Germany's Coalition FDP Party Threatens To Kill The EFSF If Liesman's Rumormill Does Not Stop

Tyler Durden's picture

While overnight markets are rocking based on continued speculation coming from some completely uncorroborated and unconfirmed source that Europe has just boldly gone where even Goldman's Abacus has not dared to go before courtesy of the ECB's acceptance of a CDO squared "Enron Special" SPV, Germany has once again made it very clear that not only will there not be any expansion in the EFSF in regular terms, but certainly not in structural ones. As Goldman's Dirk Schumacher makes it very clear, any attempts at imposing on Germany a fait accompli reality that has no bearing in actual reality (especially one that excludes the only relevant decision-maker in Europe) will be met with increasing protests from the entire German ruling class. According to Die Welt, the Free Democratic Party is threatening to vote against overhaul of EFSF if discussions about leveraging fund don’t stop. Goldman elaborates: "FDP and CSU not fond of further increase of EFSF. Leading figures from the FDP and the CSU, the Bavarian branch of the CDU, rejected any thoughts of a further increase of the EFSF (either directly or indirectly through leverage). FDP general secretary Lindner said that "the chancellor should make clear immediately that there is no change to the business model of the EFSF." So, yes, consider that an official denial of the Liesman rumor which as typical, has no confirmation anywhere else.

In other news, Germany did report some good news, but hardly the slam dunk Eurocrats were hoping for with the report of its GfK consumer confidence, which came in unchanged at 5.2%, on expectations it would drop to 5.0%. Again from Goldman:

Stable consumer confidence. GfK consumer confidence remained stable in October recording an unchanged level of 5.2. Among the subcomponents 'business cycle expectations' continued their downward trend (+4.8 after 13.4), while 'income expectations' rebounded strongly (35.1 after 27.6). The 'willingness to buy' index declined (29.7 after 36.9), but still remains high on a historical basis (see chart). While it seems that a growing number of households expect a deterioration of the economic outlook, most think that this will not necessarily affect their individual situation.

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Barb Dwire's picture

And not a peep in the news about Germany's top judge saying EFSF was essentially dead in the water. Crazy times.

Tyler Durden's picture

That was more or less a regurgitation of the German top court's decision from two weeks ago. Nothing explicitly new, just another fresh warning that the German people are nearing their breaking point.

Peter K's picture

Souce link below.

Decision old, but interview given by Chief Justice new. 4 days before vote also odd. You think he might be wanting to convey a message? :)

max2205's picture

I guess the Germans are just figuring out "someone else" runs their country other than it people.... Just like the USA ect

max2205's picture

Everyone knows Liesman's source is none other than dr strangelove aka TIMMMMAGH

crashguru's picture

Even more interesting is the reaction of the German stockmarket to Angela Merkel saying Greece default cant be ruled out.

Merkel: Staatsbankrott Griechenlands nicht mehr auszuschließen

Smithovsky's picture

don't mess viz ze germans, zey vill do it

Dick Darlington's picture

From Telegraph:

Confirmation of the talks, however, sparked outrage in Germany, where opposition politicians threatened to derail the plans by voting against a key amendment to the bail-out fund this Thursday.

The head of Germany's constitutional court also piled on the pressure by warning the government not to circumvent the law "by the back door".

max2205's picture

Hah backdoor them is a favorite tool of the squid

magpie's picture

Prepare for European Solidarity offensive against German politicians starving Greek orphans & widows in 3..2..1

Lady Heather...UNCLE's picture

(Newsreader)..."midst the noisome  distraction of NY city-wide protests, violence and indiscriminate looting, the Dow Jones eked out modest 3.5% gains today. The index got a boost early on,  after an early morning explosion in downtown LA. Airline stocks, which immediately soared on the back of the conflagration, eased back a little after it was shown that  Al Queda was not involved. However this was not enough to dent general economic optimism.  The last 30 minutes saw serious gains in the index as Wall St anticipated a post 18th green address from the President. Hopes are high that the 300 trillion debt ceiling increase will pass congressional muster and Capitol Hill will again "pass this Bill".   Back to you Jenny

Clint Liquor's picture

The talking heads on bubblevision have repeatedly stated the German reluctance to follow the Keynesian model is due to 'that wheel barrel thing'. Referring to the Weimar hyperinflation where it took a wheel barrel full of Marks to buy a loaf of bread. It seems they blame the German memory for the EU crisis.

