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Germany Shoots Down European Union "Envisagings" Of Bureaucrat Utopia

Tyler Durden's picture




 

And to think it was not even 2 hours ago that a regurgitated and largely impotent news story hit the WSJ (following up on an identical Reuters story yesterday, as ZH noted), sending the EURUSD higher by 50 pips. As we said, expect Germany to come out with a prompt refutation in minutes. The minutes in question were 90. The official denial to Gollum's lie panderings has arrived courtesy of Market News: "Government spokesman Steffen Seibert said at a regular press conference
here that the German rejection of the idea of any direct
recapitalisation of banks by the ESM "is well known." Summary: B+ for effort, C for execution, C- for market reaction halflife, and F for content, as usual.

The German government on Wednesday reaffirmed its opposition to allowing European Stability Mechanism, Europe's permanent bailout fund, to directly lend to troubled banks in the Eurozone.

Government spokesman Steffen Seibert said at a regular press conference here that the German rejection of the idea of any direct recapitalisation of banks by the ESM "is well known."

The treaty creating the ESM explicitly states that the fund can only lend to governments in return for promises of reforms. The German government has stressed on numerous occasions that it insists that this passage of the treaty is respected. The treaty has yet to be ratified by most governments including Germany.

The European Commission, however, argued in a report released earlier today that having the ESM bailing out troubled banks could help break the unhealthy mutual dependency of the currency bloc's banks and governments.
 
"To sever the link between banks and the sovereigns, direct recapitalisation by the ESM might be envisaged," the Commission said in its analysis.

The highly indebted Spanish government currently faces problems in rescuing its troubled banking sector.

German finance minister Wolfgang Schaeuble will meet his Spanish colleague Luis de Guindos in Berlin today, German ministry spokesman Martin Kotthaus said. There will be no press statement after the meeting because the talks will be "informal," he explained.

Seibert said the German government still had confidence in the Spanish government's reform course.

Oh well, time to regurgitate some more faceless rumors. Hey: has anyone heard the one about China bailing out Europe, and doing a massive stimulus?

 

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Wed, 05/30/2012 - 08:43 | 2474893 GMadScientist
GMadScientist's picture

Envisigothings.

Wed, 05/30/2012 - 08:46 | 2474897 Cult_of_Reason
Cult_of_Reason's picture

"Everyone will clean its own scheiße"

- Angela Merkel, 2008

Wed, 05/30/2012 - 08:47 | 2474907 Olympia
Olympia's picture

 

Schäuble is her (A. Merkel's) 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.

 

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

 

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?

 

Wed, 05/30/2012 - 09:10 | 2475037 Ghordius
Ghordius's picture

Olympia, last time I spent several comments on the defence of Syriza, now am I supposed to defend Schäuble? He is, IMHO, one of the few politicians with a couple of brain cells on this planet.

And I don't detect any change in his political stance before/after this lunatic attacked and crippled him.

Wed, 05/30/2012 - 09:35 | 2475156 smb12321
smb12321's picture

Hey, I like Alexis Tsipras since he is one of the more honest politicians.  He's a thug and has advocated violence but he's never been shy about his real goal.   Other pols yap about being for the people or how much they want to make things good but Tsipras is refreshingly blunt.  He wants absolute power so that he can mold society to his vision.

Wed, 05/30/2012 - 09:22 | 2475089 Byte Me
Byte Me's picture

No need to overanalyze it. He's just the embodiment of Dr Strangelove is all

...and about as warped...

Wed, 05/30/2012 - 09:26 | 2475115 Cast Iron Skillet
Cast Iron Skillet's picture

"Why did a fellow man - and fellow countryman of his - want him dead?"

because the "fellow man" was a fruitcake.

I mean, why did a "fellow countryman of his" want Kennedy or Reagan or Lincoln dead?

Wed, 05/30/2012 - 10:35 | 2475485 GhostfaceCracka
GhostfaceCracka's picture

There's nothing wrong with Schäuble, he's one of the few major politicians in the industrial world who understands something of economics and finance. You sound like a deadbeat Greek trying to vilify your creditors because you can't keep your own house in order. Are you a Greek, Olympia?

Wed, 05/30/2012 - 08:54 | 2474945 Cult_of_Reason
Cult_of_Reason's picture

Meaning everyone in Europe will bail out their own banking systems without Germany.

Wed, 05/30/2012 - 12:20 | 2476008 Nussi34
Nussi34's picture

Great! Lots of "cleaning scheiße" in the PIFGIBS will create a lot of jobs!

Wed, 05/30/2012 - 08:44 | 2474899 bdc63
bdc63's picture

wow ... the half life on these rumors is now down to 2 hours ... we must be getting close now ...

Wed, 05/30/2012 - 08:48 | 2474917 smb12321
smb12321's picture

The window continues to contract.  At this rate Spain's banks can collapsed in minutes, the EU can window dres 3 hours later before it fails and Spain can leave the EU by the end of the day.

