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EuroTARP Cometh: Germany's Schauble To Pull A "Paulson" Will Force Banks To Take Bailout Funds, Handelsblatt Says

Tyler Durden's picture




 

In yet another confirmation of just who is driving policy in Europe, Handelsblatt has broken news that 3 years after Hank Paulson "forced" US banks to take cash, Germany will follow suit next, and "bailout" the German banking sector by stuffing it to the gills with cash soon to be made even more worthless courtesy of persistent and relentless devaluation as it is used for no productive purposes but merely stave off the inevitable collapse of a financial system so broken it now requires not monthly but weekly bailouts. From the German publication: "the German bank rescue fund Soffin will force ailing banks to recapitalize next year. That's at least out of the draft bill, to be released by the Handelsblatt (Thursday edition), and the Cabinet is to decide the next week. Finance Minister Wolfgang Schäuble (CDU) is following the U.S. example: The US distressed banks were temporarily distressed during the 2008 financial crisis. The banks have since there is significantly more stable than the euro-zone in which the institutions were saved only at their own request the European Banking Eba by the banks of the euro-zone by mid-2012 its core capital to nine percent increase. Institutions that make this not your own to get guarantees from the Soffin." Simply said, because it worked (courtesy of an additional $1.6 trillion in excess reserves used fungibly by banks to plug capitalization holes) in the US, the forced bailout will work in Germany, where unlike the US, the top banks account for about 200% of German GDP. In other words, Germany is about to proceed with an implicit nationalization of its banking sector. Which means that while we thought yesterday that the German AAA-rating is the safest of all in the Eurozone, following this development we will certainly reevaluate.

More from Handelsblatt, Google translated:

Creates a German bank recapitalization is not your own, they can apply for help from Soffin. The Institute is unreasonable, the German banking supervision BaFin force it to accept government money. Normally, the state then receives shares in accordance with the Institute. It remains possible, however, continue to provide assistance to a silent partnership - but then must agree to the Bundestag, says the bill, with the will of the rescue fund Soffin are now revived quickly. After the acute financial crisis it had been closed in late 2010. He should be able to redeploy by the end of 2012 up to € 400 billion of loans and guarantees over €70 billion.

 

A Cabinet decision creates even before the adoption of the federal law assurance that no systemically important bank to fail in Germany to the new capital requirements. This, it says coalition circles, confidence is expected by the markets to the eba-stress test banks to strengthen significantly affected.

 

As a candidate for aid is already partly nationalized Commerzbank. Their boss Martin Blessing previously insisted to ask again in no case to state aids to want. If the German Financial Supervisory Authority BaFin, however, the view would be that Commerzbank's capital increase alone could not establish that the state would give the money by force.

One wonders if Schauble, who is now the next "Honk" Paulson, has also advised German hedge funds to trade as is appropriate, to a broad banking sector nationalization, in keeping with the US SecTres's behavior before the US bailouts began in earnest.

We expect the answer is a resounding yes.

And for those wondering why Germany needs a preemptive TARP, and why its banks are in deep doodoo, here is a reminder:

 

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Wed, 12/07/2011 - 12:46 | 1955106 ratso
ratso's picture

Alles ist in ordnung.

It removes uncertainty from the system and assures liquidity for the banks.

Wed, 12/07/2011 - 12:50 | 1955138 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Three years later, still no one has any idea what they are doing.

Wed, 12/07/2011 - 12:54 | 1955155 American Dissident
American Dissident's picture

THEY know exactly what they are doing- Behold "The Forth Reich"

Wed, 12/07/2011 - 13:20 | 1955172 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

If the plan is to lay waste to the economic landscape, then they are geniuses.

Look people,

It already happened.  It's over.  Last week ALL Central Banks tied their overnight windows, their emergencie lending facilities, at one interest rate:  the Federal Reserve's.  This means that all investments in the Fiat Ponzi are equal.  This means there is now a One World Currencie.

Now Germany is saying they are about to jump ship.  Who knows if they have a life boat or not?  That doesn't matter.  What matters is that it has come to this- with sharks circling the Euro Zone, Germany, the engine of Europe, is leaving.  They are going to load up on Euros, and jump.

This will start a panic.  The whole Zone will follow suite, all hoping for a bailout.  You will see France, Italy, and all others bailout their banks now.  This will coincide with the ratings agencie cuts that we knew were comeing.  This will create huge deflation, as the agencie cuts will show that all these States are bankrupt, at the same time that the States create European hyperinflation.  This is what Keiser called "Blobflation".  It is called biflation from Caviat here.  You can call it what you want, give it a cute name, but it is the end of the Euro Zone.

