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Jefferies Describes The Endgame: Europe Is Finished
The most scathing report describing in exquisite detail the coming financial apocalypse in Europe comes not from some fringe blogger or soundbite striving politician, but from perpetual bulge bracket wannabe, Jefferies and specifically its chief market strategist David Zervos. "The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country. That is going to require a US style socialization of each banking system - with many WAMUs, Wachovias, AIGs and IndyMacs along the way. The road map for Europe is still 2008 in the US, with the end game a country by country socialization of their commercial banks. The fact is that the Germans are NOT going to pay for pan European structure to recap French and Italian banks - even though it is probably a more cost effective solution for both the German banks and taxpayers....Expect a massive policy response in Europe and a move towards financial market nationlaization that will make the US experience look like a walk in the park. " Must read for anyone who wants a glimpse of the endgame. Oh, good luck China. You'll need it.
Full Report:
In most ways the excess borrowing by, and lending to, European sovereign nations was no different than it was to US sub prime households. In both cases loans were made to folks that never had the means to pay them back. And these loans were made in the first place because regulatory arbitrage allowed stealth leverage of the lending on the balance sheets of financial institutions for many years. This levered lending generated short term spikes in both bank profits and most importantly executive compensation - however, the days of excess spread collection and big commercial bank bonuses are now long gone. We are only left with the long term social costs associated with this malevolent behavior. While there are obvious similarities in the two debtors, there is one VERY important difference - that is concentration. What do I mean by that? Well specifically, there are only a handful of insolvent sovereign European borrowers, while there are millions of bankrupt subprime households. This has been THE key factor in understanding how the differing policy responses to the two debt crisis have evolved.
In the case of US mortgage borrowers, there was no easy way to construct a government bailout for millions of individual households - there was too much dispersion and heterogeneity. Instead the defaults ran quickly through the system in 2008 - forcing insolvency, deleveraging and eventually a systemic shutdown of the financial system. As the regulators FINALLY woke up to the gravity of the situation in October, they reacted with a wholesale socialization of the commercial banking system - TLGP wrapped bank debt and TARP injected equity capital. From then on it has been a long hard road to recovery, and the scars from this excessive lending are still firmly entrenched in both household and banking sector balance sheets. Even three years later, we are trying to construct some form of household debt service burden relief (ie refi.gov) in order to find a way to put the economy on a sustainable track to recovery. And of course Dodd-Frank and the FHFA are trying to make sure the money center commercial banks both pay for their past sins and are never allowed to sin this way again! More on that below, but first let's contrast this with the European debt crisis evolution.
In Europe, the subprime borrowers were sovereign nations. As the markets came to grips with this reality, countries were continuously shut out from the private sector capital markets. The regulators and politicians of course never fully understood the gravity of the situation and continuously fought market repricing through liquidity adds and then piecemeal bailouts. In many ways the US regulators dragged their feet as well, but they were forced into "getting it" when the uncontrolled default ripped the banks apart. Thus far the Europeans have been able to stave off default because there were only 3 borrowers to prop up - Portugal, Ireland and Greece. The Europeans were able to do something the Americans were not - that is "buy time" for their banking system. And why could they do this - because of the concentrated nature of the lending. In Europe, there were only 3 large subprime borrowers (at least so far), so it was easy to front them their unsustainable payments - for a while. But time is running out. Of couse, the lenders (ie the banks) have always been dead men walking!
At the moment, the European policy makers – after much market prodding - have finally come to grips with the gravity of their situation. And having seen the US bailout movie, they know all too well what happens when a default of this caliber rips through the financial system. The reason the EFSF was created in the first place was so that there could be some form of a European TARP when the piper finally had to be paid and the defaults were let loose. Certainly many had hoped the EFSF could be set up as a US style TARPing mechanism (like our friend Chrissy Lagarde suggests). The problem of course is that there are 17 Nancy Pelosis and 17 Hank Paulsons in the negotiation process. And while the Germans are likely to approve an expanded TARP like structure on 29-Sep, it increasingly looks like it may be too little too late. The departure of Stark, the German court ruling on future bailouts/Eurobonds, the statements by the German economy minister and the latest German political polls all suggest that Germany is NOT interested a full scale TARPing and TLPGing process across Europe. They somehow think they will be better off with each country going at it alone.
The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country. That is going to require a US style socialization of each banking system - with many WAMUs, Wachovias, AIGs and IndyMacs along the way. The road map for Europe is still 2008 in the US, with the end game a country by country socialization of their commercial banks. The fact is that the Germans are NOT going to pay for pan European structure to recap French and Italian banks - even though it is probably a more cost effective solution for both the German banks and taxpayers.
Where the losses WILL occur is at the ECB, where the Germans are on the hook for the largest percentage of the damage. And these will not just be SMP losses and portfolio losses. It will also be repo losses associated with failed NON-GERMAN banks. Of course in the PIG nations, the ability to create a TARP is a non-starter - they cannot raise any euro funding. The most likely scenario for these countries is full bank nationalization followed by exit and currency reintroduction. Bring on the Drachma TARP!! The losses to the remaining union members from repo and sovereign debt write downs at the ECB will be massive (this is likely the primary reason why Stark left). It will require significant increases in public sector debt and tax collection for remaining members. And for the Germans this will probably be a more costly path. Nonetheless, politics are the driver not economics. There is a reason why German CDS is 90bps and USA CDS is 50bps – Bunds are not a safe haven in this world – and there is no place in Europe that will be immune from this dislocation. Expect a massive policy response in Europe and a move towards financial market nationlaization that will make the US experience look like a walk in the park. Picking winners and losers will be VERY HARD but let’s look at a few weak spots –SocGen 12b in market cap (-70% this year) with assets of 1.13 trillion BNP 31b in market cap (-55% this year) with assets of 2 trillion Unicredito 13b in market cap (-70% this year) with assets of 1 trillion Intesa 14b in market cap (-70% this year) with assets of 700b Compare this with the USA where we have - JPM 125b in market cap with assets of 2.1 trillion BAC 70b in market cap with assets of 2.2 trillion
Importantly, France GDP is only 2 trillion and in bank balance sheets are some 400% of that number. The banks are dead men walking with massive leverage to both home country income as well as assets. The governments are about to take charge and Europe as a whole is about to embark on a sloppy financial market socialization process that has been held back for nearly 2 years by 3 bailouts. The weak links will not be able to raise enough Euros/wipe out enough private sector equity to get this done, so there will be EMU members that need to exit and use a reintroduced currency for this process. We put a Greek drachma on the front cover of our Global Fixed Income Monthly 20 months ago for a reason.
