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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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Fri, 06/29/2012 - 01:37 | 2572364 ACP
ACP's picture

Poka, EU!

Fri, 06/29/2012 - 02:17 | 2572406 macholatte
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

Fri, 06/29/2012 - 02:59 | 2572460 Chris Jusset
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?



Fri, 06/29/2012 - 03:15 | 2572469 lewy14
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.

Fri, 06/29/2012 - 03:40 | 2572478 Michael
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?

Fri, 06/29/2012 - 03:54 | 2572483 barliman
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!



Fri, 06/29/2012 - 06:57 | 2572568 Comay Mierda
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


Fri, 06/29/2012 - 07:59 | 2572672 eclectic syncretist
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.


Fri, 06/29/2012 - 04:16 | 2572498 falak pema
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. 

Fri, 06/29/2012 - 05:34 | 2572537 old naughty
old naughty's picture

Does sovereign exist?

Them and US.


Oh, there's no US?

Fri, 06/29/2012 - 07:46 | 2572646 eclectic syncretist
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. 

Fri, 06/29/2012 - 04:52 | 2572519 obejoyful
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.

Fri, 06/29/2012 - 04:32 | 2572511 jez
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.

Fri, 06/29/2012 - 02:23 | 2572415 strongband
strongband's picture

what is your icon a photo of exactly

Fri, 06/29/2012 - 02:35 | 2572427 macholatte
Fri, 06/29/2012 - 02:33 | 2572425 Max Fischer
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?




Fri, 06/29/2012 - 02:41 | 2572442 devo
devo's picture

So then don't buy silver.

Fri, 06/29/2012 - 03:54 | 2572482 Rubicon
Rubicon's picture

This prick keeps valuing silver in Fiat.



Fri, 06/29/2012 - 04:05 | 2572486 devo
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.

Fri, 06/29/2012 - 04:14 | 2572496 Max Fischer
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. 


Fri, 06/29/2012 - 04:31 | 2572507 devo
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.

Fri, 06/29/2012 - 04:42 | 2572514 devo
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.

Fri, 06/29/2012 - 05:20 | 2572530 tocointhephrase
tocointhephrase's picture

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

Fri, 06/29/2012 - 04:16 | 2572500 LeisureSmith
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.

Fri, 06/29/2012 - 07:49 | 2572656 eclectic syncretist
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.

Fri, 06/29/2012 - 04:06 | 2572490 Max Fischer
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?


Fri, 06/29/2012 - 04:10 | 2572493 devo
devo's picture

So don't buy it.

Fri, 06/29/2012 - 04:18 | 2572501 Max Fischer
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.


Fri, 06/29/2012 - 07:12 | 2572582 ArgentoFisico
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:

Fri, 06/29/2012 - 07:14 | 2572587 ArgentoFisico
ArgentoFisico's picture

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

Fri, 06/29/2012 - 07:24 | 2572605 tarsubil
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...

Sat, 06/30/2012 - 00:05 | 2575384 MeelionDollerBogus
MeelionDollerBogus's picture

Maxi-pad definitely has an allergy to silver.

Fri, 06/29/2012 - 08:49 | 2572797 Lebensphilosoph
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.

Fri, 06/29/2012 - 03:01 | 2572462 you enjoy myself
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.  

Fri, 06/29/2012 - 03:15 | 2572467 francis_sawyer
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...

Fri, 06/29/2012 - 04:03 | 2572489 Max Fischer
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.


Fri, 06/29/2012 - 04:09 | 2572492 devo
devo's picture

1929 seems more relevant.

Fri, 06/29/2012 - 04:11 | 2572494 francis_sawyer
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...

Fri, 06/29/2012 - 09:59 | 2573074 fuu
fuu's picture

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

Sat, 06/30/2012 - 00:07 | 2575386 MeelionDollerBogus
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.

Fri, 06/29/2012 - 03:12 | 2572468 LeisureSmith
LeisureSmith's picture

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

Fri, 06/29/2012 - 04:22 | 2572504 Max Fischer
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!


Fri, 06/29/2012 - 04:50 | 2572520 LeisureSmith
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.

