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On Growing Tensions, Spreading Global Downturn And A Dead-End Greek Resolution

Tyler Durden's picture


Just when one thought it was safe to come out of hiding from under the school desk after the latest nuclear bomb drill (because Europe once again plans on recycling the Euro bond gambit - just like it did in 2011 - so all shall be well), here comes David Rosenberg carrying the launch codes, and setting off the mushroom cloud.

From Gluskin Sheff

Growing Tensions

Anti-austerity demonstrations in Frankurt. Massive emigration out of Spain. Student bombings in Italy. Suicides in Greece, along with a run on the banks. Camp David discord with Germany. Unusual nuclear war talk out of Russia.

The euro area fiscal and banking crisis is taking on a certain destabilizing geopolitical tone. One reason why gold — as a hedge against instability — is starting to stage a comeback. After touching a four-month low last week and moving into official correction mode of a 20% decline from the highs, the yellow metal then went off and enjoyed its best day since January on Thursday and posted a nice follow-through to finish off the week.

Spreading Global Downturn

Italy, Spain, Portugal, Greece, the Netherlands and Brazil are now facing economic contraction (Brazil is the world's seventh largest economy and despite a huge 350 basis point rate cut from the central bank, the country has suffered three straight months of declining economic activity). France is stagnating. China is slowing down rapidly. The only two countries I see that have managed to surprise to the upside are Germany and Japan (the latter just saw the government actually raise its assessment of the economy).

Beyond Greece, two areas of concern are clearly Spain's woefully undercapitalized banking system where bad debt ratios have hit all-time highs (the banks received a Moody's downgrade late last week too), and China's property market which continues to deflate — average prices in 70 major cities fell in April for the second month in a row (-1.2% YoY versus -0.7% in March ... maybe this is one of those events that we're supposed to assume will somehow stay contained). On a MoM sequential basis, prices declined 0.3% and have fallen now for seven consecutive months (Chinese policymakers over the weekend verbally hinted of a coming round of additional monetary stimulus along with a fiscal boost ... and the market bulls desperately needed to hear that).

It's not just the economies, either, but also stock markets. The likes of Greece, Spain, Italy, Russia, Brazil and even Canada have seen corrections of 20% or more from the cycle highs. The U.K. FTSE has corrected more than 10%. As the Financial Times reports, euro area banking stocks are actually lower now than they were at the panic troughs after Lehman collapsed nearly four years ago. The S&P 500 has given up two-thirds of its 2012 gains and is now below its level of a year ago. The VIX index is at a new high for the year and copper touched a four-month low to finish off last week. The FX market is consistent with this downbeat global growth assessment, underscored by the Aussie slipping to its lowest level since November and the NZ kiwi sliding to its lowest level since December. The winners have generally been the more defensive units — like the U.S. dollar, the yen, and sterling as well.

Greece is the Word

Well, look at the bright side. At least we'll know whether Greece decides to stay or go within the next month since the second-round election in June is being widely viewed as a referendum on continued euro area membership. Incredibly, the polls show that 80% of Greek citizens want to stay in. The problem is that they also want more bailout money with fewer stipulations.

What was considered unthinkable just a few months ago is apparently an event that now seems inevitable. The editorial in the current Economist runs with The Greek Run: It is Not a Good Idea for Greece to Leave the Euro, But it is Time to Prepare For its Departure. The weekend WSJ went with this on page All — Europe Weighs Exit Scenario. There's even a new name being bandied about over this departure prospect — a "Grexit". Surreal. All the more so since the Maastricht Treaty contained no provisions on any exit — there are no ground rules!

There are no clear winners from a Greek exit unless you are long confusion, turmoil and uncertainty. The country faces a depression no matter what it does or doesn't do — though reclaiming control over its currency and monetary policy could end up having long-run competitive benefits. The country would likely need a 30-40% devaluation to put its economy on a more competitive footing. The financial disruption, based on many estimates I have seen, would cost Europe something in the order of 2-2.5% of lost output. Greek's total public and private external liabilities amount to $540 billion U.S. dollars — the ECB, the IMF, banks and a swath of other foreign creditors would suffer deep losses.


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Tue, 05/22/2012 - 21:36 | 2453618 veyron
veyron's picture

What's CNBC's spin on the matter?  Are they done fellating zuckerberg ...

Tue, 05/22/2012 - 21:41 | 2453632 SilverTree
Tue, 05/22/2012 - 21:46 | 2453653 SilverTree
Tue, 05/22/2012 - 21:51 | 2453656 Paul Atreides
Paul Atreides's picture

Sh*t... thanks ST, click his link mine is missing the http://

Tue, 05/22/2012 - 21:59 | 2453686 5880
5880's picture


Tue, 05/22/2012 - 22:08 | 2453710 El Oregonian
El Oregonian's picture

Who? Obama?

Tue, 05/22/2012 - 22:24 | 2453738 SilverTree
SilverTree's picture

No, he is bi.