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Alright, so I'm a greenie newbie - how do I make $$ off this disaster?? Tired of getting fleeced by manipulated markets, so will become faithful ZeroH reader.
Go* long rice.
*get a 50 lb bag
No, get at least 500lb. Seal it up in mylarized plastic bags, about 35 lb per bag, with oxygen absorbers thrown in, then seal the plastic bag in a 5 gallon food bucket. Each bucket of rice will cost you about the equivalent of one ounce of silver. After SHTF, at some point you will probably be able to trade your white bucket of rice for 10 ounces of silver, and silver will be worth a lot more then.
Of course the food police will be after you, and during the food riots, you could be called a hoarder and get nailed up to the wall.
:o)
Or some starving gangs, a la The Road, will just take your food and gold and silver. Then rape your wife and shoot her and your kids in front of you while they laugh and throw all your buckets of rice into the bed of their technical.
I'm sorry if that sounds harsh, I really am. But what I find lacking in prepper scenarios is the mad dog viscousness that will be required to survive in a post-apocalyptic world. You talk like accountants.
http://www.youtube.com/watch?v=yid-CW-O9Qw
"viscousness" is always available, no accountants needed.
And, inull, I aint no accountant neither. So, you thought my description of the food police, and the food riots a bit tame, eh? Well, why don't you bring all your destruction tools, and you can stay at my house, where we might have enough food for a week or two. You can be the rabid dog in the yard.
ROTFLMAO
I love this site!!!
No disrespect. It's just your amortization strategy for rice and mylar and 5 gallon buckets seemed well thought out, carefully considered, highly theoretical, i.e., the kind of fungible commerce plan dreamed up by an accountant.
My thinking is that when the shit actually hits the fan, it will be somewhat akin Auntie's barter system.
Two men enter, one man leaves.
Um, not to mention, do you really have the fortitude to look starving people in the eye and demand that they pay you a pound of silver for your rice or they can just go off and die somewhere, preferably far enough away where the flies from their corpses will not annoy you?
I think that will be what is the biggest battle for most of you, the fact than when the time comes you will have to in effect kill others to survive. Might not be obvious now, but just wait till you have to make a decision that you know will result in their agonizing deaths. You can rationalize to yourself now that too fucking bad for them, they should have been like me, an ant rather than a grasshopper. All well and good, but if the horrible time never comes you will spend every waking moment of your life in resentment of the grasshopper, if it does come you will have to say to them I won and you must now die.
If it helps your conscience you can think of them as stupid and lazy, somehow less human than you are, or as the Nazis used to call them subhuman.
My point was that it takes more than prep to survive. It takes mindset. And will. You say the instinct is always available. I don't think so. I remember the first time I was confronted with the possibility of having to shoot another human being. The prospect made me sweaty and sick. This is a natural human reaction IMhO. Killing another person does not come easy, and it shouldn't.
Yeah, but a bunch of twenty somethings hang out at my house. And most of them have spent at least half of their waking hours playing those hunt and kill people games (or be killed) on big screen TV's with full stereo sound systems. They will not even have the slightest hesitation. Of course, they think when you get shot, you just start over at the game start point.
You need to get yourself one of them games. Get over that negative human reaction, that shit is just not gonna cut it. The military loves them games too, they used to have the same problem with new recruits. Not any more though.
LOL
That's somewhat old, explored territory for me. What you say, on the surface, sounds perfectly logical. Bands of violent, disenfranchised youths with no family unit to bond to, with a history of playing psychotic 1st person killer games 24x7...yes, this would be a logical choice for the Sociopath/Psychopath entrance exam. And I don't disagree with what you are saying. It certainly makes sense.
Yet, what we find (and MSM will back this up) is that the men and women who "man" these predator drone stations are experiencing serious psychiatric disorders. I don't think there is reason to elaborate and enumerate them here, nor is it necessary, however, suffice to say these "virtual weaponeers" suffer from some serious psychiatric disorders, namely, bipolar syndrome, depression, schizophrenia, sociopathy, and a host of subtler but no less severe mental illnesses like borderline personality disorder and hypervigilant narcissism.
Even though they are halfway around the world from the catastrophes they produce, these people nevertheless witness the results of their pulling the trigger. They see the body parts flying apart. They see the explosions. They see the remains of the villages they have destroyed.
And, even though it's through a video monitor they know it's real. And that they caused the carnage. They know it is NOT just a video game. It's real. People died yo.
Bands of violent, disenfranchised youths with no family unit to bond to,
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Mafias are a family story.
I was saying that most of you believe you can hoard up survival levels of goods to get through what we all pretty much know is coming, but the mere fact you have what it takes to survive when most do not means you will now be the new target, the new super rich, only instead of play money and toys what you will have would keep people and their kids alive if they get to it.
I am not saying it would come down to a road warrior world, if it did killing to defend yourself and your property, family, that would be not so hard. It is far more likely that there will be a lot of people coming to your doors begging for work in exchange for food as in the depression. You will have neighbors too proud to ask and too poor to pay who you can sell your extra food to but you know they can't pay. That good woman with three kids who lost her husband in Afghanistan last year, now with no government pension or aid she has nobody and nothing, would you turn her into a whore so she can feed her kids? Would you sell to the highest bidder so that she can never afford food and sickness, death will follow?
I am saying those that think they are going to get through the upcoming just fine because you bought silver or gold and laid in food and ammo and medical supplies, a generator for power, maybe even solar panels, seeds, water filtration, Mason jars, bulk commodities, in reality you are big softies at heart and you will not be able to abuse to the point of death other human beings, if you were you would not be here sharing, the real hardened survivalists are paranoid and secretive. They do not share, anything ever, here or anywhere.
iNull,
I believe you are making the mistake the violence is a skill as opposed to an instinct. We`re all really nasty chimps on the inside. I`m a harmless beta herb 99.9% of the time but I know there`s a viciousness inside of me that is scary to contemplate. I think slowly starving to death (or turning into said rapist/murderers) is a way bigger threat than other chimps.
DP
Hey, why all the vote downs? Where's the love?
Ok, gave you one virgin pity vote.
UUUhhhhh....this is Fight Club, not Love Club. Fuck dollars.
What about real dollars? silver dollars.
Stockpile soap. :oD
According to Stefan Zweig, one lucky Austrian lad back in the Austrian financial collapse after WW1 found a load of soap by the docks. Cue: the lad became wealthy beyond his dreams in the ensuing months as no-one could get hold of basic necessities, and people do like to be clean.
