This page has been archived and commenting is disabled.

Europe's Bailout Costs In One Chart: €2 Trillion And Counting

Tyler Durden's picture


This chart, better than any we have seen so far, summarizes just how much has been injected already to preserve the Eurozone from collapse.

This is what is known as a sunk cost, because last time we checked (and just as we explained back in March at the market highs when everyone was euphoric that Europe is now fixed) nothing has been fixed, and Europe is one 'rogue' democratic vote away from an EMU exit, and thus oblivion (or so they said last year, now everyone is prepared for a Greek departure, or so they say now, expect for the Greeks of course - they go straight to the 10th circle of hell and do not pass go). The truth is that by the time the status quo finishes its extend and pretend game, which incidentally has only one real outcome, the €2 trillion spent to date, will be orders of magnitude higher...

Source: Brandywine Global High Yield Perspectives


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 06/03/2012 - 12:00 | 2489152 Jim B
Jim B's picture

They should have just let the banks go down and restructure... period! 

Sun, 06/03/2012 - 12:03 | 2489159 LuKOsro
LuKOsro's picture

What`s 2 trillion nowadays ?

Sun, 06/03/2012 - 12:12 | 2489174 nope-1004
nope-1004's picture

When I was a kid, 2 trillion was a lot of money.

Today?  Meh...

The dollar amounts are getting bigger, the bankster urgency increasing, yet overall economic health deteriorating.  Geeze.... does anyone else see a pattern here? 


Sun, 06/03/2012 - 12:22 | 2489204 Bay of Pigs
Bay of Pigs's picture

"its official zerohedge has jumped the shark. it is now just simply another fear mongering alternative news outlet"



Sun, 06/03/2012 - 12:26 | 2489223 DoChenRollingBearing
DoChenRollingBearing's picture

A quick quintillion to you too, Bay!  LOL...

Sun, 06/03/2012 - 12:45 | 2489262 SHEEPFUKKER

Who wants to be a trillionaire?

Sun, 06/03/2012 - 13:37 | 2489361 Oh regional Indian
Oh regional Indian's picture

Got to admit trillionaire rolls off the tongue nice and easy.



Sun, 06/03/2012 - 16:12 | 2489729 Manthong
Manthong's picture

The next trillion dollars of central bank liquidity ought to hold off collapse for at least a month.  

Sun, 06/03/2012 - 22:04 | 2490562 Harlequin001
Harlequin001's picture

what, until we start knocking it off every bank notes twice a year?

and people think $50,000/oz is high for gold...

Sun, 06/03/2012 - 16:14 | 2489735 slewie the pi-rat
slewie the pi-rat's picture

deathMatchTM troll-we-can't-bear?


Sun, 06/03/2012 - 14:46 | 2489490 resurger
resurger's picture

"soooo fucking baaaaaaaad"!

Bruno Mars suxxxxxxxxx


Sun, 06/03/2012 - 15:26 | 2489592 Amish Hacker
Amish Hacker's picture

I don't think I ever used the word "trillion" until a few years ago. I had heard of it, of course, but it was rarely used, more like a theoretical amount. I grew up saying "million", then at some point learned to say "billion," and now I'm looking ahead and starting to practice saying the Q word without laughing---or crying.

Sun, 06/03/2012 - 16:15 | 2489736 you enjoy myself
you enjoy myself's picture

reminds of when Obama, a couple of years ago, championed a ridiculously cynical effort for the Cabinet to find $100M in cuts.  Obama, and anyone even remotely familiar with our current expeditures, knows $100M is a freaking rounding error - but he literally focus-grouped that number and found that people thought it was a really, really big sum of money.  and that it must mean he was serious about cutting spending.   how sad that Govt spending has mushroomed so much over the last 2 decades that some people aren't even aware of what order of magnitude we're now dealing with.

Sun, 06/03/2012 - 15:36 | 2489624 JeffB
JeffB's picture

That'll be lower middle class soon enough.

Sun, 06/03/2012 - 13:12 | 2489218 DoChenRollingBearing
DoChenRollingBearing's picture

@ nope

+ $1,000,000,000,000,000,000


Quintillion, trillion, schmillion!

Sun, 06/03/2012 - 12:43 | 2489258 The trend is yo...
The trend is your friend's picture

Long live INK

Sun, 06/03/2012 - 13:12 | 2489318 ISEEIT
ISEEIT's picture


Nothing more true ever spoken.

You are living it.

Sun, 06/03/2012 - 15:46 | 2489649 JeffB
JeffB's picture

Great article.

Much wisdom in that article, but Frédéric Bastiat's quote especially jumped out at me:

"bad economists look only at the immediate, seeable effects and ignore effects that come later, while good economists are able to look at the immediate effects and foresee effects, both good and bad, that come later."

Unfortunately, I think we have a destructive feedback loop when we start honoring economists like Bernanke and Krugman who both fall into that former category.

