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Germany Responds To (Re)newed Spanish Request For Cash: Please Do, But No Backdoor Bailout

Tyler Durden's picture





 

Just as we noted minutes earlier, following the Spanish (re)submission its (still rumored) bank bailout application, the ball was in Germany's court. And sure enough, Germany has just come out with the token response, which was the worst possible outcome for the insolvent country, which may force it pull the unofficial bailout request for the second time. From MarketNews: "The German government on Friday reaffirmed that the European bailout funds were ready to support Spain, if Madrid applies for aid and accepts the conditions tied to it. “The decision is up to Spain. If it makes it, then the European instruments for it are ready,” government spokesman Steffen Seibert said at a regular press conference here. “Then everything will run under the usual procedure: a state makes a request, it will be liable and it accepts the conditions tied to it.” Seibert declined to comment on rumours of a possible Eurogroup teleconference this weekend to consider an aid request from Spain that might be forthcoming."

Translated: the framework is in place. As in, no new bailout instruments are being contemplated.

Notice something here: no use of the word FROB anywhere. What is the FROB? Why the Spanish Fund for Orderly Bank Restructuring or bank bailout fund, which as a reminder, is what was rumored on Wednesday by Reuters and the FT as the loophole that Germany had agreed to fund in order to bypass funding Spain at the sovereign level with debt Spain can't afford to incur. In other words: the reason for the biggest market ramp of 2012... has just been found to be non-existant.

Gotta love Europe.

And with this disappointing German preannouncement to the Spanish pre-rumor of a bailout pre-demand, it is very likely that the entire "Spanish-rescue" weekend script, as explained moments ago, has just been scuttled.

 


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Fri, 06/08/2012 - 07:06 | Link to Comment misterc
misterc's picture

Calm down, stop hyperventilating, another LTRO-Ponz + ECB accepting pie in the sky as colllateral will easily fix Spain for the next six months. 

Fri, 06/08/2012 - 07:41 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Precious metals and Zombie bullets : ON SALE

 

Gotta love Capitalism......I pity those po bastards in Euroland. Double down on socialism you pussies.

 

Thanks for the cheap gold Ben Shalom! Keep it coming.

 

Fri, 06/08/2012 - 07:06 | Link to Comment SeverinSlade
SeverinSlade's picture

Watch US Equities NOT respond to the refutation of said rumor.

Fri, 06/08/2012 - 07:07 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

NEIN.NEIN.NEIN

Fri, 06/08/2012 - 07:33 | Link to Comment fiercekitty
fiercekitty's picture

deutschland über alles.

Fri, 06/08/2012 - 07:52 | Link to Comment trebuchet
trebuchet's picture

Spanish cajones already in the meat grinder, just a matter of deciding what recipe to use

Eu finance minister will be discussing the menu over the weekend

I suspect they will also be discussing whether Italy is for dessert or not

ZH/Tyler neatly pointed out  this could be systemic riskoff menu = cross correlation asset specials..

Fri, 06/08/2012 - 07:08 | Link to Comment Go Tribe
Go Tribe's picture

Germany's going to lose this one. They are simply too systematic in their thinking. "It must happen this way or nothing!" It's why they lost WW2. Blitzkreig worked until it didn't and then the krauts lacked the agility to pivot. Same today on the financial front. That tribe hasn't changed in centuries.

Fri, 06/08/2012 - 07:13 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Wow man, that is just... God damn ridiculous. All anyone does in Europe is pivot. That's the whole game.

You clearly have a cognitive disability.

Fri, 06/08/2012 - 07:19 | Link to Comment Peter K
Peter K's picture

Let's not beat around the bush, Gene. IGNORNCE, plain and simple.

Fri, 06/08/2012 - 07:57 | Link to Comment kaiten
kaiten's picture

Idiot. They lost WW2 because they fought against the whole world. They won all battles when opposite forces were equal in size. Easily.

Fri, 06/08/2012 - 08:36 | Link to Comment short'n nekkid
short'n nekkid's picture

Man, not to nitpick but that is simply NOT the main reason they lost WWII. I don't even know where to begin on that ... but I digress ....

Fri, 06/08/2012 - 07:09 | Link to Comment Rattling Bones
Rattling Bones's picture

Fool me once, shame on, shame on you. Fool me, you can’t get fooled again.

Fri, 06/08/2012 - 07:13 | Link to Comment Poor Grogman
Poor Grogman's picture

I'm confused, somehow this all seems like it has happened before.

Fri, 06/08/2012 - 07:47 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

First the Germans gave us Hitler.....now they're actually funding this failed nightmare......what a bunch of fukkin idiots.

 

Fri, 06/08/2012 - 08:19 | Link to Comment Nussi34
Nussi34's picture

>>>now they're actually funding this failed nightmare

 

which will bring us Hitler 2.0

Fri, 06/08/2012 - 08:30 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Yeah....it's the way that sh!t usually works.

