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Floodgates Open As Four More Spanish Regions Seek Bailout; German Nürburgring Faces Bankruptcy

Tyler Durden's picture


Even as Europe has become an utterly dysfunctional experiment in everything relating to modern economics and monetary theory, it has one redeeming feature: it has proven that the Defection regime under Game Theory is 100% correct. It says that once the defections from an unstable Nash equilibrium begin, there is no stopping until the entire system collapses under its own weight. This is precisely what has happened in Spain, where first Catalunya, then Valencia on Friday, and now virtually everyone else is set to demand a bailout. From Bloomberg: The Balearic Islands and Catalonia are among six Spanish regions that may ask for aid from the central government after Valencia sought a bailout, El Pais reported. Castilla-La-Mancha, Murcia, the Canary Islands and possibly Andalusia are also having difficulty funding themselves and some of these regions are studying plans to tap the recently created emergency-loan fund that Valencia said it would use yesterday, the newspaper said, without citing anyone."

"Spain created the 18 billion-euro ($23 billion) bailout mechanism last week to help cash-strapped regions even as its own access to financial markets narrows." What Spain's perfectly insolvent and highly corrupt regions also know is that the bailout money, like in the case of the ESM, will be sufficient for one, perhaps two, of the applicants. The rest will be out of luck.

Where the bailout money will come from? Ultimately from Germany of course. There is however one minor glitch. Some 80 millions Germans may soon be rather angry to learn that while they are working extra hours to fund the rescue of a few insolvent windmills, their own most legendary racetrack, the Nürburgring, is facing bankruptcy as soon as next week. From Spiegel:

With millions of euros in debts and an inability to pay back its loans, the operator of Germany's fabled Nürburgring racetrack, home to many of the country's Formula One races, could declare bankruptcy next week. It may be the end of the legendary racecourse, which first opened in 1927.


Formula One racing is in the blood of many Germans. The country is home to such car racing legends as Michael and Ralf Shumacher and Sebastian Vettel. And every two years, tens of thousands of Germans descend on the world-famous Nürburgring motorsports complex in the village of Nürburg for Formula One races.


But the days at the fabled track may soon be coming to and end. On Wednesday, the state of Rhineland-Palatinate, which owns the race track, said it would ask the operating company to file for insolvency, and bankruptcy proceedings could begin as early as next week.


The state's governor, Kurt Beck, is blaming the European Commission for not approving a €13-million ($16-million) state aid package in time for a July 31 payment deadline. The consequence, Beck said, "is a very high probability of an insolvency at the end of the month because of insufficient liquidity." After that, orderly bankruptcy proceedings would follow, he said. The state aid envisioned for the track would require EU approval.


Beck said the European Commission, the European Union's executive body, had sent positive signals in recent days that it might approve the aid, but it has now apparently delayed a decision. In recent years, the EU has sought to put a halt to years of giving millions in state aid for the failing race track complex.




Nürburgring is famous in Germany not only as a site that hosts Germany's Formula One races, but also as the location of the massive Rock am Ring music festival, which draws thousands of spectators to see headline music acts every spring.


Since 2007, Formula One races in Germany have alternated biannually between Nürburgring and the Hockenheimring track in the neighboring southern German state of Baden-Württemberg. The planned 2013 race is currently jeopardized by the dispute between Rhineland-Palatinate and the racetrack's operating company.


Nürburgring is one of the world's most famous race tracks. The 25-kilometer long course first opened in 1927. A new track was built in 1984 to accommodate Formula One racing. But in recent years, the future of the massively expensive Formula One race at the site has been in doubt. The state of Rhineland-Palatinate has threatened to reduce the level of subsidies it provides. The June conviction of former banker Gerhard Gribkowsky, who admitted he had accepted $44 million in bribes from Formula One boss Bernie Ecclestone, has also created uncertainty. For weeks now, speculation has been rife that Eccelstone could face corruption charges in Germany.


You want to piss a German off? Stand between them and their local Formula 1 race.


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Sun, 07/22/2012 - 10:39 | 2640149 bugs_
bugs_'s picture

my spanish region needs a bailout too

Sun, 07/22/2012 - 10:48 | 2640170 Future Tense
Future Tense's picture

Coming to a local town, city, or state near you in America. More foreclosures are ultimately going to crush the income for municipalities in the US. Projections with the "recovery" in real estate will not help spending cuts. This article quotes those in the industry who say that 90% of REO properties are being held off the market right now. That number is incredible:

Sun, 07/22/2012 - 11:09 | 2640204 The Monkey
The Monkey's picture

As difficult as it is to do, Europe needs to untangle.