Fri, 06/29/2012 - 05:30 | 2572533 tocointhephrase
tocointhephrase's picture London Town.....where?

Fri, 06/29/2012 - 07:40 | 2572639 ArgentoFisico
ArgentoFisico's picture

Yessss! I would get orgasmic!

Fri, 06/29/2012 - 03:39 | 2572477 flyingpigg
flyingpigg's picture

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

No counterparty risk Bitchez!

Fri, 06/29/2012 - 05:54 | 2572540 tocointhephrase
tocointhephrase's picture

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

Fri, 06/29/2012 - 05:57 | 2572546 Nussi34
Nussi34's picture

The Euro is a Lira now!

Fri, 06/29/2012 - 01:35 | 2572367 bigwavedave
bigwavedave's picture

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

Fri, 06/29/2012 - 02:06 | 2572402 Xibalba
Xibalba's picture

and gold is unable to recoup the days losses.  

Fri, 06/29/2012 - 01:36 | 2572370 Yen Cross
Yen Cross's picture

Rinse wash/ risnse wash usd$ every night . Asian central banks rinse wash usd dollars, and rebalance in london every night.

Fri, 06/29/2012 - 01:39 | 2572371 GlassSteagall
GlassSteagall's picture

It doesn't take much to juice up middle of the night markets. ES at 1340; I have a real hard time believing this. With ACA being upheld, I would think that the market would not be too happy ... but, alas just another opportunity to scare the short population.

Fri, 06/29/2012 - 01:56 | 2572397 HaroldWang
HaroldWang's picture

We've learned by now that when the futures ramp like this on news of a plan of a plan, the market opens higher, washes out a bunch of shorts, then sells off the rest of the day. How many times can you watch a really bad movie without throwing the remote through the tv?

Fri, 06/29/2012 - 02:54 | 2572457 you enjoy myself
you enjoy myself's picture

i now look at all these full-retard ramps with detached bemusement.  like, why do i have to keep watching this same f'ing sitcom episode over and over?  amuse me, dammit!  entertain me, challenge me!  screw these timid, predictable 1-2% instantaneous pumps on rumors of rumors about a plan.  i want to see 50, maybe even 100, point ramps in minutes.  just so i know you can do it.  

Fri, 06/29/2012 - 01:38 | 2572372 barliman
barliman's picture


So, once again ...

Nothing from nothing leaves ...Nothing!

Yep, that should fix everything ... till 3, 2, 1 ...


Fri, 06/29/2012 - 01:42 | 2572376 LouisDega
LouisDega's picture

Billy Preston Biotchezz

Fri, 06/29/2012 - 03:55 | 2572465 barliman
barliman's picture


For any of our early morning readers who might need things broken down into more digestible bits before they have had their coffee ...

The last trading day of the month, quarter, and for some companies, the fiscal year is now underway ...

... and THEY needed a better story than "Japan's Industrial production contracts by the largest amount since the March 2011 quake/tsunami" to try to cover up the GIANT ROCK WALL of TAXES needed to fund ObamaTAX ...

... to get THEM through the day.

In other news that has not happened yet, Angela Merkel will be releasing a statement at 10:00 PM Germany time on June 29th that she has no idea of what this fucking "agreement" is and the answer is still "NEIN!"


Fri, 06/29/2012 - 01:45 | 2572380 williambanzai7
williambanzai7's picture
Fri, 06/29/2012 - 02:36 | 2572428 Temporalist
Temporalist's picture

Because of the Billy Preston comment above and yours:

Don't Let Me Down

Fri, 06/29/2012 - 02:39 | 2572439 Michael
Michael's picture

They're playing right into my plan.

Fri, 06/29/2012 - 01:51 | 2572382 Chaffinch
Chaffinch's picture

Euro up 1%, so Dollar down, so Gold up 1% and Silver up 2%. About bloody time we had a good day!
But when can we have Euro down 5% because Europe is falling apart, Dollar down 5% because the US is heading for default too, and all the rest of the paper currencies down too...?
Thanks for Number 9 Bill! Perfect soundtrack for this craziness!

Fri, 06/29/2012 - 01:47 | 2572383 Huna
Huna's picture

Hu's on First...