Wed, 05/30/2012 - 09:36 | 2475158 ThirdWorldDude
ThirdWorldDude's picture

"Timewave Zero" promises that it will get more insane with every new day until we reach event horizon, or the Omega point, by the end of the year.

Expect the West to announce a "humanitarian" intervention in Syria by the end of the week...

http://www.youtube.com/watch?v=AU-6o4H6HJw

Wed, 05/30/2012 - 08:46 | 2474902 smb12321
smb12321's picture

What's pathetic is that absurd rumors and possible actions "somewhere at sometime by somebody for some thing" is driving markets.

Wed, 05/30/2012 - 08:54 | 2474946 LeBalance
LeBalance's picture

hopium in the status quo is all that holds the flock of Black Swans back.

Wed, 05/30/2012 - 09:03 | 2474989 Zero Govt
Zero Govt's picture

yes please be ready to feign 'surprise' when the Black Swans arrive

...you wouldn't want to look smarter than the EU politburo chiefs

...it'll probably get you jailed

Wed, 05/30/2012 - 09:39 | 2475173 smb12321
smb12321's picture

Unlike most ZH posters I realize that extreme actions (dollar/euro collapse, bonds shoot up, gold skyrockets, etc) are rare and that the powers that wannabe are geniuses for prolonging the status quo.  I watch the edifice slowly crumble and wonder what folks will say when it's all over but the shouting.  Probably blame it on not enough spending by the State.

Wed, 05/30/2012 - 09:18 | 2475066 brooklynlou
brooklynlou's picture

What it means is that there is a LUDICROUS amount of money bet against this goat rodeo where even the HINT of it not blowing apart sends the market skyward in a short covering frenzy.

Be patient. Wait for it, wait ...

Wed, 05/30/2012 - 08:47 | 2474913 the not so migh...
the not so mighty maximiza's picture

They are going to need anouther rumor..STAT

Wed, 05/30/2012 - 08:50 | 2474923 BandGap
BandGap's picture

Start a rumor on a contradictory stance from an agreement that has yet to be signed off by all parties, including the country that opposes the original idea.

Truth be told, I been at corporate meetings like this. We usually agree that those backing these wonderful "ideas" are complete assholes. Same here.

Wed, 05/30/2012 - 08:59 | 2474937 Zero Govt
Zero Govt's picture

"..Bureaucrat Utopia.."

Ah, you've been to Brussels?

no worthless toady ever under-paid, no matter how dumb the socialist there's always jobs for the boys here and a EC desk to hand out 2,400 directives a decade on how the private sector should follow your pontifcating dribble

 

Wed, 05/30/2012 - 08:54 | 2474947 GMadScientist
GMadScientist's picture

I'm going to go with "Germany opposes it so it has a good chance of happening"...that seems to be the pattern of late (each time the BuBa comes face to face with the abyss).

Wed, 05/30/2012 - 09:04 | 2475002 lolmao500
lolmao500's picture

Yep. Germany talks tough but every time they vote to screw the German taxpayers. EVERY SINGLE TIME.

Wed, 05/30/2012 - 08:56 | 2474956 LongSoupLine
LongSoupLine's picture

Yet another attempt for an economic recovery via rumor and lies.

Yep...same path to the cliff.

Wed, 05/30/2012 - 08:59 | 2474971 GolfHatesMe
GolfHatesMe's picture

This reminds me of George Jetson on the treadmill.  Jane stop this crazy thing!  And he keeps getting run over and over.  Paging Dr. Banzai.  Graphic needed.

Wed, 05/30/2012 - 09:00 | 2474972 Peter Pan
Peter Pan's picture

Tyler do yourself and us a favour by not publishing crap news put out by the EU for at least an hour by which time the ECB announcement will put things in order. Otherwise you are robbing me of time to read the other truly good stuff on Zero Hedge.

Wed, 05/30/2012 - 09:07 | 2475016 GMadScientist
GMadScientist's picture

"Ever since I took the Evelyn Woodhead Sped Riddin' course, my riddin' has im-PROVVed one hunert percent and "comprenshun" has increased "won-der-full-lee". I recommend the Evelyn Woodhead Sped Riddin' course to all mah friends out there, and you tell 'em you heard it here first on Roller Derby"

Wed, 05/30/2012 - 09:03 | 2474987 lolmao500
lolmao500's picture

I bet they won't say the same once the german banks go kaboom because of their exposure and over leverage.

Wed, 05/30/2012 - 09:04 | 2474994 CreativeDestructor
CreativeDestructor's picture

Chuck Norris was spotted in Madrid, Rome, Frankfurt, Brussels and Athens... all at the same time... can't be coinsidence,,,

I think he was withdrawing cash from ATMs

Wed, 05/30/2012 - 09:09 | 2475029 GMadScientist
GMadScientist's picture

ATMs willingly give cash to Chuck Norris and are too ashamed to enforce a daily limit on him.