Sun, 07/22/2012 - 11:38 | 2640235 AlaricBalth
AlaricBalth's picture

Dear Citizens of Germany,
May we have some money too, por favor?
The City of Miami
P.S. If you need collateral we have thousands of empty McMansions sitting on recently drained swampland and hundreds of anorexic models on South Beach. Knowing the ECB's history of collateral acceptance, these should suffice.

Sun, 07/22/2012 - 11:40 | 2640263 francis_sawyer
francis_sawyer's picture

Fahrvergnügen... OLE!

Sun, 07/22/2012 - 12:33 | 2640356 cossack55
cossack55's picture

No sweat.  The number will soon be 0% when the gubment converts all retirement accounts to Gubmint Annuities. Mom will get a check for about $35.00 per month, so she can spend $7  per day of food. 3 cheers for the gubmint.

Sun, 07/22/2012 - 15:02 | 2640660 sessinpo
sessinpo's picture

"Mom will get a check for about $35.00 per month, so she can spend $7  per day of food."


That's some interesting math. You have a future in government

Sun, 07/22/2012 - 19:22 | 2641169 Mentaliusanything
Mentaliusanything's picture

Saturday and Sunday's are for begging at the Mall

Sun, 07/22/2012 - 11:46 | 2640281 mick_richfield
mick_richfield's picture

Us too!

Michigancia, a little-known Spanish province bordering the Toledo region, also requests whatever German money Madrid can send us.


Sun, 07/22/2012 - 12:09 | 2640321 AlaricBalth
AlaricBalth's picture

To paraphrase Richard Nixon when he used Milton Friedman' s quote in 1971:
"We are all Spaniards now."

Sun, 07/22/2012 - 11:59 | 2640305 magpie
magpie's picture

Mr. Schäuble also offers the Do-it-yourself-bailout program: Just buy some EFSF bonds, lever them up and give yourself a loan.

Sun, 07/22/2012 - 12:02 | 2640308 Peter Pan
Peter Pan's picture

Europe is struggling to salvage the Euro whilst member nations are struggling to save themselves. It is this disconnect which will ultimately destroy the Euro.

Sun, 07/22/2012 - 12:38 | 2640362 RiverRoad
RiverRoad's picture

To The Monkey: 

And screw their heads on straight while they're at it.  What La La land are they living in?  The same one, I guess, as the King of Spain who unfortunately went elephant hunting the other day much to his chagrin.

Sun, 07/22/2012 - 13:01 | 2640400 indygo55
indygo55's picture

The 44 mil bribe was almost three times what the loan payment was. Claw back the bribe and fines and put this thing back together.


Mon, 07/23/2012 - 04:38 | 2641739 Buck Johnson
Buck Johnson's picture

I know, they are either being told to hold them off and/or it's mutual protection for the govt. and the banks.  By keeping them off it helps to maintain the high house prices and at the same time it keeps the market from not collapsing before an election.

Mon, 07/23/2012 - 04:39 | 2641741 Buck Johnson
Buck Johnson's picture

I know, they are either being told to hold them off and/or it's mutual protection for the govt. and the banks.  By keeping them off it helps to maintain the high house prices and at the same time it keeps the market from not collapsing before an election.

Sun, 07/22/2012 - 10:58 | 2640191 vmromk
vmromk's picture

I don't understand what all the fuss is about.....has someone hijacked the cocksucker Bernanke's printing press ?

Go to work Ben, you MOTHERFUCKER, print, print, print !!!!

Sun, 07/22/2012 - 12:55 | 2640388 ZeroAvatar
ZeroAvatar's picture

Ah, yes......cue the Bailout Fairie.

Sun, 07/22/2012 - 11:33 | 2640246 El Oregonian
El Oregonian's picture

Uh-oh, sounds like they've skidded into a ditch...

Sun, 07/22/2012 - 11:46 | 2640253 TheGardener
TheGardener's picture

Nürburgring is in the backward volcanic uninhabitable Eifel region where cops only venture out to when there is a race
and fines to be collected. Adobe huts hardly had jointed beams 20 years ago, two thousand years behind at least
so all the Dutch come to those "mountains" for adventure holiday with their caravans in tow.

Good old Europe will regionally survive, and the Eifel will be left alone, some volcanic eruption might even do the trick.

Sun, 07/22/2012 - 12:09 | 2640322 JustObserving
JustObserving's picture

Nurburgring needing $16 million is hardly worth mentioning with countries needing hundreds of billions now.  The debt and unfunded liabilities of the world are approaching $500 trillion with a world GDP of $60 trillion or so.  The US share of debt and unfunded liabilities is $136 trillion versus a GDP of $15.5 trillion - a bit more than the world average.

