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Guest Post: The Euro Fiasco Suicide Formula (EFSF)

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Sun, 11/13/2011 - 14:13 | 1873813 achmachat
achmachat's picture

no wonder the piigs are angry! they're covered in euro poop.

Sun, 11/13/2011 - 15:16 | 1873915 donsluck
donsluck's picture

It is well known that the Euro is the preferred currency of the illegal drug marketers, due to the high value of it's 400 Euro note. Here's an idea, the Euro zone legalizes opiates, based upon the alcohol model, and becomes the de-facto opiate currency, much like the US dollar/oil structure. Similar to the world's addiction to oil, the Euro/opiate relationship slowly, over time, becomes more and more entrenched, rescuing the entire zone!

Am I brilliant or what?

Sun, 11/13/2011 - 15:41 | 1873963 Hobbleknee
Hobbleknee's picture

Why would they switch currencies when the US military already protects opium production in Afghanistan, provides safe import and has legalized money laundering as long as the deposits come from abroad?

Sun, 11/13/2011 - 19:31 | 1874266 DaBernank
DaBernank's picture

That would be the 500 Euro note...

Mon, 11/14/2011 - 00:22 | 1874669 TheMerryPrankster
TheMerryPrankster's picture

575 and thats my final offer.

Sun, 11/13/2011 - 14:17 | 1873820 sampo
sampo's picture

The Euro Fiasco Suicide Formula (EFSF)

Designed by JPM. Nice way to stick save the dollar?

Sun, 11/13/2011 - 14:18 | 1873822 Pretorian
Pretorian's picture

I bet the farm that eur /usd will move 100 pips north. Thats why Morgan Stanley in beggining had 15 empoyess now they are over 50 000.

Sun, 11/13/2011 - 19:32 | 1874271 DaBernank
DaBernank's picture

Once Greece officially defaults, a surge in EUR/USD

Mon, 11/14/2011 - 00:25 | 1874671 TheMerryPrankster
TheMerryPrankster's picture

why do they call them greek sandwhiches euros?

Sun, 11/13/2011 - 14:18 | 1873823 Desert Irish
Desert Irish's picture

Go long popcorn....

Sun, 11/13/2011 - 14:24 | 1873831 Landrew
Landrew's picture

This convoluted mess looks familiar to me? From equity to housing, all bubbles.

Sun, 11/13/2011 - 14:26 | 1873833 anonnn
anonnn's picture

But ask yourself, "Who are the real winners of the apparent fiasco?"

Sun, 11/13/2011 - 14:27 | 1873834 Mark123
Mark123's picture

The real wealth in Europe owns land, corporations and gold.  They could give a rats ass about the Euro, except to ensure they can profit from its demise.


I'll bet they are also focused on confiscating China's new-found wealth.  Don't want those pesky orientals getting too cocky.

Sun, 11/13/2011 - 15:40 | 1873959 LawsofPhysics
LawsofPhysics's picture

Yes, and China is going for it.  China is the new blonde at the mall and she is on a shopping spree.

Sun, 11/13/2011 - 14:32 | 1873839 BigJim
BigJim's picture

Ultimately, it'll be the French and German taxpayers who will be bailing out their banks when the PIIGS default... so shouldn't the bird pyramid be inverted? And why is the UK in there at all?

Sun, 11/13/2011 - 17:27 | 1874124 earleflorida
earleflorida's picture

guilt by association 

Sun, 11/13/2011 - 18:11 | 1874179 TJ00
TJ00's picture

Well the EIB seem to be buying ESFS bonds and the EIB is funded by all 27 EU countries not just the Eurozone that includes Britain, SAS to storm them in 3... 2...

Sun, 11/13/2011 - 19:45 | 1874287 BigJim
BigJim's picture

Jesus. Yet another financial TLA to learn about:


Sun, 11/13/2011 - 19:57 | 1874303 ncdirtdigger
ncdirtdigger's picture

Because they are waist deep in Irish bonds.

