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As Italy Hints Of Subordination, Did Rome Just Request A "Semi" Bailout?
That Italy is now at most days away from technical insolvency is not news: after all we reported on just this a week ago, citing not some fringe lunatics but Bloomberg economist David Powell who said that "Italy would probably be forced into receiving a bailout if it were to face another two weeks like the last seven days." Specifically, "The country would violate the IMF’s definition of solvency if its average cost of debt were to surpass 680 basis points. The fund defines debt as sustainable if the debt-to-GDP ratio starts to decline before the end of the forecast horizon. A rise to that level would push the ratio up to about 131 percent in 2016 and marginally higher the following year, according to Bloomberg Brief estimates." This was a week ago... so one more week left, and things have not only not gotten better, they have gotten much worse.
Which is why we were not too surprised to read the following news from Reuters: "Italy will push this week at a meeting of euro zone finance ministers for a semi-automatic mechanism involving the European Central Bank or the permanent bailout fund ESM to reduce spreads of euro zone bonds over Germany, Italy's European Affairs Minister Enzo Moavero said on Monday."
Having done this for a while, we can tell Italy what the bond market, having perused the above sentence, just read: "semi-bailout." Because if Italy is implicitly demanding assistance from the ECB, and the Spanish bailout vehicle, the ESM, then things are about to hit the country with the €1.25 trillion in debt. It is all downhill from there. Oh, and here is what the bond market reads when they see ESM: "not so semi-subordination." For Reference: see the aftermath of the Spanish bailout. Because if in Europe the idiotic plan to avoid a bank run is to announce preparations for one, followed by furious back pedaling, it is only logical (and we use the term loosely) that an attempt to avert a bailout will be pursued by requesting a semi version. Instead, that action always and only leads to one thing: waving the sellers right in.
From Reuters:
Speaking about the automatic mechanism proposal, Moavero said: "The ECB may do it, but in a framework which would respect its autonomy. The mechanisms would make automatic something that the ECB has so far done autonomously. The European Stability Mechanism (ESM) may also do that, although it cannot act as a bank."
Asked if the ECB should re-start its Securities Market Programme (SMP) of buying bonds on the market, which was originally justified as needed to ensure that markets reflected its monetary policy decisions, Moavero said:
"We do not ask them, because we respect the autonomy of the ECB, but obviously any move to reduce spreads is welcome."
Moavero also said that he doubted if the euro zone's permanent bailout fund, the ESM, would be operational by early July as planned because of the ratification schedule in euro zone countries.
And count your lucky stars that is the case, because the second a class priming, bondholder subordinating mechanism comes into play, forget about comparisons to Uganda - Italy will be Spain right there and then.
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Bail the Fuck out Bitchezz!!!
I love the smell of bazookas in the morning.
Party on, bitchez ... Bunga Bunga!
And who bails out the bailout providers?
We do.
Eeuuuuhhhh... Excuse me....
The bank just called and they said your 3 trillion dollar cheque bounced...
Is there a problem we should know about?
“semi-bailout”
Hmm.. shouldn’t this though, fall under the category “penetration, no matter how slight is sufficient to complete the offense”?
No, it's not a semi-bailout, it's a "semi-automatic [bailout] mechanism".
JHFC, it's a semi-automatic assault-bailout! It's far too powerful! Does it come with a high-capacity reloading device that lets the bailouts resume quickly when the CBs have run out of bailout ammunition?
semi-fucked
WTF is a Simi bail-out Bawhahahaha,
Is it like being Simi prego?
Im a simi vergin. hahha
I recall it was fucked when Berlusconi was at the helm. So semi-fucked seems an improvement?
http://demonocracy.info/infographics/eu/debt_piigs/debt_piigs.html
http://www.zerohedge.com/news/european-bailout-inforgraphic-presenting-t...
you mean "semi-coloned"
semi-fucked = getting a semi up the poop shute
-*-
Better ask while there's still money left in the bank, thats the ECB that is. Time to front-run the bailout gravy train before the other bankrupt countries (Portugal, Spain, Greece, Ireland) get to more of it first.
Let's do the math:
Eurozone = 17 countries...
1. Ireland
2. Portugal
3. Greece
4. Cyprus
5. Spain
6. France (150 billion counts as a bailout)
7. Italy
10 LITTLE PIGGIED LEFT!!!
I wonder when the remaining once will start to discuss if they will still be able to bailout te rest... Maybe at 8 to 9? Or 9 pigs to 8 crickets?
Maybe the ne5 won't be a bankrupt country but a smart country that says "Fuck this shit, I'm out!!!!"
