Europe's Funding Scramble: Peeking Below The Calm Surface Waters Of French Bank Liquidity (And Lack Thereof)

Tyler Durden's picture

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baby_BLYTHE's picture

yeah despite the recently volitlity in all markets, Gold still isn't buying the BS. I have faith the second half of this year, especially mid-September the miners will also reflect this, ZIRP till 2013 alone guarantees it! They will cheapen the dollar realitive to all other currencies (+Gold, Silver and Crude Oil) until it completely implodes the world monetary system. Benocide is frothing for REAL hxc Inflation to erode /cheapen our outstanding real debt by at least 50% until his current chairsatanmenship ends in 2013. 

In simplicity, we are doomed. Got Gold? 

Jasper M's picture

In fairness, Baby (I Can call you Baby, can't I?), do you Really suppose the Fed can enforce 2 years at ZIRP? I call bullshit on that; Myth of the Potent Director.

ChairCreature has Tried to conjure inflation, but credit destruction matches his pace, step for step. It wil shortly overrun him. 

Got FRNs?

BaBaBouy's picture


Right, When In Doubt, RUN To GOLD ...


Finally a bit of sanity out of Europe:

""A CSU document to be released on Monday flatly rebuts the latest accord between Chancellor Merkel and French president Nicholas Sarkozy, saying plans for an "economic government for eurozone states" are unacceptable. It demands treaty changes to let EMU states go bankrupt, and to eject them from the euro altogether for serial abuses.""

Sarko Will prevail though...

spiral_eyes's picture

Merkel will pervail, Europe will collapse, we will have the Great Crash of 2011/12 and a new world order. 

Koffieshop's picture

" you Really suppose the Fed can enforce 2 years at ZIRP?"

They can if they resort to bare-butt fraud.

Paraphrasing: You can keep rates low and even make your debt a source of profit by selling default insurance on your own paper.

This is the most hilarious thing I have seen in a while.

nscholten's picture

The one problem with mining gold is that it is a hard fucking busines.  And just because gold goes up doesn't mean miners will, some of course. but who needs to decided weather a company is running well or not or they don't get run over buy the local government, which they probably should, as it is their gold in the first place.

Arius's picture

right on!  "Their gold in the first place" ... did you just figured it out or is this the latest desperation cry out of the "naked shorts"?

Melin's picture

"...but who needs to decided weather a company is running well or not or they don't get run over buy the local government, which they probably should, as it is their gold in the first place." (?)

The individual(s) willing to risk their money in the purchase of a company's stock decides whether a company is running well enough to take the risk and neither gold nor property should lie in the hands of government.  Liberty requires laissez-faire Capitalism. Government's purpose is protecting your rights not "investing" in assets and "running" economies. 

Every convo in the legacy media about the economies of the West is rotted to the core by unchecked premises that steer the dialogue forever in the statist direction.  It's taken as given that government should keep people who would develop natural resources or produce nifty gadgets from profiting too much without direct intervention by government.  The underlying assumption is that producers are inherently immoral in their desire to profit and take "advantage" of those voluntarily offering a value (money) for a value (a good or service produced).  

It's the government intervention that is immoral. We've gotta get these clown policitians out of our economies by re-educating them on laissez-faire. Check their premises.  They think they're doing the right thing which makes them all the more dangerous.  But it also makes them vulnerable to attack on moral grounds since their entire statist edifice is built on theft and a pretense that government intervention is altruistic and, therefore, moral.  Nothing could be further from reality.

disabledvet's picture

rrrroowww. you look and sound hotter than ever Baby. (can I call you Baby, Baby?) i know i'm 4000 miles away but i bought the best binoculars money could buy--just for you!

chump666's picture

an excellent post. 


Ahmeexnal's picture

Why arent the french sheeple aware that their "money" deposited at SocGen simply....ISN'T THERE?

It's time a "WITHDRAW YOUR MONEY FROM SOCIETE GENERALE" Facebook group goes viral in order to protect french civilians.

spekulatn's picture

Lastly, we are confident that uncle Warren is currently taking a bath with an atlas of Europe, feverishly trying to come up with his latest Eureka moment.


Well done, TD.

The Grifter's picture

The typical Frenchman doesn't worry about it.    Ce n'est pas important.



SumSUN's picture

Ca ne me derange pas.  Celui que j'ai mon bread and cirucus bitchez.

Western's picture

INB4 teh bull cavalry.

stoxster's picture

Are the ratings companies hands tied or what? If the French don't get a downgrade, US should get back their AAA ratings

Yen Cross's picture

 Before anyone posts. Open the charts, they are tricky. Divergence.

nscholten's picture

Fuck your charts.  This ain't chart land

Jasper M's picture

More importantly, in the word's of Eddie Murphy's  character in "Best Defense – 

"What the Hell is a "WAM" ?! "

Hansel's picture

Weighted Average Maturity

Lazlo Toth's picture

"WAMF" would have been something from RAW.