How long will the world's central bankers allow deflation to rage?  If they allow any longer, we may get cascading collapse of countries not to mention global failure engendered by $700 trillion in derivatives.  There will be coordinated printing soon enough.

Sun, 07/22/2012 - 12:44 | 2640372 RiverRoad
RiverRoad's picture

The world's central bankers are, interestingly enough, digging their own graves here and the best part about that is they know it.

Sun, 07/22/2012 - 10:43 | 2640152 5880
5880's picture

The idiots built an amusement park there that sucks adding debt

Save the Ring!

Sun, 07/22/2012 - 10:46 | 2640166 cossack55
cossack55's picture

Will whomever bails them out be forever known as the "Lord of the Ring"? Could be cool.

Sun, 07/22/2012 - 12:18 | 2640332 cbxer55
cbxer55's picture

"In recent years, the EU has sought to put a halt to years of giving millions in state aid for the failing race track complex."

According to that sentence, quoted from the article, the track has been getting bailed out for years. And the E.U. wants to stop it. Got bigger fish to fry than a race track. Gee, who'da thunk it?

Sun, 07/22/2012 - 10:44 | 2640159 robertocarlos
robertocarlos's picture

The Germans showered Alonso with gold leaf today after he won the German GP.

Sun, 07/22/2012 - 12:04 | 2640311 spanish inquisition
spanish inquisition's picture

NOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!! It's on tape delay in the US today... Starts in about 2 minutes.

Sun, 07/22/2012 - 15:08 | 2640674 robertocarlos
robertocarlos's picture

I am so sorry. I was not thinking. It's still worth watching as it was a very good race.

Sun, 07/22/2012 - 16:41 | 2640877 spanish inquisition
spanish inquisition's picture

I did watch it and yes, it was a good race.

Sun, 07/22/2012 - 19:48 | 2641212 smiler03
smiler03's picture

The race was bizarre compared to most F1 races. Some drivers were actually able to overtake, very strange.

Sun, 07/22/2012 - 10:50 | 2640160 deepsouthdoug
deepsouthdoug's picture

Floodgates open?  Why it's just a little dampness!  I am reminded of this Monty Python clip -

Sun, 07/22/2012 - 10:44 | 2640162 Sisyphus
Sisyphus's picture

Foot fault?
I mean Pubes' fault?
I mean Willies' fault?
I mean Pubes' fault?
I mean Wie(Ron)nies' fault?

Sun, 07/22/2012 - 10:50 | 2640175 williambanzai7
williambanzai7's picture

...The Euro Family

Snap snap

Sun, 07/22/2012 - 10:52 | 2640179 jal
jal's picture

I want to be rich like the Germans.

Please transfer your debts to me.

I've got a pipeline that will send me a cash flow based upon those debts.


Sun, 07/22/2012 - 10:53 | 2640180 Wakanda
Wakanda's picture

Europe first, then US.

Let the games begin!

Sun, 07/22/2012 - 11:00 | 2640185 robertocarlos
robertocarlos's picture

Did you read the BBC today where it claims the rich are hiding $32 trillion in assets. That is a huge amount of money.

Sun, 07/22/2012 - 11:57 | 2640282 mick_richfield
mick_richfield's picture

It sure ain't what it used to be.

Sun, 07/22/2012 - 12:48 | 2640377 RiverRoad
RiverRoad's picture

And that is precicisely why this whole stupid globalization farce is falling apart; they all thought the sheeple would cough up to pay the tab.  You can see how that is working out.

Sun, 07/22/2012 - 19:51 | 2641216 smiler03
Sun, 07/22/2012 - 13:55 | 2640511 DosZap
DosZap's picture

Did you read the BBC today where it claims the rich are hiding $32 trillion in assets. That is a huge amount of money.

Sure not paper assets.

All paper is now belong to big bro's all seeing eye.

So, what asset class are they refering to?.

Sun, 07/22/2012 - 15:05 | 2640668 sessinpo
sessinpo's picture

The hidden ones of course. Heck, I've got about $80 billion hidden away. I can't seem to remember where I put it though. I bet you have a couple of hundred billion hidden from everyone too.

Sun, 07/22/2012 - 20:45 | 2641385 neidermeyer
neidermeyer's picture

I have a cool $100,000,000,000,000.00 next to my computer... and just to show how generous I am I have given away double that in the last year to relatives that don't seem to understand what inflation looks like..

