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

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Mon, 08/29/2011 - 00:27 | 1610877 baby_BLYTHE
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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? 

Mon, 08/29/2011 - 00:49 | 1610921 Jasper M
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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?

Mon, 08/29/2011 - 01:36 | 1610993 BaBaBouy
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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...

Mon, 08/29/2011 - 01:53 | 1611003 spiral_eyes
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Merkel will pervail, Europe will collapse, we will have the Great Crash of 2011/12 and a new world order. 

Mon, 08/29/2011 - 02:28 | 1611031 Koffieshop
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" 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.

Mon, 08/29/2011 - 01:21 | 1610967 nscholten
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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.

Mon, 08/29/2011 - 03:07 | 1611045 Arius
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"?

Mon, 08/29/2011 - 09:35 | 1611394 Melin
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.

Mon, 08/29/2011 - 06:36 | 1611116 disabledvet
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!

Mon, 08/29/2011 - 00:24 | 1610887 chump666
chump666's picture

an excellent post. 


Mon, 08/29/2011 - 00:28 | 1610897 Ahmeexnal
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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.

Mon, 08/29/2011 - 00:29 | 1610900 spekulatn
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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.

Mon, 08/29/2011 - 00:32 | 1610906 The Grifter
The Grifter's picture

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



Mon, 08/29/2011 - 00:49 | 1610929 SumSUN
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Ca ne me derange pas.  Celui que j'ai mon bread and cirucus bitchez.

Mon, 08/29/2011 - 00:36 | 1610910 Western
Western's picture

INB4 teh bull cavalry.

Mon, 08/29/2011 - 00:43 | 1610920 stoxster
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Are the ratings companies hands tied or what? If the French don't get a downgrade, US should get back their AAA ratings

Mon, 08/29/2011 - 00:45 | 1610923 Yen Cross
Yen Cross's picture

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

Mon, 08/29/2011 - 01:23 | 1610968 nscholten
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Fuck your charts.  This ain't chart land

Mon, 08/29/2011 - 00:46 | 1610926 Jasper M
Jasper M's picture

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

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

Mon, 08/29/2011 - 01:03 | 1610947 Hansel
Hansel's picture

Weighted Average Maturity

Mon, 08/29/2011 - 01:24 | 1610971 Id fight Gandhi
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Weight avg. Maturity.

Mon, 08/29/2011 - 14:07 | 1612289 Lazlo Toth
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"WAMF" would have been something from RAW.

Mon, 08/29/2011 - 00:48 | 1610927 Caviar Emptor
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. 

Mon, 08/29/2011 - 06:47 | 1611120 disabledvet
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.

Mon, 08/29/2011 - 00:57 | 1610941 Missiondweller
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Its like a slow set up for another Fall disaster. September & October storms are coming.

Mon, 08/29/2011 - 01:05 | 1610951 Caviar Emptor
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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. 

Mon, 08/29/2011 - 01:39 | 1610997 Drag Racer
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International Monetary Research says "Eurozone Break-Up Certain"; I say Embrace the Fact "Banks Cannot Be Saved"

Mon, 08/29/2011 - 01:10 | 1610956 ben_bernanke
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Futures up

Mon, 08/29/2011 - 01:24 | 1610969 nscholten
nscholten's picture

Your point?

Mon, 08/29/2011 - 02:01 | 1610966 PhattyBuoy
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TD smells something rotten emanating from the calm surface waters of Warren's bathtub ...

Mon, 08/29/2011 - 03:20 | 1611051 PhattyBuoy
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Ambrose Evans-Pritchard: Euro bailout in doubt as 'hysteria' sweeps Germany.

Mon, 08/29/2011 - 03:47 | 1611062 Coldfire
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"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.

Mon, 08/29/2011 - 01:25 | 1610972 JLee2027
JLee2027's picture

Uncle Warren in the bath! LMAO

Mon, 08/29/2011 - 01:28 | 1610975 chump666
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.

Mon, 08/29/2011 - 01:28 | 1610976 chump666
chump666's picture

as in HFT's panic buying. 

Mon, 08/29/2011 - 03:45 | 1611066 macholatte
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USD/CHF just came off .815   EUR/CHF just came off 1.185

Charts look like a profile of the Empire State building

Mon, 08/29/2011 - 01:33 | 1610987 Mauibrad
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You've been busy reading this weekend, Tyler.  Nicely pieced together.   Stayed in from the storm?

Mon, 08/29/2011 - 01:35 | 1610990 props2009
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Gold weekly and daily charts are screaming

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Mon, 08/29/2011 - 01:55 | 1611004 bakken
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.

Mon, 08/29/2011 - 02:32 | 1611034 Sambo
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.

Mon, 08/29/2011 - 05:26 | 1611096 PY-129-20
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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.

Mon, 08/29/2011 - 03:33 | 1611056 Coldfire
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.

Mon, 08/29/2011 - 06:51 | 1611122 disabledvet
disabledvet's picture

The financial "phony war" has ended.

Mon, 08/29/2011 - 04:13 | 1611076 The Axe
The Axe's picture

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


Mon, 08/29/2011 - 04:28 | 1611084 Volaille de Bresse
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...)

Mon, 08/29/2011 - 05:36 | 1611101 PY-129-20
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).


Mon, 08/29/2011 - 08:11 | 1611190 ramirez
ramirez's picture

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

Mon, 08/29/2011 - 04:28 | 1611085 props2009
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New premium trades posted

Mon, 08/29/2011 - 04:38 | 1611087 magpie
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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.

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