Sometimes its better to be silent, so nobody knows your an idiot
Don't know if serious.
Learn to contraction.
http://www.youtube.com/watch?v=Yr-cjxRiV_A
thats how I feel about it! LOL!!
-----------------------------------> I am the Best! http://www.youtube.com/watch?v=d9TnMUlIBKQ&list=FLbRZZAixeFXZfqszvKisEdQ&index=1
Go to Europe and Enjoy the Talent!
Euro Panda Bonds Built on 1,200% NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!! ?,???% Leverage.. because of continuing Global Bailouts? or a continuing of passing the Flame to China?
Why is the World STABILIZING CHINA's SHIT!! RenMinbi? IT IS GARBAGE!!
and you people PRETEND TO HAVE CLUE?
European ratios are much worse than I thought. This shit be gettin' real.
I trust Little Sarko is wearing brown pantalons to work each day. And Mom Merkel her rubber leiderhosen. The scheissemerde has hit the fan.
Look what happens when you let the real economy produce all our goods & let the banks produce all the money. Why not let the real economy produce the money as well? They're doing a much better job.
this is about moving the debt somewhere where the Sheep will FEEL! like they must pay it too!
is that one sentence to, too much?
...soc gen rating just got cut not sure if I got that right
saw flash news on bloomberg 01:22 est us
Here is a shocker, and another reason it might be coming apart, this article nearly ripped my face off, i just couldn’t believe the madness of it. Nationalism is back, with a vengeance...
http://www.thejournal.ie/germanys-eu-commissioner-wants-irish-flag-flown-at-half-mast-225071-Sep2011/
Great article. Here's one comment from below the article:
"On a lighter note about the war. This lad in Carrick in Donegal was burning rubbish in the back yard in the 80s, old paper, straw, cleanings from a shed. Two Germans stopped him, came in to his yard and complained about the smoke and ozone layers etc. He replied, 'Aye and wasn’t it a pity ye weren’t so vocal when Hitler was burning the jews.'"
This is the real Europe, the people are slowly awakening.
They should be flying them upside down, ours should be flown that way as well.
I'm not unpatriotic, an upside down flag signifies a country in distress...they and us are all in distress at this point.
It doesn’t matter if you fly a tricolour upside down, it still looks the same...and if you fly it back-to-front it becomes the flag of Cote d'Ivoire(west Africa). But I know what you’re saying.
That's kind of comical, they designed the flag to make it impossible to be in distress
Failure is not an option, until it happens
Yes, I see, a US style response because we all know how well that has worked out for America.
where r those rumours when u need one ... i need to short from higher ground ...come on reuters
Its always a eurobond push from these firms. Agenda? How about re-financing from within their own countries. There are plenty of options available yet no one wants to sacrifice. Why is it always the Germans or external country bailing out these places?
Me say war.
War! ...what gave it away? lol
EXcellent article! Thank you.
Too much reality Tyler; I can feel the little idjits piling into the long term treasurys as a safe haven. I'm going to have to drop my Short Bond position; And it's all your fault! Just joking; information is information; it's my fault my timing sucked.
Closed the Dec. Long bond at 140-18 at a loss. No position. First time in my life I ever did anything because of what I read on a jounalism site; the trouble with this goddam journalism site is they keep present you with facts unstead of just ranting; most inconvenient!
The German adage Ende des Schreckens statt Schrecken ohne Ende comes to mind. The fear of financial wipeout for the second time since 1948 is making Germany look like a disposable Republic to be discarded whenever politicians go off on another grandiose project leaving destruction behind them. The structure of the Euro has allowed huge transfers of wealth from Consumers to Exporters in Germany as exporters benefit from a soft currency as Germany did 1957-80 and German consumers pay inflated prices for imported food and on EU vacations to inflate the living standards of Italians, Greeks, Spaniards, Portuguese, French. The German worker has suffered huge real income losses with no benefit from his higher productivity as Government has confiscated much of his income and Euro price inflation has absorbed more again.
The fact that China has tariff-free access to EU markets with none of the social costs was warned against by Jimmy Goldsmith in his book "The Trap" and it has all come to pass. Next stop Capital Controls and Import Controls.
Other side of the coin is....without any export from Germany much higher uneployment in Germany.....your pick!
TPTB are practically screaming at us: Get The Fuck Outa The Way!
You don't got ALL your self-sufficiency and Survival Needs met? RFN???
Plan on watching the shit wave wash over you/yours and figure all will be okay?
Gonna be far from fucking okay...
This is the Big Takedown, and if you don't know what is coming, it will be your takedown...
It ain't a coinkydink that USA/UK is barraged with zombie and vampire culture. That shit is as much a signal to you as all the crazy shit going on in the markets since first flash-crash and algo trading price movements.
Wishing all my compadres the best of luck and God's Blessings!
Nothing that a few tree's and a printing press can't take care of.
Watcha worried about ?
.
A snail...crawling along a straightrazor...and surviving...that is my dream.
Dear Tyler,
Thank you ever so kindly for posting your article about NYSE short interest after the market closed today. I was thinking about closing out some of my reckless short positions after reading it. MOODY'S YOU DA MAN!!!
Secondly, next time I notice a blatant manipulation as happened yesterday around 2:35PM and today around 2:55PM accompanied by bullshit rumors, I will know to put on some additional reckless shorts.
Thirdly, bummer for Reggie that SocGen and CA but not BNP got the downgrade. You're still a pimp to me.
Yours,
El Gordo
I wouldn't count Reggie out yet.
And Noyer of the ECB says that French banks will have No Losses from exposure to Greek securities. No wonder Fair Market Value on the ECB controlled markets is 100...
lets get physical bitchez
Hi. First time commenter, long time reader.
It will all go down before years end imo.
What is your opinion based upon?
This article is a gem. Thanks zerohedge! No prettying up the news here -love it!
It's a real s&*#storm out there. Thanks to zerohedge there has been time to seek shelter.
Finnoz
This is Zero Hedge. s&*#storm is spelled SHITSTORM.
You're not on MSNBC anymore.
Spell check acknowledged. Never followed NBC but I guess most of the MSM aims at keeping the crowds calm rather than giving them true insight.
I'd like to clarify that it's not the bad news here that makes me happy. It's the priviledge of getting the news as it is, good or bad. If it's bad I'd like to know it's bad. If it's a shitstorm I appreciate knowing it's a shitstorm. At least we who read this site can draw our own conclusions after reading both MSM (if one can still be bothered) and sites like zh.