Caviar Emptor's picture

Soc Gen (and several other major banks throughout Euroland) were lynchpins of the covert, trans Atlantic pyramiding of derivative instruments that kept Wall Streeters and banksters in their Berlutis. There were many players. But that ended up creating the systemic risk that took the system down in 08 and which is still is very alive today, hungry for more. They created the illusion of business by trading back and forth with one another, using various tricks to hide the growing monster which eventually caught up with them. Kerviel may have been the fall guy, but there's lots to hide. So much so that the trillions printed and doled out since 2008 were no where near enough. So more 'socialization of losses' is needed, but the natives are getitng mighty restless. 

disabledvet's picture

I absolutely agree. I've been shocked with the violence with which treasuries have called bullshit on the whole thing. Did not see that coming and quite frankly worries me personally. The markets' are moving higher but the name of the game is simple: preservation of capital plain and simple. As Morgan did to the railroads so government will do to the banks. The monied classes have made a collossal blunder if they're not playing ball with the Administration and Congress. Say what you will about Obama and the Republicrats but these guy's are winners on the battlefield--obviously sans heroes of course which goes a long way towards explaining the poll numbers in my view. If they decide to start "killing the killers" however--and he is President of the United States and they are Congress and this is at the time of our most bad-ass..edness(sp?)--you could see a to put this?..."meeting of the minds" among the "political animal classes." Political speculation of course. The exact opposite of what The Bernank said is the problem I might add.

Missiondweller's picture

Its like a slow set up for another Fall disaster. September & October storms are coming.

Caviar Emptor's picture

There's lots more interconnectedness than meets the eye. And the Ponzi of Ponzis is wounded but still alive. The urgency to do more bail outs is growing. 

Drag Racer's picture

International Monetary Research says "Eurozone Break-Up Certain"; I say Embrace the Fact "Banks Cannot Be Saved"

PhattyBuoy's picture

TD smells something rotten emanating from the calm surface waters of Warren's bathtub ...

PhattyBuoy's picture

Ambrose Evans-Pritchard: Euro bailout in doubt as 'hysteria' sweeps Germany.

Coldfire's picture

"Hysteria" was the pejorative bomb thrown at critics of the European Financial Slush Fund ("EFSF") by (Santa) Klaus Regling, the EFSF head. Extraconstitutional abortion EFSF is the €440 billion slush fund that is supposed to patch the €2,000+ billion hole in PIIGS sovereign balance sheets. German lawmakers are set to vote on the EFSF's ratification (because it's already operating, d'oh!) on September 23. So accordingly to Regling, anyone not supporting the ratification whitewash is "hysterical". He is obviously someone soberly confident of his position. As AEP correctly notes, the next month is do or die for Angela Merkel, Germany's destiny and the Euro. Germany can only survive as a country by killing the Euro. The stakes could hardly get any more dramatic.

JLee2027's picture

Uncle Warren in the bath! LMAO

chump666's picture

EUR is up over a full cent, breaking the Aug 9th high (when markets crashed).  Thats a major risk averse signal, lunatics are buying into this.

chump666's picture

as in HFT's panic buying. 

macholatte's picture

USD/CHF just came off .815   EUR/CHF just came off 1.185

Charts look like a profile of the Empire State building

Mauibrad's picture

You've been busy reading this weekend, Tyler.  Nicely pieced together.   Stayed in from the storm?

props2009's picture

Gold weekly and daily charts are screaming

Premium access:


Free access charts:

bakken's picture

When the freeze happens it will be as fast as lightning, BOOM>LockUp!   But, nothing happens till "vacances" finishes in August!  The French won't be cuttting short vacations, for anything.

Sambo's picture

The beginning of the z end....

Breaking news: German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe’s revamped rescue machinery, threatening a consitutional crisis in Germany and a fresh eruption of the euro debt saga.

PY-129-20's picture

She may not have enough votes in her own party and her CSU (Bavarian conservative party; think of Texas with fewer guns and more beer XD) and FDP allies, but the opposition of SPD (Left) and Gruene (Greens) will vote in favour of any further bailout programmes. Only the Linke (radical left, former GDR communist party SED and those that left SPD) will probably vote against another bailout. That's the irony. As a voter you do not have a chance against these bailout packages - you can only vote for another right wing party - and they will be crushed before anything happens, because of our pasts and the constant lecturing of that.

When von der Leyen (CDU) said she wanted the United States of Europe, she got applause by some of her party members, SPD and Greens. What a farce. I mean - I am not against such an idea at all. But for Christ sake - it is not their decision, it is the decision of the German people, the souvereign of our beautiful nation. If the majority of Germans is for such a merge - well, let it be. I am a democrat (not the party) and I wish we would respect our constitution more.

Do I think a United States of Europe would work? No. Not with the current EU model.

Coldfire's picture

I would love to hear Albert Edwards views on SocGen. About a year ago he was very (and correctly as it turns out) bearish on the US stock market and economy, calling for a double-dip recession when ISM went < 50 with S&P heading to a nadir of 450. Wonder if Edwards ate his own cooking vis-a-vis French banks (which just perhaps might be influenced by crashing US equities). SocGen was an absolute genius on the long ramp up of the OTC derivative pyramid. But that which can't continue, won't, évidemment. As Yogi Berra might have said, hindsight is 50-50.

disabledvet's picture

The financial "phony war" has ended.

The Axe's picture

Greek rally bitches....short generators..long greek banks  ha ha  until lunch anyway


Volaille de Bresse's picture

Tyler sssssssssssssssshhhhhhhhh.... You're going to wake my fellow French citizens up!


They watch TV and they read the lying mainstream press so THEY KNOW everything's fine down here. 


Fred Oudéa (SG's CEO) just told us : it's alright! It's alright! (for him and his family I guess...)

PY-129-20's picture

Belle France. One has to admire the spirit of your countrymen. At least they are not as apathetic as my countrymen (German).


ramirez's picture

Soon Société Générale go kaboom, so we should be relaxing by then :)

magpie's picture


PIIGS in flight to safety, but House of BRICS no safer:

Chinese credit rating agency Dagong Global on Monday downgraded the credit rating outlook for South Africa from stable to negative.