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IMF Agrees To Shove Head Deep In Sand, Will Lower Eurobank Capital Needs
When all else fails, change the rules, and shove your head even deeper in the sand:
- IMF has agreed to substantially lower initially estimate for European bank sector capital needs according to Eurozone sources
- Private sector expected to meet bank recapitalisation needs, according to Eurozone sources
- Eurozone has no plans for public support for banks over and above money in bailouts for Greece, Ireland and Portugal according to Eurozone sources
- "We have discussed this with the IMF in detail and the IMF has agreed that this initial figure will be revised downwards and the revision will be quite substantial," a euro zone official participating in the talks said.
Of course, this won't change anything about the fact that Eurobanks are insolvent, that the ECB is undercapitalized, that the Greek bailout is falling apart. But what matters is that the IMF, or the world's former bailout, and now completely irrelevant, organization courtesy of China, will allow banks to proceed far further undercapitalized than prudent, until it has to bail out not one, but all, and at the same time. As a reminder, the IMF expected a need of $200 billion, which the eurocrats say is goign to be far lower... Even as Goldman's report, first released on Zero Hedge, said that the full amount will be 5 times bigger, or $1 trillion. As much as Goldman is blasted left and right, they at least know how to use that HP12C. Which is far more than we can say about the idiots from Luxembourg.
More from Reuters:
Euro zone governments have no plans to inject any further capital into banks over and above the money earmarked for the financial sector in the emergency loan programmes to Greece, Ireland and Portugal, sources said.
Euro zone officials discussed the issue of banking sector recapitalisation on Monday and Tuesday as part of the preparations for the informal meeting of European Union finance ministers in Poland on Sept. 16.
The issue has returned to the table after the IMF called for additional capital to boost the European banking sector, estimating the extra need at 200 billion euros in a draft version of an unpublished report leaked to the press.
"We have discussed this with the IMF in detail and the IMF has agreed that this initial figure will be revised downwards and the revision will be quite substantial," a euro zone official participating in the talks said.
"There is a need for additional capital in the European banking system but the magnitude of the required recapitalisation is nowhere near the initial number of the IMF," the official said.
Euro zone officials estimate banks have in total already raised some 50 billion euros in additional capital in the run up to the European bank stress tests in July and now had between six and nine months to further increase it where necessary.
"In all likelihood it will be private capital that will be raised. For public money, we have no plans of a large scale or any banking recapitalisation programme over and above the contingency reserve for the financial sector in the three programmes that we are currently running," the official said.
The capital needs could also be solved through mergers and acquisitions. Only at the end of the six to nine months, if the identified banks will have failed to have sufficient capital, would governments step in with public money, a second euro zone official said.
The euro zone has earmarked 10 billion euros to help banks in Greece, 35 billion for Ireland and 12 billion for Portugal under the euro zone bailout programmes.
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move along... nothing to see here...
http://www.youtube.com/watch?v=5NNOrp_83RU
Calling Bill Black!
http://thespiritoftruth.blogspot.com/2010/01/william-black-for-treasury-secretary.html
Note....when this same stunt was pulled by U.S. regulators in 2009, it marked the bottom:
http://market-ticker.org/akcs-www?post=193641
I just hope that Professor Bernanke and our congress have the courage to introduce similar measures here in the US. Our banks are in a critical position with large highly leveraged balance sheets, a doomer public that refuses to spend, hawkish Federal Reserve officials and a fiscally impotent congress. These banks form a large part of our economy in the US and therefore their success is CRITICAL for our success as a nation. The LAST thing we need is another Lehman event, although I'm sure there are many sadomasochistic libertarians on this board who would be delighted by the idea. Dr Paul Krugman is the one of the few economists that I still have any respect for. By investing in US equities, I trusted in our federal reserve's dovish rhetoric and our congress' pledge to create jobs with fiscal stimulus, but it appears they are betraying me.
What r u doing on ZH, Turbo Timmy?
Just out of curiousity, when will the 'let us defraud the system of every penny possible or else' crap end?
The system will end when the doomer public stops spending altogether and starts saving. This will cause a credit collapse, and will punish my portfolio. If it hadn't been for the recent surge in arrogant libertarian thought, the experts would have been able to engineer a recovery while we continued to buy consumer goods and invest in stocks. We could be living in a consumer utopia if it weren't for these nasty depressing libertarians.
