Full EU Summit Statement (In All Its Conditional Wishy-Washy Glory)

Tyler Durden's picture

The early Friday morning release of an entirely conditional 'plan' for a 'plan' that will likely require the ESM contracts to be torn up and a new contract to be re-ratified (by ALL members - including Finland and Germany), due to the stripping of the ESM seniority via the EFSF 'workaround', was high-fived by any and all EU leader still standing. Is it any wonder (given the conditionality and ratifications required) that the best the market could manage, on what is now obviously nothing but yet another watered-down talking-point ridden 'promise-of-more-to-come' plan (as opposed to the impossible becoming possible as Ireland's Kenny so eloquently described it), is a 1% pop in US equity futures.


"We affirm that it is imperative to break the vicious circle between banks and sovereigns. The Commission will present Proposals on the basis of Article 127(6) for a single supervisory mechanism shortly. We ask the Council to consider these Proposals as a matter of urgency by the end of 2012. When an effective single supervisory mechanism is established, involving the ECB, for banks in the euro area the ESM could, following a regular decision, have the possibility to recapitalize banks directly. This would rely on appropriate conditionality, including compliance with state aid rules, which should be institution-specific, sector-specific or economy-wide and would be formalised in a Memorandum of Understanding. The Eurogroup will examine the situation of the Irish financial sector with the view of further improving the sustainability of the well-performing adjustment programme. Similar cases will be treated equally.


We urge the rapid conclusion of the Memorandum of Understanding attached to the financial support to Spain for recapitalisation of its banking sector. We reaffirm that the financial assistance will be provided by the EFSF until the ESM becomes available, and that it will then be transferred to the ESM, without gaining seniority status.


We affirm our strong commitment to do what is necessary to ensure the financial stability of the euro area, in particular by using the existing EFSF/ESM instruments in a flexible and efficient manner in order to stabilise markets for Member States respecting their Country Specific Recommendations and their other commitments including their respective timelines, under the European Semester, the Stability and Growth Pact and the Macroeconomic Imbalances Procedure. These conditions should be reflected in a Memorandum of Understanding. We welcome that the ECB has agreed to serve as an agent to EFSF/ESM in conducting market operations in an effective and efficient manner.


We task the Eurogroup to implement these decisions by 9 July 2012."

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macholatte's picture



The can shall be kicked!

"So let it be written. So let it be done."


There is nothing but Hopium available to the "markets". There could only be an agreement to agree subject to approval from others (various legislatures, courts, cronies, etc.). This buys them another 2-4 months to configure something. Then we will likely be right back here. JMHO

Chris Jusset's picture

So, how many times per week has Germany agreed to a new "5 YEAR PLAN" -- with France, Spain, and Italy firmly on-board -- only to have the plan shot down the next day?  Doesn't this happen at least twice per week?  Sometimes 3 or 4 times per week?



lewy14's picture

Actually, this is different.

Germany went in saying "no". They meant it... but they could not make it stick.

It has been demonstrated conclusively that Germany is without the power to say no.

Game changer.

Michael's picture

Let me see if I can get this strait.

Their going to print more money for the banks.

These are private corporations their printing money for.

Did I get that right?

barliman's picture


Yep. That's got to be a first - giving money to banks who took stupid risks.

The luck of the "deal being done" just in time for everyone closing out the quarter - It's a game changer, for sure!



Comay Mierda's picture

in the end they will PRINT

all the central banks will PRINT

i was expecting more downside to commodities, equities, and other risk assets

but now its pretty clear that all informed investors know without a doubt to get out of fiat

this will not end like a 2008 crash

markets and commodities will skyrocket, not collapse, as purchasing power is murdered


eclectic syncretist's picture

The central banks are being allowed to issue credit to banks so that the banks can buy government bonds.  This is being done to avoid the political chaos that would accompany austerity, and there is no intention to helicopter money down on the populace.  It's simply going to keep the governments running, and will be used to try and buy votes.

To the extent that the governments give their borrowed "money" away this could be inflationary, but again, just look at Japan over the past 20 years.

