Update: Germany Just Said, You Know It, Nein; Eurobeggars Continue To Be Choosers;

Tyler Durden's picture


Update: NEIN


Maybe the Italian football team should have bent over just a little.

* * *

Today's edition of the Eurosummit is over. There was some news, however, as always happens, there is a twist:


So beggars continue to be choosers, as Italy and Spain will not agree on getting aid (!) until Germany relents on buying their bonds. There was a reason why in the summer of 2011 we said that as the Game Theory equilibrium shifts to defection, he who defects first, defects best. Well, Greece is now leaps and bounds ahead of everyone as the global ponzi unravels. And so the posturing for second place is now on. We can't wait for the official German response, to both this, and to the loss by Italy in Euro2012.

EU leaders have agreed a package to stimulate growth in their economies, but Italy and Spain have refused to sign up to it because they want Germany to approve short-term measures to ease their borrowing costs first, EU officials said.


European Council President Herman Van Rompuy announced the 120 billion euros ($149 billion) deal at a news conference, saying it would consist of more capital for the European Investment Bank and project bonds for infrastructure.


But Italy, Spain and some other countries want the euro zone to agree steps to help bring down their high borrowing costs first, including steps to buy their government bonds in order to bring down yields.


"We're in favour of the growth pact and there is a deal on the content, but before we sign it we want a comprehensive deal including short-term measures," a Spanish government official said.


Another official said that France, the strongest backer of the growth pact, had also raised concerns about a deal in part because it does not want stricter measures on budget restraint to be introduced as soon as planned.

Essentially what Spain and Italy are saying is that someone has to buy or else. Well, someone will buy. At the right price. Dear PIIGS: here is a very simple lesson in economics:

What we also learned is that all that matters is tomorrow, the long-term is irrelevant. Which it is: when the Ponzi collapses one only hope to live day to day.

Peak idiocy.

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Thu, 06/28/2012 - 17:21 | 2571170 CClarity
CClarity's picture

Spain and Italy win their Euro cup games and now feel they can call the shots on growth pact?  Crazy!  Will they really "win" the bond buying demand?

If they're playing chicken, I don't just hear clucks.  Those are some cock-a-doodle-doos!

Thu, 06/28/2012 - 17:32 | 2571247 ilion
ilion's picture

I wonder is there anybody actually trading these idiotic markets these days? Besides Fed and other CBs of course.

Thu, 06/28/2012 - 18:17 | 2571361 gojam
gojam's picture

It's difficult to say because the water is too muddied.

Personally, I agree with sdharbinger in this article, that we are approaching the 'end game' now-


Thu, 06/28/2012 - 17:53 | 2571302 Divided States ...
Divided States of America's picture

The effin Italians got what they wanted from Germany today. Merkel ordered the German players to forfeit the Euro 2012 semifinals. Italians should stop whining already.

Thu, 06/28/2012 - 18:34 | 2571403 MillionDollarBogus_
MillionDollarBogus_'s picture


The Germans are pissed off now.

Don't bite the hand that feeds you.

Thu, 06/28/2012 - 20:18 | 2571681 walküre
walküre's picture

Sacre bleu, MY sack is blue.

MDB. You make sense!

Thu, 06/28/2012 - 18:01 | 2571327 macholatte
macholatte's picture




The can shall be kicked!

"So let it be written. So let it be done."

Thu, 06/28/2012 - 21:00 | 2571798 slewie the pi-rat
slewie the pi-rat's picture

shhh!  don't tell!

Thu, 06/28/2012 - 18:42 | 2571424 Peter Pan
Peter Pan's picture

The reality is that Greece is going to either leave or be thrown out of the Euro and deep down Italy and Spain want out as well. So they either get what they want or they walk. Mind you if they get away with it, the precedent will have been set for more blackmail in the future.

Thu, 06/28/2012 - 19:40 | 2571576 ghenny
ghenny's picture

I don't know what will happen tomorrow and certainly not over the next few months but I will bet you the Italians, Spaniards and French will find a way to drink from the German teat.  They are extremely adept at getting what they want.  Bailouts may be hidden behind other terms but bailouts there will be I can assure you of that.  Nobody has the guts to risk a Euro meltdown, not even the Germans.  Geithner and Bernanke will be behind the curtain orchestrating the cover up like the Wizard of Oz.