Bobbyrib's picture

It could also be the fact that the Greeks are living beyond their means and the Germans know that eventually it will affect their standard of living (either through default on the debt leading to higher taxes or money printing).

bgilliam83's picture

Obama and Bernanke are both niggers!  You can print that too

Peter K's picture

...... in a dialectical materialist sort of way :)

caerus's picture

in other stoned


it's weird cuz he's hitting on a blind girl

BigDuke6's picture

dont listen to that shit when you r baked man....

get this, turn the base up and jump around the room.

or get stuck on the couch eating chocolate.. your choice mac

Western's picture

Blind girls need lovin' too.

TruthInSunshine's picture

the German courts are very activist on this, and this could be a sign that the political backlash is incredibly intense, because courts and judges are humans that are not entirely immune to the consequences of massively unpopular actions.

Aside from German Law and the battles in the legislative branch of their government, the German People are just now starting to get pissed off over this whole, massive scam, and that trend will accelerate at the speed of light since it is now dawning upon them that what Merkel seemingly is at least suggesting is possible (the SPV, AND the ESFS, for that matter) will inevitably bleed their national wealth and future dry.

criticaster's picture

German banks were involved in uber derivates (CDO, CDO^2 and the like) - Deutsche Bank im looking at you kid.

Commerzbank is apparently in the shit-pan.

German banks have lent greece money.

Germans have benfitted from exporting their cars, designer kitchens and ultra-efficient kitchen appliances to countries in the eurozone, particularly since they have benefitted from those countries sharing their currency, while - lets be honest - they have a lot of weight in determining fiscal policy.

Many german politicians have been very pro the eurozone (at least when it suited them) and have also used membership to their advantage.

So, when the s*it hits the fan - I say 'suck it up'.

Thank God, the UK is not in the Euro.

(and that has absolutely nothing to do with the war...)

Rynak's picture

Germans have benfitted from exporting their cars, designer kitchens and ultra-efficient kitchen appliances to countries in the eurozone, particularly since they have benefitted from those countries sharing their currency, while - lets be honest - they have a lot of weight in determining fiscal policy.


Germans benefited from the EMU?

NO, germans were impoverished by the EMU, while multinationals and bankers got rich. To all those exporters that profit by ruining the domestic market and purchasing power of the population, GET THE FUCK OUT OF THE COUNTRY, PARASITE SCUM!

Did i mention already that you can go fuck yourselves?

Ghordius's picture

regular Germans "did not benefit from the EMU" because they implemented at the same time the "Initiative 2010" in order to keep wages low and so to keep most of the industrial base at home, instead of shipping it all to China

regular Germans were always skeptical of the EUR and experienced some deflationary pressures because of it (I'm talking about perceptions)

regular Germans are "naturally conservative", i.e. they will stick to the plan (including the EUR) until reality kicks in, hard

regular Germans are incredibly frugal, peace loving, hard working and hell bent on all kind of efficiencies

I'd like to have one EUR for every comment I've read in blogs where people were writing about Germans without having a clue of them

Ghordius's picture

You have to understand that on this blog in the EUR-related articles you'll find a lot of City-Bankers who think that because GrandPa and Pa fought the wars and because they grew up watching Fawlty Towers they practically "own" all comments about Germany

Fact is the Brits were always more commercially "adept" then the Germans, they always excelled in marketing even valueless things

Germans generally have to produce first something they themselves believe in before they even think about selling it

this causes a permanent misreading of the whole situation around the EUR, for the Brits the Germans are at a cracking point (they would) while the Germans have not yet reached boiling temperature (perhaps by November?)

TruthInSunshine's picture



The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution). There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit — which might be politically legitimate and desirable  — then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people.

Chief Justice of the German Constititional Court, 9/27/2011


*Sixteen judges make up the Federal Constitutional Court, Germany's highest and most important judicial body. They are selected to serve twelve-year, non-renewable terms and can only be removed from office for abuse of their position and then only by a motion of the court itself.


09-27 11:47: Germany's Roesler says leveraging EFSF is "off the table"


rubyruffruff's picture

steve liesman ain't no walter the news or make it up......cnbc.....a fine tradition of getting things wrong for 2 decades


BigDuke6's picture

If you flick through at certain intervals this makes interesting viewing of history repeating itself in germany, especially as many of the original production team were executed.