Sun, 07/22/2012 - 15:21 | 2640708 robertocarlos
robertocarlos's picture

Financial wealth - excluding real estate, gold, yachts, and racehorses -  held in off-shore accounts. So basically currency and other paper products amounting to 21-32 trillion dollars. And think how much thay have hidden in physical assets. Although it is hard to hide real estate, yachts, and race horses, you could put the gold on the yacht and sink it.

Sun, 07/22/2012 - 16:21 | 2640845 RiverRoad
RiverRoad's picture

Wouldn't be the first time.

Sun, 07/22/2012 - 15:26 | 2640720 robertocarlos
robertocarlos's picture

I just report what was printed or on TV. Sometimes too early.

Sun, 07/22/2012 - 16:41 | 2640876 jonjon831983
jonjon831983's picture

Thanks - there's the link:

Sun, 07/22/2012 - 11:06 | 2640199 debtor of last ...
debtor of last resort's picture

Time for a very long pitstop.

Sun, 07/22/2012 - 11:06 | 2640200 RobotTrader
RobotTrader's picture

The ECB better step and announce some "extraordinary measures" to stick save this situation.


Otherwise, we are going to see the 3 "Black Swans" intensify:

1) U.S. Treasury prices exploding up to unheard of heights

2) Huge surge in the U.S. Dollar

3) Horrific decline in commodity prices, led by a break of gold and silver under that massive support line

Sun, 07/22/2012 - 11:11 | 2640209 Mr.Kowalski
Mr.Kowalski's picture

Not all commodities-- grains are having a bumper year thanks to the heatwave in the MidWest and South. Personally I can't wait to see how many trillions in CDS's will be triggered when the Euro sinks below $1.00 USD. 

Sun, 07/22/2012 - 11:47 | 2640280 DoChenRollingBearing
DoChenRollingBearing's picture

@ RobotTrader

+ 1 for putting out controversial calls.  I would have NEVER guessed two years ago that 10-Year Treasuries would yield under 1.5%  A lousy less than 1.5%!

If/when gold takes its dive, I will be waiting, with my basket open.  I have dollars deployed just for that possibilty.

Sun, 07/22/2012 - 12:55 | 2640389 RiverRoad
RiverRoad's picture

Something tells me we ain't seen nothin' yet in the negative rate dept.

Sun, 07/22/2012 - 13:07 | 2640403 mick_richfield
mick_richfield's picture

Remember, Europe is a very advanced culture and, like all advanced cultures it is ...  old.

I'm sure we can count on the Brioni-suited neo-feudalist Euro "leadership" to show us why they deserve their unelected positions of power, and address this problem by:

1. punishing creditor nations, helping debtor nations, and pissing off both at once,

2. knocking over another small middle eastern country, and helping to attack a big middle eastern country,

3. continuing to take on more ballast until the Ship of State heels over on its side in the mud.


Sun, 07/22/2012 - 15:02 | 2640657 knukles
knukles's picture



They're not Black Swans if anybody's the least bit aware of the fucking thing. 
By definition.
Black Swan means kinda like out of left base... similar to your comments...  And Krugman's for that matter.
Stupidity needs company, I guess.

Everybody already knows that treasuries have done well.  And probably will for a major reason that everybody needs fucking eligible collateral, aside from any other consideration not to mention a global flight to quality

Ditto for the dollar

Ya' know, sometimes the best least house at the end of the block is all's left.  Sorta like recovery.

An if the shit gets hairy enough, people will again mass in droves to safe havens besides financial assets meaning... ta dah... gold and silver.

Does Krugman need friends on Faceplant or whatever it is?
Why don'tcha go find out and let us know.
Sometime next century.



Sun, 07/22/2012 - 11:06 | 2640201 Piranhanoia
Piranhanoia's picture

Formula 1 in Germany,  Nascar in the United Stoops.  We are alike.

Sun, 07/22/2012 - 12:28 | 2640346 ihedgemyhedges
ihedgemyhedges's picture

No right turns in NASCAR, and they don't drink pisswater for beer in Formula 1.......

Sun, 07/22/2012 - 12:57 | 2640392 RiverRoad
RiverRoad's picture

Yeah, they got class over there.

Sun, 07/22/2012 - 15:03 | 2640663 knukles
knukles's picture

Yeah, the proletariat and burgeoise.
Nyuck nyuk nyuk

Mon, 07/23/2012 - 04:48 | 2641746 A Nanny Moose
A Nanny Moose's picture

So it's a pissing match?

Mon, 07/23/2012 - 00:05 | 2641618 RockyRacoon
RockyRacoon's picture

One more difference:  Behind the grills and beer coolers at the NASCAR tailgate parties lay some pretty slick weaponry.  