Mon, 11/14/2011 - 00:26 | 1874677 TheMerryPrankster
TheMerryPrankster's picture

For a minut I thought you typed waist deep in Irish Blondes,

Sun, 11/13/2011 - 14:33 | 1873840 domains-are-har...
domains-are-hard-assets's picture

Time is running out for moving into assets that can sustain the next phase of the downturn/collapse. Look for assets that have:

- No counterparty risk: You must own the asset -- not via a synthetic or proxy
- Low carrying costs
- Transferable and/or instantly assignable in the event of sale
- Can be securely and anonymously held but with 24/7 direct access to the asset

I was blown away to learn this week that even Celente got whacked by the MF Global BK.   Like most people, Celente had no idea that Lind-Waldock was clearing through MF. Unbelievable.  

PMs, Weapons, non-perishable barter goods are well known. Personally, I like intangible assets (patents, trademarks, domain names).  

Sun, 11/13/2011 - 20:32 | 1874351 equity_momo
equity_momo's picture

Patents? Tms's , domains? What makes you think the rule of law will extend to those when the rule of law is clearly raping every other part of the paper ponzi? You would be as delusional as B9K9 in thinking investing in certain paper (which patents are) will save you during this phase shift UNLESS you are in "the club"
Stock certs? Bonds? Frns? Patents? ALL paper will burn .

Its distressing to read so many ZH posters understand 99% of whats going on and what is going to happen and then their cognitive disonance kicks in and they think they can outsmart the paper illusion - as a serf you will NEVER outsmart the paper game through paper. You said it yourself , even celente got burnt. Youre quite right with the other suggestions. The only other survival tool is to run a business or own a skill that is necessary. Not the desk jockeying most rely on.

Mon, 11/14/2011 - 00:25 | 1874672 domains-are-har...
domains-are-hard-assets's picture

@Equity - What makes you think that the TPTB don't value the rule of law?  It sounds like you are anticipating a fascist outcome where the gains are privatized and the losses are socialized.  Well, in a fascist scenario it is private enterprise that ends up owning everything. TPTB don't need to steal property. They can simply buy it. ZIRP is a license to do exactly that.  

Specific to domains, it is worth noting that a consortium comprised of KKR, TCV and Silverlake Partners just bought a controlling stake in registrar behemoth GoDaddy in a deal that value GoDaddy at $2.5 billion.  Domains are the raw land of the Internet.  The internet economy is growing a lot faster than the offline economy. Domains are an ownable bet on the future growth of the Internet.

Specific to patents, Intellectual Ventures (among others) have been methodically buying up patents.  There are a number of companies that are copying this model in the patent arena, as well as smaller ones that are rolling up TMs.  

It may be fashionable in certain circles to envision Max Max scenario where the rule of law goes out the window.  However, I think the odds of that coming to pass are slim to none though I am sure there will be pockets of chaos, urban blight and failed democracies.  Yes, I agree that paper backed by nothing will burn.  However, intellectual property is paper that is backed by an asset!!!! That's the point.

I humbly suggest to not underestimate the power of infinite fiat to be used to acquire strategically useful assets. Intangible assets can be strategically useful assets particular when aggregated.  Anyone who does not see the writing on the wall is not paying attention.

Mon, 11/14/2011 - 00:30 | 1874684 TheMerryPrankster
TheMerryPrankster's picture

GoDaddy is not the only Domain Registrar.


Investing in the internet by investing in Godaddy is like investing in Sears by buying a parking space at the mall.

Sun, 11/13/2011 - 14:34 | 1873843 doggings
doggings's picture

I like mine better, Everso Feckin' Stupid Feckers

Sun, 11/13/2011 - 14:40 | 1873854 oogs66
oogs66's picture

and yet markets keep going higher...

Mon, 11/14/2011 - 00:31 | 1874685 TheMerryPrankster
TheMerryPrankster's picture

Helium in their shorts.

Sun, 11/13/2011 - 14:46 | 1873859 DutchR
DutchR's picture

Glad we voted NO

O wait....


