The MF Global Trade Is Not Coming To (European) Town - Why The ECB's 3 Year LTRO Is The Latest Bailout Flop

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Sun, 12/18/2011 - 13:27 | 1991697 Manthong
Manthong's picture

"debt crisis phone talks on Monday"

Why? I thought they lobbed an RPG bazooka into the ring fence to fix all that.

Sun, 12/18/2011 - 14:12 | 1991822 disabledvet
disabledvet's picture

Guess they got a financial "Irish car bomb" instead.

Sun, 12/18/2011 - 17:19 | 1992136 Hober Mallow
Hober Mallow's picture

Forget about China, they need help too!

China opens door to foreign investors

 

Sun, 12/18/2011 - 21:08 | 1992580 DeadFred
DeadFred's picture

Crisis phone talks lead to 3 PM rumors. They will need them. Cramer is quiet. Goldman is subdued. Not a lot of angst floating around the web about the week ahead. This equals a sell off in the works.

Mon, 12/19/2011 - 00:20 | 1993130 StychoKiller
StychoKiller's picture

And the love-fest for the $ continues...

Sun, 12/18/2011 - 13:36 | 1991703 GeneMarchbanks
GeneMarchbanks's picture

'It took the market about 3 hours to wake up from its zombified state and to do a 180, proceeding to rapidly sell off European debt following the realization that the Morgan Stanely thesis is nothing but a purely self-serving lie.'

Boy, that is one dumb 'market' if I ever saw one...

'That view echoes comments from UniCredit chief executive Federico Ghizzoni, who this week told reporters at a banking conference that using ECB money to buy government debt "wouldn't be logical".'

Logic is so old fashioned.

Sun, 12/18/2011 - 13:40 | 1991730 mac768
mac768's picture

"Common sense is not common in this times...."

Sun, 12/18/2011 - 14:44 | 1991904 Schmuck Raker
Schmuck Raker's picture

"This is why we elect smart politicians..." - A Great Man

Sun, 12/18/2011 - 15:35 | 1991992 d_senti
d_senti's picture

Use a money printing fiat institution to give money to bankrupt institutions in the hope that they will invest in other bankrupt institutions so as to sustain a morally bankrupt institution and preserve the money printing institution's power to print money.

Banker logic has saved us once again!

Sun, 12/18/2011 - 17:14 | 1992128 disabledvet
disabledvet's picture

wait 'till you see what the government has in store for ya.

Sun, 12/18/2011 - 13:39 | 1991723 mac768
mac768's picture

100% sure, there is "no doubt (lie)" about the facts ...

short the MS

Sun, 12/18/2011 - 13:40 | 1991732 GeneMarchbanks
Sun, 12/18/2011 - 13:57 | 1991782 whatsinaname
whatsinaname's picture

so is the 2 month tax extension in the US going to delay the inevitable ?

And how desperate are US banks for some relief aka (the official) QE3 ?

Sun, 12/18/2011 - 14:14 | 1991828 disabledvet
disabledvet's picture

Which ones? The big ones with no money or the middle market dudes "raking in the dough."

Sun, 12/18/2011 - 13:39 | 1991727 ISEEIT
ISEEIT's picture

Governance in crisis?

In real people speak: The lies just aren't 'doing it' these days.

Rote-roh. 

Sun, 12/18/2011 - 13:43 | 1991740 Irish66
Irish66's picture

Another bank must have fallen so we can only make phone calls. Travel is restricted due to budget crunch.

 

Sun, 12/18/2011 - 13:48 | 1991755 Manthong
Manthong's picture

Except if you are a technocrat.

Their T&E tab alone could probably bail out Greece.

Sun, 12/18/2011 - 14:43 | 1991902 MsCreant
MsCreant's picture

Imagine if we saw them huddled in small hotel rooms, eating cheap takeout, wearing the same suits they wore last week, being all Austere an stuff. Refusing entertainment, flying economy class, for the sake of the people. (I gotta stop it, I'm killing myself laughing here).

Sun, 12/18/2011 - 14:56 | 1991920 falak pema
falak pema's picture

Sounds like the good old days, when we were young and a glass of bojolais and a swirling skirt in a gust of wind was all you needed to feel on the right side of time line, like jumping toast on bed springs, huddled, befuddled by sweet symphony; not skullduggery deadened in corporate humdrum.

Sun, 12/18/2011 - 15:26 | 1991971 Manthong
Manthong's picture

Like back in the good old days..

http://i42.tinypic.com/21csaw9.jpg

Sun, 12/18/2011 - 15:32 | 1991985 falak pema
falak pema's picture

+1 enjoyed it.

