EuroTARP Cometh: Germany's Schauble To Pull A "Paulson" Will Force Banks To Take Bailout Funds, Handelsblatt Says
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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Alles ist in ordnung.
It removes uncertainty from the system and assures liquidity for the banks.
Three years later, still no one has any idea what they are doing.
THEY know exactly what they are doing- Behold "The Forth Reich"
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.
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/
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?
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
"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
What if the coin stood on it's edge?
ORI
What if?
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.
then Dick York will read our minds "The Twilight Zone"
ah yes,... the proverbial 3rd side?
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.
We are waiting for Bernanke's "Oops." moment by the way.
...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?
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.
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
They will blow each other up into nothingness.
Eat your heart out, Heideggerians
Europe copying the US monetary model is like copying the Larry Summers dieting model to lose weight.
Might be more of a 'Gustav Line" to protect Germany from attack via Italy!
Would this not be bullish for US markets? And especially US banks....At least short-term until the bill comes due.
Just publish these articles in the German original, we can all understand. We are, after all, all Germans now.
DANN LIES DAS!
http://www.handelsblatt.com/politik/deutschland/schaeuble-will-banken-notfalls-zwangsweise-retten/5933562.html
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.
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..............
Germany will guarantee war in Europe, forget Iran.
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.
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?
Hey, Angela, this American hopium is some goood shit. Try some?
The adults resigned in 1980. Hate to say it. All seduced by the promise of something for nothing
'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...
"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.
The Anglos will guarantee war more than likely.
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.
"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)
I'm guessing that some are feeling quite thankful for those constantly revolving doors, which let bank advisors/faux politicians do their "thing" then.
"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."
Yeaaaaahhh, state money for my bonus!
You can't be too angry, AngryGerman....nice little pic there...lots of "Holz vor der Hütte".
ja. you shall take zee bailout und like it!
der bitchez.
shadow banking hours away from collapse, just like under Paulson.
The debt spice must flow.
EUtopia cometh. Fucking Geithner, I blame Obama for this shit. Good luck implementing this in all of Europe.
Athens riot can was small potatoes.
When do we get real riots in the US? Occupy is lame.
Ha, not soon it seems. America isn't even close to simmering and it has been four years now...
Come now, the Marxist-Socialist revolution isn't gonna fight itself, it's fun to watch the serfs repeat their ancestors' mistakes in perpetuity.
Next year? Looks like that Santa Claus rally is fading.
More "feet to the fire" moves by the one world government mouth pieces. "Accept the serfdom or else!"
I'm sensitive about German jokes.
come on, don't be a jew!
Womder of this is what Geithner and Schauble talked about yesterday.
Looks like Scheitner worked miracles.Hallelujah!
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.
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 :)
BINGO, BiCheZ!!!
new epidoes for the Starship EnterpiZe?
oh, boy, liz_z, and yer gonna get a pony, too!
New episodes? Sweet, I could use the cash.... Star Trek VII: The Sixth Moon of Jupiter
Jumked? Seriously? At least have the courage to challenge the assertion. Unless you are the real William Shatner?
GERMANY WILL LOSE AAA RATING....OBVIOUS
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.
who cares?
Uh, AngryGermans... ?
na, germans like it bc it makes the other countries feel better
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'
source? need something to laugh right now...
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
That's golden, Gerry, golden!
Yes. Social scientists rejoice! ;)
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".
http://brainmind.com/Hitler3.html
That Austrian was a vegetarian too...
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.
There is a plus side to losing AAA. The new DEM will be cheaper. Should help with the export sector.
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.
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.
And here we go. Nationalisation. They are public banks anyway, so who cares apart from DB. CBK is worthless and does not matter.
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-1 annoying typographical layout
substance over style.....
still waiting for you to ship out my prize. please hurry before it becomes devalued..........
;)
I can't remember, what do I owe you?
It's hard to tell. Your prize debt was collateralized, securitized, spun off into tranches, and sold to funds for widows and orphans.
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:)
Shouldn't someone do a stress test?
They did. They're fine. Now let them bail themselves out in peace.
so, Bullish DB? Jan 50 calls are $0.50
So, temporary is now defined as 4+ years.
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
We know it. There is just too much bad debt. Germany needs to write it down. China will have to follow one day.
These momo traders are idiots....
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
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'.
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