Tue, 05/22/2012 - 22:32 | 2453749 Treason Season
Treason Season's picture

A Bi Cyborg

Tue, 05/22/2012 - 22:39 | 2453774 veyron
veyron's picture


Tue, 05/22/2012 - 23:04 | 2453818 Michael
Michael's picture

If I couldn't live free, I'd just rather die.

Wed, 05/23/2012 - 00:15 | 2453908 bsdetector
bsdetector's picture

I don't fully understand the narration but that is certainly a moving video Silver Tree! Need I suggest that this is a professionally produced piece and probably cost upwards of $100,000 to produce? Who paid for this and what is their motive?

Wed, 05/23/2012 - 06:46 | 2454243 IrritableBowels
IrritableBowels's picture

In the yt comments somebody was inquiring as to why the film 'Baraca' was not given credit. I think it was that film with the voice dubbed.

Wed, 05/23/2012 - 03:28 | 2454134 aminorex
aminorex's picture

be careful what you wish for

Wed, 05/23/2012 - 06:44 | 2454242 bdc63
bdc63's picture

Homeland Security has taken note of your wishes ...

Tue, 05/22/2012 - 23:36 | 2453860 El Oregonian
El Oregonian's picture

As in Bye-Bye?

Tue, 05/22/2012 - 23:04 | 2453819 Waffen
Waffen's picture

I love Les Visible and snordelhans renditions.. Cant wait to listen.

Tue, 05/22/2012 - 23:46 | 2453883 john39
john39's picture

great writer he is, very original.  no problem calling a spade a spade.  or a banker a satanist as it were.

Tue, 05/22/2012 - 21:56 | 2453676 5880
5880's picture

they will say it's bullish

everything is bullish to them

Tue, 05/22/2012 - 22:13 | 2453714 stocktivity
stocktivity's picture

I thought those CNBC bozos were going to pass out with excitement friday when the hooded wonder rang the opening bell.

Tue, 05/22/2012 - 22:26 | 2453744 cbxer55
cbxer55's picture

He be the Hooded Flounder now!  ;-)

Tue, 05/22/2012 - 22:50 | 2453795 Trimmed Hedge
Trimmed Hedge's picture

Oh, don't worry.. He's quite set, thanks for your concern, tho....

Wed, 05/23/2012 - 01:07 | 2454008 CrazyCooter
CrazyCooter's picture

I used my time machine to get this video decades from now (when he has put on some weight) ...



Tue, 05/22/2012 - 22:53 | 2453799 earleflorida
earleflorida's picture

 just can't understand why bloomberg doesn't change their streaming quotes to match the format of cnbc's. i for one wish they would just go away, period!  the misery of having to watch 'fair-n-balance [cnbc] shit-pumping', makes me nauseous to say the least. bloomberg has great analysis and plausible integrity - and, the lady's, well... no need for elaborate!

Ps.   btw, what happened to Margaret Brennan?



Tue, 05/22/2012 - 23:03 | 2453815 Palladin
Palladin's picture

Ever wonder what the Bloomberg ladies do off camera?  Scour the internet for breaking news? Show prep for the next hard hitting exclusive interview?

Regarding Margaret Brennan, from Wikipedia:

On April 27, 2012, she hosted her last show of InBusiness. No reason was given for her departure, other than the choice to pursue new opportunities'. Scarlet Fu has been hosting InBusiness since.

Now that was a tall drink of water.



Tue, 05/22/2012 - 23:22 | 2453838 earleflorida
earleflorida's picture

amen to that, brother

Wed, 05/23/2012 - 00:56 | 2453995 MayerRothschild
MayerRothschild's picture

I think they are still waiting for the 'pop'

Tue, 05/22/2012 - 21:38 | 2453622 Default to Reality
Default to Reality's picture

The MSM is too busy muffling their bitch Cramer, he let the cat out of the bag the other day..........


Tue, 05/22/2012 - 23:30 | 2453850 UP Forester
UP Forester's picture

Here's something you won't hear on the MSM, Egon von Greyerz explaining a Swiss bank didn't have his allocated gold for delivery:

@ 5' 12"

Wed, 05/23/2012 - 06:21 | 2454228 Its_the_economy...
Its_the_economy_stupid's picture

I am shocked and hugely dissappointed in such behavior.

Tue, 05/22/2012 - 21:39 | 2453625 GOSPLAN HERO
GOSPLAN HERO's picture

Collapse, comrades.

Tue, 05/22/2012 - 21:45 | 2453651 DeadFred
DeadFred's picture

I'm betting tomorrow sees the second try at S&Ps 200 DMA. The first try was half hearted but this one will have some muscle to it.

Tue, 05/22/2012 - 23:40 | 2453867 barliman
barliman's picture


Oh would that it  proves true ...

... but the low volumes work better for the HFT's algos reading positive spin headlines out of the latest EU circle jerk so I don't think so.

When is it, Thursday, that the possibility of shorting FB becomes active? My money says thats the day the S&P takes out the 200 DMA.


Tue, 05/22/2012 - 22:03 | 2453661 xcehn
xcehn's picture

"In the end, the financial crisis could destroy Western civilization."

