo po co

 

Translation:

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 | Link to Comment Apeman
Apeman's picture

SUDDEN DEBT???? WHERE ARE YOU? I MISS YOU!!! EVERY TIME THERE IS A POST ABOUT BELGIUM I SCROLL THROUGH THE COMMENTS IN SEARCH FOR YOUR AWESOME CAPS AND GREAT COMMENTS. SO EASY TO SPOT THOSE CAPS, ESPECIALLY IF SOME OF IT IS BOLDED. I LOVE YOUR CAPS, I MISS THEM. PLEASE COME BACK SUDDEN DEBT. PLEASE. HELLO? SUDDEN DEBT? HELLO... ? WITHOUT YOU I FEEL SO ALONE, LURKING ON ZH, TRYING TO LEARN SOMETHING ABOUT WHAT'S GOING ON IN THE WORLD. HELLO? SUDDEN DEBT? HELLO... ? ARE YOU THERE? HELLO... ?

Fri, 10/14/2011 - 19:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

http://stockmarket618.wordpress.com

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