Sun, 06/03/2012 - 13:40 | 2489366 Peter Pan
Peter Pan's picture

When I was a kid clculators could not take so many zeroes and even now I could not find a calculator with 16 digits locally so I had to order one through E Bay. It's scary how the more zeroes we add the closer to zero we are getting.

Sun, 06/03/2012 - 13:53 | 2489394 JohnG
JohnG's picture

Scientific notation works easier.

Sun, 06/03/2012 - 14:43 | 2489482 Peter Pan
Peter Pan's picture

Brilliant! The problem however is that the bankers really get excited with each new zero added. When the Italians went to the Euro and had to drop their zeroes it caused a great deal of distress to would be millionaires.

Sun, 06/03/2012 - 14:39 | 2489474 resurger
resurger's picture


Sun, 06/03/2012 - 23:13 | 2490703 StychoKiller
Sun, 06/03/2012 - 12:20 | 2489203 CommunityStandard
CommunityStandard's picture

Pretty soon we'll be throwing the word quadrillion around.

Sun, 06/03/2012 - 16:02 | 2489704 piliage
piliage's picture

We'll end up at Cal Worthington math soon and start using Jillion.

Sun, 06/03/2012 - 13:18 | 2489330 Sam Clemons
Sam Clemons's picture

Just imagine how expensive this collapse would be if we didn't spend $2Trillion "stopping" it.

Sun, 06/03/2012 - 20:49 | 2490396 mailll
mailll's picture

2 trillion? It's only (printed) money.

Sun, 06/03/2012 - 15:53 | 2489513 Soul Train
Soul Train's picture

So a trillion is 1012

It gets real interesting when the Treasury starts calling it sextilllion  1021.

Have you ever noticed that no matter what inflation does, the most American sheople can bring back in the USA without declaring is a paltry $10k ? How many years has it been since this has changed? Do you know? Do you care? What can you do about it? Write your Congress'person'? Ha ha ha. Like that'll get anything done.

Talk about doormats while reentering their homeland ! American citizens have their balls cut off anymore/. The sheople are afraid to talk in their land of the 1st amendment, ha ha ha. ZH and its readers are the last of the real Americans - no fear to speak up, unlike all the rest of the sheople afraid of their own shadows.

Anyway, this next depression in the USA will be better than anything Jenny Craig could have helped the big lard asses with. Obama - what a farse! Electing that narcissist tells you a lot about where America is in their evolution.

Change you can believe in. LOL.

Buy gold and silver - physical. Pray to God everyday. Eat healthy. Help others. Try and just stay content with being good and count your blessings.

Meanwhile, watch the zoo governments in Europe and the USA tell lies and distort. Blow smoke up sheoples' asses on the federal media cable tv, (which the sheople pay huge $$$ for on their monthly bill, listening to fed soundbites, terrorist alerts, wall street propaganda spin- CNBC etc, and all the while watching countless adverts). Hey, CNBC, how about following up with Goldman Sachs on the propaganda piece that you helped facilitate back in March ?

 Poor sheople gotta pay the cable bill to watch NBA, college hoops and Football (used to be free on the major three networks ....) That vanished - they did a pretty good job of that too! I remember when cable first came out, the big promotion was that it was commercial free, then it started just a few ads, then before you knew it continually spam. Sheople don't seem to mind, they have their remote control to fly through the channels with. Attention span to about 9 seconds I read somewhere....

Ever awakened early in the morning like around 4am, and turned on the TV to find some solice and entertainment? Heck, there is nothing on but infomericals! Why are we paying a cable TV bill to watch station after station of informericals !!!!

I CALLED MY CABLE COMPANY ! I told them, I just want to buy 5 or 6 stations at most - the ones I watch, and the rest I don't want to pay for. Answer: We don't do that.

My reply:  I told them to turn it off, I just want my internet. It[s great - no more BS TV and no more of that manic depressive Cramer mouth off.

Now, I tune into ZH to learn the truth, help to think on our own, and give me the honest insights from the Fight Club Tyler et all to keep what money I have safe.

Let me offer this. I feel good to own gold and silver coins. It is always there. I also like to have currency available. Real paper bills. When the shit hits the fan, some paper will be good to have too. Don't think that bank runs can't happen in the good ol USA.

I remember back in 2008, my credit card issuer sent me a notice telling me that my credit limit was being reduced from $25k to $12k. I called them and asked why? I pay my balance in full every month, I have no debt, etc. The reason was of course that their own credit line were being reduced and the big squeeze to the sheople was on.

Don't think for a second that a paradigm shift in the way our financial system works is not around the corner.

Bottom line: buy physcial gold and silver now. Even if just some pre '65 silver quarters and dimes, it doesn't matter. The important thing is to start now, and keep adding to your savings.




Mon, 06/04/2012 - 10:17 | 2489690 JeffB
JeffB's picture


Check out the video of this guy who had the "misfortune"(?) of marrying a French woman. They are now subjected to Homeland Security mandates that she be fingerprinted and biometrically scanned every 10 years or be kicked out of the country.