And all the while, the Federal Reserve continues to spend hand over fist and do exactly what Europe is about to do.  Ratings cut after bailout, repeat, repeat, and anyone thinks there is such a trade as EUR/USD?  The DXY is the cornerstone of the Fiat Ponzi, and it has been bled at the alter of the Fed by Ben S. Bernanke.  The Fiat Ponzi is finished.  Everyone has now jumped ship.

Wed, 12/07/2011 - 13:24 | 1955305 Oh regional Indian
Oh regional Indian's picture

I think Significant fighting operation will break out before that unfolds, nein LH? So many social levers yet to pull. 

German's have one of the most socialist set-ups anywhere in the world. Perhaps Germany's net creditor status is a huge hoax? 

Hypo-thecated? ;-)

ORI

/the-plan/

Wed, 12/07/2011 - 13:28 | 1955332 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And while the economie implodes, War Pigs keep their fingers on the triggers.  The US Military industrial complex pushed CIA led operations in Egypt, Libya, Syria, and are trying to now spur Mother Russia into infighting.  Israel tries to push Iran into a corner, and the US and UK operate either by pretend ignorance (dropping a drone in Iran's lap) or they got caught spying, again.

The War Pigs are watched intently by Central Bank heads, as they know their collapse is coming.  War is the only thing that could "save" the economy, Keynesians say, "Look at WWII as an example!  It solved the great depression!"

The culture of the world has gotten sucked into the Hegllian Dialectic of the "Two Sides" but these two sides come from one coin.  If the whole coin is seen, then there are three choices.  One side, the other side, or the whole coin.  This is why Hegel was wrong, and why modern political theory is also wrong.  There are more than just two choices in life, in fact there is a fourth choice.

What if the coin does not exist?  What if the coin does not make a difference?  What if we could live in peace?  Will we give it a chance?

Wed, 12/07/2011 - 13:37 | 1955368 boom goes the d...
boom goes the dynamite's picture

Generals gathered in their masses
Just like witches at black masses
Evil minds that plot destruction
Sorcerers of death's construction
In the fields the bodies burning
As the war machine keeps turning

Ozzie

Wed, 12/07/2011 - 13:40 | 1955373 The Big Ching-aso
The Big Ching-aso's picture

 

 

"Panzers in the streets!   Howitzers on rooftops!   Mausers at the gates!     Cave in to our demands or we will allow you to destroy yourselves!"

Otto Paulsonlanger, Minister of Orwellian Tactics and Propaganda

Wed, 12/07/2011 - 13:42 | 1955384 Oh regional Indian
Oh regional Indian's picture

What if the coin stood on it's edge?

ORI

Wed, 12/07/2011 - 14:01 | 1955447 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What if?

Wed, 12/07/2011 - 14:19 | 1955497 TheFourthStooge-ing
TheFourthStooge-ing's picture

If the coin stood on edge, you would see a layer of copper sandwiched between outer layers of cupronickel, recognize it as a worthless slug, and reject it.

 

Wed, 12/07/2011 - 14:31 | 1955539 Badabing
Badabing's picture

then Dick York will read our minds "The Twilight Zone"

Wed, 12/07/2011 - 17:19 | 1956287 earleflorida
earleflorida's picture

ah yes,... the proverbial 3rd side?

Wed, 12/07/2011 - 13:43 | 1955391 Caviar Emptor
Caviar Emptor's picture

Germany has a trade surplus on a continent where that is a distinction. And in a world where that is increasingly difficult. Beyond that it's the same story as other large developed over-leveraged nations, with some unique problems as well. 

Wed, 12/07/2011 - 13:29 | 1955327 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We are waiting for Bernanke's "Oops." moment by the way.

Wed, 12/07/2011 - 13:36 | 1955355 Captain Kink
Captain Kink's picture

...Germany, the engine of Europe, is leaving.  They are going to load up on Euros, and jump.

 

I am confused, why would Germany want Euros under this scenario? to bail out banks with euro denominated liabilities?  Ultimately they would convert to DM, no?

Wed, 12/07/2011 - 13:36 | 1955367 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Because when the SHTF all Banks are going to whine about how solvent they are to the IMF when the IMF comes to save the day.

It will be the same for China.  When SHTF, China will say, "We deserve some credit (literally) for all of this debt."

The IMF/World Bank will look at balance sheets and decide who has the best rating, who gets what funding, etc. 