You really do need a /sarc switch. You sound too fukking believable as a Krug hugger.
Actually he is right.
If the msm and blogosphere decided to work together and always say positive things about the economy the doofus public would keep spending, happy in their ignorance, and we might be almost through all this, particularly if 30 percent inflation could have ocurred with no one noticing.
Now that's funny.
He's the master.
Does anyone else think that MDB is some kind of robot posting algo?
Nope, waaay too much creativity on display to be an android!
A lot of people seem to keep spouting this line. It must be pretty easy to do, unless of course it is not. Let me think about this for a second. Done. Real jobs are created out of real need. Create real need, and there will be real jobs. A war creates a need not to be killed, but it is money thrown down a rat hole. Hmmmmmm how to create real need and real jobs. If someone made a personal teleporter, then people could use them to visit family, friends, and Toledo (Spain or Ohio). There we go, I am sure Apple is working on one right now. I know, how about an anti-gravity device? Then people could just fly anywhere. Even better congress could just outlaw gravity.
Creating jobs can not be done in a vacuum.
i would usually like to give newcomers some orientation time to get used to ZH and real dose of REALITY
but, you my friend, you are as hopless a shit as Timithy as a taxgiver.. what are you effin smoking?
you can hhide from reality but you can not hide from its consequences.
your effin portfolio, either shove it or liquidate it, who gives a fuck?
LOL, "doomer public", you're killing me Hamy...
MDB - Your humor is droll, and as dry and biting as a Sahara sandstorm. I'm loving the sandblasting.
"By investing in US equities, I trusted in our federal reserve's dovish rhetoric and our congress' pledge to create jobs with fiscal stimulus, but it appears they are betraying me."
...and it took you how long to figure this out?
Take your unicorn lolipop dreams to uranus.
its humor you guys, lighten up for petes sake
funny shit there..."and will punish my portfolio" lol
It has to be hamy!
Maybe Johnny Bravo? Johnny probably got tired of digging for $5 silver... Now he is back here digging for negs... and finding plenty.
It has the style of Hamy.
Thats funny man, but "a doomer public that refuses to spend"...they are spending, just not very confidently.
Wow. Just fucking wow.
It's just another 7.5% of the European GDP. And with about 4% inflation this year, every man, woman and child in the eurozone is down 10.000 euro on average this year.
Without the other bailouts of course....
horsechit
i guess the 'Bat wing' formation was telling us something
http://www.hedgeaccording.ly/2011/09/bat-wing-formation-in-s-today-spx.html
Sigh, now I feel much better ;p
Funny.
One believes that when in doubt go with Goldmans estimate:1 TRILLION.
I also expect in addition to the short ban, that at some point the EU banks will cease having to mark to market their sovereign debt exposure.
Expect all the status quo to pull all tricks out of their hat.
http://twitter.com/#!/dougkass
That was not the gnome i heard it from.
UGH.
Tyler addresses Doug's tweet in a post below..
Yes.
As usual Tyler is correct. Don't tell him i said that.
the bernank himself, is an overgrown garden gnome! isn't that so?
Change in rules = say it enough times and it will be true.
THIS ISNT WORKING YOU MORONS! IMF, CBs and gubbmints are just blowing it right and left and making it worse. DEAL WITH THE PROBLEMS ALREADY. It is debt saturation. Not falsified asset values.
Morons? They are criminals. They deal with problems alright... by CREATING them.
Don't you get it? It's about enslavement, not functional government.
Yep, working right into dr. evil's plan of currency destruction.
Too much debt load on the last currency, create some chaos so to introduce the global fiat piece of shit to buy all the gold back.
The top .1 percent gets the spoils. The top 3 percent keeps a little and the rest of us 97 percent get ramholed so hard we will be killing each other, over a bread crumb.
You dont have to fight over breadcrumbs. Just let us fuck your daughters and you can have a whole slice.
Not me, I must be in the 3% because I have gold and several cases of ravioli
CClarity... The IMF will create enough SDRs to cover all the bad bets in the world... and, those on Mars too, if necessary...
Central Banks collect all bad paper and pass it on to IMF for strategic drawing rights...
strategic drawing right = just another piece of fucking paper...
surely this will instill confidence in mkts everywhere?