A preview of things to come in America

Or this lady, who worked for the CIA in negotiating with Iraq, and Libya among others, but was viewed as a threat because she had delivered warnings about attacks on the World Trade Center using hijacked planes to John Ashcroft among others, and the government wanted to deny they had any clue about such a possibility whatsoever.

CIA WhistleBlower EXPOSES Everything! "Extreme Prejudice"

(You can skip the intro by moving to about the 7 min. mark.)

Sun, 06/03/2012 - 22:44 | 2490646 cranky-old-geezer
cranky-old-geezer's picture



2 trillion euors created out of thin air, used to buy more government debt paper that ends up on ECB's balance sheet sooner or later.

No, there won't be any government defaults.  Central banks will print however much currency has to be printed to keep buying more government debt so governments can keep operating (with horrible mismanagement, waste, and fraud).

But there will be currency collapse.  The euro is doomed.

US dollar is doomed too, since Bernanke will do the same thing here, keep printing and buying more government debt.  Oh yes, it'll end up on Fed's balance sheet sooner or later.

You have to get your wealth out of US dollars and dollar-denominated assets like bank accounts, bank CDs, insurance policies, annuities, etc.

Unfortunately you can't get your paycheck out of US dollars.  As time goes along you'll be working for less and less as the dollar drops in value.


Sun, 06/03/2012 - 12:01 | 2489154 malikai
malikai's picture

Does this chart mean its time to BTFD?

Sun, 06/03/2012 - 12:31 | 2489231 prodigious_idea
prodigious_idea's picture

Perhaps but, if you believe the economic signals, only for one last swing trade.

Sun, 06/03/2012 - 13:13 | 2489320 ISEEIT
ISEEIT's picture

Not yet.

But soon:)

Sun, 06/03/2012 - 16:02 | 2489706 JeffB
JeffB's picture

Don't know if that's possible.

Goldman Sachs already bought him.


Sun, 06/03/2012 - 12:01 | 2489155 MsCreant
MsCreant's picture

Moral Hazard in One Chart

Sun, 06/03/2012 - 12:03 | 2489160 Caviar Emptor
Caviar Emptor's picture

2 Trillion? We can pull that out of any orifice you'd like us to.........Sincerely, World Banking Cabal

Sun, 06/03/2012 - 13:09 | 2489311 Tsunami Wave
Tsunami Wave's picture

With the ESM coming online on July 9th, with supposedly US$1tn to spend permanantely to bail out out European countries... it will probably become completely insolvent the next day.

Sun, 06/03/2012 - 13:53 | 2489393 Badabing
Badabing's picture

2 Trillion? We can pull that out of any orifice you'd like us to.........Sincerely, World Banking Cabal


sure but can you work for it?

Sun, 06/03/2012 - 12:05 | 2489165 derek_vineyard
derek_vineyard's picture

alex,  europe bailout for $2 trillion

Sun, 06/03/2012 - 12:31 | 2489230 DoChenRollingBearing
DoChenRollingBearing's picture

Where did the money come from, Alex?

Sun, 06/03/2012 - 12:47 | 2489266 Dapper Dan
Dapper Dan's picture

That is my current family/friend gathering, conversation ice breaker,

"Where does the money come from to bail out all of these bankrupt countries?"

Deer in headlight look follows.

The link below is what I will direct them to from now on.

The new film "End Of The Road" has just been released for public viewing, featuring CEO Mike Maloney alongside Peter Schiff, Jim Rickards, Jim Puplava, James Turk, Eric Sprott and more.!

Sun, 06/03/2012 - 13:29 | 2489347 j0nx
j0nx's picture

Bad link.

Sun, 06/03/2012 - 14:17 | 2489441 Bay of Pigs
Sun, 06/03/2012 - 14:34 | 2489469 poldark
poldark's picture

This video has been removed by the user

Sun, 06/03/2012 - 12:50 | 2489276 Sudden Debt
Sudden Debt's picture

How ridiculous can somebody feel when you argue with the misses that those shoes costed 400 euro and that's a bit much for a set of shoes...

2 trillion...

And probably that money will run out in 2 years.... Again...

Sun, 06/03/2012 - 13:20 | 2489333 DoChenRollingBearing
DoChenRollingBearing's picture

And the cycles cycle and the circles turn.  Ever turning, rolling...  Reminds me of me!

Sun, 06/03/2012 - 12:10 | 2489180 Zero Govt
Zero Govt's picture

that's €2 Trillion of "stability" ..or debt to use the old terminology

and to think the ECB's Stress Tests 1 & 2 passed these banks.. can we round-up all the bean counters for a mass execution please?

Sun, 06/03/2012 - 13:57 | 2489403 Things that go bump
Things that go bump's picture

That is coming soon enough.  Sadly, they are not the actual problem.  