Wed, 12/07/2011 - 13:37 | 1955370 Caviar Emptor
Caviar Emptor's picture

Tip o the hat, M Lennon. Yes, deflation is baked into a huge unemployment, huge overcapacity, poor demographic situation that's been brewing for decades. And the Fed/ECB and banksters still want to reflate, targeting inflation because without it their paper is worthless. I call it biflation not to comment on it's sexual orientation, but to illustrate the two competing forces, the two worlds within our world that are struggling for control. And to show how those two competing forces simply can't co-exist

Wed, 12/07/2011 - 13:41 | 1955383 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They will blow each other up into nothingness. 

Eat your heart out, Heideggerians

Wed, 12/07/2011 - 14:03 | 1955453 The Big Ching-aso
The Big Ching-aso's picture

 

 

Europe copying the US monetary model is like copying the Larry Summers dieting model to lose weight.

Wed, 12/07/2011 - 13:33 | 1955351 sangell
sangell's picture

Might be more of a 'Gustav Line" to protect Germany from attack via Italy!

Wed, 12/07/2011 - 12:57 | 1955179 J 457
J 457's picture

Would this not be bullish for US markets?  And especially US banks....At least short-term until the bill comes due.

Wed, 12/07/2011 - 13:13 | 1955256 slaughterer
slaughterer's picture

Just publish these articles in the German original, we can all understand.  We are, after all, all Germans now.

Wed, 12/07/2011 - 15:56 | 1955828 Ghordius
Ghordius's picture

Nationalization, at least as threat, from 2012 on, too keep them in line.
So the German banking system becomes political - more then the French, about as the Italian in the old days...

Wrote so months ago - this is the locally preferred solution. Not new at all, only scandalous for Anglophone ears.

It is seen here (from experience) as safer as just opening the spigots á la Ben&Timmy.

I agree, It removes uncertainty from the system and assures liquidity for the banks. And they might get political scrutiny.

Wed, 12/07/2011 - 12:46 | 1955108 gojam
gojam's picture

The UK did it 3 years ago too.

It stops the weak in the banking herd from being identified (but tars all)

Yet another signal that Big Preparationsare being made..............

Wed, 12/07/2011 - 12:48 | 1955129 GeneMarchbanks
GeneMarchbanks's picture

Germany will guarantee war in Europe, forget Iran.

Wed, 12/07/2011 - 12:53 | 1955154 TheSilverJournal
TheSilverJournal's picture

Do you think your country is any better? When fiat collapses, politicians will be pounding the pavement for a scapegoat..and war is the ultimate scapegoat.

Wed, 12/07/2011 - 13:02 | 1955197 LawsofPhysics
LawsofPhysics's picture

The WORLD is no better shape thanks to globalization.  You act as is infinite growth has ever been a real option.  No one, and I mean NO ONE is addressing the real structural problems OR prosecuting the fraud and upholding the rule of law.  Where have all the adults gone?

Wed, 12/07/2011 - 13:15 | 1955262 hedgeless_horseman
hedgeless_horseman's picture

 

 

The US distressed banks were temporarily distressed during the 2008 financial crisis.

Hey, Angela, this American hopium is some goood shit.  Try some?

Wed, 12/07/2011 - 13:46 | 1955397 Caviar Emptor
Caviar Emptor's picture

The adults resigned in 1980. Hate to say it. All seduced by the promise of something for nothing

Wed, 12/07/2011 - 13:04 | 1955216 GeneMarchbanks
GeneMarchbanks's picture

'Do you think your country is any better?'

What does that have to do with anything?

'When fiat collapses, politicians will be pounding the pavement for a scapegoat..and war is the ultimate scapegoat.'

Again, not about fiat. It's about selling off Europe to the PDs...

 

Wed, 12/07/2011 - 13:19 | 1955285 LawsofPhysics
LawsofPhysics's picture

"Again, not about fiat. It's about selling off Europe to the PDs..."

 

There it is, the real frontrunning trade right now is to bet on the primary dealers, the war machine, and accumulate physical assets of real value, including PMs. 

Wed, 12/07/2011 - 13:16 | 1955272 Motorhead
Motorhead's picture

The Anglos will guarantee war more than likely.

Wed, 12/07/2011 - 12:52 | 1955148 Hmm...
Hmm...'s picture

almost all big banks ARE weak.

there are relative stronger and relative weaker banks, but among the big players they are all weak.

even if there were a big bank, they are tarred anyway due to opaque financial transactions.  You can look as pristine as the wind, but that's all for naught if you'fe dealt with too many insolvent counterparties.

I'm not sure I can name a big banking player that has rock solid balance sheet AND doesn't have hordes of ties to failed TBTF institutions.  can you?  because I'm happy to learn of one. 

Wed, 12/07/2011 - 13:05 | 1955193 gojam
gojam's picture

"almost all big banks ARE weak."

I can't argue with that but no bank will openly ask for it because they'll be targeted and if it were in anyway selective the same would happen.