Le merde is hitting the fan.
I'm an oldman.....please stop this never ending foreplay, you're stimulating me to death!! My heart can't take it any more.
In said endgame, if Europe is Finished, the US is finished also.
As i, the rest of the world. But only in the light of industry/consumerism/technology, supplysidism.
I look forward to the post industrial world. Not sure how many people realize that we are living in the lap of Teutonic Linearity, their iron logic and their madness. It's time it went down and took this whole diseased industrial world down with it.
Natural, Organic Power...FTW!
ORI
How America got it's Juice
where EUROPE is concerned the USA is like the nosey neighbour...the curtains are really twitching these days ...the heads out on stalks half way down the street looking at europes washing line..meanwhile your own house is going up in flames and nobody is looking.
"No Màs"
September 14 2011
Chile pulls $4bn out of Ireland over 'poor credit rating'Ireland's funds industry looks set to be hit by a withdrawal of $4bn (€2.9bn) by emerging country Chile, which cites Ireland's poor credit rating as the main reason.
Chilean authorities signalled last October they were putting Ireland on a watchlist, but with Ireland moving down to junk bond status during the summer months, the Chileans are now expected to order the withdrawal -- with funds most likely going to Luxembourg...
http://www.independent.ie/business/irish/chile-pulls-4bn-out-of-ireland-...
I understand the theory of finance and investment, but Chile? WTF???
Can't do more for Chileans with their $4B by "investing" at home?
This is the PROBLEM. National Leadership is NOT Acting with their Countrymen's Best Interest at heart. Not like Chile is so overdeveloped they can't use the money to foster industry, commerce, infrastructure, or improvements that will generate Better Quality Of Life for their people?
All these fucking rats are looting their Nations and the rats at other governments are in collusion. Chileans were just lucky to have this "investment" happen when it did. NO WAY any bureaucrat could rationalize this one, but you bet your ass they tried...
Europe is not finished but hopefully the EU and euro are. News that are bad for EU are good for Europe.
Almost 3 years to the day since Lehman's ka-splat... and this is STILL the end of the beginning ...
Before you Americans "celebrate" to much.....just think for a second about the ramifications of a EU collapse....
To set you off in the right direction...here is some news from ONE French Bank....(there are 1000s of banks in EU)
"....
BNP aims to boost its common equity tier 1 capital ratio to 9 percent by the start of 2013 as it scales back U.S. dollar corporate- and investment-banking business.
..."
hint: USD assets
You are reading the crowd wrong. This crowd hates the smell of bull shit irrespective of national origins.
Like yours?
Savor it Tim. It is Tim isn't it.
It's a good thing there is still no inflation. In the UK:
Inflation On The Rise After Cost Of Food, Clothing And Energy Soarshttp://www.huffingtonpost.co.uk/2011/09/13/inflation-on-the-rise-aft_n_9...
And those of us in the UK know that those figures are pretty lowball. Stuff you dont need is cheaper (electrical gadgets etc) stuff you do need (energy, food & clothing) is way up. And yet the policy of encouraging currency weakness continues relentlessly, and therefore we will continue to suck in inflation.
Meanwhile, the public sector trade unions are getting ready for strikes and disruptions to `services`.
One in Four people in the UK work for the government in one way or another, excluding contractors and the like. This group does not understand that the country has not been able to afford their generous retirement plans for decades and that now benefits must be curbed.
When money seems to be so freely available to save Banks which have been reckless and poorly run, its easy to see why the public sector thinks there must be a way to save them from pain.
Moral hazard coming home to roost.
we've just lost cabin pressure....
please return your seatbacks to their full upright and locked position
BTW.....
"... a total of E75.529 deposited. The deposits were down sharply from the near E200 bn deposited Monday, with Tuesday the first of the new maintenance period.
..."
Quick tender by ECB mopped up a lot of "excess" liquidity Monday from earlier ECB Bond purchases....Mr Market "missread" that for "excessive" risk....
Yes, risk is there but panic a la 2008? Nop.
In the week ending 9 September 2011 the increase of EUR 1 million in gold and gold receivables (asset item 1) reflected the purchase of gold by one Eurosystem central bank.
The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 0.3 billion to EUR 176.9 billion on account of customer and portfolio transactions.
The holdings by the Eurosystem of marketable securities other than those held for monetary policy purposes (asset item 7.2) increased by EUR 2.3 billion to EUR 336.8 billion. Banknotes in circulation (liability item 1) increased by EUR 0.3 billion to EUR 853.2 billion. Liabilities to general government (liability item 5.1) increased by EUR 0.7 billion to EUR 45.6 billion.
Items related to monetary policy operationsThe Eurosystem’s net lending to credit institutions (asset item 5 minus liability items 2.2, 2.3, 2.4, 2.5 and 4) decreased by EUR 55 billion to EUR 191.5 billion. On Wednesday, 7 September 2011, a main refinancing operation of EUR 121.7 billion matured and a new one of EUR 115.4 billion was settled. On the same day, fixed-term deposits in an amount of EUR 115.5 billion matured and new deposits were collected in an amount of EUR 129 billion, with a maturity of one week.
Recourse to the marginal lending facility (asset item 5.5) was virtually nil (similar to the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 181.8 billion (compared with EUR 151.1 billion in the preceding week).
The holdings by the Eurosystem of securities held for monetary policy purposes (asset item 7.1) increased by EUR 13.9 billion to EUR 202.4 billion. This increase was due to the net result of settled purchases under the Securities Markets Programme and the redemption of securities under the covered bond purchase programme. Therefore, in the week ending 9 September 2011 the value of accumulated purchases under the Securities Markets Programme and that of the portfolio held under the covered bond purchase programme totalled EUR 142.9 billion and EUR 59.6 billion respectively. Both portfolios are accounted for on a held-to-maturity basis.
Current accounts of euro area credit institutionsAs a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) decreased by EUR 40.5 billion to EUR 139.3 billion.
EURSS Parliament Debates Debt Crisis_ LIVE:
http://www.europarl.europa.eu/wps-europarl-internet/frd/live/live-video;...
p.s.
Nigel Farage speaking in about 15 min.
Yackety yakety yack. the biggest problems are labor shortages and commodity push inflation..... so the EU stuff is not only not bad news, it isn't news. We're still above 1000 on the SET and we're not even seeing a dollar worth 31 yet.