The Euro is dead! Long live the Euro!
right. if necessary we'll have an EUR2. those things have sequels, like QE
looooooong way to go, yet, looooooooong way yet
The Euro is dead! Long live the Mark, Peso, Lira, Franc....
Peso Paseta
Last I heard, Mexico was not in the EU!
do the euro math....IMHO, ECB can handle up to and including Spain....with Italy the jig is up.
I thought Belgium already was on the list
WE ARE THE LIST!!! :)
Get a government first.
As a Belgian, he's cheating.
But at least he didn't use bold lettering this time. I guess we should be grateful.
There's a tax that covers it. It's called inflation.
So the Euro is simi flat lined?
Still stockpiling olive oil.
Three varieties (my inventory liquidation "sale" begins after the supply shortages are firmly in place):
1. Greek (limited demand - really only by Greeks in the USA)
2. Spanish (not as common in the Americas but a good quality product, nonetheless)
3. Italian (most widely used in the USA and easiest to sell)
Go long Parmesan cheese and Balsamic vinegar: both require lot's of aging and storage/prduction facilities (no cows!) were hammered in the recent earthquakes near Modena
Disposable Medical devices too
The bailouts continue, the QE to infinity continues. They are all broke.
http://jamesturkblog.blogspot.ca/
Italy+Spain=GREECE
Or is it (Italy + Spain) * Portgual / (Greece * France) = Germany 2013 ?
Uhmmm ... no way. Every third grader knows you can't divide by zero ...
All of you folks on this site do realize that as much as you bash on Facebook, the ZH up and down arrow serves the same function for you to gain as many green arrows as "likes"! I know you all come back to the page to see how many green arrows you acculumate, just like people do on facebook! So perhaps you all suffer from the same narcissistic delusional disease as those folks on facebook, whereby the tally of green arrows or "likes" one gets, is directly proportional to your levels of self confidence and self importance!
Mark... What has that go to do with a lukewarm semi bailout?
Did you just take a psych class at your local community college?
I think most people use the arrows to agree or disagree with a post rather than reply. Keeps the comments section from getting all cluttered up.
Although, on second thought...
What the hell, I gave you a green.
:)
bashing narcissism will get him nowhere, here!
he may have been semi-cloned; i think someone is using his avatar with a muslim name or something... L0L!!!
semi-cloning is the ultimate compliment
When I first read it I saw it as a rant. Then I really thought about it.
Yep, I like it when I make a good argument and see the green arrows. Or a funny joke.
No different than facebook (I think as I do not partake in that).
So, he does have a pretty solid point. And I think that when you hit too close to home you get downvoted.
CD taught me to really look at things differently. So this place is much more valuable than FB IMHO on that reason alone.
Nevermind the breakneck pace of articles and analysis by Tyler and the contributors.
But I think he (or she) is spot on when it comes to what those arrows represent.
pods
Its just the subject matter thats different. FB case mindless narsasitic drivel,,ZH Case in most cases the important issues of the day that the masses on FB are ignoring.
Oh I agree. At least here things that are being discussed are things that actually matter outside the power plant if you will. (in Matrix lingo)
My better half has a FB account and I laugh when she shows me posts of people I know.
Seems it is a place to pretend that your life rocks to all of your pretend friends and they are supposed to pretend that they care.
pods
Amazing how immature most of the country is. I can see the kids but even some of them get bored...mine use to be on it up to 1/2 hour or more a day a year or two ago, now once or twice a week for 10 minutes. Your right about how everybody's life is so rockin. No matter where they go or what thet do it was "great". Grown ups wasting so much time ,,stupid games,, meanwhile "Rome is burning"
How much did you lose again in the IPO?
They're actually the equivalent of saying "hear, hear" -- a term that represents agreement with an ARGUMENT -- or receiving two black balls when Poker Club members didn't see value in a candidate's mind.
Feedback is critical in the battle of ideas, but not so much when it comes to judging the latest pic from a drunken frat party.
Congratulations!
You are the winner of my one and only junk.
Enjoy.
If they are stupid enough to continue to hold there debt (both Spain and Itally) after seeing what happened and continue to happen in Greece, then they deserve what they get. The dominoes is falling as it was fortold.
semi-credible
I like how they talk of all these rules that allow/prevent certain actions, but only within certain guidelines, as if they actually meant anything.
Gotta keep the facade as shiny as possible, for as long as possible, while they steal everything that's left back behind the scenes.
Dominos Bitchez! They're not just for kids anymore. Gee........who could have forseen this coming?
A truck driver. Three years ago. Still being mis-reported. No talk of the various party structures throughout the entirety of Europe and how
this makes nearly all of these events not only inevitable but highly predictable as well.