In the UK 3 years ago every bank made "sincere" complaints that they didn't need it (all took it)

Wed, 12/07/2011 - 13:15 | 1955269 Scalaris
Scalaris's picture

"..but no bank will openly ask for it because they'll be targeted and if it wre in anyway selective the same would happen."

 

I'm guessing that some are feeling quite thankful for those constantly revolving doors, which let bank advisors/faux politicians do their "thing" then.

Wed, 12/07/2011 - 18:51 | 1956603 smiler03
smiler03's picture

"In the UK 3 years ago every bank made "sincere" complaints that they didn't need it (all took it)"

 I might be wrong but not all banks DID take it. From http://en.wikipedia.org/wiki/2008_United_Kingdom_bank_rescue_package

"However, of these, Abbey, Barclays, Clydesdale, HSBC, Nationwide, and Standard Chartered have chosen not to receive any government money,[12] leaving Lloyds and RBS as the only major recipients."


 


 

Wed, 12/07/2011 - 12:45 | 1955116 AngryGerman
AngryGerman's picture

Yeaaaaahhh, state money for my bonus!

Wed, 12/07/2011 - 13:17 | 1955277 Motorhead
Motorhead's picture

You can't be too angry, AngryGerman....nice little pic there...lots of "Holz vor der Hütte".

Wed, 12/07/2011 - 12:45 | 1955117 bigdumbnugly
bigdumbnugly's picture

ja.  you shall take zee bailout und like it!

der bitchez.

Wed, 12/07/2011 - 12:49 | 1955124 DormRoom
DormRoom's picture

shadow banking hours away from collapse, just like under Paulson. 

 

The debt spice must flow.

Wed, 12/07/2011 - 12:54 | 1955156 GeneMarchbanks
GeneMarchbanks's picture

EUtopia cometh. Fucking Geithner, I blame Obama for this shit. Good luck implementing this in all of Europe.

Athens riot can was small potatoes.

Wed, 12/07/2011 - 13:11 | 1955248 Spastica Rex
Spastica Rex's picture

When do we get real riots in the US? Occupy is lame.

Wed, 12/07/2011 - 13:15 | 1955264 GeneMarchbanks
GeneMarchbanks's picture

Ha, not soon it seems. America isn't even close to simmering and it has been four years now...

Wed, 12/07/2011 - 16:53 | 1956112 Totentänzerlied
Totentänzerlied's picture

Come now, the Marxist-Socialist revolution isn't gonna fight itself, it's fun to watch the serfs repeat their ancestors' mistakes in perpetuity.

Wed, 12/07/2011 - 12:47 | 1955125 SheepDog-One
SheepDog-One's picture

Next year? Looks like that Santa Claus rally is fading.

Wed, 12/07/2011 - 12:48 | 1955128 LawsofPhysics
LawsofPhysics's picture

More "feet to the fire" moves by the one world government mouth pieces.  "Accept the serfdom or else!"

Wed, 12/07/2011 - 12:48 | 1955130 Banksters
Banksters's picture

I'm sensitive about German jokes.   

Wed, 12/07/2011 - 12:49 | 1955133 AngryGerman
AngryGerman's picture

come on, don't be a jew!

Wed, 12/07/2011 - 12:48 | 1955131 lizzy36
lizzy36's picture

Womder of this is what Geithner and Schauble talked about yesterday.

Looks like Scheitner worked miracles.Hallelujah!

Wed, 12/07/2011 - 12:52 | 1955149 falak pema
falak pema's picture

Lizzy, you are driving me dizzy; having had problems digesting Merkozy we now have to swallow a Scheitner...wow, pass me the Schnaps. That is concentrated cumradery of new dimensions. 

Wed, 12/07/2011 - 12:56 | 1955167 lizzy36
lizzy36's picture

I wish i was clever enough to come up with Scheitner.

The credit goes 100% to Tyler Durden. Who came up with it yesterday in a tweet :)

Wed, 12/07/2011 - 12:58 | 1955181 slewie the pi-rat
slewie the pi-rat's picture

BINGO,  BiCheZ!!!

new epidoes for the Starship EnterpiZe? 

oh, boy, liz_z, and yer gonna get a pony, too!

Wed, 12/07/2011 - 13:29 | 1955276 Captain Kink
Captain Kink's picture

New episodes?  Sweet, I could use the cash....  Star Trek VII:  The Sixth Moon of Jupiter

Wed, 12/07/2011 - 16:59 | 1956158 Captain Kink
Captain Kink's picture

Jumked? Seriously?  At least have the courage to challenge the assertion.  Unless you are the real William Shatner?