Jeff..is late to the party.....market has price in a euro restructer
What crack are you smokin? Neither EU or US has priced a restructuring in, the markets are still running full tilt on algos fed with hopium dancing to the latest rumor
But wait - the latest deus ex machina that magically pulled the market back up...common euro bonds. I never thought I'd be one to root for chaos but bring it on already.
FTSE up DAX up !?!!
I am really not a supporter of the Euro, but honestly, there is so much waffle and rhetoric from US and UK interests against the Euro, that it makes me want to support the little guy (or just play devils advocate perhaps).
That and the fact most US and UK pundits really do seem frikkin clueless. How many times have I heard the euro is finished?? Panic, panic, panic???? Too many and for too long.
And why would the SNB attach itself to a dying entity? Surely it wouldn't?
Perhaps they are now aligned so that as the Euro increases in value against the USD, the CHF will go up with it, (and not outpace it) as people move away from USD and into EURO...(as the CHF ain't no safe haven anymore so don't put your money here!)
For sure it is going to be interesting to see how europe deals with the pimple of Greece, but hey, isn't that why we (the European central banks) have mark-to-market gold reserves?? sitting ready for freegold and the demise of the USD?
I'm not a big supporter of Euro either...
Who is doing/initiating all the BS about the Euro in Anglo-saxon land? is it Geithner? Bernanke? US TBTF? I dont know but it smells....
I sense that it is the TBTF with support from Geithner.
Just look at the FT interview the other day with Jamie Dimon. "...The US should leave Basel III...". Who the f..k does he think he is? He is a shitty little banker not elected not an owner (minimal). JPM (and other Banks) have gotten a License from the Authorities to support the creation and transfer of money. Thats it! He should shut up and do his work. He is nothing without that License. Nothing!
@fredquimby: The reasson U got a -3 score is because of Anglo-Saxon schadenfraude.
The aggregated Euro debt/GDP is far less than US and UK......!!!
Thats the sh.t....Geithner will not allow any appreciation of USD especially not against Euro....The Germans are opposing that as we speak.....hence more and more and more preassure against the Eurozone in the expectation that a "euro-TARP" will strengthen the Euro v.s. USD.
Its the economy. stupid! The famous phrase describes it all.
Europe does not hold together because Germany is holding an iron grip on its neighboring countries. No, it holds together because it makes economical sense.
Germany is a big exporter but also a big importer. As a matter of fact Germanys exports and imports within the EU are more or less balanced. Of course its differing from country to country but in sum its quite balanced. And this explains why the EU on one side hates Germany because of its ever growing influence and on the other side loves it because it is huge market for many products thus generating jobs. The real surplus for Germany comes from its export outside the EU. Thus Germany is generating cash flow for the EU in general. And since these activities generate profits which are spend in huge parts for investment again in Germany and the EU it can be justly be said, that Germany is by far the biggest producer of jobs within the EU. So this has very positive effects for example in Poland and other eastern neighbours while in the south of Europe it has lesser influence. But this is in most cases a structural and cultural problem. To say it is difficult to invest and open a factory in southern Italy because of the mafia (northern Italia is completely different by the way). In Greece its not the mafia but the powerful families which are blocking everything which could undermine their influence. While for example in the Netherlands or Poland such problems do not exist.
My opinion is, that Germany simply decided to stand-up against the US and simply is not willing to eat the "shit" the Anglo-Saxon banking industry in conjunction with the US administration has served for the whole world. And since this "shit" is not only served to Germany but to other nations too Germany is not alone in this matter.
There is a saying in Germany when somebody has no real choice: "Friss oder stirb!" which means "swallow it or die". But in the present situation this means for Germany the following: When you eat the "shit" you will die slowly but surely together with us. If you decide not to eat the "shit" you may die instantly because you are fighting us.
The choice is obvious because the outcome from option one would mean total surrender to the US system with all consequences. Germany and together with Germany the EU as a whole (if it continues to exist) would be a vasall of the US for generations.
The second option might not even exist for Germany when it comes to the final endgame. It all depends on the US how far do they go. I believe nobody knows now but we will know one day. We will never know the details but the results will tell the tale.
Amen!!! +1000
Who cares. Germany was always a vassall with less leverage than the UK, France or even Japan.
@magpie: Vassal to who?
Wolodja ? No, to Uncle Sam. Or Hu ever buys the Eurobond ?
In your dreams....
Not to much EURO debt owned by US banks (hence the relative muted reaction so far)... And Geithner? (as U said uncle Sam) you must be yoking...
Eurobonds doesn't exist (yet)....
maybe, maybe that is what its all about....
I don't want to much USD, Yen debt
I don't want illiquid gold
Rmb is not convertible (yet)
so, give me Eurobonds (says TBTF, which the Germans oppose)...
"When you eat the "shit" you will die slowly but surely together with us. If you decide not to eat the "shit" you may die instantly because you are fighting us."
I don't know about the rest of you but I get a bit tense when I think of Germany saying such things. History shows when German power and nationalism are on the rise in bad economic situations the rest of the world ends up butthurt.
well in a way you have a point. just who is it that continues to militarily occupy what country, after over almost 67 years?
Beds are burning
http://www.youtube.com/watch?v=10BbpGKLXqk
Time will tell. The road to euro collapse is long and winding.
The current rumor thread of yesterday and BRIC reponses that have immediately been voiced to the Euro zone crisis may provide an indication of whats up ahead seen in the light of the dire situations of EUro Sovereigns cum banking sector ongoing run.
1° Merkel has given her arbitrage. Germany will NOT go it alone, as France is now totally exposed financially.
2° BRIC have said they DONT want the Euro to disappear as alternative reserve currency. Their LONG TERM goal is to get the world financial system OUT of the USD hegemony. This is their MAIN aim. So they need the Euro markets to survive.
3° USA and FED also need ECB/ Eurozone to survive. Otherwise the can kicking by FED is impossible as the rush to USD will KILL ZIRP/QE strategy to keep USD weak and WS assets levitated. If the USD goes STRONG then good bye WS assets! This explains Geithner's current moves in Europe.
4° So whats the next step ?
5° Merkel comes to USA and meets with Potus and BRICS (China/India/Brazil/Russia) and proposes a concerted OLIGARCHICAL bail-out of EUro involving QE easing ALL around, with a coordinated support of EUro, to allow lenders of last resort to a EFSF mecanism to be OTHERS than just Germany. As this is unsellable to the Bundestag and German people. The perceived risk is beyond Germany's capability. "If you want Euro to stay you gotta play also"...is Merkel's message to them.