Sun, 06/03/2012 - 18:06 | 2490014 Zero Govt
Zero Govt's picture

let's deal with one execution, sorry 'problem', at a time please

first up is the trans-European bean counters that made more than a blotting error on the ECB's Stress Tests... they were only 'out' by €2 Trillion (and counting......!)

Darwin is not just for the animals, our blades are ultra-sharp, the bean counters knecks are scrawny, this evolutionary culling won't take long at all

Sun, 06/03/2012 - 22:01 | 2490554 Things that go bump
Things that go bump's picture

You are right, of course.  Just following orders didn't work for the Nazis either.  

Sun, 06/03/2012 - 12:10 | 2489181 Hulk
Hulk's picture

"Barney, why don't you just print 3 trillion for the IMF and make it count?"  -Kyle Bass (said in exasperation)

Sun, 06/03/2012 - 12:16 | 2489192 Caviar Emptor
Caviar Emptor's picture

Been calling for a 10Trill Bazooka for over a week now. What the world needs now is shock n awe, baby! /sarc /Shadenfraude

And this time they won't have to get on hands and knees and beg like Hanky Paulson did, cause everyone's a zombie from all the moral hazard that's permeated every economy from top to bottom like smack. Everybody, even billionaires, feel like somehow they're dependant on the global central sun king for their further existence. 

Sun, 06/03/2012 - 12:23 | 2489212 valley chick
valley chick's picture

"trillion" is so 2011....think "quadrillion" for 2012...

Sun, 06/03/2012 - 12:25 | 2489222 Caviar Emptor
Caviar Emptor's picture

You'd have to clear that through the Timmah and Jamie

Sun, 06/03/2012 - 12:28 | 2489227 DoChenRollingBearing
DoChenRollingBearing's picture

Green to all comments on Hulk's subthread...

Sun, 06/03/2012 - 12:33 | 2489238 Hulk
Hulk's picture

And green to DCRB for being able to think clearly despite have a hole in his head where his brain should be !!!

Sun, 06/03/2012 - 12:51 | 2489280 Kayman
Kayman's picture

Hulk- so you've been peeking into DoChen's cone.  Shame on you.

Sun, 06/03/2012 - 14:20 | 2489285 Hulk
Hulk's picture

comment removed due to its ambiguous meaning

Sun, 06/03/2012 - 12:33 | 2489239 narnia
narnia's picture

I doubt we see the big bazooka before the crisis.

Sun, 06/03/2012 - 12:40 | 2489253 Kayman
Kayman's picture

 "get on hands and knees and beg like Hanky Paulson"

Naw... "give $700 billion to my crew or I plug the kid".  Fixed it fer ya. 

Sun, 06/03/2012 - 14:05 | 2489420 Badabing
Badabing's picture

Naw... "give $700 billion to my crew or I plug the kid".  Fixed it fer ya. 

that $700 billion was 4 years ago wonder how much it takes now?

Sun, 06/03/2012 - 14:51 | 2489500 Whoa Dammit
Whoa Dammit's picture

Someone in authority needs to tell them "Go ahead, make my day." instead of rolling over to their continuous blackmail.

Sun, 06/03/2012 - 15:47 | 2489658 MsCreant
MsCreant's picture

Everyone in authority IS the problem.

Sun, 06/03/2012 - 16:08 | 2489722 JeffB
JeffB's picture

The fantasy is a lot less frightening than the reality.

So most choose to believe the fantasy, despite the absurdity.


Sun, 06/03/2012 - 12:10 | 2489183 veyron
veyron's picture

The ECB may need a few more printers and some more ink ...

Sun, 06/03/2012 - 12:23 | 2489213 misterc
misterc's picture

Maybe the government should tax everyone 100% and hand out some pocket money? Would that be a viable solution?

Sun, 06/03/2012 - 12:54 | 2489287 Kayman
Kayman's picture


Don't give the parasites any ideas.

Sun, 06/03/2012 - 15:13 | 2489416 Things that go bump
Things that go bump's picture

That's no joke.  In the UK they were considering just that.  The plan was for employers to send everyones' entire paycheck to their version of the IRS.  They would then take what was theirs and disburse the remainder to the employee's.  What could go wrong?

Sun, 06/03/2012 - 14:23 | 2489452 scatterbrains
scatterbrains's picture

I keep wanting to believe that they couldn't possibly really be planning to extract the wages of the working man until he is near starved and broken, and for that privilege, once the banksters balance sheets are fully restored, come back and buy the working man's assets for mere pennies on the dollar at deep depression lows triggered by their crushing the working man in the first place... but I know it's true.. signs of evil corruption are everywhere.


Sun, 06/03/2012 - 12:23 | 2489215 Imminent Collapse
Imminent Collapse's picture

A trillion here and a trillion there and pretty soon we are talking about some serious money.

Sun, 06/03/2012 - 12:25 | 2489219 spondoolix
spondoolix's picture

It's time to start using scientific notation when mentioning an amount of money in a blog or article.  It will be shorter than $100 quadrillion


good luck,


Sun, 06/03/2012 - 12:36 | 2489246 Halobitt
Halobitt's picture

Scientific notation might be the best way, especially when folk can't even agree what a billion is. 