Fri, 06/29/2012 - 01:54 | 2572391 Chaffinch
Chaffinch's picture

Watts on 2nd
Ida Noe's on 3rd

Fri, 06/29/2012 - 01:52 | 2572385 Bunga Bunga
Bunga Bunga's picture

Bottom line: No Euro bonds. 

But saves one or two days for Wall St.

Fri, 06/29/2012 - 01:55 | 2572394 lewy14
lewy14's picture

Germany was rolled. Just a bit, but rolled, nonetheless.

This is how Germany will surrender over the next couple years. By inches.

The summit has given further evidence that they have no power to retain their own sovereignty.

Fri, 06/29/2012 - 04:05 | 2572485 piliage
piliage's picture

What has Germany given up? After tons of pressure, Merkel says, "uh...yea, sure, direct funding of banks. But no extra money for the ESM fund." Everyone lights cigars and slaps each other on the back, when in fact:

1) She gives no more new money to the fund (and Italy and Spain need about 2.5 to 3 trillion actually, 500 bil isn't nearly enough)

2) She knows that the constitutional court of Germany will not pass this agreement as they have already ruled that giving money to banks directly is against current german law

3) The only way this will pass is with a finance minster in Brussels (controlled by German liquidity) that gets oversight over southern europe and france's budgets, which would then pass the muster with the german constitutional court

And don't forget, this does jack squat to solve the core problems of unemployment and a lack of growth in Greece and Spain, two countries with a nasty habit of civil wars and military coups.

In other words, she simply got what she has been saying she wants with the illusion of climb down to those too foolish to realize she didn't.


Fri, 06/29/2012 - 04:25 | 2572505 lewy14
lewy14's picture

@piliage - just to be abundantly clear - I didn't mean to suggest that any of the core problems have been solved, or that the funds proposed were "enough".

Only that Germany has no apparent power to refuse the creeping transfer union which is being imposed on them.

From the FT:

Under revised rules demanded by Italy, countries that want the eurozone bailout fund to purchase their bonds – an essential way of lowering their borrowing costs – will no longer be subject to Greek-style monitoring programmes. Instead, they would simply have to maintain their EU debt and deficit commitments, though EU authorities could mandate tighter deadlines and timetables.


Italy is expected to make use of the new bond purchase plan. “It is a double satisfaction for Italy,” said Mario Monti, the Italian prime minister. For Angela Merkel, the German chancellor who had for months insisted she would agree no new short-term rescue measures, the deal was a significant concession.

[Emphasis mine].

What is essentially German money will, under these terms, buy Italian debt at auction, without recourse to mechanisms which would enforce any fiscal discipline on Italy. 

Spain and Italy threatened to turn Europe into an ungovernable mess, and won substantial concessions. Merkel was made to agree to that which she specifically stated she would refuse to agree to.

Germany's only counter will be for Merkel to utterly fail politically in her own country - perhaps via the German Constitutional Court, as you allude to - and not threaten, but actually become an ungovernable mess themselves.

But really Germany has nothing to show for its years of productive "savings" except claims on the rest of Europe. Those can simply be renounced.

Fri, 06/29/2012 - 04:55 | 2572523 falak pema
falak pema's picture

+1 Good analysis of Germany's conundrum. They are stuck with Italy and Spain banking holes and they know it, as does France. No getting away from their common destiny VIA banking contagion and also integrated mercantile economy of German exports. 

Fri, 06/29/2012 - 04:58 | 2572524 piliage
piliage's picture

From the same article: " The change, agreed as part of a deal struck in the early hours of Friday morning, will not happen immediately, however. Instead the leaders agreed it would come only after the eurozone set up a single banking supervisor to be run by the European Central Bank.

So, let's guess the nationality of who this person is. And let's see how much money beyond the current fund actually flows.

Fri, 06/29/2012 - 05:59 | 2572542 lewy14
lewy14's picture

@piliage, the "change" referred to in your quote is the change to the removal of the bailout funds for the Spanish banks from the Spanish sovereign balance sheet.

The funds themselves will have been disbursed already, from the EFSF.