Wed, 12/07/2011 - 12:49 | 1955134 hugovanderbubble
hugovanderbubble's picture

GERMANY WILL LOSE AAA RATING....OBVIOUS

Wed, 12/07/2011 - 12:51 | 1955144 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The reason that S$P/Moodys/Fitch are downgrading now and not before is because it is the last stand of deflation to keep the system from hyperinflating.

Wed, 12/07/2011 - 12:52 | 1955145 AngryGerman
AngryGerman's picture

who cares?

Wed, 12/07/2011 - 13:00 | 1955190 GeneMarchbanks
GeneMarchbanks's picture

Uh, AngryGermans... ?

Wed, 12/07/2011 - 13:04 | 1955209 AngryGerman
AngryGerman's picture

na, germans like it bc it makes the other countries feel better

Wed, 12/07/2011 - 13:08 | 1955235 GeneMarchbanks
GeneMarchbanks's picture

Did you know that Hitler liked to have young girls piss on his head? Really turned him on apparently... now of course most Germans probably don't care for that foreplay but...

Just sayin'

Wed, 12/07/2011 - 13:11 | 1955247 AngryGerman
AngryGerman's picture

source? need something to laugh right now...

Wed, 12/07/2011 - 13:20 | 1955290 GeneMarchbanks
GeneMarchbanks's picture

You're going to regret it:

http://www.amazon.com/Denial-Death-Ernest-Becker/dp/0684832402#reader_06...

In case the link fails. The Denial of Death by Ernest Becker

pg.249

Enjoy

Wed, 12/07/2011 - 13:32 | 1955342 hedgeless_horseman
hedgeless_horseman's picture

 

 

That's golden, Gerry, golden!

Wed, 12/07/2011 - 13:34 | 1955358 GeneMarchbanks
GeneMarchbanks's picture

Yes. Social scientists rejoice! ;)

Wed, 12/07/2011 - 14:27 | 1955526 TheFourthStooge-ing
TheFourthStooge-ing's picture

The History Channel, during a chunk of time not devoted to bigfoot piloting a flying saucer, ran a program about Hitler's family. According to the program, he had one of his younger female cousins squat over him and "let it rain".

 

Wed, 12/07/2011 - 14:15 | 1955492 TheGardener
TheGardener's picture

That Austrian was a vegetarian too...

Wed, 12/07/2011 - 12:49 | 1955137 falak pema
falak pema's picture

Germany goes german and keeps euro zone shenanigans out of German banks? AM I reading this right? Its the ECB that prints the euros or is it the Deutsch central bank? I am not sure of how this cash bonanza works.

Wed, 12/07/2011 - 12:56 | 1955169 Peter K
Peter K's picture

There is a plus side to losing AAA. The new DEM will be cheaper. Should help with the export sector.

Wed, 12/07/2011 - 12:53 | 1955150 LibertyIn2010
LibertyIn2010's picture

Germany's Schauble To Pull A "Paulson" Will Force Banks To Take Bailout Funds

Do you still believe the myth that Paulson "forced" the banks to take bailout funds?  Do you believe that he really got down on one knee and begged Speaker Pelosi to pass TARP? 

This story, narrative, myth was told in order to gain acceptance by the public for bailing out the banks and socializing their losses.

See, if the public were told that in reality the banks threatened Congress that if they didn't authorize the bailout then the banks were going to crash the markets and the economy...well then even the most distracted, lethargic, indifferent citizen would be able to tell that the Wall Street/Global Banks/Central Banks are using a form of financial terrorism to takeover the countries of the world.  (See Goldman Sachs now running Italy, Greece).

It's a war on terror alright - FINANCIAL terror.

Wed, 12/07/2011 - 13:07 | 1955228 flattrader
flattrader's picture

I have always though this was the real story.  Is there any "confirmation" of this?...I'm thinking Paulson's "Tanks in the Streets" alludes to it.

But, then you have Obama telling the bankers that he was the only thing standing between them and the pitchforks.

http://abcnews.go.com/blogs/politics/2009/04/obama-to-banker/

Or was this a case of two players in the Mutually Assured Destruction Game, both making threats, yet allowing the game to continue?

They are only on opposite sides of the gameboard until someone/something threatens to take it all away and make them go to bed without any supper for their bad behavior.

Wed, 12/07/2011 - 12:53 | 1955151 Cangoroo
Cangoroo's picture

And here we go. Nationalisation. They are public banks anyway, so who cares apart from DB. CBK is worthless and does not matter.

Wed, 12/07/2011 - 12:53 | 1955153 kito
kito's picture

m

o

r

a

l

h

a

z

a

r

d

r

u

l

e

s

!