Sun, 12/18/2011 - 13:45 | 1991747 PulauHantu29
PulauHantu29's picture

"House prices always go up" is what all this Eurzone BS Spin reminds me of.

Sun, 12/18/2011 - 13:48 | 1991757 GeneMarchbanks
GeneMarchbanks's picture

Not really though cause that still applies if you're in Vancouver...

Sun, 12/18/2011 - 17:28 | 1992147 gilliganis
gilliganis's picture

...or Australia

 

Sun, 12/18/2011 - 13:49 | 1991760 falak pema
falak pema's picture

"No, No, No, NON, NOOON", Says Noyer of Noyer and Noyeroia of Ze Bank of THE FRANCE. "We can do both deleveraging and releveraging. You don't understand the french language. When we invented the Knight Templars, our Saint Bernard said; to do God's work, he would be BOTH armed knight AND priest. And don't tell me its against canon law and what Jesus said..."render unto Caesar...". Saint Bernard said it was ok, so it's oK! Knight Templars can kill in Holy LAnd to do God's work and also be priest guarding the Holy Sepulcher."

Voila, its a thousand year old formula. Its older than the Coca Cola formula. And its like what Corzine learnt, when at Univ. of Chicago business school  he came and spent a summer picking grapes at Clos Vougeot. 

We taught him that re-hypothecation was NOT incompatible with de-hypothecation. You can do both. It all a question of flexibility of the wrist when you break ze financial egg, you do one way in springue...and ze other way in how to you say? ze fall? yes ze full foul fall. 

There, it is a special way of making ze grapes of Clos Vougeot, the grapes that never grow sour, how do you say, yes, ze grapes of wrath! voila!

Now go be a good boy and tell ze Ben from the Fed, we are pleased to buy his lousy dollar out of pure generosity. You know we must turn from time to time, how do you say? yes, ze other cheek! voila! Now you know the french way to make pommes frites.

Sun, 12/18/2011 - 14:18 | 1991838 disabledvet
disabledvet's picture

"as long as you're shoving other people's money in your own pocket it's all good."

Sun, 12/18/2011 - 14:28 | 1991869 falak pema
falak pema's picture

voila, you have ze flexible wrist...bravo!

Sun, 12/18/2011 - 14:48 | 1991907 Kayman
Kayman's picture

falak pema

Ah, oui, the French.

Non, monsieur, it is you who should be thanking me, for allowing you to save my life.

No greater example of French arrogance than DeGaulle.

Sun, 12/18/2011 - 14:54 | 1991913 earleflorida
earleflorida's picture

tis, not god's work, 'nor' hand, that serves up the cold dish?

quite hitherto,... too running the gambit [futility], ala, of centrifugal force on an infinite fulcrum plane, only to realize, that energy [$$$] consumed was all in vain, for gravity knows no other logic than the laws of the [financial] universe - inflexible to gaming any such system therein [?] - without total collapse within.

Sun, 12/18/2011 - 15:01 | 1991933 falak pema
falak pema's picture

You've perfectly described the feeling of neutrinos zipping along in the Hadron collidor underneath Geneva and France...wowieee, I feel I'm in that shute.

Sun, 12/18/2011 - 13:49 | 1991762 Rainman
Rainman's picture

Don't worry, someone whose first and last name starts with " B " will buy the bonds.  Hint : " We have many tools at our disposal ".

Sun, 12/18/2011 - 13:57 | 1991781 ISEEIT
ISEEIT's picture

Sure. But when? Timelines matter as much as do events.

Sun, 12/18/2011 - 14:00 | 1991789 Seasmoke
Seasmoke's picture

BUGGS BUNNY ??????

Sun, 12/18/2011 - 14:11 | 1991812 Rainman
Rainman's picture

You silly rabbit ! Ben and Barry are both entering their last year as members of High Command. Expect many mid-court three point shots from both of them !

Sun, 12/18/2011 - 14:45 | 1991906 MsCreant
MsCreant's picture

Tools, members, ya gotta stop.

Sun, 12/18/2011 - 15:03 | 1991937 gmrpeabody
gmrpeabody's picture

Looks like somebody is spiking the eggnog a bit early this season... too funny!

Sun, 12/18/2011 - 14:45 | 1991905 MsCreant
MsCreant's picture

So Ben and Barry are real tools. When do we dispose of them?