Truly incredible how these idiots are still in charge of this mess and making sure the people pay even more yet again and again and again for their continued mistakes of same old same old
No, what is incredible is that you call these people idiots, when you should recognize them as tools for criminal geniuses, who are successful at profiting from the same scam over and over again because you have the expectation that criminals will work in your interest.
N/A, you are correct in many assumptions, but remember they may in finanancial survival mode and thus more dangerous. The once master plan has failed and they have switched gears.
Congress is scared like a moonbat on steriods. They have free rein. Caculate the next move. I'm looking at a market ramp scenerio. But only if they are sold off enuff.
Fucking amazing times.
So, seems that Trichet showed Lagarde her place in the fraudulent french food chain. He was storming earlier that he disagrees with IMF abt the capital needs and said he's CONfident IMF will change their estimate. And so they changed it. Just like that. "Let me change this cell in my excel and POOF it's gone!"
The planet Politicus is so far from the planet earth and planet reality that this shit show deserves the miserable end which it's begging.
Which one worked for Goldman Sachs?
Thank you for playing, goodnight, and good luck.
Triche and the ECB are not political beings - they are "independent". Time to get really worried now that EU politicians are blessing the ECB and other central banks with political powers - time to go up to the front boys; you are done pulling strings from the shadows!
Hell, Triche may even run for the finance minister of the whole EU position when such role is made available in the future...
Makes a nice change from up their asses.
Does anyone think any of this matters anymore to a US market so disconnected from reality that it can have this many triple digit flip days in less than a months time?
The Fed induced buying almost put two of the exchanges green today and oil is back at $85. Only a market manipulated by a few select people can keep doing this over and over again.
Lines have been drawn in the sand and the Dow will not be allowed to close below 11k unless the HFT runners say so. said early this morning that they would drive the market green by the end of the day.
The same stocks like Lulu were down almost 3% in the morning and ended up 2%. If I had the money and the means it would be great to be a day trader. Wait 30 minutes from the market open and buy your favorite 100 p/e stock and ten sell it 2 minutes before the close and book your 5% profit for doing nothing.
Yeah but the JPM:Silver spread widened today to .792980792.
That's kind of what I thought. "This only matters if you believe fiat money is worth something." Heh.
yes but as of right now wads of paper can still buy you just about anything. in order to buy something with gold you need to transfer it into paper first outside a few select places.
if I made a bet and won $1 million in cash bills or $1 million in gold I would take the cash. Until the world economy is based on something other than fiat currency, gold is worthless. Now when the world rejects paper money then gold will be worth a lot if the future currency is based on it.
We don't have a problem with using paper money, we have a problem with printing too much of it. Value is determined by whatever someone is willing to give you in exchange. We don't know what that will be if the dollar vanishes. Who knows an ounce of gold might be enough to pay for a car, or it might be enough to rent a car for a day.
Nomatter what you can be assured that unless you are a member of the club whatever you carry will not be worth the same as a guy with a last name ending in stien.
Tyler,
Can you respond to the Doug Kass Tweet about mark-to-market being suspended in Europe? I thought that mark-to-market was already suspended over there.
Kass as usual is confused.
From May 2010
Looks like you were right about the CHF, someone/thing is buying up Swiss Francs with FRNs(?) in an attempt to break the peg -- a new record in futility!
and CD wants to forgive !!!!
He is just saying that so that the FBI / CIA / NSA will pass him by.. when the threat assesment check list is passed around! LOL!!
Really? Thru M&Aa they can improve capital to sufficiency? By what magic stroke do the hideous assets on their balance sheets disappear in the merger? Oh, the international global all earth solar system FDIC? Where do they send the non-performing loans, excess bank buildings, and other toxins? To the non-planet Pluto?
what are the Rothschilds doing ?
selling wine
Just wait until one of these banks implodes . . . .
Bear Stearns Denies Liquidity Rumors
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ah_wFlHpWUAo
Shortly thereafter, Bear sold for $2 per share to Jamie Dimon.
If only HP had used Reverse Flemish, rather than Reverse Polish, all might still be well with Eurocracy.
SPY traded down on one of the lighter volume days, less than 1/3 of the huge drop we had last month, and could not take out the previous two lows.
Recorded another -1301 TICK day, we now have 4 consecutve days of -1300 "fear ticks".
