Last Night's Critical Phrase "No Extra Bailout Funds"

Tyler Durden's picture

There was just one relevant phrase uttered in all of last night's bluster, and ironically it came from Italy's own Mario Monti who said that there are "no plans for boosting bailout funds." This really is all that matters. Why? The Bridgewater chart that we presented before once again explains it all.

We have at best kicked the can down the road for a few days.

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Boilermaker's picture

ES +20 handles.

Who gives a damn about the details?  Isn't this fairy tale way way past that chapter?

paint it red call it hell's picture

just like a hollywood train wreck, slow motion playback so you can absorb all the grinding gritty details

The Monkey's picture

Shorts getting killed today. How's that Goldman call to short the S&P working out?

RyanW525's picture

All junkies say this is the last time...until they die.

CPL's picture

Oh it gets dumber...what would flip your noodle is it doesn't matter that the ECB won't create extra bailout funds.  (there is a reason for that)


It's the fact there are bailout funds.  Backed by nothing but a bunch of pastsy office trolls that could not tell the truth to save their own families.


However, pass the fiat smack and we'll chase the over leveraged green dragon down the rabbit hole.

saturn's picture

Points to uslessness of money.

LongSoupLine's picture

Just about time to go fucktard ballistic short this market.

CPL's picture

DON'T seriously.  Don't.  Same replay as last summer.  There is no money to be made here.  Like each Bear trap set, every summer, I'll be reading about how you lost your shirt, dog, house, truck...


Please for the love of all that is holy, don't touch it.  You'll end up getting clobbered which would be awful.  There is no investment or cash to be made there, only thing left for anyone to do is get in position with PM's and not get completely incinerated by the incoming hyperinflation.


The TPTB will print and consider all news bullish even if it's unrelated to the value of anything.  Just don't.  Please.

Cone of Uncertainty's picture

If there was ever a time to pull out the over used, anti PETA phrase, "dead cat bounce" now is it.

caimen garou's picture

amazing how the futures rise on some good old fashion bullshit! I just wish I could do the same with my bank.

LeisureSmith's picture

There's a lot of BTU's in good old fashoned bullshit. Seriously tho, how many critical meetings can there be without anything going critical? These Eurocrats sure know how to recycle.

timbo_em's picture

Spain only has a small problem with a few of its banks that can be fixed with €15-62 billion and Italy has been on the right track ever since Goldman's Monti took over. Investors are just too stupid to realize this. So noone will need a bailout. All clear here in Europe.


Maybe the Europhoria will last until the Troika visits Athens next week?

JackT's picture

WTF, I thought I fixed this chart already! Who broke it!?

sangell's picture

They haven't even put nickel in the ESM pot yet and Hollande, Rutte, Monti etc are all scambling to find billions to meet their own fiscal targets. Wait till the ESM starts sending out cash calls to its members.

goldenbuddha454's picture

That's good advice.  The whole charade will eventually come to the end when China even tells Europe to pound sand.  As it is right now, there are enough ways to put off a global collapse for another year or two via the FED/ECB/TARPS/EFSF's/Operation Twists/IMF/LTRO's/whatever.  Eventually, yes, it will all collapse horribly, but for now we'll see one bailout after another, one money print after another etc...  The end though will be really ugly!  Agreed, PM's are the future.  They've already been added as a tier 1 bank reserve in the USA.  Central banks still buying gold.  Only the Japanese and Indians are dumping enmass right now it seems.  If PM's plummet in the next 6 months it only means that's a great point to get in big IMO.

Cosimo de Medici's picture

Critical phrase nothing. If anything has been made abundantly clear with this week's meeting, it is that "no" doesn't really mean "no"

---Spanish Banks don't need a bailout

---No subordination

---No short term fixes

---Germany will not agree to funding anything, unless it gets some say in other sovereigns' policy

---No Eurobonds (the ESM buying Spanish and Italian debt IS Eurobonds in all but name)

As Alan Shepard said when he hit the moon's first six-iron, "miles and miles".  That's how far they can kick the can, and there's no such thing as "no".  This doesn't blow up until Merkel gets drummed from office.