Sun, 11/13/2011 - 14:58 | 1873872 Atomizer
Atomizer's picture

European History Timeline 




1707 - Act of Union, Scotland and England become one country. Death of Aurangzeb leads to the disintegration of the Mughal Empire




Finance and Financiers in European history

Sun, 11/13/2011 - 14:57 | 1873874 RoiBoi
RoiBoi's picture

"To entice investors formerly burnt in PIIGS bonds to repeat their mistake, the SPV would issue “partial protection certificates” (PPC). Those PPC’s are in fact credit default swaps, but since politicians have blamed the latter for the consequences of their own actions they had to come up with a different name."


I had not laughed yet this morning.  I slowly realized how funny that last sentence was and went back and read it with a John Cleese accent combined with a Bill Hicks angry deadpan stare…

I laughed my ass off.  Thank you.

What continues to amaze me is how much all of this puts me in a mood reminiscent of when I am viewing Dr. Strangelove.

That completely campy and accurately absurd parody of our collective reality

We already know the ending…..get it ready WilliamBanzai7…..BenniBoi reprising Slim Pickens….

Mon, 11/14/2011 - 00:42 | 1874711 TheMerryPrankster
TheMerryPrankster's picture

Except instead of the bernank riding to the ground straddling an atomic bomb and waving a cowboy hat, he'll be in a helicopter filled with water,and you can see the goldfish swimming by his face as the helicopter windmills to the ground with bent primary rotors and a skid full of Fedreserve notes burning in flames attached to the landing runners on the bottom of the helicopter.

Underwater ben they called him after that. 

Somebody call China we need 10,000 Ben Bernanke Jack in the Boxes, when he pops out he's clutching cash and wearing a button that sez "Ask me 4 a  0% Loan!!" Choice of clown suit or bankers suit, and  music is either "hold that tiger' or "light my fire" (this one even smells like burning currency)

Maybe the remake should be entitled "Chairman Strangelove" or How I learned to love the Federal Reserve.


Mon, 11/14/2011 - 07:50 | 1875068 Element
Element's picture

Have no fear, I hear Ben can catch an SA-16 Igla MANPAD with his butt crack ... ... and then can return fire!

He'll not go down so easy, ... this is his finest hour ... yeehaw!

Sun, 11/13/2011 - 15:03 | 1873882 Atomizer
Atomizer's picture
1999 Euro Coin Sets

Belgium, Finland, France, Netherlands and Spain are all issuing official Euro mint coin sets dated 1999. We have full information about these sets on the individual page for each country:-

Availability & Prices:

Description Available* Price £ Price $ Price € Belgium 1999 Sold Out £17.50 $26.50 €28.50 Finland 1999 Sold Out £24.95 $37.50 €41.75 France 1999 Sold Out £17.95 $26.95 €29.95 Netherlands 1999 Now £17.95 $26.95 €29.95 Spain 1999 Now £14.95 $22.50 €24.50


Availability* = Dates shown in this column are the most recent release dates advised to us by the mints or their distributors. If the date shown pre-dates the current date, this does not mean the item is in stock. Where items are in stock they are clearly marked as "In Stock", "Now" or both.

TBA = To Be Announced. To reserve future issues, please see our Euro Set Reservations page


Mon, 11/14/2011 - 00:47 | 1874719 TheMerryPrankster
TheMerryPrankster's picture

I left a set of these in my car on the dashboard, while I ran into the IRS office to grab some forms and when i came back out somebody had broken into my car and left 5 more sets on my dash.

How do i get rid of these damn things, the garbage man keeps throwing them back into my driveway.

Sun, 11/13/2011 - 15:09 | 1873885 anonnn
anonnn's picture

A  fiasco for the rich and powerful movers and shakers? Like losing a lollipop?

Sun, 11/13/2011 - 15:15 | 1873914 slewie the pi-rat
slewie the pi-rat's picture

play on time?

can we get a wagnerian break, here?

