"The Euro Crisis May Last 20 Years" - The European Headlines Are Back

Tyler Durden's picture

In Europe, the "no news" vacation for the past month was great news. The news is back... As is Merkel.

  • "The Euro Crisis May Last 20 Years" - Welt

The first five years of the global crisis are over, investors flee from complex financial products and into gold, silver and commodities. Experts warn against a false sense of security. "We should not give us the illusion that the crisis will soon be over," says Patrick Artus of the French bank Natixis. Years of negative developments such as the growing debt, or the de-industrialization of specific sectors should now be reversed. "Such a process takes time." Arthur looks to get politically and economically unstable savers years. "Investors have to live with depressed markets and considerable fluctuations learn." In his view, it must not remain in a lost decade. "The euro crisis may also last 20 years," says Arthur.


  • German finmin: no new aid programme for Greece - Reuters

German Finance Minister Wolfgang Schaeuble said on Saturday that there were limits to the aid that could be granted to Greece and said the crisis-stricken country should not expect to be granted another programme."It is not responsible to throw money into a bottomless pit," Schaeuble said at a government open day in Berlin. "We cannot create yet another new programme."

  • Euro Countries Plan Strategies to Prevent Break-Up: Sueddeutsche (via Bloomberg)

Euro-currency area countries are evaluating a multitude of reform options, Sueddeutsche Zeitung reports, citing unidentified people with knowledge of the plans.

These are to be whittled down into a coherent strategy in the “coming weeks”. If Greece exits, members will boost plans to support other vulnerable countries. Options include increasing aid to Ireland and Portugal. ECB would consider supporting Italy and Spain through bond purchases. Greece’s new start would be supported by EU funding. These questions will be discussed “in the autumn”.

  • Deutsche Bank Among Four Said to Be in U.S. Laundering Probe - Bloomberg

Deutsche Bank AG (DBK) is among four European banks being investigated by U.S. regulators for alleged money-laundering violations, according to an attorney with knowledge of the matter. Federal regulators, including the U.S. Treasury’s Office of Foreign Assets Control, the Federal Reserve, the Justice Department and the New York District Attorney’s office are all involved in the probe of Deutsche Bank and three other European banks, said the attorney, who asked not to be identified because the investigations are confidential.

  • German Industry Group Head says No Place for Greece in Eurozone: WiWo  (via Bloomberg)

If Greece doesn’t meet IMF and EU requirements, it must leave the euro, Hans-Peter Keitel, president of Germany’s BDI industry federation, says in an interview with Wirtschaftswoche magazine. Keitel previously said Greece must stay in the euro at all costs: WiWo

Keitel says clear progress is being made in combating the euro crisis. The German federal government is not ambitious enough in its savings program, Keitel says.

  • German Taxpayer Association Head Criticises ESM: Euro am Sonntag (via Bloomberg)

Rainer Holznagel, head of German taxpayer association, says payment of Spanish bank debt would require 3% VAT increase in Germany, Euro am Sonntag reports, citing interview.

ESM reduces the rights of the German parliament and the independence of nation states, Holznagel says: Euro am Sonntag

  • Bundesbank Vice-Head Opposes Schaeuble’s Banking Proposal: WiWo (via Bloomberg)

German Finance Minister Wolfgang Schaeuble’s proposal to separate traditional banks from their investment banking units isn’t possible, Bundesbank Vice- President Sabine Lautenschlaeger tells Wirtschaftswoche magazine.

Both types of banks would still be dependent on market confidence, Lautenschlaeger says. Lautenschlaeger favors an investigation into the relationship between lenders and those banks which trade in unregulated financial products.

  • Westerwelle Opposes Relaxing Greek Aid Terms: Tagesspiegel

Relaxation of the agreed on terms for Greek assistance would be misunderstood by countries such as Spain, German Foreign Minister and FDP member Guido Westerwelle told Tagesspiegel am Sonntag in interview.