Sun, 12/18/2011 - 13:55 | 1991774 williambanzai7
williambanzai7's picture

CASEY JON

Sun, 12/18/2011 - 13:59 | 1991785 GeneMarchbanks
GeneMarchbanks's picture

"Drivin' that train, high on cocaine"

Berlusconi was right about them traders...

Whookudaknowd

Sun, 12/18/2011 - 13:56 | 1991778 ebworthen
ebworthen's picture

Bullish for Gold and Silver, and U.S. 10 Year at 1.5%

Sun, 12/18/2011 - 14:12 | 1991821 ISEEIT
ISEEIT's picture

Now THAT is a bubble to buy at the top! ( not, because when the rate gets that low, the game is already over, the bond will be for all intents and purposes worthless) May as well flip a coin though. The one thing this ponzi does well is maintaining instability. Gotta give them a big thumbs up on that one. A job being well done.

Clap, clap.

Sun, 12/18/2011 - 14:20 | 1991846 disabledvet
disabledvet's picture

"how is one to know whether an...irrational exuberance has taken hold?" Alan Greenspan.

Sun, 12/18/2011 - 14:43 | 1991903 economics1996
economics1996's picture

I like guns, ammo, food, water.

Sun, 12/18/2011 - 16:46 | 1992088 Dr Paul Krugman
Dr Paul Krugman's picture

I like Tchaikovsky, dry martinis, the beach, and soap.  But hey, I guess the apocolypse is right around the corner!

Sun, 12/18/2011 - 17:19 | 1992134 disabledvet
disabledvet's picture

I'm a fan of "The Lion in Winter" myself.

Sun, 12/18/2011 - 19:24 | 1992319 Duffminster
Duffminster's picture

If anyone believes that the involved hiearcy (the international network) will allow an unstoppable deflationary depression and a failure of hundreds of trillions in deratives through a massive default chain without first running all the printing presses 24x7 is not thinking clearly.

Depression and hyperdeflation are not politically viable either among those who seek to dominate or those who are currently dominated.   If nations default on their bonds, especially the US, the associated currenices will be completely worthless and nearly over night.

Running the printing presses will give more time for the international network and the super rich to get possession of as much gold and silver as possible while preventing an exponential spread of the Arab Sring and Occupy Everywhere to the point where the natives are showing up with more than protest signs.

Merkel and the Fed say a few remarks and then Draghi chimes in and all the sudden all the idiot funds think that they won't be running the printing press or it will slow.  No way.  Its already running 24x7 but, at least at the Fed, you haven't seen anything yet.  

The longer Ben waits, the more he will have to print later.  We are dealing with full on insolvency and the only possible politically viable solution is to turn up the burners at the press.

Its that or You'll Ron Paul or Newt Gingrich as President, the Fed being shut down, and when that happens, Wall Street will be mostly out of business in my opinion and it will set the stage for a new revolution that will make the Tea Party and Occupy look like a child's depiction of an innocent path to freedom.

Just a thought.

Duffminster

Sun, 12/18/2011 - 19:24 | 1992320 Duffminster
Duffminster's picture

If anyone believes that the involved hiearcy (the international network) will allow an unstoppable deflationary depression and a failure of hundreds of trillions in deratives through a massive default chain without first running all the printing presses 24x7 is not thinking clearly.

Depression and hyperdeflation are not politically viable either among those who seek to dominate or those who are currently dominated.   If nations default on their bonds, especially the US, the associated currenices will be completely worthless and nearly over night.

Running the printing presses will give more time for the international network and the super rich to get possession of as much gold and silver as possible while preventing an exponential spread of the Arab Sring and Occupy Everywhere to the point where the natives are showing up with more than protest signs.

Merkel and the Fed say a few remarks and then Draghi chimes in and all the sudden all the idiot funds think that they won't be running the printing press or it will slow.  No way.  Its already running 24x7 but, at least at the Fed, you haven't seen anything yet.  

The longer Ben waits, the more he will have to print later.  We are dealing with full on insolvency and the only possible politically viable solution is to turn up the burners at the press.

Its that or You'll Ron Paul or Newt Gingrich as President, the Fed being shut down, and when that happens, Wall Street will be mostly out of business in my opinion and it will set the stage for a new revolution that will make the Tea Party and Occupy look like a child's depiction of an innocent path to freedom.

Just a thought.

Duffminster

Sun, 12/18/2011 - 14:57 | 1991923 Duffminster
Duffminster's picture

I agree ebworthen but mainstream is only publishing the spin about the majority of economists conensus that gold will be down in Q1.  Good contrarian indicator?