Thu, 06/28/2012 - 21:59 | 2571978 mjcOH1
mjcOH1's picture

The only way it'll happen is if the Germans agree to front the money with the funds actually being printed by the Fed.

The great debt roll-up to ever larger sovereigns continues.   In the end, the Fed will absorb all debts and print to infinity.  

Thu, 06/28/2012 - 22:21 | 2572039 Buck Johnson
Buck Johnson's picture

I think Spain and Italy (including France) won't get those bond deals.  Because Germany knows what it's all about.  They buy the bonds and continue to buy and sometime  in the very near future Spain or Italy or both say we need to change the rules to the bonds, the bond holders have to take a cut.  And so the 200 billion or more than Germany may have bought could be worth 20 billion that they are forced to take and no guarantee they may get that.  At least with the loans and such they have some form of control of getting their money back, but with the bonds they can get screwed.

Thu, 06/28/2012 - 17:19 | 2571179 stocktivity
stocktivity's picture

It's all Bullshit!

Thu, 06/28/2012 - 17:20 | 2571190 bdc63
bdc63's picture

... didn't you mean bullish? ...

Thu, 06/28/2012 - 18:08 | 2571343 Animal Cracker
Animal Cracker's picture

Is there a difference anymore?

Thu, 06/28/2012 - 18:45 | 2571427 Peter Pan
Peter Pan's picture

There has not been any difference between bullish and bullshit since Bernanke, Cramer and the networks started commenting on the economy since the GFC.

Thu, 06/28/2012 - 19:47 | 2571595 post turtle saver
post turtle saver's picture

Well, you can't spell 'bullshit' without 'bullish'

Thu, 06/28/2012 - 17:19 | 2571182 fourchan
fourchan's picture

lol penn and teller should do a magic trick based on the eu. like the cups and balls but bigger.

Thu, 06/28/2012 - 17:23 | 2571184 bdc63
bdc63's picture

Tyler, you know better than that.  This is not peak idiocy .... much, MUCH, MUCH more idiocy to come.



Thu, 06/28/2012 - 17:20 | 2571185 dick cheneys ghost
dick cheneys ghost's picture

A little less conversation, a litlle more PRINTING....

Thu, 06/28/2012 - 17:31 | 2571229 Ropingdown
Ropingdown's picture

Deficits don't matter....

Thu, 06/28/2012 - 18:00 | 2571308 CrashisOptimistic
CrashisOptimistic's picture

She said not in her lifetime.

That is the sort of slip that emerges from someone when they are mad and their innermost convictions are revealed.

It's not going to happen unless she is killed (which could happen).

Thu, 06/28/2012 - 19:08 | 2571481 walküre
walküre's picture

Sarajevo moment

Thu, 06/28/2012 - 19:25 | 2571531 THX 1178
THX 1178's picture

All these cons' inflation ain't satisfactionin' me...

Thu, 06/28/2012 - 17:20 | 2571192 icanhasbailout
icanhasbailout's picture

"Peak idiocy"? You ain't seen NOTHIN yet.

Thu, 06/28/2012 - 17:27 | 2571212 vast-dom
vast-dom's picture

Post Peak Post Idiocy, and then some......

Thu, 06/28/2012 - 18:31 | 2571398 Wakanda
Wakanda's picture

We are just beginning to explore idiocy.  Only one toe is wet.

Thu, 06/28/2012 - 17:20 | 2571193 czarangelus
czarangelus's picture

Don't worry, Germany. I'd be happy to accept your 120 bln Euro.

Thu, 06/28/2012 - 17:32 | 2571240 timbo_em
timbo_em's picture

Unfortunately, these €120 billion are only the headline number. 60 billion is leveraging up the EIB, another 55 billion are re-labeled funds. That's how we roll in the EU.

Nonetheless, Spain and Italy for the win. Afaik, Merkel doesn't even have the mandate from her coalition parties to support those insane proposals. Furthermore, have Rajoy and Monti actually thought this through? I'm pretty sure that secondary market purchases won't help them much.

Thu, 06/28/2012 - 18:54 | 2571445 CrashisOptimistic
CrashisOptimistic's picture

In other words, there is no new money and this is typical EU bullshit.