Don't piss 'em ol' boys off.

Sun, 07/22/2012 - 11:09 | 2640206 Mr.Kowalski
Mr.Kowalski's picture

"Spain created the 18 billion-euro ($23 billion) bailout mechanism last week to help cash-strapped regions"

Did they really expect anything different than the bum's rush ? Christ o Friday I wish I could get in line for this one. Oh well-- there's always next week's bailout to try and slither my way into. 

Sun, 07/22/2012 - 11:23 | 2640229 Sisyphus
Sisyphus's picture

So, why weren't you packing heat while facing the "gooks"?

Sun, 07/22/2012 - 11:12 | 2640211 kraschenbern
kraschenbern's picture

Charity begins at home.

Sun, 07/22/2012 - 12:53 | 2640385 Bananamerican
Bananamerican's picture

so does "Clarity"

Sun, 07/22/2012 - 11:17 | 2640218 parch702
parch702's picture

Are the Canary Islands for sale?

Sun, 07/22/2012 - 11:51 | 2640290 mick_richfield
mick_richfield's picture

For a song.

Sun, 07/22/2012 - 15:04 | 2640665 knukles
knukles's picture

I heard that!

Sun, 07/22/2012 - 13:05 | 2640401 RiverRoad
RiverRoad's picture

"further austerity measures for Greece"....on July 24th?   I've got some deck chairs to sell them.

Sun, 07/22/2012 - 15:07 | 2640670 knukles
knukles's picture

That's like calling and raising on every round just to fold right before the flop is dealt.

Correction: That's like calling and raising on every round "with other people's money" just to fold right before the flop is dealt.

Sun, 07/22/2012 - 11:21 | 2640226 q99x2
q99x2's picture

Canary Island in a coal mine

Sun, 07/22/2012 - 11:26 | 2640228 aleph0
aleph0's picture


LOL ... the masses will only wake up when their TVs are kaputt .... or the Nürnburg Ring goes offline.

OMG, that means we may finally see our neighbours on Sundays.


On another topic :
"Fiskus greift sich Lebensmittel-Spender"

A German Baker gets hammered with Tax because he donated old bread to the German poor houses ( aka "Tafel" ) .

Facit: It's safer to just throw it away !

Last point :

I wonder how those German Poor Houses feel right now considering that the Bundestag just "winked" another EUR 100 Bio. for the Banks ... Ahem... I mean Spain.

Sun, 07/22/2012 - 12:49 | 2640378 AnAnonymous
AnAnonymous's picture

US citizen economics.

See how US citizens have turned charity in a business.

Trouble with this baker: he under cut regular sales to the poor by giving charity.

See the same effect in GD when crops were destroyed in fear a distribution of them would destroy US citizen free markets...

Sun, 07/22/2012 - 11:24 | 2640230 RobotTrader
RobotTrader's picture

Personally, I'd like to see the S & P 500 "mini-crash" all the way back down to 1,200.


Just to see the phenomenal parabolic rise in U.S. Treasuries, Muni-Bonds, and all the rest charted here:

And, see the Gold Bugz writhing in pain as the fabled support level finally breaks, causing massive Algo/Igor/Robo selling and the final capitulation of the CIGAs and the GATA boys.

Sun, 07/22/2012 - 11:26 | 2640234 The Swedish Chef
The Swedish Chef's picture

You know what going to be really fun? Watch that beloved bond bubble of yours explode like an h-bomb. Long time coming and it´s going to be epic...

Sun, 07/22/2012 - 11:35 | 2640252 5880
5880's picture


Why so high?

Sun, 07/22/2012 - 11:38 | 2640258 A Man without Q...
A Man without Qualities's picture

Didn't you say the IBEX had bottomed a couple of weeks ago?  

Sun, 07/22/2012 - 11:45 | 2640273 alien-IQ
alien-IQ's picture

The fact that you are providing ZH readers a link to Investors hub should be sufficient cause to downgrade your status from moron to complete buffoon.

What are you gonna follow that up with? Some Bernanke quotes circa 2007 to justify how the housing recovery is a sure thing?

Or perhaps some Jamie Dimon quotes that should make us all feel better about the state of the banking industry?

Or how about a note from your mother assuring everyone here at ZH that you are, in fact, a fabulous stock trader.

Sun, 07/22/2012 - 11:53 | 2640295 sudzee
sudzee's picture

Robo are you a close relative of Jon Nadler?