Will EUR 80B or so do the trick? Probably not, but should hold them for a bit.

And then?

Another crisis, of course. And so here's the key bit:

What evidence do we have that, in extremis, Germany will be able to stick to their positions and avoid getting rolled into providing more concessions?

Yesterday's events provide us with no evidence of German strength - only evidence that the balance of power to force outcomes lies with the Latin bloc.

There will indeed be a "next time", but there is no reason to suspect that "next time" will be any different.

Finally, with respect to the nationality of the future EU wide banking supervisor, I would observe that while the Pope is German, the current ECB head is Italian. Strange times.

Fri, 06/29/2012 - 01:51 | 2572387 max2205
max2205's picture

I am positive the SEC will prosecute whomever (Jamie?) bought all those ES before the close Thursday....ummmm



Fri, 06/29/2012 - 05:19 | 2572529 IBelieveInMagic
IBelieveInMagic's picture

Just bite sized perks of the job!

Fri, 06/29/2012 - 01:52 | 2572388 pashley1411
pashley1411's picture

"the vicious cycle between soverigns and banks" looks an awful lot like what happens when I hit the flusher.     And the proposed solution is a deux ex machina agency filled with enough bureaucrateese to try to order the swirling gurgling sloppy mess to "stop!".  Just like that.

Farage is correct, the Red Queen's Court has nothing on the EU.       

Fri, 06/29/2012 - 01:53 | 2572389 slackrabbit
slackrabbit's picture

 the impossible becoming possible has now become impossible 

Fri, 06/29/2012 - 01:53 | 2572390 HaroldWang
HaroldWang's picture

Ground Hog Day. Another summit, another plan to make a plan, another futures flying on the news.

This should certainly fix all the awful data we've seen in the US. It should certainly fix Ford being able to sell more cars in Europe. It should certainly fix all the earnings reports that will be crushed by slow sales to Europe. 

All is well in the world now. Ahhh...feels good. Until nothing is implemented; infighting occurs and the union breaks up. Until then, buy, buy, buy!

Fri, 06/29/2012 - 01:53 | 2572392 PhattyBuoy
PhattyBuoy's picture

I have heard about a perpetual motion anti-gravity machine,


on a long enough timeline ...



Fri, 06/29/2012 - 01:55 | 2572396 genr8n
genr8n's picture

Greece will be happy ... squeal loud enough and you'll get some joy.... Monday's rescheduled Troika visit will be a reality check?

Fri, 06/29/2012 - 02:00 | 2572399 AldoHux_IV
AldoHux_IV's picture

So solving a debt problem with more debt or addressing a solvency problem with liquidity solutions-- seen this movie before and the sequels keep coming and get more lame and desperate.

In other news, the world still in denial it is broke and market is happy about that.

Fri, 06/29/2012 - 05:24 | 2572532 IBelieveInMagic
IBelieveInMagic's picture

What else is there to do! Anyone defecting from this game will unhinge the system, hence everyone will compromise. I am sure there are unstated tradeoffs that are agreed between the parties. Some give-and-take that is agreed informally.

Fri, 06/29/2012 - 02:04 | 2572401 mharry
mharry's picture

Can I get a re-ratified contract on my house? Thought naught.

Fri, 06/29/2012 - 02:30 | 2572421 CCanuck
CCanuck's picture

I can set you up with a new money market, MBS, CDO, CDS, then Hypothocate the MBS to cover the ESM, then a Re-Hypothocated MBS backed by More CDS...and your set,...........AND IT"S GONE!

You must move out by The 4th of July, we have to Re-RE-Re-hypothocate your home to cover your losses.

Thanks for doing business with us, Have a nice day.


Fri, 06/29/2012 - 02:11 | 2572404 Albertarocks
Albertarocks's picture

"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."


... which is exactly why Canada said she would not help bail out Europe.  If the money is to go to the banks directly, Canada won't give the whores a penny.  And Angela got her panties all in a knot over it.  Well as we like to say in the Great White North Angela... f'k you.

Fri, 06/29/2012 - 02:16 | 2572408 Yen Cross
Yen Cross's picture

 Fuck japan and their yen? Japan is toast! I tried to tradethe yen after a long break. That piece of shit currency is mindless!