A game of billiards will never be the same again.

How big is a billion? - Numberphile


Sun, 06/03/2012 - 12:26 | 2489224 zilverreiger
zilverreiger's picture

2 000 000 000 000 / 331 962 860 --> 6 025
this american english axis bubble and euro crisis cost us all 6k already, probably 12k for neuro citizens, we're such generous slaves.

Sun, 06/03/2012 - 12:29 | 2489229 Glitch
Glitch's picture
Everybodys got 2 pennies, here's mine. All this Euro kabuki theater is about consolidation of power and control. In the end, Spain will be to the Euro what Alabama is to the US dollar. France will be to Europe what Vermont is to the United States. Etc, etc.. While it may be hard to say exactly how in control the boys are on any given day, you have to wonder if this supposed failing of the Euro wasn't planned the whole time. I don't know if Greece will leave the Euro as they could just let Athens burn to the ground if that's what it takes to gain the political support of the rest of Europe for a centrally controlled banking system. And that's what they need, the political support and the're going to get it sooner or later. Just keep turning the screws tighter and the people of Europe will beg for it having been led down the path not unlike how an animal trapper will adjust the trail to lead it's prey into the trap. Here's an article off of reuters this morning. If you read it, read the whole thing cause right near the bottom they tell ya exactly what the boys are working towards. I tend to think they know exactly what their doing as opposed to the chaos on the surface. Am I absolutely positive of that? No.
Sun, 06/03/2012 - 12:38 | 2489250 DoChenRollingBearing
DoChenRollingBearing's picture

That was an interesting article.  I do have to say, however, that it is HARD keeping up with all of those Euro-acronyms: ECB, ETSF, EP, LTRO, Exxx, Eyyy, Etc.

Sun, 06/03/2012 - 13:00 | 2489296 Kayman
Kayman's picture

" if this supposed failing of the Euro wasn't planned the whole time. "

Devious, yet plausible. But, again, with our self-appointed banking elite, highly probable.

Imagine all the wealth your can obtain, when you can create the illusion that second hand toilet paper has value.  Ain't banking great ?

Sun, 06/03/2012 - 15:11 | 2489540 blindman
blindman's picture

who is the european version of abraham
lincoln? and will he/she be assassinated before
he is appointed? the federalization question
in conjunction with the north south disparities
and imbalances suggest the question. the other
thing is they have lived through many wars already
and are knee deep in financial fraud, shadow
finance and tax evasion, not to mention
familiar with colonizing people and shots at
global empires. they will likely try to export
their civil war somehow, get the usa to fight
the homeless or something. they should declare
war on hyman minski for pointing out, in advance,
exactly how they are all full of shit.
so it is back to the same old thing, how can the
rich get the poor to take the brunt of their losses
and make it appear honorable?

Sun, 06/03/2012 - 12:31 | 2489232 Winston Smith 2009
Winston Smith 2009's picture

Ah, but what they are trying to prevent is the inevitable fall of the first domino in $707 TRILLION dollar OTC derivatives scam.  When that happens, and it will, get out your Mad Max survival kit.

Sun, 06/03/2012 - 12:31 | 2489233 A Lunatic
A Lunatic's picture

Fuck the banks, Fuck the governments, Fuck all of the politicians, lawyers, and all of the other bottom feeding scum that dug this hole, and continue to try and fill it with the hopes and dreams of those powerless, voiceless, hardworking men and women that make this world go around. FUCK THEM.

Sun, 06/03/2012 - 12:37 | 2489247 gwar5
gwar5's picture

Same crooks that caused the problems now promise they have the solutions. What could go wrong?

Sun, 06/03/2012 - 12:39 | 2489252 Bunga Bunga
Bunga Bunga's picture

It's a complete misconception, that central banks print money and distribute it to cover bad loans. What they do is to provide liquidity over new debt, but this debt becomes mature itself some time in near future and needs to be refinanced. The whole process can be repeated indefinitely until all goes up with a pig poof.

Sun, 06/03/2012 - 12:48 | 2489267 midgetrannyporn
midgetrannyporn's picture

the eurotards were so smug when the E was soaring over the $ a couple of years ago. Why aren't you laughing now bitchez? [/dynamo]


Hey Killian, here is Sub-Zero, now, plain zero! [/ben richards]



Sun, 06/03/2012 - 12:50 | 2489278 BalanceOrBust
BalanceOrBust's picture

In Ink We Trust

Sun, 06/03/2012 - 12:53 | 2489286 junkyardjack
junkyardjack's picture

Good thing currencies are electronic now, that would be a lot of ink....

Sun, 06/03/2012 - 13:04 | 2489304 I am Jobe
I am Jobe's picture

Is Robert Mugabe been consulted yet? if not suggest EU immeidately appoint him and along side BenDonkey the Fucker.