Sun, 07/22/2012 - 12:04 | 2640310 max2205
max2205's picture

Ihub.....figures, and says a lot about you. Shame

Sun, 07/22/2012 - 13:59 | 2640408 RiverRoad
RiverRoad's picture

Like water seeking it's own level, the financial world is wending it's way toward it's lowest common denominator.  Fact is, while this is going on, gold is the glue holding the world together.  Why else would the world's central bankers be stuffing their grubby little pockets with it?  And exactly what do they know that we don't?

Oh wait, they're the ones pulling the strings....

Sun, 07/22/2012 - 13:21 | 2640430 nodhannum
nodhannum's picture

I always love your comments RT.  It just proves that the previously thought extinct species "Ameripithicus Retardus" still exists.

Sun, 07/22/2012 - 13:59 | 2640514 mkhs
mkhs's picture

Wherever did you get the idea it was extinct?

Sun, 07/22/2012 - 13:27 | 2640450 Dr.Engineer
Dr.Engineer's picture

Robo, gold is a currency and not a commodity.

Sun, 07/22/2012 - 11:24 | 2640231 The Swedish Chef
The Swedish Chef's picture

The Spanish regions have almost 16 billions in bonds that expire this year, no cash and their rescue fund contains 18 billion. Godd luck.

Sun, 07/22/2012 - 11:25 | 2640232 Snakeeyes
Snakeeyes's picture

With unemployment rising, house prices falling and staggering budget deficits, Spain is literally a dead country walking. Look at the sovereign yield pattern!

Sun, 07/22/2012 - 11:28 | 2640237 The Swedish Chef
The Swedish Chef's picture

Interesting chart. Wonder how long they stay at the 7% plateau before being catapulted to the next level...sorry, until they are catapulted in to default.

Sun, 07/22/2012 - 11:34 | 2640247 Byte Me
Byte Me's picture

When everyone wants a bailout -- NOBODY gets one.

Sun, 07/22/2012 - 11:43 | 2640272 miltiadis
miltiadis's picture

Bye Bye Euro, hello War....

Sun, 07/22/2012 - 14:01 | 2640417 RiverRoad
RiverRoad's picture

Yup.  This will end with winners and losers as usual.  War throws the dice.

Sun, 07/22/2012 - 11:51 | 2640288 Clever Name
Clever Name's picture

Ahh, state owned racetracks. Sounds like a great use of tax money.

And the kicker "The state aid envisioned for the track would require EU approval." Awesome! Please Mr Brussels bank guy (not the one on ZH :)), give us some cash to fund...a racetrack?

Sun, 07/22/2012 - 12:53 | 2640384 AnAnonymous
AnAnonymous's picture

It is very great use of tax money. One of the best possible (beside army usage)

US citizens aim for depletion of resources. They need to muscle their consumption of resources in all kinds of ways possible.

Racetracks are wonderful as they feature drivers who guzzle down hundreds barrels of oil for leisure, acquiring the status of demi gods doing so.

It promotes the will of doing the same in the general population, driving fast powerful cars...

It is very good for increasing consumption and therefore increase the consumption weight in the US citizen race for consumption of resources...

Sun, 07/22/2012 - 13:21 | 2640427 RiverRoad
RiverRoad's picture

Racetracks....perfect metaphor for this mess.   Like Spanish kings on elephant hunts.

Mon, 07/23/2012 - 02:09 | 2641677 ForTheWorld
ForTheWorld's picture

Whatever or whomever you are, you're right. Especially this part:

"It promotes the will of doing the same in the general population, driving fast powerful cars... "

Some people call it small people syndrome, others just call it idiots driving cars too fast to be safe on suburban streets.

Sun, 07/22/2012 - 11:51 | 2640291 Atomizer
Atomizer's picture

Personally, I could give two shits about Nürburgring track. Driving on the Autobahn and never getting caught is a thrill of its own.


One of favorite video’s on the Niedersachsen / Ehra-Lessien track..

Top Gear: James May's Bugatti Veyron Top Speed Test - Top Gear


This track is God’s country. Maybe one day, I could test Obama’s Government Motors Volt.. How many times do you think we could go around the track?



Sun, 07/22/2012 - 11:53 | 2640296 dcb
dcb's picture

if commoditiy prices drop, it reduces the presssures on treasuries to give a higher return.

Sun, 07/22/2012 - 11:58 | 2640302 tok1
tok1's picture

US housing prices have fallen by same amount
and Spain's debt and deficit is a lot lower than the US.
The difference is the US had the fed buying all
7-30 bonds (via twist) where as all zero hedge loved
Germans will not allow the ECB to buy any Spanish debt.
So ECB easing only benifits Germany (negative rates).
And continued speculation by Germany (ie des spegial article)
Keeps Spanish / Greek and other periferial funds
flowing into Germany and the US. Ie the Germans
and US are fucking the periferial to get their funds to support
their own debt markets . If you can't see that you must be blind.