!
!

 

Wed, 12/07/2011 - 13:13 | 1955258 Spastica Rex
Spastica Rex's picture

-1 annoying typographical layout

Wed, 12/07/2011 - 13:18 | 1955278 kito
kito's picture

substance over style.....

still waiting for you to ship out my prize. please hurry before it becomes devalued..........

Wed, 12/07/2011 - 13:40 | 1955379 Spastica Rex
Spastica Rex's picture

;)

I can't remember, what do I owe you?

Wed, 12/07/2011 - 14:32 | 1955542 TheFourthStooge-ing
TheFourthStooge-ing's picture

It's hard to tell. Your prize debt was collateralized, securitized, spun off into tranches, and sold to funds for widows and orphans.

 

Wed, 12/07/2011 - 12:55 | 1955160 Peter K
Peter K's picture

Could also be preparing the system for exit out of the Euro. We know that the problem with returning to the DEM is the bank, notice how I write bank, will need to be recapitalized. And since as per earlier post, the bank system is running out of cash (Target2 assests at Buba), it's just a matter of time. The table is being set, gentlemen:)

Wed, 12/07/2011 - 12:56 | 1955165 economessed
economessed's picture

Shouldn't someone do a stress test?

Wed, 12/07/2011 - 13:03 | 1955201 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They did.  They're fine.  Now let them bail themselves out in peace.

Wed, 12/07/2011 - 12:57 | 1955176 Captain Kink
Captain Kink's picture

so, Bullish DB?  Jan 50 calls are $0.50

Wed, 12/07/2011 - 12:59 | 1955185 Stoploss
Stoploss's picture

So, temporary is now defined as 4+ years.

Wed, 12/07/2011 - 13:00 | 1955188 Caviar Emptor
Caviar Emptor's picture

Been saying here for months now. Germany's picture is not as rosy as some would like to beleive. That has implications for its banks, but that's only the beginning

Wed, 12/07/2011 - 13:05 | 1955221 Cangoroo
Cangoroo's picture

We know it. There is just too much bad debt. Germany needs to write it down. China will have to follow one day.

Wed, 12/07/2011 - 13:02 | 1955195 AccreditedEYE
AccreditedEYE's picture

These momo traders are idiots....

Wed, 12/07/2011 - 13:02 | 1955199 youngman
youngman's picture

Does anyone think Obama has any idea what is going on here and what it means and how it works... or what its effects will be or not be...I don´t...he is so way over his head....His advisors have no idea how to educate him either...its way to late for that

Wed, 12/07/2011 - 13:12 | 1955251 Rainman
Rainman's picture

The details of global economic implosion are left to Odrama underlings. His Eminence is busy fighting the class warfare crusade he created. Besides, Hawaii awaits...one of his half dozen 'home towns'.

Wed, 12/07/2011 - 13:31 | 1955322 Global Hunter
Global Hunter's picture

his desire to be looked at and listened to and admired is more powerful than his intellect.  If he has much intelligence he can't use it (much like a crack addict doesn't appear smart but could have a high iq) or access it.  This is his weakness, this is how he's controlled.  I'm certain whether he's intelligent or not he wakes up in cold sweats as reality begins to break through his petty narcissism but supresses that feeling (again like a crack addict). By his body language the last year or two I'd say reality creeps in more and more and he's having a harder time fueling his desires.

edit: I wrote the above for you Barry oh and when your horse of a wife puts that strap on and takes you from behind does it make living with yourself go away temporarily?  bwahahahaha

Wed, 12/07/2011 - 13:03 | 1955200 RobotTrader
RobotTrader's picture

Check out the 52-week highs today

 

http://www.marketwatch.com/tools/marketsummary/screener.asp?exchange=Nys...

75% are Muni-Bond ETF's.

Everyone is still totally enamoured with paper

Wed, 12/07/2011 - 13:04 | 1955213 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Lemmings

Wed, 12/07/2011 - 13:08 | 1955233 kito
kito's picture

wait, yesterday, you said everyone is enamoured with things robo!!!

Wed, 12/07/2011 - 13:09 | 1955239 homersimpson
homersimpson's picture

I guess ZH got tired of you posting after-the-fact pics on your after-the-fact predictions with after-the-fact info.. That would explain the worthless links.

Everyone is totally enamoured with paper just like the US gov't is enamored with cutting spending.

Wed, 12/07/2011 - 13:03 | 1955205 Racer
Racer's picture

They force the rich banksters to take money yet force austerity on the poor people? Hmmm, something wrong there somewhere.......