Contrarian thinking indicates that when a boat load of Kensyian economists think that gold is going down, chances are its going up and the capitulation by the weak longs who have no conviction to the fundamentals, the purely hedge fund types like Paulson, Cramer, Gartner and the like) who appear to me to primarily use gold to try to generate speculative profits during periods of economic instability is an extremely healthy sign as increasing demand for actual physical gold as collateral for all the hypothecation and rehypothecation taking place is likely to be a primary catalyst to the markets. For those of us like me who see gold as honest money that keeps governments honest about how much they can spend, the long term value of gold is that it is actually real money.  Lease rates were dropped to next to nothing and central banks are liquidating like crazy with the likelyhood of a major bank being stealthly bailed last week by the Fed, I'd say it boils down to this: "in the end, he or she who has the physical gold firmly in their own vaults will be the victor." To me, it looks China knows this and much of the old world too.  Its just the desperate Central Banks using every trick (per the GATA playbook) to control perceptions but those who know the end game use every raid to accumulate more physical gold and silver in my opinion.  Any of top 20 billionaires in the world could single handidly purchase most of the available physical bullion in the world and given the degree of leverage that silver has on gold, I wouldn't doubt that more than a few are considering it.

There are a few great articles I read today that I think anyone serious about considering gold and silver for long term wealth preservation might also find informative. Here are the titles (you can easily find them through your favorite search engine. Mine is still Google).

15 Brilliant Insights From Hedge Fund Superstar Kyle Bass
"Charlatan Exposed: Negative Gold Lease Rates" - AUG Mentor
Pathogenesis of Central Bank Ruin - Gold Seek
"Citi Predicts Gold At $3400 In "The Next Two Years", Potential For Move As High As $6000"
Analyst Sees Strong Oil Prices, $2,000 Gold Ahead

My personal view of things are quite a bit different from those of this article. I think about this subject a lot.

Despite the jawboning by Ben at the Fed and Draghi at the ECB about no immediate easing, the fact remains that they are the current sovereign debt “market” if you can call it that.

It is a vacuous market and in an election year especially, with the prospect of having “End the Fed” candidates running the country in 2013 like Gingrich or Paul, the likelihood that more overt QE will not be catalyzed by the clear and present danger of a downgrade driven, bank failure catalyst, resulting in lower over all equities (and resulting lower quality rehypothecation collateral) is next to zero in my opinion.

The fact that the BRICs are seeing substantial GDP growth contraction, that austerity and completely un-repayable toxic debt backed currencies are under pressure and that the so called “super summit” in the EU basically resulted in a blank piece of paper that has changed Nothing, resulting in a contraction in EU growth and with negative real interest rates in the UK and US and likely elsewhere, gold remains the only money (not a fiat
Currency) and is not encumbered and backed only by toxic debt. As such, the Fed and ECB will have to apply shock and awe levels of QE just to keep the S&P from falling to 800 and putting Gingrich in office, which results in a deeply weakened Fed and likely a long range hyper deflationary depression and global social revolution and the end of Central and TBTF controlled governments.

In my opinion the downgrades by Fitch on eight global trading universal banks this evening is indicative of why jaw boning needs to be pro-QE and not
Anti-QE as a strong position on QE will keep the required collateral up in dollar valued terms where as the Merkel approach will only trigger a lowering of collateral quality in the global rehypothecation derivatives chain where counterparty solvency is questionable.

Anyway, just what I think.

Duffminster

 

Sun, 12/18/2011 - 16:56 | 1992108 Dr Paul Krugman
Dr Paul Krugman's picture

Traders who got their funds frozen in the MF Global debacle aren't going to turn into gold bugs just because of the bankrupcy.  They most likely will realize gold does not produce anything and is merely speculative, which you were correct about for Paulson etc.  This should be bearish for the price of gold.

Sun, 12/18/2011 - 17:23 | 1992141 disabledvet
disabledvet's picture

if gold can be stolen legally then whether it's worth billions is irrelevant. "it's no longer yours." needless to say the government does not care and as such "i'd be bailing on GLD" like it's the most worthless asset on the planet. the shocker has been the collapse in yields in the Treasury complex. this has nothing to do with the Fed's "twist" and may indeed show...yet again that "Ben Beranke has been a consistent optimist as it relates to recovery throughout the ordeal." A minor flaw of course in an otherwise perfect diamond.

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