Mon, 06/04/2012 - 06:09 | 2491013 unknownknowns
Sun, 06/03/2012 - 13:05 | 2489306 I am Jobe
I am Jobe's picture

Does this mean that there will be more hookers in EU than the USSA/ Just askin? If that is the case, USSA College girls, single Moms better be ready.

Sun, 06/03/2012 - 13:07 | 2489309 slewie the pi-rat
slewie the pi-rat's picture

[tyler (kicking ass,btw)}The truth is that by the time the status quo finishes its extend and pretend game, which incidentally has only one real outcome, the €2 trillion spent to date, will be orders of magnitude higher...{]

where oucomereal = NW0 marches on to consolidation of debt control of europeons same as USPeons (the purest!) and other assfuked national types which once ruled the world m/l;  or tried

cav_E's sun king rules a world of abject freaking confidence, don't it?  the sun king is sinking?  not enuf living wealth left to sacrifice in the hidden rites of rehypothecation to maintain the staus quo for more that 2-200  months now, depending on operative assumptions? 

place yer bets, BiCheZ!  5 more hours and the wheel spins, again!

Sun, 06/03/2012 - 13:49 | 2489385 jomama
jomama's picture


Sun, 06/03/2012 - 13:53 | 2489395 lolmao500
lolmao500's picture

Meh, 2 trillion is nothing compared to the quadrillion + in derivatives....

Sun, 06/03/2012 - 13:57 | 2489402 Roandavid
Roandavid's picture

Adam Hamilton over at Zeal has a slightly different take.

I think this next leg could very well go the way he's seeing it.

It's basically "Gold Bitchez' with a twist.

Sun, 06/03/2012 - 15:16 | 2489564 Bay of Pigs
Bay of Pigs's picture

I lost respect for him when he suggested the fraud ridden ETF bankster vehicles of SLV and GLD were all legit and a good thing.


Sun, 06/03/2012 - 13:58 | 2489407 Joebloinvestor
Joebloinvestor's picture

I thought the most hilarious solution I read was Monti demading the ECB PRINT BABY PRINT.

This guy doesn't get it.

The can has been kicked as far as it will go and the EU losers have run out of rope.

However, you won't find a banker (or politician) in any breadline.

Sun, 06/03/2012 - 15:11 | 2489541 Whoa Dammit
Whoa Dammit's picture

There's not even a can left to kick, just some twisted metal and a pull tab to whatever financial institution blows up first.

Sun, 06/03/2012 - 13:59 | 2489410 Snakeeyes
Snakeeyes's picture

It's all politicians know how to do. Spend, borrow, stick it to someone else, spend, borrow, ......

They NEVER learn!

Sun, 06/03/2012 - 14:01 | 2489411 blindman
blindman's picture
Understanding Minsky's financial instability hypothesis
"Hyman Minsky's theories about debt accumulation received revived attention in the media during the subprime mortgage crisis of the late 2000s.[10]

Minsky argued that a key mechanism that pushes an economy towards a crisis is the accumulation of debt by the non-government sector. He identified three types of borrowers that contribute to the accumulation of insolvent debt: hedge borrowers, speculative borrowers, and Ponzi borrowers.

The "hedge borrower" can make debt payments (covering interest and principal) from current cash flows from investments. For the "speculative borrower", the cash flow from investments can service the debt, i.e., cover the interest due, but the borrower must regularly roll over, or re-borrow, the principal. The "Ponzi borrower" (named for Charles Ponzi, see also Ponzi scheme) borrows based on the belief that the appreciation of the value of the asset will be sufficient to refinance the debt but could not make sufficient payments on interest or principal with the cash flow from investments; only the appreciating asset value can keep the Ponzi borrower afloat.

If the use of Ponzi finance is general enough in the financial system, then the inevitable disillusionment of the Ponzi borrower can cause the system to seize up: when the bubble pops, i.e., when the asset prices stop increasing, the speculative borrower can no longer refinance (roll over) the principal even if able to cover interest payments. As with a line of dominoes, collapse of the speculative borrowers can then bring down even hedge borrowers, who are unable to find loans despite the apparent soundness of the underlying investments.[5]" ...

Sun, 06/03/2012 - 16:11 | 2489724 slewie the pi-rat
slewie the pi-rat's picture

your comments are noted, b_man and the links, also


financial instablity is proving pretty hard to avoid, isn't it? 

i think it would help if nations and cBanksters agreed at some point to allow real (PM)  money  to trade at par w/ fiat legal tender:  not by a "peg" as you would know from seeing some of my stuff, but by taking away the transactional vig and income/cap gainsTax tax de-incentives, as the banksters themselves (and their pols, thru enjoy today and protect as the true basis of their "wealth"

if my money or currency goes up or down due to some gooberming & bankstering bullshit, they get to take my ConsitutionalMoney away if i choose to use it?

don't penalize theRealThing for me, either you fuking shitheaded moronic douce-baggers!  ~slewie

could we please try a baby-step here and see if anything gets better or worser?  how fuking hard-headed ARE the idealogues?