 

Wed, 05/30/2012 - 09:25 | 2475082 slackrabbit
slackrabbit's picture

No Chuck Norris is soo tough, when there is a bank run,  the ATMs come to him ;-)

 

http://3.bp.blogspot.com/-d9CKEYsBT_k/TxodQ26hOGI/AAAAAAAA47A/NjnjdZh3hg...

 

Acutally thats it! The Eu issue a Chuck dollar - it can withstand anything!

Banking problem solved.

 

PS I expect to be paid in gold for this high value consultantion; no bank notes or government bonds please

Wed, 05/30/2012 - 09:10 | 2475039 Quinvarius
Quinvarius's picture

I have zero doubt the banking system in Europe is currently borrowing trillions from the Fed.  Those banks would already be dying en masse if that were not the case.  Same with US banks, to include JPM.  The crony loan system is at work.  That is why you hear bearish talk from the top.  They know how much money they are already flooding into the system.  They wouldn't be saying that they are going to do nothing if they weren't afraid of people finding out what is really going on.  Their statements are always lies to cover their tracks.

Wed, 05/30/2012 - 10:05 | 2475307 Vince Clortho
Vince Clortho's picture

"... The crony loan system is at work."

By Crony Loan System, are you referring to a group of inbred-parasite-sociopathic-scum Central Bankers?    If I did not correctly infer the essence of that phrase, kindly disregard the first sentence of my reply.  

Wed, 05/30/2012 - 09:27 | 2475121 chunkylover42
chunkylover42's picture

China, whose GDP per capita is one tenth that of Europe, is going to bail out the EZ?  Sure they will.  Sure.  Sounds good.

Wed, 05/30/2012 - 09:31 | 2475137 adr
adr's picture

The world is run on lies, deceit, and bullshit.

Those are the only skills of a politician, banker, or multinational CEO. Because they actually have no skills of value, they must steal anything of value from true productive individuals. In the pursuit of unearned wealth they have created a world where only the most deceitful, the greatest liar, can become successful.

Until wealth is returned to those who are willing to work for it, we will be stuck in this nightmarish quagmire. We are in an economic Vietnam war. The soldiers know what to do but the leaders are too stupid to figure it out. Like a soldier shoting his own CO in the head because he was going to get the entire unit killed, the people need to remove the leaders only looking out for their own sorry asses. If not we're all dead.

Wed, 05/30/2012 - 09:32 | 2475141 Dr. Kananga
Dr. Kananga's picture

"Envisagings"... Do we mean 'hallucinations?'

Wed, 05/30/2012 - 09:35 | 2475155 Cosimo de Medici
Cosimo de Medici's picture

It doesn't seem to be too much of a jump to conclude that a Germany who will not acquiesce to an ESF bank bailout also will not agree to Eurobonds.  That doesn't leave much for the likes of Spain to recapitalize its banks nor (later) Italy to fund its sovereign deficits.

The EUR/USD's continuing tumble, despite record shorts, says the EU is up against it.  There are no ideas because there are no outs, and the number of fools who buy the rumor is decreasing by the day.

Tylers can probably take some time off by just taking all the old articles about Greece and replacing "Greece" with "Spain".  Actually, it is probably more correct to replace "Ireland" with "Spain", and later Tylers can replace "Greece" with "Italy", since the first two are bank problems and the second sovereign problems first and foremost.  Of course, in both cases one leads to the other.

Oh my.

Wed, 05/30/2012 - 09:57 | 2475262 Vince Clortho
Vince Clortho's picture

Lower the market to generate a batch of shorts.

Release a rumor to validate a spectacular short-covering rally.

Blow profits on coke and hookers.

Repeat.

Wed, 05/30/2012 - 09:59 | 2475274 ghostzapper
ghostzapper's picture

"Why would they tell me

to please those

that laugh in my face

with all of the reasons

they've taught

fall over themselves

to give way"

 

Prostitute

W. Axl Rose

Wed, 05/30/2012 - 10:57 | 2475598 Nobody For President
Nobody For President's picture

I find it interesting that the recent two or three investment banks that have done fancy reports on Greece 'scenarios' of what the options are if this party wins, or that one, and a government is formed or not blah blah blah leaves out, as in not mentioned or on the flow chart anywhere, the possibility of a military coup if the election blows up or goes nowhere. It is not like there is no recent history of this happening in Greece, yet it is never considered by all the smart guys that get paid so much to think about this stuff.

So if a coup does happen, it will be a 'black swan' event, which is bs, because it is certainly a possibililty, especially if the situation winds up with no government again, as per the last, recent election, and things get even more chaotic in Greece.

There - you read it in ZH first....

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