Wed, 12/07/2011 - 13:28 | 1955333 SheepDog-One
SheepDog-One's picture

Oh noez! Please dont force us banksters to take all this free money! Dont throws us into that nasty 'ol briar patch!

lol

Wed, 12/07/2011 - 13:03 | 1955206 whisperin
whisperin's picture

Isn't this in direct violation of Germany's Supreme Court ruling?

Wed, 12/07/2011 - 13:12 | 1955252 Cangoroo
Cangoroo's picture

No, what violation? They can nationalise whatever they want. Okay, they have to compensate. But with these share prices and DB the only candidate, it does not matter and no downgrade. For CBK, the equity markets were fully aware. I do not see how they can increase their stake in the rotten Landesbanken, it cannot work and will not.

Wed, 12/07/2011 - 13:03 | 1955207 Caviar Emptor
Caviar Emptor's picture

This latest action should be giving you all a clue as to what the chances are for Euro Fiscal Union

Wed, 12/07/2011 - 13:05 | 1955218 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Germany just jumped ship, what do you mean "future"?

Wed, 12/07/2011 - 13:05 | 1955219 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Germany just jumped ship, what do you mean "future"?

Wed, 12/07/2011 - 13:03 | 1955208 LoneCapitalist
LoneCapitalist's picture

Next step: Mark to fantasy. Or do they already have that?

Wed, 12/07/2011 - 13:08 | 1955236 RobotTrader
RobotTrader's picture

Don't look now...

 

RTH now trading at 3-year highs

http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...

The consumer is giddy since food and gasoline prices have completely cratered

Wed, 12/07/2011 - 13:15 | 1955268 Spastica Rex
Spastica Rex's picture

I hate responding to you, but I pay $3.59.9 for regular.

Wed, 12/07/2011 - 13:19 | 1955284 kito
kito's picture

my organic 16 oz box of pasta just got bumped from 1.29 to 2.19..............

Wed, 12/07/2011 - 13:21 | 1955294 Caviar Emptor
Caviar Emptor's picture

Small bag of apples for $10

Wed, 12/07/2011 - 13:18 | 1955281 marcusfenix
marcusfenix's picture

$100.33 is hardly "cratered" but I believe somebody else already pointed that out to you earlier.

 

 

 

Wed, 12/07/2011 - 13:25 | 1955313 markar
markar's picture

get out of your mother's basement and go to a grocery store-then tell me food prices have cratered.

Wed, 12/07/2011 - 14:38 | 1955564 IndicaTive
IndicaTive's picture

My kids' cereal boxes keep shrinking.

Wed, 12/07/2011 - 14:59 | 1955645 lieutenantjohnchard
lieutenantjohnchard's picture

robottrader: what you look like after eating only chinese import food.

Wed, 12/07/2011 - 13:13 | 1955250 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Economic collapse underway.

BUY SILVER

Wed, 12/07/2011 - 13:13 | 1955259 Apocalicious
Apocalicious's picture

Ok, I know this is apropos of nothing, but I have to tell someone else who would get the joke. I just had two Goldman salesmen sitting in my office this morning, and one says to me "You know, (name redacted) we have very deep tentacles, so to speak." No shit, the guy actually said that! I literally had to fight the urge to bust out laughing hysterically.

Wed, 12/07/2011 - 13:15 | 1955266 Tsar Pointless
Tsar Pointless's picture

Did your meeting by chance end with any promises of a squid-pro-quo?

Wed, 12/07/2011 - 13:18 | 1955282 SwingForce
SwingForce's picture

HONK if you like Big Bailouts!

Wed, 12/07/2011 - 13:20 | 1955288 non_anon
non_anon's picture

what's good for the goose is good for the gander

Wed, 12/07/2011 - 13:20 | 1955289 midgetrannyporn
midgetrannyporn's picture

Now we know who has been making zee moist crappy loans.

Bailout money = bonus money.

Wed, 12/07/2011 - 13:21 | 1955295 RobotTrader
RobotTrader's picture

New lows on CRB Index

 

 

What happened to that guy at Shadowstats?

 

Wed, 12/07/2011 - 13:38 | 1955372 narapoiddyslexia
narapoiddyslexia's picture

The commodities tracked are presumed to be among the first to be influenced by changes in economic conditions, are they not? 

Wed, 12/07/2011 - 13:22 | 1955299 Georgesblog
Georgesblog's picture

This did so well in consolidating financial and political power in the U. S. . Naturally, someone would get the bright idea to use the practice to conquer another continent. Debt always conquered more people than armies.

 http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/

Wed, 12/07/2011 - 13:24 | 1955308 Triple A
Triple A's picture

It is amazing with so much debt in the system that somehow they still find money to prop up failed institutions from failed institutions. Will it ever end?