"During an appearance on Meet The Press on Sunday, Jim Cramer of CNBC boldly predicted that "financial anarchy" is coming to Europe and that there will be "bank runs" in Spain and Italy in the next few weeks. This is very strong language for the most famous personality on the most watched financial news channel in the United States to be using."

"With each passing day, the banking crisis in Europe escalates. European banks are having their credit ratings downgraded in waves, bond yields are soaring and billions of euros are being pulled out of banks all across the eurozone. The situation in Europe is rapidly going from bad to worse. It is almost like watching air being let out of a balloon. The key to any financial system is confidence, and right now confidence in banks in Greece, Italy, Spain and Portugal is declining at an alarming rate. When things hit the fan in Europe, it is going to be much safer to have your money in Swiss banks or German banks than in Greek banks, Spanish banks or Italian banks. Millions of people in Europe are starting to realize that a "euro" is not necessarily always going to be a "euro" and they are starting to panic. The Greek banking system is already on the verge of total collapse, and at this rate it is only a matter of time before we see some major Spanish and Italian banks start to fail. In fact it has already been announced that the fourth largest bank in Spain, Bankia, will be getting bailed out by the Spanish government. It is only a matter of time before we hear more announcements like this. Right now, events are moving so quickly in Europe that it is hard to keep up with them all. But this is what usually happens in the financial world. When things go well, it tends to happen over an extended period of time. When things fall apart, it tends to happen very rapidly. And at the moment, things across the pond are moving at a pace that is absolutely breathtaking. The following are 18 signs that the banking crisis in Europe has just gone from bad to worse...."

Wed, 05/23/2012 - 06:25 | 2454230 Its_the_economy...
Its_the_economy_stupid's picture

JC is like and alcoholic who suddenly goes on the wagon and gets religion.

Where you been, Jim?

Wed, 05/23/2012 - 06:50 | 2454247 bdc63
bdc63's picture

He's just preparing for his "Europe know NOTHING!" rant

Tue, 05/22/2012 - 21:40 | 2453627 StockHut
StockHut's picture

Aint nothing like watching a Keynesian dream fall apart

Tue, 05/22/2012 - 22:06 | 2453708 FL_Conservative
FL_Conservative's picture

Except if you can take their money (real money, that is) too.

Tue, 05/22/2012 - 22:18 | 2453727 crawldaddy
crawldaddy's picture

stop with the retarded right wing motifs. Supply side bullshit has its fingerprints all over this crisis as well.

Tue, 05/22/2012 - 22:49 | 2453794 Joe The Plumber
Joe The Plumber's picture

Supply siders were keynesian too with a little trickle down added. I dont see keynesianism as right or left but just another statist philosophy embraced by both, at least in action if not word

Wed, 05/23/2012 - 06:26 | 2454229 jeff montanye
jeff montanye's picture

oh it does.  the corruption and malfeasance are nearly universal around the levers of power.  to not see it is to be willfully blind.

Wed, 05/23/2012 - 10:09 | 2454669 mikesswimn
mikesswimn's picture

You're an idiot.

Arthur Laffer, a major architect of supply side economics, stole the concept of the Laffer Curve - the embodiment of "supply side bullshit" as you call it - from John Maynard Keynes and freely admits it:

Or, if you want the original, see: John Maynard Keynes, The Collected Writings of John Maynard Keynes (London: Macmillan, Cambridge University Press, 1972).

Maybe if you did a little more reading you would be a little less retarded.

Tue, 05/22/2012 - 23:57 | 2453905 Plumplechook
Plumplechook's picture

Piss-off StockHut with your Heritage Foundation talking points. 

This is a crisis of capitalism - the end result of 30 years of neo-liberal/supply-side economics.   A generation of market deregulation and corporate liberalisation has now wrecked havoc on public finances, jobs, services and living standards throughout the western world - except of course for the 0.1 percent rentier class who are doing better than ever.

Wed, 05/23/2012 - 07:44 | 2454296 Lednbrass
Lednbrass's picture

An out of control financial sector has certainly caused some serious problems- but you leftist tards want to ignore that the same system that pumps money to them also allowed the insane spending that is so near and dear to the people that want the government to provide for them. The massive spending and borrowing are a huge problem and can no longer be avoided, it was only a question of when it would blow up.

You can ignore the sovereign debt problem that is eating Europe alive and pretend that it doesnt exist, but that would make you a complete damn idiot.


Tue, 05/22/2012 - 21:44 | 2453643 zerotohero
zerotohero's picture

somebody hit the fast forward button already.

Tue, 05/22/2012 - 22:14 | 2453719 El Oregonian
El Oregonian's picture

Ok.... ZIIIPPP! your dead... Oops, to far....

Tue, 05/22/2012 - 22:47 | 2453790 Gypsyducks
Gypsyducks's picture

ZIRP you're dead

Tue, 05/22/2012 - 21:45 | 2453649 pasmurf
pasmurf's picture

BBC polling showed 25-25 between Syriza and ND,- so what about another round of elections just to keep everyone on their toes after June 17th? Have fun with that!!!!

Tue, 05/22/2012 - 21:52 | 2453654 ACP
ACP's picture

Seems like Greek citizens are in quite the catch 22.