Put/call screaming again for the 5 trading day in a row. 21-day MA of the Total Put/Call ratio now the highest in 2 years.
FWIW...
Oh, don't even get me started on the moonshots in: SBUX, WFM, LOW, JWN, COH, etc. all closing green today.
And then there is AMZN, LULU, PCLN, CMG and the rest of the Heatmap Specials, which are hardly down for the year.
I mean really, how many freaking burritos can you eat???
In the late 60's/early 70's there were the Nifty Fifty. Some of them (e.g. DEC, Kodak, Polaroid) haven't done so well, but most of them are still around. Overall as companies go they weren't too bad. However, the P/E ratios of 50 that many of them commanded seem a bit excessive in retrospect.
robo--your 20/20 hindsight vision is unparalleled.....
Speaking of which, time for an early-morning snack!
What was the life-cycle of the stress tests? How much time and money was wasted on these efforts and how hilarious is it that they have no intention of bailing out anyone, other, than the pig? Like they'll have any money left.
looks like another compression opportunity in the ES vs 2's10's30's.....
Meanwhile, US banks' exposure to sovereign eurotrash is (ahem)..."manageable" as per the Bernank.
All is well...
http://www.youtube.com/watch?v=zDAmPIq29ro
"Meanwhile, US banks' exposure to sovereign eurotrash is (ahem)..."manageable" as per the Bernank."
Hey! Of course it's managable... All Benny need do is ship another 1.2 trillion Benny Bucks to Europe and all will be well, (if a fellow banker can't help out with a swap line now and then, well)... Till that is stolen, er, paid out as salaries and bonuses... wash rinse repeat.
Having popcorn, watching the great slow motion train wreck...
I wish these guys would buy out VISA and just extend more credit to everyone, lower rates, and reduce collateral / co-signing demands as borrowers become more and more irresponsible.
As Moneyswirth says... Wow! Just wow!
Loan ratios must only apply to Austrians.
12% gain on Vista Gold today means they are going to be dropping $100 bills from B-52's pretty soon.
Yet another sign that there is no solution to this man-made ponzi. It has run it's course, it has done the job it was designed to do, transfer yet more wealth from the many to the few.
The only remaining step is the for the many to be wiped out completely now, both physically and/or financially.
The only real terrorists on this planet, are governments.
The only real terrorists on this planet, are governments.
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Maybe but it must not be forgotten that in this US driven world, there are autocratic governments and democratic governments, that is governments that derives their power from their citizenry. The latter would have no power otherwise.
So the sentence should read
"The only real terrorists on this planet, are governments and people who empower those governments."
Such is the US world order.
I could give the ECB a tutorial on that calculator if need be....
http://www.youtube.com/watch?v=4DVAsmrwdtQ&feature=related
But what matters is that the IMF……. until it has to bail out not one, but all, and at the same time.
Somewhere, somehow this is going to fall onto the American sheeple. Now that the price of chocolate has stabalized they may not notice.
Looks like the IMF owes Iceland an apology. How poetic if Iceland became a safe haven. The EU is has become Iceland with the IMF's blessings.
Looks like they are acknowledging all the sovereign bonds (and their derivatives) hoarded by the central banks are unraveling and will eventually be marked to 'worthless'. If the bonds are the underpinnings of the entire monetary system, then it's toast.
Extra bonus: if the IMF still dreamed of being the NWO institute for a global currency after a global meltdown, no mas. Gold bitchez.
Sssshhh, PLEASE.
Some of us are attempting to forge a haven of sanity within Nordic climes - they have much less history of Monarchs, and the long winter months mean interesting discussions. Not to mention the elves.
Trust me: some of us are going Lord of the Rings on your ass, we're getting the elves involved to kick IMFordor's ass.+9000 Vikings always helps.
http://www.letmewatchthis.ch/watch-2713259-Trolljegeren << Warning - this link is illegal in most countries, it is produced as an example of how evil trolls are. Evil link. Don't watch it. >>
Are you sure the sand is where the IMF is shoving it's head?
"In all likelihood it will be private capital that will be raised. For public money, we have no plans of a large scale or any banking recapitalisation programme over and above the contingency reserve for the financial sector in the three programmes that we are currently running," the official said.
Who is the stupid private that would put up this kind of money for this purpose? Give me a break....