     The yen is a joke! it should have boiled off when us bond yields on the long end,, looked more attractive.

 Japan is a fucking global joke!  I'm tired of their radioactive shit washing up on my beaches! Fuck Japan I'm  FUCKING FLAT anything Japan!

Fri, 06/29/2012 - 02:24 | 2572416 CCanuck
CCanuck's picture

Ouchhh...still got a face under that bag?


Fri, 06/29/2012 - 02:39 | 2572434 SeattleBruce
SeattleBruce's picture

"I'm tired of their radioactive shit washing up on my beaches!"

Don't you have GE at least partly to blame for that?

Fri, 06/29/2012 - 04:46 | 2572518 piliage
piliage's picture

No. How about piss poor japanese managment and a complete and total lack of any leadership. IF anything, this story is one of a group of guys about as effective as extras in a Godzilla movie doing everything they can to make a reactor fail and the damn thing holding on well beyond what everyone assumed were its design limits.

Fukashima is a testimony to how robust those 50 year old reactors actually are, and how shit the Japanese are at crisis managment and leadership.

Read it and weep here:




Fri, 06/29/2012 - 02:20 | 2572409 HaroldWang
HaroldWang's picture

In other news, German miss expecations and come in negative tonight.

In other news, French GDP comes in at zero.

In other news, NKE, F, RIMM, BBY, etc., etc., all have awful earnings blaming the slowdown (read, depression) in Europe.

Yes, this should get fixed overnight, no problem!

Fri, 06/29/2012 - 02:23 | 2572413 BeetleBailey
BeetleBailey's picture

Woke up and looked the charts and thought "FUCK! Someone shot Obama/FUCK...Someone shot Monti/FUCK..Someone shot Corzine"...then saw this.....'news"........

Immediately began preparing shorts....

Fri, 06/29/2012 - 02:23 | 2572414 BBullionaire
BBullionaire's picture

Didn't Soros warn of 3 days to save the Euro earlier in the week? More MAD I assume. Still it'll make him look a twat, the guy that shorted the BoE can now be known as the man that predicted the collpase of the Euro in 3 days and nothing much happened.

Fri, 06/29/2012 - 02:29 | 2572420 HaroldWang
HaroldWang's picture

No, this IS the Euro collapsing. Just in slow motion.

Fri, 06/29/2012 - 02:37 | 2572429 Yen Cross
Yen Cross's picture

As Tyler succinctly pointed out. The euro is undervalued by 900 pips against the U.S. dollar based on Fed/ECB balance sheets.

Fri, 06/29/2012 - 02:28 | 2572419 Milton Waddams
Milton Waddams's picture

That 'free', yet manipulated, markets even exist is a miracle.  Within your generation you will see a headline that reads something like this: 'based on internally derived figures the central authorities have declared that today the price of XYZ is to be traded within a band of X and Y.  All trades outside the band are illegitimate and will be investigated'.

Fri, 06/29/2012 - 05:00 | 2572526 Alpha Monkey
Alpha Monkey's picture

And there are no drugs to be found because they are illegal too.

Fri, 06/29/2012 - 02:31 | 2572422 time123
time123's picture

News from Europe are confirmation that we have seen the lows for the year, just above DJIA 12,000 on June 4.

We are now heading higher and our target of DJIA reaching 14,500 sometime within 2012 starts to appear closer than ever before.

You heard it here first!

time123 (admin for )

Now posting FREE DAILY updates of market direction indicators.

Fri, 06/29/2012 - 02:52 | 2572423 Solon the Destroyer
Solon the Destroyer's picture

This will not add liquidity or solvency to the system. In fact the lack of seniority and the unsecured nature of this deal will likely add more fear and panic to the system while putting central bank balance sheets at risk. Then there's the ratification time lag too.

If it ever gets ratified... Europe will have gone all-in on its future.

Fri, 06/29/2012 - 02:40 | 2572436 devo
devo's picture

If a human tries to trade the market tomorrow they will get their face ripped off.

Fri, 06/29/2012 - 02:41 | 2572444 hornster
hornster's picture

This release must have been issued by the Ministry of Silly Walks.