But the amount of money is so big, how can you possibly give a shit? I think it's times like these that turned great cities into the ruins-cum-tourist attractions they are today.

Tue, 05/22/2012 - 22:39 | 2453773 Joe The Plumber
Joe The Plumber's picture

A devolution of the greek economy to agriculture, cheap tourism, and a small sideline of shipping will be interesting to see. No matter what happens greece is dropping to the level of the lower end of a middle income nation at best.

Tue, 05/22/2012 - 21:47 | 2453655 Tsar Pointless
Tsar Pointless's picture

I'm sensing this is - oh, I don't know, what is the word for which I am searching?

Oh, right - it's bullish! That's the word.

Tue, 05/22/2012 - 22:17 | 2453725 stocktivity
stocktivity's picture

The words used to be "green shoots" and  "shovel-ready projects".  Remember those?

Tue, 05/22/2012 - 22:23 | 2453737 Calmyourself
Calmyourself's picture

That is so overused and yes, so gay...  Although I do agree and was just hoping to give the little guys chain a wee yank..

Tue, 05/22/2012 - 21:48 | 2453657 willien1derland
willien1derland's picture

It is too bad that European Council President Herman Van Rompuy & European Commission President Barroso would simply abdicate their positions as they have clearly demonstrated their complete inability to lead...Restore true democracy to Europe & allow the banking elite to own their losses....that would at very least be a first step toward truly resolving this issue & the restoration of integrity.

Wed, 05/23/2012 - 03:48 | 2454146 Non Passaran
Non Passaran's picture

Those two dickheads are mere puppets, no use of having them replaced with another duo. The most promising approach is an all-out collapse of the EU.

Tue, 05/22/2012 - 21:48 | 2453658 Caviar Emptor
Caviar Emptor's picture

Greece balks. Don't be shocked. The alternative stinks. They don't wanna go back

Tue, 05/22/2012 - 22:42 | 2453782 Joe The Plumber
Joe The Plumber's picture

I also predict the greeks will bend over and take more german dick up the ass.

I also predict they will pretend they dont like it

Fukin pussies. Default already!

Tue, 05/22/2012 - 21:55 | 2453675 Boilermaker
Boilermaker's picture

....and....PRESTO...the ES starts its AMAZING reversal upward.

+10 handles by the open just for the fuck of it.

Tue, 05/22/2012 - 22:02 | 2453699 hedgeless_horseman
hedgeless_horseman's picture



Oceans of dollars, but no moon to control the tide.  

Tue, 05/22/2012 - 22:06 | 2453707 Boilermaker
Boilermaker's picture

Agreed, but for shit sake, can we at least TRY to mask it?  Does have to so gad damn mechanical and obvious?  Seriously?  Not even a touch of camo?  That's not in vogue anymore?  Not even subtle fraud but rather IN-YO-FACE?

Tue, 05/22/2012 - 22:37 | 2453769 WonderDawg
WonderDawg's picture

Dude, calm down. Nothing happens until Europe opens, we all know that. All the movements in the futures don't mean shit until 3:00 a.m. Eastern.

Tue, 05/22/2012 - 23:05 | 2453809 Boilermaker
Boilermaker's picture

I'm more pissed that the Pacers lost.  That sucked.

I hate LeBron even more than Bernake.

Tue, 05/22/2012 - 22:18 | 2453726 Yes_Questions
Yes_Questions's picture



Oh, I don't know.  I think we're getting mooned right now..


Wed, 05/23/2012 - 02:01 | 2454065 jabu
jabu's picture

I believe that may be the most succinct description of our economy I've ever heard.  Ten words evoke volumes!

Tue, 05/22/2012 - 21:57 | 2453682 Zgangsta
Zgangsta's picture

Europe is scared to death of a Greek exit.  And Greece knows it.  New leadership will extort Europe for everything it wants.

Greece is still going down, but not without taking the rest of Europe with it at the same time.

Tue, 05/22/2012 - 22:20 | 2453731 crawldaddy
crawldaddy's picture

the old saying, If I loan you a million I own you, if I loan you a billion, you own me.

Tue, 05/22/2012 - 22:01 | 2453693 Boilermaker
Boilermaker's picture

LMFAO...look at Ben just slamming the ES upward.

That's some seriously pathetic shit right there.  What a fucking asswipe.

Tue, 05/22/2012 - 22:02 | 2453697 Crimedog
Crimedog's picture

Does every freakin Zerohedge article have to have a gold plug in it?  I get it - we should buy gold because the price is GUARANTEED to go up.  Don't believe us?  Just ask the miners, they have a completely unbiased opinion.


Look, I like gold as well, but there's not much I can do with it at these prices.  Sweet, I can pick up a few ounces, that will definitely save me from the coming apocalypse.

Tue, 05/22/2012 - 22:17 | 2453715 Caviar Emptor
Caviar Emptor's picture

Your gilded comments certainly have an aureate edge to them, golden boy. 

Tue, 05/22/2012 - 22:13 | 2453716 Caviar Emptor
Caviar Emptor's picture


Tue, 05/22/2012 - 22:22 | 2453734 crawldaddy
crawldaddy's picture

you are right in the fact that there will be no winners in this upcoming fiasco.  Just survivors.