BlackholeDivestment's picture

...well timed post, very ...prophetic. It is ''ironic'' that demonstrative slaughter of ones own (human/Christ) people, as a part of the Satanic ritual claim of dominion, produces end results such as an institution like the U.N. or buildings like the WTC or even an Antichrist New Secular Order. Interesting how even the country of Israel and these Middle East countries are risen through (usual suspect bankers) slaughter. FDR, 32 Degree Masonic Antichrist freak puts an occult pyramid on the Fiat currency and the slaughter of labor continued upto this point, where Germany is to slaughter the PIIGS. Lol. How very strange, and obviously ''twisted''. Lol. Chairsatan and Hitler working together, what a horror show. Those occult boys and their Knights of the Secret Circle (demonic consults) sure know how to ''map'' out the timing of the slaughter to the point within the gate of ''their'' fallen star(s).!

Fips_OnTheSpot's picture

Wont matter. SPD+Greens already signalled "GO" for EFSF expansion -> majority for sure.


Just if the Gov (CDU+CSU+FDP) is not reaching its own majority, the opposition will demand re-elections (wont change a thing, but will surely hammer the DAX)

eigenvalue's picture

+1 The passage of EFSF expansion on Sept 29 is almost a certainty. Just like the Greek austerity package, the EFSF is sure to pass the Bundestag

savagegoose's picture

go germany fucke em, fuck em all to hell.

hambone's picture


Lady Heather...UNCLE's picture

...through the Looking Glass , Alice and we all go

supermaxedout's picture

If a political party wants to to be sure that they will not get re-elected or never get elected in Germany to be in governemt then you just have to do the following:

Issue Euro bonds or take any other measure which would trigger heavy inflation or undermine money stability in a serious way.

The Germans might be stupid in some way but not when it comes to money matters. They know it all have seen it all.

A person in Leipzig which lived up to be a 100 years old has seen at least 5 currency catastrophies. To say a currency completely disappering and be replaced by a new one. This includes hyperinflation, black markets, Two great wars, two tyrannies.

For example the Germans know that cigarettes are a not so bad currency too. There are never to many cigarettes in circulation. Just always a bit more than what is actually needed. Cigarettes used to be a very stable currency in Germany for 4 or five years.

So the Germany as a whole maybe ignorants as far as the stock markets etc is concerned. But in currency matters the whole nation knows what the bell is ringing.



yabs's picture

so how come this has not filtered down tothe computers as the indexes are still roaring ahead

gnomon's picture

Because in the end they know that it will be crammed through whatever the cost, like TARP in 2008 and Obamacare in 2009 here in the U.S. 

The people don't have a say, and if they do, only after the fact, after massive damage has been done.

German people, prepare to be outraged such as you have not been in decades.

Lady Heather...UNCLE's picture

....the maket is going up because Wall St knew the FOMC outcome before it was announced...and they are long. They bought all the way down, and are still buying. They will  march this thing higher until the shorts reluctantly take that stock off their hands at levels higher that which they were acquired. After distributing their stock, they let go short and a small crash happens. Wash, rinse repeat. It's all planned weeks in advance. That's how the game is's a small club, and most of us are aren't in it.

FinalCollapse's picture

How come one clown from CNBC can move the markets?

yabs's picture


but how can this plan of more debt possibly work?

i'm sick of this pig show

Just let it collapse and then we can rebuild

I was enjoying the red ink, I cannot take the torture of more nauseating rallies an d tgalk of green shoots

37FullHedge's picture

Enron now Euron

This denial seals it if history repeats itself.

The things off late is bothering me big time.

bvrulez's picture

Hey Tyler, could you please write simple structured sentences that even germans understand without having to read it twice? :) Thanks for that! Ben

Element's picture

Mish did a nice bit;


The public is going to insist this stops ... and to prevent it, TPTB must scare the shit out of them ... and present TARP as the preferred model ...

So now we will [AGAIN] see just how sick and f*cked these pseudo 'govts' are.

Lady Heather...UNCLE's picture

(newsreader)..."hi Jenny, yes we have an update to our earlier bulletin regarding the LA explosions. Whilst Al Queda has been ruled out ....sorry, what's that Jenny?...oh, because no-one saw an airplane crash...anyway, an ex-CEO of Haliburton has just been on the wire  saying that Iraqi weapons of mass destruction might be involved. There are rumours of more terrorist attacks imminent. The markets are powering north on this news. What's that?...the presidents address to the nation? Well apparently, the sand-trap on the 18th is a real bitch, maybe in half an hour, all depends on his wedge play...back to you Jenny"