 

Fri, 06/08/2012 - 07:49 | Link to Comment stocktivity
stocktivity's picture

no shit...It's all Bullshit!

Fri, 06/08/2012 - 07:12 | Link to Comment resurger
resurger's picture

"and accepts the conditions tied to it"

All your gold...

Fri, 06/08/2012 - 07:54 | Link to Comment Rubicon
Rubicon's picture

Spanish gold! Yummy!

Fri, 06/08/2012 - 09:13 | Link to Comment Flash007
Flash007's picture

 … a couple of tourist attractions such as Palacio Real, La Concha, Sagrada Familia...

Fri, 06/08/2012 - 09:35 | Link to Comment LongSoupLine
LongSoupLine's picture

and Spanish MILFS...(for Merkel of course)

Fri, 06/08/2012 - 07:13 | Link to Comment Byte Me
Byte Me's picture

Can't wait to trade on all of this goodwill that Germany's creating.

Fri, 06/08/2012 - 07:15 | Link to Comment The Swedish Chef
The Swedish Chef's picture

Don´t worry, Spain has already denied the rumours: http://www.abc.es/20120608/economia/abci-espana-pedira-rescate-este-2012...

 

Silly? You don´t say?

Fri, 06/08/2012 - 07:17 | Link to Comment JackT
JackT's picture

Sneaky Sneaky...now where are those reports from China?

Fri, 06/08/2012 - 07:17 | Link to Comment hugovanderbubble
hugovanderbubble's picture

IBEX 3.890 before dec 2013

Fri, 06/08/2012 - 07:18 | Link to Comment youngman
youngman's picture

Its up...down..back up ...down.....what a trial balloon....watching this on the sidelines is funny...kind of.....but then you get sick as you realize this people are paid very well....

Fri, 06/08/2012 - 08:20 | Link to Comment fiercekitty
fiercekitty's picture

IBEX up as of now...

Fri, 06/08/2012 - 07:26 | Link to Comment elwu
elwu's picture

When will you get it: pacta sund servanta. This is what Germany wants, and she is absolutely right. If Spain doesn't get her act together, like the other Club Med nations, then she can have support by other country's taxpayers, which is a huge grace to start with, right?

Of course this support is attached to strings and rules, laid down in contracts, this contracts are signed also by Spain. It is therefore ridiculous to ask for "new bailout instruments" under these circumstances.

 

Besides, there should never have been any bail-outs or better: there should never have been a common currency in Europe.

Fri, 06/08/2012 - 07:27 | Link to Comment fonzannoon
fonzannoon's picture

why does'nt spain just say yes, take the money and not live up to the terms? When did everyone start getting religious?

Fri, 06/08/2012 - 07:34 | Link to Comment CreativeDestructor
CreativeDestructor's picture

this got to be worth at least a small rally. relief that Godzilla is not destroying Madrid.

Fri, 06/08/2012 - 07:40 | Link to Comment Olympia
Olympia's picture

Global Debt Crisis

The greatest private fraud of human history.
Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?

http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
---------------------------------
By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total ...understand where this plan started just to bring all states at the same end ...understand how this type of plans are established...

Fri, 06/08/2012 - 07:42 | Link to Comment j0nx
j0nx's picture

Where does said bailout money come from? Printed fresh from the press against EU constitution. Why should Spain ask for that and who gave Germany alone the power to control the press? It's obvious that none of these countries really have any assets to back up these so called bailouts and that they are just constructs of the digital press.

Fri, 06/08/2012 - 07:43 | Link to Comment Olympia
Olympia's picture

Germans plunge Europe into a new Medieval Era.

Are they ready to take that risk ?

It was Germany that took huge loans from the American FED. It was Germany that put the markets up to buying ownership shares of the European Central Bank, which has burdened the States with sins. It was this State that lured the rest of the Europeans into a dissolute life so that it can pass the burden of its debts, hence its own sin to them. The current epidemic of debt crisis has begun from Germany, it is just that it kept its disease a secret and at the expense of everybody else, and now that it is in a better shape, it has gone hunting in order to take advantage of the disease it itself had created. The first State to have sickened has gone hunting for the one who was most weak in dealing with the disease, and that was Greece. If Germany had not been over-indebted, the European states would have never been vulnerable to the markets’ attacks.  If Germany had not been over-indebted the European states would have never been forced to mortgage their existence so that Germany’s bosses can get their money.

________________

The Eastern gates of Europe at risk: How Northern Europe shoots itself in the leg

http://eamb-ydrohoos.blogspot.com/2012/05/greece-among-salem-witches.html

Authored by Panagiotis Traianou

Fri, 06/08/2012 - 07:49 | Link to Comment elwu
elwu's picture

This anti German racist conspiracy theories are soooooo boring.

Fri, 06/08/2012 - 08:32 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I'm thinking Olympia is from Greece......am I right about that?

 

Of course you'll say no......that's ok.....we'll play along.