 

Wed, 12/07/2011 - 13:26 | 1955315 Cangoroo
Cangoroo's picture

DOW green. Schauble put 400 bn Euros guarantees in the fire. Good for the industry. Fuel for share prices.

Wed, 12/07/2011 - 13:32 | 1955345 SheepDog-One
SheepDog-One's picture

Hardly impressing much as a big 'Santa Claus Rally' with the DOW up .15.

Wed, 12/07/2011 - 13:28 | 1955316 PulauHantu29
PulauHantu29's picture

How about "forcing" the Middle Class to take a few thousand Bailout?

Looks to me the entire EuroTARP will be much larger then the little USA TARP to the tune of $10 to $20 Trillions....

Watch oil and PMs and food prices react .....

Wed, 12/07/2011 - 13:29 | 1955337 vegas
vegas's picture

Dear Schauble,

I wish to be considered for "taking cash". I'm not TBTF, but I promise to pay it back [maybe, someday]. Please send ASAP.

 

http://vegasxau.blogspot.com

Wed, 12/07/2011 - 13:45 | 1955392 Cangoroo
Cangoroo's picture

It is easier. Just buy a couple of Mercedes Benz cars and pay it with a Mastercard Credit Card fom Wells Fargo. Mastercard will be reimbursed by Wells Fargo and Wells Fargo by Goldman. Goldman will bundle this into a nice ABS and sell it to LBBW in Germany, Schaubles Federal state.  LBWW, a rotten Landesbank will pay Mercedes Benz and get the ABS as a collateral.  Then sell the Mercedes cars to a chap in Mexico, the collateral becomes worthless and Schauble will bail out the rotten Landesbank. It is a win win situation.

Wed, 12/07/2011 - 13:31 | 1955338 slackrabbit
slackrabbit's picture

just saw on Blomberg right now ...they will interview Jon Corzine on 'Boom and Bust'...the propganda has now gone beyond sickening levels....fucking disgusting

 

Wed, 12/07/2011 - 13:51 | 1955413 Quinvarius
Quinvarius's picture

Are you sure it isn't like one of those sting operations they do on poor people with traffic tickets they can't pay?  The kind where they tell them they won the lottery and need to show up somewhere at certain date and time.  Then when they show up, they get arrested?

Wed, 12/07/2011 - 13:48 | 1955400 AldoHux_IV
AldoHux_IV's picture

Making the same damn stupid mistakes the US made-- Geithner must be sucking a mean one over there because they must be listening-- only someone so stupid would recommend the very same problems as a solution.

Wed, 12/07/2011 - 13:54 | 1955421 Quinvarius
Quinvarius's picture

We are in the midst of the big print.  Expect the ask on gold to dry up soon.

Wed, 12/07/2011 - 13:58 | 1955439 rambler6421
rambler6421's picture

But then Germany will default then?

 

libertarian86.blogspot.com

Wed, 12/07/2011 - 14:05 | 1955463 Cangoroo
Cangoroo's picture

Unlikely. Writedown of receiveables, yes. That is manageable. Writedown of payables is more of a kind of problem.

Wed, 12/07/2011 - 14:29 | 1955532 Few
Few's picture

The Eurozombie will be like an infant knee walking on the floor with a freshly excreted poop as a toy, slapping it to and fro. It will be funny and tragic at the same time.

Wed, 12/07/2011 - 14:34 | 1955548 bugs_
bugs_'s picture

baby got backstop

Wed, 12/07/2011 - 14:48 | 1955607 Snakeeyes
Snakeeyes's picture

The Commerzbank blowup really spooked Germany. But even their IP is declining in strength.

 

Rumble on The Rhine – Uncertainty About The Eurozone Treaty (Italy, Spain and Belgium Yields UP)

http://confoundedinterest.wordpress.com

 

Wed, 12/07/2011 - 15:18 | 1955712 grovernors
grovernors's picture

Have you ever wanted to throw the last straw on the camels back? Drop the final grain of sand onto the sandpile?  Initiate positive social progress all whilst introduceing liquidity into the precious metals market?

Now is your opportunity!!  All this takes is the creation and popular use of a simple smartphone application that tracks live the spot price of precious metals and has a calculator function to indicate accurate fiat change!   This allows business owners and merchants to trade goods or services for pm's that they would typically purchase anyways at cost.  This olde concept allows the average human to trade in a constitutional medium without paying fees and inflation premiums associated with paper.

Correct me if I am wrong but I do not believe this violates any legal tender laws.  Taxes may be complicated but thats why we have accountants and the IRS right?

 

http://indigenousamerican.blogspot.com/

 

 

 

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