Fri, 06/29/2012 - 02:41 | 2572445 zebra
zebra's picture

so it is like... we really need to solve this problem, and we will work together to solve this problem, and we are determined to do so... but if we are really capable of doing so, why didn't we do it already?????

because EU leaders have to accumulate enough ES contracts at market low first before making the announcement, and then we can all retire and could not even care less unless it is the end of the world.

Fri, 06/29/2012 - 02:43 | 2572446 Yen Cross
Yen Cross's picture

  This crap is Q-2 flows, and I thought most of it was done. I miscalculated, and need to rebalance.

   The same games are being played though. aud/usd parabolic almost 200 pips in a 15m candle? I have been watching aud bond yields all week. That tells me flows are being moved before Q-2 END. Demand drives yields down. 

    That tells me long term money is parked, and RBA may lower rates further. That signals a strong monthly sell signal in the Australian dollar.

Fri, 06/29/2012 - 02:45 | 2572450 Solon the Destroyer
Solon the Destroyer's picture

Who is going to want to ante up under these terms?

How does this encourage anyone to buy sovereign debt? Because they won't get subordinated? It doesn't change the fundamentals. The structural problems will still be there.

Fucking dumbasses.

Fri, 06/29/2012 - 02:47 | 2572452 AvenoSativo
AvenoSativo's picture

So, Angela Merkel is no Maggie Thatcher after all!

The Italian old fox and French passive aggressor outwitted Merkel.

I wonder whether this is a repeat of history (i.e. repeated behavior patterns of the interaction among the Europeans) and at one point Germany will have to hit back hard one more time.

This is a short-time breather for the Europeans. But longer-term..., ...

Fri, 06/29/2012 - 02:49 | 2572455 Falkor
Falkor's picture

EFSF transfer to ESM not to have superiority!


What bullsh*t. Its like money transfered from right pocket to left pocket has no superioirty!

Fri, 06/29/2012 - 04:29 | 2572508 falak pema
falak pema's picture

but it makes it more difficult for HF wankers to speculate in market on old sovereigns; at least that is the idea in theory...

Fri, 06/29/2012 - 03:01 | 2572461 Milton Waddams
Milton Waddams's picture

can we all agree that everything is based on a flawed ideology, posited in an effort to protect the status quo?

Fri, 06/29/2012 - 03:19 | 2572473 slewie the pi-rat
slewie the pi-rat's picture

goldilocksCrisisTM is "just right"

nothing much is happening

maybe monday they kick greece out?

here are these people dithering for another year about the EU and financing greece and nothing is getting better fast (or slowly)

dither;  muddle;  CTRL+P; summit;  crisis;  summit;  CTRL+P;  stigma;  subordination;  dither;  plan

Fri, 06/29/2012 - 03:42 | 2572479 chinaguy
chinaguy's picture

DAX & CAC 40 both up over 2.5%

Fri, 06/29/2012 - 05:06 | 2572488 falak pema
falak pema's picture

to all ZH forum members : you now know how decision making in Eurozone works!






For football fans it will be Sunday, for Eurobashing fans it will be every monday to friday! 

What is NOT clear in this plan is whether the EFSF/ESM is limited to banking loans ONLY or does it help SOvereigns this is not clear in the Memo of june 29 : ...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...

If it is mutualised to sovereigns bonds that will be even bigger game changer; as Merkel will then have capitulated on principle, if not on the details of the mechanism of the way ESM will pan out, once its ratified in Germany (and Finland?).

We are heading in the scheme of things to the Euro nations basically naming a FINANCE MINISTER who supervises at uber-council level the budget disclpline and fiscal plans of those countries whose banks/sovereigns benefit from the mutualised mechanism. I don't think this will apply to Greece, just to Spain/Italy and maybe to Portugal/Ireland. 

Fri, 06/29/2012 - 04:08 | 2572491 magpie
magpie's picture

No matter how decrepit and full of fail, the Americans still have recourse to their political institutions...Europeans not so much.

Fri, 06/29/2012 - 04:16 | 2572499 Alejandrito
Alejandrito's picture

Let's see how long it lasts.