If things go the way I think they will, the people who own real semis (trucks) and know how to drive them will be golden, because they will be the ones delivering and distributing food. CDL, its the new MBA.
Lets just have a quote-
"(A unified) 'Europe' is the result of plans. It is, in fact, a classic utopian project, a monument to the vanity of intellectuals, a programme whose inevitable destiny is failure: only the scale of the final damage done is in doubt." -- Margaret Thatcher,
The whole southern europe is in trouble. It's sad but the volatility on the financial markets is great for cfd trading.
If the whole of southern Europe's in trouble, it goes without saying the so is nortern Europe.
This ain't gonna end well.
"The country would violate the IMF’s definition of solvency if its average cost of debt were to surpass 680 basis points.
Time to change the definition!! All will be well like a miracle!!
Just the Tip
It will hurt a little.
It only hurts the first time.
"Say, you love me"
Do you want me to use a condo... er, contagion firewall?
http://www.youtube.com/watch?v=qS-7zTzrSAA
Please STOP this lunacy and break up the euro-prison!
well if germany concedes (as per tyler there will be DIP loans given out like candy) and the piigs become 21 century colonies, your request will go unanswered. and the way things look, the citizens of these countries would rather get scraps (after their banks bellies are filled) than delve into the unknown.............no revolutions occurring....rather the people voting for exactly what the globalists want.......the beginnings of orwellian society..............
im just trying to figure out who will provide the u.s. a DIP loan???..........
Why, Benron and his infinite balance sheet, of course.
The magic man with the magic goose.
Potemkin village's as far as the Rhine can see, but, for north... the 'plimsoll mark' has gone amiss - as queen merkles' euro-lock vessel delights in a drachma defeat. Nein... naught even a Spaniard galleon to be seen, other than a buoyant mast half submerged, listing too an fro, as the ballast gives up remnants of a weighted Trojan horse that even the great Rhine was unable to support!
thankyou tyler
You Americans just do not get it. We Europeans are just making this shit up as we go, just for fun. It is called Peekaboo Bailout. Now there is ONE...now there is NONE...now there is a definitely MAYBE!...now there will be...NONE!...now there was ONE! Too late..you lose!
Feel like shorting eur-usd? Go for it!
Wait, wait! There's one coming for sure... no, definitely not.
"semi-automatic mechanism involving the European Central Bank or the permanent bailout fund ESM"
semi-automatic bailout, with subordination, from a "mechanism" (ESM) that has not yet been ratified.
this has really gone full retard.
Slaughter, your message is lost in the noise, as shouting in bold is the hallmark of a blowhard.
What else needs to happen for Au to go $2K +? I'm starting to believe that this crazyness is a new normal and that it will go on and on forever.
Of course it will take much longer than most of us here thought.
you will not need to wait so much.... breaking point incoming, wait til greece stop paying the debt ;)
http://www.goldmoney.com/video/martenson-presentation.html Interesting presentation on debt curve and exponential growth. What kind of paradigm are we in? http://en.wikipedia.org/wiki/Wu_Xing
Can't wait for the Merkel "NEIN" to this semi-bailout.
That's the perfect solution... 9 Bailouts!!!
If not 9 then how about a little sechs?
Yeah, well my 'semi' says "NEIN" to Merkel
QUE UP,
& don't forget Spain's big Fuck You today:
MADRID (AP) — Spain will not immediately implement the International Monetary Fund's latest recommendations, which include cutting government workers' wages further, because they are nonbinding advice, the prime minister said Saturday.
Pure 100% unadulterated bullshit 24/7
The New Normal...
Comic genious, thank you.
Dear lord please give me the ability to laugh my ass off at the train- wreck we find ourselves in.
Keystone Cops rule the world - and every one...a virgin, I swear.
Keynestone Cops rule the...
There, fixed it for you.
tyler, you are confused:
The fund defines debt as sustainable if the debt-to-GDP ratio starts to decline before the end of the forecast horizon. A rise to that level would push the ratio up to about 131 percent in 2016 and marginally higher the following year, according to Bloomberg Brief estimates....
that 2016 estimate is the u.s. debt/gdp:
http://www.usdebtclock.org/current-rates.html
Because if Italy is implicitly demanding assistance from the ECB, and the Spanish bailout vehicle, the ESM, then things are about to hit the country with the €1.25 trillion in debt. It is all downhill from there.