Spanish prime minister would have difficulty passing reforms in parliament if terms were eased for Greece, Westerwelle says. Westerwelle gives his "solidarity" to the people of Greece. Greek Prime Minister Antonis Samaras to visit Berlin on Friday

And just to prove that Europe's beggars continue to refuse to get the memo...

  • Spain says there must be no limit set on ECB bond buying - RTRS

The European Central Bank must take forceful and unlimited steps to buy sovereign debt to help Spain reduce its refinancing costs and eliminate doubts over the euro zone's future, Spain's economy minister said in comments published on Saturday. "There can be no limit set or at least (the ECB) can't say how much they will use or for how long," when it buys bonds in the secondary markets, Luis de Guindos told Spanish news agency EFE.


  • France Favors Greece Rescue Package, Opposing Germany: Welt (via Bloomberg)

France and southern European nations are in favor of a third rescue package for Greece should it prove necessary, Welt reports, without saying where it got the information. Germany rejects a new rescue package. Germany opposes giving Greece more time to enact cost cuts. Preparations underway for Greece possibly leaving the euro. Main consideration is how to protect other euro crisis countries from the fallout.

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Robot Traders Mom's picture

Fuck man, break up and move on Europe!


CharlieSDT's picture

People over here are still in denial!

Overall, I have been surprised this summer in Europe how many people I have spoken to who appear quite intelligent that have no understanding of the amount of shit that the Eurozone is in right now. I kept hearing these Eurotards saying something like,

The Euro will be ok, they just need to contain the crisis and everything will be fine. French people will continue to be able to work 35 hours weekly and take the summer off for their country house and there will be permanent peace and prosperity in Europe despite the continent’s 2000+ year history of war, genocide, and financial Great Devaluations. But now, we have finally changed human nature and solved all those pesky problems, and of course the world center of that historic accomplishment is of course…

Brussels! The home of the Eurotards. 

slewie the pi-rat's picture

not to mention the possibility of risk0ff b4 kwanZa, now

...remote possibility

Element's picture

"beautiful delevering" = the one that hasn't even gotten rolling yet.


GetZeeGold's picture



Dammit Jim....I'm a doctor....not a miracle worker.


Hype Alert's picture

I guess that's why they haven't been saying Europe isn't Japan.  And we're not Japan.  We don't have to be to have 10-20 years of going nowhere.  They've been saying it for 4 or 5 years now so we've only got 5-15 more of hearing it.

Manthong's picture

By then the Euro will be at parity..

to the yen.

Offthebeach's picture

Well, two world wars and a cold war make a messed up monetary union seem small potatoes.

hansg's picture

That's because this is the story that is constantly repeated in our media. If you just read normal newspapers, watch normal TV, etc. you would never know anything is wrong at all! Just a few days ago we had this article: "De Jager sees signs of Eurozone leaving crisis behind". He mentions a few doubtful positive signs (trade imbalance), a few outright lies (eurozone government debt decreasing in general and economic recovery), and completely ignores unemployment or the situation in the housing market, to name just two. He says Greece is the problem child of the eurozone, while Italy and Spain are recovering and Ireland and Portugal are doing well.Riiight...

This guy is our finance minister, the man who told us Greece would pay its loans back to the last cent including interest. I imagine that will be written on the sign beneath his feet when the day comes: "every last cent, including interest"... :-(

In the Netherlands, at least, there is a strong incentive to keep the true situation out of the media, at least until the elections of september 12th. Our media wants nothing more than Wilders and his Freedom Party to fail, and he is running on a very strong anti-EU program. Afterwards? Who knows...

yrad's picture

"Federal regulators, including the U.S. Treasury’s Office of Foreign Assets Control, the Federal Reserve, the Justice Department and the New York District Attorney’s office are all involved in the probe of Deutsche Bank and three other European banks, said the attorney, who asked not to be identified because the investigations are confidential."