Tue, 05/22/2012 - 22:28 | 2453748 I am a Man I am...
I am a Man I am Forty's picture

no no no, buying physical gold is just for the rich folks here, you are supposed to storm washington with your jackboots, meanwhile when the war starts the rest of us will take our second passport and head to switzerland or the perth mint (oz) and play with our gold coins and bars, and we all bought around 350 an ounce so we want everyone else to bid the price up

Tue, 05/22/2012 - 22:39 | 2453772 Crimedog
Crimedog's picture

Haha.  Nice.


Serious question though - if one were to buy gold, is Bullion Vault a legitimate way to buy physical gold?  It is allocated gold - but allocated on a full gold bar.  So if a buy a few ounces, I have that small claim against a gold bar.  What would happen if everyone tried to pull their gold out of the vault?

Tue, 05/22/2012 - 23:41 | 2453871 jomama
jomama's picture

sounds like a sketchy endeavour at best.

physical or bust.

Wed, 05/23/2012 - 00:07 | 2453926 TN Jed
TN Jed's picture

Keep your eyes (especially hands) on the prize.  Everything else is just an attempt to separate or shave.  There will be a time when it may be ok to allocate but chaos ain't it.

Tue, 05/22/2012 - 23:10 | 2453824 earleflorida
earleflorida's picture

just buy the novelty '7.1 gram' gold-finger --- ~ $400

Tue, 05/22/2012 - 22:13 | 2453704 Mercury
Mercury's picture

There's even a new name being bandied about over this departure prospect — a "Grexit". Surreal. All the more so since the Maastricht Treaty contained no provisions on any exit — there are no ground rules!There's even a new name being bandied about over this departure prospect — a "Grexit". Surreal. All the more so since the Maastricht Treaty contained no provisions on any exit — there are no ground rules!

Maybe the other Euros won't let them leave.

When the US Southern states seceded in 1860-61 they argued (there was/is no constitutional provision for that either) “what’s the big deal?” - they had all signed treaties individually (as ex-colonies) with England at the end of the Revolution…and now they wanted out.  "Oh no you don’t!" said the North.

Just sayin'...


Wed, 05/23/2012 - 01:33 | 2454045 CrazyCooter
CrazyCooter's picture

Wow. That is so obvious, yet I completely missed the parallel.

Thank you for sharing your thoughts.



Tue, 05/22/2012 - 22:08 | 2453705 cherry picker
cherry picker's picture

We are concerned about the almighty dollar and jobs, but what about the simple things, like food, water and shelter?

Most cows sold are being sent to slaughter.  When the drought ends, demand for animals to rebuild herds is likely to peak just as the nation's cattle population is at its lowest since 1958......huffingtonpost 10/03/11 in respect to Oklahoma and Texas drought.

For years the Ogallala Aquifer, the world’s largest underground body of fresh water, has irrigated thousands of square miles of American farmland. Now it is running

Amid an unusually dry winter, managers of the federal Central Valley Project, which delivers mountain water for agriculture, late last month announced an initial reduction in farmers' water allowance for this year to 30% of the allotment in the driest southern reaches of the valley, down from 85% last year. Now farmers and local agriculture officials are taking in the economic impact they face.

Officials of the 614,000-acre Westlands Water District, near Fresno, say farmers there are expected to leave tens of thousands of acres fallow, only a year after California experienced one of its wettest winters on record......westernfarmpress.

We would rather have a shower every day, wash our damn cars and water lawns than irrigate food producing lands.  Fuck DOW, NASDAQ and S&P, because we may have something a lot more important to worry about, unless people love eating genetically produced petro chemicals made in a lab.

Our priorities have been screwed far too long.  Paying CEO's millions while the guy who has his ass on the line trying to make his farm go is getting slaughtered.

Tue, 05/22/2012 - 22:53 | 2453798 tekhneek
tekhneek's picture

Damn straight.

Tue, 05/22/2012 - 23:17 | 2453830 delacroix
delacroix's picture

agriculture and industry, use 85% of the water, and we the people, use 15%. I don't think daily showers, and lawn watering, is the problem.

Wed, 05/23/2012 - 00:14 | 2453935 Tirpitz
Tirpitz's picture

Oil drilling and fracking keep depleting scarce drinking water resources.

Wed, 05/23/2012 - 06:42 | 2454241 Its_the_economy...
Its_the_economy_stupid's picture

read "Cadillac Desert" if you want to know the true water story (10 million copies in print)

Here's a link to used copies on Amazon

Oh, and by the way, the farmers in the valley have been squandering their water for decades while simultaneously destroying the ground w salt deposits from irrigation water instead of being stewards of their land through water management. Our government has sold them subsidized water so that conservation and water management is an anathema. We get what we deserve.