Sun, 07/22/2012 - 12:06 | 2640312 magpie
magpie's picture

The public debt and deficit levels are mostly irrelevant since there is a de facto, unlimited liability for all private debts i.e. banks, mortgages.

Sun, 07/22/2012 - 12:23 | 2640338 tahoebumsmith
tahoebumsmith's picture

The only thing the bailouts have done thus far is buy a little time. It's like lending someone money to make the minimum payment on their credit card, yet the balance continues to grow. You wonder where the 20+ TRILLION dollars has gone since the crisis began in 2008? It's all gone, the money has been used to create a pseudo economy that only benefited those who created the crisis to begin with. Jobless rates continue to increase and production is now slipping as inventories globally are bursting at the seams. Austerity will decrease the GDP to the same percentage as it was implemented to save. Consumer confidence is going to set some new lows in the upcoming months and you will see another wave of large CME defaults here in America. The experiment has failed, fighting a debt crisis with more debt was never going to produce anyhing except more debt. The too big to fail have gone from controlling 46% of the markets to 64% since 2008. There is your 20 TRILLION dollars hard at work, turning America into a fascist state... The new America where a totalitarian philosophy of government that glorifies the state and nation and assigns to the state control over every aspect of national life..

Sun, 07/22/2012 - 13:25 | 2640443 RiverRoad
RiverRoad's picture


It's a long walk to the guillotine apparently, and you get to kick a lot of cans along the way just for the fun of it.

Sun, 07/22/2012 - 12:28 | 2640343 falak pema
falak pema's picture

But Rajoy said Spain didn't need the Merkel machine to directly control spanish banks. Non pasaran! And now this; the demise of decentralised regional Spain. The ETA will be back at their dumb game if this continues and they will have sister regional movements all saying MADRID we hate you and your German masters! 

Its time to pull the plug on euro banking and let it all sink into the lake of Geneva with its HF sharks. 

Sun, 07/22/2012 - 13:37 | 2640476 RiverRoad
RiverRoad's picture

If everyone in the world paid their rightful taxes the world wouldn't be in this mess for the most part.  Once again the Swiss are sitting on the lion's share of the world's dough, same as WW2.....Will it take WW3 to wrest that $$ out of their grubby little fingers?

Sun, 07/22/2012 - 15:10 | 2640677 sessinpo
sessinpo's picture

Don't look behind you but someone is thinking the same thing about you. (This is why social justice is a crock)

Mon, 07/23/2012 - 02:18 | 2641683 ForTheWorld
ForTheWorld's picture

You'll have to define "rightful taxes" first before anyone would pay them. If by rightful, you mean equitable or just, then, well, I would guess that no one here has ever seen an equitable or just tax.

Sun, 07/22/2012 - 12:28 | 2640347 Paracelsus
Paracelsus's picture

Years ago (Thatcher deregulated the finance industry) the insurance giant Lloyds set out to recruit more "names",or investors,because they anticipated losses coming downstream.What was less clear was that these individual investors were signing up for unlimited liability,the financial pain just goes on and on.

In a similar vein, the german public has realized that the drain on their pension plans will go on and on.At some point the average person will do a profit/loss examination of whether the Euro experiment is a viable idea.I thought part of the original idea was to prevent wars from breaking out.I can't remember Europe being more unstable than right now...

Sun, 07/22/2012 - 12:38 | 2640363 RobotTrader
RobotTrader's picture

Attn:  max255

The reason I post on iHub is that it is only one of two of the websites approved by Chip at which allows the embedding of multiple live charts without displaying the pesky message "Please Visit".

However, since then, Chip has had a change of heart, and now if I try to post more live charts there (such as the IBD Top 50 I used to post 6 months ago), then the iHub staff will suspend your posting priveleges.

So far, they haven't deleted some of my older chart packs, which are still working:


Dow Stocks:





Sun, 07/22/2012 - 12:44 | 2640374 mendolover
mendolover's picture

Eccelstone is scum.  This is the Nurburgring:

Sun, 07/22/2012 - 12:49 | 2640379 Sylvia Plath
Sylvia Plath's picture

How can the German's give untolds billions to bailout Europe but won't be willing to save F1? I know Bernnie is a BDSM-CANCEROUS WART, but then that doesn't detract from the sport?


SAVE F1!!!