Sun, 11/13/2011 - 15:18 | 1873919 Ted K
Ted K's picture

How about the Eurozone situation is always the same, Every Fucking Stupid Fucking time????

Sun, 11/13/2011 - 15:19 | 1873925 anonnn
anonnn's picture

Charles Dickens in Little Dorrit: A person who can't pay, guarantees that another person who can't pay, can pay. ...

Sun, 11/13/2011 - 15:48 | 1873976 JPM Hater001
JPM Hater001's picture

This is extremely hopeful for Europe.  And by that I mean...the amount of hope they are investing in the solution is only seconded by it's stupidity.

Crash on!

Sun, 11/13/2011 - 16:07 | 1874007 CoyoteBlue
CoyoteBlue's picture

So, I shouldn't apply for a job with the EFSF? I would have been a crackerjack salesman. 

Mon, 11/14/2011 - 00:49 | 1874720 TheMerryPrankster
TheMerryPrankster's picture

A prize in every box.

Sun, 11/13/2011 - 16:24 | 1874036 Snakeeyes
Snakeeyes's picture

We have our own suicide formula is the US. Endless spending programs and debt with no end to sight. Even Martin Feldstein of Harvard, usually a reasonable chap, now wants taxpayers to couch up $350 billion for underwater households. Or maybe Marty Feldman wrote the NY Times article!

Feldstein Plan for Stopping the Drop in Home Values: Write Down Average of $31,818 Principal Per Underwater Home – Cost to Taxpayers $350 Billion With Questionable Outcomes



Sun, 11/13/2011 - 16:43 | 1874067 sgt_doom
sgt_doom's picture

Snakeeyes sounds more like she/he/it is suffering from SNAKE BITE!!

"Even Martin Feldstein of Harvard, usually a reasonable chap..."

Oh, you must be referring to that "legendary"** Marty Feldstein, the clown who was a director at HCA during their colossal medicare/medicaid fraud, leading to the largest out-of-court settlement to the US government in damages?

And the very same Martin Feldstein, of legend, who was a director at Eli Lilly when they were given the largest criminal penalty in US history for illegal marketing of a damaging drug?

And the one and only Martin Feldstein of Harvard, who was a director at AIG's Financial Products group during the largest insurance swindle in US history (selling $460 billion of CDSes, with no capital on hand to back them up)???

What's that you say?  Martin Feldstein reasonable?  Or simply that he wants to resuscitate  the housing bubble for the Wall Streeters, his paymasters?

Sun, 11/13/2011 - 16:52 | 1874074 JenkinsLane
JenkinsLane's picture

Latest on Germany's behind the scenes planning:



Sun, 11/13/2011 - 17:25 | 1874121 lotsoffun
lotsoffun's picture

that would be fun - but i won't go there.  sounds like this guy marty feldstein gets around.  i hope he's rich!


Sat, 11/19/2011 - 04:45 | 1874133 time123
time123's picture


Nice post. I enjoyed reading it.


In my opinion, all the recent negativity in the press regarding the European debt crisis has created a tremendous buying opportunity for US stocks. 


The Invetrics system just gave a long term "Buy" signal as of the close of 11/11/11 with a new DJIA target of 13,500! You heard it here first.





Sat, 11/19/2011 - 04:46 | 1893715 time123
time123's picture

Sorry, that was a typo. I meant to say 15,500 which is about 27.6% higher!




Mon, 11/28/2011 - 10:45 | 1920781 time123
time123's picture

Looks like we are moving higher today! The Invetrics long term Buy signal of 11/11/11 will likely get confirmed!



Sun, 11/13/2011 - 17:50 | 1874150 Börjesson
Börjesson's picture

Interesting how Germany features on both the first and the third rung of the bird ladder. The lower bird presumably represents the German people, while the smug one on top is the German elite...

Mon, 11/14/2011 - 02:08 | 1874841 Phil Free
Phil Free's picture

Good eye .. I didn't see DE on the 3rd rung also ..

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