She said no and they will cut or they will die.

Thu, 06/28/2012 - 17:22 | 2571199 barliman
barliman's picture



Any idea on WHO is growing WHOM for WHAT?

120 billion euros is not enough for Spain ...

If they have to SHARE with Italy ................... Pffffffffffffffffffffffttttttt !!!!!!

It would not hold them through the end of next month.


Thu, 06/28/2012 - 17:34 | 2571254 The Reich
The Reich's picture

They are only going to shuffle various budgets thoroughly and rename them.

There is no additional money in it!


Hollande gets his moral victory within France as he makes good on his pre-election promise and Merkel attributes it as victory as there is no new German money involved.  A classical European farce!

Thu, 06/28/2012 - 17:22 | 2571200 The Reich
The Reich's picture

I wonder if this blockade tactics is going to work?

Thu, 06/28/2012 - 17:24 | 2571204 bdc63
bdc63's picture

you're being too generous.  this is nothing but a schoolyard game of chicken ...

Thu, 06/28/2012 - 17:25 | 2571205 Iconoclast
Iconoclast's picture

Spanish banks wrote €3 trl of loans to resi and commercial development and infrastructure, a conservative loss would be a 40% loss with further to go. Ergo Spanish banks need over €1 trillion as a patch..it's FUBAR, not worth debating. Yirrup needs circa €6 trl of recap to mend the fence and even that might be temporary..

Thu, 06/28/2012 - 17:47 | 2571289 timbo_em
timbo_em's picture

So those 120 billion are a good first step  (:

Thu, 06/28/2012 - 17:28 | 2571216 humblepie
humblepie's picture

In the meantime, the clock is still ticking, um, the bomb, I mean.

Thu, 06/28/2012 - 17:29 | 2571223 Sudden Debt
Sudden Debt's picture

And the bill? Give it to that fat guy eating sausages in the corner seat in the back...

Thu, 06/28/2012 - 17:29 | 2571224 midgetrannyporn
midgetrannyporn's picture

if the eu is going to suck the pigs shlong they better do it right. lulz

Thu, 06/28/2012 - 17:30 | 2571228 TheCanadianAustrian
TheCanadianAustrian's picture

In the eternal words of Peter Schiff, "The whole thing is ridiculous."

Thu, 06/28/2012 - 17:31 | 2571231 pschwammerl
pschwammerl's picture

Its over, like the EURO championships. Play your little finale, it wont matter.

Thu, 06/28/2012 - 17:31 | 2571232 YesWeKahn
YesWeKahn's picture

pigs play a better soccer it seems. They always take bulls and bears off guard.

Thu, 06/28/2012 - 17:34 | 2571252 o-antonio-maria
o-antonio-maria's picture

Have you heard about PIIGS r' US? Or even better PIIGSFUK r' US? The real fuckers have no nationality at all....

Thu, 06/28/2012 - 18:45 | 2571340 Snake
Snake's picture

Soccer is a rapid game of sinewy legs ... not a crude show of brute force.

Thu, 06/28/2012 - 17:31 | 2571234 VonSalza
VonSalza's picture

Shit is fucked up and Bullshit

Thu, 06/28/2012 - 17:36 | 2571256 walküre
walküre's picture

Merkel says: "Over my dead body" and boards the plane.

Thu, 06/28/2012 - 17:59 | 2571318 CrashisOptimistic
CrashisOptimistic's picture

THAT is the key.


That is the sort of thing that slips out when someone is angry and reveals their innermost conviction.  SHE WILL ALLOW NO PRINTING.

That is that unless they kill her.  Which they may.

Thu, 06/28/2012 - 17:50 | 2571266 magpie
magpie's picture

120 Billion € ?

What are they trying to save, a Spanish highway tollbooth...

Thu, 06/28/2012 - 17:39 | 2571271 Irene
Irene's picture

"We can't wait for the official German response, to both this, and to the loss by Italy in Euro2012."

Should be "German...loss TO Italy in Euro2012.:

Thu, 06/28/2012 - 17:54 | 2571305 walküre
walküre's picture

I'm only interested in Germany's response to the loss of the EURO.

Something like ... Good Riddance!

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