Enough said..

diogeneslaertius's picture

yes, EU is a false, impossible construct designed to fail and create these effects


but it is that very reason for which they will continue to keep it alive

Ghordius's picture

you don't have much meat on that bone of faith

false, impossible construct designed to fail

sounds like you are talking about a magical golem and that you really know what you are talking about

and nevertheless you mention the other organization

slaughterer's picture

Thank god my countrymen are back with their NEINs.

max2205's picture

Rinse and repeat....and repeat....and repeat

ShortTheUS's picture

You missed one:


*DJ Greek Budget Gap Bigger Than Thought - Spiegel

Joebloinvestor's picture

Then there is CNBC:



Yeah, give Greece (the lamprey eel of the EU) another couple of years and everything will be "hunky dory".


falak pema's picture

club Med + Hollande at loggerheads with Merkel. Greece restructure now bone of contention. Draghi + FED turning on the steam against Germany inc. (Karsruhe, Bundes, Merkel). 

September showdown will be awesome; all the more that Obammy wants to get elected and Nettyyahoo wants to go to war! 

apberusdisvet's picture

Interesting that in his most recent KWN interview, Ben Davies says that this coming Monday may be  a big game changer for the European agenda.  The dots: they are connecting.  Those who don't believe that all of the global fiat will be on steriods soon, is either naive or delusional.  Keep stacking.

slewie the pi-rat's picture

somebody actually said that the day after tomorrow something important may happen?

how long have you been like this?

try the bong and see if this helps too?  :>  angela meets dVader

Atomizer's picture



World Economic Outlook (WEO)

Growth Resuming, Dangers Remain|April 2012

-Soow groff, markits en skiophrenic kryseus.


World Economic Outlook Update

New Setbacks, Further Policy Action Needed |July 16, 2012

-Dewapuating Kountrwee’s, more Soow groff

 Oliver Blanchard Twist is a funny man. Stand up comedy is his future vision.

buzzsaw99's picture

"They" say something different every day.

Anyway the wind blows, doesn't really matter to me, to me.

_ConanTheLibertarian_'s picture

That Spain minister is really getting desperate. Hijo de puta!

no life's picture

I would like to see these fruitcakes finally crater for good..

booboo's picture

."It is not responsible to throw money into a bottomless pit," Schaeuble said at a government open day in Berlin. "We cannot create yet another new programme."

I see a pattern developing here, say one thing, do another. Good cop, bad cop. Make the bears believe "this is it" and pull a Jackson Hole on a Sunday night. Of course this only works for so long and then once everyone is convinced that the Benanke/ECB/EMF Put is etched in stone...BAM! The bulls are riding the express elevator to Hell Lehman style.



tahoebumsmith's picture

How about the truth? Spanish unemployment continues to rise, Greece has come back to the well after exhausting the funds from their third bailout, Spanish debt 3x larger then predicted, Germany grinds to a halt, UK enters double dip resession, France's economy in free fall, Italy next up in the bailout demands, ECB takes Bernankes approach and starts their own European monetization Ponzi scheme, civil unrest in the EU has only just begun, Austerity measures cause GDP to shrink, Draghi hoodwinks Western World with unsustainable lip service, total EU Debt rises in the wake of Austerity measures, Merkel succombs to Global Banking Cartel's demands, property values throughout the Eurozone continue to plummet... I could go on all day! All that has really happened in the Eurozone is more Debt has been added to the debt crisis which means when the chips start falling, there will be no chance to stop them.

boiltherich's picture

Junker says this morning that a Greek exit "will not happen." http://www.cnbc.com/id/48712018

Schaeuble says no new aid, Westerwelle says no lessening of the current harsh austerity terms. The German people say NO debt sharing fiscal union.

Put these statements together and what you have is a core Eurozone (the German speaking core of the zone) telling Greece, and by extension the rest of the periphery, that they are fucked. You can't leave and you can't get more help, and Germans will oppose any attempts by the ECB to print the problem away, while several others like Finland are threatening to walk away if there is any more bailing of the periphery or core nations riding roughshod over individual national sovereignty.