  • 1)  trade US Mint-prodeced PM coinage for legal tender fiat scrip without penalizing the lawful and rightful use of thePeople'sMoney
  • 3)  any fuking questions or another year of shit fron the status quo?  go fuk yerselves, toy-boys!
  • 2)  The End  L0L!!!
Sun, 06/03/2012 - 18:17 | 2490046 blindman
blindman's picture

instability is to economics as
uncertainty is to information,
an endogenous, irrepressible and
essential characteristic.
reminds me of the outlaw philosopher
allan watts who coined the term in a
book title "the wisdom of insecurity".
the current response by the "authorities"
is to turn this aspect of reality into
a global bank robbery, imo. george carlin
said they would steal the pensions and the social
safety nets etc.. he was correct. bailouts of the
too big to fail and control fraud is the mechanism.
they always knew the money system had an expired
or expiring shelf life but that was their secret
which is now understood by some school children,
at least that one canadian 7th grader.
@" fuking hard-headed ARE the ideologues?" ..
to the grave deluded if history is any guide.
when you believe you cannot think and when you think
you suspend belief as much as possible. ideologues
have given up on thinking or are afraid of it and
just believe, they become deaf and blind to the aspects
of reality that threaten their structures of power
and influence. i recently posted a link to a
discussion, john trudell and alex jones, on this topic.
mostly the reaction was not favorable as expected.
true believers hate the topic and understandably... so.
we have a faith based culture and a faith based money
system but nobody can tell if it is a light or a train
in the tunnel, but they will not question their faith
and opinion that they are in the correct tunnel.
something like that.

Sun, 06/03/2012 - 14:06 | 2489425 blindman
blindman's picture
The End of the Communist Dynasty
by David Lawson on June 3rd, 2012 at 11:47 am
Posted In: Debtwatch
.."Some may argue that the Minsky market driven instability hypothesis is not suited to China and that they are chiefly a centrally planned state controlled economy. This reflects a fundamental misunderstanding of Minsky’s work. The Western economies’ attempt to centrally plan economic activities from the consumption end, the state based capitalism that China has become known for attempts to centrally control the economy from the production side.

The Chinese production economy cannot be seen in isolation from the consumption economies of the West; debt based consumption provided the umbrella under which the Chinese miracle grew. When the GFC collapsed Western debt based consumption reacted by providing the last line of Minsky Ponzi financing via government bail-outs. Governments faced with banking collapse chose keep the system going by transferring debt from private hands to those of the taxpayers." ..

Sun, 06/03/2012 - 14:15 | 2489435 C-B77
C-B77's picture

I think i prefer PIGS to GIPS.....

Sun, 06/03/2012 - 14:22 | 2489451 A Lunatic
A Lunatic's picture

Nobody wants to rock the boat because they all want on the boat. I heard that somewhere a few days ago, and it is the only damned explanation I have heard that explains why the majority of people in any given country don't rise up and put a stop to this bullshit insanity that is destroying everything they claim to hold dear.

Sun, 06/03/2012 - 14:49 | 2489496 Atomizer
Atomizer's picture

American's are tactical thinkers, not reactive. It really drives them insane. LOL

Sun, 06/03/2012 - 14:26 | 2489454 Atomizer
Atomizer's picture

A bald headed bearded Santa Claus asshole will sweep down from the sky declaring he had to save the world. Once he crosses this line, the establishment doors will instantly close. By then, everyone will have figured it out.

Tag, your it Ben. winks

Sun, 06/03/2012 - 14:28 | 2489456 falak pema
falak pema's picture

2 trillon of funny money and 40 trillion on the other side of the pond; we are in never never land! 

Sun, 06/03/2012 - 14:28 | 2489459 q99x2
q99x2's picture

The banks would do a lot better if they could take out insurance against themselves and then take bets to gaurantee their failure.

Then the german taxpayer will really be screwed and the banksters will walk away with all their money.

Arrest them.

Sun, 06/03/2012 - 14:29 | 2489461 blindman
blindman's picture

bailouts are just systemic stealing to accomplish
the advantage/disadvantage imbalance the poorly,
for some, designed monetary system was to provide
in the first place; repression, oppression and
total population control by other means.
generations wasting their minds and lives in the
fog of deceits, lies, half truths and fraud.
the need for bailouts exposes
the system for what it is, normalized fraud dressed
up as socio-economics.
when will people reclaim the content of their lives?
soon i think.
the same dynamic is at play discussed above between
the usa-china as we see in europe north-south and
they are connected. so we are looking at the big
minski crunch, collapse, dislocation and evaporation
of trust, global, with all the lives waiting to be reclaimed. imo.

Sun, 06/03/2012 - 14:45 | 2489486 orangegeek
orangegeek's picture

Peak government.  Peak debt.