Meantime what about UK?

Fri, 06/29/2012 - 04:42 | 2572516 Yen Cross
Yen Cross's picture

 Ok, now all the Asian  "sovereign peripheries" have unloaded their banana dollars. Time to start the washing machine.

Fri, 06/29/2012 - 04:53 | 2572521 Sandmann
Sandmann's picture

How can High Priests be taken seriously when their Deity has been shown to be a plaster idol ?  These people sound more and more like COMECON politicians living on cheap Soviet oil in the 1970s and pretending they could pay back Western loans for consumer goods imports.......anyone recall Edvard Gierek in Poland and the birth of Solidarnosc in Gdansk ?

Fri, 06/29/2012 - 05:23 | 2572531 BBullionaire
BBullionaire's picture

This is bullish for Equities Right?

Fri, 06/29/2012 - 05:35 | 2572536 Seize Mars
Seize Mars's picture

Think of it this way.

The problem here is that, for headlines such as this:



    These guys have lied over and over and over.

    You know for sure they are lying now. Why is all this lying ok? Why keep ANY money at all in Europe in paper assets?

    Fri, 06/29/2012 - 05:59 | 2572543 carefreemanjoe
    carefreemanjoe's picture

    The sane guys in the room aka the Germans have been silenced by the black sheep of the family.

    Fri, 06/29/2012 - 06:01 | 2572544 carefreemanjoe
    carefreemanjoe's picture

    Is'nt this supposed to be already baked in by the "all knowing" market? Futures are behaving as if a black swan type of event has happened in reverse. When politicians will go to any lengths to get re-elected rather than solve the real problem (massive debts with no plan to bring it down and rather paper it over with more debts) then I guess it is bullish for the markets.

    Fri, 06/29/2012 - 06:08 | 2572549 sbenard
    sbenard's picture

    ...and it's very bullish for bubbles! :)

    Fri, 06/29/2012 - 06:31 | 2572558 falak pema
    falak pema's picture

    don't look at what they say look at what they do! And Monti Corralled Merkel and Hollande at Brussels; by getting them to accept Spain/Italy first measures! 

    Hollande wanted 130 B growth programme to be put into place. Its been agreed in principle but now takes second place to Italy/Spain priority play! 

    Merkel wanted as party line "Nein Nein, no wine for you even if you whine." That has gone down the shute as Monti /Rajoy win big in short term. Until we find out they look like Greece!...But we are not there yet! 

    Fri, 06/29/2012 - 06:13 | 2572541 sbenard
    sbenard's picture

    One Ring to rule them all, One Ring to find them,
    One Ring to bring them all and in the darkness bind them

    One regulator to rule them all and in the darkness bind them! And Mordor declares itself “fixed” (for this news cycle)!

    Fri, 06/29/2012 - 06:05 | 2572548 carefreemanjoe
    carefreemanjoe's picture

    Remains to be seen whether Soros will issue a statement that the "Euro is saved" or "Euro is not yet saved"

    Fri, 06/29/2012 - 06:50 | 2572563 Cangoroo
    Cangoroo's picture

    This can turn into a huge problem. Maybe it will cause a constituional crisis within Germany. We will see if Merkel will still be there at the end of the day. This could also mean that the ESM finally fails. Well done Mr. Monti. Information for US readers. She is not the US or French president and is in a coalition which might break down. If the ESM fails today, the Euro might fall off the cliff and I guess it is more likely than ever to fail passing parliament and the constitutional court will most certainly stop it now. Be careful, this will be a volatile day.

    Fri, 06/29/2012 - 06:52 | 2572564 tocointhephrase
    tocointhephrase's picture

    Dollar getting smacked today.

    Fri, 06/29/2012 - 06:55 | 2572566 slackrabbit
    slackrabbit's picture

    Germany is playing for time, hoping the markets crash first.

    Fri, 06/29/2012 - 06:57 | 2572567 rsnoble
    rsnoble's picture

    Perfect timing, look it's friday! Some people still don't know how much they like green fridays. Gets people in a good mood to go blow what money they have left(or don't) over the weekend and keep the nursing home patient alive for awhile longer. True story btw.

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