If she gets agreement from O'bammy/FED + Brics, at Washington next week, then she can put together an EFSF backed by FED/China/BRICS that can raise, 2 trillion USD say, to save the ECB and Eurozone.
This will obviously involve COMMITMENTS by Eurozone to go to FISCAL Unity. Allowing ECB then to issue Euro bonds with the back up of world-wide supported EFSF to bolster the PIIGS crisis. Merkozy are already hinting at this through a joint stance...
6° Merkel goes back and sells this to Bundestag. As the ONLY way to save Euro zone from financial mayhem. Some time in October 2011.
7° The subsequent execution of this plan MAY involve partial defaults of some banks and national bankruptcy of some peripherals like Greece. But the core structure of Euro banking system will be saved for a FEW years. More can kicking until the next crisis.
This is what looks like being the likely scenario of coming weeks/months.
WHat this geopolitical cum financial play does not address is resolving the ROOT causes of current financial and capitalistic meltdown : to profoundly change the world financial game. As this would IMPLY burning all Oligarchs and their ponzi banks and HFs, and forbidding all naked, opaque instrumented, CDS driven derivative plays world-wide, aka new Glass-Steagall, TObin tax etc.
The financial world has in three years, collectively REPEATED, COMPOUNDED a second time in EUrozone, the same mistakes that led to the WS 2008 meltdown. Can it be more suicidal than that?
Meanwhile, Main Street on both sides of the pond will shrivel into deeper recession and hyperinflation as the ponzi fiat pumping will reach huge proportions to save both damaged pillars of the already dead USD cat bounce and the fake, artificially supported, NEWLY EXTENDED, Euro ponzi.
I would be very pleased with this unfolding financial drama of continued western financial decadence... if I were a BRIC/Chinese Oligarch...
Bottom line : No amount of fiat pumping can save USA/EU economies if the real GDP growth rate in these regions stays below 2% +. As their debt exposure, now being compounded, is too high. Not only do we need financial reforms but also debt/asset write downs. And that...the Oligarchs will NEVER accept. SO...where have all the flowers gone...sing it, as its the future!
2° BRIC have said they DONT want the Euro to disappear as alternative reserve currency. Their LONG TERM goal is to get the world financial system OUT of the USD hegemony. This is their MAIN aim. So they need the Euro markets to survive.
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
They want out of the USD hegemony and would not want a EU hegemony.
BRIC main issue at present point: they would fare much better without having to trade with Europe and the US.
Both those world regions are big leeches on the BRIC economy that prevent BRIC population to better their own life.
EU hegemony : You are pushing the scenario. Making the burning house into future Oligarchical palace! The Euro, if it has FED/O'bammay backing, will never be an uber-alles money on its own. So the BRICs don't have to worry about that eventuality as long as the USD is top dog and EU a surrogate kept alive on medic-aid thanks to the FED...we are far away from a stand-alone Europe! Let alone a stand-alone Yuan economy!
But...time flies faster than we can imagine.
let no crisis lie unexploited to the nth degree. i could not imagine on my own the mechanism to create the EU state but some variation of what you put forth makes tremendous logic.why would the new unified EU not have north american oligarch fingerprints all over it?
Overkill ;Men at work
http://www.youtube.com/watch?v=Lcu7OCIqlqE&feature=related
This whole shebang is apparently so simple that a 7 year old can understand it perfectly well...
I was explaining to my two youngest why I wasn't in a very good mood last night. In fairness, it probably turned in a bit of a Leo Getz rant, cos I'd had a couple of pints on the way home from work. So after explaining, as far as possible to a 6 and 7 year old, about fractional reserve banking, taxation and greedy banksters my 7-yo (called Tyler, btw. And yes, in reference to the Fight Club character) piped up with his understanding of the matter...
"So you have a few people who own the entire world and they don't want anybody else to own anything so they make you work all the time to give money to them so you never have enough money to buy anything?"
I was quite proud at the time.Tyler's next question was, "So why can we get food at the shop? Where does it come from? Do they make it all so you have to buy it from them for lots of money?"
After thinking about it for a minute, I couldn't see how he was wrong about that one, either.
I hate to be captain obvious here, but Angela has no balls.
Klaus Badder sweating his face off in bloomberg interview right now.
His pokerface is looking weak.
This is like a porno without any sex scenes, just always the build up. Where's the cum shot?
this is john mauldin's recent rant and it addresses the same question, sees much of the same dynamics, monetarily, and comes to entirely different "end game scenarioZ"; but maybe he's not too sure either...
it doesn't matter whether one is "poor" & scared, or "middle class" & scared, or "rich" & scared
so, it is almost totally inderpendent of "agenda" because: all "classes" + various & variable demographic "categories" are feeling isolated and insecure. just a little?
many people have questioned the american bloggers: why aren't you guys & awesomely beutiful women out marching and raising hell w/"civil disobedience"?
we're ok; we're not styoooopid and we're not lookin to start anything, but all the fuking "banking institutions", if they're insolvent, need to fail. in any country, folks.
the "capital" is imaginary; it is a con/ponzi backed by some totally tubular guns and "hired hands"! it doesn't matter where; if the'ye not solvent as corporations, liquidate them and let the chips fall. no "mergers" with shit already too big to fail, backed by the people's $$$. this "imaginary" money, known technically in economics as: misallocated "capital" pretending to be real assets, but "securing real debt", by golly, and therin lies the rub: reality
if nobody really knows what stuff is "worth": let's find out!!! (aka market "discovery" of "price" without criminalz, or do-goodiez, or "invested-in-paper tycoonz" "discovering" that they win and you lose, this time, ok? no PPTz no "buyers of last resort" no FED chairman "puts". this is what is happening, b/c it is necessary to homo economicus
so, nationally, we are at "stack arms" and "chill"; others, like myself, neither believe in violence as a means nor find the times conducive to "civil" action, since that is basically playing right into the hands of the propagandists and "local police reports", plus, we don't need to give the patient a hotfoot, here, ok?
we're ok; how about you? the world will not end if the banks & banksters fail. hey! if you're not solvent at this point, stop jerking everybody's chain and the hit the road, jack. we're not gonna hock our great-grandchildren's lives and liberty, too. if the fuking banksters and the nations they "advise" have somehow screwed the pooch, let's not keep trying to unscrew the pooch by voodoo economics 2000+.0
fail means fail. i don't care if you make it look like cotton candy! the people of america and the european nations are pretty much "all-in". maybe it's time for the "royalty of the worold" to c'mon down to the local pawn broker and see what they can get for their family jewels, too!