Vince Clortho's picture

This will blow up when enough people get motivated enough to do something about it.  The exit of politicians seen as pivotal is immaterial.  Each time a puppet exits the scene, a new puppet enters.  They are a dime a dozen and there are multitudes of political candidates waiting in the wings, hoping for their chance to become a water-boy for the Central parasites.

The Financial entity can and will kick the can as long as possible.  The will run the debts into the scores of trillions if left to their devices.  At what level of servitude and economic despair do the common people realize what is going on and get up off their thumbs?

monopoly's picture

Shorting this market makes little sense. IF you can time it perfectly, you have a few hours, maybe a few days to make some coin. But the up down of the market on a daily basis makes it hard to hold on to anything except positions you totally believe in. Then you get a market that makes the bears feel good. (Believe me, I am a long term bear, but I do not short anymore). So they enhance their positions and they are all winners. Now we are not talking about lucky lotteries such as CMG, NKE and RIMM that dump in just a few days, that is just luck if you are in at the right time. The charts back you up, the economy is slowly deteriorating, and we have an unsustainable monetary model. It all fits. 

Then, the clowns in Europe open up their mouths, babble a few sentences, all of which will be of naught, and BOOM! profits gone. And the head Inmate has not even joined the pot party yet. I just do not go there anymore. At some point, when the "funding crisis" starts, maybe then, it will be Short time. Till then, I will just watch and continue on the path that I have been on for the last 5 years.

Godisanhftbot's picture

 Most shorts have been destroyed. Greeters at WMT.

The worst trader's picture

So true youcan't even bet the VXX without getting hammered! A total fools game......

Fort's picture

We have in Europe a sovereign debt crisis, a liquidity crisis in governments and banks and a solvability crisis. Very few appealing investment opportunities in terms of return on capital. There is a lack of innovation, which hints at lack of creativity, which hints at schools doing a poor job educating the young. In addition governments (EU has only added to this pile) have overburdened companies with regulations and mandatory fees payable to all sorts of semi-government companies leeching on the back of that same pile of regulation from what little profit private enterprise still has. Government’s social benefits package is supported through an incredible expensive tax and social premium scheme paid for by those still remaining productive employees and obviously their employers. Making it much more appealing to those companies that can afford it to move their business out of the region. It also doesn't motivated small and mid-size companies to invest and grow their businesses. Most importantly it prevents a real barrier to any potential start-up. I would say the dinosaur is on the edge of extinction.

All in all we've got ourselves a real lousy situation. Thing is to set things straight the one thing we should have is a reset, it is the one thing nobody has the balls to admit and initiate. In retrospect was Mr Gorbatsjov a hero or the idiot who let the whole thing fall apart? I'm curious what a poll amongst Russians today would yield in feedback to that question. A positive feedback to such a poll (which I would expect) might incentivise Ms Merkel that despite the no doubt terrible short term pain we will suffer, a break-up might actually mean our kids actually will have an opportunity for a prosperous future again. This was my POV last year. Another year of kicking the can down the road has not increased the chances for last mentioned opportunity for the kids of Europe. In contrary, I'm sure another year of can kicking will only make it worse.

It is about times somebody with balls stood up and take the whole thing down. Ms Merkel might do it; if she does she'll be my hero for ever and despite all cursing in Europe against her as a result of all the short term pain. We would collectively owe a world of gratitude to the Titan lady. A term she would deserve if she sticks to the no additional bail-out money. We won't get out of this crisis ever it simply can't be done, unless we break it up liquidate bad assets and start over. First stop would be to burn all those barnyards full of regulation, don't border to consider some of it actually good. Just start over let's be creative again. The end of the day we know people tried they just couldn't pull it off. Mankind has faced bigger challenges in its history. We'll overcome this failure to.