Gold and Silver have been consolidating for well over a year.  The breakout is going to be HUGE.


falak pema's picture

As if you didn't know it was ALL about banks and not sovereigns!

If you read RM posts you KNOW that Eurozone crisis is about Banks contagion and NOT about Greece sovereigns etc. Just like in USA/UK, hidden under the shadow banking and derivative carpet scams. The official balance sheet banking debts in USA PD main banks is a joke if you take into account the netting out of derivative brunch there will be a mega crunch for the TBTF clique.

Why the HF of Anglo zone can speculate on Euro banking contagion and not on their own shenanigans, as they now recently did on JPM whale jeopardy, is beyond me!

This manipulated market is skewed by "exorbitant privilege" and ZIRP/QE FED play. And it will come home to roost one day!

On both sides of the pond. 

old naughty's picture

Does sovereign exist?

Them and US.


Oh, there's no US?

eclectic syncretist's picture

One important point: they are not going to "print money".  what they are going to do is "issue debt" or "print credit".

In other words, they are going to lend the banks money so that they can buy government bonds and keep the game going a while longer. 

obejoyful's picture

You have to be kidding me, Game Changer.  So everything is alright now, did you fall for the last 20 Game Changers?

No, nothing has changed.  

They cannot change it they can only delay it.

jez's picture

How can all these summits be summits?


Holding a summit meeting necessitates it having a quality of summitness about it. It has to be all summity.


These are more like foothills meetings. All they ever decide is the date of the next one.

strongband's picture

what is your icon a photo of exactly

Max Fischer's picture



No offense, but I find this article boring, so I'm going to switch topics:  SILVER!

Today is the last day of the second quarter, and silver is poised for its worst quarterly performance in 4 years!  At today's prices, everyone who has bought silver since late 2010 is a bagholder. It seems that no matter how much money Bernanke prints, silver wants to go back to its intrinsic value: $5. 

Hillbillies done got mad now! 

As I've mentioned before, please take a look at a chart of the 1980 silver crash, because we're retracing it almost perfectly.  Here's an article from a year ago.  If you update this chart to include this past year's worth of data, the charts are alarmingly identical. 


Wasn't the COMEX suppose to default by now?  Wasn't there a world-wide shortage of silver that was suppose to trigger an industrial panic and send silver to parity with gold, and beyond?  

What kind of "true money" loses 50% of its value in 14 months?




devo's picture

So then don't buy silver.

Rubicon's picture

This prick keeps valuing silver in Fiat.



devo's picture

I just don't understand why, if he hates silver so much, he just doesn't buy it. He acts like someone is forcing him to buy silver.

Instead he is getting mad at silver, which is plain weird.

Max Fischer's picture



Getting mad at silver?  Yeah, that is weird... libertarian hillbillies are weird.  How could you interpret my post as an anger fit against silver?

I'm trying to point out the lunacy of SILVER BUGS, LIKE YOU!  I find it truly fascinating all the different sorts of ways you hillbillies respond when I hold a mirror to you guys.  Some of you think I'm mad at silver; others still think price doesn't matter; or that 1980 doesn't matter; or that the x axis on the 1980 chart invalidates the whole thing; or that as long as you have your coins in your safe, nothing else matters; or that silver is on its way to $5000 no matter what's happened this past year.  *LOL*

Delusion is really a good bit entertaining. 


devo's picture

If you like delusion you should follow the stock market. It's been stuck in the mud for 12 years and counting.

devo's picture

Define "Silver Bug".

I own maybe 100oz and realize it can go to $5 (or $100). I don't really care either way since I don't need the dollars I converted into silver.

tocointhephrase's picture

STRONG HANDZ BITCHEZ! OH AND THATS 18 Kilos and counting lol (all in nice little 1 oz form)

LeisureSmith's picture

Max's shrink told me that when he was just a teenage girl his silverplated vibrator died on him, it was faulty soldering but he still blames the silverplating.

eclectic syncretist's picture

He's just a troll.  There are getting to be more and more here lately, just trying to distract from our collective focus on the inherent fraud of fiat.