financial failure is not the end of the world; we hafta be willing to put and end to the proper "entitlements" and fuking asswipe banksters are no no longer "entitled" to to be 'TBTF'. it is a con & a ponzi; available world-wide, just pay a wee bit of attention to the MSM for the latest offers. people who can think straight will advocate that "failure" of "financial institutions" which are insolvent. if not insolvent, they aren't going anywhere. they'll be here & fine after the big bad wold does his damnedest. they won't hafta hock 1 single pounda gold or sell any genuine gem carbuncles
the 'many' are done "bailing out" the 'few'. let's hope they all (and you?) are "solvent" in this, or any crisis! if you have cash, gold and silver coinage of country, and a coupla years' supplies, you'll probably be ok
printing presses may no longer be quite the optimal survival gear recently imagined
trust me
john mauldin reported yesterday on goldSeek that political interests are highly and speedily getting "invested" in repealing "parts" of dodd-franks so there will not be any "dosorder" (in the homeland?)
these would be the same "rules" which now prevent "bailing out" insolvent financial institutions after the last ass-rape of the american and several other nations-full of people
and the peole who want this "repealed" are the same "people" who convinced the "congress" that repeal of glass-steagall was "just the ticket" and also got the House to pass "bailout #1" altho (bless em!) they were against it before they were for it
but not for long
don't blink or you'll be getting assfuked by the bif friggin wheel
again
that's a reference to the hot hts' on campus album and this amazing ditty:
I once knew a sailor until he died
I know not where that poor mother lies
He had a wife whose smile was so wide
That she could never be satisfied.
So he built himself a big friggin wheel
And on it he mounted a big prick of steel
Two balls of brass were filled with cream
And the whole damn thing was run by steam
And around and around went that big friggin wheel
And in and out went that big prick of steel
In and out until she cried
Enough, enough, I'm satisfied.
But there was just one thing the matter with it
There was no way of stopping it
It split her from her ass to her tits
And the whole damn thing was covered with shit.
And Around and around went that big friggin wheel
And in and out went that big prick of steel
In and out until she cried
Enough, enough, and then she died.
this song is impossible to find online: The Big Wheel
no vaseline for them either!
Yanks and Brits are once again talking their BS but the revenge will be ueber-sweet. After their speculation games fail. We deal with actual facts, you guys deal with BS and snake oil.
What a joke. A Lehman like event that everyone sees coming.
Europe has seen the rise and fall of civilizations since the beginning of history...
the Euro needs to fall more, since it has been totally overvalued by Bernanke's rape of the US Dollar and the US debasement and total corruption of the financial world's Reserve currency, the failed USD.
A multi-cultural Europe is the future, it is the only answer to the crumbling fascist Empires and their depleted, exploited and dehumanized slave-labour colonies. England and America are the last remains of the crumbling British Empire, still trying to hold on to world domination against all hope even in the face of total cultural and economic failure.
the more England and America are fighting a united Europe, the more irrelevant and isolated they will become.
A multi-cultural Europe is the future.
wr;)
Greece will not go bankrupt soon. The next 8 billion they'll get in October, to pay their bills, so they'll have 3 months until in December the next one. So, Greece saved for at least 3 months more, which will see intense debates and fighting, which eventually leads to more tranches of the debt package nr 1. More Greek austerity will place trust back into European hands and the July 21st package will be agreed on. No Armageddon.
I do wonder if you are following what is happening in the real world or have you constructed an alternate reality.
I would have to agree with him to some extent, EU and US have more tricks than a Detroit crack whore to kick the can, a Greek default would domino, they don't want that. For now they can simply do nothing and float rumors of China, Russia, BRICs and EU bonds to kick it into October.
The right thing is a default, however when was the last time you saw a government or worse a collection of governments do the right thing?
Have to disagree.
I think the EU will now try to ring-fence Ireland and Portugal from the fallout of a Greek default.
That default may be controlled and spun in "language" but a default there will be.
It is impossible for Greece to repay its outstanding debt.
That I can agree with, but there are several if not many ways to prolong that default, it will come but I think only after they have played every possible card in the deck, from rumors to bailouts.
A ring-fence around the other (obviously) insolvent PIG countries will not work, they will see what Greece has done by defaulting and reintroducing the drachma, how the world did not end for the Greeks, how they got out from under the yoke of the ECB and Franco-German banks, started to determine their own destiny for better or worse again, they will want the same.
Already today Austria has rejected the ESFS proposals and is convening an internal summit to decide what to do. French banks have been downgraded and it is only a matter of time before the iron tower of Germany banking is also downgraded.
In the last few days we saw the euro look like it was finally going over the cliff, but the USA will not allow the dollar to strengthen. Every day looks like a serious race to the bottom between the two and the gloves are surely coming off.
I like the analogy of water swirling around in a downward spiral in the toilet bowl, but I feel there is deep dark evil, not something I can show you on a chart, not even something I can really put into words, but I was always fascinated by economics and trade, so I went to college for a business degree, majored in finance, as I learned what the school had to teach I realized that the world is a very sick place and has been for a long time. The worst part was they (TPTB) knew it when they set us on this inevitable path, that it would eventually be like a sun that has used up all it's hydrogen and is now converting heavier elements into still heavier ones that has to lead to a collapse and supernova. Any remaining hope is the care and rationality of the common man for each other, you and I are the last bastions of sanity and integrity, if we snipe at each other or hoard one from the other, if we fail to cooperate and share the pain and the good things then we are no better than the ones that did this to us and surely we too will fail.
Digits on a computer may become worthless, FRNs and other fiats may become worthless, but physical gold and silver will never be worthless. That is what we need to wrap our heads around.
Greek default already priced in. No Lehman-2, no worries.
really....... the "drop" in asia & europe greeted with a GIANT *yawn* by US futures. geez... it never ends
Priced in by whom?
The big Euro banks are still marking to model.
The life and pensions fund, I suspect, are doing the same.
I recommend the irrepressible Nigel Farage responding to the Maoist Barroso.
"You have killed democracy in Greece".
On the "Troika".
"Three part-time overseas dictators".
"Is it any wonder that Greek people are now burning EU flags and drawing swastikas over them"
Enjoy ...........
http://www.youtube.com/watch?v=pry5iL4TIa8
Its Caramanlis, corrupt greek Oligarch and his ilk who hired GS to get Greece into EU through a blatant book keeping fiddle and concocted and enacted the whole current debt scam. As true scion of rotten capitalism without a state apparatus capable of collecting taxes from his own baronial cousins, as with all of the local plebes.