This absolutely sounds like somebody is going to be violently disappointed given the conflicting nature of all these statements and problems. The longer this goes on the more damage the euro nations are doing to the wider EU treaties, the UK is seriously considering dumping the entire Maastricht project and common market. No EU means no Schengen Agreement, this could devolve badly to realignments that bode ill for the whole world. Especially if a reunited Germany is pushed toward Russia because of energy issues and Russia (Putin) would be more than happy to do anything that would help destabilized the western alliances.

diogeneslaertius's picture

plenty of articulate foreground analysis

diogeneslaertius's picture

people will still be debating the existence of a bullet long after it has irreprably damaged a vital organ

poor fella's picture

"Spain says there must be no limit set on ECB bond buying"

I don't mind all the infinite free money, but EVERYONE should get some. It's common sense. You don't bring a pizza to class unless there's enough for everyone.


Hulk's picture

I'm glad that I spent the time, over the past 4 years, to understand just what it is the fuck that is going on, financially and worldwide, but goddamn it, I'm ready to cut my internet connection and just let these fools play this thing out, until they can't any longer...

Joebloinvestor's picture

If they keep bull shitting they can make it last 200 years.

Dr. Sandi's picture

Not likely.

"You cannot change the laws of physics."

 -Montgomery Scott

Joebloinvestor's picture

Physics never delt with politics well.

Just look at how Feynman was treated on the Rogers commission.

If that were the case, the EU would have never let the deadbeats in.

The Reich's picture

Greek deficit raises €10m per hour!

slewie the pi-rat's picture

i bin tryin 2 tell ya:  they are ready for statehood!

Getting Old Sucks's picture

Didn't even read past the headline or comments.

Finally a headline that speaks the truth.  Just put it all to bed and when the EU actually starts to break up, wake the story up.

Ungaro's picture

Greece is a side show. The main event is Germany: if Greece defaults/leaves the Euro, the German banks and taxpayers pick up the tab. With their economy sputtering, that would be a death knell. If Germany would leave the Euro (currency) and switch back to DM, the DM would markedly appreciate vs. EUR and their export-driven economy would nose dive.

Therefore, Germany wants to save the Euro but at someone else's expense. Dr. BS (Ben Shalom) Beranke to the rescue! Would it be ironic if after nearly exterminating the Jews, it would be one to save the Fatherland?

Element's picture

The most striking thing about these headlines is that they will say exactly the same thing tomorrow, just with different speakers, and in a different order, ... and the next day... and the next ...

I mean, look at what they're saying, today.

It's like if they can just keep saying it then it won't crystallise into an actual unmanageable emergency.

Shelby Moore III's picture

Conflicting official statements should bring back the volatility (VIX up). Labor Day should usher in the volume.

markar's picture

I'll tell you what will happen just before the bullshit stops and the real shit is about to hit the fan --massive coordinated central bank intervention with swaps, money printing,bank bailouts,bond purchases--once last ditch effort to keep it together. Then it will collapse anyway as EU disintegration, hyperinflation, riots, wars, etc. kick in. I give the charade another year max, and 1-2 years after that complete collapse and chaos. It's way too late to fix this.

Keep stacking.

FiatFapper's picture

It’s amusing reading these proletariat comments; when will the lower echelons of society realise the game is rigged.

There is no left/right, democrat/republican ideology – we (the financial pigs with our snouts in the public trough) own your politicians.

Keep thinking the regulators are there for your good, they are a toothless quango at the behest of our whim.

Money is an illusion, but it’s important to make you think there’s a market so we can enslave you as serfs for perpetuity.

Trust me, for every PFG/MFG, there are hundreds more flying beneath the radar, silently stealing your monies. If they’re exposed, we’ll just placate the sheeple by offering a lamb to the slaughter, some guy called Jeff who worked in the back office – that should appease the mumbling contempt.

There is no law, we write the law.

When you have no monies left, we shall require the virginity of your daughters, tis what we have done for generations.


Sockeye's picture

"France and southern European nations are in favor of a third rescue package for Greece should it prove necessary"

Of course they are. Doh!

I am on to you's picture

Europe(the union) was a misfoster since it were born,it will always be sick monster!

ekm's picture


Today, Juncker:

Exit of Greece is "techically possible" but "politicaly unthinkable".