Tue, 05/22/2012 - 22:13 | 2453717 Desert Irish
Desert Irish's picture

Maybe Europe's Black Swan will be disguised as a Greek general saving his country from certain ruin......glad someone finally used the word "depression"

Tue, 05/22/2012 - 22:17 | 2453722 El Oregonian
El Oregonian's picture


Tue, 05/22/2012 - 22:17 | 2453723 midgetrannyporn
midgetrannyporn's picture

some good old fashioned tranny music for the collapse:

Tue, 05/22/2012 - 22:36 | 2453766 ITrustMyGut
ITrustMyGut's picture

irreverance is my salvation!

Tue, 05/22/2012 - 22:21 | 2453733 I am a Man I am...
I am a Man I am Forty's picture

whenever this keynesian nonsense finally collapses the keynesians are going to blame the failure on not throwing enough money at it

Tue, 05/22/2012 - 22:30 | 2453747 Tom Green Swedish
Tom Green Swedish's picture

As for the 1 percenters. Henry Ford although amassing a fortune of 188 billion dollars had a fortune Three Times as large as Bill Gates and Warren Buffett, he also believed in paying people what they worth and more. There was no corner cutting cheap Chinese parts or making money off of money.  It was making money off a good product and hard work.  He created the city of Detroit, which now with his dream and idealism is symbolically decaying.  The problem now with the 1 percent is they believe the oppositem pay people less for your own gain.  There is nothing wrong with someone who has amasses a large fortune and deserves it, as long as it is not at the expense of others.

Wed, 05/23/2012 - 00:02 | 2453915 Tirpitz
Tirpitz's picture

There is nothing wrong with someone who has amasses a large fortune and deserves it, as long as it is not at the expense of others.

So where would that fortune come from, if others wouldn't (have to) work for it? By printing the money, Zimbabwe style?

Wed, 05/23/2012 - 08:22 | 2454349 Lebensphilosoph
Lebensphilosoph's picture

And what would they be working at if a Henry Ford hadn't taken the initiative and risk of starting the Ford Motor Company to sell his innovations? Peddling their wares on Camden market between smoking marijuana and pontificating on the scribblings of Adorno and Derrida with fellow unemployed humanities graduates?

Tue, 05/22/2012 - 22:42 | 2453783 Cabreado
Cabreado's picture

The attention on Greece is a farce, a distraction, a diversion.

Get the slime out of Greece -- the politicians playing games in concert with their overlords --and the good people of Greece will survive...

quite nicely even, as when spirit-destroying scum leave the picture, it creates a vacuum of a kind that not only Greece,

but the World is ready, willing and able to fill.


Tue, 05/22/2012 - 22:44 | 2453785 hairball48
hairball48's picture

"There are no clear winners from a Greek exit unless you are long confusion, turmoil and uncertainty"

I've been long Greek donkey carts for over a year.

Tue, 05/22/2012 - 22:46 | 2453787 AC_Doctor
AC_Doctor's picture

Watch Senor Dimon parachute into Argentina and hide out like a Nazi war criminal when JPM loses 400 billion when Greece exits the Euro and then blows up on 70 trillion in derivitives that is doesn't have the money to make good on.

Tue, 05/22/2012 - 22:58 | 2453808 MGA_1
MGA_1's picture

Meh... don't know.  I think they're gonna print a lot of money to keep Europe from diving so we may very well see decent economic conditions for a bit.  No real inflation yet.

Tue, 05/22/2012 - 23:08 | 2453827 Dr. Gonzo
Dr. Gonzo's picture

Facebook down 20% tomorrow. 15% Thursday. Then only 10% Friday. Then Tuesday another 20%. Wednesday probably only 10%. Then every day after probably just a 5% loss each day till it's in the low single digits 6 months from now. 

Tue, 05/22/2012 - 23:36 | 2453858 jomama
jomama's picture

how long until failbook gets bailed out?

Wed, 05/23/2012 - 00:17 | 2453938 TN Jed
TN Jed's picture

I heard they were mining bitcoins at the farmville but mafia wars have kept production down.

Wed, 05/23/2012 - 00:46 | 2453980 dwayne elizando
dwayne elizando's picture

CIA will buy them outright. Don't worry.

Tue, 05/22/2012 - 23:18 | 2453831 BeetleBailey
BeetleBailey's picture

"Incredibly, the polls show that 80% of Greek citizens want to stay in. The problem is that they also want more bailout money with fewer stipulations."

Gee...that sounds like America's populace. Nearly half the bozos in this country want Obama to stay, because he promises more free money with fewer stipulations. (But a SHITLOAD of regulations that the same populace is too stupid to realize).

4 more years of this turd, and we might as well change the title of the country to Douchemerica.

(I'm not saying Romney is's just the lesser of two weevils)

Tue, 05/22/2012 - 23:40 | 2453869 NemoDeNovo
NemoDeNovo's picture

DO NOT VOTE!!!!!!  Voting for the "Lesser" of the two Evils is Still voting for EVIL, PERIOD!!!

Follow George Carlins advice........


WE have to Crash this system ourselves and NON - Participation is the only way IMHO, sooner this bitch collapses the sonner we can begin to build something better, just sayin


Wed, 05/23/2012 - 03:41 | 2454141 Satan
Satan's picture

A non vote is a vote for the eventual winner...