This announcement is a clear clarion call to load up on PM BTW.

Max Fischer's picture



Well, it exchanges for much fewer bananas and moon rocks over the past 14 months, too.  

But that seems a little less relevant, wouldn't you say?


Max Fischer's picture



I'm NOT!  I don't go to churches where the congregation plays with snakes, either.... but that doesn't mean I don't find it fascinating to watch on YouTube.


ArgentoFisico's picture

Hi, Max, take a look to this other comparison of today price action to 1980 bubble... but without stretching the charts to make them say what you want:


ArgentoFisico's picture

Silver was at 5$ back when i was a little kid... what about simple inflation?!

tarsubil's picture

"... but without stretching the charts to make them say what you want."

That's the first thing I noticed with Max's "analysis".

I wonder if Max will respond? Hmmm...

MeelionDollerBogus's picture

Maxi-pad definitely has an allergy to silver.

Lebensphilosoph's picture

Max, admit it, you don't go to church because you have to make up for the time you lost between sundown on Firday and sundown on Saturday  turning off all your electrical equipment and doing nothing whatsover.

you enjoy myself's picture

What kind of "true money" loses 50% of its value in 14 months?

"value" - i don't think that word means what you think it means.   a 50% decline means nothing when, whether it be 1 year or 5 years from now, silver goes from $26 to $5000.  

francis_sawyer's picture

Don't bother even feeding this troll...

The idiot chart he linked is from June 2011... Which means, if his theory is correct (and there is any kind of correlation to 1980), Ag should be way below $15 now, a year later... Otherwise, there is no correlation whatsoever...

Quote (from linked article):

"The key point of difference between the two periods in this comparison is that I had to bend time a little bit in order to align the other chart structures."


See that Max? There's HOPE for you... Seeing as ~ If you bend time a little, you can just about line anything up with anything... Maybe in some obtuse universe, you actually have a functioning brain...

Max Fischer's picture




See... I knew if I switched topics, this would be more interesting!

I don't give a flying FUCK about the x axis, only the y axis.  

It's all about the y axis, you hillbilly!

Just keep buying silver and pretend that 1980 is irrelevant.  I'll keep reminding everyone that 1980 is PERFECTLY RELEVANT, and we'll see who cares about the x axis is another year.


devo's picture

1929 seems more relevant.

francis_sawyer's picture



Yeah maybe you're right... Since you seem to pine so much for 1980, maybe "Captain & Tenille" will come back with a remake of "Do That To Me One More Time" & you can dust off your old album collection & re-live your glory days...

fuu's picture

Hey! Congrats on keeping an account active for an entire 53 week period. I am so proud of you!

MeelionDollerBogus's picture

1980, the single one year something (silver) didn't do well but it did well just about every other year? That's relevant? Maxi-pad, your head is on backwards.

LeisureSmith's picture

I'm a bagholder and i feel great. A bag of Silver will do that to a person, always has.

Max Fischer's picture



I know you feel great!  That's why I find you hillbillies so fascinating!

Maybe if it falls to under $10, you'll get orgasmic!

From a psychological perspective on the power of delusion, this is top-notch stuff!


LeisureSmith's picture

Max, you stike me as a secret silverlover, kinda like gaybashing republicans who goes cockhunting on the side. I bet you and your friend Roy get down and dirty with his silverware on weekends. Trollfeed is on the house.

tocointhephrase's picture

Hillbillies....in London Town.....where?

ArgentoFisico's picture

Yessss! I would get orgasmic!

flyingpigg's picture

MF, I'm a bag holder indeed, and the bag is filled with silver coins.

No counterparty risk Bitchez!

tocointhephrase's picture

First they ignore you, then they ridicule you, then they fight you, then you win Mohandas Karamchand Gandhi

Nussi34's picture

The Euro is a Lira now!

bigwavedave's picture

go on then. short spanish and italian bonds. i dares ya.

Xibalba's picture

and gold is unable to recoup the days losses.