Banks destroyed industry, now it's revenge time. I'm thinking GOOG or APPL could buy most of the big banks and run them better, firing all the useless bankers in the process.
September 10, 2011 Rome:
http://www.entendance.com/forums/viewtopic.php?f=6&t=784&st=0&sk=t&sd=a&start=100#p19045
September 17, 2011 New York, Madrid, London, Paris, Frankfurt, Toronto, Tokyo, Sydney...:
http://www.entendance.com/forums/viewtopic.php?f=6&t=801&p=19165#p19165
The first casualty of International Banking is Truth
"Eurobanks are insolvent, that the ECB is undercapitalized": BS...
this is nothing more than a "Dog and Pony Show" that is being used to fleece the working people of more of thier hard earned labor.
this is just the next stop in / on the global robbery play book / map.
Soon ALL of Europe will have been Robbed Blind and then America will be the last stop.
After all the others have given in publicly, America will have watched the surrender in heavy rotation on CNN / CNBC / Fox.. and the pill will be that much easier to swallow!
This is nothing more than theatre for the ignorant.
the fact that one country at a time falls.. so that there is no cross sinergy between protests??
has completely escaped the Cable News Crowd..
it is natural for the banks of Europe.. who all share the same fiat notes.. to crash one after another.. as to no add to, too much stress to the sytem! LOL!!
No one wants to know the truth..
they just want to continue comfortably in their own little worlds.. blissfully ignorant of the Global Pain that they are surrounded by! LOL!!
The first step in any problem resolution is denial that the problem exists.
is it me or are the wheels falling off faster and faster?
Totally predictable. When money has no intrinsic value, changing the rules in the middle of the game should be expected. I mean, how can anyone expect honesty, when the basic game itself (fiat) is so totally depraved? Anyone up for a game of 666?
Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources, Eurozone sources,
Nice rumor mill you've got going here TD.
Blame Reuters, knucklehead.
....speaking of Reuters, nearly 40% of Europeans suffer from mental illness. That means about 60% are deemed to be perfectly rational. One group or the other must be Eurozone sources....or some combination of the two.
http://www.reuters.com/article/2011/09/04/us-europe-mental-illness-idUSTRE7832JJ20110904
Who funds the IMF?
Who are the IMF governors from the USA?
Governors from USA
Benny & Timmy (google search)
http://dailybail.com/home/chart-who-funds-the-imf.html
How exactly is a central bank with a fiat currency ever supposed to be undercapitalized? The ECB has infinite "capital", it just doesn't want to use it ... the ECB wants private losses to be socialized, not solve them with money printing. Central banks print money when there is no alternative, but they would much rather taxes save the private banks than them.
"IMF has agreed to substantially lower initially estimate for European bank sector capital needs according to Eurozone sources"
What are the implications? Does it gonna affect my markets??
To avoid risks I follow the forecasts of http://www.forecastfortomorrow.com/. Pretty satisfied. These guys are awesomly accurate.
"Mommy.... where does the IMF get the money from to loan to everyone?"
"I don't know dear, ask your father."
"Daddy, where does the IMF get the money from to loan to everyone?"
"Well they have money of course, darling. Now be quiet and get back to your homework."
Banksters running out of schemes, the details are becoming less relevant as well as who spouts them....
Bold prediction! You want one! Ready? Here it is. 5 years from xyz + time coordinate (now)
1) Gold standard (worldly)
2) To receive anti-monkeybutt peacockflu smallprick vaccine, insert forehead into the microchip implant machine and here's your bank-account-job-life-wife-?! any questions....
whoowhoohaahaa
'you will look up to the heavens and know there is law and order
V
when the money system evaporates - at least people will be able to use new government IOUs to buy food from YUM brands -
http://www.usatoday.com/money/industries/food/story/2011-09-05/More-rest...
the end of the beginning comes when the petro dollar is no longer useful to the idiots running the asylum, then the real change will be fully understood by all who need something to buy.
The Chinese, The Vatican, and the Rothschilds?
I really hope Germany ends this whole ponzi scheme tomorrow.
They are insolvent, and are trying to fake it until they can come up with something else next week.
George Carlin - They don't give a fu@k about you. His words ring truer today than 4 years ago. We miss you George.
http://lonerangersilver.wordpress.com/2011/08/02/george-carlin-they-dont...
the ability of the human mind to resist the intrusion of new information is infinite