 

Fri, 06/08/2012 - 08:53 | Link to Comment Olympia
Olympia's picture

The Chancellor has been that kind of loveless and sex-starved living creature for decades. Ageing is on her side because it puts her in the same place with the rest of the women, who tend towards their biological death. This creature is aware of the fact that she only exists because powerful people allow it. Ever since she has chosen to become a Stasi mole she is willing to do anything she is asked so that her life continues to have meaning. This so called woman has wanted to hurt the Greece of Aphrodite.

Schäuble is her close associate and second in command of the German leadership. He is a crippled man who obviously hates humans. He is a crippled misanthropist. Why are we being so cruel to a crippled man? Why don’t we respect and fear what it means to be a crippled, since it concerns all of us equally? The answer is simple. A handicap is the most tragic thing that can happen to an ordinary person. It is the ultimate unfortunate life event. On the contrary, it is a fortunate event for Schäuble. He should have been dead and he is lucky to be crippled. He should be melting among worms but instead he still wanders about among us, even in a wheelchair. A fellow man has paid the price so that Schäuble ends up dead but he is still alive, even if handicapped. Why did a fellow man - and fellow countryman of his - want him dead? It was because Schäuble has always been a brute. He has always been a corrupt criminal who started his career by engineering the destruction of Eastern-Germans. Because he was corrupt he lost leadership of the Christian-Democratic party and because of his crimes he is now crippled. He is a corrupt criminal who got crippled because of his choices; a corrupt brute I could hate more if he were healthy; a corrupt brute who hates us more because he is crippled. How can we compare such an inhuman crippled brute with a fellow man who has been crippled because of his bad luck?

http://eamb-ydrohoos.blogspot.nl/2012/05/greece-among-salem-witches.html

Vestervele is third in command of the German leadership and he is a screaming queen, certain to be completely controlled and to need power so that his life continues to have meaning. He is among the most famous regulars in Berlin gay bars, to say the least. It is certain that many of the DVDs with his sexual stunts have a special place on some selves in the Secret Service. We really relished the moment when he attacked the President of Bellorusia and the latter made him eat his words when he answered that: “It is better to be a fascist than a faggot.” Berlin was left fully exposed.

Resler is a janissary who has emerged from the era of slave markets and the Ottoman Middle Ages. He is in love with Reich and Aryan race and betrayed by his own skin. He is a man who hates his existence because it exposes him. According to the people who can speak German well, he is one of the most competent users of the language, which proves he is insecure. It proves that he has a long-lasting desire to prove he is German, something that unfortunately cannot be proved based on his appearance. He can behave as a happy, cool Aryan only when he speaks on the radio. He can feel like an Aryan when he tortures Greece. The irony is that his name is Philip. He has Vietnamese origins and German citizenship, he poses as Aryan and still he has a first name that he cannot possibly comprehend what it represents.

Fri, 06/08/2012 - 09:46 | Link to Comment shovelhead
shovelhead's picture

If this is an example of the way Greeks think it's no small wonder that they are well and truly screwed.

They'll always be broke and blaming someone else for it.

Cheap bastards won't even give out Spiderman towels.

But cheer up Greece, because if misery loves company, then you're going to have lots of it very soon.

Greece has won the gold in the debt Olympics but the rest of the pack is right behind you.

Fri, 06/08/2012 - 07:47 | Link to Comment sudzee
sudzee's picture

Borrowed from the future. Now the future has arrived and all one can find are the sins of the past. Everything ventured but nothing gained.

Fri, 06/08/2012 - 07:54 | Link to Comment Catullus
Catullus's picture

These two articles titles are really funny when read via RSS feeds.

Fri, 06/08/2012 - 07:54 | Link to Comment Bobbyrib
Bobbyrib's picture

I pity Angela Merkel. If she bails out the PIIGS she will lose her position as Chancellor of Germany and if she doesn't bail them, she will most likely lose her position anyway as German's export driven economy starts falling apart. She is in a no win situation.

Granted she never should have started the bailouts, but it was only to keep her country's economy going.

Fri, 06/08/2012 - 08:34 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Gosh if that's the case.....maybe she should just do the right thing.

 

 

Nawwww..........that's just crazy talk there.

 

Fri, 06/08/2012 - 08:03 | Link to Comment DutchDude
DutchDude's picture

No worries; starting this saturday; Europe is fixed due to the European Soccer Tournament in Poland/Ukrain.

Nobody gives a rats bottom about the EZ crisis the next month so there will probably be a quick meeting, a smoke screen, and some signatures. When the smoke fades away, it appears the EZ leaders happen to agree on a fiscal union. Then, when the socces hangover clears up, people will be upset... very upset...

Let the games begin :D

Fri, 06/08/2012 - 08:07 | Link to Comment trebuchet
trebuchet's picture

Good times :D

Fri, 06/08/2012 - 08:15 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Bread and circuses baby!

 

Fri, 06/08/2012 - 08:22 | Link to Comment sumo
sumo's picture

The EU leadership will man up and do what they secretly acknowledge must be done: print Spiderman towels in vast quantities.

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