Sun, 06/03/2012 - 15:11 | 2489509 Monedas
Monedas's picture

A Quadrillion is an exceptionally bright Quadroon....bright enough for "house work" !     Monedas   1929     Comedy Jihad Cotillion

Sun, 06/03/2012 - 15:18 | 2489567 Sandmann
Sandmann's picture

When you talk of Trillions you are really talking of Zeroes. The number in front of the Zeroes disappears into the Vastness of The Void to leave only Zeroes. This is simply what happens when you leave children in charge of sophisticated machines. We have seen it with Nuclear Power and we see it with Finance. You always end up with Sociopaths of very modest intelligence driving the Systems to Core Meltdown. It is a human condition - Trash always comes out on top. The System is finished. What comes next may not be a System but simply disintegration of the existing structures like Social Security, Pensions, Banks and the like. As Intermediaries banks suck - as Principals they are too accident-prone to survive.

Sun, 06/03/2012 - 15:27 | 2489598 sessinpo
sessinpo's picture

The GAO audit of the FRB shows 3.2 trillion went to foreign banks. In addition to that, another 2.6 trillion went to other various institutions that may or may not be foreign.

Sun, 06/03/2012 - 16:11 | 2489727 Ned Zeppelin
Ned Zeppelin's picture

We've been on this journey here at Zero Hedge since 2008, and it has been an interesting ride. Perhaps we are about to arrive, but my prediction is printing will be the order of the day. But even that remedy appers to be losing its ability to hold off the collapse.

Sun, 06/03/2012 - 16:37 | 2489780 CrashisOptimistic
CrashisOptimistic's picture

Bloomberg's lead story this hour: Merkel Hardens Opposition to Eurobonds


Inside the article she says "UNDER NO CIRCUMSTANCES" will she agree to Eurobonds.


(aka BOOM!!)

Sun, 06/03/2012 - 17:20 | 2489910 Olympia
Olympia's picture

Germans plunge Europe into a new Medieval Era.

Are they ready to take that risk ?

It was Germany that took huge loans from the American FED. It was Germany that put the markets up to buying ownership shares of the European Central Bank, which has burdened the States with sins. It was this State that lured the rest of the Europeans into a dissolute life so that it can pass the burden of its debts, hence its own sin to them. The current epidemic of debt crisis has begun from Germany, it is just that it kept its disease a secret and at the expense of everybody else, and now that it is in a better shape, it has gone hunting in order to take advantage of the disease it itself had created. The first State to have sickened has gone hunting for the one who was most weak in dealing with the disease, and that was Greece. If Germany had not been over-indebted, the European states would have never been vulnerable to the markets’ attacks.  If Germany had not been over-indebted the European states would have never been forced to mortgage their existence so that Germany’s bosses can get their money.


The Eastern gates of Europe at risk: How Northern Europe shoots itself in the leg

Authored by Panagiotis Traianou

Sun, 06/03/2012 - 17:38 | 2489951 Sandmann
Sandmann's picture

It was Greece that took huge loans from the Americans and the French and Germans and paid Goldman Sachs to falsify data.



Sun, 06/03/2012 - 18:23 | 2490054 Peter Pan
Peter Pan's picture

So does that mean there were German, French and American traitors working against their nations' interests at Goldman Sachs? Does this qualify them to be tagged as terrorists?

Sun, 06/03/2012 - 23:53 | 2490761 Sandmann
Sandmann's picture

Why do you think anyone at Goldman Sachs, ABC, NBC, or even in the White House is working for any intertests other than Self Interest ?

Mon, 06/04/2012 - 03:17 | 2490940 Olympia
Olympia's picture


A country in the outmost Southeastern part of the EU has grasped the headlines for quite some time. With only 2% of the EU's economy and just 2.5% of its debt it became the "Witch" that is haunted by puritan Northern Europeans. It is claimed as the epicenter of laziness, lust and unproductively for the whole of the Continent, a bad example that pious Northerns should be feared and loath at the same time. 

This country is Greece and it must be punished! But is it really the witch hunt that has started in 2009 the most stupid move ever made in the entire European history? Is it worth to blame Greeks for the lonely dark winters up in the North and for the depression syndrome that cripples the lives of dozens of millions northern Europeans, as if Greece makes the weather?

In reality the Northern Europeans risk of pushing Greece into the broader global community where it is going to be free from investing heavily in its defense of the Eastern gates of Europe and it will bring about the greatest change in the balance of powers that Europe has felt since the collapse of the Berlin war. This time Germany will not be re-united, rather it will has to pay a dear price for its energy security. Netherlands will not become richer; rather it will have to pay from its own pocket in order to save itself from the flood of narcotics and Asian immigrants.

Austria will not be greater, rather it will have to deal with powder-keg named "Balkans" that has markets Vienna's history.


How Northern Europe shoot its leg, in order to satisfy the populist sentiments of an electorate being used to the fairy tales of "bad witches and pious farmers".


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