• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

FT Reports Europe To Sacrifice Its Banks To Bailout Sovereigns - Under €100 Billion In Bank Recap Funding Available

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Wed, 10/19/2011 - 15:23 | 1789996 mayhem_korner
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Economists call this "scarcity."

Wed, 10/19/2011 - 15:33 | 1790037 hedgeless_horseman
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they have finally done the math and realize that to get the €2 trillion or so in EFSF insured capital they have to sacrifice their banks.

Have to?  No.  They will just sacrifice the EUR/USD and print more Euros, which makes Turbo Tax Tim smile.

Wed, 10/19/2011 - 15:33 | 1790044 LawsofPhysics
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Was thinking the same thing.  Timmy and Ben will get their inflation come hell or high water.

Wed, 10/19/2011 - 15:59 | 1790140 flacon
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"Sovereign" ----> most over-rated word of 2011

Wed, 10/19/2011 - 16:01 | 1790152 tmosley
tmosley's picture

And simultaneously the most underrated word in modern history.

Wed, 10/19/2011 - 16:45 | 1790254 dlmaniac
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Who do we rape taxpayers for, bankers or Sovereigns? Hmmm, such a tough decision.

Wed, 10/19/2011 - 18:54 | 1790690 AldousHuxley
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it is more old rapes the young because they joined the ponzi earlier and rode the boom.

America with her corrupt selfish boomer leadership will soon become Italy in the future....


"To be frank," she said, "we've been a country in decline since the 1980s – had we but seen it. Actually, there are plenty of people, including in government, who still won't see it. All we can do now is try to manage that decline a bit better."

It's also a gerontocracy, she said, "run by the old, for the old. The prime minister is 76, the president is 87, the new head of the Bank of Italy will probably be a guy in his 70s, everyone in authority is old. I'm 49, and at the university I'm still considered 'promising'. So it's very, very hard for young people. I have former PhD students working in call centres." - Italian


smart young ones are already planning to move out.

Wed, 10/19/2011 - 15:57 | 1790132 Gadfly
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A false paradim really in light of our highly-interconnected financial world.  But if the choice were real and distinct, most would prefer to see the banks fail.  And then the sovereigns would become the banks... and then they would fail.

Wed, 10/19/2011 - 16:25 | 1790216 semperfi
semperfi's picture

INFLATE -or- DIE ???
someone's gotta go back and get a shitload of printer cartridges

Wed, 10/19/2011 - 16:41 | 1790248 Smiddywesson
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Have to?  No.  They will just sacrifice the EUR/USD and print more Euros, which makes Turbo Tax Tim smile.

Half right.  They will print what they need to print, while they stack gold and prepare to ramp the price of that gold so their balance sheets, well, balance.  That's the rabbit up the sleeve.

Thu, 10/20/2011 - 01:43 | 1791668 eureka
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NO. I've been saying it for months: European sovereigns will nake their banks take haircuts - and - US banks will carry part of it, because they rigged both European sovereigns and EWuropean banks, and insured the fiat bubble with garbage paper CDS. 

Consequently EU and EUR prevails and US and USD goes down.

Watch carefully - it will happen last minute - and then very fast.

Wed, 10/19/2011 - 16:11 | 1790176 sushi
sushi's picture

Damp squib is UK speak for a wet firecracker. It won't go off. No bang. Weak phizz. Some wisps of smoke.

Wed, 10/19/2011 - 17:01 | 1790308 RichardENixon
RichardENixon's picture

Sounds like what's been happening when I try to bang the old lady these days.

Wed, 10/19/2011 - 19:50 | 1790870 Getagrip
Getagrip's picture

I'm buying all the Euros 

I'm buying all the euros I can while they are still available! If they're good enough for Switzerland, they're good enough for me!!!!











Wed, 10/19/2011 - 15:25 | 1790000 LawsofPhysics
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What liquidity problem?  < snark >

Wed, 10/19/2011 - 15:26 | 1790002 Sequitur
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Wed, 10/19/2011 - 15:46 | 1790067 hedgeless_horseman
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...for U.S. Treasuries and Gilts, which is the reason for the season of European discontent.

Oceania has always been at war with Continental Europe.

Wed, 10/19/2011 - 15:48 | 1790110 jm
jm's picture

Long no fear of the printing press.

Wed, 10/19/2011 - 16:00 | 1790125 hedgeless_horseman
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Exactly!  There is nothing to be afraid of.  These two progressive humanitarians have shown the rest of the world how to manage inflation.




Wed, 10/19/2011 - 16:04 | 1790162 The Third Man
The Third Man's picture

From the article....


"The whole financing deal was set up on Chavez’s order by Chavez’s head of security, Gen. Henry Rangel."


General Rangel? Is that Charlies Rangel's brother? I knew there was something fishy about that family! ;-)

Thu, 10/20/2011 - 07:05 | 1791836 falak pema
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is she the next president with plastic boobs?

Wed, 10/19/2011 - 16:05 | 1790165 jdelano
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Seq--Noooooooo!  Don't join them.  It's a disease.  Like zombification.  