" every democracy gets the government they deserve"

I would suggest greater public political engagement is the answer...

Wed, 05/23/2012 - 06:50 | 2454248 TheFuture_MrGittes
TheFuture_MrGittes's picture

Any vote is a vote for the eventual winner, and legitimates the system. Refusal to participate at least hints at your dissatisfaction.

Tue, 05/22/2012 - 23:45 | 2453881 monopoly
monopoly's picture

And have a nice day. Yikes. What a post.

Tue, 05/22/2012 - 23:56 | 2453899 knukles
knukles's picture

Ya'll know what?
Nobody's paying' any attention to Asia.

Tue, 05/22/2012 - 23:56 | 2453900 q99x2
q99x2's picture

I listened to Alex Jones today and it is such a relief to finally hear some good news.

Tue, 05/22/2012 - 23:57 | 2453903 Tirpitz
Tirpitz's picture

the polls show that 80% of Greek citizens want to stay in. The problem is that they also want more bailout money...

Maybe the Greek wish to finally see any of those 'bailout' monies. Which so far went straight to the international banks.

There are no clear winners from a Greek exit...

... besides the Greek people themselves. Go, Greek, go the way Iceland recovered.

Wed, 05/23/2012 - 03:50 | 2454149 Satan
Satan's picture

Why do people keep using the Iceland example?

A small highly educated, technologically advanced, socially conscious,corruption free nation that briefly lost the plot and took immediate and drastic action to turn things around ...vs...GREECE.

Wed, 05/23/2012 - 00:47 | 2453970 adr
adr's picture

On CNBC they still have a banner for:

Facebook: The Social Offering

As if Facebook's IPO was a gift to mankind. Maybe this will finaly break the back of the idea that the stockmarket, not hard work, creates wealth. Fuck, we have to get back to small groups of people producing and consuming only what they need.

If a city wants to experiment with social and economic liberalism, let them. Once everyone starves to death or is killed as the city falls apart, it leaves good land for the responsible to use.

Tying the welfare of all citizens to this central planned farce is absolute insantiy. The underground aquifers are running dry because we decided to turn deserts into lush equity generating developments, that all went south. Vegas needs to shrink to 1/10th its size. Fucking Arizona should just be bulldozed. $75k homes going to $550k from 2002-2006.

Neoliberalism, Neoconservatism, Keynesism, doesn't matter what you call it. It is all the same. The concentration of wealth and power into the fewest hands possible, while destroying the capability for the masses to survive on their own. The absolute elimination of personal responsibility.

This experiment dreamed up around the turn of the 20th century, and thrust into place over the past 40 years, has in fact destroyed the world. Pain, starvation, and mass disorder will come very soon. The quest to monetize every aspect of life gave us zombie banks, Mosanto, empty rivers leading to Nestle bottling plants, food as fuel, $100 oil, and every other commodity 500% higher than its true market price. Not to mention it gave us the social engineering nightmare of welfare, paying deadbeats to pump out babies for votes. Sending the population skyrocketing far past sustainability.

We don't need The Market. It serves no real purpose other than to satisfy the ultimate wet dream. Riches without work. Yeah well what would the planet look like if everyone was rich but nobody produced anything?

Wed, 05/23/2012 - 00:50 | 2453986 slewie the pi-rat
slewie the pi-rat's picture

a big nudist camp?

Wed, 05/23/2012 - 01:59 | 2453978 JOYFUL
JOYFUL's picture article titled

"On Growing Tensions, Spreading Global Downturn"....yabba yabba..a tsumani of verbiage without so much as a mention of Iran...or the small but hyper-aggressive ME sandbox bully plotting it's demise?!?!

On the eve of what will likely prove to be the last 'diplomatic' confrontration between the ZATO lackeys of the cabbalist conjurers and the chosen victim of their planned vivisection, prior to all out war -Facebook/Greece???  Blogospheric funhouse distractions, while 'global stability'\lifeasweknewit gets ready to slip off the tarmac, big time.

I hate to say it, but is this the best ZH can do?

It's clear the tenor of reportage has changed in the last 90 days mightily. It used to be possible to onestop shop for up to the minute news on everything a person needed to know...right here...

an now...this recycled day-old fishwrapping? How far we have fallen!

Who got to who, and what was the leverage used?  Now that's a story I'd like to read!!!!!!!

[suggestion box]

Wed, 05/23/2012 - 03:23 | 2454129 Non Passaran
Non Passaran's picture

How about you just go away and never come back?

Wed, 05/23/2012 - 04:02 | 2454154 JOYFUL
JOYFUL's picture

I already 'went away,' brainiac, and humbly share my thoughts here, from time to time, on life outside o the Euromerikan prison zone...sorry if they aren't yur cup of tea ... but don't choke on yur own bile!~

how bout yu try 'going away', from Femaville, and report back to us how yu gitin on, cabron !?!?

oops/// ...looks like yu mighta left that a little too late Chester!~

Wed, 05/23/2012 - 02:15 | 2454027 Bastiat009
Bastiat009's picture

Greeks are selling their gold. Just kidding ... they are transfering their euros to Germany while the banks are selling gold, the problem is that there is no buyer.