Now you got my attention! :) Bring. it. on!
i would imagine that is exactly what rome smelled!
this has to proceed fast and according to the choreographed script which timmah and cuckooChristy devised in madrid together a few weeks back and lateraled to marioECB whom (with a handful of less-luninaires) the EU entrusted with developing a plan essentially [in slewinomics], to feed the wealth of the EU into the zombie ECB in new ways which, if politically acceptable to everyone whom the banksters have by the short curlies, will allow a new automonomous bankster state and the bat-signal is up!
actually that is my attempt at humor...
i don't know what they are gonna do but it will be better than this and it will be free b/c they can just indebt everybody with a ponzi birth-death model like our laborDept uses
that is a heluva tool to leave aside when designing capital ponzies!
ok! i'll try to be serious:
debt = money @ 2 Tril EUR for openers; call, fold, or run; we'll handle the raises, too...
...at least that is what i would do...
by wednesday with a patented goldilocksCrisisTM this will seem reasonable to all except maybe... well angela comes to mind and maybe the SNB might want to drop the peg at least for a few daze...
germany is smart: they already have (t)herr finiMini_herrSchuable ready to take over the new control panel for the turbo printers, too!
germany should counter for 20 Tril EUR and they get 18 Tril of them up front: call, fold, or run... banksterBiCheZ!
so, is it safe to say that the idea of Italy bailing out Spain via its 22% resposibility for the ESM is now officialy declared a farce? i would love to see a flow chart of all EUR debt and guarantees - must look like an Escher staircase.
Clarke and Dawe did a wonderful bit on the problems of Europe bailing out Europe.
My favorite is still "the front fell off" though.
pods
Escher. Up arrow for this picture.
Will this last long? Italy borrow 20 billion at 7 % to give to the Spanish at 3%; Nigel Farage Exposing New Giant Euro Banking Scam 13 June 2012
I hope to acquire a nice island in Mediterranian as ever increasing human greed and stupidity breeds my hatred for human race :(
The island of Lesbos might be a good choice.
Not if you are a guy (or straight female).
Bring lots of money.
The Greeks are running out of people to borrow from.
banks and Nikkei
http://humblestudent777.blogspot.com/
Update on banks and Nikkei
Just wondering why EURUSD and Eurostocks retreats badly while US stocks and DAX rising...perhaps French selling because of total socialist government?
Everyone emptied their European bank accounts and transfered to US stocks...
Wow, Merkel's 'NEIN!' just blew out the windows of my Amsterdam appartment...
No, that was just a football crashing in...better luck NEXT TIME...losseeeerrrrs! ZERO, NADA, ZILCH POINTS. Go practise with Eskimos or something meanwhile :)
http://capital3x.com/think-tank/charts-and-setups-18-june-2012/ charts and setups. Capital3x scores big post Greece election as EURJPY shorts from 100.65 hit targets at 99.2 and short AUDJPY from 80.25 hits targets 79.4
"semi-automatic mechanism"
Har har! A bazooka is no longer enough! We also need semi-automatics. What's next, a machine gun nest? Artillery? ICBM as the sovereign debt market shits itself?
Interesting. And Merkel just said "No MERCY!" to Greece at the G20 meeting in Cabo.
http://confoundedinterest.wordpress.com/2012/06/18/bailout-fizzies-spanish-italian-yields-jump-spain-10s-over-7/
Will she show the same mercy to Italy?
Mit dem Angriff Steiners wird das alles in Ordnung kommen
Ask the Vatican. We all know they have it the crooked fucks.
Qualitative easing 2!!!! (after Ireland asking for a renegotiation of their bailout terms)
Rome is fallen ...is fallen. http://www.spiegel.de/international/europe/pope-benedict-focuses-on-legacy-while-ignoring-vatican-power-struggle-a-838830.html
http://jordantimes.com/palestinians-concerned-over-vatican-talks-with-israel
Get ready for Petrus Romanus Jerusalem prophecy and the prophetic POTUS U.N.Nobel Peace Prize to be fulfilled ...2012-13ish.
http://www.wnd.com/2012/06/obama-fulfills-isaiah-910-prophecy-again/
http://www.newswithviews.com/Horn/thomas182.htm
http://www.israelnationalnews.com/News/News.aspx/156940#.T9-DQLVI-a1
http://www.globalpost.com/dispatch/news/regions/middle-east/iran/120612/iran-attack-israel-us-election-nuclear-proliferation
http://www.thetruthseeker.co.uk/?p=23391
http://www.timesofisrael.com/russia-to-send-ships-and-marines-to-syria/
http://www.israelnationalnews.com/News/News.aspx/156927#.T9-DNrVI-a0
http://www.rt.com/news/line/2012-06-18/#id32834
http://www.youtube.com/watch?v=0GRR_n_yQGA
EURO BOND WANTED BACKED BY GOLD
Jesus won't accept a bailout.