Speaking of which--you know how, in the zombie movie, the hero stabs the zombie through the eye or something and he thinks it's dead but after lying there a minute it roars back to life and attacks....that's this zombie market and the hero is ZH, which ought to alternately be called ZombieHeadhunter.  

Come on Zombie Headhunter, cut off the head, cut of the head!

Wed, 10/19/2011 - 15:26 | 1790003 mayhem_korner
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European leaders are due to ratify the plan at the weekend, alongside a broader sweep of initiatives to strengthen the eurozone,


Seems pablum is the precursor to hopium.  As Cris Carter would say...C'mon man.

Wed, 10/19/2011 - 15:26 | 1790004 St. Deluise
St. Deluise's picture

buy the rumour

sell the squib

Wed, 10/19/2011 - 15:26 | 1790005 ZippyBananaPants
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lower colon.  haha.  you must mean spinkter hole


Wed, 10/19/2011 - 15:38 | 1790065 sabra1
sabra1's picture

i thought he was refering to colon powell!

Wed, 10/19/2011 - 15:26 | 1790006 dr.charlemagne
dr.charlemagne's picture

well......we certainly do find ourselves in quite a pickle. LOL

Wed, 10/19/2011 - 15:45 | 1790097 PianoRacer
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Origin of the phrase "damp squib"

While most modern squibs used by professionals are insulated from moisture, older uninsulated squibs needed to be kept dry in order to ignite, thus a "damp squib" was literally one that failed to perform because it got wet. Often misheard as "damp squid",[8] the phrase "damp squib" has since come into general use to mean anything that fails to meet expectations.[9] The word "squib" has come to take on a similar meaning even when used alone, as a synonym for dud.

Wed, 10/19/2011 - 22:09 | 1791246 Crisismode
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You are just reciting Wikipedia.


Please give credit.

Wed, 10/19/2011 - 15:27 | 1790009 ZeroPoint
ZeroPoint's picture

So when does this motherfucker pop? Give me a date dammit.

Wed, 10/19/2011 - 15:27 | 1790010 lizzy36
lizzy36's picture

So the take away is I am not getting my damn pony again this weekend.

Well moving on to "Wanting a Hippopotamus For Christmas".

Wed, 10/19/2011 - 15:29 | 1790028 fuu
fuu's picture

You have been bad this year Lizzy, nothing but coal for you.

Wed, 10/19/2011 - 16:04 | 1790161 Poetic injustice
Poetic injustice's picture

Vagons of coal for 12 hours/day. Future of many.

Wed, 10/19/2011 - 15:29 | 1790012 Mercury
Mercury's picture



No market here kid...trades on the pinks!

Wed, 10/19/2011 - 15:28 | 1790016 zorba THE GREEK
zorba THE GREEK's picture

The ECB and the Fed will save the banks, that is their primary purpose.

And since Central banks can print money, consider it done. 

Wed, 10/19/2011 - 15:46 | 1790100 css1971
css1971's picture

Y'know. I don't really think the ECB is a central bank... I'm not entirely sure what it is, but it certainly doesn't behave like one.

Thu, 10/20/2011 - 01:19 | 1791643 qussl3
qussl3's picture

Pretty sure its deposit facility and SMP had allowed the EZ zombies to hide the various levels of decay thus far.

Wed, 10/19/2011 - 15:28 | 1790017 mynhair
mynhair's picture

Christ, why can't Europe start a 'Dancing With The Czars' TV program and go veg out!

Wed, 10/19/2011 - 15:28 | 1790018 chet
chet's picture

Almost time for the Big Short Part Duex?

Wed, 10/19/2011 - 15:37 | 1790038 mayhem_korner
mayhem_korner's picture



I think the original will need a new title once this puppy goes paws up.

Wed, 10/19/2011 - 15:28 | 1790019 -Michelle-
Wed, 10/19/2011 - 15:33 | 1790042 nyse
nyse's picture

Good one. Thx

Wed, 10/19/2011 - 16:00 | 1790141 Mentaliusanything
Mentaliusanything's picture

Passing the LIT SQUIB (Fire in the Hole)

Wed, 10/19/2011 - 15:29 | 1790022 streblo
streblo's picture

Squibs ignite explosives/fireworks. Damp squibs don't ignite. Hence, a damp squib means fireworks are expected, but nothing happens.



Wed, 10/19/2011 - 15:29 | 1790023 s2man
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If something is expected to have a great effect or impact but doesn't, it is a damp squib.

Wed, 10/19/2011 - 15:29 | 1790027 eBuddha
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and the idiots on CNBC have a link that asks "Has Market Sentiment Diverged From Reality?" -- suggesting people are just too negative.


Wed, 10/19/2011 - 15:33 | 1790043 jdelano
jdelano's picture

I was cracking up when I read that this morning--clicked on it cause I thought CNBC was actually going to comment on how insane this rally has been.  Damn near pissed myself when I realized they meant that market sentiment is "negative"  (11% rallly?) while the realities (End of the free world) are positive....

heheheheheh actually, chuckling as I write this...

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