So Nigel Farrage is talking like a son of John Bull, the brit bull dog, eurohater by hereditary atavism, and talking through his nether orifice. He needs to remember that rule Britannia is long dead and their "special relationship" to USA, now after Irak a formula for criminal Blairist poodleism. Does he want to be the new Quisling of euroskepticism...? What does he propose to his constituents except the uber-alles mantra of the broken CIty?
I don't know what the political class of Britain has as a project for their country. Except a "bought" Olympics engineered by Blair and his "pal" Samaranch of Spain, ex-capo di capo of CIO, allegedly mover behind the scenes at Singapore, especially for getting third world votes to the Brits. Not a savoury memory amongst European Oligarchs of his own ilk.
Eurozone is such a menagerie of corrupt sharks these days...like their US counterparts.
Quite.
But what did you think of the video?
very good talker, like Ronald reagan.
Zervos is pretty much an alarmist who has been wrong about almost everything - HOWEVER - he may finally be right about something.
multi-cultural Europe needs a new Age of Enlightenment
let me ask you these questions:
Do you know the inflated price of everything and the fundamental value of nothing ?
are you a Consumer Addict ? Are you obese or overweight ? Do you suffer from physical or mental constipation ? Do you live within your means ? Do you consume more than you need ?
Don't despair, a new Aesthetic Realism is here
Austerity and Poverty will cure you of all your self-inflicted pain.
wr;)
Due to the US political system, there is zero will for real austerity, the US will meet a demise that is forced upon it by the rest of the world, we will print until we lose reserve currency status and the world stops purchasing our worthless paper, austerity will come in the form of hyperinflation, bankrupt entitlement programs and lost retirements, but not by austere decisions made by our government.
US demise can not ever be worse than global demise for the simple reason that we are the dumping ground of the collective mercantilist product, if they are the producing countries we are their market without which their production is so much bullshit. Sure the USA can fail, but when we do all the rest automatically go with us. Attempting to switch from the dollar as the one true reserve currency strikes many as the solution to that problem and the BRIC's really relish the thought of winning that economic war against America, but to displace the dollar as a reserve would be just as much a financial and economic armageddon as a collapse of the euro, or global hyperinflation/depressionary deflation, the result is still as bad for the BRICs as anything they have seen to date. They can win, we can die, but they will be so badly crippled it will become the new definition of the term Pyrrhic Victory.
As i predicted last night,,,market is ready(already a 3% bounce from the lows) some relief...Market is telling you a deal is ready to come to restructer Greek and European bank debt...time to buy..not sell
By all means, go for it and let us know how that goes.
Will someone pull the trigger already!
The more the leverage, the bigger gain, no?
"The fact is that the Germans are NOT going to pay for pan European structure to recap French and Italian banks - even though it is probably a more cost effective solution for both the German banks and taxpayers"
This guy is a Keynesianist, so you should triple check his conclusions. Of course that doesnt make him completely wrong, just makes me question his way of reasoning...
With this playing out and Europe one of our key export markets, US multinational companies will be taken to the woodshed.
And the stock market averages and futures up accross the board. Never seen such a charade in my life.
"–SocGen 12b in market cap (-70% this year) with assets of
1.13 trillion" SocGen by now have very little exposure to
Greek Debt. Can you elaborate why is Gold doing nothing while
everything is "collapsing"?
"SocGen's exposure to Greek sovereign debt was €1.7bn (£1.5bn), down from €2.6bn at the end of last year, plus €3.3bn of other lending through its Greek bank Geniki – barely 1% of the group's balance sheet."
.
the only unified group in EU are the muslims - they are the only group with the will to use violence - they have no moral block to eliminating the non muslim. EU has let millions of them in.
the night of the long knives is coming for the metro sexual EU males.
no guns to protect themselves pitty. Gun rights in America will nullify any attempt by muslim gangs here very quickly.
EURUSD - should find resistance to push the pair lower. http://bit.ly/ocGIvk
More headline grabbing opinion that will leave the proclaimer with egg on face. The simple fact is that the euro-rich are used to be being taxed more heavily (with wealth taxes still in effect in France) than most everywhere else and they still live here AND cough up, which means government debt (however large) will be financed by taxes.
If people really think that the rentier class is simply going to up sticks to Hong Kong etc. upon demands for a greater proportion of their wealth, they are deluded (if only because then they would no longer be able to show off their wealth to the other richies).
Bottom-line, Europe is still a great place to live.
Sir Walter Scott is spot on....
hundreds of billions of dollars are positioned short for a crash now.
the imbalance is that yes there will be default but the herd thinks it can profit off it.
deleted - irrelvant
T. Geithner: ' "Lehman" scenario off the table', if this wasn't close to reality, GOLD would be trading $2500 by now.
jeetner saying lehman scneario off the table raises the probability of a lehman scenario occuring in the near future to 99%. I leave the 1% in there to account for miracles of a biblical scale...rivers turn red, parting of sea, raining frogs, etc, etc.
Perhaps you right, then where people put their money?
Stock Market pretty much flat. Gold suppressed for days now.
Money should be hiding somewhere? Treasuries? Dunno..
Gold doesn't acting right for any type of disaster..
Gold Volatility dropped as well..
+1
Very good article from David Zervos. Thanks.
Even though 20% of Americans are living in poverty this is nothing compared to what is about to happen in Europe since there is nobody in Europe, I mean nobody, who has not been made dependent upon the state for their financial well-being. Everything is subsidized, and those subsidies are going to go away almost overnight. Millions of people, especially the elderly and the sick, will be instantly impoverished, and since the old family structures have vanished, where someone who is sick or old and without means can always find a family member who will take care of them, I am very afraid that we will see suffering on a scale not seen in Europe for many centuries. I don't wish this on the people of Europe - it has been forced upon them by decades of social experimenters, dilletants and schemers. Of course they have for the most part gone along, taken their subsidies, and not raised the basic question of how all this is being paid for. Still, their pain will soon become our pain, and no amount of military power can stop the economic wars about to break out. I am very sad this morning for all of us, and I am very angry at those whose arrogance and hubris have brought the world to the edge of the precipice.
O God....! from what planet R U?
Try to rid yourself from your FOX news info dependency. Its silly
Leonard, my friend you obviously have not a clue of that which you speak. Please cease your commenting.
I wonder if they r so smart, or maybe they will see it on the road. But ECB could be the largest Enron fraud vehicle in the history. They will burry there all the debts and everyone will be left with their own currency, hard one..