Wed, 05/23/2012 - 02:20 | 2454083 Bansters-in-my-...
Bansters-in-my- feces's picture

Just for the record,Gold is NOT is "Gold".

Wed, 05/23/2012 - 03:09 | 2454115 Lore
Lore's picture

"the ECB, the IMF, banks and a swath of other foreign creditors would suffer deep losses."

So be it. Get out, get out, get out while the getting is good. The EU is Shawshank, and Greece is forced to crawl through the sewer on its way out.

The future for Europe is so ugly. Greeks might well end up thanking Goldman for creating the situation that allowed them to extricate themselves before the rest.

Wed, 05/23/2012 - 03:28 | 2454135 Byte Me
Byte Me's picture

 All the more so since the Maastricht Treaty contained no provisions on any exit — there are no ground rules!

Afaik Lisbon DOES make provision at least as far as EU exit goes. But no-one seriously talks about Greece leaving the Union, they just confuse it with leaving the common currency.

Who cares? 80% of Greeks want to stay €-denominated, of course they do. They probably still think that pensions from age 53 can continue as well and that someone else will pay for it.

If they want to stay, then they get their finances in order AND have a depression. Alternatively, return to the Drachma, default selectively or entilrely (since you'll have to) and enjoy the internal recovery as NO-ONE lends to you.

Next time you join an ecobloc -- DON'T CHEAT.

Wed, 05/23/2012 - 06:28 | 2454231 writingsonthewall
writingsonthewall's picture

Tell that to Goldman Sachs who worked with the Government to deceive the EU so the Greeks could gain entry.


So what if the Greek people work all their lives and expect a pension - if they didn't have to work in shitty pointless offices they would have grown crops and had children to support them - a 'traditional pension'.


...but no - you fucked up capitalists wanted this shitty system which divides labour - de-skills the population in order to buy some fat shit CEO a new cigar.


It's not the Greeks fault you think "Capital Kidnap" and "monopoly power" are acceptable moral standings on which to base a society.


Who are the REAL thieves? The Greeks - or the Capitalists who have exploited the situation to the point of collapse.

Wed, 05/23/2012 - 07:47 | 2454298 Oldwood
Oldwood's picture

Every life form on the planet seeks to exploit the weaknesses of its competitor. Maybe instead of dreaming up a way to protect the weak and simple minded we should focus on raising the intelligence or at the very least the education of humans to be able to recogonize when they are being duped. Simple math skills could go a long way towards that goal. 2+2 does not equal 22. A world without risk and nobody has to work. What could go wrong?

Wed, 05/23/2012 - 05:40 | 2454201 ebworthen
ebworthen's picture

Green shoots!

Mustard seeds!

(wait...where is Jon Corzine again?...and how is Farcebook doing?...)

Never-mind!  Just my cynical parenthetical alter-ego...ignore that wet's party time!

1982 all over again!

(*cough*  Don't you mean 1934?)

Wed, 05/23/2012 - 06:35 | 2454235 RazvanM
RazvanM's picture

So, let see if I understand:

- Greece entered EURO zone thanks to GS-enhanced GDP readings

- EU komisars, that are long gone from view now, closed their eyes and started giving credit money through the banking system

- The heads of these banks, that are long gone from view now, were happy to provide and to cash the attached bonuses

- The greek politicians and the greek people were happy because of the windfall, growt formula and investment moni (highways, tunnels, real-estate building)

- All the world spended some quality time in Greece - beaches, cities, all around, enhanced with the credit money

- Global crises, credit pay-back, finger-pointing at the despicable greeks (wtf?)


- Why there was no investigation into the fraud that was perpetrated by rogue greek govt members with the help of GS economic experts - and was silently accepted by rogue EU kommisars and rogue bank officials, all experts in finance and the legal systems?

- Is there any connection between that fraud and the powerful US communication campaign against EU that is happening since a few years now?

- The debts that are put on Greece are truly greek debts or, because of repeated frauds, are just some numbers that must be purged altogether because the greek people were not in a position to reject the debt?

- The $ printing in US affects the whole world and puts instability in the whole system - so it is normal that US officials have the right to run 10% yearly deficits and force the whole world use it's counterfeit currency under the threat of military force use? See here, here, here, here and here.... (please insert links to the many documented places in the world where US started wars, revolutions etc. in the last 60 years)

- Government of California suspended pays on its debt a few years back, issuing new IOUs, runs worst deficit every year, but it has a stelar credit rating from the US rating agencies - is California in better financial shape than Greece, or Spain?

- When the US credit rating was downgraded last year, the US government quickly started an investigation against the credit rating agency - were there any such investigations started because of too high ratings for some junk bond issuers? Where there any investigations started at the downgrade of credit ratings for other countries than America?

- Who is held responsible for this disaster?

Wed, 05/23/2012 - 06:59 | 2454252 slackrabbit
slackrabbit's picture

"There are no clear winners from a Greek exit unless you are long confusion, turmoil and uncertainty."


No i'm long, stupidiy, greed, corruption, ignorance and indolence....should be quite a payout

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