Sun, 07/22/2012 - 12:49 | 2640381 Marty Rothbard
Marty Rothbard's picture

The answer is more business.  Concerts, races of all types.  NASCAR has infected the whole US from it's stronghold in Dixie.  Maybe it's time for an European venue.  It is the south of Germany, and they do love beer.  Natural match.  A nice relatively cool place for a July race.

Sun, 07/22/2012 - 14:06 | 2640534 RiverRoad
RiverRoad's picture

Bread and circuses.

Sun, 07/22/2012 - 12:53 | 2640386 markar
markar's picture

So what the F does Spain do now? riots in the streets, money runs out in 60 days and they can't print.

Sun, 07/22/2012 - 14:37 | 2640601 Treason Season
Treason Season's picture

Overthrow the bankster lickspittle Rajoy.

Sun, 07/22/2012 - 17:21 | 2640954 lakecity55
lakecity55's picture

Civil War 2.

Only this time, it will be banksters getting shot instead of priests.

Sun, 07/22/2012 - 12:56 | 2640391 carbon
carbon's picture

Uh! Me? I admit, some schadenfreude, they had it coming, how dare, keep harrasing and expose on prime time german TV, about swiss Tax haven loopholes.

Sun, 07/22/2012 - 13:01 | 2640399 JackT
JackT's picture

The car ran out of gas a long time ago and those pushing it are exhausted.

Sun, 07/22/2012 - 13:12 | 2640407 elwu
elwu's picture

Idiot social democrat Beck pumped about half a billion euro of taxpayer's money into the Nürburgring.

Every observer was fascinated:it was from the beginning and during the adventure absolutely obvious that there will never be a return on invest, this was impossible.

Beck could have given the money as well to the Greeks, wouldn't have made any real difference.

Sun, 07/22/2012 - 14:44 | 2640617 Treason Season
Treason Season's picture

A German with a mullet and one time head of the SPD, what do you expect?

Sun, 07/22/2012 - 13:24 | 2640441 bigkahuna
bigkahuna's picture

The Germans are now the federal reserve of Europe. If you guys are going to keep asking them for money-why don't you have the common decency to pony up for a first rate high speed printing press so they can print up the euros for you. 

Heck, we will send the bernank over and he can do it for you. He might even bring the vampire squid and the morge along with him. 

In fact I am issuing the requisition for you and immediately kicking their asses across the pond so that they may be of assistance!

Sun, 07/22/2012 - 13:43 | 2640485 RiverRoad
RiverRoad's picture

If the Germans have half a brain in their head, they'll get out of the Euro before anyone else does.  As the sayin' goes on ZH:  He who gets put first, gets out best.

Sun, 07/22/2012 - 14:06 | 2640536 1000pips
1000pips's picture

Rothchild's bailout, just in time for the Olympics.

Sun, 07/22/2012 - 14:30 | 2640587 Yancey Ward
Yancey Ward's picture

First to ask are first in line for dough.  Let's see if the Spanish Federal government actually funds the 18 billion Euros (or whatever it promised) at all, now.

My guess is that the fund was filled with nothing but bullshit designed to entice lenders to continue to fund the localities.

Sun, 07/22/2012 - 14:36 | 2640599 asteroids
asteroids's picture

The DAX is kinda expensive because of all the pumping, I wonder when they'll run tha machine backwards.

Sun, 07/22/2012 - 14:50 | 2640628 Ted Baker
Ted Baker's picture

Bernie Ecclestone is a crook and must be brought to justice not only in the uk for tax evasion but also for corruption and money laundering in Swiss banks

Sun, 07/22/2012 - 16:12 | 2640826 Grand Supercycle
Grand Supercycle's picture

As mentioned before, market intervention has only postponed the inevitable.

Despite short and medium term market vacillation - the following remains a constant :

>> USDX monthly indicators [ie big picture] continue to warn of significant long term USD upside. (thus EURUSD & AUDUSD etc bearish)

>> SPX monthly indicators [ie big picture] continue to warn of significant long term downside for equities which will be worse than 2008.

Sun, 07/22/2012 - 16:47 | 2640883 RiverRoad
RiverRoad's picture

Equities.....schmequities.....they ain't worth the paper theys printed on.  Look out below when everyone wakes up to that.

Sun, 07/22/2012 - 16:30 | 2640860 orangegeek
orangegeek's picture

There's lots of mention of war.  If war breaks out, it will last a week.  It will be the war of the drones.

Sun, 07/22/2012 - 16:48 | 2640884 RiverRoad
RiverRoad's picture

A week!?  We should be so lucky.

Mon, 07/23/2012 - 06:32 | 2641787 silverdragon
silverdragon's picture

Spain, tell the banksters to piss off.

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